Garmin Ltd. And Subsidiaries
Consolidated Balance Sheets
(In thousands, except share information)
December 29, December 30,
2007 2006
Assets
Current assets:
Cash and cash equivalents $707,689 $337,321
Marketable securities 37,551 73,033
Accounts receivable 952,513 403,524
Inventories, net 505,467 271,008
Deferred income taxes 107,376 55,996
Prepaid expenses and other
current assets 22,179 28,202
Total current assets 2,332,775 1,169,084
Property and equipment, net 374,147 250,988
Restricted cash 1,554 1,525
Marketable securities 386,954 407,843
License agreements, net 14,672 3,307
Other intangible assets 181,358 64,273
Total assets $3,291,460 $1,897,020
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $341,053 $88,375
Salaries and benefits payable 31,696 16,268
Accrued warranty costs 71,636 37,639
Accrued sales program costs 142,360 32,560
Other accrued expenses 138,244 68,172
Income taxes payable 76,895 94,668
Total current liabilities 801,883 337,682
Long-term debt, less current portion - 248
Deferred income taxes 11,935 1,191
Other liabilities 127,028 -
Stockholders' equity:
Common stock 1,086 1,082
Additional paid-in capital 132,264 83,438
Retained earnings 2,171,134 1,478,654
Accumulated other comprehensive
gain/(loss) 46,130 (5,275)
Total stockholders' equity 2,350,614 1,557,899
Total liabilities and stockholders'
equity $3,291,460 $1,897,020
Garmin Ltd. And Subsidiaries
Consolidated Statements of Income
(In Thousands, Except Per Share Information)
13-Weeks Ended Fiscal Year Ended
December December December December
29, 2007 30, 2006 29, 2007 30, 2006
Net sales $1,217,021 $611,224 $3,180,319 $1,774,000
Cost of goods sold 708,036 306,771 1,717,064 891,614
Gross profit 508,985 304,453 1,463,255 882,386
Selling, general and
administrative expenses 148,140 74,346 396,498 214,513
Research and development
expense 47,543 31,209 159,406 113,314
195,683 105,555 555,904 327,827
Operating income 313,302 198,898 907,351 554,559
Other income (expense):
Interest income 9,999 10,432 41,995 35,897
Interest expense 121 (27) (207) (41)
Foreign currency 19,471 (9,790) 22,964 596
Other 5,210 38 6,170 3,543
34,801 653 70,922 39,995
Income before income taxes 348,103 199,551 978,273 594,554
Income tax provision: 40,836 19,206 123,262 80,431
Net income $307,267 $180,345 $855,011 $514,123
Basic net income per share $1.42 $0.84 $3.95 $2.38
Diluted net income per share $1.39 $0.82 $3.89 $2.35
Garmin Ltd. And Subsidiaries
Consolidated Statements of Cash Flows
(In Thousands)
Fiscal Year Ended
December 29, December 30,
2007 2006
Operating Activities:
Net income $855,011 $514,123
Adjustments to reconcile net income
to net cash provided
by operating activities:
Depreciation 35,524 21,535
Amortization 28,513 22,940
Gain on sale of property and
equipment 560 67
Provision for doubtful accounts 3,617 955
Provision for obsolete and slow-
moving inventories 34,975 23,245
Foreign currency transaction
gains/losses (926) (344)
Deferred income taxes (57,843) (35,060)
Stock appreciation rights 22,164 11,913
Realized gains on marketable
securities (5,101) (3,852)
Changes in operating assets and
liabilities, net of acquisition:
Accounts receivable (477,108) (230,111)
Inventories (224,180) (92,708)
Prepaid expenses and other
current assets 6,213 (4,357)
Purchase of licenses (23,569) (2,950)
Accounts payable 174,781 10,187
Accrued expenses 253,909 97,167
Income taxes payable 55,548 29,105
Net cash provided by operating
activities 682,088 361,855
Investing activities:
Purchases of property and equipment (156,778) (92,906)
Proceeds from sale of property and
equipment 5 76
Purchase of intangible assets (2,918) (3,115)
Purchase of marketable securities (1,672,041) (453,085)
Sales of marketable securities 1,784,816 359,313
Purchase of Dynastream - (36,499)
Net cash paid for acquisition of
businesses and other intangibles (128,751) -
Change in restricted cash (29) (169)
Net cash used in investing activities (175,696) (226,385)
Financing activities:
Dividends (162,530) (107,923)
Payment on long-term debt (248) (11)
Proceeds from issuance of common
stock through
stock purchase plan 5,730 3,569
Proceeds from issuance of common
stock from
exercise of stock options 11,278 12,505
Tax benefit related to stock option
exercise 17,434 9,660
Purchase of common stock (7,780) (50,450)
Net cash used in financing activities (136,116) ($132,650)
Effect of exchange rate changes on
cash and cash equivalents 92 149
Net increase/(decrease) in cash and
cash equivalents 370,368 2,969
Cash and cash equivalents at
beginning of year 337,321 334,352
Cash and cash equivalents at end of year $707,689 $337,321
Garmin Ltd. And Subsidiaries
Revenue, Gross Profit, and Operating Income by Segment (Unaudited)
Reporting Segments
Outdoor/ Auto/
Fitness Marine Mobile Aviation Total
52-Weeks Ended
December 29, 2007
Net sales $339,741 $203,399 $2,342,184 $294,995 $3,180,319
Gross profit $184,654 $110,169 $973,206 $195,226 $1,463,255
Operating income $120,233 $67,376 $608,751 $110,991 $907,351
52-Weeks Ended
December 30, 2006
Net sales $285,362 $166,639 $1,089,093 $232,906 $1,774,000
Gross profit $163,638 $92,952 $475,191 $150,605 $882,386
Operating income $116,766 $60,525 $292,951 $84,317 $554,559
Web site: http://www.garmin.com/
