Garmin Reports Fourth Quarter Results with Continued Strength in Outdoor/Fitness, Aviation and Marine Businesses

Free cash flow

Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow less capital expenditures for property and equipment.

The following table contains a reconciliation of GAAP net cash provided by operating activities to free cash flow.

Garmin Ltd. And Subsidiaries
Free Cash Flow
(in thousands)
     
13-Weeks Ended 52-weeks Ended
December 25, December 26, December 25, December 26,
2010   2009 2010   2009
 
Net cash provided by operating activities $ 184,422 $ 245,901 $ 770,637 $ 1,094,456
Less: purchases of property and equipment   ($9,249 )     ($13,758 )   ($32,232 )     ($49,199 )
Free Cash Flow $ 175,173     $ 232,143   $ 738,405     $ 1,045,257  
 

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