Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 27, 2015 | Jul. 27, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 27, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | GARMIN LTD | |
Entity Central Index Key | 1,121,788 | |
Current Fiscal Year End Date | --12-27 | |
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 ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 938,183 | $ 1,196,268 |
Marketable securities | 199,007 | 167,989 |
Accounts receivable, net | 502,034 | 570,191 |
Inventories, net | 458,451 | 420,475 |
Deferred income taxes | 53,858 | 56,102 |
Deferred costs | 48,033 | 51,336 |
Prepaid expenses and other current assets | 83,730 | 48,615 |
Total current assets | 2,283,296 | 2,510,976 |
Property and equipment, net | 445,672 | 430,887 |
Marketable securities | 1,309,405 | 1,407,344 |
Restricted cash | 279 | 308 |
Noncurrent deferred income tax | 67,246 | 67,712 |
Noncurrent deferred costs | 32,504 | 36,140 |
Intangible assets, net | 222,968 | 218,083 |
Other assets | 62,039 | 21,853 |
Total assets | 4,423,409 | 4,693,303 |
Current liabilities: | ||
Accounts payable | 146,088 | 149,094 |
Salaries and benefits payable | 55,185 | 62,764 |
Accrued warranty costs | 26,101 | 27,609 |
Accrued sales program costs | 40,924 | 58,934 |
Deferred revenue | 174,365 | 203,598 |
Accrued royalty costs | 9,509 | 51,889 |
Accrued advertising expense | 29,762 | 26,334 |
Other accrued expenses | 76,003 | 67,780 |
Deferred income taxes | 3,848 | 17,673 |
Income taxes payable | 10,609 | 182,260 |
Dividend payable | 389,287 | 185,326 |
Total current liabilities | 961,681 | 1,033,261 |
Deferred income taxes | 41,628 | 39,497 |
Non-current income taxes | 85,436 | 80,611 |
Non-current deferred revenue | 124,625 | 135,130 |
Other liabilities | 1,534 | 1,437 |
Stockholders' equity: | ||
Shares, CHF 10 par value, 208,077 shares authorized and issued; 190,936 shares outstanding at June 27, 2015 and 191,815 shares outstanding at December 27, 2014 | 1,797,435 | 1,797,435 |
Additional paid-in capital | 85,233 | 73,521 |
Treasury stock | (374,839) | (330,132) |
Retained earnings | 1,676,601 | 1,859,972 |
Accumulated other comprehensive income | 24,075 | 2,571 |
Total stockholders' equity | 3,208,505 | 3,403,367 |
Total liabilities and stockholders' equity | $ 4,423,409 | $ 4,693,303 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - SFr / shares | Jun. 27, 2015 | Dec. 27, 2014 |
Statement of Financial Position [Abstract] | ||
Shares, par value | SFr 10 | SFr 10 |
Shares, shares authorized | 208,077 | 208,077 |
Shares, shares issued | 208,077 | 208,077 |
Shares, shares outstanding | 190,936 | 191,815 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 773,830 | $ 777,848 | $ 1,359,224 | $ 1,361,069 |
Cost of goods sold | 354,580 | 333,363 | 595,852 | 585,750 |
Gross profit | 419,250 | 444,485 | 763,372 | 775,319 |
Advertising expense | 45,794 | 34,918 | 73,466 | 59,346 |
Selling, general and administrative expense | 97,552 | 92,409 | 196,302 | 182,282 |
Research and development expense | 109,240 | 98,404 | 215,242 | 194,568 |
Total operating expense | 252,586 | 225,731 | 485,010 | 436,196 |
Operating income | 166,664 | 218,754 | 278,362 | 339,123 |
Other income (expense): | ||||
Interest income | 7,420 | 9,670 | 15,444 | 19,437 |
Foreign currency gains (losses) | (487) | (20,378) | (44,751) | (7,563) |
Other income (loss) | (39) | 674 | 698 | 190 |
Total other income (expense) | 6,894 | (10,034) | (28,609) | 12,064 |
Income before income taxes | 173,558 | 208,720 | 249,753 | 351,187 |
Income tax provision | 35,805 | 26,737 | 45,208 | 50,387 |
Net income | $ 137,753 | $ 181,983 | $ 204,545 | $ 300,800 |
Net income per share: | ||||
Basic | $ 0.72 | $ 0.94 | $ 1.07 | $ 1.55 |
Diluted | $ 0.72 | $ 0.93 | $ 1.07 | $ 1.54 |
Weighted average common shares outstanding: | ||||
Basic | 191,101 | 193,771 | 191,432 | 194,431 |
Diluted | 191,600 | 194,955 | 191,939 | 195,464 |
Dividends declared per share | $ 2.04 | $ 1.92 | $ 2.04 | $ 1.92 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 137,753 | $ 181,983 | $ 204,545 | $ 300,800 |
Foreign currency translation adjustment | 17,716 | 22,757 | 20,471 | 7,239 |
Change in fair value of available-for-sale marketable securities, net of deferred taxes | (10,216) | 15,234 | 1,033 | 28,013 |
Comprehensive income | $ 145,253 | $ 219,974 | $ 226,049 | $ 336,052 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Operating Activities: | ||
Net income | $ 204,545 | $ 300,800 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 24,915 | 23,736 |
Amortization | 13,215 | 13,722 |
Loss (gain) on sale of property and equipment | 420 | (662) |
Provision for doubtful accounts | (1,499) | 2,383 |
Deferred income taxes | (9,325) | 3,071 |
Unrealized foreign currency loss | 59,046 | 7,483 |
Provision for obsolete and slow moving inventories | 6,569 | 16,414 |
Stock compensation expense | 14,742 | 13,459 |
Realized (gain) loss on marketable securities | (364) | 192 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 60,016 | 65,317 |
Inventories | (45,635) | (61,812) |
Other current and non-current assets | (74,725) | (4,291) |
Accounts payable | (7,084) | (14,598) |
Other current and non-current liabilities | (53,808) | (75,826) |
Deferred revenue | (38,836) | (66,265) |
Deferred cost | 6,892 | 9,783 |
Income taxes payable | (174,788) | 2,446 |
Net cash (used by)/provided by operating activities | (15,704) | 235,352 |
Investing activities: | ||
Purchases of property and equipment | (39,732) | (36,761) |
Proceeds from sale of property and equipment | 665 | 669 |
Purchase of intangible assets | (1,939) | (1,556) |
Purchase of marketable securities | (480,090) | (534,952) |
Redemption of marketable securities | 540,785 | 590,887 |
Proceeds from repayment on loan receivable | 0 | 137,379 |
Change in restricted cash | 29 | (1) |
Acquisitions, net of cash acquired | (12,632) | 0 |
Net cash provided by investing activities | 7,086 | 155,665 |
Financing activities: | ||
Dividends paid | (183,925) | (175,574) |
Purchase of treasury stock under share repurchase plan | (57,295) | (162,359) |
Purchase of treasury stock related to equity awards | (240) | (11,249) |
Proceeds from issuance of treasury stock related to equity awards | 8,560 | 11,398 |
Tax benefit from issuance of equity awards | 1,239 | 3,434 |
Net cash used in financing activities | (231,661) | (334,350) |
Effect of exchange rate changes on cash and cash equivalents | (17,806) | (930) |
Net decrease in cash and cash equivalents | (258,085) | 55,737 |
Cash and cash equivalents at beginning of period | 1,196,268 | 1,179,149 |
Cash and cash equivalents at end of period | $ 938,183 | $ 1,234,886 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 27, 2015 | |
Business Description [Abstract] | |
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 and 26-week periods ended June 27, 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 Companys Annual Report on Form 10-K for the year ended December 27, 2014. The Companys 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 June 27, 2015 and June 28, 2014 both contain operating results for 13 weeks. |
Inventories
Inventories | 6 Months Ended |
Jun. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories The components of inventories consist of the following: June 27, December 27, 2015 2014 Raw materials $ 190,974 $ 161,444 Work-in-process 59,736 53,824 Finished goods 244,662 244,282 Inventory reservers (36,921 ) (39,075 ) Inventory, net of reserves $ 458,451 $ 420,475 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 27, 2015 | |
Net income per share: | |
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 June 27, June 28, 2015 2014 Numerator: Numerator for basic and diluted net income per share - net income $ 137,753 $ 181,983 Denominator: Denominator for basic net income per share weighted-average common shares 191,101 193,771 Effect of dilutive securities stock options, stock appreciation rights and restricted stock units 499 1,184 Denominator for diluted net income per share adjusted weighted-average common shares 191,600 194,955 Basic net income per share $ 0.72 $ 0.94 Diluted net income per share $ 0.72 $ 0.93 26-Weeks Ended June 27, June 28, 2015 2014 Numerator: Numerator for basic and diluted net income per share - net income $ 204,545 $ 300,800 Denominator: Denominator for basic net income per share weighted-average common shares 191,432 194,431 Effect of dilutive securities stock options, stock appreciation rights and restricted stock units 507 1,033 Denominator for diluted net income per share adjusted weighted-average common shares 191,939 195,464 Basic net income per share $ 1.07 $ 1.55 Diluted net income per share $ 1.07 $ 1.54 There were 3,558 and 2,230 anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively equity awards) outstanding during the 13-week periods ended June 27, 2015 and June 28, 2014, respectively. There were 3,598 and 2,277 anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively equity awards) outstanding during the 26-week periods ended June 27, 2015 and June 28, 2014, respectively. There were 91 and 124 shares issued as a result of exercises and releases of equity awards for the 13-week periods ended June 27, 2015 and June 28, 2014, respectively. There were 128 and 366 shares issued as a result of exercises and releases of equity awards for the 26-week periods ended June 27, 2015 and June 28, 2014, respectively. There were 214 employee stock purchase plan (ESPP) shares issued from outstanding Treasury stock during the 13-week and 26-week periods ended June 27, 2015. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 27, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 4. Segment Information The Company has identified five reportable segments Auto, Aviation, Marine, Outdoor and Fitness. The Companys Chief Operating Decision Maker (CODM), assesses segment performance and allocates resources to each segment individually. During the fiscal quarter ended June 27, 2015, the measure of segment profit or loss used by the CODM to assess segment performance and allocate resources changed from income before income taxes to operating income. This change did not impact the measurement methods used to determine reported segment profit or loss in the 13-week and 26-week periods ended June 27, 2015 and June 28, 2014. Net sales, gross profit, and operating income for each of the Companys reportable segments are presented below: Garmin Ltd. And Subsidiaries Net Sales, Gross Proft and Operating Income by Segment (Unaudited) Reportable Segments Outdoor Fitness Marine Auto Aviation Total 13-Weeks Ended June 27, 2015 Net sales $ 110,324 $ 158,649 $ 103,713 $ 298,878 $ 102,266 $ 773,830 Gross profit $ 66,946 $ 88,458 $ 58,577 $ 131,006 $ 74,263 $ 419,250 Operating income $ 37,417 $ 33,070 $ 23,901 $ 44,871 $ 27,405 $ 166,664 13-Weeks Ended June 28, 2014 Net sales $ 106,059 $ 150,678 $ 73,780 $ 350,036 $ 97,295 $ 777,848 Gross profit $ 64,668 $ 98,063 $ 42,536 $ 167,593 $ 71,625 $ 444,485 Operating income $ 35,281 $ 62,872 $ 17,657 $ 74,642 $ 28,302 $ 218,754 26-Weeks Ended June 27, 2015 Net sales $ 186,239 $ 289,644 $ 168,010 $ 515,004 $ 200,327 $ 1,359,224 Gross profit $ 117,166 $ 171,534 $ 94,090 $ 234,809 $ 145,773 $ 763,372 Operating income $ 61,250 $ 67,709 $ 28,468 $ 67,350 $ 53,585 $ 278,362 26-Weeks Ended June 28, 2014 Net sales $ 190,044 $ 250,965 $ 133,783 $ 592,988 $ 193,289 $ 1,361,069 Gross profit $ 115,578 $ 162,148 $ 73,588 $ 281,384 $ 142,621 $ 775,319 Operating income $ 58,964 $ 96,384 $ 21,467 $ 105,206 $ 57,102 $ 339,123 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 26-week periods ended June 27, 2015 and June 28, 2014. Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa: Americas APAC EMEA Total June 27, 2015 Net sales to external customers $ 722,317 $ 154,102 $ 482,805 $ 1,359,224 Property and equipment, net $ 287,171 $ 110,524 $ 47,977 $ 445,672 June 28, 2014 Net sales to external customers $ 716,156 $ 123,883 $ 521,030 $ 1,361,069 Property and equipment, net $ 255,422 $ 120,369 $ 52,691 $ 428,482 |
Warranty Reserves
Warranty Reserves | 6 Months Ended |
Jun. 27, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserves | 5. Warranty Reserves The Companys products sold are generally covered by a warranty for periods ranging from one to two years. The Companys 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 June 27, June 28, 2015 2014 Balance - beginning of period $ 23,866 $ 25,016 Accrual for products sold during the period 10,348 11,806 Expenditures (8,113 ) (9,473 ) Balance - end of period $ 26,101 $ 27,349 26-Weeks Ended June 27, June 28, 2015 2014 Balance - beginning of period $ 27,609 $ 26,767 Accrual for products sold during the period 17,090 21,291 Expenditures (18,598 ) (20,709 ) Balance - end of period $ 26,101 $ 27,349 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 $333,281 over the next five years. Subsequent to June 27, 2015, a portion of a commitment was satisfied with a $43,000 prepayment to a supplier, all 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 June 27, 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 managements expectations could have a material adverse effect on the Companys results of operations in a particular quarter or fiscal year. The Company settled or resolved certain matters during the fiscal quarter ended June 27, 2015 that did not individually or in the aggregate have a material impact on the Companys financial condition or results of operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The Companys income tax expense increased by $9,068, to $35,805 for the 13-week period ended June 27, 2015, from $26,737 for the 13-week period ended June 28, 2014. The effective tax rate was 20.6% in the second quarter of 2015 compared to 12.8% in the second quarter of 2014. The second quarter 2015 effective tax rate increased compared to the second quarter 2014 due to the release of uncertain tax position reserves due to expiration of certain statutes of limitations or completion of tax audits reducing our expense by $1,637 and $5,190, respectively, in second quarter 2015 and second quarter 2014. In addition, the second quarter 2015 effective tax rate increased as compared to second quarter 2014 due to the current projected full year income mix for 2015 compared to the same projection at second quarter of 2014. Our income tax expense decreased by $5,179 to $45,208 for the first half of 2015, from $50,387 for the first half of 2014. The effective tax rate was 18.1% in the first half of 2015 compared to 14.3% in the first half of 2014. The first half 2015 effective tax rate increased as compared to first half of 2014 due to the release of uncertain tax position reserves due to expiration of certain statutes of limitations or completion of tax audits reducing our expense by $6,924 and $10,985, respectively, in the first half of 2015 and the first half of 2014. The first half 2015 effective tax rate increased as compared to first half 2014 primarily due to the current projected full year income mix for 2015 compared to the same projection at second quarter of 2014. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 27, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
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 June 27, 2015 Total Level 1 Level 2 Level 3 U.S. Treasury securities $ 27,255 $ - $ 27,255 $ - Agency securities 255,200 - 255,200 - Mortgage-backed securities 404,838 - 404,838 - Corporate securities 532,555 - 532,555 - Municipal securities 215,846 - 215,846 - Other 72,718 - 72,718 - Total $ 1,508,412 $ - $ 1,508,412 $ - 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) Marketable securities classified as available-for-sale securities are summarized below: Available-For-Sale Securities as of June 27, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses-OTTI (2) Gross Unrealized Losses-Other (3) Estimated Fair Value (Net Carrying Amount) U.S. Treasury securities $ 27,194 $ 72 $ - $ (10 ) $ 27,256 Agency securities 261,054 119 (5,477 ) (496 ) 255,200 Mortgage-backed securities 411,376 342 (1,540 ) (5,340 ) 404,838 Corporate securities 537,232 291 (2,354 ) (2,614 ) 532,555 Municipal securities 216,967 318 (21 ) (1,418 ) 215,846 Other 72,750 12 (21 ) (24 ) 72,717 Total $ 1,526,573 $ 1,154 $ (9,413 ) $ (9,902 ) $ 1,508,412 Available-For-Sale Securities as of December 27, 2014 (3) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses-OTTI (2) Gross Unrealized Losses- Other (3) Estimated Fair Value (Net 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 Companys 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. During 2014 and the 26-week period ended June 27, 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 June 27, 2015 were $1,175,780 and $1,156,465, respectively. Approximately 56% of securities in our portfolio were at an unrealized loss position at June 27, 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 June 27, 2015. As of June 27, 2015 Less than 12 Consecutive Months 12 Consecutive Months or Longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value U.S. Treasury securities $ (10 ) $ 6,158 $ - $ - Agency securities $ (519 ) $ 53,678 $ (5,455 ) $ 174,780 Mortgage-backed securities $ (4,337 ) $ 258,964 $ (2,543 ) $ 102,575 Corporate securities $ (2,397 ) $ 291,522 $ (2,571 ) $ 120,916 Municipal securities $ (1,362 ) $ 106,358 $ (77 ) $ 16,005 Other $ (21 ) $ 20,304 $ (24 ) $ 5,205 Total $ (8,646 ) $ 736,984 $ (10,670 ) $ 419,481 The amortized cost and estimated fair value of marketable securities at June 27, 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 $ 198,988 $ 199,007 Due after one year through five years 1,009,357 1,001,271 Due after five years through ten years 230,612 223,721 Due after ten years 87,616 84,413 $ 1,526,573 $ 1,508,412 |
Share Repurchase Plan
Share Repurchase Plan | 6 Months Ended |
Jun. 27, 2015 | |
Equity [Abstract] | |
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 SECs Rule 10b-18. The timing and amounts of any repurchases will be determined by the Companys 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 June 27, 2015, the Company had repurchased 1,221 shares using cash of $57,295. There remains approximately $242,705 available to repurchase additional shares under this authorization. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 27, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
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 and the 26-week periods ended June 27, 2015: 13-Weeks Ended June 27, 2015 Foreign Currency Translation Adjustment Gross unrealized losses on available-for-sale securities- OTTI (4) Net unrealized gains (losses) on available-for-sale securities-Other (5) Total Beginning Balance $ 23,629 $ (6,027 ) $ (1,027 ) $ 16,575 Other comprehensive income before reclassification 17,716 (3,387 ) (6,826 ) 7,503 Amounts reclassified from accumulated other comprehensive income - - (3 ) (3 ) Net current-period other comprehensive income 17,716 (3,387 ) (6,829 ) 7,500 Ending Balance $ 41,345 $ (9,414 ) $ (7,856 ) $ 24,075 26-Weeks Ended June 27, 2015 Foreign Currency Translation Adjustment Gross unrealized losses on available-for-sale securities- OTTI (4) Net unrealized gains (losses) on available-for-sale securities-Other (5) Total Beginning Balance $ 20,874 $ (13,031 ) $ (5,272 ) $ 2,571 Other comprehensive income before reclassification 20,471 3,617 (2,258 ) 21,830 Amounts reclassified from accumulated other comprehensive income - - (326 ) (326 ) Net current-period other comprehensive income 20,471 3,617 (2,584 ) 21,504 Ending Balance $ 41,345 $ (9,414 ) $ (7,856 ) $ 24,075 (4) Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than- temporarily impaired. (5) 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 and 26-week periods ended June 27, 2015: 13-Weeks Ended June 27, 2015 Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Unrealized gains (losses) on available-for-sale securities $ 24 Other income (expense) $ (21 ) Income tax (provision) benefit $ 3 Net of tax 26-Weeks Ended June 27, 2015 Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Unrealized gains (losses) on available-for-sale securities $ 364 Other income (expense) $ (38 ) Income tax (provision) benefit $ 326 Net of tax |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 27, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
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 contracts 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, 2017 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 Companys financial statements. |
Stock Compensation Plans
Stock Compensation Plans | 6 Months Ended |
Jun. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | 12. Stock Compensation Plans In February 2015, Restricted Stock Units (RSUs) were granted to certain employees under the Companys 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 13-week or 26-week periods ended June 27, 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) | 6 Months Ended |
Jun. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories consist of the following: June 27, December 27, 2015 2014 Raw materials $ 190,974 $ 161,444 Work-in-process 59,736 53,824 Finished goods 244,662 244,282 Inventory reservers (36,921 ) (39,075 ) Inventory, net of reserves $ 458,451 $ 420,475 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Net income per share: | |
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 June 27, June 28, 2015 2014 Numerator: Numerator for basic and diluted net income per share - net income $ 137,753 $ 181,983 Denominator: Denominator for basic net income per share weighted-average common shares 191,101 193,771 Effect of dilutive securities stock options, stock appreciation rights and restricted stock units 499 1,184 Denominator for diluted net income per share adjusted weighted-average common shares 191,600 194,955 Basic net income per share $ 0.72 $ 0.94 Diluted net income per share $ 0.72 $ 0.93 26-Weeks Ended June 27, June 28, 2015 2014 Numerator: Numerator for basic and diluted net income per share - net income $ 204,545 $ 300,800 Denominator: Denominator for basic net income per share weighted-average common shares 191,432 194,431 Effect of dilutive securities stock options, stock appreciation rights and restricted stock units 507 1,033 Denominator for diluted net income per share adjusted weighted-average common shares 191,939 195,464 Basic net income per share $ 1.07 $ 1.55 Diluted net income per share $ 1.07 $ 1.54 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Segment Reporting [Abstract] | |
Revenues, Interest Income and Interest Expense, and Income before Income Taxes for Reportable Segments | Net sales, gross profit, and operating income for each of the Companys reportable segments are presented below: Garmin Ltd. And Subsidiaries Net Sales, Gross Proft and Operating Income by Segment (Unaudited) Reportable Segments Outdoor Fitness Marine Auto Aviation Total 13-Weeks Ended June 27, 2015 Net sales $ 110,324 $ 158,649 $ 103,713 $ 298,878 $ 102,266 $ 773,830 Gross profit $ 66,946 $ 88,458 $ 58,577 $ 131,006 $ 74,263 $ 419,250 Operating income $ 37,417 $ 33,070 $ 23,901 $ 44,871 $ 27,405 $ 166,664 13-Weeks Ended June 28, 2014 Net sales $ 106,059 $ 150,678 $ 73,780 $ 350,036 $ 97,295 $ 777,848 Gross profit $ 64,668 $ 98,063 $ 42,536 $ 167,593 $ 71,625 $ 444,485 Operating income $ 35,281 $ 62,872 $ 17,657 $ 74,642 $ 28,302 $ 218,754 26-Weeks Ended June 27, 2015 Net sales $ 186,239 $ 289,644 $ 168,010 $ 515,004 $ 200,327 $ 1,359,224 Gross profit $ 117,166 $ 171,534 $ 94,090 $ 234,809 $ 145,773 $ 763,372 Operating income $ 61,250 $ 67,709 $ 28,468 $ 67,350 $ 53,585 $ 278,362 26-Weeks Ended June 28, 2014 Net sales $ 190,044 $ 250,965 $ 133,783 $ 592,988 $ 193,289 $ 1,361,069 Gross profit $ 115,578 $ 162,148 $ 73,588 $ 281,384 $ 142,621 $ 775,319 Operating income $ 58,964 $ 96,384 $ 21,467 $ 105,206 $ 57,102 $ 339,123 |
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 26-week periods ended June 27, 2015 and June 28, 2014. Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa: Americas APAC EMEA Total June 27, 2015 Net sales to external customers $ 722,317 $ 154,102 $ 482,805 $ 1,359,224 Property and equipment, net $ 287,171 $ 110,524 $ 47,977 $ 445,672 June 28, 2014 Net sales to external customers $ 716,156 $ 123,883 $ 521,030 $ 1,361,069 Property and equipment, net $ 255,422 $ 120,369 $ 52,691 $ 428,482 |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The following reconciliation provides an illustration of changes in the aggregate warranty reserve. 13-Weeks Ended June 27, June 28, 2015 2014 Balance - beginning of period $ 23,866 $ 25,016 Accrual for products sold during the period 10,348 11,806 Expenditures (8,113 ) (9,473 ) Balance - end of period $ 26,101 $ 27,349 26-Weeks Ended June 27, June 28, 2015 2014 Balance - beginning of period $ 27,609 $ 26,767 Accrual for products sold during the period 17,090 21,291 Expenditures (18,598 ) (20,709 ) Balance - end of period $ 26,101 $ 27,349 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
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 June 27, 2015 Total Level 1 Level 2 Level 3 U.S. Treasury securities $ 27,255 $ - $ 27,255 $ - Agency securities 255,200 - 255,200 - Mortgage-backed securities 404,838 - 404,838 - Corporate securities 532,555 - 532,555 - Municipal securities 215,846 - 215,846 - Other 72,718 - 72,718 - Total $ 1,508,412 $ - $ 1,508,412 $ - 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) |
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 June 27, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses-OTTI (2) Gross Unrealized Losses-Other (3) Estimated Fair Value (Net Carrying Amount) U.S. Treasury securities $ 27,194 $ 72 $ - $ (10 ) $ 27,256 Agency securities 261,054 119 (5,477 ) (496 ) 255,200 Mortgage-backed securities 411,376 342 (1,540 ) (5,340 ) 404,838 Corporate securities 537,232 291 (2,354 ) (2,614 ) 532,555 Municipal securities 216,967 318 (21 ) (1,418 ) 215,846 Other 72,750 12 (21 ) (24 ) 72,717 Total $ 1,526,573 $ 1,154 $ (9,413 ) $ (9,902 ) $ 1,508,412 Available-For-Sale Securities as of December 27, 2014 (3) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses-OTTI (2) Gross Unrealized Losses- Other (3) Estimated Fair Value (Net 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 June 27, 2015. As of June 27, 2015 Less than 12 Consecutive Months 12 Consecutive Months or Longer Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value U.S. Treasury securities $ (10 ) $ 6,158 $ - $ - Agency securities $ (519 ) $ 53,678 $ (5,455 ) $ 174,780 Mortgage-backed securities $ (4,337 ) $ 258,964 $ (2,543 ) $ 102,575 Corporate securities $ (2,397 ) $ 291,522 $ (2,571 ) $ 120,916 Municipal securities $ (1,362 ) $ 106,358 $ (77 ) $ 16,005 Other $ (21 ) $ 20,304 $ (24 ) $ 5,205 Total $ (8,646 ) $ 736,984 $ (10,670 ) $ 419,481 |
Amortized Cost and Estimated Fair Value of Marketable Securities, by Contractual Maturity | The amortized cost and estimated fair value of marketable securities at June 27, 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 $ 198,988 $ 199,007 Due after one year through five years 1,009,357 1,001,271 Due after five years through ten years 230,612 223,721 Due after ten years 87,616 84,413 $ 1,526,573 $ 1,508,412 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
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 and the 26-week periods ended June 27, 2015: 13-Weeks Ended June 27, 2015 Foreign Currency Translation Adjustment Gross unrealized losses on available-for-sale securities- OTTI (4) Net unrealized gains (losses) on available-for-sale securities-Other (5) Total Beginning Balance $ 23,629 $ (6,027 ) $ (1,027 ) $ 16,575 Other comprehensive income before reclassification 17,716 (3,387 ) (6,826 ) 7,503 Amounts reclassified from accumulated other comprehensive income - - (3 ) (3 ) Net current-period other comprehensive income 17,716 (3,387 ) (6,829 ) 7,500 Ending Balance $ 41,345 $ (9,414 ) $ (7,856 ) $ 24,075 26-Weeks Ended June 27, 2015 Foreign Currency Translation Adjustment Gross unrealized losses on available-for-sale securities- OTTI (4) Net unrealized gains (losses) on available-for-sale securities-Other (5) Total Beginning Balance $ 20,874 $ (13,031 ) $ (5,272 ) $ 2,571 Other comprehensive income before reclassification 20,471 3,617 (2,258 ) 21,830 Amounts reclassified from accumulated other comprehensive income - - (326 ) (326 ) Net current-period other comprehensive income 20,471 3,617 (2,584 ) 21,504 Ending Balance $ 41,345 $ (9,414 ) $ (7,856 ) $ 24,075 (4) Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than- temporarily impaired. (5) 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 13-week and 26-week periods ended June 27, 2015: 13-Weeks Ended June 27, 2015 Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Unrealized gains (losses) on available-for-sale securities $ 24 Other income (expense) $ (21 ) Income tax (provision) benefit $ 3 Net of tax 26-Weeks Ended June 27, 2015 Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the statement where net income is presented Unrealized gains (losses) on available-for-sale securities $ 364 Other income (expense) $ (38 ) Income tax (provision) benefit $ 326 Net of tax |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 190,974 | $ 161,444 |
Work-in-process | 59,736 | 53,824 |
Finished goods | 244,662 | 244,282 |
Inventory reservers | (36,921) | (39,075) |
Inventory, net of reserves | $ 458,451 | $ 420,475 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Numerator: | ||||
Numerator for basic and diluted net income per share - net income | $ 137,753 | $ 181,983 | $ 204,545 | $ 300,800 |
Denominator: | ||||
Denominator for basic net income per share - weighted-average common shares | 191,101 | 193,771 | 191,432 | 194,431 |
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units | 499 | 1,184 | 507 | 1,033 |
Denominator for diluted net income per share - adjusted weighted-average common shares | 191,600 | 194,955 | 191,939 | 195,464 |
Basic net income per share | $ 0.72 | $ 0.94 | $ 1.07 | $ 1.55 |
Diluted net income per share | $ 0.72 | $ 0.93 | $ 1.07 | $ 1.54 |
Earnings Per Share (Additional
Earnings Per Share (Additional Information) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Net income per share: | ||||
Anti-dilutive stock options, stock appreciation rights and restricted stock units | 3,558 | 2,230 | 3,598 | 2,277 |
Shares issued as a result of exercises of equity awards | 91 | 124 | 128 | 366 |
Shares issued from outstanding Treasury stock ESPP | 214 | 214 |
Segment Information (Net Sales
Segment Information (Net Sales Gross Proft and Operating Income for Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 773,830 | $ 777,848 | $ 1,359,224 | $ 1,361,069 |
Gross profit | 419,250 | 444,485 | 763,372 | 775,319 |
Operating income | 166,664 | 218,754 | 278,362 | 339,123 |
Outdoor [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 110,324 | 106,059 | 186,239 | 190,044 |
Gross profit | 66,946 | 64,668 | 117,166 | 115,578 |
Operating income | 37,417 | 35,281 | 61,250 | 58,964 |
Fitness [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 158,649 | 150,678 | 289,644 | 250,965 |
Gross profit | 88,458 | 98,063 | 171,534 | 162,148 |
Operating income | 33,070 | 62,872 | 67,709 | 96,384 |
Marine [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 103,713 | 73,780 | 168,010 | 133,783 |
Gross profit | 58,577 | 42,536 | 94,090 | 73,588 |
Operating income | 23,901 | 17,657 | 28,468 | 21,467 |
Auto [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 298,878 | 350,036 | 515,004 | 592,988 |
Gross profit | 131,006 | 167,593 | 234,809 | 281,384 |
Operating income | 44,871 | 74,642 | 67,350 | 105,206 |
Aviation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 102,266 | 97,295 | 200,327 | 193,289 |
Gross profit | 74,263 | 71,625 | 145,773 | 142,621 |
Operating income | $ 27,405 | $ 28,302 | $ 53,585 | $ 57,102 |
Segment Information (Net Sale29
Segment Information (Net Sales and Property and Equipment Net by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Dec. 27, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales to external customers | $ 773,830 | $ 777,848 | $ 1,359,224 | $ 1,361,069 | |
Property and equipment, net | 445,672 | 428,482 | 445,672 | 428,482 | $ 430,887 |
Americas [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales to external customers | 722,317 | 716,156 | |||
Property and equipment, net | 287,171 | 255,422 | 287,171 | 255,422 | |
APAC [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales to external customers | 154,102 | 123,883 | |||
Property and equipment, net | 110,524 | 120,369 | 110,524 | 120,369 | |
EMEA [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales to external customers | 482,805 | 521,030 | |||
Property and equipment, net | $ 47,977 | $ 52,691 | $ 47,977 | $ 52,691 |
Warranty Reserves (Changes in A
Warranty Reserves (Changes in Aggregate Warranty Reserve) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Product Warranties Disclosures [Abstract] | ||||
Balance - beginning of period | $ 23,866 | $ 25,016 | $ 27,609 | $ 26,767 |
Accrual for products sold during the period | 10,348 | 11,806 | 17,090 | 21,291 |
Expenditures | (8,113) | (9,473) | (18,598) | (20,709) |
Balance - end of period | $ 26,101 | $ 27,349 | $ 26,101 | $ 27,349 |
Commitments and Contingencies (
Commitments and Contingencies (Additional Information) (Details) - Jun. 27, 2015 - USD ($) $ in Thousands | Total |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments to make purchases, time period | 5 years |
Purchase Commitment, Remaining Minimum Amount Committed | $ 333,281 |
Prepaid Supplies | $ 43,000 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 1,637 | $ 5,190 | $ 6,924 | $ 10,985 |
Increase (Decrease) in Income Taxes | 9,068 | 5,179 | ||
Income Tax Expense Benefit | $ 35,805 | $ 26,737 | $ 45,208 | $ 50,387 |
Effective Income Tax Rate Reconciliation, Percent | 20.60% | 12.80% | 18.10% | 14.30% |
Marketable Securities (Availabl
Marketable Securities (Available for Sale Securities Measured at Estimated Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 | [1] |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | $ 1,508,412 | $ 1,575,333 | |
Fair Value Inputs Level 1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 1,508,412 | 1,575,333 | |
Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
US Treasury Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 27,255 | 30,144 | |
US Treasury Securities [Member] | Fair Value Inputs Level 1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
US Treasury Securities [Member] | Fair Value Inputs Level 2 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 27,255 | 30,144 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Agency Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 255,200 | 428,320 | |
Agency Securities [Member] | Fair Value Inputs Level 1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Agency Securities [Member] | Fair Value Inputs Level 2 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 255,200 | 428,320 | |
Agency Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Mortgage Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 404,838 | 324,307 | |
Mortgage Backed Securities [Member] | Fair Value Inputs Level 1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Mortgage Backed Securities [Member] | Fair Value Inputs Level 2 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 404,838 | 324,307 | |
Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Corporate Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 532,555 | 594,402 | |
Corporate Securities [Member] | Fair Value Inputs Level 1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Corporate Securities [Member] | Fair Value Inputs Level 2 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 532,555 | 594,402 | |
Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Municipal Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 215,846 | 125,410 | |
Municipal Securities [Member] | Fair Value Inputs Level 1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Municipal Securities [Member] | Fair Value Inputs Level 2 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 215,846 | 125,410 | |
Municipal Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Other [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | $ 72,718 | $ 72,750 | |
Other [Member] | Fair Value Inputs Level 1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | |||
Other [Member] | Fair Value Inputs Level 2 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | $ 72,718 | $ 72,750 | |
Other [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Total | |||
[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) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 27, 2015 | Dec. 27, 2014 | |||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $ 1,526,573 | $ 1,594,764 | [1] | |
Gross Unrealized Gains | 1,154 | 2,020 | [1] | |
Gross Unrealized Losses-OTTI | [2] | (9,413) | (13,031) | [1] |
Gross Unrealized Losses-Other | [1] | (9,902) | (8,420) | [2] |
Estimated Fair Value (Net Carrying Amount) | 1,508,412 | 1,575,333 | [3] | |
US Treasury Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 27,194 | 30,185 | [1] | |
Gross Unrealized Gains | $ 72 | 26 | [1] | |
Gross Unrealized Losses-OTTI | [2] | (25) | [1] | |
Gross Unrealized Losses-Other | [1] | $ (10) | (42) | [2] |
Estimated Fair Value (Net Carrying Amount) | 27,255 | 30,144 | [3] | |
Agency Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 261,054 | 436,817 | [1] | |
Gross Unrealized Gains | 119 | 169 | [1] | |
Gross Unrealized Losses-OTTI | [2] | (5,477) | (8,259) | [1] |
Gross Unrealized Losses-Other | [1] | (496) | (407) | [2] |
Estimated Fair Value (Net Carrying Amount) | 255,200 | 428,320 | [3] | |
Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 411,376 | 329,048 | [1] | |
Gross Unrealized Gains | 342 | 580 | [1] | |
Gross Unrealized Losses-OTTI | [2] | (1,540) | (1,813) | [1] |
Gross Unrealized Losses-Other | [1] | (5,340) | (3,508) | [2] |
Estimated Fair Value (Net Carrying Amount) | 404,838 | 324,307 | [3] | |
Corporate Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 537,232 | 600,674 | [1] | |
Gross Unrealized Gains | 291 | 689 | [1] | |
Gross Unrealized Losses-OTTI | [2] | (2,354) | (2,874) | [1] |
Gross Unrealized Losses-Other | [1] | (2,614) | (4,087) | [2] |
Estimated Fair Value (Net Carrying Amount) | 532,555 | 594,402 | [3] | |
Municipal Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 216,967 | 125,183 | [1] | |
Gross Unrealized Gains | 318 | 497 | [1] | |
Gross Unrealized Losses-OTTI | [2] | (21) | (48) | [1] |
Gross Unrealized Losses-Other | [1] | (1,418) | (222) | [2] |
Estimated Fair Value (Net Carrying Amount) | 215,846 | 125,410 | [3] | |
Other [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 72,750 | 72,857 | [1] | |
Gross Unrealized Gains | 12 | 59 | [1] | |
Gross Unrealized Losses-OTTI | [2] | (21) | (12) | [1] |
Gross Unrealized Losses-Other | [1] | (24) | (154) | [2] |
Estimated Fair Value (Net Carrying Amount) | $ 72,718 | $ 72,750 | [3] | |
[1] | Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired. | |||
[2] | Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. | |||
[3] | 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 (Schedule
Marketable Securities (Schedule of Available-for-sale-securities Unrealized Loss on Investments) (Details) - Jun. 27, 2015 - USD ($) $ in Thousands | Total |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | $ (8,646) |
Gross Unrealized Losses 12 Consecutive Months or Longer | (10,670) |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 736,984 |
Fair Value 12 Consecutive Months or Longer | 419,481 |
US Treasury Securities [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | (10) |
Gross Unrealized Losses 12 Consecutive Months or Longer | 0 |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 6,158 |
Fair Value 12 Consecutive Months or Longer | 0 |
Agency Securities [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | (519) |
Gross Unrealized Losses 12 Consecutive Months or Longer | (5,455) |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 53,678 |
Fair Value 12 Consecutive Months or Longer | 174,780 |
Mortgage Backed Securities [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | (4,337) |
Gross Unrealized Losses 12 Consecutive Months or Longer | (2,543) |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 258,964 |
Fair Value 12 Consecutive Months or Longer | 102,575 |
Corporate Securities [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | (2,397) |
Gross Unrealized Losses 12 Consecutive Months or Longer | (2,571) |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 291,522 |
Fair Value 12 Consecutive Months or Longer | 120,916 |
Municipal Securities [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | (1,362) |
Gross Unrealized Losses 12 Consecutive Months or Longer | (77) |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 106,358 |
Fair Value 12 Consecutive Months or Longer | 16,005 |
Other [Member] | |
Gross Unrealized Losses | |
Gross Unrealized Losses Less than 12 Consecutive Months | (21) |
Gross Unrealized Losses 12 Consecutive Months or Longer | (24) |
Fair Value | |
Fair Value Less than 12 Consecutive Months | 20,304 |
Fair Value 12 Consecutive Months or Longer | $ 5,205 |
Marketable Securities (Amortize
Marketable Securities (Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 | [1] |
Cost | |||
Due in one year or less | $ 198,988 | ||
Due after one year through five years | 1,009,357 | ||
Due after five years through ten years | 230,612 | ||
Due after ten years | 87,616 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total | 1,526,573 | ||
Estimated Fair Value | |||
Due in one year or less | 199,007 | ||
Due after one year through five years | 1,001,271 | ||
Due after five years through ten years | 223,721 | ||
Due after ten years | 84,413 | ||
Estimated Fair Value (Net Carrying Amount) | $ 1,508,412 | $ 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 (Addition
Marketable Securities (Additional Information) (Details) - Jun. 27, 2015 - USD ($) $ in Thousands | Total |
Investments, Debt and Equity Securities [Abstract] | |
Held To Maturity Securities Continuous Unrealized Loss Position Percentage | 56.00% |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 1,156,465 |
Available For Sale Securities Continuous Unrealized Loss Position Amortization Cost | $ 1,175,780 |
Share Repurchase Plan (Addition
Share Repurchase Plan (Additional Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2015 | Feb. 13, 2015 | |
Equity [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 300,000 | |
Share repurchase program, shares repurchased | 1,221 | |
Share repurchase program, shares repurchased value | $ 57,295 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 242,705 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | ||
Foreign Currency Translation Adjustment | |||||
Balance - beginning of period | $ 23,629 | $ 20,874 | |||
Other comprehensive income before reclassification | 17,716 | $ 22,757 | 20,471 | $ 7,239 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |||
Net current-period other comprehensive income | 17,716 | 20,471 | |||
Balance - end of period | 41,345 | 41,345 | |||
Gross unrealized losses on available-for-sale securities-OTTI | |||||
Balance - beginning of period | [1] | (6,027) | (13,031) | ||
Other comprehensive income before reclassification | [1] | (3,387) | 3,617 | ||
Amounts reclassified from accumulated other comprehensive income | [1] | 0 | 0 | ||
Net current-period other comprehensive income | [1] | (3,387) | 3,617 | ||
Balance - end of period | [1] | (9,414) | (9,414) | ||
Net unrealized gains (losses) on available-for-sale securities-Other | |||||
Balance - beginning of period | [2] | (1,027) | (5,272) | ||
Other comprehensive income before reclassification | [2] | (6,826) | (2,258) | ||
Amounts reclassified from accumulated other comprehensive income | [2] | (3) | (326) | ||
Net current-period other comprehensive income | [2] | (6,829) | (2,584) | ||
Balance - end of period | [2] | (7,856) | (7,856) | ||
Total | |||||
Balance - beginning of period | 16,575 | 2,571 | |||
Other comprehensive income before reclassification | 7,503 | 21,830 | |||
Amounts reclassified from accumulated other comprehensive income | (3) | (326) | |||
Net current-period other comprehensive income | 7,500 | 21,504 | |||
Balance - end of period | $ 24,075 | $ 24,075 | |||
[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 Comprehensi40
Accumulated Other Comprehensive Income (Reclassifications Out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other income (expense) | $ 6,894 | $ (10,034) | $ (28,609) | $ 12,064 |
Income tax (provision) benefit | (35,805) | $ (26,737) | (45,208) | $ (50,387) |
Amount reclassified from accumulated other comprehensive income [Member] | Unrealized gains (losses) on available-for-sale securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other income (expense) | 24 | 364 | ||
Income tax (provision) benefit | (21) | (38) | ||
Net of tax | $ 3 | $ 326 |