Garmin Reports Strong First Quarter 2016 Sales
Garmin, the Garmin logo, the Garmin delta, Approach, GPSMap, vívoactive,
vívofit and fēnix® are trademarks of Garmin Ltd. or its subsidiaries and
are registered in one or more countries, including the U.S.; Garmin
Drive, Garmin Elevate, and TruSwing are trademarks of, or exclusively
licensed to, Garmin Ltd. or its subsidiaries. All other brands, product
names, company names, trademarks and service marks are the properties of
their respective owners. All rights reserved.
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Garmin Ltd. And Subsidiaries
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Condensed Consolidated Statements of Income (Unaudited)
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(In thousands, except per share information)
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13-Weeks Ended
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Mar 26,
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Mar 28,
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2016
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2015
|
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Net sales
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$624,040
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$585,394
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Cost of goods sold
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284,190
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241,272
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Gross profit
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339,850
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344,122
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Advertising expense
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32,233
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27,672
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Selling, general and administrative expense
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95,610
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98,750
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Research and development expense
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108,204
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106,002
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Total operating expense
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236,047
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232,424
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Operating income
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103,803
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111,698
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Other income (expense):
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Interest income
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7,428
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8,024
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Foreign currency (losses)
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(4,839
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)
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(44,264
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)
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Other income
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1,155
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738
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Total other income (expense)
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3,744
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(35,502
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)
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Income before income taxes
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107,547
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76,196
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Income tax provision
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19,455
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9,403
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Net income
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$88,092
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$66,793
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Net income per share:
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Basic
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$0.46
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$0.35
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Diluted
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$0.46
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$0.35
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Weighted average common
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shares outstanding:
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Basic
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189,497
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191,762
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Diluted
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189,651
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192,341
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Garmin Ltd. And Subsidiaries
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Condensed Consolidated Balance Sheets
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(In thousands, except per share information)
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(Unaudited)
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Mar 26,
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Dec 26,
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2016
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2015
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Assets
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Current assets:
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Cash and cash equivalents
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$857,679
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$833,070
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Marketable securities
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198,147
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215,161
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Accounts receivable, net
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408,283
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531,481
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Inventories, net
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517,767
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500,554
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Deferred costs
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50,861
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49,176
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Prepaid expenses and other current assets
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96,396
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81,645
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Total current assets
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2,129,133
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2,211,087
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Property and equipment, net
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448,967
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446,089
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Marketable securities
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1,279,799
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1,343,387
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Restricted cash
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261
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259
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Noncurrent deferred income tax
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117,467
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116,518
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Noncurrent deferred costs
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39,663
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38,769
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Intangible assets, net
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306,303
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245,552
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Other assets
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88,731
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97,730
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Total assets
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$4,410,324
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$4,499,391
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Liabilities and Stockholders' Equity
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Current liabilities:
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Accounts payable
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$137,162
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$178,905
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Salaries and benefits payable
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75,862
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70,601
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Accrued warranty costs
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31,407
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30,449
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Accrued sales program costs
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49,236
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67,613
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Deferred revenue
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154,965
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164,982
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Accrued royalty costs
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25,737
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30,310
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Accrued advertising expense
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20,185
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33,547
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Other accrued expenses
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75,217
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74,926
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Income taxes payable
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14,524
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21,674
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Dividend payable
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96,425
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192,991
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Total current liabilities
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680,720
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865,998
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Deferred income taxes
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60,915
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56,210
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Non-current income taxes
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103,035
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101,689
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Non-current deferred revenue
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126,731
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128,731
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Other liabilities
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1,676
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1,637
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Stockholders' equity:
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Shares, CHF 10 par value, 208,077 shares authorized and issued;
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189,193 shares outstanding at March 26, 2016
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and 189,722 shares outstanding at December 26, 2015
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1,797,435
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1,797,435
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Additional paid-in capital
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70,413
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62,239
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Treasury stock
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(434,346
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)
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(414,637
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)
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Retained earnings
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2,018,609
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1,930,517
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Accumulated other comprehensive income
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(14,864
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)
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(30,428
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)
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Total stockholders' equity
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3,437,247
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3,345,126
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Total liabilities and stockholders' equity
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4,410,324
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$4,499,391
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Garmin Ltd. And Subsidiaries
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Condensed Consolidated Statements of Cash Flows (Unaudited)
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(In thousands)
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13-Weeks Ended
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Mar 26,
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Mar 28,
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2016
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2015
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Operating Activities:
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Net income
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$88,092
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$66,793
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Adjustments to reconcile net income to net cash
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provided by operating activities:
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Depreciation
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13,078
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12,280
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Amortization
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7,115
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6,584
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Loss on sale or disposal of property and equipment
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38
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24
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Provision for doubtful accounts
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285
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(1,080
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)
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Deferred income taxes
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3,906
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(3,647
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)
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Unrealized foreign currency (gain) loss
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(5,412
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)
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47,877
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Provision for obsolete and slow moving inventories
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8,026
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4,344
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Stock compensation expense
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8,172
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7,769
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Realized gain on marketable securities
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(452
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)
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(340
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)
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Changes in operating assets and liabilities:
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Accounts receivable
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130,036
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129,448
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Inventories
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(18,873
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)
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(56,897
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)
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Other current and non-current assets
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(3,937
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)
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(11,537
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)
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Accounts payable
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(45,515
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)
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(25,957
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)
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Other current and non-current liabilities
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(31,606
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)
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(73,408
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)
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Deferred revenue
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(12,337
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)
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(29,870
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)
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Deferred cost
|
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(2,496
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)
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6,470
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Income taxes payable
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(8,733
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)
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2,802
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Net cash provided by operating activities
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129,387
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81,655
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Investing activities:
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Purchases of property and equipment
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(13,908
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)
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(18,143
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)
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Proceeds from sale of property and equipment
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-
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664
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Purchase of intangible assets
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(1,716
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)
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(717
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)
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Purchase of marketable securities
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(151,070
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)
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(254,741
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)
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Redemption of marketable securities
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237,464
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308,751
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Change in restricted cash
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(2
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)
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(5
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)
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Acquisitions, net of cash acquired
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(62,137
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)
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(12,632
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)
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Net cash provided by investing activities
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8,631
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|
|
23,177
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Financing activities:
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Dividends paid
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(96,566
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)
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(91,964
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)
|
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Purchase of treasury stock under share repurchase plan
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|
(19,796
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)
|
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(16,260
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)
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Purchase of treasury stock related to equity awards
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|
(16
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)
|
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(89
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)
|
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Proceeds from issuance of treasury stock related to equity awards
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|
103
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|
|
246
|
|
|
Tax benefit from issuance of equity awards
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|
2
|
|
|
399
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|
|
Net cash used in financing activities
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|
|
(116,273
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)
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(107,668
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)
|
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|
|
|
|
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|
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Effect of exchange rate changes on cash and cash equivalents
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|
2,864
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|
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(22,044
|
)
|
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|
|
|
|
|
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Net increase (decrease) in cash and cash equivalents
|
|
|
24,609
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|
|
(24,880
|
)
|
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Cash and cash equivalents at beginning of period
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|
833,070
|
|
|
1,196,268
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Cash and cash equivalents at end of period
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$857,679
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|
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$1,171,388
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|
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Net Sales, Gross Profit, and Operating Income by Segment
(Unaudited)
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(In thousands)
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Reporting Segments
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Outdoor
|
Fitness
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Marine
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Auto
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Aviation
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Total
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|
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13-Weeks Ended March 26, 2016
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|
|
|
|
|
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Net sales
|
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|
$96,827
|
$142,418
|
$82,880
|
$195,599
|
$106,316
|
$624,040
|
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Gross profit
|
|
|
$58,932
|
$72,294
|
$44,149
|
$86,144
|
$78,331
|
$339,850
|
|
Operating income
|
|
|
$27,885
|
$16,573
|
$10,293
|
$18,566
|
$30,486
|
$103,803
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended March 28, 2015 (3)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$72,815
|
$130,994
|
$64,297
|
$219,226
|
$98,062
|
$585,394
|
|
Gross profit
|
|
|
$49,064
|
$83,075
|
$35,513
|
$104,959
|
$71,511
|
$344,122
|
|
Operating income
|
|
|
$23,770
|
$34,638
|
$4,566
|
$22,544
|
$26,180
|
$111,698
|
|
|
|
|
|
|
|
|
|
|
|
(3) Action camera related operating results for the 13-weeks ended
March 28, 2015 have been recast from the Outdoor segment to
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the Auto segment to conform to the current year presentation.
|
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|
|
|
|
|
|
|
|
|
|
|
|
Garmin Ltd. And Subsidiaries
|
|
Net Sales by Geography (Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
13-Weeks Ended
|
|
|
|
Mar 26,
|
|
Mar 28,
|
Yr over Yr
|
|
|
|
2016
|
|
2015
|
Change
|
|
Net sales
|
|
$624,040
|
|
$585,394
|
7%
|
|
Americas
|
|
317,957
|
|
305,261
|
4%
|
|
EMEA
|
|
225,728
|
|
208,351
|
8%
|
|
APAC
|
|
80,355
|
|
71,782
|
12%
|
|
|
|
|
|
|
|
|
EMEA - Europe, Middle East and Africa; APAC - Asia Pacific
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|
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|
