Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 28, 2015 | Apr. 27, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | GARMIN LTD | |
Entity Central Index Key | 1121788 | |
Current Fiscal Year End Date | -14 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | GRMN | |
Entity Common Stock, Shares Outstanding | 208,077,418 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,171,388 | $1,196,268 |
Marketable securities | 270,212 | 167,989 |
Accounts receivable, net | 425,650 | 570,191 |
Inventories, net | 470,444 | 420,475 |
Deferred income taxes | 56,165 | 56,102 |
Deferred costs | 48,824 | 51,336 |
Prepaid expenses and other current assets | 57,624 | 48,615 |
Total current assets | 2,500,307 | 2,510,976 |
Property and equipment, net | 436,104 | 430,887 |
Marketable securities | 1,259,102 | 1,407,344 |
Restricted cash | 313 | 308 |
Noncurrent deferred income tax | 66,664 | 67,712 |
Noncurrent deferred costs | 32,142 | 36,140 |
Intangible assets, net | 224,381 | 218,083 |
Other assets | 24,266 | 21,853 |
Total assets | 4,543,279 | 4,693,303 |
Current liabilities: | ||
Accounts payable | 125,745 | 149,094 |
Salaries and benefits payable | 63,775 | 62,764 |
Accrued warranty costs | 23,866 | 27,609 |
Accrued sales program costs | 37,049 | 58,934 |
Deferred revenue | 185,899 | 203,598 |
Accrued royalty costs | 5,811 | 51,889 |
Accrued advertising expense | 17,190 | 26,334 |
Other accrued expenses | 68,998 | 67,780 |
Deferred income taxes | 13,370 | 17,673 |
Income taxes payable | 190,594 | 182,260 |
Dividend payable | 91,964 | 185,326 |
Total current liabilities | 824,261 | 1,033,261 |
Deferred income taxes | 39,448 | 39,497 |
Non-current income taxes | 78,663 | 80,611 |
Non-current deferred revenue | 121,906 | 135,130 |
Other liabilities | 1,371 | 1,437 |
Stockholders' equity: | ||
Shares, CHF 10 par value, 208,077 shares authorized and issued; 191,520 shares outstanding at March 28, 2015 and 191,815 shares outstanding at December 27, 2014 | 1,797,435 | 1,797,435 |
Additional paid-in capital | 80,598 | 73,521 |
Treasury stock | -345,143 | -330,132 |
Retained earnings | 1,928,165 | 1,859,972 |
Accumulated other comprehensive income | 16,575 | 2,571 |
Total stockholders' equity | 3,477,630 | 3,403,367 |
Total liabilities and stockholders' equity | $4,543,279 | $4,693,303 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (CHF) | Mar. 28, 2015 | Dec. 27, 2014 |
Shares, par value | 10 | 10 |
Shares, shares authorized | 208,077 | 208,077 |
Shares, shares issued | 208,077 | 208,077 |
Shares, shares outstanding | 191,520 | 191,815 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Net sales | $585,394 | $583,221 |
Cost of goods sold | 241,272 | 252,387 |
Gross profit | 344,122 | 330,834 |
Advertising expense | 27,672 | 24,428 |
Selling, general and administrative expense | 98,750 | 89,873 |
Research and development expense | 106,002 | 96,164 |
Total operating expense | 232,424 | 210,465 |
Operating income | 111,698 | 120,369 |
Other income (expense): | ||
Interest income | 8,024 | 9,768 |
Foreign currency gains (losses) | -44,264 | 12,814 |
Other | 738 | -484 |
Total other income (expense) | -35,502 | 22,098 |
Income before income taxes | 76,196 | 142,467 |
Income tax provision | 9,403 | 23,649 |
Net income | $66,793 | $118,818 |
Net income per share: | ||
Basic | $0.35 | $0.61 |
Diluted | $0.35 | $0.61 |
Weighted average common shares outstanding: | ||
Basic | 191,762 | 195,090 |
Diluted | 192,341 | 195,860 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Net income | $66,793 | $118,818 |
Foreign currency translation adjustment | 2,755 | -15,518 |
Change in fair value of available-for-sale marketable securities, net of deferred taxes | 11,249 | 12,779 |
Comprehensive income | $80,797 | $116,079 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Operating Activities: | ||
Net income | $66,793 | $118,818 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 12,280 | 11,672 |
Amortization | 6,584 | 6,740 |
Gain (loss) on sale of property and equipment | 24 | -617 |
Provision for doubtful accounts | -1,080 | -189 |
Deferred income taxes | -3,647 | 5,942 |
Unrealized foreign currency loss (gain) | 47,877 | -15,334 |
Provision for obsolete and slow moving inventories | 4,344 | 3,384 |
Stock compensation expense | 7,769 | 6,325 |
Realized (gain) loss on marketable securities | -340 | 1,544 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 129,448 | 137,198 |
Inventories | -56,897 | -64,083 |
Other current and non-current assets | -11,537 | -1,591 |
Accounts payable | -25,957 | -20,411 |
Other current and non-current liabilities | -73,408 | -80,011 |
Deferred revenue | -29,870 | -45,290 |
Deferred cost | 6,470 | 8,129 |
Income taxes payable | 2,802 | -1,053 |
Net cash provided by operating activities | 81,655 | 71,173 |
Investing activities: | ||
Purchases of property and equipment | -18,143 | -15,537 |
Proceeds from sale of property and equipment | 664 | 609 |
Purchase of intangible assets | -717 | -1,111 |
Purchase of marketable securities | -254,741 | -298,695 |
Redemption of marketable securities | 308,751 | 223,786 |
Proceeds from repayment on loan receivable | 0 | 94,507 |
Change in restricted cash | -5 | 3 |
Acquisitions, net of cash acquired | -12,632 | 0 |
Net cash provided by investing activities | 23,177 | 3,562 |
Financing activities: | ||
Dividends paid | -91,964 | -87,853 |
Purchase of treasury stock under share repurchase plan | -16,260 | -32,986 |
Purchase of treasury stock related to equity awards | -89 | -58 |
Proceeds from issuance of treasury stock related to equity awards | 246 | 1,107 |
Tax benefit from issuance of equity awards | 399 | 2,199 |
Net cash used in financing activities | -107,668 | -117,591 |
Effect of exchange rate changes on cash and cash equivalents | -22,044 | 398 |
Net decrease in cash and cash equivalents | -24,880 | -42,458 |
Cash and cash equivalents at beginning of period | 1,196,268 | 1,179,149 |
Cash and cash equivalents at end of period | $1,171,388 | $1,136,691 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Mar. 28, 2015 | ||
Basis of Presentation | 1 | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Additionally, the condensed consolidated financial statements should be read in conjunction with Item 2 of Management's Discussion and Analysis of Financial Condition and Results of Operations, included in this Form 10-Q. Operating results for the 13-week period ended March 28, 2015 are not necessarily indicative of the results that may be expected for the year ending December 26, 2015. | ||
The condensed consolidated balance sheet at December 27, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 27, 2014. | ||
The Company’s fiscal year is based on a 52-53 week period ending on the last Saturday of the calendar year. Therefore the financial results of certain fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated quarters having only 13 weeks. The quarters ended March 28, 2015 and March 29, 2014 both contain operating results for 13 weeks. | ||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Inventories | 2 | Inventories | ||||||
The components of inventories consist of the following: | ||||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 181,894 | $ | 161,444 | ||||
Work-in-process | 60,758 | 53,824 | ||||||
Finished goods | 264,099 | 244,282 | ||||||
Inventory reserves | -36,307 | -39,075 | ||||||
Inventory, net of reserves | $ | 470,444 | $ | 420,475 | ||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Earnings Per Share | 3 | Earnings Per Share | ||||||
The following table sets forth the computation of basic and diluted net income per share: | ||||||||
13-Weeks Ended | ||||||||
March 28, | March 29, | |||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Numerator for basic and diluted net income per share - net income | $ | 66,793 | $ | 118,818 | ||||
Denominator: | ||||||||
Denominator for basic net income per share – weighted-average common shares | 191,762 | 195,090 | ||||||
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units | 579 | 770 | ||||||
Denominator for diluted net income per share – adjusted weighted-average common shares | 192,341 | 195,860 | ||||||
Basic net income per share | $ | 0.35 | $ | 0.61 | ||||
Diluted net income per share | $ | 0.35 | $ | 0.61 | ||||
There were 2,229 and 4,380 anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) outstanding during the 13-week periods ended March 28, 2015 and March 29, 2014, respectively. | ||||||||
There were 37 and 242 shares issued as a result of exercises of equity awards for the 13-week periods ended March 28, 2015 and March 29, 2014, respectively. | ||||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Segment Information | 4 | Segment Information | ||||||||||||||||||
The Company has identified five operating segments – Auto, Aviation, Marine, Outdoor and Fitness. Each operating segment is individually reviewed and evaluated by our Chief Operating Decision Maker, who allocates resources and assesses performance of each segment individually. | ||||||||||||||||||||
Net sales, operating income, and income before taxes for each of the Company’s reportable segments are presented below: | ||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||
Outdoor | Fitness | Marine | Auto | Aviation | Total | |||||||||||||||
13-Weeks Ended March 28, 2015 | ||||||||||||||||||||
Net sales | $ | 75,915 | $ | 130,994 | $ | 64,297 | $ | 216,126 | $ | 98,062 | $ | 585,394 | ||||||||
Operating income | $ | 23,834 | $ | 34,638 | $ | 4,566 | $ | 22,480 | $ | 26,180 | $ | 111,698 | ||||||||
Income (loss) before taxes | $ | 21,777 | $ | 28,349 | $ | 2,711 | $ | -453 | $ | 23,812 | $ | 76,196 | ||||||||
13-Weeks Ended March 29, 2014 | ||||||||||||||||||||
Net sales | $ | 83,985 | $ | 100,288 | $ | 60,002 | $ | 242,952 | $ | 95,994 | $ | 583,221 | ||||||||
Operating income | $ | 23,683 | $ | 33,512 | $ | 3,810 | $ | 30,564 | $ | 28,800 | $ | 120,369 | ||||||||
Income before taxes | $ | 28,103 | $ | 37,522 | $ | 6,645 | $ | 40,148 | $ | 30,049 | $ | 142,467 | ||||||||
Allocation of certain research and development expenses, and selling, general, and administrative expenses are made to each segment on a percent of revenue basis. | ||||||||||||||||||||
Net sales and property and equipment, net by geographic area are as follows as of and for the 13-week periods ended March 28, 2015 and March 29, 2014. Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa: | ||||||||||||||||||||
Americas | APAC | EMEA | Total | |||||||||||||||||
28-Mar-15 | ||||||||||||||||||||
Net sales to external customers | $ | 305,261 | $ | 71,782 | $ | 208,351 | $ | 585,394 | ||||||||||||
Property and equipment, net | $ | 276,605 | $ | 111,544 | $ | 47,955 | $ | 436,104 | ||||||||||||
29-Mar-14 | ||||||||||||||||||||
Net sales to external customers | $ | 304,808 | $ | 57,810 | $ | 220,603 | $ | 583,221 | ||||||||||||
Property and equipment, net | $ | 243,726 | $ | 119,850 | $ | 53,588 | $ | 417,164 | ||||||||||||
Warranty_Reserves
Warranty Reserves | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Warranty Reserves | 5 | Warranty Reserves | ||||||
The Company’s products sold are generally covered by a warranty for periods ranging from one to two years. The Company’s estimate of costs to service its warranty obligations are based on historical experience and expectation of future conditions and are recorded as a liability on the balance sheet. The following reconciliation provides an illustration of changes in the aggregate warranty reserve. | ||||||||
13-Weeks Ended | ||||||||
March 28, | March 29, | |||||||
2015 | 2014 | |||||||
Balance - beginning of the period | $ | 27,609 | $ | 26,767 | ||||
Accrual for products sold | 6,742 | 9,485 | ||||||
Expenditures | -10,485 | -11,236 | ||||||
Balance - end of the period | $ | 23,866 | $ | 25,016 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 28, 2015 | ||
Commitments and Contingencies | 6 | Commitments and Contingencies |
The Company is party to certain commitments, which include purchases of raw materials, advertising expenditures, investments in certain low income housing tax credit projects, and other indirect purchases in connection with conducting our business. Pursuant to these agreements, the Company is contractually committed to make payments of approximately $372,852 over the next five years. Subsequent to March 28, 2015, a portion of a commitment was satisfied with a $43,000 prepayment to a supplier, the majority of which will be classified as a noncurrent asset. | ||
In the normal course of business, the Company and its subsidiaries are parties to various legal claims, investigations and complaints, including matters alleging patent infringement and other intellectual property claims. The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual or disclosure. The assessment regarding whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. | ||
Management of the Company currently does not believe there is at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies individually and in the aggregate, for the fiscal quarter ended March 28, 2015. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. Although management considers the likelihood to be remote, an adverse resolution of one or more of such matters in excess of management’s expectations could have a material adverse effect on the Company’s results of operations in a particular quarter or fiscal year. | ||
The Company settled or resolved certain matters during the fiscal quarter ended March 28, 2015 that did not individually or in the aggregate have a material impact on the Company’s financial condition or results of operations. | ||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2015 | |
Income Taxes | 7. Income Taxes |
The Company’s income tax expense decreased by $14,246, to $9,403 for the 13-week period ended March 28, 2015, from $23,649 for the 13-week period ended March 29, 2014. The effective tax rate was 12.3% in the first quarter of 2015 compared to 16.6% in the first quarter of 2014. Release of uncertain tax position reserves due to expiration of certain statutes of limitations or completion of tax audits reduced our expense by $5,287 and $5,795, respectively, in first quarter 2015 and first quarter 2014. The first quarter 2015 effective tax rate decreased as compared to first quarter 2014 primarily due to the current projected full year income mix for 2015 compared to the same projection at first quarter of 2014. The full year 2014 effective tax rate was subsequently reduced as our income projection increased and income mix by taxing jurisdiction improved throughout 2014. | |
Marketable_Securities
Marketable Securities | 3 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Marketable Securities | 8. 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 the identical asset 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. Valuation is 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. | |||||||||||||||||
The method 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 March 28, 2015 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
U.S. Treasury securities | $ | 27,369 | $ | - | $ | 27,369 | $ | - | |||||||||
Agency securities | 327,160 | - | 327,160 | - | |||||||||||||
Mortgage-backed securities | 380,535 | - | 380,535 | - | |||||||||||||
Corporate securities | 572,211 | - | 572,211 | - | |||||||||||||
Municipal securities | 153,617 | - | 153,617 | - | |||||||||||||
Other | 68,422 | - | 68,422 | - | |||||||||||||
Total | $ | 1,529,314 | $ | - | $ | 1,529,314 | $ | - | |||||||||
Fair Value Measurements as | |||||||||||||||||
of December 27, 2014 (1) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
U.S. Treasury securities | $ | 30,144 | $ | - | $ | 30,144 | $ | - | |||||||||
Agency securities | 428,320 | - | 428,320 | - | |||||||||||||
Mortgage-backed securities | 324,307 | - | 324,307 | - | |||||||||||||
Corporate securities | 594,402 | - | 594,402 | - | |||||||||||||
Municipal securities | 125,410 | - | 125,410 | - | |||||||||||||
Other | 72,750 | - | 72,750 | - | |||||||||||||
Total | $ | 1,575,333 | $ | - | $ | 1,575,333 | $ | - | |||||||||
(1) Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement. | |||||||||||||||||
Marketable securities classified as available-for-sale securities are summarized below: | |||||||||||||||||
Available-For-Sale Securities as | |||||||||||||||||
of March 28, 2015 | |||||||||||||||||
Amortized Cost | Gross Unrealized | Gross | Gross Unrealized | Estimated Fair | |||||||||||||
Gains | Unrealized | Losses-Other (3) | Value (Net | ||||||||||||||
Losses-OTTI (2) | Carrying | ||||||||||||||||
Amount) | |||||||||||||||||
U.S. Treasury securities | $ | 27,185 | $ | 186 | $ | - | $ | -2 | $ | 27,369 | |||||||
Agency securities | 330,109 | 531 | -3,242 | -238 | 327,160 | ||||||||||||
Mortgage-backed securities | 382,676 | 953 | -1,076 | -2,018 | 380,535 | ||||||||||||
Corporate securities | 574,513 | 744 | -1,690 | -1,356 | 572,211 | ||||||||||||
Municipal securities | 153,513 | 515 | -5 | -406 | 153,617 | ||||||||||||
Other | 68,461 | 13 | -14 | -38 | 68,422 | ||||||||||||
Total | $ | 1,536,457 | $ | 2,942 | $ | -6,027 | $ | -4,058 | $ | 1,529,314 | |||||||
Available-For-Sale Securities as | |||||||||||||||||
of December 27, 2014 (1) | |||||||||||||||||
Amortized Cost | Gross Unrealized | Gross | Gross Unrealized | Estimated Fair | |||||||||||||
Gains | Unrealized | Losses-Other (3) | Value (Net | ||||||||||||||
Losses-OTTI (2) | Carrying | ||||||||||||||||
Amount) | |||||||||||||||||
U.S. Treasury securities | $ | 30,185 | $ | 26 | $ | -25 | $ | -42 | $ | 30,144 | |||||||
Agency securities | 436,817 | 169 | -8,259 | -407 | 428,320 | ||||||||||||
Mortgage-backed securities | 329,048 | 580 | -1,813 | -3,508 | 324,307 | ||||||||||||
Corporate securities | 600,674 | 689 | -2,874 | -4,087 | 594,402 | ||||||||||||
Municipal securities | 125,183 | 497 | -48 | -222 | 125,410 | ||||||||||||
Other | 72,857 | 59 | -12 | -154 | 72,750 | ||||||||||||
Total | $ | 1,594,764 | $ | 2,020 | $ | -13,031 | $ | -8,420 | $ | 1,575,333 | |||||||
(1) Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement. | |||||||||||||||||
(2) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. | |||||||||||||||||
(3) 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 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. 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. In 2013, Garmin experienced unrealized, noncredit losses on its investment portfolio resulting in gross other-than-temporary impairment and other unrealized losses on marketable securities. The decrease in estimated fair value was primarily due to market valuations declining on mortgage- and asset-backed securities and government and agency securities. During 2014 and the first quarter of 2015, the Company did not record any material impairment charges on its outstanding securities. | |||||||||||||||||
The amortized cost and estimated fair value of the securities at an unrealized loss position at March 28, 2015 were $962,449 and $952,364, respectively. Approximately 43% of securities in our portfolio were at an unrealized loss position at March 28, 2015. 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 March 28, 2015. | |||||||||||||||||
As of March 28, 2015 | |||||||||||||||||
Less than 12 Consecutive Months | 12 Consecutive Months or Longer | ||||||||||||||||
Gross Unrealized | Fair Value | Gross Unrealized | Fair Value | ||||||||||||||
Losses | Losses | ||||||||||||||||
U.S. Treasury securities | $ | -2 | $ | 4,777 | $ | - | $ | - | |||||||||
Agency securities | $ | -221 | $ | 36,997 | $ | -3,259 | $ | 204,858 | |||||||||
Mortgage-backed securities | $ | -1,476 | $ | 175,026 | $ | -1,618 | $ | 85,274 | |||||||||
Corporate securities | $ | -1,253 | $ | 264,951 | $ | -1,793 | $ | 91,093 | |||||||||
Municipal securities | $ | -382 | $ | 51,639 | $ | -29 | $ | 9,356 | |||||||||
Other | $ | -10 | $ | 14,866 | $ | -42 | $ | 13,527 | |||||||||
Total | $ | -3,344 | $ | 548,256 | $ | -6,741 | $ | 404,108 | |||||||||
The amortized cost and estimated fair value of marketable securities at March 28, 2015, 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 | $ | 269,931 | $ | 270,212 | |||||||||||||
Due after one year through five years | 960,640 | 958,255 | |||||||||||||||
Due after five years through ten years | 213,954 | 210,294 | |||||||||||||||
Due after ten years | 91,932 | 90,553 | |||||||||||||||
$ | 1,536,457 | $ | 1,529,314 | ||||||||||||||
Share_Repurchase_Plan
Share Repurchase Plan | 3 Months Ended |
Mar. 28, 2015 | |
Share Repurchase Plan | 9. Share Repurchase Plan |
On February 13, 2015, the Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $300,000 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. As of March 28, 2015, the Company had repurchased 331 shares using cash of $16,260. There remains approximately $283,740 available to repurchase additional shares under this authorization. | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Accumulated Other Comprehensive Income | 10. Accumulated Other Comprehensive Income | |||||||||||||
The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week period ended March 28, 2015: | ||||||||||||||
13-Weeks Ended March 28, 2015 | ||||||||||||||
Gross unrealized losses on | Net unrealized gains (losses) on | |||||||||||||
Foreign Currency Translation | available-for-sale securities- | available-for-sale securities- | ||||||||||||
Adjustment | OTTI(1) | Other(2) | Total | |||||||||||
Balance - beginning of period | $ | 20,874 | $ | -13,031 | $ | -5,272 | $ | 2,571 | ||||||
Other comprehensive income before reclassification | 2,755 | 7,004 | 4,567 | 14,326 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | - | - | -322 | -322 | ||||||||||
Net current-period other comprehensive income | 2,755 | 7,004 | 4,245 | 14,004 | ||||||||||
Balance - end of period | $ | 23,629 | $ | -6,027 | $ | -1,027 | $ | 16,575 | ||||||
(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 13-week period ended March 28, 2015: | ||||||||||||||
13-Weeks Ended March 28, 2015 | ||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive | Affected Line Item in the Statement Where Net Income is | |||||||||||||
Details about Accumulated Other Comprehensive Income Components | Income | Presented | ||||||||||||
Unrealized gains on available-for-sale securities | $ | 340 | Other income | |||||||||||
-18 | Income tax provision | |||||||||||||
$ | 322 | Net of tax | ||||||||||||
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 28, 2015 | |
Recently Issued Accounting Pronouncements | 11. Recently Issued Accounting Pronouncements |
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. | |
Stock_Compensation_Plans
Stock Compensation Plans | 3 Months Ended | |
Mar. 28, 2015 | ||
Stock Compensation Plans | 12 | Stock Compensation Plans |
In February 2015, Restricted Stock Units (RSUs) were granted to certain employees under the Company’s 2005 Equity Incentive Plan (the “2005 Plan”). The vesting of these RSUs is contingent upon the achievement of certain revenue and profitability goals, as well as on time-based vesting requirements. The compensation expense related to these grants did not have a material impact on the results of operations for the fiscal quarter ended March 28, 2015 and is not expected to have a material impact on the results of operations for the fiscal year ending December 26, 2015. The 2005 Plan is discussed further in our Annual Report on Form 10-K for the fiscal year ended December 27, 2014. | ||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Components of Inventories | The components of inventories consist of the following: | |||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 181,894 | $ | 161,444 | ||||
Work-in-process | 60,758 | 53,824 | ||||||
Finished goods | 264,099 | 244,282 | ||||||
Inventory reserves | -36,307 | -39,075 | ||||||
Inventory, net of reserves | $ | 470,444 | $ | 420,475 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share: | |||||||
13-Weeks Ended | ||||||||
March 28, | March 29, | |||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Numerator for basic and diluted net income per share - net income | $ | 66,793 | $ | 118,818 | ||||
Denominator: | ||||||||
Denominator for basic net income per share – weighted-average common shares | 191,762 | 195,090 | ||||||
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units | 579 | 770 | ||||||
Denominator for diluted net income per share – adjusted weighted-average common shares | 192,341 | 195,860 | ||||||
Basic net income per share | $ | 0.35 | $ | 0.61 | ||||
Diluted net income per share | $ | 0.35 | $ | 0.61 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Revenues, Interest Income and Interest Expense, and Income before Income Taxes for Reportable Segments | Net sales, operating income, and income before taxes for each of the Company’s reportable segments are presented below: | |||||||||||||||||||
Reportable Segments | ||||||||||||||||||||
Outdoor | Fitness | Marine | Auto | Aviation | Total | |||||||||||||||
13-Weeks Ended March 28, 2015 | ||||||||||||||||||||
Net sales | $ | 75,915 | $ | 130,994 | $ | 64,297 | $ | 216,126 | $ | 98,062 | $ | 585,394 | ||||||||
Operating income | $ | 23,834 | $ | 34,638 | $ | 4,566 | $ | 22,480 | $ | 26,180 | $ | 111,698 | ||||||||
Income (loss) before taxes | $ | 21,777 | $ | 28,349 | $ | 2,711 | $ | -453 | $ | 23,812 | $ | 76,196 | ||||||||
13-Weeks Ended March 29, 2014 | ||||||||||||||||||||
Net sales | $ | 83,985 | $ | 100,288 | $ | 60,002 | $ | 242,952 | $ | 95,994 | $ | 583,221 | ||||||||
Operating income | $ | 23,683 | $ | 33,512 | $ | 3,810 | $ | 30,564 | $ | 28,800 | $ | 120,369 | ||||||||
Income before taxes | $ | 28,103 | $ | 37,522 | $ | 6,645 | $ | 40,148 | $ | 30,049 | $ | 142,467 | ||||||||
Net Sales and Property and Equipment Net by Geographic Area | Net sales and property and equipment, net by geographic area are as follows as of and for the 13-week periods ended March 28, 2015 and March 29, 2014. Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa: | |||||||||||||||||||
Americas | APAC | EMEA | Total | |||||||||||||||||
28-Mar-15 | ||||||||||||||||||||
Net sales to external customers | $ | 305,261 | $ | 71,782 | $ | 208,351 | $ | 585,394 | ||||||||||||
Property and equipment, net | $ | 276,605 | $ | 111,544 | $ | 47,955 | $ | 436,104 | ||||||||||||
29-Mar-14 | ||||||||||||||||||||
Net sales to external customers | $ | 304,808 | $ | 57,810 | $ | 220,603 | $ | 583,221 | ||||||||||||
Property and equipment, net | $ | 243,726 | $ | 119,850 | $ | 53,588 | $ | 417,164 | ||||||||||||
Warranty_Reserves_Tables
Warranty Reserves (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Schedule of Product Warranty Liability | The following reconciliation provides an illustration of changes in the aggregate warranty reserve. | |||||||
13-Weeks Ended | ||||||||
March 28, | March 29, | |||||||
2015 | 2014 | |||||||
Balance - beginning of the period | $ | 27,609 | $ | 26,767 | ||||
Accrual for products sold | 6,742 | 9,485 | ||||||
Expenditures | -10,485 | -11,236 | ||||||
Balance - end of the period | $ | 23,866 | $ | 25,016 | ||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
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 March 28, 2015 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
U.S. Treasury securities | $ | 27,369 | $ | - | $ | 27,369 | $ | - | |||||||||
Agency securities | 327,160 | - | 327,160 | - | |||||||||||||
Mortgage-backed securities | 380,535 | - | 380,535 | - | |||||||||||||
Corporate securities | 572,211 | - | 572,211 | - | |||||||||||||
Municipal securities | 153,617 | - | 153,617 | - | |||||||||||||
Other | 68,422 | - | 68,422 | - | |||||||||||||
Total | $ | 1,529,314 | $ | - | $ | 1,529,314 | $ | - | |||||||||
Fair Value Measurements as | |||||||||||||||||
of December 27, 2014 (1) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
U.S. Treasury securities | $ | 30,144 | $ | - | $ | 30,144 | $ | - | |||||||||
Agency securities | 428,320 | - | 428,320 | - | |||||||||||||
Mortgage-backed securities | 324,307 | - | 324,307 | - | |||||||||||||
Corporate securities | 594,402 | - | 594,402 | - | |||||||||||||
Municipal securities | 125,410 | - | 125,410 | - | |||||||||||||
Other | 72,750 | - | 72,750 | - | |||||||||||||
Total | $ | 1,575,333 | $ | - | $ | 1,575,333 | $ | - | |||||||||
(1) Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement. | |||||||||||||||||
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 March 28, 2015 | |||||||||||||||||
Amortized Cost | Gross Unrealized | Gross | Gross Unrealized | Estimated Fair | |||||||||||||
Gains | Unrealized | Losses-Other (3) | Value (Net | ||||||||||||||
Losses-OTTI (2) | Carrying | ||||||||||||||||
Amount) | |||||||||||||||||
U.S. Treasury securities | $ | 27,185 | $ | 186 | $ | - | $ | -2 | $ | 27,369 | |||||||
Agency securities | 330,109 | 531 | -3,242 | -238 | 327,160 | ||||||||||||
Mortgage-backed securities | 382,676 | 953 | -1,076 | -2,018 | 380,535 | ||||||||||||
Corporate securities | 574,513 | 744 | -1,690 | -1,356 | 572,211 | ||||||||||||
Municipal securities | 153,513 | 515 | -5 | -406 | 153,617 | ||||||||||||
Other | 68,461 | 13 | -14 | -38 | 68,422 | ||||||||||||
Total | $ | 1,536,457 | $ | 2,942 | $ | -6,027 | $ | -4,058 | $ | 1,529,314 | |||||||
Available-For-Sale Securities as | |||||||||||||||||
of December 27, 2014 (1) | |||||||||||||||||
Amortized Cost | Gross Unrealized | Gross | Gross Unrealized | Estimated Fair | |||||||||||||
Gains | Unrealized | Losses-Other (3) | Value (Net | ||||||||||||||
Losses-OTTI (2) | Carrying | ||||||||||||||||
Amount) | |||||||||||||||||
U.S. Treasury securities | $ | 30,185 | $ | 26 | $ | -25 | $ | -42 | $ | 30,144 | |||||||
Agency securities | 436,817 | 169 | -8,259 | -407 | 428,320 | ||||||||||||
Mortgage-backed securities | 329,048 | 580 | -1,813 | -3,508 | 324,307 | ||||||||||||
Corporate securities | 600,674 | 689 | -2,874 | -4,087 | 594,402 | ||||||||||||
Municipal securities | 125,183 | 497 | -48 | -222 | 125,410 | ||||||||||||
Other | 72,857 | 59 | -12 | -154 | 72,750 | ||||||||||||
Total | $ | 1,594,764 | $ | 2,020 | $ | -13,031 | $ | -8,420 | $ | 1,575,333 | |||||||
(1) Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement. | |||||||||||||||||
(2) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. | |||||||||||||||||
(3) 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 March 28, 2015. | ||||||||||||||||
As of March 28, 2015 | |||||||||||||||||
Less than 12 Consecutive Months | 12 Consecutive Months or Longer | ||||||||||||||||
Gross Unrealized | Fair Value | Gross Unrealized | Fair Value | ||||||||||||||
Losses | Losses | ||||||||||||||||
U.S. Treasury securities | $ | -2 | $ | 4,777 | $ | - | $ | - | |||||||||
Agency securities | $ | -221 | $ | 36,997 | $ | -3,259 | $ | 204,858 | |||||||||
Mortgage-backed securities | $ | -1,476 | $ | 175,026 | $ | -1,618 | $ | 85,274 | |||||||||
Corporate securities | $ | -1,253 | $ | 264,951 | $ | -1,793 | $ | 91,093 | |||||||||
Municipal securities | $ | -382 | $ | 51,639 | $ | -29 | $ | 9,356 | |||||||||
Other | $ | -10 | $ | 14,866 | $ | -42 | $ | 13,527 | |||||||||
Total | $ | -3,344 | $ | 548,256 | $ | -6,741 | $ | 404,108 | |||||||||
Amortized Cost and Estimated Fair Value of Marketable Securities, by Contractual Maturity | The amortized cost and estimated fair value of marketable securities at March 28, 2015, 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 | $ | 269,931 | $ | 270,212 | |||||||||||||
Due after one year through five years | 960,640 | 958,255 | |||||||||||||||
Due after five years through ten years | 213,954 | 210,294 | |||||||||||||||
Due after ten years | 91,932 | 90,553 | |||||||||||||||
$ | 1,536,457 | $ | 1,529,314 | ||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Changes in Accumulated Other Comprehensive Income | The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week period ended March 28, 2015: | |||||||||||||
13-Weeks Ended March 28, 2015 | ||||||||||||||
Gross unrealized losses on | Net unrealized gains (losses) on | |||||||||||||
Foreign Currency Translation | available-for-sale securities- | available-for-sale securities- | ||||||||||||
Adjustment | OTTI(1) | Other(2) | Total | |||||||||||
Balance - beginning of period | $ | 20,874 | $ | -13,031 | $ | -5,272 | $ | 2,571 | ||||||
Other comprehensive income before reclassification | 2,755 | 7,004 | 4,567 | 14,326 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | - | - | -322 | -322 | ||||||||||
Net current-period other comprehensive income | 2,755 | 7,004 | 4,245 | 14,004 | ||||||||||
Balance - end of period | $ | 23,629 | $ | -6,027 | $ | -1,027 | $ | 16,575 | ||||||
Reclassifications out of AOCI | The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week period ended March 28, 2015: | |||||||||||||
13-Weeks Ended March 28, 2015 | ||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive | Affected Line Item in the Statement Where Net Income is | |||||||||||||
Details about Accumulated Other Comprehensive Income Components | Income | Presented | ||||||||||||
Unrealized gains on available-for-sale securities | $ | 340 | Other income | |||||||||||
-18 | Income tax provision | |||||||||||||
$ | 322 | Net of tax | ||||||||||||
Inventories_Details
Inventories (Details) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $181,894 | $161,444 |
Work-in-process | 60,758 | 53,824 |
Finished goods | 264,099 | 244,282 |
Inventory Reserves | -36,307 | -39,075 |
Inventory, net of reserves | $470,444 | $420,475 |
Earnings_Per_Share_Computation
Earnings Per Share (Computation of Basic and Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Numerator: | ||
Numerator for basic and diluted net income per share - net income | $66,793 | $118,818 |
Denominator: | ||
Denominator for basic net income per share - weighted-average common shares | 191,762 | 195,090 |
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units | 579 | 770 |
Denominator for diluted net income per share - adjusted weighted-average common shares | 192,341 | 195,860 |
Basic net income per share | $0.35 | $0.61 |
Diluted net income per share | $0.35 | $0.61 |
Earnings_Per_Share_Additional_
Earnings Per Share (Additional Information) (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock options, stock appreciation rights and restricted stock units | 2,229 | 4,380 |
Shares issued as a result of exercises of equity awards | 37 | 242 |
Segment_Information_Net_Sales_
Segment Information (Net Sales Operating Income and Income Before Taxes for Reportable Segments) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Segment Reporting Information [Line Items] | ||
Net sales | $585,394 | $583,221 |
Operating income | 111,698 | 120,369 |
Income (loss) before taxes | 76,196 | 142,467 |
Outdoor | ||
Segment Reporting Information [Line Items] | ||
Net sales | 75,915 | 83,985 |
Operating income | 23,834 | 23,683 |
Income (loss) before taxes | 21,777 | 28,103 |
Fitness | ||
Segment Reporting Information [Line Items] | ||
Net sales | 130,994 | 100,288 |
Operating income | 34,638 | 33,512 |
Income (loss) before taxes | 28,349 | 37,522 |
Marine | ||
Segment Reporting Information [Line Items] | ||
Net sales | 64,297 | 60,002 |
Operating income | 4,566 | 3,810 |
Income (loss) before taxes | 2,711 | 6,645 |
Auto/Mobile | ||
Segment Reporting Information [Line Items] | ||
Net sales | 216,126 | 242,952 |
Operating income | 22,480 | 30,564 |
Income (loss) before taxes | -453 | 40,148 |
Aviation | ||
Segment Reporting Information [Line Items] | ||
Net sales | 98,062 | 95,994 |
Operating income | 26,180 | 28,800 |
Income (loss) before taxes | $23,812 | $30,049 |
Segment_Information_Net_Sales_1
Segment Information (Net Sales and Property and Equipment Net by Geographic Area) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales to external customers | $585,394 | $583,221 | |
Property and equipment, net | 436,104 | 417,164 | 430,887 |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales to external customers | 305,261 | 304,808 | |
Property and equipment, net | 276,605 | 243,726 | |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales to external customers | 71,782 | 57,810 | |
Property and equipment, net | 111,544 | 119,850 | |
Europe, Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales to external customers | 208,351 | 220,603 | |
Property and equipment, net | $47,955 | $53,588 |
Warranty_Reserves_Changes_in_A
Warranty Reserves (Changes in Aggregate Warranty Reserve) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 |
Product Liability Contingency [Line Items] | |||
Balance - beginning of the period | $27,609 | $26,767 | $27,609 |
Accrual for products sold | 6,742 | 9,485 | |
Expenditures | -10,485 | -11,236 | |
Balance - end of the period | $23,866 | $25,016 | $27,609 |
Commitments_and_Contingencies_
Commitments and Contingencies (Additional Information) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 28, 2015 |
Commitments to make purchases, time period | 5 years |
Purchase Commitment, Remaining Minimum Amount Committed | $372,852 |
Prepaid Supplies | $43,000 |
Income_Taxes_Additional_Inform
Income Taxes (Additional Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $5,287 | $5,795 |
Increase (Decrease) in Income Taxes | 14,246 | |
Income Tax Expense Benefit | $9,403 | $23,649 |
Effective Income Tax Rate Reconciliation, Percent | 12.30% | 16.60% |
Marketable_Securities_Availabl
Marketable Securities (Available for Sale Securities Measured at Estimated Fair Value on Recurring Basis) (Details) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 | |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | $1,529,314 | $1,575,333 | [1] |
U.S. Treasury securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 27,369 | 30,144 | [1] |
Agency Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 327,160 | 428,320 | [1] |
Mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 380,535 | 324,307 | [1] |
Corporate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 572,211 | 594,402 | [1] |
Municipal securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 153,617 | 125,410 | [1] |
Other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 68,422 | 72,750 | [1] |
Level 1 | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 1 | U.S. Treasury securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 1 | Agency Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 1 | Mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 1 | Corporate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 1 | Municipal securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 1 | Other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 2 | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 1,529,314 | 1,575,333 | [1] |
Level 2 | U.S. Treasury securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 27,369 | 30,144 | [1] |
Level 2 | Agency Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 327,160 | 428,320 | [1] |
Level 2 | Mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 380,535 | 324,307 | [1] |
Level 2 | Corporate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 572,211 | 594,402 | [1] |
Level 2 | Municipal securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 153,617 | 125,410 | [1] |
Level 2 | Other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 68,422 | 72,750 | [1] |
Level 3 | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 3 | U.S. Treasury securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 3 | Agency Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 3 | Mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 3 | Corporate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 3 | Municipal securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | [1] |
Level 3 | Other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | $0 | $0 | [1] |
[1] | Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement. |
Marketable_Securities_Classifi
Marketable Securities (Classified as Available-For-Sale Securities) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $1,536,457 | $1,594,764 | [1] | |
Gross Unrealized Gains | 2,942 | 2,020 | [1] | |
Gross Unrealized Losses-OTTI | -6,027 | [2] | -13,031 | [1],[2] |
Gross Unrealized Losses-Other | -4,058 | [3] | -8,420 | [1],[3] |
Estimated Fair Value (Net Carrying Amount) | 1,529,314 | 1,575,333 | [1] | |
U.S. Treasury securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 27,185 | 30,185 | [1] | |
Gross Unrealized Gains | 186 | 26 | [1] | |
Gross Unrealized Losses-OTTI | 0 | [2] | -25 | [1],[2] |
Gross Unrealized Losses-Other | -2 | [3] | -42 | [1],[3] |
Estimated Fair Value (Net Carrying Amount) | 27,369 | 30,144 | [1] | |
Agency securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 330,109 | 436,817 | [1] | |
Gross Unrealized Gains | 531 | 169 | [1] | |
Gross Unrealized Losses-OTTI | -3,242 | [2] | -8,259 | [1],[2] |
Gross Unrealized Losses-Other | -238 | [3] | -407 | [1],[3] |
Estimated Fair Value (Net Carrying Amount) | 327,160 | 428,320 | [1] | |
Mortgage-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 382,676 | 329,048 | [1] | |
Gross Unrealized Gains | 953 | 580 | [1] | |
Gross Unrealized Losses-OTTI | -1,076 | [2] | -1,813 | [1],[2] |
Gross Unrealized Losses-Other | -2,018 | [3] | -3,508 | [1],[3] |
Estimated Fair Value (Net Carrying Amount) | 380,535 | 324,307 | [1] | |
Corporate securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 574,513 | 600,674 | [1] | |
Gross Unrealized Gains | 744 | 689 | [1] | |
Gross Unrealized Losses-OTTI | -1,690 | [2] | -2,874 | [1],[2] |
Gross Unrealized Losses-Other | -1,356 | [3] | -4,087 | [1],[3] |
Estimated Fair Value (Net Carrying Amount) | 572,211 | 594,402 | [1] | |
Municipal securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 153,513 | 125,183 | [1] | |
Gross Unrealized Gains | 515 | 497 | [1] | |
Gross Unrealized Losses-OTTI | -5 | [2] | -48 | [1],[2] |
Gross Unrealized Losses-Other | -406 | [3] | -222 | [1],[3] |
Estimated Fair Value (Net Carrying Amount) | 153,617 | 125,410 | [1] | |
Other | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 68,461 | 72,857 | [1] | |
Gross Unrealized Gains | 13 | 59 | [1] | |
Gross Unrealized Losses-OTTI | -14 | [2] | -12 | [1],[2] |
Gross Unrealized Losses-Other | -38 | [3] | -154 | [1],[3] |
Estimated Fair Value (Net Carrying Amount) | $68,422 | $72,750 | [1] | |
[1] | Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement. | |||
[2] | Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. | |||
[3] | 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 $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 28, 2015 |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | ($3,344) |
Gross Unrealized Losses 12 Consecutive Months or Longer | -6,741 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 548,256 |
Fair Value 12 Consecutive Months or Longer | 404,108 |
Mortgage-backed securities | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -1,476 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -1,618 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 175,026 |
Fair Value 12 Consecutive Months or Longer | 85,274 |
Corporate securities | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -1,253 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -1,793 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 264,951 |
Fair Value 12 Consecutive Months or Longer | 91,093 |
Other | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -10 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -42 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 14,866 |
Fair Value 12 Consecutive Months or Longer | 13,527 |
US Treasury Securities | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -2 |
Gross Unrealized Losses 12 Consecutive Months or Longer | 0 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 4,777 |
Fair Value 12 Consecutive Months or Longer | 0 |
Agency Securities | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -221 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -3,259 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 36,997 |
Fair Value 12 Consecutive Months or Longer | 204,858 |
Municipal securities | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | -382 |
Gross Unrealized Losses 12 Consecutive Months or Longer | -29 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 51,639 |
Fair Value 12 Consecutive Months or Longer | $9,356 |
Marketable_Securities_Amortize
Marketable Securities (Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity) (Details) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 | |
In Thousands, unless otherwise specified | |||
Cost | |||
Due in one year or less | $269,931 | ||
Due after one year through five years | 960,640 | ||
Due after five years through ten years | 213,954 | ||
Due after ten years | 91,932 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total | 1,536,457 | ||
Estimated Fair Value | |||
Due in one year or less | 270,212 | ||
Due after one year through five years | 958,255 | ||
Due after five years through ten years | 210,294 | ||
Due after ten years | 90,553 | ||
Estimated Fair Value (Net Carrying Amount) | $1,529,314 | $1,575,333 | [1] |
[1] | Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement. |
Marketable_Securities_Addition
Marketable Securities (Additional Information) (Details) (USD $) | Mar. 28, 2015 |
In Thousands, unless otherwise specified | |
Held To Maturity Securities Continuous Unrealized Loss Position Percentage | 43.00% |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | $952,364 |
Available For Sale Securities Continuous Unrealized Loss Position Amortization Cost | $962,449 |
Share_Repurchase_Plan_Addition
Share Repurchase Plan (Additional Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Feb. 13, 2015 |
Accelerated Share Repurchases [Line Items] | ||
Share repurchase program, shares repurchased | 331 | |
Share repurchase program, shares repurchased value | $16,260 | |
Stock Repurchase Program, Authorized Amount | 300,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $283,740 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | |
Foreign Currency Translation Adjustment | |||
Balance - beginning of period | $20,874 | ||
Other comprehensive income before reclassification | 2,755 | -15,518 | |
Amounts reclassified from accumulated other comprehensive income | 0 | ||
Net current-period other comprehensive income | 2,755 | ||
Balance - end of period | 23,629 | ||
Gross unrealized losses on available-for-sale securities-OTTI | |||
Balance - beginning of period | -13,031 | [1] | |
Other comprehensive income before reclassification | 7,004 | [1] | |
Amounts reclassified from accumulated other comprehensive income | 0 | [1] | |
Net current-period other comprehensive income | 7,004 | [1] | |
Balance - end of period | -6,027 | [1] | |
Net unrealized gains (losses) on available-for-sale securities-Other | |||
Balance - beginning of period | -5,272 | [2] | |
Other comprehensive income before reclassification | 4,567 | [2] | |
Amounts reclassified from accumulated other comprehensive income | -322 | [2] | |
Net current-period other comprehensive income | 4,245 | [2] | |
Balance - end of period | -1,027 | [2] | |
Total | |||
Balance - beginning of period | 2,571 | ||
Other comprehensive income before reclassification | 14,326 | ||
Amounts reclassified from accumulated other comprehensive income | -322 | ||
Net current-period other comprehensive income | 14,004 | ||
Balance - end of period | $16,575 | ||
[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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other income | ($35,502) | $22,098 |
Income tax provision | -9,403 | -23,649 |
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 | 340 | |
Income tax provision | -18 | |
Net of tax | $322 |