Revenue Standard Adoption

We adopted the new revenue standard in the first quarter of 2018. The prior periods presented have been restated to reflect adoption of this new standard.

Webcast Information/Forward-Looking Statements:

The information for Garmin Ltd.’s earnings call is as follows:

			When:		Wednesday, August 1, 2018 at 10:30 a.m. Eastern
			Where:		http://www.garmin.com/en-US/company/investors/events/
			How:		Simply log on to the web at the address above or call to listen in at 855-757-3897

An archive of the live webcast will be available until July 31, 2019 on the Garmin website at www.garmin.com. To access the replay, click on the Investor Relations link and click over to the Events Calendar page.

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, currency movements, expenses, pricing, new products to be introduced in 2018, statements relating to possible future dividends and the Company’s plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 30, 2017 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2017 Form 10-K can be downloaded from https://www.garmin.com/en-US/company/investors/sec/form-10-K/.

Non-GAAP Financial Measures

This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.

Garmin, the Garmin logo, the Garmin delta, vívoactive, Edge, Navionics, fēnix and inReach are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S.; Garmin Pay, GFC, G3000H, Panoptix LiveScope and Varia are trademarks of 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.

Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)
		13-Weeks Ended							26-Weeks Ended
		June 30,			July 1,				June 30,			July 1,
		2018			2017				2018			2017
Net sales		$	894,452		$	831,486			$	1,605,325		$	1,472,996
Cost of goods sold			371,182			347,356				655,520			616,060
Gross profit			523,270			484,130				949,805			856,936
Advertising expense			43,549			42,009				68,861			73,533
Selling, general and administrative expense			120,500			105,251				237,564			207,303
Research and development expense			141,713			127,248				283,670			249,450
Total operating expense			305,762			274,508				590,095			530,286
Operating income			217,508			209,622				359,710			326,650
Other income (expense):
Interest income			10,995			9,281				21,222			17,724
Foreign currency gains (losses)			2,647			15,110				3,463			(22,387	)
Other income			4,918			314				5,653			715
Total other income (expense)			18,560			24,705				30,338			(3,948	)
Income before income taxes			236,068			234,327				390,048			322,702
Income tax provision (benefit)			45,726			57,348				70,333			(92,680	)
Net income		$	190,342		$	176,979			$	319,715		$	415,382
Net income per share:
Basic		$	1.01		$	0.94			$	1.70		$	2.21
Diluted		$	1.00		$	0.94			$	1.69		$	2.20
Weighted average common
shares outstanding:
Basic			188,542			187,757				188,432			187,974
Diluted			189,461			188,492				189,377			188,691

Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except per share information)
		June 30,					December 30,
		2018					2017
Assets
Current assets:
Cash and cash equivalents		$	946,656				$	891,488
Marketable securities			173,318					161,687
Accounts receivable, net			533,076					590,882
Inventories			501,490					517,644
Deferred costs			31,924					30,525
Prepaid expenses and other current assets			137,118					153,912
Total current assets			2,323,582					2,346,138
Property and equipment, net			637,245					595,684
Restricted cash			211					271
Marketable securities			1,302,447					1,260,033
Deferred income taxes			188,101					195,981
Noncurrent deferred costs			30,663					33,029
Intangible assets, net			409,459					409,801
Other assets			97,012					107,352
Total assets		$	4,988,720				$	4,948,289
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	166,499				$	169,640
Salaries and benefits payable			95,969					102,802
Accrued warranty costs			38,429					36,827
Accrued sales program costs			65,477					93,250
Deferred revenue			98,526					103,140
Accrued royalty costs			28,209					32,204
Accrued advertising expense			29,059					30,987
Other accrued expenses			66,776					93,652
Income taxes payable			40,016					33,638
Dividend payable			300,187					95,975
Total current liabilities			929,147					792,115
Deferred income taxes			74,092					76,612
Noncurrent income taxes			140,584					138,295
Noncurrent deferred revenue			84,156					87,060
Other liabilities			1,860					1,788
Stockholders' equity:
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 188,797 shares
outstanding at June 30, 2018 and 188,189 shares outstanding at December 30, 2017			17,979					17,979
Additional paid-in capital			1,828,515					1,828,386
Treasury stock			(433,959	)				(468,818	)
Retained earnings			2,336,614					2,418,444
Accumulated other comprehensive income			9,732					56,428
Total stockholders' equity			3,758,881					3,852,419
Total liabilities and stockholders' equity		$	4,988,720				$	4,948,289

Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
			26-Weeks Ended
			June 30,					July 1,
			2018					2017
Operating activities:
Net income			$	319,715				$	415,382
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation			31,800					29,558
	Amortization			16,420					13,273
	Gain on sale or disposal of property and equipment			(1,042	)				(56	)
	Provision for doubtful accounts			616					351
	Provision for obsolete and slow moving inventories			11,725					11,072
	Unrealized foreign currency loss			2,401					26,325
	Deferred income taxes			11,000					(159,384	)
	Stock compensation expense			27,747					20,385
	Realized losses on marketable securities			231					584
Changes in operating assets and liabilities, net of acquisitions:
	Accounts receivable			48,099					23,785
	Inventories			(4,666	)				(34,621	)
	Other current and non-current assets			(4,841	)				(6,328	)
	Accounts payable			1,618					(20,942	)
	Other current and non-current liabilities			(49,237	)				(48,162	)
	Deferred revenue			(7,483	)				(15,637	)
	Deferred costs			962					2,890
	Income taxes payable			32,998					5,352
Net cash provided by operating activities				438,063					263,827
Investing activities:
Purchases of property and equipment				(93,072	)				(39,812	)
Proceeds from sale of property and equipment				1,282					121
Purchase of intangible assets				(2,452	)				(6,336	)
Purchase of marketable securities				(209,387	)				(243,880	)
Redemption of marketable securities				127,152					278,719
Acquisitions, net of cash acquired				(9,417	)				(7,500	)
Net cash used in investing activities				(185,894	)				(18,688	)
Financing activities:
Dividends				(196,086	)				(191,691	)
Proceeds from issuance of treasury stock related to equity awards				14,142					10,316
Purchase of treasury stock related to equity awards				(6,900	)				(3,582	)
Purchase of treasury stock under share repurchase plan				-					(63,957	)
Net cash used in financing activities				(188,844	)				(248,914	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash				(8,217	)				16,456
Net increase in cash, cash equivalents, and restricted cash				55,108					12,681
Cash, cash equivalents, and restricted cash at beginning of period				891,759					846,996
Cash, cash equivalents, and restricted cash at end of period			$	946,867				$	859,677

Garmin Ltd. And Subsidiaries
Net Sales, Gross Profit and Operating Income by Segment (Unaudited)
(in thousands)
			Reportable Segments
			Outdoor			Fitness			Marine			Auto			Aviation			Total
13-Weeks Ended June 30, 2018
Net sales			$	201,640		$	225,095		$	134,583		$	180,128		$	153,006		$	894,452
Gross profit				128,872			126,431			78,785			75,452			113,730			523,270
Operating income				71,916			52,548			27,768			12,612			52,664			217,508
13-Weeks Ended July 1, 2017
Net sales			$	194,776		$	181,022		$	108,545		$	223,083		$	124,060		$	831,486
Gross profit				127,813			102,139			62,368			99,309			92,501			484,130
Operating income				74,284			37,487			24,295			34,198			39,358			209,622

			Garmin Ltd. And Subsidiaries
			Net Sales by Geography (Unaudited)
			(In thousands)
					13-Weeks Ended											26-Weeks Ended
					June 30,				July 1,			Yr over Yr				June 30,				July 1,			Yr over Yr
					2018				2017			Change				2018				2017			Change
			Net sales		$	894,452			$	831,486		8	%			$	1,605,325			$	1,472,996		9	%
			Americas			437,116				401,409		9	%				783,091				726,038		8	%
			EMEA			309,116				314,649		-2	%				555,029				539,984		3	%
			APAC			148,220				115,428		28	%				267,205				206,974		29	%
			EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and Australian Continent

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