Pro forma net income (earnings) per share
Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company’s performance between periods.
| Garmin Ltd. And Subsidiaries | ||||||||||||||||||
| Pro Forma Net Income (Earnings) Per Share | ||||||||||||||||||
| (in thousands, except per share information) | ||||||||||||||||||
| 13-Weeks Ended | 14-Weeks Ended | 52-weeks Ended | 53-weeks Ended | |||||||||||||||
| December 30, | December 31, | December 30, | December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| Net income (GAAP) | $ | 138,780 | $ | 136,605 | $ | 694,955 | $ | 510,814 | ||||||||||
| Foreign currency losses (1) | 8,772 | 1,648 | 22,579 | 31,651 | ||||||||||||||
| Tax effect of foreign currency losses (2) | (1,829 | ) | (312 | ) | (4,791 | ) | (5,974 | ) | ||||||||||
| Discrete tax items (3) | 4,066 | - | (157,414 | ) | - | |||||||||||||
| Net income (Pro Forma) | $ | 149,789 | $ | 137,941 | $ | 555,329 | $ | 536,491 | ||||||||||
| Net income per share (GAAP): | ||||||||||||||||||
| Basic | $ | 0.74 | $ | 0.73 | $ | 3.70 | $ | 2.71 | ||||||||||
| Diluted | $ | 0.73 | $ | 0.72 | $ | 3.68 | $ | 2.70 | ||||||||||
| Net income per share (Pro Forma): | ||||||||||||||||||
| Basic | $ | 0.80 | $ | 0.73 | $ | 2.96 | $ | 2.84 | ||||||||||
| Diluted | $ | 0.79 | $ | 0.73 | $ | 2.94 | $ | 2.83 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||
| Basic | 187,607 | 188,233 | 187,828 | 188,818 | ||||||||||||||
| Diluted | 188,915 | 189,171 | 188,732 | 189,343 | ||||||||||||||
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(1) |
The majority of the Company’s consolidated foreign currency losses are driven by movements in the Taiwan Dollar, Euro, and British Pound Sterling in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at one of the Company’s subsidiaries. However, there is minimal cash impact from such foreign currency losses. |
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(2) |
The tax effect of foreign currency losses was calculated using the pro forma effective tax rate of 20.9% for the quarter and 21.2% for the fiscal year ended December 30, 2017, respectively, and an effective tax rate of 19.0% for the quarter and 18.9% for the fiscal year ended December 31, 2016, respectively. |
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(3) |
The discrete tax items are discussed in the pro forma effective tax rate section. |
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