The following table illustrates the net effect of deferred revenues and costs associated with products that include lifetime maps, connected services and premium traffic. These revenues and costs are being amortized over the estimated economic lives of the products. Additional details are available in the Annual Report on Form 10-K for the year ended December 25, 2010 that will be filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983) today.
Garmin Ltd. And Subsidiaries | ||||||||||||||||
Net Deferred Revenue Impact (Unaudited) | ||||||||||||||||
(In thousands, except per share information) | ||||||||||||||||
13-Weeks Ended | 52-Weeks Ended | |||||||||||||||
December 25, | December 26, | December 25, | December 26, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales | ($64,670 | ) | $ | (21,511 | ) | $ | (131,303 | ) | $ | (66,484 | ) | |||||
Cost of goods sold | (21,545 | ) | (2,782 | ) | (31,428 | ) | (13,310 | ) | ||||||||
Gross profit | (43,125 | ) | (18,729 | ) | (99,875 | ) | (53,174 | ) | ||||||||
Operating income | (43,125 | ) | (18,729 | ) | (99,875 | ) | (53,174 | ) | ||||||||
Income tax provision based on normalized tax effects | (6,483 | ) | (884 | ) | (15,814 | ) | (6,881 | ) | ||||||||
Net income | $ | (36,641 | ) | $ | (17,845 | ) | $ | (84,060 | ) | $ | (46,293 | ) | ||||
Net income per share: | ||||||||||||||||
Basic | -$0.19 | -$0.09 | -$0.43 | -$0.23 | ||||||||||||
Diluted | -$0.19 | -$0.09 | -$0.42 | -$0.23 | ||||||||||||