Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Feb. 13, 2015 | Jun. 28, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 27-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GRMN | ||
Entity Registrant Name | GARMIN LTD | ||
Entity Central Index Key | 1121788 | ||
Current Fiscal Year End Date | -15 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 208,077,418 | ||
Entity Public Float | $7,551,199,189 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,196,268 | $1,179,149 |
Marketable securities (Note 3) | 167,989 | 149,862 |
Accounts receivable, less allowance for doubtful accounts of $18,330 in 2014 and $20,367 in 2013 | 570,191 | 564,586 |
Inventories, net | 420,475 | 382,226 |
Deferred income taxes (Note 6) | 56,102 | 69,823 |
Deferred costs | 51,336 | 57,368 |
Loan receivable | 0 | 137,379 |
Prepaid expenses and other current assets | 48,615 | 55,243 |
Total current assets | 2,510,976 | 2,595,636 |
Property and equipment, net | ||
Land and improvements | 94,245 | 98,324 |
Building and improvements | 324,710 | 300,820 |
Office furniture and equipment | 188,847 | 156,731 |
Manufacturing equipment | 128,441 | 123,346 |
Engineering equipment | 102,692 | 96,180 |
Vehicles | 20,661 | 20,879 |
Property and equipment, Gross | 859,596 | 796,280 |
Accumulated depreciation | -428,709 | -381,432 |
Property and equipment, Net | 430,887 | 414,848 |
Restricted cash (Note 4) | 308 | 249 |
Marketable securities (Note 3) | 1,407,344 | 1,502,106 |
Noncurrent deferred income tax (Note 6) | 67,712 | 88,324 |
Noncurrent deferred costs | 36,140 | 41,157 |
Intangible assets, net | 218,083 | 219,494 |
Other assets | 21,853 | 17,789 |
Total assets | 4,693,303 | 4,879,603 |
Current liabilities: | ||
Accounts payable | 149,094 | 146,582 |
Salaries and benefits payable | 62,764 | 59,794 |
Accrued warranty costs | 27,609 | 26,767 |
Accrued sales program costs | 58,934 | 50,903 |
Deferred revenue | 203,598 | 256,908 |
Accrued royalty costs | 51,889 | 64,538 |
Accrued advertising expense | 26,334 | 19,448 |
Other accrued expenses | 67,780 | 65,657 |
Deferred income taxes (Note 6) | 17,673 | 989 |
Income taxes payable | 182,260 | 38,043 |
Dividend payable | 185,326 | 175,675 |
Total current liabilities | 1,033,261 | 905,304 |
Deferred income taxes (Note 6) | 39,497 | 1,758 |
Non-current income taxes | 80,611 | 140,933 |
Non-current deferred revenue | 135,130 | 171,012 |
Other liabilities | 1,437 | 890 |
Stockholders' equity: | ||
Shares, CHF 10 par value, 208,077 shares authorized and issued; 191,815 shares outstanding at December 27, 2014; and 195,150 shares outstanding at December 28, 2013; (Notes 9, 10, and 11): | 1,797,435 | 1,797,435 |
Additional paid-in capital | 73,521 | 79,263 |
Treasury stock | -330,132 | -120,620 |
Retained earnings | 1,859,972 | 1,865,587 |
Accumulated other comprehensive income | 2,571 | 38,041 |
Total stockholders' equity | 3,403,367 | 3,659,706 |
Total liabilities and stockholders' equity | $4,693,303 | $4,879,603 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 27, 2014 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF |
Accounts receivable, allowance for doubtful accounts | $18,330 | $20,367 | ||
Shares, par value | 10 | 10 | ||
Shares, shares authorized | 208,077 | 208,077 | 208,077 | 208,077 |
Shares, shares issued | 208,077 | 208,077 | 208,077 | 208,077 |
Shares, shares outstanding | 191,815 | 191,815 | 195,150 | 195,150 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |||
Net sales | $2,870,658 | [1] | $2,631,851 | [1] | $2,715,675 | [1] |
Cost of goods sold | 1,266,246 | 1,224,551 | 1,277,195 | |||
Gross profit | 1,604,412 | 1,407,300 | 1,438,480 | |||
Advertising expense | 146,633 | 112,905 | 138,757 | |||
Selling, general and administrative expenses | 372,032 | 355,440 | 369,790 | |||
Research and development expense | 395,121 | 364,923 | 325,773 | |||
Total operating expense | 913,786 | 833,268 | 834,320 | |||
Operating income | 690,626 | 574,032 | 604,160 | |||
Other income (expense): | ||||||
Interest income | 35,584 | 35,271 | 35,108 | |||
Foreign currency gains (losses) | -4,299 | 35,538 | -20,022 | |||
Other | 1,834 | 8,717 | 5,282 | |||
Total other income (expense) | 33,119 | 79,526 | 20,368 | |||
Income before income taxes | 723,745 | 653,558 | 624,528 | |||
Income tax provision (benefit): (Note 6) | ||||||
Current | 274,107 | 27,771 | 114,013 | |||
Deferred | 85,427 | 13,375 | -31,888 | |||
Total | 359,534 | 41,146 | 82,125 | |||
Net income | $364,211 | $612,412 | $542,403 | |||
Basic net income per share (Note 10) | $1.89 | $3.13 | $2.78 | |||
Diluted net income per share (Note 10) | $1.88 | $3.12 | $2.76 | |||
[1] | The U.S. is the only country which constitutes greater than 10% of net sales to external customers. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Net income | $210,245 | ($146,834) | $181,983 | $118,818 | $163,586 | $187,669 | $172,491 | $88,666 | $364,211 | $612,412 | $542,403 |
Foreign currency translation adjustment | -64,489 | -43,609 | 52,516 | ||||||||
Change in fair value of available-for-sale marketable securities, net of deferred taxes | 29,019 | -56,904 | -1,155 | ||||||||
Comprehensive income | $328,741 | $511,899 | $593,764 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Gain/(Loss) |
In Thousands | ||||||
Beginning Balance at Dec. 31, 2011 | $3,256,581 | $1,797,435 | $61,869 | ($103,498) | $1,413,582 | $87,193 |
Net income | 542,403 | 0 | 0 | 0 | 542,403 | 0 |
Translation adjustment | 52,516 | 0 | 0 | 0 | 0 | 52,516 |
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $201 in 2014, ($2,183) in 2013, and $46 in 2012 | -1,155 | 0 | 0 | 0 | 0 | -1,155 |
Comprehensive income | 593,764 | |||||
Dividends declared | -351,360 | 0 | 0 | 0 | -351,360 | 0 |
Tax benefit from issuance of equity awards | -516 | 0 | -516 | 0 | 0 | 0 |
Issuance of treasury stock related to equity awards | 22,798 | 0 | -18,165 | 40,963 | 0 | 0 |
Stock compensation | 29,274 | 0 | 29,274 | 0 | 0 | 0 |
Purchase of treasury stock related to equity awards | -18,745 | 0 | 0 | -18,745 | 0 | 0 |
Ending Balance at Dec. 29, 2012 | 3,531,796 | 1,797,435 | 72,462 | -81,280 | 1,604,625 | 138,554 |
Net income | 612,412 | 0 | 0 | 0 | 612,412 | 0 |
Translation adjustment | -43,609 | 0 | 0 | 0 | 0 | -43,609 |
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $201 in 2014, ($2,183) in 2013, and $46 in 2012 | -56,904 | 0 | 0 | 0 | 0 | -56,904 |
Comprehensive income | 511,899 | |||||
Dividends declared | -351,450 | 0 | 0 | 0 | -351,450 | 0 |
Tax benefit from issuance of equity awards | 4,584 | 0 | 4,584 | 0 | 0 | 0 |
Issuance of treasury stock related to equity awards | 22,770 | 0 | -20,375 | 43,145 | 0 | 0 |
Stock compensation | 22,592 | 0 | 22,592 | 0 | 0 | 0 |
Purchase of treasury stock related to equity awards | -24,063 | 0 | 0 | -24,063 | 0 | 0 |
Purchase of treasury stock under share repurchase plan | -58,422 | 0 | 0 | -58,422 | 0 | 0 |
Ending Balance at Dec. 28, 2013 | 3,659,706 | 1,797,435 | 79,263 | -120,620 | 1,865,587 | 38,041 |
Net income | 364,211 | 0 | 0 | 0 | 364,211 | 0 |
Translation adjustment | -64,489 | 0 | 0 | 0 | 0 | -64,489 |
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $201 in 2014, ($2,183) in 2013, and $46 in 2012 | 29,019 | 0 | 0 | 0 | 0 | 29,019 |
Comprehensive income | 328,741 | |||||
Dividends declared | -369,826 | 0 | 0 | 0 | -369,826 | 0 |
Tax benefit from issuance of equity awards | -84 | 0 | -84 | 0 | 0 | 0 |
Issuance of treasury stock related to equity awards | 20,753 | 0 | -29,951 | 50,704 | 0 | 0 |
Stock compensation | 0 | 0 | 24,293 | 0 | 0 | 24,293 |
Purchase of treasury stock related to equity awards | -18,638 | 0 | 0 | -18,638 | 0 | 0 |
Purchase of treasury stock under share repurchase plan | -241,578 | 0 | 0 | -241,578 | 0 | 0 |
Ending Balance at Dec. 27, 2014 | $3,403,367 | $1,797,435 | $73,521 | ($330,132) | $1,859,972 | $2,571 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Adjustment related to unrealized gains (losses) on available-for-sale securities, income tax | $201 | ($2,183) | $46 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Operating Activities: | |||
Net income | $364,211 | $612,412 | $542,403 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 48,433 | 48,476 | 52,632 |
Amortization | 28,582 | 30,328 | 37,835 |
Gain on sale of property and equipment | -306 | -724 | -367 |
Provision for doubtful accounts | 66 | 1,553 | 2,947 |
Provision for obsolete and slow-moving inventories | 25,903 | 20,891 | 11,003 |
Unrealized foreign currency (gains)/losses | 573 | -40,120 | 40,042 |
Deferred income taxes | 89,828 | 7,931 | -32,080 |
Stock compensation | 24,293 | 22,592 | 29,274 |
Realized gains on marketable securities | -505 | -5,877 | -2,980 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | -27,398 | 38,589 | 10,808 |
Inventories | -76,491 | -17,593 | 3,997 |
Other current and non-current assets | 627 | -22,013 | 39,717 |
Accounts payable | 8,981 | 18,043 | -38,929 |
Other current and non-current liabilities | 16,467 | -31,775 | -33,235 |
Deferred revenue | -87,543 | -16,150 | 67,931 |
Deferred costs | 11,029 | -2,204 | -15,441 |
Income taxes payable | 95,961 | -34,275 | -30,812 |
Net cash provided by operating activities | 522,711 | 630,084 | 684,745 |
Investing activities: | |||
Purchases of property and equipment | -73,339 | -56,083 | -38,445 |
Proceeds from sale of property and equipment | 748 | 885 | 757 |
Purchase of intangible assets | -4,720 | -1,122 | -6,783 |
Purchase of marketable securities | -1,006,482 | -909,151 | -1,429,593 |
Redemption of marketable securities | 1,096,676 | 833,491 | 985,598 |
Proceeds from repayment (advances) on loan receivable | 137,379 | -137,369 | 0 |
Acquisitions, net of cash acquired | -18,871 | -5,680 | -7,697 |
Change in restricted cash | -59 | 587 | -65 |
Net cash provided by (used in) investing activities | 131,332 | -274,442 | -496,228 |
Financing activities: | |||
Dividends | -360,075 | -351,707 | -253,386 |
Tax benefit from issuance of equity awards | -84 | 4,584 | -516 |
Proceeds from issuance of treasury stock related to equity awards | 20,753 | 22,770 | 22,798 |
Purchase of treasury stock related to equity awards | -18,638 | -24,063 | -18,745 |
Purchase of treasury stock under share repurchase plan | -241,578 | -58,422 | 0 |
Net cash used in financing activities | -599,622 | -406,838 | -249,849 |
Effect of exchange rate changes on cash and cash equivalents | -37,302 | -835 | 5,352 |
Net increase(decrease) in cash and cash equivalents | 17,119 | -52,031 | -55,980 |
Cash and cash equivalents at beginning of year | 1,179,149 | 1,231,180 | 1,287,160 |
Cash and cash equivalents at end of year | 1,196,268 | 1,179,149 | 1,231,180 |
Supplemental disclosures of cash flow information | |||
Cash paid during the year for income taxes | 175,465 | 73,372 | 127,509 |
Cash received during the year from income tax refunds | 5,260 | 3,584 | 5,237 |
Cash paid during the year for interest | 0 | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities | |||
Change in marketable securities related to unrealized appreciation (depreciation) | 29,220 | -59,087 | -1,109 |
Fair value of assets acquired | 22,735 | 11,486 | 11,156 |
Liabilities assumed | -3,718 | -4,955 | -2,740 |
Less: cash acquired | -146 | -851 | -719 |
Cash paid for acquisitions, net of cash acquired | $18,871 | $5,680 | $7,697 |
Description_of_the_Business
Description of the Business | 12 Months Ended |
Dec. 27, 2014 | |
Description of the Business | 1. Description of the Business |
Garmin Ltd. and subsidiaries (together, the “Company”) design, develop, manufacture, market, and distribute a diverse family of hand-held, wrist-based, portable and fixed-mount Global Positioning System (GPS)-enabled products and other navigation, communications, information and sensor-based products. Garmin Corporation (GC) is primarily responsible for the manufacturing and distribution of the Company’s products to the Company’s subsidiaries and, to a lesser extent, new product development and sales and marketing of the Company’s products in Asia and the Far East. Garmin International, Inc. (GII) is primarily responsible for sales and marketing of the Company’s products in the Americas region and for most of the Company’s research and new product development. GII also manufactures most of the Company’s products in the aviation segment. Garmin (Europe) Ltd. (GEL) is responsible for sales and marketing of the Company’s products in Europe, the Middle East and Africa (EMEA). Many of GEL’s sales are to other Company-owned distributors in the EMEA region. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||||
Basis of Presentation and Principles of Consolidation | |||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The accompanying consolidated financial statements reflect the accounts of Garmin Ltd. and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated. | |||||||||||
Fiscal Year | |||||||||||
The Company has adopted a 52–53-week period ending on the last Saturday of the calendar year. Due to the fact that there are not exactly 52 weeks in a calendar year and there is slightly more than one additional day per year (not including the effects of leap year) in each calendar year as compared to a 52-week fiscal year, the Company will have a fiscal year comprising 53 weeks in certain fiscal years, as determined by when the last Saturday of the calendar year occurs. | |||||||||||
In those resulting fiscal years that have 53 weeks, the Company will record an extra week of sales, costs, and related financial activity. Therefore, the financial results of those fiscal years, and the associated 14-week fourth quarter, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the associated quarters having only 13 weeks. Fiscal years 2014, 2013 and 2012 included 52 weeks. | |||||||||||
Use of Estimates | |||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||
Foreign Currency | |||||||||||
Many Garmin Ltd. subsidiaries utilize currencies other than the United States Dollar (USD) as their functional currency. As required by the Foreign Currency Matters topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the financial statements of these subsidiaries for all periods presented have been translated into USD, the functional currency of Garmin Ltd., and the reporting currency herein, for purposes of consolidation at rates prevailing during the year for sales, costs, and expenses and at end-of-year rates for all assets and liabilities. The effect of this translation is recorded in a separate component of stockholders’ equity. Cumulative translation adjustments of $20,874 and $85,363 as of December 27, 2014 and December 28, 2013, respectively, have been included in accumulated other comprehensive income in the accompanying consolidated balance sheets. | |||||||||||
Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. All differences are recorded in results of operations and amounted to exchange gains (losses) of ($4,299), $35,538, and ($20,022) for the years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. The loss in fiscal 2014 was due primarily to the USD strengthening against the Euro and the British Pound Sterling which was largely offset by the USD strengthening against the Taiwan Dollar. The gain in fiscal 2013 was due primarily to the strengthening of the USD against the Taiwan Dollar and the USD weakening against the Euro and the British Pound Sterling. The loss in fiscal 2012 was due primarily to the weakening of the USD against the Taiwan Dollar and was partially offset by the USD weakening against the Euro and the British Pound Sterling. | |||||||||||
Earnings Per Share | |||||||||||
Basic earnings per share amounts are computed based on the weighted-average number of common shares outstanding. For purposes of diluted earnings per share, the number of shares that would be issued from the exercise of dilutive stock options has been reduced by the number of shares which could have been purchased from the proceeds of the exercise at the average market price of the Company’s stock during the period the options were outstanding. See Note 10. | |||||||||||
Cash and Cash Equivalents | |||||||||||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, operating accounts, money market funds, and securities with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents approximates fair value, given the short maturity of those instruments. | |||||||||||
Trade Accounts Receivable | |||||||||||
The Company sells its products to retailers, wholesalers, and other customers and extends credit based on its evaluation of the customer’s financial condition. Potential losses on receivables are dependent on each individual customer’s financial condition. The Company carries its trade accounts receivable at net realizable value. Typically, its accounts receivable are collected within 80 days and do not bear interest. The Company monitors its exposure to losses on receivables and maintains allowances for potential losses or adjustments. The Company determines these allowances by (1) evaluating the aging of its receivables and (2) reviewing its high-risk customers. Past due receivable balances are written off when its internal collection efforts have been unsuccessful in collecting the amount due. The Company maintains trade credit insurance to provide security against large losses. | |||||||||||
Concentration of Credit Risk | |||||||||||
The Company grants credit to certain customers who meet the Company’s pre-established credit requirements. Generally, the Company does not require security when trade credit is granted to customers. Credit losses are provided for in the Company’s consolidated financial statements and typically have been within management’s expectations. Certain customers are allowed extended terms consistent with normal industry practice. Most of these extended terms can be classified as either relating to seasonal sales variations or to the timing of new product releases by the Company. | |||||||||||
The Company’s top ten customers have contributed between 22% and 26% of net sales since 2012. None of the Company’s customers accounted for more than 10% of consolidated net sales in the years ended December 27, 2014, December 28, 2013, and December 29, 2012. | |||||||||||
Loan Receivable | |||||||||||
On March 14, 2013, the Company entered into a Memorandum of Agreement (the “Agreement”) with Bombardier, Inc. (“Bombardier”). The Company is the supplier of the avionics system for the Lear 70 and Lear 75 aircraft for Learjet, Inc., which is a subsidiary of Bombardier (the “Program”). In order to assist Bombardier in connection with delayed cash flows from the Program partially related to the certification of avionics for the Program exceeding the planned delivery date, the Company agreed to provide Bombardier a short term, interest free, loan of $173,708 in cash in seven installments beginning on March 22, 2013 and ending on September 20, 2013 pursuant to the terms and conditions of the Agreement. Bombardier repaid the loan in five installments beginning in November 2013 and ending in April 2014 pursuant to the terms and conditions of the Agreement and subsequent amendment signed December 6, 2013. As of December 27, 2014, the Company had a loan receivable balance of $0 from Bombardier in the accompanying consolidated balance sheet. | |||||||||||
Inventories | |||||||||||
Inventories are stated at the lower of cost or market with cost being determined on a first-in, first-out (FIFO) basis. Garmin writes down its inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventories consisted of the following: | |||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||
Raw Materials | $ | 161,444 | $ | 131,408 | |||||||
Work-in-process | $ | 53,824 | $ | 50,110 | |||||||
Finished goods | $ | 244,282 | $ | 229,089 | |||||||
Inventory Reserves | $ | -39,075 | $ | -28,381 | |||||||
Inventory, net of reserves | $ | 420,475 | $ | 382,226 | |||||||
Property and Equipment | |||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives: | |||||||||||
Buildings and improvements | 39 | ||||||||||
Office furniture and equipment | 5-Mar | ||||||||||
Manufacturing and engineering equipment | 5 | ||||||||||
Vehicles | 5 | ||||||||||
Long-Lived Assets | |||||||||||
As required by the Property, Plant and Equipment topic of the FASB ASC, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | |||||||||||
The Intangibles – Goodwill and Other topic of the FASB ASC requires that goodwill and intangible assets with indefinite useful lives should not be amortized but rather be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that they may be impaired. The Company did not recognize any goodwill or intangible asset impairment charges in 2014, 2013, or 2012. The accounting guidance also requires that intangible assets with finite lives be amortized over their estimated useful lives and reviewed for impairment. The Company is currently amortizing its acquired intangible assets with finite lives over periods ranging from 3 to 10 years. | |||||||||||
Dividends | |||||||||||
Under Swiss corporate law, dividends must be approved by shareholders at the general meeting of our shareholders. | |||||||||||
On June 6, 2014, the shareholders approved a dividend of $1.92 per share (of which, $0.96 was paid in the Company's 2014 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows: | |||||||||||
Dividend Date | Record Date | $s per share | |||||||||
30-Jun-14 | 17-Jun-14 | $ | 0.48 | ||||||||
30-Sep-14 | 15-Sep-14 | $ | 0.48 | ||||||||
31-Dec-14 | 15-Dec-14 | $ | 0.48 | ||||||||
31-Mar-15 | 16-Mar-15 | $ | 0.48 | ||||||||
The Company paid dividends in 2014 in the amount of $360,075. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings. | |||||||||||
On June 7, 2013, the shareholders approved a dividend of $1.80 per share (of which, $0.90 was paid in the Company's 2013 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows: | |||||||||||
Dividend Date | Record Date | $s per share | |||||||||
28-Jun-13 | 18-Jun-13 | $ | 0.45 | ||||||||
30-Sep-13 | 16-Sep-13 | $ | 0.45 | ||||||||
31-Dec-13 | 16-Dec-13 | $ | 0.45 | ||||||||
31-Mar-14 | 17-Mar-14 | $ | 0.45 | ||||||||
The Company paid dividends in 2013 in the amount of $351,707. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings. | |||||||||||
On June 1, 2012, the shareholders approved a dividend of $1.80 per share (of which, $0.90 was paid in the Company's 2012 fiscal year) payable in four installments as follows: | |||||||||||
Dividend Date | Record Date | $s per share | |||||||||
29-Jun-12 | 15-Jun-12 | $ | 0.45 | ||||||||
28-Sep-12 | 14-Sep-12 | $ | 0.45 | ||||||||
31-Dec-12 | 14-Dec-12 | $ | 0.45 | ||||||||
29-Mar-13 | 15-Mar-13 | $ | 0.45 | ||||||||
The Company paid dividends in 2012 in the amount of $253,386. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings. | |||||||||||
Approximately $290,955 and $265,880 of retained earnings are indefinitely restricted from distribution to stockholders pursuant to the laws of Taiwan at December 27, 2014 and December 28, 2013, respectively. | |||||||||||
Intangible Assets | |||||||||||
At December 27, 2014 and December 28, 2013, the Company had patents, customer related intangibles and other identifiable finite-lived intangible assets recorded at a cost of $191,034 and $183,431, respectively. Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis over three to ten years. Accumulated amortization was $151,589 and $143,227 at December 27, 2014 and December 28, respectively. Amortization expense on these intangible assets was $8,362, $17,847,and $21,437 for the years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. In the next five years, the amortization expense is estimated to be $20,038, $7,481, $4,799, $4,122, and $2,811, respectively. | |||||||||||
The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $178,638 at December 27, 2014 and $179,290 at December 28, 2013. | |||||||||||
December 27, | December 28, | ||||||||||
2014 | 2013 | ||||||||||
Goodwill balance at beginning of year | $ | 179,290 | $ | 176,059 | |||||||
Acquisitions | 2,517 | 2,726 | |||||||||
Finalization of purchase price allocations and effect of foreign currency translation | -3,169 | 505 | |||||||||
Goodwill balance at end of year | $ | 178,638 | $ | 179,290 | |||||||
Marketable Securities | |||||||||||
Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date. | |||||||||||
All of the Company’s marketable securities were considered available-for-sale at December 27, 2014. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of tax, reported in other comprehensive gain(loss). At December 27, 2014 and December 28, 2013, cumulative unrealized gains and losses, net of tax of ($18,303) and ($47,322), respectively, were reported in accumulated other comprehensive income, net of related taxes. | |||||||||||
Investments are reviewed periodically to determine if they have suffered an impairment of value that is considered other than temporary. If investments are determined to be impaired, a loss is recognized at the date of determination. | |||||||||||
Testing for impairment of investments requires significant management judgment. The identification of potentially impaired investments, the determination of their fair value and the assessment of whether any decline in value is other than temporary are the key judgment elements. The discovery of new information and the passage of time can significantly change these judgments. Revisions of impairment judgments are made when new information becomes known, and any resulting impairment adjustments are made at that time. The economic environment and volatility of securities markets increase the difficulty of determining fair value and assessing investment impairment. | |||||||||||
The amortized cost of debt securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization is included in interest income from investments. Realized gains and losses, and credit declines in value judged to be other-than-temporary are included in other income. The cost of securities sold is based on the specific identification method. | |||||||||||
Investments are discussed in detail in Note 3 of the Notes to Consolidated Financial Statements. | |||||||||||
Income Taxes | |||||||||||
The Company accounts for income taxes using the liability method in accordance with the FASB ASC 740 topic Income Taxes. The liability method provides that deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes as measured based on the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. | |||||||||||
The Company adopted the applicable guidance included in the FASB ASC 740 topic Income Taxes related to accounting for uncertainty in income taxes on December 31, 2006, the beginning of fiscal year 2007. We recognize liabilities for tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves not to be required, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. If our estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. | |||||||||||
Income taxes are discussed in detail in Note 6 of the Notes to Consolidated Financial Statements. | |||||||||||
Revenue Recognition | |||||||||||
Garmin recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. For the large majority of Garmin’s sales, these criteria are met once product has shipped and title and risk of loss have transferred to the customer. The Company recognizes revenue from the sale of hardware products and software bundled with hardware that is essential to the functionality of the hardware in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for standalone sales of software products and sales of software bundled with hardware not essential to the functionality of the hardware. The Company generally does not offer specified or unspecified upgrade rights to its customers in connection with software sales. | |||||||||||
Garmin introduced nüMaps Lifetime™ in 2009, which is a single fee program that, subject to the program’s terms and conditions, enables customers to download the latest map and point of interest information for the useful life of their PND. The revenue and associated cost of royalties for sales of nüMaps Lifetime™ products are deferred at the time of sale and recognized ratably on a straight-line basis over the estimated 36-month life of the products. With the acquisition of Navigon AG in 2011, products marketed under the Navigon brand have a FreshMaps program that enables customers to download the latest map and point of interest information for two years. The revenue and associated cost of royalties for sales of FreshMaps products are deferred at the time of sale and recognized ratably on a straight-line basis over the two year period. | |||||||||||
For multiple-element arrangements that include tangible products that contain software essential to the tangible product’s functionality and undelivered software elements that relate to the tangible product’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). VSOE generally exists only when the Company sells the deliverable separately, on more than a limited basis, at prices within a relatively narrow range. In addition to the products listed below, the Company has offered certain other products including mobile applications, aviation subscriptions and extended warranties that involve multiple-element arrangements that are immaterial. | |||||||||||
In 2010, Garmin began offering PNDs with lifetime map updates (LMUs) bundled in the original purchase price. Similar to nüMaps Lifetime™, LMUs enable customers to download the latest map and point of interest information for the useful life of their PND. In addition, Garmin offers PNDs with traffic service bundled in the original purchase price. The Company has identified multiple deliverables contained in arrangements involving the sale of PNDs which include the LMU and/or traffic service. The first deliverable is the hardware along with the software essential to the functionality of the hardware device delivered at the time of sale. The second deliverable and potentially third deliverables are the LMU and/or traffic service. The Company has allocated revenue between these deliverables using the relative selling price method. Amounts allocated to the delivered hardware and the related essential software are recognized at the time of sale provided the other conditions for revenue recognition have been met. The revenue and associated cost of royalties allocated to the LMU or the subscription for traffic service are deferred and recognized on a straight-line basis over the estimated 36-month life of the products. | |||||||||||
As the sales of nüMaps Lifetime and traffic subscriptions as a percentage of total unit sales or in the aggregate decreased significantly in mid-2011, the Company determined that the previous estimate of selling price based on more limited stand-alone sales of nüMaps Lifetime or traffic was no longer a sole determinant of its value as determined under VSOE, and that third party evidence of selling price was not available. The Company determined that the price differential between bundled and unbundled products and the royalty cost of the LMU or traffic subscription plus an approximate margin were both additional indicators of estimated selling price. These estimates were also reflective of how the Company established product pricing based in part on customer perception of value of the added LMU or traffic service capability. As such, during 2012 and 2013, the Company estimated selling price of the undelivered element based on the relative selling price method using a weighted average of the stand-alone sales price, the price differential between bundled and unbundled units, and the royalty or subscription cost plus a normal margin. In 2014, the Company determined that stand-alone and unbundled unit sales no longer occurred on more than a limited basis, and the royalty or subscription cost plus a normal margin is therefore now used as the primary indicator in calculating relative selling price of the undelivered element. | |||||||||||
Garmin records estimated reductions to revenue for customer sales programs, returns and incentive offerings including rebates, price protection (product discounts offered to retailers to assist in clearing older products from their inventories in advance of new product releases), promotions and other volume-based incentives. The reductions to revenue are based on estimates and judgments using historical experience and expectation of future conditions. Changes in these estimates could negatively affect Garmin’s operating results. These incentives are reviewed periodically and, with the exceptions of price protection and certain other promotions, accrued for on a percentage of sales basis. If market conditions were to decline, Garmin may take actions to increase customer incentive offerings, possibly resulting in an incremental reduction of revenue at the time the incentive is offered. | |||||||||||
The Company records revenue net of sales tax, trade discounts and customer returns. The reductions to revenue for expected future product returns are based on Garmin’s historical experience. | |||||||||||
Deferred Revenues and Costs | |||||||||||
At December 27, 2014 and December 28, 2013, the Company had deferred revenues totaling $338,728 and $427,920, respectively, and related deferred costs totaling $87,476 and $98,525, respectively. | |||||||||||
The deferred revenues and costs are recognized over their estimated economic lives of two to three years on a straight-line basis. In the next three years, the gross margin recognition of deferred revenue and cost for the currently deferred amounts is estimated to be $152,262, $71,801, and $27,189, respectively. | |||||||||||
Shipping and Handling Costs | |||||||||||
Shipping and handling costs are included in cost of goods sold in the accompanying consolidated financial statements. | |||||||||||
Product Warranty | |||||||||||
The Company provides for estimated warranty costs at the time of sale. The Company’s standard warranty obligation to retail partners generally provides for a right of return of any product for a full refund in the event that such product is not merchantable, is damaged or defective. The Company’s historical experience is that these types of warranty obligations are generally fulfilled within 5 months from time of sale. The Company’s standard warranty obligation to its end-users provides for a period of one to two years from date of shipment while certain aviation products have a warranty period of two years from the date of installation. The Company’s estimate of costs to service its warranty obligations are based on historical experience and expectations of future conditions and are recorded as a liability on the balance sheet. To the extent Garmin experiences increased warranty claim activity or increased costs associated with servicing those claims, its warranty accrual will increase, resulting in decreased gross profit. The following reconciliation provides an illustration of changes in the aggregate warranty reserve: | |||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance - beginning of period | $ | 26,767 | $ | 37,301 | $ | 46,773 | |||||
Change in accrual for products sold in prior periods (1) | - | -8,709 | - | ||||||||
Accrual for products sold(2) | 44,423 | 41,309 | 38,421 | ||||||||
Expenditures | -43,581 | -43,134 | -47,893 | ||||||||
Balance - end of period | $ | 27,609 | $ | 26,767 | $ | 37,301 | |||||
-1 | Our expected future cost is estimated based upon historical trends in the volume of product returns and the related warranty costs incurred. In 2013 we updated these assumptions and shortened the estimated time horizon in which we settle claims with our retail partners. | ||||||||||
-2 | Minor changes in cost estimates related to pre-existing warranties are aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line. | ||||||||||
Sales Programs | |||||||||||
The Company provides certain monthly and quarterly incentives for its dealers and distributors based on various factors including dealer purchasing volume and growth. Additionally, from time to time, the Company provides rebates to end users on certain products. Estimated rebates and incentives payable to dealers and distributors are regularly reviewed and recorded as accrued expenses on a monthly basis. In addition, the Company provides dealers and distributors with product discounts to assist these customers in clearing older products from their inventories in advance of new product releases. Each discount is tied to a specific product and can be applied to all customers who have purchased the product or a special discount may be agreed to on an individual customer basis. These rebates, incentives, and discounts are recorded as reductions to net sales in the accompanying consolidated statements of income in the period the Company has sold the product. | |||||||||||
Advertising Costs | |||||||||||
The Company expenses advertising costs as incurred. Advertising expense amounted to approximately $146,633, $112,905 and $138,757, for the years ended December 27, 2014, December 28, 2013 and December 29, 2012, respectively. | |||||||||||
Research and Development | |||||||||||
A majority of the Company’s research and development is performed in the United States. Research and development costs, which are expensed as incurred, amounted to approximately $395,121, $364,923 and $325,773, for the years ended December 27, 2014, December 28, 2013 and December 29, 2012, respectively. | |||||||||||
Customer Service and Technical Support | |||||||||||
Customer service and technical support costs are included as selling, general and administrative expenses in the accompanying consolidated statements of income. Customer service and technical support costs include costs associated with performing order processing, answering customer inquiries by telephone and through Web sites, e-mail and other electronic means, and providing free technical support assistance to customers. The technical support is provided within one year after the associated revenue is recognized. The related cost of providing this free support is not material. | |||||||||||
Software Development Costs | |||||||||||
The FASB ASC topic entitled Software requires companies to expense software development costs as they incur them until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. Capitalized software development costs are not significant as the time elapsed from working model to release is typically short. As required by the Research and Development topic of the FASB ASC, costs incurred to enhance our existing products or after the general release of the service using the product are expensed in the period they are incurred and included in research and development costs in the accompanying consolidated statements of income. | |||||||||||
Accounting for Stock-Based Compensation | |||||||||||
The Company currently sponsors four stock based employee compensation plans. Garmin awards stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and/or performance shares each year as part of Garmin’s compensation package for employees. Certain employees within Garmin are eligible for stock options, SAR grants, RSU grants and/or performance shares but the granting of options, SARs, RSUs and/or performance shares is at the discretion of the Compensation Committee of the Board of Directors and is not a contractual obligation. The FASB ASC topic entitled Compensation – Stock Compensation requires the measurement and recognition of compensation expenses for all share-based payment awards made to employees and directors including employee stock options and restricted stock based on estimated fair values. | |||||||||||
Accounting guidance requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as stock-based compensation expense on a straight-line basis over the requisite service period in the Company’s consolidated financial statements. | |||||||||||
Determining the fair value of stock-based awards at the grant date requires judgment, including estimating expected life, forfeitures and dividends. If forfeitures differ significantly from these estimates, stock-based compensation expense could be impacted. Forfeitures were estimated based on historical experience and management’s estimates. | |||||||||||
Stock compensation plans are discussed in detail in Note 9 of the Notes to Consolidated Financial Statements. | |||||||||||
Recently Issued Accounting Pronouncements | |||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11), which is included in ASC Topic 740 (Income Taxes). ASU 2013-11 requires an entity to net its liability for unrecognized tax positions against a net operating loss carryforward, a similar tax loss or a tax credit carryforward when settlement in this manner is available under the tax law. The provisions of this new guidance are effective for reporting periods beginning after December 15, 2013. The implementation of the amended accounting guidance did not have a material impact on the Company’s financial statements. | |||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes previous revenue recognition guidance. ASU 2014-09 requires that a company will recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange or transferring goods or services to a customer. In applying the new guidance, a company will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The provisions of this new guidance are effective for reporting periods beginning after December 15, 2016 and can be adopted using either a full retrospective or modified approach. The Company is currently evaluating the impact of adopting this new guidance on the Company’s financial statements. | |||||||||||
Marketable_Securities
Marketable Securities | 12 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Marketable Securities | 3. Marketable Securities | ||||||||||||||||
The FASB ASC topic entitled Fair Value Measurements and Disclosures defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The accounting guidance classifies the inputs used to measure fair value into the following hierarchy: | |||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets for identical assets or liability | ||||||||||||||||
Level 2 | Observable inputs for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability | ||||||||||||||||
Level 3 | Unobservable inputs for the asset or liability | ||||||||||||||||
The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The valuation methods used by the Company for each significant class of investments are summarized below. | |||||||||||||||||
Mortgage-backed securities, corporate bonds and obligations of states and political subdivisions – Valued based on prices obtained from an independent pricing vendor using both market and income approaches. The primary inputs to the valuation include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, and credit spreads. | |||||||||||||||||
Common stocks – Valued at the closing price reported on the active market on which the individual securities are traded. | |||||||||||||||||
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | |||||||||||||||||
Available for sale securities measured at estimated fair value on a recurring basis are summarized below: | |||||||||||||||||
Fair Value Measurements as | |||||||||||||||||
of December 27, 2014 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mortgage-backed securities | $ | 452,686 | $ | - | $ | 452,686 | $ | - | |||||||||
Obligations of states and political subdivisions | 470,397 | - | 470,397 | - | |||||||||||||
Corporate bonds | 602,040 | - | 602,040 | - | |||||||||||||
Common stocks | - | - | - | - | |||||||||||||
Other | 50,210 | - | 50,210 | - | |||||||||||||
Total | $ | 1,575,333 | $ | - | $ | 1,575,333 | $ | - | |||||||||
Fair Value Measurements as | |||||||||||||||||
of December 28, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mortgage-backed securities | $ | 437,330 | $ | - | $ | 437,330 | $ | - | |||||||||
Obligations of states and political subdivisions | 647,354 | - | 647,354 | - | |||||||||||||
Corporate bonds | 457,148 | - | 457,148 | - | |||||||||||||
Common stocks | 29,854 | 29,854 | - | - | |||||||||||||
Other | 80,282 | - | 80,282 | - | |||||||||||||
Total | $ | 1,651,968 | $ | 29,854 | $ | 1,622,114 | $ | - | |||||||||
Marketable securities classified as available-for-sale securities are summarized below: | |||||||||||||||||
Available-For-Sale Securities as | |||||||||||||||||
of December 27, 2014 | |||||||||||||||||
Gross | Estimated Fair | ||||||||||||||||
Gross | Unrealized | Gross Unrealized | Value (Net Carrying | ||||||||||||||
Amortized Cost | Unrealized Gains | Losses-OTTI (1) | Losses- Other (2) | Amount) | |||||||||||||
Mortgage-backed securities | $ | 460,185 | $ | 599 | $ | -4,585 | $ | -3,513 | $ | 452,686 | |||||||
Obligations of states and political subdivisions | 476,036 | 682 | -5,521 | -800 | 470,397 | ||||||||||||
U.S. corporate bonds | 608,320 | 690 | -2,914 | -4,056 | 602,040 | ||||||||||||
Common stocks | - | - | - | - | - | ||||||||||||
Other | 50,223 | 49 | -11 | -51 | 50,210 | ||||||||||||
Total | $ | 1,594,764 | $ | 2,020 | $ | -13,031 | $ | -8,420 | $ | 1,575,333 | |||||||
Available-For-Sale Securities as | |||||||||||||||||
of December 28, 2013 | |||||||||||||||||
Estimated Fair | |||||||||||||||||
Gross | Gross Unrealized | Gross Unrealized | Value (Net Carrying | ||||||||||||||
Amortized Cost | Unrealized Gains | Losses-OTTI (1) | Losses- Other (2) | Amount) | |||||||||||||
Mortgage-backed securities | $ | 461,054 | $ | 2,692 | $ | -22,614 | $ | -3,802 | $ | 437,330 | |||||||
Obligations of states and political subdivisions | 673,529 | 1,601 | -27,509 | -267 | 647,354 | ||||||||||||
U.S. corporate bonds | 463,437 | 1,050 | -7,031 | -308 | 457,148 | ||||||||||||
Common stocks | 24,540 | 5,413 | -99 | - | 29,854 | ||||||||||||
Other | 78,059 | 2,326 | -103 | - | 80,282 | ||||||||||||
Total | $ | 1,700,619 | $ | 13,082 | $ | -57,356 | $ | -4,377 | $ | 1,651,968 | |||||||
(1) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. | |||||||||||||||||
(2) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired. | |||||||||||||||||
The Company’s investment policy requires investments to be rated A or better with the objective of minimizing the potential risk of principal loss. The Company does not intend to sell the securities that have an unrealized loss shown in the table above and it is not more likely than not that the Company will be required to sell the investment before recovery of their amortized costs bases, which may be maturity. The Company recognizes the credit component of other-than-temporary impairments of debt securities in "Other Income" and the noncredit component in "Other comprehensive income (loss)" for those securities that we do not intend to sell and for which it is not more likely than not that we will be required to sell before recovery. During 2014 and 2013, the Company did not record any material impairment charges on its outstanding securities. | |||||||||||||||||
The fair value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral and in the credit performance of the underlying issuer, among other factors. In 2013, Garmin experienced unrealized, non-cash losses on its investment portfolio resulting in a balance of $57,356 and $4,377 of gross other-than-temporary impairment and other unrealized losses on marketable securities at December 28, 2013. The amortized cost and estimated fair value of the securities at an unrealized loss position at December 28, 2013 were $1,215,498 and $1,153,765, respectively. This decrease in estimated fair value was primarily due to market valuations on mortgage-backed securities and obligations of states and political subdivisions declining. The decline was due to increases in the 10 Year Treasury Bond Yield during 2013, which caused market valuations of securities in our investment portfolios to decline. | |||||||||||||||||
The 10 Year Treasury Bond Yield decreased in 2014, resulting in a balance of $13,031 and $8,420 of gross other-than-temporary impairment and other unrealized losses on marketable securities at December 27, 2014. The amortized cost and estimated fair value of the securities at an unrealized loss position at December 27, 2014 were $1,276,404 and $1,254,953, respectively. Approximately 59% of securities in our portfolio were at an unrealized loss position at December 27, 2014. We have the ability to hold these securities until maturity or their value is recovered. We do not consider these unrealized losses to be other than temporary credit losses because there has been no deterioration in credit quality and no change in the cash flows of the underlying securities. We do not intend to sell the securities and it is not more likely than not that we will be required to sell the securities; therefore, no impairment has been recorded in the accompanying condensed consolidated statement of income. | |||||||||||||||||
The cost of securities sold is based on the specific identification method. | |||||||||||||||||
The following table displays additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position as of December 27, 2014. There was an immaterial amount of unrealized losses related to securities that had been in a continuous unrealized loss position for 12 months or longer as of December 28, 2013. | |||||||||||||||||
As of December 27, 2014 | |||||||||||||||||
Less than 12 Consecutive Months | 12 Consecutive Months or Longer | ||||||||||||||||
Gross Unrealized | Gross Unrealized | ||||||||||||||||
Losses | Fair Value | Losses | Fair Value | ||||||||||||||
Mortgage-backed securities | $ | -2,164 | $ | 210,413 | $ | -5,934 | $ | 184,955 | |||||||||
Obligations of states and political subdivisions | -800 | 92,306 | -5,521 | 249,676 | |||||||||||||
Corporate bonds | -4,026 | 383,631 | -2,944 | 113,700 | |||||||||||||
Common Stocks | - | - | - | - | |||||||||||||
Other | -52 | 18,078 | -10 | 2,194 | |||||||||||||
Total | $ | -7,042 | $ | 704,428 | $ | -14,409 | $ | 550,525 | |||||||||
The amortized cost and estimated fair value of marketable securities at December 27, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. | |||||||||||||||||
Estimated | |||||||||||||||||
Cost | Fair Value | ||||||||||||||||
Due in one year or less (2015) | $ | 167,737 | $ | 167,994 | |||||||||||||
Due after one year through five years (2016-2020) | 719,435 | 715,031 | |||||||||||||||
Due after five years through ten years (2021-2025) | 271,201 | 266,004 | |||||||||||||||
Due after ten years (2026 and thereafter) | 436,391 | 426,304 | |||||||||||||||
$ | 1,594,764 | $ | 1,575,333 | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 27, 2014 | |||||
Commitments and Contingencies | 4. Commitments and Contingencies | ||||
Rental expense related to office, equipment, warehouse space and real estate amounted to $19,559, $18,721 and $17,470 for the years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. The Company recognizes rental expense on a straight-line basis over the lease term. | |||||
Future minimum lease payments are as follows: | |||||
Year | Amount | ||||
2015 | 16,422 | ||||
2016 | 13,781 | ||||
2017 | 10,469 | ||||
2018 | 8,693 | ||||
2019 | 7,098 | ||||
Thereafter | 14,840 | ||||
Total | 71,303 | ||||
Certain cash balances of GEL and GC are held as collateral by banks securing payment of local value-added tax requirements. The total amount of restricted cash balances were $308 and $249 at December 27, 2014 and December 28, 2013, respectively. | |||||
The Company is party to certain commitments, which includes raw materials, advertising and other indirect purchases in connection with conducting our business. Pursuant to these agreements, the Company is contractually committed to make purchases of approximately $268,075 over the next five years. | |||||
In the normal course of business, the Company and its subsidiaries are parties to various legal claims, actions, and complaints, including matters involving patent infringement and other intellectual property claims and various other risks. It is not possible to predict with certainty whether or not the Company and its subsidiaries will ultimately be successful in any of these legal matters, or if not, what the impact might be. However, the Company’s management does not expect that the results in any of these legal proceedings will have a material adverse effect on the Company’s results of operations, financial position or cash flows. | |||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 27, 2014 | |
Employee Benefit Plans | 5. Employee Benefit Plans |
GII and the Company’s other U.S.-based subsidiaries sponsor a defined contribution employee retirement plan under which their employees may contribute up to 50% of their annual compensation subject to Internal Revenue Code maximum limitations and to which the subsidiaries contribute a specified percentage of each participant’s annual compensation up to certain limits as defined in the retirement plan. Additionally, GEL has a defined contribution plan under which its employees may contribute up to 7.5% of their annual compensation. In both the plans described above, the subsidiaries contribute an amount determined annually at the discretion of the Board of Directors. During the years ended December 27, 2014, December 28, 2013 and December 29, 2012, expense related to these plans of $29,267, $26,839 and $22,159, respectively, was charged to operations. | |
Certain of the Company’s foreign subsidiaries participate in local defined benefit pension plans. Contributions are calculated by formulas that consider final pensionable salaries. Neither obligations nor contributions for the years ended December 27, 2014, December 28, 2013 and December 29, 2012, were significant. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
Income Taxes | 6. Income Taxes | ||||||||||
The Company’s income tax provision (benefit) consists of the following: | |||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Federal: | |||||||||||
Current | $ | -18,665 | $ | -11,907 | $ | 83,185 | |||||
Deferred | 58,164 | 1,913 | -22,988 | ||||||||
39,499 | -9,994 | 60,197 | |||||||||
State: | |||||||||||
Current | 5,575 | 2,584 | 8,532 | ||||||||
Deferred | 4,368 | -408 | -5,327 | ||||||||
9,943 | 2,176 | 3,205 | |||||||||
Foreign: | |||||||||||
Current | 287,197 | 37,094 | 22,296 | ||||||||
Deferred | 22,895 | 11,870 | -3,573 | ||||||||
310,092 | 48,964 | 18,723 | |||||||||
Total | $ | 359,534 | $ | 41,146 | $ | 82,125 | |||||
The income tax provision differs from the amount computed by applying the U.S. statutory federal income tax rate to income before taxes. The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows: | |||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Federal income tax expense at U.S. statutory rate | $ | 253,260 | $ | 229,420 | $ | 218,585 | |||||
State income tax expense, net of federal tax effect | 6,463 | 1,414 | 2,083 | ||||||||
Foreign tax rate differential | -154,338 | -121,279 | -141,456 | ||||||||
Taiwan tax holiday benefit | -3,147 | -4,944 | -6,418 | ||||||||
Other foreign taxes less incentives and credits | 5,947 | -2,032 | -6,214 | ||||||||
Withholding Tax | 21,039 | 7,073 | 3,927 | ||||||||
Intercompany Restructuring | 307,635 | - | - | ||||||||
Net change in uncertain tax positions | -67,231 | -50,700 | 19,850 | ||||||||
U.S. federal domestic production activities deduction | -3,606 | -3,550 | -6,276 | ||||||||
U.S. federal research and development credit | -8,373 | -14,876 | - | ||||||||
Other, net | 1,885 | 620 | -1,956 | ||||||||
Income tax expense | $ | 359,534 | $ | 41,146 | $ | 82,125 | |||||
In the third quarter of 2014, the Company initiated an inter-company restructuring that realigned our corporate entity structure. This change in corporate structure provides access to historical earnings that were previously permanently reinvested and allows us to efficiently repatriate future earnings. As a direct and indirect result of the change in corporate structure, Garmin recorded tax expense of $307,635. The first cash tax payment of $78,137 associated with the restructuring was made in the third quarter of 2014. We anticipate paying approximately $185,000 in the second quarter of 2015. The remainder of the accrued tax is expected to be paid incrementally as the cash is repatriated. | |||||||||||
The holding company statutory federal income tax rate in Switzerland, the Company's place of incorporation since its redomestication to Switzerland effective June 27, 2010, is 7.83%. If the Company reconciled taxes at the Swiss holding company federal statutory tax rate to the reported income tax for 2014 as presented above, the amounts related to tax at the statutory rate would be approximately $197,000 lower, or $57,000, and the foreign tax rate differential would be adjusted by a similar amount to $44,000. For 2013, the amounts related to tax at the statutory rate would be approximately $178,000 lower, or $51,000, and the foreign tax rate differential would be adjusted by a similar amount to approximately $64,000. For 2012, the amount related to tax at the statutory rate would be approximately $170,000 lower, or $49,000, and the foreign tax differential would be reduced by a similar amount to approximately $31,000. All other amounts would remain substantially unchanged. | |||||||||||
The Company’s income before income taxes attributable to non-U.S. operations was $546,790, $502,423, and $495,908, for the years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. The Taiwan tax holiday benefits included in the table above reflect $0.02, $0.03, and $0.03 per weighted-average common share outstanding for the years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. The Company currently expects to benefit from these Taiwan tax holidays through 2017, at which time these tax benefits will likely expire. | |||||||||||
Income taxes of $20,606, $307,990, and $252,452 at December 27, 2014, December 28, 2013, and December 29, 2012, respectively, have not been accrued by the Company for the unremitted earnings of several of its foreign subsidiaries. These balances decreased in 2014 as a result of the intercompany restructuring which reduced the amount of earnings reinvested in the subsidiaries indefinitely. | |||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: | |||||||||||
December 27, | December 28, | ||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Product warranty accruals | $ | 3,560 | $ | 3,000 | |||||||
Allowance for doubtful accounts | 9,111 | 11,394 | |||||||||
Inventory reserves | 8,161 | 5,491 | |||||||||
Sales program allowances | 1,081 | 525 | |||||||||
Other accruals | 11,058 | 8,927 | |||||||||
Stock option compensation | 38,265 | 47,954 | |||||||||
Tax credit carryforwards | 2,726 | 55,435 | |||||||||
Amortization | 21,595 | 23,900 | |||||||||
Deferred revenue | 43,644 | 62,079 | |||||||||
Net operating losses of subsidiaries | 12,456 | 11,561 | |||||||||
Benefit related to uncertain tax positions | 4,246 | 9,904 | |||||||||
Other | 3,485 | 4,064 | |||||||||
Valuation allowance related to loss carryforward and tax credits | -11,358 | -63,361 | |||||||||
148,030 | 180,873 | ||||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | 16,192 | 16,202 | |||||||||
Reserve for sales returns | 419 | 733 | |||||||||
Prepaid expenses | 3,283 | 4,766 | |||||||||
Book basis in excess of tax basis for acquired entities | 2,099 | 2,343 | |||||||||
Unrealized investment loss | 6,384 | 1,429 | |||||||||
Withholding tax | 50,561 | - | |||||||||
Other | 2,448 | - | |||||||||
81,386 | 25,473 | ||||||||||
Net deferred tax assets | $ | 66,644 | $ | 155,400 | |||||||
The Company recognized a $29,615 deferred tax asset during 2010 for the future tax benefit of the fair market value step-up in basis of intangible assets related to the redomestication to Switzerland and local statutory tax reporting requirements. The deferred tax asset was recognized as an increase to Additional Paid-In Capital in 2010 and will reverse as the intangible assets are amortized for Swiss statutory and tax reporting purposes. | |||||||||||
At December 27, 2014, the Company had $2,726 of tax credit carryover compared to $55,435 at December 28, 2013, of which $52,618 was Taiwan surtax credit offset with a full valuation allowance. The surtax credit carryover from 2013 of $52,618 was adjusted and subsequently fully utilized in 2014 upon the execution of the inter-company restructuring. In turn, the entire valuation allowance regarding the surtax credit was released. | |||||||||||
At December 27, 2014, the Company had a deferred tax asset of $12,456 related to the future tax benefit on net operating loss (NOL) carryforwards of $87,388. Included in the NOL carryforwards is $8,125 that relates to Spain and expires in varying amounts between 2022 and 2027, $59,697 that relates to Switzerland and expires in 2020, $11,958 related to the Netherlands that expires in varying amounts between 2014 and 2022, $1,299 that relates to Finland and expires in 2024 and $6,309 that relates to various other jurisdictions and has no expiration date. The Company has recorded a valuation allowance for a portion of its deferred tax asset relating to various tax attributes that it does not believe are more likely than not to be realized. In the future, if the Company determines, based on existence of sufficient evidence, that it should realize more or less of its deferred tax assets, an adjustment to the valuation allowance will be made in the period such a determination is made. | |||||||||||
The total amount of gross unrecognized tax benefits as of December 27, 2014 was $77,495. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for years ended December 27, 2014, December 28, 2013, and December 27, 2012 is as follows: | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of year | $ | 133,015 | $ | 182,870 | $ | 156,354 | |||||
Additions based on tax positions related to prior years | 2,889 | 2,668 | 3,263 | ||||||||
Reductions based on tax positions related to prior years | -60,967 | -8,195 | -897 | ||||||||
Additions based on tax positions related to current period | 39,115 | 30,262 | 33,232 | ||||||||
Reductions related to settlements with tax authorities | -401 | -416 | -665 | ||||||||
Expiration of statute of limitations | -36,156 | -74,174 | -8,417 | ||||||||
Balance at end of year | $ | 77,495 | $ | 133,015 | $ | 182,870 | |||||
The December 27, 2014 balance of $74,205 of net unrecognized tax benefits, if recognized, would reduce the effective tax rate. None of the unrecognized tax benefits are due to uncertainty in the timing of deductibility. | |||||||||||
Accounting guidance requires unrecognized tax benefits to be classified as non-current liabilities, except for the portion that is expected to be paid within one year of the balance sheet date. The entire $74,205, $125,918 and $173,532 are required to be classified as non-current at December 27, 2014, December 28, 2013, and December 29, 2012, respectively. | |||||||||||
Interest and penalties, if any, accrued on the unrecognized tax benefits are reflected in income tax expense. At December 27, 2014, December 28, 2013, and December 29, 2012, the Company had accrued approximately $2,159, $5,111, and $8,222, respectively, for interest. The interest component of the reserve increased (decreased) income tax expense for the years ending December 27, 2014, December 28, 2013, and December 29, 2012 by ($2,953), ($3,111), and ($4,705), respectively. The Company had no amounts accrued for penalties as the nature of the unrecognized tax benefits, if recognized, would not warrant the imposition of penalties. | |||||||||||
The Company files income tax returns in Switzerland and U.S. federal jurisdictions, as well as various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for years 2012 and prior. The Company is no longer subject to Taiwan income tax examinations by tax authorities for years 2008 and prior. The Company is no longer subject to United Kingdom tax examinations by tax authorities for years 2011 and prior. The Company is subject to Switzerland income tax examinations by tax authorities for years 2010 through 2014. | |||||||||||
The Company recognized a reduction of income tax expense of $83,006, $74,217, and $9,027 in fiscal years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively, to reflect the expiration of statutes of limitations and releases due to audit settlement in various jurisdictions. | |||||||||||
The Company believes that it is reasonably possible that approximately $5,000 to $10,000 of its reserves for certain unrecognized tax benefits will decrease within the next 12 months as the result of the expiration of statutes of limitations. This potential decrease in unrecognized tax benefits would impact the Company’s effective tax rate within the next 12 months. | |||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments | |||||||||||||
As required by the Financial Instruments topic of the FASB ASC, the following summarizes required information about the fair value of certain financial instruments for which it is currently practicable to estimate such value. None of the financial instruments are held or issued for trading purposes. The carrying amounts and fair values of the Company’s financial instruments are as follows: | ||||||||||||||
December 27, 2014 | December 28, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
Cash and cash equivalents | $ | 1,196,268 | $ | 1,196,268 | $ | 1,179,149 | $ | 1,179,149 | ||||||
Restricted cash | 308 | 308 | 249 | 249 | ||||||||||
Marketable securities | 1,575,333 | 1,575,333 | 1,651,968 | 1,651,968 | ||||||||||
For certain of the Company’s financial instruments, including accounts receivable, loan receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. | ||||||||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||
Dec. 27, 2014 | ||||||||||||||||||||
Segment Information | 8. Segment Information | |||||||||||||||||||
The Company has identified five reportable segments for external reporting purposes – auto/mobile, aviation, marine, outdoor and fitness. There are three operating segments (auto PND, auto OEM and mobile) that are not reported separately but aggregated within the auto/mobile reportable segment. Each operating segment is individually reviewed and evaluated by our Chief Operating Decision Maker (CODM), who allocates resources and assesses performance of each segment individually. | ||||||||||||||||||||
All of the Company’s reportable segments offer products through the Company’s network of independent dealers and distributors as well as through OEM’s. However, the nature of products and types of customers for the five reportable segments vary. The Company’s marine, auto/mobile, outdoor, and fitness segments include portable global positioning system (GPS) receivers and accessories sold primarily to retail outlets. These products are produced primarily by the Company’s subsidiary in Taiwan. The Company’s aviation products are portable and panel mount avionics for Visual Flight Rules and Instrument Flight Rules navigation and are sold primarily to aviation dealers and certain aircraft manufacturers. | ||||||||||||||||||||
The Company’s Chief Executive Officer has been identified as the CODM. The CODM evaluates performance and allocates resources based on income before income taxes of each segment. Income before income taxes represents net sales less operating expenses including certain allocated general and administrative costs, interest income and expense, foreign currency adjustments, and other non-operating corporate expenses. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. There are no inter-segment sales or transfers. | ||||||||||||||||||||
The Company’s reportable segments share many common resources, infrastructures and assets in the normal course of business. Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, or capital expenditures by segment to the CODM. | ||||||||||||||||||||
Revenues, interest income, and income before income taxes for each of the Company’s reportable segments are presented below: | ||||||||||||||||||||
Fiscal Year Ended December 27, 2014 | ||||||||||||||||||||
Auto/ | ||||||||||||||||||||
Aviation | Outdoor | Fitness | Marine | Mobile | Total | |||||||||||||||
Net sales to external customers | $ | 385,915 | $ | 427,555 | $ | 568,440 | $ | 248,371 | $ | 1,240,377 | $ | 2,870,658 | ||||||||
Allocated interest income | 2,689 | 5,282 | 7,739 | 3,841 | 16,033 | 35,584 | ||||||||||||||
Income before income taxes | 107,867 | 152,946 | 196,771 | 30,117 | 236,044 | 723,745 | ||||||||||||||
Fiscal Year Ended December 28, 2013 | ||||||||||||||||||||
Auto/ | ||||||||||||||||||||
Aviation | Outdoor | Fitness | Marine | Mobile | Total | |||||||||||||||
Net sales to external customers | $ | 339,337 | $ | 410,989 | $ | 356,283 | $ | 222,928 | $ | 1,302,314 | $ | 2,631,851 | ||||||||
Allocated interest income | 2,445 | 6,030 | 5,150 | 3,777 | 17,869 | 35,271 | ||||||||||||||
Income before income taxes | 93,083 | 168,549 | 131,411 | 25,993 | 234,522 | 653,558 | ||||||||||||||
Fiscal Year Ended December 29, 2012 | ||||||||||||||||||||
Auto/ | ||||||||||||||||||||
Aviation | Outdoor | Fitness | Marine | Mobile | Total | |||||||||||||||
Net sales to external customers | $ | 291,564 | $ | 401,747 | $ | 321,788 | $ | 208,136 | $ | 1,492,440 | $ | 2,715,675 | ||||||||
Allocated interest income | 1,546 | 3,951 | 3,799 | 2,838 | 22,974 | 35,108 | ||||||||||||||
Income before income taxes | 75,177 | 167,734 | 114,274 | 35,725 | 231,618 | 624,528 | ||||||||||||||
Net sales, long-lived assets (property and equipment), and net assets by geographic area are as shown below for the years ended December 27, 2014, December 28, 2013 and December 29, 2012. Note that APAC refers to the Asia Pacific region, and EMEA includes Europe, the Middle East and Africa. | ||||||||||||||||||||
Americas | APAC | EMEA | Total | |||||||||||||||||
27-Dec-14 | ||||||||||||||||||||
Net sales to external customers (1) | $ | 1,538,322 | $ | 278,092 | $ | 1,054,244 | $ | 2,870,658 | ||||||||||||
Property and equipment, net | $ | 269,858 | $ | 111,464 | $ | 49,565 | $ | 430,887 | ||||||||||||
Net assets (2) | $ | 2,142,624 | $ | 939,852 | $ | 320,891 | $ | 3,403,367 | ||||||||||||
28-Dec-13 | ||||||||||||||||||||
Net sales to external customers (1) | $ | 1,432,895 | $ | 243,056 | $ | 955,900 | $ | 2,631,851 | ||||||||||||
Property and equipment, net | 239,528 | 121,012 | 54,308 | 414,848 | ||||||||||||||||
Net assets (2) | 1,338,401 | 2,048,903 | 272,402 | 3,659,706 | ||||||||||||||||
29-Dec-12 | ||||||||||||||||||||
Net sales to external customers (1) | $ | 1,513,457 | $ | 256,882 | $ | 945,336 | $ | 2,715,675 | ||||||||||||
Property and equipment, net | 222,310 | 134,257 | 53,184 | 409,751 | ||||||||||||||||
Net assets (2) | 1,262,498 | 2,028,984 | 240,314 | 3,531,796 | ||||||||||||||||
(1) The U.S. is the only country which constitutes greater than 10% of net sales to external customers. | ||||||||||||||||||||
(2) Americas and APAC net assets are primarily held in the United States and Taiwan, respectively. | ||||||||||||||||||||
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Stock Compensation Plans | 9. Stock Compensation Plans | ||||||||||||
Accounting for Stock-Based Compensation | |||||||||||||
The various Company stock compensation plans are summarized below. For all stock compensation plans, the company’s policy is to issue treasury shares for option/SAR exercises, RSU releases and ESPP purchases. | |||||||||||||
2011 Non-employee Directors’ Equity Incentive Plan | |||||||||||||
In June 2011, the stockholders adopted an equity incentive plan for non-employee directors (the 2011 Directors Plan) providing for grants of stock options, SARs, RSUs and/or performance shares, pursuant to which up to 122,592 shares were available for issuance. The term of each award cannot exceed ten years. Awards may vest over a minimum two-year period. During 2014, 2013, and 2012, 7,120, 11,484, and 9,616 restricted stock units were granted under this plan. | |||||||||||||
2005 Equity Incentive Plan | |||||||||||||
In June 2005, the shareholders adopted an equity incentive plan (the “2005 Plan”) providing for grants of incentive and nonqualified stock options, SARs, RSUs and/or performance shares to employees of the Company and its subsidiaries, pursuant to which up to 10,000,000 common shares were available for issuance. Option and SAR grants vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised. RSUs granted prior to December 10, 2012, vested or are vesting evenly over a period of five years, while RSUs granted on and after that date vest evenly over a period of three years. RSU grants do not expire. During 2014, 2013 and 2012, 425,347, 413,978, and 495,814 restricted stock units were granted under the 2005 Plan. In addition, in 2014 and 2013, 47,095 and 52,673 stock appreciation rights were granted under the 2005 plan and in 2012, 61,235 stock options were granted under the 2005 Plan. No performance shares were granted under the 2005 Plan in 2014, 2013, or 2012. In 2013, the stockholders approved an additional 3,000,000 shares to the plan, making the total shares authorized under the plan 13,000,000. | |||||||||||||
2000 Equity Incentive Plan | |||||||||||||
In October 2000, the shareholders adopted an equity incentive plan (the “2000 Plan”) providing for grants of incentive and nonqualified stock options, SARs, RSUs and/or performance shares to employees of the Company and its subsidiaries, pursuant to which up to 7,000,000 common shares were available for issuance. The stock options and stock appreciation rights vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised. The Company did not grant any stock awards from the 2000 Plan in 2014, 2013, or 2012. | |||||||||||||
2000 Non-employee Directors’ Option Plan | |||||||||||||
Also in October 2000, the stockholders adopted a stock option plan for non-employee directors (the 2000 Directors Plan) providing for grants of options for up to 100,000 common shares. The term of each award is ten years. All awards vest evenly over a three-year period. During 2010, options to purchase 23,924 were granted under this plan. In 2009, the stockholders approved an additional 150,000 shares to the plan, making the total shares authorized under the plan 250,000. Following the June 2011 approval of the 2011 Directors Plan, the Company will no longer issue options to purchase shares under this plan. | |||||||||||||
Stock-Based Compensation Activity | |||||||||||||
A summary of the Company’s stock-based compensation activity and related information under the 2011 Directors Plan, the 2005 Plan and the 2000 Plan for the years ended December 27, 2014, December 28, 2013, and December 29, 2012: | |||||||||||||
Stock Options and SARs | |||||||||||||
Weighted-Average | |||||||||||||
Exercise Price | Number of Shares | ||||||||||||
(In Thousands) | |||||||||||||
Outstanding at December 31, 2011 | $ | 53.14 | 8,073 | ||||||||||
Granted | $ | 42.16 | 61 | ||||||||||
Exercised | $ | 24.2 | -794 | ||||||||||
Forfeited/Expired | $ | 66.45 | -208 | ||||||||||
Outstanding at December 29, 2012 | $ | 55.88 | 7,132 | ||||||||||
Granted | $ | 49.07 | 52 | ||||||||||
Exercised | $ | 26.85 | -662 | ||||||||||
Forfeited/Expired | $ | 66.09 | -283 | ||||||||||
Outstanding at December 28, 2013 | $ | 58.44 | 6,239 | ||||||||||
Granted | $ | 52.44 | 47 | ||||||||||
Exercised | $ | 40.6 | -1,430 | ||||||||||
Forfeited/Expired | $ | 80.49 | -125 | ||||||||||
Outstanding at December 27, 2014 | $ | 63.19 | 4,731 | ||||||||||
Exercisable at December 27, 2014 | $ | 63.73 | 4,580 | ||||||||||
Expected to vest after December 27, 2014 | $ | 47.36 | 125 | ||||||||||
Stock Options and SARs as of December 27, 2014 | |||||||||||||
Exercise | Awards | Remaining | Awards | ||||||||||
Price | Outstanding | Life (Years) | Exercisable | ||||||||||
(In Thousands) | (In Thousands) | ||||||||||||
$18.00 -$40.00 | 502 | 1.48 | 477 | ||||||||||
$40.01 - $60.00 | 2,108 | 2.9 | 1,982 | ||||||||||
$60.01 - $80.00 | 1,033 | 2.44 | 1,033 | ||||||||||
$80.01 - $100.00 | 3 | 2.95 | 3 | ||||||||||
$100.01 - $120.00 | 1,083 | 2.92 | 1,083 | ||||||||||
$120.01 - $140.00 | 2 | 2.75 | 2 | ||||||||||
4,731 | 2.57 | 4,580 | |||||||||||
Restricted Stock Units | |||||||||||||
Weighted-Average | |||||||||||||
Grant Date Fair Value | Number of Shares | ||||||||||||
(In Thousands) | |||||||||||||
Outstanding at December 31, 2011 | $ | 29.4 | 1,478 | ||||||||||
Granted | $ | 39.41 | 506 | ||||||||||
Released/Vested | $ | 41.59 | -435 | ||||||||||
Cancelled | $ | 26.11 | -89 | ||||||||||
Outstanding at December 29, 2012 | $ | 30.06 | 1,460 | ||||||||||
Granted | $ | 45.05 | 425 | ||||||||||
Released/Vested | $ | 28.28 | -579 | ||||||||||
Cancelled | $ | 30.63 | -81 | ||||||||||
Outstanding at December 28, 2013 | $ | 37.36 | 1,225 | ||||||||||
Granted | $ | 48.73 | 432 | ||||||||||
Released/Vested | $ | 36 | -522 | ||||||||||
Cancelled | $ | 37.02 | -47 | ||||||||||
Outstanding at December 27, 2014 | $ | 42.55 | 1,088 | ||||||||||
The weighted-average remaining contract life for stock options and SARs outstanding and exercisable at December 27, 2014 is 2.57 and 2.42 years, respectively. The weighted-average remaining contract life of restricted stock units at December 27, 2014 was 1.54 years. | |||||||||||||
The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions for 2014, 2013, and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average grant date fair value of options granted | $ | 12.42 | $ | 12.82 | $ | 9.98 | |||||||
Expected volatility | 0.3342 | 0.3746 | 0.3906 | ||||||||||
Dividend yield | 3.57 | % | 3.86 | % | 4.5 | % | |||||||
Expected life of options in years | 6.8 | 6.8 | 6.6 | ||||||||||
Risk-free interest rate | 1.9 | % | 2.1 | % | 1 | % | |||||||
The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options and SARs which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. | |||||||||||||
The total fair value of awards vested during 2014, 2013, and 2012 $19,127, $20,956, and $32,612, respectively. The aggregate intrinsic values of options and SARs outstanding and exercisable at December 27, 2014 were $21,592 and $20,542, respectively. The aggregate intrinsic values of options and SARs exercised during 2014, 2013, and 2012 were $18,885, $13,114, and $12,548 respectively. The aggregate intrinsic value of RSUs outstanding at December 27, 2014 was $58,521. The aggregate intrinsic values of RSUs released during 2014, 2013, and 2012, were $28,119, $27,007, and $17,390 respectively. Aggregate intrinsic value of options and SARS represents the applicable number of awards multiplied by the positive difference between the exercise price and the Company’s closing stock price on the last trading day of the relevant fiscal period. Aggregate intrinsic value of RSUs represents the applicable number of awards multiplied by the Company’s closing stock price on the last trading day of the relevant fiscal period. The Company’s closing stock price was $53.81 on December 27, 2014. As of December 27, 2014, there was $44,654 of total unrecognized compensation cost related to unvested share-based compensation awards granted to employees under the stock compensation plans. That cost is expected to be recognized over the weighted average remaining vesting period. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
The shareholders also adopted an employee stock purchase plan (ESPP). Up to 4,000,000 shares of common stock have been reserved for the ESPP with shareholders approving an additional 2,000,000 shares in May 2010. Shares will be offered to employees at a price equal to the lesser of 85% of the fair market value of the stock on the date of purchase or 85% of the fair market value on the first day of the ESPP period. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. During 2014, 2013, and 2012, 349,982, 395,220, and 326,483, shares, respectively were purchased under the plan for a total purchase price of $14,634, $12,181, and $10,629, respectively. During 2014, 2013 and 2012, the purchases were issued from treasury shares. At December 27, 2014, approximately 489,381 shares were available for future issuance. | |||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
Earnings Per Share | 10. Earnings Per Share | ||||||||||
The following table sets forth the computation of basic and diluted net income per share: | |||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Numerator: | |||||||||||
Numerator for basic and diluted net income per share - net income | $ | 364,211 | $ | 612,412 | $ | 542,403 | |||||
Denominator: | |||||||||||
Denominator for basic net income per share – weighted-average common shares | 193,106 | 195,411 | 194,909 | ||||||||
Effect of dilutive securities – employee stock options and stock appreciation rights | 1,059 | 928 | 1,304 | ||||||||
Denominator for diluted net income per share – adjusted weighted-average common shares | 194,165 | 196,339 | 196,213 | ||||||||
Basic net income per share | $ | 1.89 | $ | 3.13 | $ | 2.78 | |||||
Diluted net income per share | $ | 1.88 | $ | 3.12 | $ | 2.76 | |||||
Options to purchase 2,240,005, 5,475,000, and 5,640,615 common shares were outstanding during 2014, 2013 and 2012, but were not included in the computation of diluted earnings per share because the effect was antidilutive. | |||||||||||
Share_Repurchase_Plan
Share Repurchase Plan | 12 Months Ended |
Dec. 27, 2014 | |
Share Repurchase Plan | 11. Share Repurchase Plan |
On February 15, 2013, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $300,000 of its common shares through December 31, 2014. Under the plan, the Company repurchased 1,376,500 shares using cash of $58,422 in fiscal 2013 and 4,369,360 shares using cash of $241,578 in fiscal 2014. | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Accumulated Other Comprehensive Income | 12. Accumulated Other Comprehensive Income | |||||||||||||
The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the year ended December 27, 2014: | ||||||||||||||
Net unrealized | ||||||||||||||
Gross unrealized | gains(losses) on | |||||||||||||
Foreign Currency | losses on | available-for-sale | ||||||||||||
Translation | available-for-sale | securities- | ||||||||||||
Adjustment | securities-OTTI (1) | Other(2) | Total | |||||||||||
Balance - beginning of period | $ | 85,363 | $ | -57,356 | $ | 10,034 | $ | 38,041 | ||||||
Other comprehensive income before reclassification | -64,489 | 44,325 | -15,172 | -35,336 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | - | - | -134 | -134 | ||||||||||
Net current-period other comprehensive income | -64,489 | 44,325 | -15,306 | -35,470 | ||||||||||
Balance - end of period | $ | 20,874 | $ | -13,031 | $ | -5,272 | $ | 2,571 | ||||||
(1) Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than-temporarily impaired. | ||||||||||||||
(2) Represents the change in unrealized gains/(losses) on investment securities that have not been determined to be other-than-temporarily impaired. | ||||||||||||||
The following provides required disclosure of reporting reclassifications out of AOCI for the year ended December 27, 2014: | ||||||||||||||
Details about Accumulated Other Comprehensive | Amount Reclassified from | Affected Line Item in the Statement | ||||||||||||
Income Components | Accumulated Other | Where Net Income is Presented | ||||||||||||
Comprehensive Income | ||||||||||||||
Unrealized gains (losses) on available-for-sale securities | $ | 505 | Other income (expense) | |||||||||||
-370 | Income tax provision | |||||||||||||
$ | 135 | Net of tax | ||||||||||||
Selected_Quarterly_Information
Selected Quarterly Information (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Selected Quarterly Information (Unaudited) | 13. Selected Quarterly Information (Unaudited) | |||||||||||||
Fiscal Year Ended December 27, 2014 | ||||||||||||||
Quarter Ending | ||||||||||||||
March 29 | June 28 | September 27 | December 27 | |||||||||||
Net sales | $ | 583,221 | $ | 777,848 | $ | 706,283 | $ | 803,306 | ||||||
Gross profit | 330,834 | 444,485 | 398,246 | 430,848 | ||||||||||
Net income | 118,818 | 181,983 | -146,834 | 210,245 | ||||||||||
Basic net income per share | $ | 0.61 | $ | 0.94 | $ | -0.76 | $ | 1.1 | ||||||
Fiscal Year Ended December 28, 2013 | ||||||||||||||
Quarter Ending | ||||||||||||||
March 30 | June 29 | September 28 | December 28 | |||||||||||
Net sales | $ | 531,957 | $ | 696,563 | $ | 643,637 | $ | 759,694 | ||||||
Gross profit | 276,133 | 383,640 | 352,889 | 394,638 | ||||||||||
Net income | 88,666 | 172,491 | 187,669 | 163,586 | ||||||||||
Basic net income per share | $ | 0.45 | $ | 0.88 | $ | 0.96 | $ | 0.84 | ||||||
The above quarterly financial data is unaudited, but in the opinion of management, all adjustments necessary for a fair presentation of the selected data for these interim periods presented have been included. These results are not necessarily indicative of future quarterly results (the table may not foot due to rounding). | ||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Subsequent Events | 14. Subsequent Events | ||||||||||||
On February 13, 2015, the Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $300 million of the common shares of Garmin Ltd. The repurchases may be made from time to time as market and business conditions warrant on the open market or in negotiated transactions in compliance with the SEC’s Rule 10b-18. The timing and amounts of any repurchases will be determined by the Company’s management depending on market conditions and other factors including price, regulatory requirements and capital availability. The program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. The share repurchase authorization expires on December 31, 2016. | |||||||||||||
Other disclosures required by Swiss law: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Personnel expenses (CHF in Thousands) | 596,491 | 559,037 | 521,799 | ||||||||||
The detailed disclosures regarding significant shareholders as well as the board and executive share ownership that are required by Swiss law are included in Notes 6 and 7 to the Garmin Ltd. (Switzerland) statutory financial statements. | |||||||||||||
As of December 27, 2014, December 28, 2013 and December 29, 2012, the Company’s property, plant and equipment are insured against fire under a global insurance policy, which covers damages up to USD 500 million per occurrence. The net amount of property, plant and equipment presented in the balance sheet at each period end approximates the replacement costs. | |||||||||||||
Garmin Ltd.’s risk assessment is presented in Note 8 – Risk Assessment of the Garmin Ltd. (Switzerland) statutory financial statements. | |||||||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Garmin Ltd. and Subsidiaries | |||||||||||||||||
(In thousands) | |||||||||||||||||
Additions | |||||||||||||||||
Balance at | Charged to | Charged to | Balance at | ||||||||||||||
Beginning of | Costs and | Other | End of | ||||||||||||||
Description | Period | Expenses | Accounts | Deductions | Period | ||||||||||||
Year Ended December 27, 2014: | |||||||||||||||||
Deducted from asset accounts | |||||||||||||||||
Allowance for doubtful accounts | $ | 20,367 | $ | 66 | - | $ | -2,103 | $ | 18,330 | ||||||||
Inventory reserve | 28,381 | 25,903 | - | -17,149 | 37,135 | ||||||||||||
Deferred tax asset valuation allowance | 63,361 | 2,930 | - | -54,933 | 11,358 | ||||||||||||
Total | $ | 112,109 | $ | 28,899 | - | $ | -74,185 | $ | 66,823 | ||||||||
Year Ended December 28, 2013: | |||||||||||||||||
Deducted from asset accounts | |||||||||||||||||
Allowance for doubtful accounts | $ | 20,582 | $ | 1,553 | - | $ | -1,768 | $ | 20,367 | ||||||||
Inventory reserve | 26,105 | 20,891 | - | -18,615 | 28,381 | ||||||||||||
Deferred tax asset valuation allowance | 51,393 | 19,480 | - | -7,512 | 63,361 | ||||||||||||
Total | $ | 98,080 | $ | 41,924 | - | $ | -27,895 | $ | 112,109 | ||||||||
Year Ended December 29, 2012: | |||||||||||||||||
Deducted from asset accounts | |||||||||||||||||
Allowance for doubtful accounts | $ | 20,291 | $ | 2,947 | - | $ | -2,656 | $ | 20,582 | ||||||||
Inventory reserve | 29,370 | 11,003 | - | -14,268 | 26,105 | ||||||||||||
Deferred tax asset valuation allowance | 37,173 | 14,595 | - | -375 | 51,393 | ||||||||||||
Total | $ | 86,834 | $ | 28,545 | - | $ | -17,299 | $ | 98,080 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation | ||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The accompanying consolidated financial statements reflect the accounts of Garmin Ltd. and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated. | |||||||||||
Fiscal Year | Fiscal Year | ||||||||||
The Company has adopted a 52–53-week period ending on the last Saturday of the calendar year. Due to the fact that there are not exactly 52 weeks in a calendar year and there is slightly more than one additional day per year (not including the effects of leap year) in each calendar year as compared to a 52-week fiscal year, the Company will have a fiscal year comprising 53 weeks in certain fiscal years, as determined by when the last Saturday of the calendar year occurs. | |||||||||||
In those resulting fiscal years that have 53 weeks, the Company will record an extra week of sales, costs, and related financial activity. Therefore, the financial results of those fiscal years, and the associated 14-week fourth quarter, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the associated quarters having only 13 weeks. Fiscal years 2014, 2013 and 2012 included 52 weeks. | |||||||||||
Use of Estimates | Use of Estimates | ||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||
Foreign Currency | Foreign Currency | ||||||||||
Many Garmin Ltd. subsidiaries utilize currencies other than the United States Dollar (USD) as their functional currency. As required by the Foreign Currency Matters topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the financial statements of these subsidiaries for all periods presented have been translated into USD, the functional currency of Garmin Ltd., and the reporting currency herein, for purposes of consolidation at rates prevailing during the year for sales, costs, and expenses and at end-of-year rates for all assets and liabilities. The effect of this translation is recorded in a separate component of stockholders’ equity. Cumulative translation adjustments of $20,874 and $85,363 as of December 27, 2014 and December 28, 2013, respectively, have been included in accumulated other comprehensive income in the accompanying consolidated balance sheets. | |||||||||||
Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. All differences are recorded in results of operations and amounted to exchange gains (losses) of ($4,299), $35,538, and ($20,022) for the years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. The loss in fiscal 2014 was due primarily to the USD strengthening against the Euro and the British Pound Sterling which was largely offset by the USD strengthening against the Taiwan Dollar. The gain in fiscal 2013 was due primarily to the strengthening of the USD against the Taiwan Dollar and the USD weakening against the Euro and the British Pound Sterling. The loss in fiscal 2012 was due primarily to the weakening of the USD against the Taiwan Dollar and was partially offset by the USD weakening against the Euro and the British Pound Sterling. | |||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||
Basic earnings per share amounts are computed based on the weighted-average number of common shares outstanding. For purposes of diluted earnings per share, the number of shares that would be issued from the exercise of dilutive stock options has been reduced by the number of shares which could have been purchased from the proceeds of the exercise at the average market price of the Company’s stock during the period the options were outstanding. See Note 10. | |||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, operating accounts, money market funds, and securities with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents approximates fair value, given the short maturity of those instruments. | |||||||||||
Trade Accounts Receivable | Trade Accounts Receivable | ||||||||||
The Company sells its products to retailers, wholesalers, and other customers and extends credit based on its evaluation of the customer’s financial condition. Potential losses on receivables are dependent on each individual customer’s financial condition. The Company carries its trade accounts receivable at net realizable value. Typically, its accounts receivable are collected within 80 days and do not bear interest. The Company monitors its exposure to losses on receivables and maintains allowances for potential losses or adjustments. The Company determines these allowances by (1) evaluating the aging of its receivables and (2) reviewing its high-risk customers. Past due receivable balances are written off when its internal collection efforts have been unsuccessful in collecting the amount due. The Company maintains trade credit insurance to provide security against large losses. | |||||||||||
Concentration of Credit Risk | Concentration of Credit Risk | ||||||||||
The Company grants credit to certain customers who meet the Company’s pre-established credit requirements. Generally, the Company does not require security when trade credit is granted to customers. Credit losses are provided for in the Company’s consolidated financial statements and typically have been within management’s expectations. Certain customers are allowed extended terms consistent with normal industry practice. Most of these extended terms can be classified as either relating to seasonal sales variations or to the timing of new product releases by the Company. | |||||||||||
The Company’s top ten customers have contributed between 22% and 26% of net sales since 2012. None of the Company’s customers accounted for more than 10% of consolidated net sales in the years ended December 27, 2014, December 28, 2013, and December 29, 2012. | |||||||||||
Loan Receivable | Loan Receivable | ||||||||||
On March 14, 2013, the Company entered into a Memorandum of Agreement (the “Agreement”) with Bombardier, Inc. (“Bombardier”). The Company is the supplier of the avionics system for the Lear 70 and Lear 75 aircraft for Learjet, Inc., which is a subsidiary of Bombardier (the “Program”). In order to assist Bombardier in connection with delayed cash flows from the Program partially related to the certification of avionics for the Program exceeding the planned delivery date, the Company agreed to provide Bombardier a short term, interest free, loan of $173,708 in cash in seven installments beginning on March 22, 2013 and ending on September 20, 2013 pursuant to the terms and conditions of the Agreement. Bombardier repaid the loan in five installments beginning in November 2013 and ending in April 2014 pursuant to the terms and conditions of the Agreement and subsequent amendment signed December 6, 2013. As of December 27, 2014, the Company had a loan receivable balance of $0 from Bombardier in the accompanying consolidated balance sheet. | |||||||||||
Inventories | Inventories | ||||||||||
Inventories are stated at the lower of cost or market with cost being determined on a first-in, first-out (FIFO) basis. Garmin writes down its inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventories consisted of the following: | |||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||
Raw Materials | $ | 161,444 | $ | 131,408 | |||||||
Work-in-process | $ | 53,824 | $ | 50,110 | |||||||
Finished goods | $ | 244,282 | $ | 229,089 | |||||||
Inventory Reserves | $ | -39,075 | $ | -28,381 | |||||||
Inventory, net of reserves | $ | 420,475 | $ | 382,226 | |||||||
Property and Equipment | Property and Equipment | ||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives: | |||||||||||
Buildings and improvements | 39 | ||||||||||
Office furniture and equipment | 5-Mar | ||||||||||
Manufacturing and engineering equipment | 5 | ||||||||||
Vehicles | 5 | ||||||||||
Long-Lived Assets | Long-Lived Assets | ||||||||||
As required by the Property, Plant and Equipment topic of the FASB ASC, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | |||||||||||
The Intangibles – Goodwill and Other topic of the FASB ASC requires that goodwill and intangible assets with indefinite useful lives should not be amortized but rather be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that they may be impaired. The Company did not recognize any goodwill or intangible asset impairment charges in 2014, 2013, or 2012. The accounting guidance also requires that intangible assets with finite lives be amortized over their estimated useful lives and reviewed for impairment. The Company is currently amortizing its acquired intangible assets with finite lives over periods ranging from 3 to 10 years. | |||||||||||
Dividends | Dividends | ||||||||||
Under Swiss corporate law, dividends must be approved by shareholders at the general meeting of our shareholders. | |||||||||||
On June 6, 2014, the shareholders approved a dividend of $1.92 per share (of which, $0.96 was paid in the Company's 2014 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows: | |||||||||||
Dividend Date | Record Date | $s per share | |||||||||
30-Jun-14 | 17-Jun-14 | $ | 0.48 | ||||||||
30-Sep-14 | 15-Sep-14 | $ | 0.48 | ||||||||
31-Dec-14 | 15-Dec-14 | $ | 0.48 | ||||||||
31-Mar-15 | 16-Mar-15 | $ | 0.48 | ||||||||
The Company paid dividends in 2014 in the amount of $360,075. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings. | |||||||||||
On June 7, 2013, the shareholders approved a dividend of $1.80 per share (of which, $0.90 was paid in the Company's 2013 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows: | |||||||||||
Dividend Date | Record Date | $s per share | |||||||||
28-Jun-13 | 18-Jun-13 | $ | 0.45 | ||||||||
30-Sep-13 | 16-Sep-13 | $ | 0.45 | ||||||||
31-Dec-13 | 16-Dec-13 | $ | 0.45 | ||||||||
31-Mar-14 | 17-Mar-14 | $ | 0.45 | ||||||||
The Company paid dividends in 2013 in the amount of $351,707. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings. | |||||||||||
On June 1, 2012, the shareholders approved a dividend of $1.80 per share (of which, $0.90 was paid in the Company's 2012 fiscal year) payable in four installments as follows: | |||||||||||
Dividend Date | Record Date | $s per share | |||||||||
29-Jun-12 | 15-Jun-12 | $ | 0.45 | ||||||||
28-Sep-12 | 14-Sep-12 | $ | 0.45 | ||||||||
31-Dec-12 | 14-Dec-12 | $ | 0.45 | ||||||||
29-Mar-13 | 15-Mar-13 | $ | 0.45 | ||||||||
The Company paid dividends in 2012 in the amount of $253,386. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings. | |||||||||||
Approximately $290,955 and $265,880 of retained earnings are indefinitely restricted from distribution to stockholders pursuant to the laws of Taiwan at December 27, 2014 and December 28, 2013, respectively. | |||||||||||
Intangible Assets | Intangible Assets | ||||||||||
At December 27, 2014 and December 28, 2013, the Company had patents, customer related intangibles and other identifiable finite-lived intangible assets recorded at a cost of $191,034 and $183,431, respectively. Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis over three to ten years. Accumulated amortization was $151,589 and $143,227 at December 27, 2014 and December 28, respectively. Amortization expense on these intangible assets was $8,362, $17,847,and $21,437 for the years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively. In the next five years, the amortization expense is estimated to be $20,038, $7,481, $4,799, $4,122, and $2,811, respectively. | |||||||||||
The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $178,638 at December 27, 2014 and $179,290 at December 28, 2013. | |||||||||||
December 27, | December 28, | ||||||||||
2014 | 2013 | ||||||||||
Goodwill balance at beginning of year | $ | 179,290 | $ | 176,059 | |||||||
Acquisitions | 2,517 | 2,726 | |||||||||
Finalization of purchase price allocations and effect of foreign currency translation | -3,169 | 505 | |||||||||
Goodwill balance at end of year | $ | 178,638 | $ | 179,290 | |||||||
Marketable Securities | Marketable Securities | ||||||||||
Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date. | |||||||||||
All of the Company’s marketable securities were considered available-for-sale at December 27, 2014. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of tax, reported in other comprehensive gain(loss). At December 27, 2014 and December 28, 2013, cumulative unrealized gains and losses, net of tax of ($18,303) and ($47,322), respectively, were reported in accumulated other comprehensive income, net of related taxes. | |||||||||||
Investments are reviewed periodically to determine if they have suffered an impairment of value that is considered other than temporary. If investments are determined to be impaired, a loss is recognized at the date of determination. | |||||||||||
Testing for impairment of investments requires significant management judgment. The identification of potentially impaired investments, the determination of their fair value and the assessment of whether any decline in value is other than temporary are the key judgment elements. The discovery of new information and the passage of time can significantly change these judgments. Revisions of impairment judgments are made when new information becomes known, and any resulting impairment adjustments are made at that time. The economic environment and volatility of securities markets increase the difficulty of determining fair value and assessing investment impairment. | |||||||||||
The amortized cost of debt securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization is included in interest income from investments. Realized gains and losses, and credit declines in value judged to be other-than-temporary are included in other income. The cost of securities sold is based on the specific identification method. | |||||||||||
Investments are discussed in detail in Note 3 of the Notes to Consolidated Financial Statements. | |||||||||||
Income Taxes | Income Taxes | ||||||||||
The Company accounts for income taxes using the liability method in accordance with the FASB ASC 740 topic Income Taxes. The liability method provides that deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes as measured based on the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. | |||||||||||
The Company adopted the applicable guidance included in the FASB ASC 740 topic Income Taxes related to accounting for uncertainty in income taxes on December 31, 2006, the beginning of fiscal year 2007. We recognize liabilities for tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves not to be required, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. If our estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. | |||||||||||
Income taxes are discussed in detail in Note 6 of the Notes to Consolidated Financial Statements. | |||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||
Garmin recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. For the large majority of Garmin’s sales, these criteria are met once product has shipped and title and risk of loss have transferred to the customer. The Company recognizes revenue from the sale of hardware products and software bundled with hardware that is essential to the functionality of the hardware in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for standalone sales of software products and sales of software bundled with hardware not essential to the functionality of the hardware. The Company generally does not offer specified or unspecified upgrade rights to its customers in connection with software sales. | |||||||||||
Garmin introduced nüMaps Lifetime™ in 2009, which is a single fee program that, subject to the program’s terms and conditions, enables customers to download the latest map and point of interest information for the useful life of their PND. The revenue and associated cost of royalties for sales of nüMaps Lifetime™ products are deferred at the time of sale and recognized ratably on a straight-line basis over the estimated 36-month life of the products. With the acquisition of Navigon AG in 2011, products marketed under the Navigon brand have a FreshMaps program that enables customers to download the latest map and point of interest information for two years. The revenue and associated cost of royalties for sales of FreshMaps products are deferred at the time of sale and recognized ratably on a straight-line basis over the two year period. | |||||||||||
For multiple-element arrangements that include tangible products that contain software essential to the tangible product’s functionality and undelivered software elements that relate to the tangible product’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). VSOE generally exists only when the Company sells the deliverable separately, on more than a limited basis, at prices within a relatively narrow range. In addition to the products listed below, the Company has offered certain other products including mobile applications, aviation subscriptions and extended warranties that involve multiple-element arrangements that are immaterial. | |||||||||||
In 2010, Garmin began offering PNDs with lifetime map updates (LMUs) bundled in the original purchase price. Similar to nüMaps Lifetime™, LMUs enable customers to download the latest map and point of interest information for the useful life of their PND. In addition, Garmin offers PNDs with traffic service bundled in the original purchase price. The Company has identified multiple deliverables contained in arrangements involving the sale of PNDs which include the LMU and/or traffic service. The first deliverable is the hardware along with the software essential to the functionality of the hardware device delivered at the time of sale. The second deliverable and potentially third deliverables are the LMU and/or traffic service. The Company has allocated revenue between these deliverables using the relative selling price method. Amounts allocated to the delivered hardware and the related essential software are recognized at the time of sale provided the other conditions for revenue recognition have been met. The revenue and associated cost of royalties allocated to the LMU or the subscription for traffic service are deferred and recognized on a straight-line basis over the estimated 36-month life of the products. | |||||||||||
As the sales of nüMaps Lifetime and traffic subscriptions as a percentage of total unit sales or in the aggregate decreased significantly in mid-2011, the Company determined that the previous estimate of selling price based on more limited stand-alone sales of nüMaps Lifetime or traffic was no longer a sole determinant of its value as determined under VSOE, and that third party evidence of selling price was not available. The Company determined that the price differential between bundled and unbundled products and the royalty cost of the LMU or traffic subscription plus an approximate margin were both additional indicators of estimated selling price. These estimates were also reflective of how the Company established product pricing based in part on customer perception of value of the added LMU or traffic service capability. As such, during 2012 and 2013, the Company estimated selling price of the undelivered element based on the relative selling price method using a weighted average of the stand-alone sales price, the price differential between bundled and unbundled units, and the royalty or subscription cost plus a normal margin. In 2014, the Company determined that stand-alone and unbundled unit sales no longer occurred on more than a limited basis, and the royalty or subscription cost plus a normal margin is therefore now used as the primary indicator in calculating relative selling price of the undelivered element. | |||||||||||
Garmin records estimated reductions to revenue for customer sales programs, returns and incentive offerings including rebates, price protection (product discounts offered to retailers to assist in clearing older products from their inventories in advance of new product releases), promotions and other volume-based incentives. The reductions to revenue are based on estimates and judgments using historical experience and expectation of future conditions. Changes in these estimates could negatively affect Garmin’s operating results. These incentives are reviewed periodically and, with the exceptions of price protection and certain other promotions, accrued for on a percentage of sales basis. If market conditions were to decline, Garmin may take actions to increase customer incentive offerings, possibly resulting in an incremental reduction of revenue at the time the incentive is offered. | |||||||||||
The Company records revenue net of sales tax, trade discounts and customer returns. The reductions to revenue for expected future product returns are based on Garmin’s historical experience. | |||||||||||
Deferred Revenues and Costs | Deferred Revenues and Costs | ||||||||||
At December 27, 2014 and December 28, 2013, the Company had deferred revenues totaling $338,728 and $427,920, respectively, and related deferred costs totaling $87,476 and $98,525, respectively. | |||||||||||
The deferred revenues and costs are recognized over their estimated economic lives of two to three years on a straight-line basis. In the next three years, the gross margin recognition of deferred revenue and cost for the currently deferred amounts is estimated to be $152,262, $71,801, and $27,189, respectively. | |||||||||||
Shipping and Handling Costs | Shipping and Handling Costs | ||||||||||
Shipping and handling costs are included in cost of goods sold in the accompanying consolidated financial statements. | |||||||||||
Product Warranty | Product Warranty | ||||||||||
The Company provides for estimated warranty costs at the time of sale. The Company’s standard warranty obligation to retail partners generally provides for a right of return of any product for a full refund in the event that such product is not merchantable, is damaged or defective. The Company’s historical experience is that these types of warranty obligations are generally fulfilled within 5 months from time of sale. The Company’s standard warranty obligation to its end-users provides for a period of one to two years from date of shipment while certain aviation products have a warranty period of two years from the date of installation. The Company’s estimate of costs to service its warranty obligations are based on historical experience and expectations of future conditions and are recorded as a liability on the balance sheet. To the extent Garmin experiences increased warranty claim activity or increased costs associated with servicing those claims, its warranty accrual will increase, resulting in decreased gross profit. The following reconciliation provides an illustration of changes in the aggregate warranty reserve: | |||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance - beginning of period | $ | 26,767 | $ | 37,301 | $ | 46,773 | |||||
Change in accrual for products sold in prior periods (1) | - | -8,709 | - | ||||||||
Accrual for products sold(2) | 44,423 | 41,309 | 38,421 | ||||||||
Expenditures | -43,581 | -43,134 | -47,893 | ||||||||
Balance - end of period | $ | 27,609 | $ | 26,767 | $ | 37,301 | |||||
-1 | Our expected future cost is estimated based upon historical trends in the volume of product returns and the related warranty costs incurred. In 2013 we updated these assumptions and shortened the estimated time horizon in which we settle claims with our retail partners. | ||||||||||
-2 | Minor changes in cost estimates related to pre-existing warranties are aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line. | ||||||||||
Sales Programs | Sales Programs | ||||||||||
The Company provides certain monthly and quarterly incentives for its dealers and distributors based on various factors including dealer purchasing volume and growth. Additionally, from time to time, the Company provides rebates to end users on certain products. Estimated rebates and incentives payable to dealers and distributors are regularly reviewed and recorded as accrued expenses on a monthly basis. In addition, the Company provides dealers and distributors with product discounts to assist these customers in clearing older products from their inventories in advance of new product releases. Each discount is tied to a specific product and can be applied to all customers who have purchased the product or a special discount may be agreed to on an individual customer basis. These rebates, incentives, and discounts are recorded as reductions to net sales in the accompanying consolidated statements of income in the period the Company has sold the product. | |||||||||||
Advertising Costs | Advertising Costs | ||||||||||
The Company expenses advertising costs as incurred. Advertising expense amounted to approximately $146,633, $112,905 and $138,757, for the years ended December 27, 2014, December 28, 2013 and December 29, 2012, respectively. | |||||||||||
Research and Development | Research and Development | ||||||||||
A majority of the Company’s research and development is performed in the United States. Research and development costs, which are expensed as incurred, amounted to approximately $395,121, $364,923 and $325,773, for the years ended December 27, 2014, December 28, 2013 and December 29, 2012, respectively. | |||||||||||
Customer Service and Technical Support | Customer Service and Technical Support | ||||||||||
Customer service and technical support costs are included as selling, general and administrative expenses in the accompanying consolidated statements of income. Customer service and technical support costs include costs associated with performing order processing, answering customer inquiries by telephone and through Web sites, e-mail and other electronic means, and providing free technical support assistance to customers. The technical support is provided within one year after the associated revenue is recognized. The related cost of providing this free support is not material. | |||||||||||
Software Development Costs | Software Development Costs | ||||||||||
The FASB ASC topic entitled Software requires companies to expense software development costs as they incur them until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. Capitalized software development costs are not significant as the time elapsed from working model to release is typically short. As required by the Research and Development topic of the FASB ASC, costs incurred to enhance our existing products or after the general release of the service using the product are expensed in the period they are incurred and included in research and development costs in the accompanying consolidated statements of income. | |||||||||||
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation | ||||||||||
The Company currently sponsors four stock based employee compensation plans. Garmin awards stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and/or performance shares each year as part of Garmin’s compensation package for employees. Certain employees within Garmin are eligible for stock options, SAR grants, RSU grants and/or performance shares but the granting of options, SARs, RSUs and/or performance shares is at the discretion of the Compensation Committee of the Board of Directors and is not a contractual obligation. The FASB ASC topic entitled Compensation – Stock Compensation requires the measurement and recognition of compensation expenses for all share-based payment awards made to employees and directors including employee stock options and restricted stock based on estimated fair values. | |||||||||||
Accounting guidance requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as stock-based compensation expense on a straight-line basis over the requisite service period in the Company’s consolidated financial statements. | |||||||||||
Determining the fair value of stock-based awards at the grant date requires judgment, including estimating expected life, forfeitures and dividends. If forfeitures differ significantly from these estimates, stock-based compensation expense could be impacted. Forfeitures were estimated based on historical experience and management’s estimates. | |||||||||||
Stock compensation plans are discussed in detail in Note 9 of the Notes to Consolidated Financial Statements. | |||||||||||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | ||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11), which is included in ASC Topic 740 (Income Taxes). ASU 2013-11 requires an entity to net its liability for unrecognized tax positions against a net operating loss carryforward, a similar tax loss or a tax credit carryforward when settlement in this manner is available under the tax law. The provisions of this new guidance are effective for reporting periods beginning after December 15, 2013. The implementation of the amended accounting guidance did not have a material impact on the Company’s financial statements. | |||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes previous revenue recognition guidance. ASU 2014-09 requires that a company will recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange or transferring goods or services to a customer. In applying the new guidance, a company will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The provisions of this new guidance are effective for reporting periods beginning after December 15, 2016 and can be adopted using either a full retrospective or modified approach. The Company is currently evaluating the impact of adopting this new guidance on the Company’s financial statements. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
Components of Inventories | Inventories consisted of the following: | ||||||||||
December 27, 2014 | December 28, 2013 | ||||||||||
Raw Materials | $ | 161,444 | $ | 131,408 | |||||||
Work-in-process | $ | 53,824 | $ | 50,110 | |||||||
Finished goods | $ | 244,282 | $ | 229,089 | |||||||
Inventory Reserves | $ | -39,075 | $ | -28,381 | |||||||
Inventory, net of reserves | $ | 420,475 | $ | 382,226 | |||||||
Property, Plant and Equipment | Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives: | ||||||||||
Buildings and improvements | 39 | ||||||||||
Office furniture and equipment | 5-Mar | ||||||||||
Manufacturing and engineering equipment | 5 | ||||||||||
Vehicles | 5 | ||||||||||
Schedule of Dividends Payable | On June 6, 2014, the shareholders approved a dividend of $1.92 per share (of which, $0.96 was paid in the Company's 2014 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows: | ||||||||||
Dividend Date | Record Date | $s per share | |||||||||
30-Jun-14 | 17-Jun-14 | $ | 0.48 | ||||||||
30-Sep-14 | 15-Sep-14 | $ | 0.48 | ||||||||
31-Dec-14 | 15-Dec-14 | $ | 0.48 | ||||||||
31-Mar-15 | 16-Mar-15 | $ | 0.48 | ||||||||
On June 7, 2013, the shareholders approved a dividend of $1.80 per share (of which, $0.90 was paid in the Company's 2013 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows: | |||||||||||
Dividend Date | Record Date | $s per share | |||||||||
28-Jun-13 | 18-Jun-13 | $ | 0.45 | ||||||||
30-Sep-13 | 16-Sep-13 | $ | 0.45 | ||||||||
31-Dec-13 | 16-Dec-13 | $ | 0.45 | ||||||||
31-Mar-14 | 17-Mar-14 | $ | 0.45 | ||||||||
On June 1, 2012, the shareholders approved a dividend of $1.80 per share (of which, $0.90 was paid in the Company's 2012 fiscal year) payable in four installments as follows: | |||||||||||
Dividend Date | Record Date | $s per share | |||||||||
29-Jun-12 | 15-Jun-12 | $ | 0.45 | ||||||||
28-Sep-12 | 14-Sep-12 | $ | 0.45 | ||||||||
31-Dec-12 | 14-Dec-12 | $ | 0.45 | ||||||||
29-Mar-13 | 15-Mar-13 | $ | 0.45 | ||||||||
Change in Carrying Amount of Goodwill | The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $178,638 at December 27, 2014 and $179,290 at December 28, 2013. | ||||||||||
December 27, | December 28, | ||||||||||
2014 | 2013 | ||||||||||
Goodwill balance at beginning of year | $ | 179,290 | $ | 176,059 | |||||||
Acquisitions | 2,517 | 2,726 | |||||||||
Finalization of purchase price allocations and effect of foreign currency translation | -3,169 | 505 | |||||||||
Goodwill balance at end of year | $ | 178,638 | $ | 179,290 | |||||||
Schedule of Product Warranty Liability | The following reconciliation provides an illustration of changes in the aggregate warranty reserve: | ||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance - beginning of period | $ | 26,767 | $ | 37,301 | $ | 46,773 | |||||
Change in accrual for products sold in prior periods (1) | - | -8,709 | - | ||||||||
Accrual for products sold(2) | 44,423 | 41,309 | 38,421 | ||||||||
Expenditures | -43,581 | -43,134 | -47,893 | ||||||||
Balance - end of period | $ | 27,609 | $ | 26,767 | $ | 37,301 | |||||
-1 | Our expected future cost is estimated based upon historical trends in the volume of product returns and the related warranty costs incurred. In 2013 we updated these assumptions and shortened the estimated time horizon in which we settle claims with our retail partners. | ||||||||||
-2 | Minor changes in cost estimates related to pre-existing warranties are aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line. | ||||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
Available For Sale Securities Measured At Estimated Fair Value On Recurring Basis | Available for sale securities measured at estimated fair value on a recurring basis are summarized below: | ||||||||||||||||
Fair Value Measurements as | |||||||||||||||||
of December 27, 2014 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mortgage-backed securities | $ | 452,686 | $ | - | $ | 452,686 | $ | - | |||||||||
Obligations of states and political subdivisions | 470,397 | - | 470,397 | - | |||||||||||||
Corporate bonds | 602,040 | - | 602,040 | - | |||||||||||||
Common stocks | - | - | - | - | |||||||||||||
Other | 50,210 | - | 50,210 | - | |||||||||||||
Total | $ | 1,575,333 | $ | - | $ | 1,575,333 | $ | - | |||||||||
Fair Value Measurements as | |||||||||||||||||
of December 28, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Mortgage-backed securities | $ | 437,330 | $ | - | $ | 437,330 | $ | - | |||||||||
Obligations of states and political subdivisions | 647,354 | - | 647,354 | - | |||||||||||||
Corporate bonds | 457,148 | - | 457,148 | - | |||||||||||||
Common stocks | 29,854 | 29,854 | - | - | |||||||||||||
Other | 80,282 | - | 80,282 | - | |||||||||||||
Total | $ | 1,651,968 | $ | 29,854 | $ | 1,622,114 | $ | - | |||||||||
Marketable Securities Classified as Available-For-Sale Securities | Marketable securities classified as available-for-sale securities are summarized below: | ||||||||||||||||
Available-For-Sale Securities as | |||||||||||||||||
of December 27, 2014 | |||||||||||||||||
Gross | Estimated Fair | ||||||||||||||||
Gross | Unrealized | Gross Unrealized | Value (Net Carrying | ||||||||||||||
Amortized Cost | Unrealized Gains | Losses-OTTI (1) | Losses- Other (2) | Amount) | |||||||||||||
Mortgage-backed securities | $ | 460,185 | $ | 599 | $ | -4,585 | $ | -3,513 | $ | 452,686 | |||||||
Obligations of states and political subdivisions | 476,036 | 682 | -5,521 | -800 | 470,397 | ||||||||||||
U.S. corporate bonds | 608,320 | 690 | -2,914 | -4,056 | 602,040 | ||||||||||||
Common stocks | - | - | - | - | - | ||||||||||||
Other | 50,223 | 49 | -11 | -51 | 50,210 | ||||||||||||
Total | $ | 1,594,764 | $ | 2,020 | $ | -13,031 | $ | -8,420 | $ | 1,575,333 | |||||||
Available-For-Sale Securities as | |||||||||||||||||
of December 28, 2013 | |||||||||||||||||
Estimated Fair | |||||||||||||||||
Gross | Gross Unrealized | Gross Unrealized | Value (Net Carrying | ||||||||||||||
Amortized Cost | Unrealized Gains | Losses-OTTI (1) | Losses- Other (2) | Amount) | |||||||||||||
Mortgage-backed securities | $ | 461,054 | $ | 2,692 | $ | -22,614 | $ | -3,802 | $ | 437,330 | |||||||
Obligations of states and political subdivisions | 673,529 | 1,601 | -27,509 | -267 | 647,354 | ||||||||||||
U.S. corporate bonds | 463,437 | 1,050 | -7,031 | -308 | 457,148 | ||||||||||||
Common stocks | 24,540 | 5,413 | -99 | - | 29,854 | ||||||||||||
Other | 78,059 | 2,326 | -103 | - | 80,282 | ||||||||||||
Total | $ | 1,700,619 | $ | 13,082 | $ | -57,356 | $ | -4,377 | $ | 1,651,968 | |||||||
(1) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. | |||||||||||||||||
(2) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired. | |||||||||||||||||
Schedule of Available-for-sale-securities Unrealized Loss on Investments | The following table displays additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position as of December 27, 2014. There was an immaterial amount of unrealized losses related to securities that had been in a continuous unrealized loss position for 12 months or longer as of December 28, 2013. | ||||||||||||||||
As of December 27, 2014 | |||||||||||||||||
Less than 12 Consecutive Months | 12 Consecutive Months or Longer | ||||||||||||||||
Gross Unrealized | Gross Unrealized | ||||||||||||||||
Losses | Fair Value | Losses | Fair Value | ||||||||||||||
Mortgage-backed securities | $ | -2,164 | $ | 210,413 | $ | -5,934 | $ | 184,955 | |||||||||
Obligations of states and political subdivisions | -800 | 92,306 | -5,521 | 249,676 | |||||||||||||
Corporate bonds | -4,026 | 383,631 | -2,944 | 113,700 | |||||||||||||
Common Stocks | - | - | - | - | |||||||||||||
Other | -52 | 18,078 | -10 | 2,194 | |||||||||||||
Total | $ | -7,042 | $ | 704,428 | $ | -14,409 | $ | 550,525 | |||||||||
Amortized Cost and Estimated Fair Value of Marketable Securities, by Contractual Maturity | The amortized cost and estimated fair value of marketable securities at December 27, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. | ||||||||||||||||
Estimated | |||||||||||||||||
Cost | Fair Value | ||||||||||||||||
Due in one year or less (2015) | $ | 167,737 | $ | 167,994 | |||||||||||||
Due after one year through five years (2016-2020) | 719,435 | 715,031 | |||||||||||||||
Due after five years through ten years (2021-2025) | 271,201 | 266,004 | |||||||||||||||
Due after ten years (2026 and thereafter) | 436,391 | 426,304 | |||||||||||||||
$ | 1,594,764 | $ | 1,575,333 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 27, 2014 | |||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments are as follows: | ||||
Year | Amount | ||||
2015 | 16,422 | ||||
2016 | 13,781 | ||||
2017 | 10,469 | ||||
2018 | 8,693 | ||||
2019 | 7,098 | ||||
Thereafter | 14,840 | ||||
Total | 71,303 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The Company’s income tax provision (benefit) consists of the following: | ||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Federal: | |||||||||||
Current | $ | -18,665 | $ | -11,907 | $ | 83,185 | |||||
Deferred | 58,164 | 1,913 | -22,988 | ||||||||
39,499 | -9,994 | 60,197 | |||||||||
State: | |||||||||||
Current | 5,575 | 2,584 | 8,532 | ||||||||
Deferred | 4,368 | -408 | -5,327 | ||||||||
9,943 | 2,176 | 3,205 | |||||||||
Foreign: | |||||||||||
Current | 287,197 | 37,094 | 22,296 | ||||||||
Deferred | 22,895 | 11,870 | -3,573 | ||||||||
310,092 | 48,964 | 18,723 | |||||||||
Total | $ | 359,534 | $ | 41,146 | $ | 82,125 | |||||
Schedule of Effective Income Tax Rate Reconciliation | The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows: | ||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Federal income tax expense at U.S. statutory rate | $ | 253,260 | $ | 229,420 | $ | 218,585 | |||||
State income tax expense, net of federal tax effect | 6,463 | 1,414 | 2,083 | ||||||||
Foreign tax rate differential | -154,338 | -121,279 | -141,456 | ||||||||
Taiwan tax holiday benefit | -3,147 | -4,944 | -6,418 | ||||||||
Other foreign taxes less incentives and credits | 5,947 | -2,032 | -6,214 | ||||||||
Withholding Tax | 21,039 | 7,073 | 3,927 | ||||||||
Intercompany Restructuring | 307,635 | - | - | ||||||||
Net change in uncertain tax positions | -67,231 | -50,700 | 19,850 | ||||||||
U.S. federal domestic production activities deduction | -3,606 | -3,550 | -6,276 | ||||||||
U.S. federal research and development credit | -8,373 | -14,876 | - | ||||||||
Other, net | 1,885 | 620 | -1,956 | ||||||||
Income tax expense | $ | 359,534 | $ | 41,146 | $ | 82,125 | |||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: | ||||||||||
December 27, | December 28, | ||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Product warranty accruals | $ | 3,560 | $ | 3,000 | |||||||
Allowance for doubtful accounts | 9,111 | 11,394 | |||||||||
Inventory reserves | 8,161 | 5,491 | |||||||||
Sales program allowances | 1,081 | 525 | |||||||||
Other accruals | 11,058 | 8,927 | |||||||||
Stock option compensation | 38,265 | 47,954 | |||||||||
Tax credit carryforwards | 2,726 | 55,435 | |||||||||
Amortization | 21,595 | 23,900 | |||||||||
Deferred revenue | 43,644 | 62,079 | |||||||||
Net operating losses of subsidiaries | 12,456 | 11,561 | |||||||||
Benefit related to uncertain tax positions | 4,246 | 9,904 | |||||||||
Other | 3,485 | 4,064 | |||||||||
Valuation allowance related to loss carryforward and tax credits | -11,358 | -63,361 | |||||||||
148,030 | 180,873 | ||||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | 16,192 | 16,202 | |||||||||
Reserve for sales returns | 419 | 733 | |||||||||
Prepaid expenses | 3,283 | 4,766 | |||||||||
Book basis in excess of tax basis for acquired entities | 2,099 | 2,343 | |||||||||
Unrealized investment loss | 6,384 | 1,429 | |||||||||
Withholding tax | 50,561 | - | |||||||||
Other | 2,448 | - | |||||||||
81,386 | 25,473 | ||||||||||
Net deferred tax assets | $ | 66,644 | $ | 155,400 | |||||||
Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | The total amount of gross unrecognized tax benefits as of December 27, 2014 was $77,495. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for years ended December 27, 2014, December 28, 2013, and December 27, 2012 is as follows: | ||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of year | $ | 133,015 | $ | 182,870 | $ | 156,354 | |||||
Additions based on tax positions related to prior years | 2,889 | 2,668 | 3,263 | ||||||||
Reductions based on tax positions related to prior years | -60,967 | -8,195 | -897 | ||||||||
Additions based on tax positions related to current period | 39,115 | 30,262 | 33,232 | ||||||||
Reductions related to settlements with tax authorities | -401 | -416 | -665 | ||||||||
Expiration of statute of limitations | -36,156 | -74,174 | -8,417 | ||||||||
Balance at end of year | $ | 77,495 | $ | 133,015 | $ | 182,870 | |||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Fair Value, by Balance Sheet Grouping | The carrying amounts and fair values of the Company’s financial instruments are as follows: | |||||||||||||
December 27, 2014 | December 28, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
Cash and cash equivalents | $ | 1,196,268 | $ | 1,196,268 | $ | 1,179,149 | $ | 1,179,149 | ||||||
Restricted cash | 308 | 308 | 249 | 249 | ||||||||||
Marketable securities | 1,575,333 | 1,575,333 | 1,651,968 | 1,651,968 | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 27, 2014 | ||||||||||||||||||||
Revenues, Interest Income and Interest Expense, and Income before Income Taxes for Reportable Segments | Revenues, interest income, and income before income taxes for each of the Company’s reportable segments are presented below: | |||||||||||||||||||
Fiscal Year Ended December 27, 2014 | ||||||||||||||||||||
Auto/ | ||||||||||||||||||||
Aviation | Outdoor | Fitness | Marine | Mobile | Total | |||||||||||||||
Net sales to external customers | $ | 385,915 | $ | 427,555 | $ | 568,440 | $ | 248,371 | $ | 1,240,377 | $ | 2,870,658 | ||||||||
Allocated interest income | 2,689 | 5,282 | 7,739 | 3,841 | 16,033 | 35,584 | ||||||||||||||
Income before income taxes | 107,867 | 152,946 | 196,771 | 30,117 | 236,044 | 723,745 | ||||||||||||||
Fiscal Year Ended December 28, 2013 | ||||||||||||||||||||
Auto/ | ||||||||||||||||||||
Aviation | Outdoor | Fitness | Marine | Mobile | Total | |||||||||||||||
Net sales to external customers | $ | 339,337 | $ | 410,989 | $ | 356,283 | $ | 222,928 | $ | 1,302,314 | $ | 2,631,851 | ||||||||
Allocated interest income | 2,445 | 6,030 | 5,150 | 3,777 | 17,869 | 35,271 | ||||||||||||||
Income before income taxes | 93,083 | 168,549 | 131,411 | 25,993 | 234,522 | 653,558 | ||||||||||||||
Fiscal Year Ended December 29, 2012 | ||||||||||||||||||||
Auto/ | ||||||||||||||||||||
Aviation | Outdoor | Fitness | Marine | Mobile | Total | |||||||||||||||
Net sales to external customers | $ | 291,564 | $ | 401,747 | $ | 321,788 | $ | 208,136 | $ | 1,492,440 | $ | 2,715,675 | ||||||||
Allocated interest income | 1,546 | 3,951 | 3,799 | 2,838 | 22,974 | 35,108 | ||||||||||||||
Income before income taxes | 75,177 | 167,734 | 114,274 | 35,725 | 231,618 | 624,528 | ||||||||||||||
Net Sales, Long-Lived Assets (Property and Equipment), and Net Assets by Geographic Area | Net sales, long-lived assets (property and equipment), and net assets by geographic area are as shown below for the years ended December 27, 2014, December 28, 2013 and December 29, 2012. Note that APAC refers to the Asia Pacific region, and EMEA includes Europe, the Middle East and Africa. | |||||||||||||||||||
Americas | APAC | EMEA | Total | |||||||||||||||||
27-Dec-14 | ||||||||||||||||||||
Net sales to external customers (1) | $ | 1,538,322 | $ | 278,092 | $ | 1,054,244 | $ | 2,870,658 | ||||||||||||
Property and equipment, net | $ | 269,858 | $ | 111,464 | $ | 49,565 | $ | 430,887 | ||||||||||||
Net assets (2) | $ | 2,142,624 | $ | 939,852 | $ | 320,891 | $ | 3,403,367 | ||||||||||||
28-Dec-13 | ||||||||||||||||||||
Net sales to external customers (1) | $ | 1,432,895 | $ | 243,056 | $ | 955,900 | $ | 2,631,851 | ||||||||||||
Property and equipment, net | 239,528 | 121,012 | 54,308 | 414,848 | ||||||||||||||||
Net assets (2) | 1,338,401 | 2,048,903 | 272,402 | 3,659,706 | ||||||||||||||||
29-Dec-12 | ||||||||||||||||||||
Net sales to external customers (1) | $ | 1,513,457 | $ | 256,882 | $ | 945,336 | $ | 2,715,675 | ||||||||||||
Property and equipment, net | 222,310 | 134,257 | 53,184 | 409,751 | ||||||||||||||||
Net assets (2) | 1,262,498 | 2,028,984 | 240,314 | 3,531,796 | ||||||||||||||||
(1) The U.S. is the only country which constitutes greater than 10% of net sales to external customers. | ||||||||||||||||||||
(2) Americas and APAC net assets are primarily held in the United States and Taiwan, respectively. | ||||||||||||||||||||
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 27, 2014 | |||||||||||||
Stock-based Compensation Activity, Stock Options and SARs | A summary of the Company’s stock-based compensation activity and related information under the 2011 Directors Plan, the 2005 Plan and the 2000 Plan for the years ended December 27, 2014, December 28, 2013, and December 29, 2012: | ||||||||||||
Stock Options and SARs | |||||||||||||
Weighted-Average | |||||||||||||
Exercise Price | Number of Shares | ||||||||||||
(In Thousands) | |||||||||||||
Outstanding at December 31, 2011 | $ | 53.14 | 8,073 | ||||||||||
Granted | $ | 42.16 | 61 | ||||||||||
Exercised | $ | 24.2 | -794 | ||||||||||
Forfeited/Expired | $ | 66.45 | -208 | ||||||||||
Outstanding at December 29, 2012 | $ | 55.88 | 7,132 | ||||||||||
Granted | $ | 49.07 | 52 | ||||||||||
Exercised | $ | 26.85 | -662 | ||||||||||
Forfeited/Expired | $ | 66.09 | -283 | ||||||||||
Outstanding at December 28, 2013 | $ | 58.44 | 6,239 | ||||||||||
Granted | $ | 52.44 | 47 | ||||||||||
Exercised | $ | 40.6 | -1,430 | ||||||||||
Forfeited/Expired | $ | 80.49 | -125 | ||||||||||
Outstanding at December 27, 2014 | $ | 63.19 | 4,731 | ||||||||||
Exercisable at December 27, 2014 | $ | 63.73 | 4,580 | ||||||||||
Expected to vest after December 27, 2014 | $ | 47.36 | 125 | ||||||||||
Stock-based Compensation related information, Stock Options and SARs | Stock Options and SARs as of December 27, 2014 | ||||||||||||
Exercise | Awards | Remaining | Awards | ||||||||||
Price | Outstanding | Life (Years) | Exercisable | ||||||||||
(In Thousands) | (In Thousands) | ||||||||||||
$18.00 -$40.00 | 502 | 1.48 | 477 | ||||||||||
$40.01 - $60.00 | 2,108 | 2.9 | 1,982 | ||||||||||
$60.01 - $80.00 | 1,033 | 2.44 | 1,033 | ||||||||||
$80.01 - $100.00 | 3 | 2.95 | 3 | ||||||||||
$100.01 - $120.00 | 1,083 | 2.92 | 1,083 | ||||||||||
$120.01 - $140.00 | 2 | 2.75 | 2 | ||||||||||
4,731 | 2.57 | 4,580 | |||||||||||
Stock-based Compensation Activity, Restricted Stock Units | Restricted Stock Units | ||||||||||||
Weighted-Average | |||||||||||||
Grant Date Fair Value | Number of Shares | ||||||||||||
(In Thousands) | |||||||||||||
Outstanding at December 31, 2011 | $ | 29.4 | 1,478 | ||||||||||
Granted | $ | 39.41 | 506 | ||||||||||
Released/Vested | $ | 41.59 | -435 | ||||||||||
Cancelled | $ | 26.11 | -89 | ||||||||||
Outstanding at December 29, 2012 | $ | 30.06 | 1,460 | ||||||||||
Granted | $ | 45.05 | 425 | ||||||||||
Released/Vested | $ | 28.28 | -579 | ||||||||||
Cancelled | $ | 30.63 | -81 | ||||||||||
Outstanding at December 28, 2013 | $ | 37.36 | 1,225 | ||||||||||
Granted | $ | 48.73 | 432 | ||||||||||
Released/Vested | $ | 36 | -522 | ||||||||||
Cancelled | $ | 37.02 | -47 | ||||||||||
Outstanding at December 27, 2014 | $ | 42.55 | 1,088 | ||||||||||
Weighted-Average Assumptions Used for Fair Value of Options Estimated Using Black-Scholes Option Pricing Model | The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions for 2014, 2013, and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average grant date fair value of options granted | $ | 12.42 | $ | 12.82 | $ | 9.98 | |||||||
Expected volatility | 0.3342 | 0.3746 | 0.3906 | ||||||||||
Dividend yield | 3.57 | % | 3.86 | % | 4.5 | % | |||||||
Expected life of options in years | 6.8 | 6.8 | 6.6 | ||||||||||
Risk-free interest rate | 1.9 | % | 2.1 | % | 1 | % | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share: | ||||||||||
Fiscal Year Ended | |||||||||||
December 27, | December 28, | December 29, | |||||||||
2014 | 2013 | 2012 | |||||||||
Numerator: | |||||||||||
Numerator for basic and diluted net income per share - net income | $ | 364,211 | $ | 612,412 | $ | 542,403 | |||||
Denominator: | |||||||||||
Denominator for basic net income per share – weighted-average common shares | 193,106 | 195,411 | 194,909 | ||||||||
Effect of dilutive securities – employee stock options and stock appreciation rights | 1,059 | 928 | 1,304 | ||||||||
Denominator for diluted net income per share – adjusted weighted-average common shares | 194,165 | 196,339 | 196,213 | ||||||||
Basic net income per share | $ | 1.89 | $ | 3.13 | $ | 2.78 | |||||
Diluted net income per share | $ | 1.88 | $ | 3.12 | $ | 2.76 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Changes in Accumulated Other Comprehensive Income | The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the year ended December 27, 2014: | |||||||||||||
Net unrealized | ||||||||||||||
Gross unrealized | gains(losses) on | |||||||||||||
Foreign Currency | losses on | available-for-sale | ||||||||||||
Translation | available-for-sale | securities- | ||||||||||||
Adjustment | securities-OTTI (1) | Other(2) | Total | |||||||||||
Balance - beginning of period | $ | 85,363 | $ | -57,356 | $ | 10,034 | $ | 38,041 | ||||||
Other comprehensive income before reclassification | -64,489 | 44,325 | -15,172 | -35,336 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | - | - | -134 | -134 | ||||||||||
Net current-period other comprehensive income | -64,489 | 44,325 | -15,306 | -35,470 | ||||||||||
Balance - end of period | $ | 20,874 | $ | -13,031 | $ | -5,272 | $ | 2,571 | ||||||
(1) Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than-temporarily impaired. | ||||||||||||||
(2) Represents the change in unrealized gains/(losses) on investment securities that have not been determined to be other-than-temporarily impaired. | ||||||||||||||
Reclassifications out of AOCI | The following provides required disclosure of reporting reclassifications out of AOCI for the year ended December 27, 2014: | |||||||||||||
Details about Accumulated Other Comprehensive | Amount Reclassified from | Affected Line Item in the Statement | ||||||||||||
Income Components | Accumulated Other | Where Net Income is Presented | ||||||||||||
Comprehensive Income | ||||||||||||||
Unrealized gains (losses) on available-for-sale securities | $ | 505 | Other income (expense) | |||||||||||
-370 | Income tax provision | |||||||||||||
$ | 135 | Net of tax | ||||||||||||
Selected_Quarterly_Information1
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
Quarterly Information | ||||||||||||||
Fiscal Year Ended December 27, 2014 | ||||||||||||||
Quarter Ending | ||||||||||||||
March 29 | June 28 | September 27 | December 27 | |||||||||||
Net sales | $ | 583,221 | $ | 777,848 | $ | 706,283 | $ | 803,306 | ||||||
Gross profit | 330,834 | 444,485 | 398,246 | 430,848 | ||||||||||
Net income | 118,818 | 181,983 | -146,834 | 210,245 | ||||||||||
Basic net income per share | $ | 0.61 | $ | 0.94 | $ | -0.76 | $ | 1.1 | ||||||
Fiscal Year Ended December 28, 2013 | ||||||||||||||
Quarter Ending | ||||||||||||||
March 30 | June 29 | September 28 | December 28 | |||||||||||
Net sales | $ | 531,957 | $ | 696,563 | $ | 643,637 | $ | 759,694 | ||||||
Gross profit | 276,133 | 383,640 | 352,889 | 394,638 | ||||||||||
Net income | 88,666 | 172,491 | 187,669 | 163,586 | ||||||||||
Basic net income per share | $ | 0.45 | $ | 0.88 | $ | 0.96 | $ | 0.84 | ||||||
Subsequent_Events_Tables
Subsequent Events (Tables) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
Subsequent Events [Abstract] | |||||||||||
Schedule of Employee Expenses [Table Text Block] | Other disclosures required by Swiss law: | ||||||||||
2014 | 2013 | 2012 | |||||||||
Personnel expenses (CHF in Thousands) | 596,491 | 559,037 | 521,799 | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Inventories) (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Raw Materials | $161,444 | $131,408 |
Work-in-process | 53,824 | 50,110 |
Finished goods | 244,282 | 229,089 |
Inventory Reserves | -39,075 | -28,381 |
Inventory, net of reserves | $420,475 | $382,226 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Property and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 27, 2014 | |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Manufacturing and engineering equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 39 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Dividends Payable) (Details) (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Dividend Payment 1st [Member] | |||
Dividend Date | 30-Jun-14 | 28-Jun-13 | 29-Jun-12 |
Record Date | 17-Jun-14 | 18-Jun-13 | 15-Jun-12 |
$s per share | $0.48 | $0.45 | $0.45 |
Dividend Payment 2nd [Member] | |||
Dividend Date | 30-Sep-14 | 30-Sep-13 | 28-Sep-12 |
Record Date | 15-Sep-14 | 16-Sep-13 | 14-Sep-12 |
$s per share | $0.48 | $0.45 | $0.45 |
Dividend Payment 3rd [Member] | |||
Dividend Date | 31-Dec-14 | 31-Dec-13 | 31-Dec-12 |
Record Date | 15-Dec-14 | 16-Dec-13 | 14-Dec-12 |
$s per share | $0.48 | $0.45 | $0.45 |
Dividend Payment 4th [Member] | |||
Dividend Date | 31-Mar-15 | 31-Mar-14 | 29-Mar-13 |
Record Date | 16-Mar-15 | 17-Mar-14 | 15-Mar-13 |
$s per share | $0.48 | $0.45 | $0.45 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Change in Carrying Amount of Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Goodwill balance at beginning of year | $179,290 | $176,059 |
Acquisitions | 2,517 | 2,726 |
Finalization of purchase price allocations and effect of foreign currency translation | -3,169 | 505 |
Goodwill balance at end of year | $178,638 | $179,290 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Product Warranty) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |||
Balance - beginning of period | $26,767 | $37,301 | $46,773 | |||
Change in accrual for products sold in prior periods | 0 | [1] | -8,709 | [1] | 0 | [1] |
Accrual for products sold | 44,423 | [2] | 41,309 | [2] | 38,421 | [2] |
Expenditures | -43,581 | -43,134 | -47,893 | |||
Balance - end of period | $27,609 | $26,767 | $37,301 | |||
[1] | Our expected future cost is estimated based upon historical trends in the volume of product returns and the related warranty costs incurred. In 2013 we updated these assumptions and shortened the estimated time horizon in which we settle claims with our retail partners. | |||||
[2] | Minor changes in cost estimates related to pre-existing warranties are aggregated with accruals for new warranty contracts in the baccrual for products soldb line. |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Additional Information) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 06, 2014 | Jun. 07, 2013 | Jun. 01, 2012 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | ||
Significant Accounting Policies [Line Items] | ||||||||
Cumulative translation adjustments | $20,874 | $85,363 | ||||||
Exchange gains/(losses) | -4,299 | 35,538 | -20,022 | |||||
Accounts receivable typical collection days | 80 days | |||||||
Dividend declared, per share | $1.92 | $1.80 | $1.80 | |||||
Dividend Paid, per share | $0.96 | $0.90 | $0.90 | |||||
Dividend Paid | 360,075 | 351,707 | 253,386 | |||||
Retained earnings indefinitely restricted from distribution to stockholders | 290,955 | 265,880 | ||||||
Intangible assets at cost | 191,034 | 183,431 | ||||||
Intangible assets, accumulated amortization | 151,589 | 143,227 | ||||||
Intangible assets, amortization expense | 8,362 | 17,847 | 21,437 | |||||
Intangible assets, estimated amortization expense in year one | 20,038 | |||||||
Intangible assets, estimated amortization expense in year two | 7,481 | |||||||
Intangible assets, estimated amortization expense in year three | 4,799 | |||||||
Intangible assets, estimated amortization expense in year four | 4,122 | |||||||
Intangible assets, estimated amortization expense in year five | 2,811 | |||||||
Available-for-sale securities cumulative unrealized gains/(losses) | -5,272 | [1] | 10,034 | [1] | ||||
Deferred Revenues | 338,728 | 427,920 | ||||||
Total deferred Costs | 87,476 | 98,525 | ||||||
Deferred Revenues net of deferred costs, estimated amount recognized in year one | 152,262 | |||||||
Deferred Revenues net of deferred costs, estimated amount recognized in year two | 71,801 | |||||||
Deferred Revenues net of deferred costs, estimated amount recognized in year three | 27,189 | |||||||
Advertising expenses | 146,633 | 112,905 | 138,757 | |||||
Research and development costs | 395,121 | 364,923 | 325,773 | |||||
Excess purchase cost over fair value of net assets acquired (goodwill) | 178,638 | 179,290 | ||||||
Short Term Interest Free Loan Payable | 173,708 | |||||||
Payments for Advance to Affiliate | $0 | |||||||
Product 1 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Deferred revenue, recognition period | 36 months | |||||||
Aviation | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Product warranty period | 2 years | |||||||
Minimum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Intangible assets, amortization period | 3 years | |||||||
Deferred revenue, recognition period | 1 year | |||||||
Deferred costs, recognition period | 1 year | |||||||
Minimum [Member] | Other products | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Product warranty period | 1 year | |||||||
Minimum [Member] | Top Ten Customers | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Percentage of net sales by customer | 22.00% | |||||||
Maximum [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Intangible assets, amortization period | 10 years | |||||||
Deferred revenue, recognition period | 2 years | |||||||
Deferred costs, recognition period | 2 years | |||||||
Maximum [Member] | Other products | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Product warranty period | 2 years | |||||||
Maximum [Member] | Top Ten Customers | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Percentage of net sales by customer | 26.00% | |||||||
Maximum [Member] | Best Buy | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Percentage of net sales by customer | 10.00% | 10.00% | 10.00% | |||||
[1] | Represents the change in unrealized gains/(losses) on investment securities that have not been determined to be other-than-temporarily impaired. |
Marketable_Securities_Availabl
Marketable Securities (Available for Sale Securities Measured at Estimated Fair Value on Recurring Basis) (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | $1,575,333 | $1,651,968 |
Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 452,686 | 437,330 |
Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 470,397 | 647,354 |
Corporate Bond Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 602,040 | 457,148 |
Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 29,854 |
Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 50,210 | 80,282 |
Level 1 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 29,854 |
Level 1 | Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 1 | Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 1 | Corporate Bond Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 1 | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 29,854 |
Level 1 | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 2 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 1,575,333 | 1,622,114 |
Level 2 | Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 452,686 | 437,330 |
Level 2 | Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 470,397 | 647,354 |
Level 2 | Corporate Bond Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 602,040 | 457,148 |
Level 2 | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 2 | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 50,210 | 80,282 |
Level 3 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 3 | Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 3 | Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 3 | Corporate Bond Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 3 | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | 0 | 0 |
Level 3 | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total | $0 | $0 |
Marketable_Securities_Classifi
Marketable Securities (Classified as Available-For-Sale Securities) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $1,594,764 | $1,700,619 | ||
Gross Unrealized Gains | 2,020 | 13,082 | ||
Gross Unrealized Losses-OTTI | -13,031 | [1] | -57,356 | [1] |
Gross Unrealized Losses-Other | -8,420 | [2] | -4,377 | [2] |
Estimated Fair Value (Net Carrying Amount) | 1,575,333 | 1,651,968 | ||
Mortgage-Backed Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 460,185 | 461,054 | ||
Gross Unrealized Gains | 599 | 2,692 | ||
Gross Unrealized Losses-OTTI | -4,585 | [1] | -22,614 | [1] |
Gross Unrealized Losses-Other | -3,513 | [2] | -3,802 | [2] |
Estimated Fair Value (Net Carrying Amount) | 452,686 | 437,330 | ||
Obligations of states and political subdivisions | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 476,036 | 673,529 | ||
Gross Unrealized Gains | 682 | 1,601 | ||
Gross Unrealized Losses-OTTI | -5,521 | [1] | -27,509 | [1] |
Gross Unrealized Losses-Other | -800 | [2] | -267 | [2] |
Estimated Fair Value (Net Carrying Amount) | 470,397 | 647,354 | ||
U.S. corporate bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 608,320 | 463,437 | ||
Gross Unrealized Gains | 690 | 1,050 | ||
Gross Unrealized Losses-OTTI | -2,914 | [1] | -7,031 | [1] |
Gross Unrealized Losses-Other | -4,056 | [2] | -308 | [2] |
Estimated Fair Value (Net Carrying Amount) | 602,040 | 457,148 | ||
Common Stock | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 0 | 24,540 | ||
Gross Unrealized Gains | 0 | 5,413 | ||
Gross Unrealized Losses-OTTI | 0 | [1] | -99 | [1] |
Gross Unrealized Losses-Other | 0 | [2] | 0 | [2] |
Estimated Fair Value (Net Carrying Amount) | 0 | 29,854 | ||
Other | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 50,223 | 78,059 | ||
Gross Unrealized Gains | 49 | 2,326 | ||
Gross Unrealized Losses-OTTI | -11 | [1] | -103 | [1] |
Gross Unrealized Losses-Other | -51 | [2] | 0 | [2] |
Estimated Fair Value (Net Carrying Amount) | $50,210 | $80,282 | ||
[1] | Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. | |||
[2] | Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired. |
Marketable_Securities_Schedule
Marketable Securities (Schedule of Available-for-sale-securities Unrealized Loss on Investments) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 27, 2014 |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | ($7,042) |
Gross Unrealized Losses 12 Consecutive Months or Longer | -14,409 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 704,428 |
Fair Value 12 Consecutive Months or Longer | 550,525 |
Mortgage Backed Securities [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -2,164 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -5,934 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 210,413 |
Fair Value 12 Consecutive Months or Longer | 184,955 |
U S States And Political Subdivisions [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -800 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -5,521 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 92,306 |
Fair Value 12 Consecutive Months or Longer | 249,676 |
Corporate Debt Securities [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -4,026 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -2,944 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 383,631 |
Fair Value 12 Consecutive Months or Longer | 113,700 |
Common Stock [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | 0 |
Gross Unrealized Losses 12 Consecutive Months or Longer | 0 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 0 |
Fair Value 12 Consecutive Months or Longer | 0 |
Other Debt Securities [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -52 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -10 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 18,078 |
Fair Value 12 Consecutive Months or Longer | $2,194 |
Marketable_Securities_Amortize
Marketable Securities (Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity) (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Cost | ||
Due in one year or less (2015) | $167,737 | |
Due after one year through five years (2016-2020) | 719,435 | |
Due after five years through ten years (2021-2025) | 271,201 | |
Due after ten years (2026 and thereafter) | 436,391 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total | 1,594,764 | |
Estimated Fair Value | ||
Due in one year or less (2015) | 167,994 | |
Due after one year through five years (2016-2020) | 715,031 | |
Due after five years through ten years (2021-2025) | 266,004 | |
Due after ten years (2026 and thereafter) | 426,304 | |
Estimated Fair Value (Net Carrying Amount) | $1,575,333 | $1,651,968 |
Marketable_Securities_Addition
Marketable Securities (Additional Information) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | ||
Available-for-sale Securities, Gross Unrealized Loss, Total | $8,420 | $4,377 | ||
Change In Treasury Bond Yield Description | The decline was due to increases in the 10 Year Treasury Bond Yield during 2013, which caused market valuations of securities in our investment portfolios to decline. | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 1,254,953 | 1,153,765 | ||
Available For Sale Securities Continuous Unrealized Loss Position Amortization Cost | 1,276,404 | 1,215,498 | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Other, Default Rate | 59.00% | |||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $13,031 | [1] | $57,356 | [1] |
[1] | Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Future Minimum Lease Payments) (Details) (USD $) | Dec. 27, 2014 |
In Thousands, unless otherwise specified | |
2015 | $16,422 |
2016 | 13,781 |
2017 | 10,469 |
2018 | 8,693 |
2019 | 7,098 |
Thereafter | 14,840 |
Total | $71,303 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Additional Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Rental expense | $19,559 | $18,721 | $17,470 |
Restricted cash balances | 308 | 249 | |
Commitments to make purchases, time period | 5 years | ||
Purchase Commitment, Remaining Minimum Amount Committed | $268,075 | ||
Number Of Installments For Short Term Loan Payable | 4 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans (Additional Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Employee Benefits Disclosure [Line Items] | |||
Pension Expense | $29,267 | $26,839 | $22,159 |
Defined Contribution Retirement Plan [Member] | |||
Employee Benefits Disclosure [Line Items] | |||
Defined contribution plan, employees contribute percentage | 50.00% | ||
Employee Defined Contribution Plans [Member] | |||
Employee Benefits Disclosure [Line Items] | |||
Defined contribution plan, employees contribute percentage | 7.50% |
Income_Taxes_Income_Tax_Provis
Income Taxes (Income Tax Provision Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Federal: | |||
Current | ($18,665) | ($11,907) | $83,185 |
Deferred | 58,164 | 1,913 | -22,988 |
Federal Income Tax Expense (Benefit), Continuing Operations, Total | 39,499 | -9,994 | 60,197 |
State: | |||
Current | 5,575 | 2,584 | 8,532 |
Deferred | 4,368 | -408 | -5,327 |
State and Local Income Tax Expense (Benefit), Continuing Operations, Total | 9,943 | 2,176 | 3,205 |
Foreign: | |||
Current | 287,197 | 37,094 | 22,296 |
Deferred | 22,895 | 11,870 | -3,573 |
Foreign Income Tax Expense (Benefit), Continuing Operations, Total | 310,092 | 48,964 | 18,723 |
Total | $359,534 | $41,146 | $82,125 |
Income_Taxes_Sources_and_Tax_E
Income Taxes (Sources and Tax Effects of Differences of Income Tax Provision from Amount Computed by Applying Statutory Federal Income Tax Rate to Income Before Taxes, Including Impact of Establishing Tax Contingency Accruals) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Federal income tax expense at U.S. statutory rate | $253,260 | $229,420 | $218,585 |
State income tax expense, net of federal tax effect | 6,463 | 1,414 | 2,083 |
Foreign tax rate differential | -154,338 | -121,279 | -141,456 |
Taiwan tax holiday benefit | -3,147 | -4,944 | -6,418 |
Other foreign taxes less incentives and credits | 5,947 | -2,032 | -6,214 |
Withholding Tax | 21,039 | 7,073 | 3,927 |
Intercompany Restructuring | 307,635 | 0 | 0 |
Net change in uncertain tax positions | -67,231 | -50,700 | 19,850 |
U.S. federal domestic production activities deduction | -3,606 | -3,550 | -6,276 |
U.S. federal research and development credit | -8,373 | -14,876 | 0 |
Other, net | 1,885 | 620 | -1,956 |
Income tax expense | $359,534 | $41,146 | $82,125 |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Product warranty accruals | $3,560 | $3,000 |
Allowance for doubtful accounts | 9,111 | 11,394 |
Inventory reserves | 8,161 | 5,491 |
Sales program allowances | 1,081 | 525 |
Other accruals | 11,058 | 8,927 |
Stock option compensation | 38,265 | 47,954 |
Tax credit carryforwards | 2,726 | 55,435 |
Amortization | 21,595 | 23,900 |
Deferred revenue | 43,644 | 62,079 |
Net operating losses of subsidiaries | 12,456 | 11,561 |
Benefit related to uncertain tax positions | 4,246 | 9,904 |
Other | 3,485 | 4,064 |
Valuation allowance related to loss carryforward and tax credits | -11,358 | -63,361 |
Deferred Tax Assets, Net of Valuation Allowance, Total | 148,030 | 180,873 |
Deferred tax liabilities: | ||
Depreciation | 16,192 | 16,202 |
Reserve for sales returns | 419 | 733 |
Prepaid expenses | 3,283 | 4,766 |
Book basis in excess of tax basis for acquired entities | 2,099 | 2,343 |
Unrealized investment loss | 6,384 | 1,429 |
Withholding tax | 50,561 | 0 |
Other | 2,448 | 0 |
Deferred Tax Liabilities, Net, Total | 81,386 | 25,473 |
Net deferred tax assets | $66,644 | $155,400 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Balance at beginning of year | $133,015 | $182,870 | $156,354 |
Additions based on tax positions related to prior years | 2,889 | 2,668 | 3,263 |
Reductions based on tax positions related to prior years | -60,967 | -8,195 | -897 |
Additions based on tax positions related to current period | 39,115 | 30,262 | 33,232 |
Reductions related to settlements with tax authorities | -401 | -416 | -665 |
Expiration of statute of limitations | -36,156 | -74,174 | -8,417 |
Balance at end of year | $77,495 | $133,015 | $182,870 |
Income_Taxes_Additional_Inform
Income Taxes (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Sep. 27, 2014 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 25, 2010 | Jun. 27, 2015 | |
Income Tax Contingency [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Amount | $307,635,000 | $0 | $0 | ||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | 78,137 | ||||||
Impact on amount related to tax at the statutory rate, if the Company reconciled taxes at the Swiss statutory tax rate to the reported income tax | 197,000,000 | 178,000,000 | 170,000,000 | ||||
Income tax at statutory income tax rate | 253,260,000 | 229,420,000 | 218,585,000 | ||||
Foreign tax rate differential | 154,338,000 | 121,279,000 | 141,456,000 | ||||
Income before income taxes | 723,745,000 | 653,558,000 | 624,528,000 | ||||
Deferred tax asset | 29,615,000 | ||||||
Tax credit carryover | 2,726,000 | 55,435,000 | |||||
Deferred tax assets related to future tax benefit on net operating loss carryforward | 12,456,000 | ||||||
Net operating loss (NOL) carryforwards | 87,388,000 | ||||||
Unrecognized Tax Benefits | 77,495,000 | 133,015,000 | 182,870,000 | 156,354,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2,159,000 | 5,111,000 | 8,222,000 | ||||
Unrecognized Tax Benefits, Period Increase (Decrease) | -2,953,000 | -3,111,000 | -4,705,000 | ||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | -36,156,000 | -74,174,000 | -8,417,000 | ||||
Income Taxes, Unremitted earnings | 20,606,000 | 307,990,000 | 252,452,000 | ||||
Subsequent Event [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Accrued Income Taxes | 185,000 | ||||||
Minimum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 5,000,000 | ||||||
Maximum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 10,000,000 | ||||||
SWITZERLAND [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutory income tax rate | 7.83% | 7.83% | 7.83% | ||||
Income tax at statutory income tax rate | 57,000,000 | 51,000,000 | 49,000,000 | ||||
Foreign tax rate differential | 44,000,000 | 64,000,000 | 31,000,000 | ||||
Net operating loss (NOL) carryforwards | 59,697,000 | ||||||
Net operating loss (NOL) carryforwards, expiration date | 2020 | ||||||
SPAIN [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss (NOL) carryforwards | 8,125,000 | ||||||
SPAIN [Member] | Minimum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss (NOL) carryforwards, expiration date | 2022 | ||||||
SPAIN [Member] | Maximum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss (NOL) carryforwards, expiration date | 2027 | ||||||
Other Major Jurisdiction [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss (NOL) carryforwards | 6,309,000 | ||||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 83,006,000 | 74,217,000 | 9,027,000 | ||||
NETHERLANDS [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss (NOL) carryforwards | 11,958,000 | ||||||
NETHERLANDS [Member] | Minimum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss (NOL) carryforwards, expiration date | 2014 | ||||||
NETHERLANDS [Member] | Maximum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss (NOL) carryforwards, expiration date | 2022 | ||||||
FINLAND [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss (NOL) carryforwards | 1,299,000 | ||||||
Net operating loss (NOL) carryforwards, expiration date | 2024 | ||||||
Outside United States [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Income before income taxes | 546,790,000 | 502,423,000 | 495,908,000 | ||||
TAIWAN, PROVINCE OF CHINA [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Tax holiday benefits per weighted-average common share outstanding | $0.02 | $0.03 | $0.03 | ||||
Tax holidays, expiration date | 2017 | ||||||
TAIWAN, PROVINCE OF CHINA [Member] | Surtax Credit [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Tax credit carryover | $52,618,000 | $52,618,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Carrying Amounts and Fair Values of Financial Instruments) (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $1,575,333 | $1,651,968 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,196,268 | 1,179,149 |
Restricted cash | 308 | 249 |
Marketable securities | 1,575,333 | 1,651,968 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,196,268 | 1,179,149 |
Restricted cash | 308 | 249 |
Marketable securities | $1,575,333 | $1,651,968 |
Segment_Information_Net_Sales_
Segment Information (Net Sales Operating Income and Income Before Taxes for Reportable Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales to external customers | $803,306 | $706,283 | $777,848 | $583,221 | $759,694 | $643,637 | $696,563 | $531,957 | $2,870,658 | [1] | $2,631,851 | [1] | $2,715,675 | [1] |
Allocated interest income | 35,584 | 35,271 | 35,108 | |||||||||||
Income before income taxes | 723,745 | 653,558 | 624,528 | |||||||||||
Aviation | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales to external customers | 385,915 | 339,337 | 291,564 | |||||||||||
Allocated interest income | 2,689 | 2,445 | 1,546 | |||||||||||
Income before income taxes | 107,867 | 93,083 | 75,177 | |||||||||||
Outdoor | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales to external customers | 427,555 | 410,989 | 401,747 | |||||||||||
Allocated interest income | 5,282 | 6,030 | 3,951 | |||||||||||
Income before income taxes | 152,946 | 168,549 | 167,734 | |||||||||||
Fitness | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales to external customers | 568,440 | 356,283 | 321,788 | |||||||||||
Allocated interest income | 7,739 | 5,150 | 3,799 | |||||||||||
Income before income taxes | 196,771 | 131,411 | 114,274 | |||||||||||
Marine | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales to external customers | 248,371 | 222,928 | 208,136 | |||||||||||
Allocated interest income | 3,841 | 3,777 | 2,838 | |||||||||||
Income before income taxes | 30,117 | 25,993 | 35,725 | |||||||||||
Auto/Mobile | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales to external customers | 1,240,377 | 1,302,314 | 1,492,440 | |||||||||||
Allocated interest income | 16,033 | 17,869 | 22,974 | |||||||||||
Income before income taxes | $236,044 | $234,522 | $231,618 | |||||||||||
[1] | The U.S. is the only country which constitutes greater than 10% of net sales to external customers. |
Segment_Information_Net_Sales_1
Segment Information (Net Sales and Property and Equipment Net by Geographic Area) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales to external customers | $803,306 | $706,283 | $777,848 | $583,221 | $759,694 | $643,637 | $696,563 | $531,957 | $2,870,658 | [1] | $2,631,851 | [1] | $2,715,675 | [1] | ||
Property and equipment, net | 430,887 | 414,848 | 430,887 | 414,848 | 409,751 | |||||||||||
Net assets | 3,403,367 | [2] | 3,659,706 | [2] | 3,403,367 | [2] | 3,659,706 | [2] | 3,531,796 | [2] | ||||||
Americas | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales to external customers | 1,538,322 | [1] | 1,432,895 | [1] | 1,513,457 | [1] | ||||||||||
Property and equipment, net | 269,858 | 239,528 | 269,858 | 239,528 | 222,310 | |||||||||||
Net assets | 2,142,624 | [2] | 1,338,401 | [2] | 2,142,624 | [2] | 1,338,401 | [2] | 1,262,498 | [2] | ||||||
Asia Pacific | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales to external customers | 278,092 | [1] | 243,056 | [1] | 256,882 | [1] | ||||||||||
Property and equipment, net | 111,464 | 121,012 | 111,464 | 121,012 | 134,257 | |||||||||||
Net assets | 939,852 | [2] | 2,048,903 | [2] | 939,852 | [2] | 2,048,903 | [2] | 2,028,984 | [2] | ||||||
Europe, Middle East and Africa | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales to external customers | 1,054,244 | [1] | 955,900 | [1] | 945,336 | [1] | ||||||||||
Property and equipment, net | 49,565 | 54,308 | 49,565 | 54,308 | 53,184 | |||||||||||
Net assets | $320,891 | [2] | $272,402 | [2] | $320,891 | [2] | $272,402 | [2] | $240,314 | [2] | ||||||
[1] | The U.S. is the only country which constitutes greater than 10% of net sales to external customers. | |||||||||||||||
[2] | Americas and APAC net assets are primarily held in the United States and Taiwan, respectively. |
Stock_Compensation_Plans_Stock
Stock Compensation Plans (Stock-Based Compensation Activity Stock Options and SARs) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Weighted-Average Exercise Price | |||
Outstanding beginning balance | $58.44 | $55.88 | $53.14 |
Granted | $52.44 | $49.07 | $42.16 |
Exercised | $40.60 | $26.85 | $24.20 |
Forfeited/Expired | $80.49 | $66.09 | $66.45 |
Outstanding ending balance | $63.19 | $58.44 | $55.88 |
Exercisable at December 27, 2014 | $63.73 | ||
Expected to vest after December 27, 2014 | $47.36 | ||
Number of Shares | |||
Outstanding beginning balance | 6,239 | 7,132 | 8,073 |
Granted | 47 | 52 | 61 |
Exercised | -1,430 | -662 | -794 |
Forfeited/Expired | -125 | -283 | -208 |
Outstanding ending balance | 4,731 | 6,239 | 7,132 |
Exercisable at December 27, 2014 | 4,580 | ||
Expected to vest after December 27, 2014 | 125 |
Stock_Compensation_Plans_Stock1
Stock Compensation Plans (Stock-Based Compensation Related Information Stock Options and SARs) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Awards Outstanding | 4,731 |
Remaining Life (Years) | 2 years 6 months 25 days |
Awards Exercisable | 4,580 |
Range 1 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower range | 18 |
Exercise Price, Upper range | 40 |
Awards Outstanding | 502 |
Remaining Life (Years) | 1 year 5 months 23 days |
Awards Exercisable | 477 |
Range 2 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower range | 40.01 |
Exercise Price, Upper range | 60 |
Awards Outstanding | 2,108 |
Remaining Life (Years) | 2 years 10 months 24 days |
Awards Exercisable | 1,982 |
Range 3 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower range | 60.01 |
Exercise Price, Upper range | 80 |
Awards Outstanding | 1,033 |
Remaining Life (Years) | 2 years 5 months 8 days |
Awards Exercisable | 1,033 |
Range 4 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower range | 80.01 |
Exercise Price, Upper range | 100 |
Awards Outstanding | 3 |
Remaining Life (Years) | 2 years 11 months 12 days |
Awards Exercisable | 3 |
Range 5 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower range | 100.01 |
Exercise Price, Upper range | 120 |
Awards Outstanding | 1,083 |
Remaining Life (Years) | 2 years 11 months 1 day |
Awards Exercisable | 1,083 |
Range 6 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Lower range | 120.01 |
Exercise Price, Upper range | 140 |
Awards Outstanding | 2 |
Remaining Life (Years) | 2 years 9 months |
Awards Exercisable | 2 |
Stock_Compensation_Plans_Stock2
Stock Compensation Plans (Stock-Based Compensation Activity Restricted Stock Units) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $37.36 | $30.06 | $29.40 |
Granted | $48.73 | $45.05 | $39.41 |
Released/Vested | $36 | $28.28 | $41.59 |
Cancelled | $37.02 | $30.63 | $26.11 |
Ending Balance | $42.55 | $37.36 | $30.06 |
Number of Shares | |||
Beginning Balance | 1,225 | 1,460 | 1,478 |
Granted | 432 | 425 | 506 |
Released/Vested | -522 | -579 | -435 |
Cancelled | -47 | -81 | -89 |
Ending Balance | 1,088 | 1,225 | 1,460 |
Stock_Compensation_Plans_Weigh
Stock Compensation Plans (Weighted-Average Assumptions Used for Fair Value of Options Estimated Using Black-Scholes Option Pricing Model) (Details) (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Weighted average grant date fair value of options granted | $12.42 | $12.82 | $9.98 |
Expected volatility | 0.33% | 0.37% | 0.39% |
Dividend yield | 3.57% | 3.86% | 4.50% |
Expected life of options in years | 6 years 9 months 18 days | 6 years 9 months 18 days | 6 years 7 months 6 days |
Risk-free interest rate | 1.90% | 2.10% | 1.00% |
Stock_Compensation_Plans_Addit
Stock Compensation Plans (Additional Information) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | 31-May-10 | Dec. 25, 2010 | Dec. 26, 2009 | Oct. 31, 2000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, award granted | 432,000 | 425,000 | 506,000 | ||||
Stock-based compensation, options granted | 47,000 | 52,000 | 61,000 | ||||
Stock-based compensation, additional common shares authorized | 13,000,000 | ||||||
Stock-based compensation, stock options and SARs outstanding weighted average remaining contractual life (in years) | 2 years 6 months 25 days | ||||||
Stock-based compensation, stock options and SARs exercisable weighted average remaining contractual life (in years) | 2 years 5 months 1 day | ||||||
Stock-based compensation, restricted stock units weighted average remaining contractual life (in years) | 1 year 6 months 14 days | ||||||
Stock-based compensation, total fair value of awards vested | $19,127 | $20,956 | $32,612 | ||||
Stock-based compensation, stock options and SARs outstanding aggregate intrinsic values | 21,592 | ||||||
Stock-based compensation, stock options and SARs exercisable aggregate intrinsic values | 20,542 | ||||||
Stock-based compensation, stock options and SARs exercised aggregate intrinsic values | 18,885 | 13,114 | 12,548 | ||||
Stock-based compensation, RSUs outstanding aggregate intrinsic values | 58,521 | ||||||
Stock-based compensation, RSUs released aggregate intrinsic values | 28,119 | 27,007 | 17,390 | ||||
Closing stock price | $53.81 | ||||||
Total unrecognized compensation cost related to unvested share-based compensation awards | 44,654 | ||||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, additional common shares authorized | 2,000,000 | ||||||
Stock-based compensation, shares of common stock reserved for the ESPP | 4,000,000 | ||||||
Stock-based compensation, discount on fair market value of the stock on the date of purchase at which price shares offered to employee under ESPP | 85.00% | ||||||
Stock-based compensation, discount on fair market value of the stock on the enrollment date at which price shares offered to employee under ESPP | 85.00% | ||||||
Stock-based compensation, shares purchased | 349,982 | 395,220 | 326,483 | ||||
Stock-based compensation, value of shares purchased | $14,634 | $12,181 | $10,629 | ||||
Stock-based compensation, shares available for future issuance | 489,381 | ||||||
Directors Equity Incentive Plan Twenty Eleven | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, maximum number of common shares authorized | 122,592 | ||||||
Directors Equity Incentive Plan Twenty Eleven | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, award expiration terms | 10 years | ||||||
Directors Equity Incentive Plan Twenty Eleven | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, award vesting Period | 2 years | ||||||
Directors Equity Incentive Plan Twenty Eleven | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, award granted | 7,120 | 11,484 | 9,616 | ||||
2005 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, maximum number of common shares authorized | 10,000,000 | ||||||
Stock-based compensation, award expiration terms | 10 years | ||||||
Stock-based compensation, award vesting Period | 5 years | ||||||
Stock-based compensation, award granted | 47,095 | 52,673 | |||||
Stock-based compensation, options granted | 61,235 | ||||||
Stock-based compensation, additional common shares authorized | 3,000,000 | ||||||
2005 Stock Incentive Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, award expiration terms | 10 years | ||||||
Stock-based compensation, award vesting Period | 3 years | ||||||
Stock-based compensation, award granted | 425,347 | 413,978 | 495,814 | ||||
Stock Incentive Plan 2000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, maximum number of common shares authorized | 7,000,000 | ||||||
Stock-based compensation, award vesting Period | 5 years | ||||||
Stock Incentive Plan 2000 | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, award expiration terms | 10 years | ||||||
Stock Option Plan 2000 | Non Employee Directors, Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, maximum number of common shares authorized | 250,000 | 100,000 | |||||
Stock-based compensation, options granted | 23,924 | ||||||
Stock-based compensation, additional common shares authorized | 150,000 |
Earnings_Per_Share_Computation
Earnings Per Share (Computation of Basic and Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Numerator: | |||||||||||
Numerator for basic and diluted net income per share - net income | $210,245 | ($146,834) | $181,983 | $118,818 | $163,586 | $187,669 | $172,491 | $88,666 | $364,211 | $612,412 | $542,403 |
Denominator: | |||||||||||
Denominator for basic net income per share - weighted-average common shares | 193,106 | 195,411 | 194,909 | ||||||||
Effect of dilutive securities - employee stock options and stock appreciation rights | 1,059 | 928 | 1,304 | ||||||||
Denominator for diluted net income per share - adjusted weighted-average common shares | 194,165 | 196,339 | 196,213 | ||||||||
Basic net income per share | $1.10 | ($0.76) | $0.94 | $0.61 | $0.84 | $0.96 | $0.88 | $0.45 | $1.89 | $3.13 | $2.78 |
Diluted net income per share | $1.88 | $3.12 | $2.76 |
Earnings_Per_Share_Additional_
Earnings Per Share (Additional Information) (Details) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
Options outstanding but not included in the computation of diluted earnings per share | 2,240,005 | 5,475,000 | 5,640,615 |
Share_Repurchase_Plan_Addition
Share Repurchase Plan (Additional Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Feb. 15, 2013 |
Accelerated Share Repurchases [Line Items] | |||
Share repurchase program, shares repurchased | 4,369,360 | 1,376,500 | |
Share repurchase program, shares repurchased value | $241,578 | $58,422 | |
Stock Repurchase Program, Authorized Amount | $300 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | ||
Foreign Currency Translation Adjustment | |||||
Balance - beginning of period | $85,363 | ||||
Other comprehensive income before reclassification | -64,489 | -43,609 | 52,516 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | ||||
Net current-period other comprehensive income | -64,489 | ||||
Balance - end of period | 20,874 | 85,363 | |||
Gross unrealized losses on available-for-sale securities-OTTI | |||||
Balance - beginning of period | -57,356 | [1] | |||
Other comprehensive income before reclassification | 44,325 | [1] | |||
Amounts reclassified from accumulated other comprehensive income | 0 | [1] | |||
Net current-period other comprehensive income | 44,325 | [1] | |||
Balance - end of period | -13,031 | [1] | -57,356 | [1] | |
Net unrealized gains/(losses) on available-for-sale securities-Other | |||||
Balance - beginning of period | 10,034 | [2] | |||
Other comprehensive income before reclassification | -15,172 | [2] | |||
Amounts reclassified from accumulated other comprehensive income | -134 | [2] | |||
Net current-period other comprehensive income | -15,306 | [2] | |||
Balance - end of period | -5,272 | [2] | 10,034 | [2] | |
Total | |||||
Balance - beginning of period | 38,041 | ||||
Other comprehensive income before reclassification | -35,336 | ||||
Amounts reclassified from accumulated other comprehensive income | -134 | ||||
Net current-period other comprehensive income | -35,470 | ||||
Balance - end of period | $2,571 | $38,041 | |||
[1] | Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than-temporarily impaired. | ||||
[2] | Represents the change in unrealized gains/(losses) on investment securities that have not been determined to be other-than-temporarily impaired. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassifications Out of AOCI) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other income (expense) | $33,119 | $79,526 | $20,368 |
Income tax provision | 359,534 | 41,146 | 82,125 |
Unrealized gains (losses) on available-for-sale securities [Member] | Amount Reclassified from Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other income (expense) | 505 | ||
Income tax provision | -370 | ||
Net of tax | $135 |
Selected_Quarterly_Information2
Selected Quarterly Information (Unaudited) (Quarterly Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |||
Net sales | $803,306 | $706,283 | $777,848 | $583,221 | $759,694 | $643,637 | $696,563 | $531,957 | $2,870,658 | [1] | $2,631,851 | [1] | $2,715,675 | [1] |
Gross profit | 430,848 | 398,246 | 444,485 | 330,834 | 394,638 | 352,889 | 383,640 | 276,133 | 1,604,412 | 1,407,300 | 1,438,480 | |||
Net income | $210,245 | ($146,834) | $181,983 | $118,818 | $163,586 | $187,669 | $172,491 | $88,666 | $364,211 | $612,412 | $542,403 | |||
Basic net income per share | $1.10 | ($0.76) | $0.94 | $0.61 | $0.84 | $0.96 | $0.88 | $0.45 | $1.89 | $3.13 | $2.78 | |||
[1] | The U.S. is the only country which constitutes greater than 10% of net sales to external customers. |
Subsequent_Events_Other_disclo
Subsequent Events -(Other disclosures required by Swiss law) (Details) (CHF) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Personnel expenses | 596,491 | 559,037 | 521,799 |
Subsequent_Events_Additional_I
Subsequent Events (Additional Information) (Details) (USD $) | Feb. 15, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Feb. 13, 2015 |
Subsequent Event [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $300,000 | ||||
Property, Plant and Equipment [Member] | |||||
Subsequent Event [Line Items] | |||||
Fire Insurance Coverage | 500,000,000 | 500,000,000 | 500,000,000 | ||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $300,000,000 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $112,109 | $98,080 | $86,834 |
Additions Charged to Costs and Expenses | 28,899 | 41,924 | 28,545 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | -74,185 | -27,895 | -17,299 |
Balance at End of Period | 66,823 | 112,109 | 98,080 |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 20,367 | 20,582 | 20,291 |
Additions Charged to Costs and Expenses | 66 | 1,553 | 2,947 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | -2,103 | -1,768 | -2,656 |
Balance at End of Period | 18,330 | 20,367 | 20,582 |
Inventory reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 28,381 | 26,105 | 29,370 |
Additions Charged to Costs and Expenses | 25,903 | 20,891 | 11,003 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | -17,149 | -18,615 | -14,268 |
Balance at End of Period | 37,135 | 28,381 | 26,105 |
Deferred tax asset valuation allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 63,361 | 51,393 | 37,173 |
Additions Charged to Costs and Expenses | 2,930 | 19,480 | 14,595 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | -54,933 | -7,512 | -375 |
Balance at End of Period | $11,358 | $63,361 | $51,393 |