StockSelector.com
  Research, Select, & Monitor Sunday, May 19, 2019 2:59:47 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Garmin Ltd.$78.14($1.27)(1.60%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Garmin Reports Solid Fiscal 2017 Revenue and Operating Income Growth; Proposes Dividend Increase
   Wednesday, February 21, 2018 7:01:55 AM ET

Garmin Ltd. (GRMN ) today announced results for the fourth quarter and fiscal year ended December 30, 2017.

Highlights for the fourth quarter 2017 include:

-- Total revenue of $888 million, growing 3% over the prior year quarter, with outdoor, fitness, marine and aviation collectively growing 9% over the prior year quarter and contributing 78% of total revenue

-- Gross margin improved to 56.2% compared to 54.7% in the prior year quarter

-- Operating margin improved to 20.2% compared to 18.6% in the prior year quarter

-- Operating income of $179 million, representing growth of 12%

-- GAAP EPS was $0.73 for the fourth quarter, representing growth of 2% and pro forma EPS(1) was $0.79 for fourth quarter 2017, representing growth of 9%



-- Delivered our one-millionth certified aviation product demonstrating our long history of innovation and contribution to the aviation industry

-- Began shipping our updated marine ECHOMAP(TM)and STRIKER(TM) products bringing connectivity to the water

Highlights for the fiscal year 2017 include:

-- Total revenue of $3,087 million, growing 2% over the prior year, with outdoor, fitness, marine and aviation collectively growing 9% over the prior year and contributing 76% of total revenue

-- Gross and operating margins of 57.8% and 21.7%, respectively, both improving from 2016 levels

-- Operating income of $669 million, representing 7% growth

-- GAAP EPS was $3.68 and pro forma EPS(1) was $2.94

-- Shipped over 15 million units and over 188 million since inception

-- Completed the acquisition of Navionics(R)S.p.A., a privately-held worldwide provider of electronic navigational charts and mobile applications for the marine industry

-- Strong demand for the fA"nix(R) line of wearables led to significant growth in our outdoor segment

-- Connect IQ(TM) app store continued growth with over 3,500 apps and over 45 million downloads since inception

-- Garmin ranked #41 on Forbes’ "The Just 100: America’s Best Corporate Citizens" and ranked as one of the Global 2000 World’s Best Employers

(in thousands,                  13-Weeks Ended      14-Weeks Ended                        52-weeks Ended        53-weeks Ended        
                                                                    -------------------------------------- -------------------------------------- --------------------------------                                          ---------------------------------------- ---------------------------------------- -------------------- ---------------------
except per share data)                                                 December 30,        December 31,       Yr over Yr                                               December 30,          December 31,             Yr over Yr
                                                                           2017                                   2016             Change                                                     2017                                     2016                   Change
                                                                    ------------------                     -------------------------------------- -------------------- -----------                                          --------------------                     ---------------------------------------- -------------------- ---------------------
Net sales                                                              $ 888,496                              $ 860,767                                                     3 %                                                $ 3,087,004                              $ 3,018,665                                                         2 %
    Outdoor                                                              203,278                                175,397                                                    16 %                                                    698,867                                  546,326                                                        28 %
    Aviation                                                             129,800                                117,265                                                    11 %                                                    501,359                                  439,348                                                        14 %
    Marine                                                                83,699                                 67,458                                                    24 %                                                    374,001                                  331,947                                                        13 %
    Fitness                                                              276,195                                274,052                                                     1 %                                                    762,194                                  818,486                                                        -7 %
    Auto                                                                 195,524                                226,595                                                   -14 %                                                    750,583                                  882,558                                                       -15 %
                                                                                                                                                                                                                                                                                                                                    
Gross margin %                                                              56.2 %                                 54.7 %                                                                                                             57.8 %                                   55.6 %
                                                                                                                                                                                                                                                                                                                                    
Operating income %                                                          20.2 %                                 18.6 %                                                                                                             21.7 %                                   20.7 %
                                                                                                                                                                                                                                                                                                                                    
GAAP diluted EPS                                                       $    0.73                              $    0.72                                                     2 %                                                $      3.68                              $      2.70                                                        36 %
Pro forma diluted EPS (1)                                              $    0.79                              $    0.73                                                     9 %                                                $      2.94                              $      2.83                                                         4 %
                                                                                                                                                                                                                                                                                                                                    
(1) See attached table for reconciliation of non-GAAP
measures including pro forma diluted EPS
 

Executive Overview from Cliff Pemble, President and Chief Executive Officer:

"2017 was our second full year of sales and operating income growth driven by strong sales in our outdoor, aviation and marine segments," said Cliff Pemble, president and chief executive officer of Garmin Ltd. "Entering 2018, we see additional growth opportunities ahead and we believe that we are well positioned to seize these opportunities with a strong lineup of products."

Outdoor:

The outdoor segment grew 16% in the quarter with significant contributions from wearable devices combined with growth of inReach(R) subscription services. Gross and operating margins improved to 63% and 36%, respectively, resulting in 26% operating income growth. We expect outdoor to continue to be a growth segment in 2018 as we leverage opportunities in wearables and other product categories in the segment.

Aviation:

The aviation segment posted solid revenue growth of 11% in the quarter with growth contributions from both aftermarket and OEM. Gross and operating margins remained strong at 75% and 32%, respectively, resulting in 27% operating income growth. During the quarter, we delivered the 500th G1000(R) integrated flight deck upgrade for King Air aircraft, witnessed continued strength in our ADS-B offerings, and Textron Aviation announced our selection as the avionics provider for the Cessna Sky Courier 408. We continue to invest in upcoming certifications with our numerous OEM partners, as well as ongoing aftermarket opportunities for long-term market share gains.

Marine:

The marine segment posted strong fourth quarter revenue growth of 24% driven by our updated lineup of chartplotters and fishfinders, as well as contributions from our recently acquired Navionics product line. Gross margin improved to 55%. During the fourth quarter, we recorded a one-time accrual for a litigation settlement resulting in an operating loss in the marine segment of 13%. During the fourth quarter, we began shipping our new connected offerings in our popular ECHOMAP and STRIKER product lines enabling connectivity through our new ActiveCaptain(TM) mobile app. We expect marine to be a growth segment in 2018 as we focus on market share gains and new product innovations.

Fitness:

The fitness segment posted revenue growth of 1% in the quarter driven by our GPS enabled products, partially offset by declines in our basic activity trackers. Gross and operating margins increased to 53% and 21%, resulting in a 24% growth in operating income. Our recently announced Forerunner(R) 645 Music brings both music and Garmin Pay(TM) to a wearable with advanced features such as running dynamics and connectivity. We continue to see growth opportunities in our advanced wearables offset by declines in our basic activity trackers.

Auto:

The auto segment recorded revenue decline of 14% in the quarter, primarily due to the ongoing PND market contraction, partially offset by solid growth in OEM and niche categories. Gross margin declined to 41%, and operating margin was flat at 9%. At the recent Consumer Electronics Show, we announced our new OEM scalable infotainment platform with Amazon Alexa digital assistant integration. Looking forward, we are focused on disciplined execution to bring desired innovation to the market and to optimize profitability in this segment.

Additional Financial Information:

Total operating expenses in the quarter were $320 million, a 3% increase from the prior year. Research and development investment increased 3%, due to engineering personnel costs and the Navionics acquisition partially offset by the additional week of expense in 2016. Selling, general and administrative expenses increased 13%, due primarily to litigation related costs and the Navionics acquisition. Advertising decreased 13%, primarily due to lower media spend in the fitness segment.

The effective tax rate in the fourth quarter of 2017 was 23.1%. The pro forma effective tax rate in the fourth quarter of 2017 was 20.9% (see attached table for reconciliation of this non-GAAP measure), compared to an effective tax rate of 19.0% in the prior year quarter. The increase in the pro forma effective tax rate is primarily due to the Company’s election to align certain Switzerland corporate tax positions with evolving international tax initiatives and the impact of the release of reserves partially offset by income mix by tax jurisdiction.

In the fourth quarter of 2017, we generated $144 million of free cash flow (see attached table for reconciliation of this non-GAAP measure) and returned cash to our shareholders with our quarterly dividend of $96 million. We ended the quarter with cash and marketable securities of approximately $2.3 billion.

2018 Guidance:

We currently expect 2018 revenue of approximately $3.2 billion as growth in marine, outdoor and aviation is partially offset by ongoing declines in the PND market. We currently expect our full year pro forma EPS will be approximately $3.05 based upon gross margin of approximately 58.5%, operating margin of approximately 21% and a full year pro forma effective tax rate of approximately 19%.

                                    2018 Guidance(1)          Segment      Revenue Targets
                                                                                                                                                      ----------------                                                                                     -------- -------------------- -------------------- ----------------
                                                                                    Revenue                                                                 $3.2 B                                                                                         Auto (1)         -17 %
                                                                                    Gross Margin                                                            58.5%                                                                                          Fitness                                                  0 %
                                                                                    Operating Margin                                                         21%                                                                                           Aviation                                                13 %
                                                                                    Tax Rate (Pro Forma)(2)                                                  19%                                                                                           Outdoor                                                 13 %
                                                                                    EPS (Pro Forma)(2)                                                      $3.05                                                                                          Marine                                                  18 %
        (1)   Consolidated and Auto segment guidance assumes the adoption of the
                                                                                                             new revenue recognition standard in 2018 and restatement of 2017
                                                                                                             amounts.
                                                                                    (2)                      See attached table for reconciliation of non-GAAP measures
                                                                                                             including forward-looking pro forma tax rate and EPS
                                                                                                              

Effective in the first quarter 2018, the Company adopted Accounting Standards Codification (ASC) Topic 606, the new revenue recognition standard. The 2018 revenue and segment revenue growth percentages are based upon the restated 2017 revenue amounts. We have included additional appendices (Appendix A and B) with 2017 results reflecting the new revenue recognition standard to help investors understand the comparability of the 2018 guidance.

Dividend Recommendation:

The board of directors intends to recommend to the shareholders for approval at the annual meeting to be held on June 8, 2018, a cash dividend in the amount of $2.12 per share (subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting), payable in four equal installments on dates to be determined by the Board. The Board currently anticipates the scheduling of the dividend in four installments as follows:

        Dividend Date          Record Date            $s per share
                                                                                    ------------------                                           ------------------                                           --------------------
                                                                                    June 29, 2018                                                June 18, 2018                                                               $0.53
                                                                                    September 28, 2018                                           September 14, 2018                                                          $0.53
                                                                                    December 31, 2018                                            December 14, 2018                                                           $0.53
                                                                                    March 29, 2019                                               March 15, 2019                                                              $0.53
                                                                                                                                                                                                               

In addition, the board of directors has established March 30, 2018 as the payment date and March 15, 2018 as the record date for the final dividend installment of $0.51 per share, per the prior approval at the 2017 annual shareholders’ meeting. The first, second and third payments of $0.51 per share were made on June 30, 2017, September 29, 2017, and December 29, 2017, respectively.

Webcast Information/Forward-Looking Statements:

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

    When:      Wednesday, February 21, 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 February 28, 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 http://www.garmin.com/aboutGarmin/invRelations/finReports.html . Any forward-looking statements made in this release speak only as of the date of this release.

Non-GAAP Financial Measures

This release and the attachments also 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 this release or the attachments.

Garmin, the Garmin logo, the Garmin delta, fA"nix, Forerunner, G1000, inReach and Navionics are registered trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S.; Active Captain, Connect IQ, ECHOMAP, Garmin Pay, Garmin Speak and STRIKER are trademarks of Garmin Ltd. or one of 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                                      14-Weeks Ended                                                          52-Weeks Ended                                        53-Weeks Ended
                                                                                      ---------------------------------------------------------------------- --------------------------------------------------                     ------------------------------------------------------------------------ ----------------------------------------------------
                                                                                                         December 30,                                                           December 31,                                                            December 30,                                                             December 31,
                                                                                                             2017                                                2016                                                                    2017                                                  2016
                                                                                      ---------------------------------------------------------------------- --------------------------------------------------                     ------------------------------------------------------------------------ ----------------------------------------------------
Net sales                                                                                                $ 888,496                                                              $ 860,767                                                              $ 3,087,004                                                              $ 3,018,665
                                                                                                                                                                                                                                                                                                              
Cost of goods sold                                                                      388,978                          389,985                          1,303,840                          1,339,095  
                                                                                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                              
Gross profit                                                                                               499,518                                                                470,782                                                                1,783,164                                                                1,679,570
                                                                                                                                                                                                                                                                                                              
Advertising expense                                                                                         58,710                                                                 67,702                                                                  164,693                                                                  177,143
Selling, general and administrative expense                                                                128,880                                                                114,312                                                                  437,977                                                                  410,558
Research and development expense                                                        132,552                          128,952                            511,634                            467,960  
                                                                                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total operating expense                                                                 320,142                          310,966                          1,114,304                          1,055,661  
                                                                                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                              
Operating income                                                                                           179,376                                                                159,816                                                                  668,860                                                                  623,909
                                                                                                                                                                                                                                                                                                              
Other income (expense):
    Interest income                                                                                          9,994                                                                  9,296                                                                   36,925                                                                   33,406
    Foreign currency losses                                                                                 (8,772 )                                                               (1,648 )                                                                (22,579 )                                                                (31,651 )
    Other                                                                                  (107 )                                             1,093                               (912 )                                               4,006  
                                                                                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total other income (expense)                                                              1,115                            8,741                             13,434                              5,761  
                                                                                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                              
Income before income taxes                                                                                 180,491                                                                168,557                                                                  682,294                                                                  629,670
                                                                                                                                                                                                                                                                                                              
Income tax provision (benefit)                                                           41,711                           31,952                            (12,661 )                                             118,856  
                                                                                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                              
Net income                                                                                               $ 138,780                                           $ 136,605                                           $   694,955                                           $   510,814  
                                                                                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                              
Net income per share:
    Basic                                                                                                $    0.74                                                              $    0.73                                                              $      3.70                                                              $      2.71
    Diluted                                                                                              $    0.73                                                              $    0.72                                                              $      3.68                                                              $      2.70
                                                                                                                                                                                                                                                                                                              
Weighted average common shares outstanding:
    Basic                                                                                                  187,607                                                                188,233                                                                  187,828                                                                  188,818
    Diluted                                                                                                188,915                                                                189,171                                                                  188,732                                                                  189,343
                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                             
                                                                                                                   Garmin Ltd. And Subsidiaries
                                                                                                               Condensed Consolidated Balance Sheets
                                                                                                           (In thousands, except per share information)
                                                                                                                
                                                                                                                ------------------------------------------------------------------------ -------------------- ----------------------------------------------------
                                                                                                                                     (Unaudited)                       
                                                                                                                                    December 30,                                                                                  December 31,
                                                                                                                                        2017                                                    2016
                                                                                                                ------------------------------------------------------------------------ -------------------- ----------------------------------------------------
Assets
Current assets:
    Cash and cash equivalents                                                                                                      $   891,488                                                                                   $   846,883
    Marketable securities                                                                                                              161,687                                                                                       266,952
    Accounts receivable, net                                                                                                           590,882                                                                                       527,062
    Inventories, net                                                                                                                   517,644                                                                                       484,821
    Deferred costs                                                                                                                      48,312                                                                                        47,395
    Prepaid expenses and other current assets                                                                       153,912                                                  89,903  
                                                                                                                -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total current assets                                                                                                                 2,363,925                                                                                     2,263,016
                                                                                                                                                                                                               
Property and equipment, net                                                                                                            595,684                                                                                       482,878
                                                                                                                                                                                                               
Marketable securities                                                                                                                1,260,033                                                                                     1,213,285
Restricted cash                                                                                                                            271                                                                                           113
Deferred income taxes                                                                                                                  199,343                                                                                       110,293
Noncurrent deferred costs                                                                                                               73,851                                                                                        56,151
Intangible assets, net                                                                                                                 409,801                                                                                       305,002
Other assets                                                                                                        107,352                                                  94,395  
                                                                                                                -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total assets                                                                                                                       $ 5,010,260                                                                $ 4,525,133  
                                                                                                                ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                               
Liabilities and Stockholders’ Equity
Current liabilities:
    Accounts payable                                                                                                               $   169,640                                                                                   $   172,404
    Salaries and benefits payable                                                                                                      102,802                                                                                        88,818
    Accrued warranty costs                                                                                                              36,827                                                                                        37,233
    Accrued sales program costs                                                                                                         93,250                                                                                        80,953
    Deferred revenue                                                                                                                   139,681                                                                                       146,564
    Accrued royalty costs                                                                                                               32,204                                                                                        36,523
    Accrued advertising expense                                                                                                         30,987                                                                                        37,440
    Other accrued expenses                                                                                                              93,652                                                                                        70,469
    Income taxes payable                                                                                                                33,638                                                                                        16,163
    Dividend payable                                                                                                 95,975                                                  96,168  
                                                                                                                -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total current liabilities                                                                                                              828,656                                                                                       782,735
                                                                                                                                                                                                               
Deferred income taxes                                                                                                                   75,215                                                                                        61,220
Noncurrent income taxes                                                                                                                138,295                                                                                       121,174
Noncurrent deferred revenue                                                                                                            163,840                                                                                       140,407
Other liabilities                                                                                                                        1,788                                                                                         1,594
                                                                                                                                                                                                               
Stockholders’ equity:
      
                                                                                                                                        17,979                                                                                        17,979
    Shares, CHF 0.10 par value, 198,077 shares authorized and issued;
    188,189 shares outstanding at December 30, 2017 and 188,565
    shares outstanding at December 31, 2016
    Additional paid-in capital                                                                                                       1,828,386                                                                                     1,836,047
    Treasury stock                                                                                                                    (468,818 )                                                                                    (455,964 )
    Retained earnings                                                                                                                2,368,874                                                                                     2,056,702
    Accumulated other comprehensive income (loss)                                                                    56,045                                                 (36,761 )
                                                                                                                -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total stockholders’ equity                                                                                        3,802,466                                               3,418,003  
                                                                                                                -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total liabilities and stockholders’ equity                                                                                         $ 5,010,260                                                                $ 4,525,133  
                                                                                                                ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                              
                                                                                                                Garmin Ltd. And Subsidiaries
                                                                                                 Condensed Consolidated Statements of Cash Flows (Unaudited)
                                                                                                                       (In thousands)
                                                                                        52-Weeks Ended                                         53-Weeks Ended
                                                                                                            ----------------------------------------------------------------------- -------------------- ---------------------------------------------------
                                                                                                                               December 30,                                           December 31,
                                                                                                                                   2017                                                                                         2016
                                                                                                            ---------------------------------------------------                                          ---------------------------------------------------
Operating activities:
Net income                                                                                                                     $  694,955                                                                                   $  510,814
Adjustments to reconcile net income to net cash
provided by operating activities:
    Depreciation                                                                                                                   59,895                                                                                       55,796
    Amortization                                                                                                                   26,357                                                                                       30,544
    Gain on sale or disposal of property and equipment                                                                               (230 )                                                                                       (503 )
    Provision for doubtful accounts                                                                                                 1,021                                                                                        4,136
    Deferred income taxes                                                                                                         (90,725 )                                                                                      1,699
    Unrealized foreign currency loss                                                                                               21,036                                                                                       13,387
    Provision for obsolete and slow moving inventories                                                                             31,071                                                                                       26,458
    Stock compensation                                                                                                             44,735                                                                                       41,250
    Realized losses (gains) on marketable securities                                                                                  991                                                                                         (822 )
Changes in operating assets and liabilities:
    Accounts receivable                                                                                                           (40,088 )                                                                                      9,000
    Inventories                                                                                                                   (38,575 )                                                                                     (2,455 )
    Other current and non-current assets                                                                                          (21,608 )                                                                                      2,234
    Accounts payable                                                                                                              (17,240 )                                                                                    (11,496 )
    Other current and non-current liabilities                                                                                       5,627                                                                                       44,766
    Deferred revenue                                                                                                               15,329                                                                                       (6,363 )
    Deferred costs                                                                                                                (18,266 )                                                                                    (15,780 )
    Income taxes payable                                                                                       (13,443 )                                                                   3,017  
                                                                                                            -------------------- -------- --------------------                                           -------------------- -------- --------------------
Net cash provided by operating activities                                                                                         660,842                                                                                      705,682
                                                                                                                                                                                                          
Investing activities:
Purchases of property and equipment                                                                                              (139,696 )                                                                                    (90,960 )
Proceeds from sale of property and equipment                                                                                          361                                                                                          676
Purchase of intangible assets                                                                                                     (12,232 )                                                                                     (5,715 )
Purchase of marketable securities                                                                                                (587,656 )                                                                                   (905,089 )
Redemption of marketable securities                                                                                               635,311                                                                                      957,350
Change in restricted cash                                                                                                            (153 )                                                                                        146
Acquisitions, net of cash acquired                                                                             (90,471 )                                                                 (77,945 )
                                                                                                            -------------------- -------- --------------------                                           -------------------- -------- --------------------
Net cash used in investing activities                                                                                            (194,536 )                                                                                   (121,537 )
                                                                                                                                                                                                          
Financing activities:
Dividends                                                                                                                        (382,976 )                                                                                   (481,452 )
Purchase of treasury stock under share repurchase plan                                                                            (74,523 )                                                                                    (93,233 )
Purchase of treasury stock related to equity awards                                                                               (12,773 )                                                                                     (7,331 )
Proceeds from issuance of treasury stock related to equity awards                                                                  21,860                                                                                       18,648
Tax benefit from issuance of equity awards                                                                           -                                                  1,692  
                                                                                                            -------------------- -------- --------------------                                           -------------------- -------- --------------------
Net cash used in financing activities                                                                                            (448,412 )                                                                                   (561,676 )
                                                                                                                                                                                                          
Effect of exchange rate changes on cash and cash equivalents                                                                       26,711                                                                                       (8,656 )
                                                                                                                                                                                       
                                                                                                            ---------------------------------------------------                                          ---------------------------------------------------
Net increase in cash and cash equivalents                                                                                          44,605                                                                                       13,813
Cash and cash equivalents at beginning of period                                                               846,883                                                833,070  
                                                                                                            -------------------- -------- --------------------                                           -------------------- -------- --------------------
Cash and cash equivalents at end of period                                                                                     $  891,488                                                                $  846,883  
                                                                                                            ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                        
                                                                                                                           Garmin Ltd. And Subsidiaries
                                                                                                             Net Sales, Gross Profit, and Operating Income by Segment
                                                                                                                                    (Unaudited)
 
                                                                                                                               Reportable Segments
                                                                           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  
                                                                              Outdoor                          Fitness                           Marine                            Auto                           Aviation                                      Total
                                                                           ------------                     ------------                     --------------                     -----------                     -------------                     --------------------------------
                                                                                                                                                                                                                                                   
13-Weeks Ended December 30, 2017
                                                                                                                                                                                                                                                   
Net sales                                                                    $ 203,278                        $ 276,195                       $  83,699                          $ 195,524                         $ 129,800                               $              888,496
Gross profit                                                                   128,952                          146,622                          45,902                             80,990                            97,052                                              499,518
Operating income                                                                73,322                           57,315                         (10,533 )                           17,401                            41,871                                              179,376
                                                                                                                                                                                                                                                   
14-Weeks Ended December 31, 2016
                                                                                                                                                                                                                                                   
Net sales                                                                    $ 175,397                        $ 274,052                       $  67,458                          $ 226,595                         $ 117,265                               $              860,767
Gross profit                                                                   107,852                          141,742                          35,155                             95,977                            90,056                                              470,782
Operating income                                                                58,314                           46,175                           2,995                             19,363                            32,969                                              159,816
                                                                                                                                                                                                                                                   
52-Weeks Ended December 30, 2017
                                                                                                                                                                                                                                                   
Net sales                                                                    $ 698,867                        $ 762,194                       $ 374,001                          $ 750,583                         $ 501,359                               $            3,087,004
Gross profit                                                                   448,410                          422,636                         212,592                            327,921                           371,605                                            1,783,164
Operating income                                                               249,867                          146,765                          50,328                             67,967                           153,933                                              668,860
                                                                                                                                                                                                                                                   
53-Weeks Ended December 31, 2016
                                                                                                                                                                                                                                                   
Net sales                                                                    $ 546,326                        $ 818,486                       $ 331,947                          $ 882,558                         $ 439,348                               $            3,018,665
Gross profit                                                                   340,504                          437,205                         183,709                            388,747                           329,405                                            1,679,570
Operating income                                                               184,035                          160,596                          52,167                            102,347                           124,764                                              623,909
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                              
                                                                                                                        Garmin Ltd. And Subsidiaries
                                                                                                                     Net Sales by Geography (Unaudited)
                                                                                                                               (In thousands)
 
                13-Weeks Ended    14-Weeks Ended         52-weeks Ended      53-weeks Ended     
                                                     ------------------------------------ ------------------------------------ ---------------------                     -------------------------------------- -------------------------------------- ---------------------
                                                       December 30,      December 31,         Yr over Yr                              December 30,        December 31,          Yr over Yr
                                                           2017                                 2016               Change                                    2017                                   2016                Change
                                                     ----------------                     ------------------------------------ ---------------------                     ------------------                     -------------------------------------- ---------------------
Net sales                                                  $ 888,496                            $ 860,767                               3 %                                    $ 3,087,004                            $ 3,018,665                               2 %
  Americas                                                   426,374                              445,324                              -4 %                                      1,475,661                              1,518,934                              -3 %
  EMEA                                                       341,029                              302,977                              13 %                                      1,175,155                              1,113,182                               6 %
  APAC                                                       121,093                              112,466                               8 %                                        436,188                                386,549                              13 %
                                                                                                                                                                                                                                                        
EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and
Australian Continent
 
 

Non-GAAP Financial Information

To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma net income (earnings) per share, forward-looking pro forma earnings per share, pro forma effective tax rate, forward-looking pro forma effective tax rate and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below.

The tables below provide reconciliations between the GAAP and non-GAAP measures.

Pro forma effective tax rate

The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes disclosure of the effective tax rate and income tax provision before the effect of such discrete tax items are important measures to permit investors’ consistent comparison between periods. In fiscal 2016, there were no such discrete tax items identified.

                                                                                                                                                                        Garmin Ltd. And Subsidiaries
                                                                                                                                                                        Pro Forma Effective Tax Rate
                                                                                                                                                         (in thousands, except effective tax rate (ETR) information)
 
                                                                                                           13-Weeks Ended                                                                                                       52-weeks Ended
                                                                                                -----------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------
                                                                                                                                                  December 30,                                                                                                                                               December 30,
                                                                                                                                                      2017                                                                                                                                                       2017
                                                                                                -----------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                          
                                                                                                                         $                                   ETR(1)                                                                           $                                   ETR(1)
                                                                                                ---------------------------------------------------------------------- -------------------- ---------------------                                          ---------------------------------------------------------------------- -------------------- ---------------------
U.S. GAAP income tax provision (benefit)                                                                           $  41,711                                                                      23.1 %                                                                      $ (12,661 )                                                                    (1.9 %)
Pro forma discrete tax items:
    Switzerland corporate tax election(2)                                                                             11,279                                                                                                                                                    180,034
    Tax expense from share-based award expirations(3)                                             (15,345 )                                                                                                                               (22,620 )
                                                                                                -------------------- ------- --------------------                                                                                                          -------------------- ------- --------------------
Total pro forma discrete tax items                                                                 (4,066 )                                                                      157,414        
                                                                                                -------------------- ------- -------------------- -------------------- -------------------- ---------------------                                          -------------------- ------- -------------------- -------------------- -------------------- ---------------------
Income tax provision (Pro Forma)                                                                                   $  37,645             20.9 %                                                                      $ 144,753             21.2 %
                                                                                                -------------------- ------- -------------------- -------------------- -------------------- ---------- ---------                                           -------------------- ------- -------------------- -------------------- -------------------- ---------- ---------
(1)   Effective tax rate is calculated by taking the Income tax
                         provision (benefit) divided by Income before taxes, as presented
                         on the face of the Condensed Consolidated Statements of Income.
                          
(2)                      In first quarter 2017, a $169 million tax benefit was recognized
                         resulting from the revaluation of certain Switzerland deferred tax
                         assets. The revaluation is due to the Company’s election in
                         February 2017 to align certain Switzerland corporate tax positions
                         with international tax initiatives. In the fourth quarter 2017, an
                         additional $11 million benefit was recognized as a result of this
                         Switzerland election. These impacts during the transitional period
                         following the election are not reflective of current income tax
                         expense incurred and therefore affect period-to-period
                         comparability.
                          
(3)                      Following adoption in fiscal 2017 of Accounting Standards Update
                         No. 2016-09, Compensation - Stock Compensation (Topic 718):
                         Improvements to Employee Share-Based Payment Accounting ("ASU
                         2016-09"), the Company may periodically incur tax expense
                         resulting from stock options and stock appreciation rights (SARs)
                         expiring unexercised. New grants of stock options and SARs no
                         longer comprise a significant component of the Company’s
                         compensation arrangements. As the tax expense from expired awards
                         is not related to current period earnings or compensation
                         activities, and affects period-to-period comparability, it has
                         been identified as a pro forma adjustment.
                          

The net release of uncertain tax position reserves, amounting to approximately $17.9 million and $11.9 million for the 52-weeks and 53-weeks ended December 30, 2017 and December 31, 2016, respectively, have not been included as pro forma adjustments in the above presentation of pro forma income tax provision as such items tend to be more recurring in nature.

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
(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.
                          
(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.
                          
(3)                      The discrete tax items are discussed in the pro forma effective
                         tax rate section.
                          

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 less capital expenditures for property and equipment. Management believes that excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company’s operating performance and allows more accurate comparisons of the Company’s operating results to historical performance. This metric may also be useful to investors, but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is cash provided by operating activities.

                                                                                                                                                                          Garmin Ltd. And Subsidiaries
                                                                                                                                                                                 Free Cash Flow
                                                                                                                                                                                 (in thousands)
 
                                                                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 cash provided by operating activities                                                              $ 198,265                                                              $ 213,315                                                                                   $  660,842                                                              $ 705,682
Less: purchases of property and equipment                                             (54,484 )                        (48,803 )                                                                (139,696 )                        (90,960 )
                                                                                    -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                                           -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------
Free Cash Flow                                                                                         $ 143,781                        $ 164,512                                                                $  521,146                        $ 614,722  
                                                                                    ==================== ======= ==================== ==================== ==================== ======= ====================                                           ==================== ======== ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                             

Forward-looking pro forma tax rate

Forward-looking pro forma tax rate and pro forma earnings per share are calculated before the effect of certain discrete tax items. Management believes certain discrete tax items may not be reflective of income tax expense incurred as a result of current period earnings. Therefore, in order to permit consistent comparison between periods, the tax rate and earnings per share before the effect of such discrete tax items are important measures. In the 52-weeks ended December 30, 2017, such discrete tax items were recognized on a U.S. GAAP-basis that would have affected comparability between periods and were therefore removed from the pro forma tax rate. However, at this time management is unable to determine whether or not significant discrete tax items will be identified in fiscal 2018.

Forward-looking pro forma earnings per share (EPS)

Our 2018 pro forma EPS excludes foreign currency exchange gains and losses. The estimated impact of such foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact of such foreign currency gains and losses, net of tax effects, was $0.04 and $0.09 per share for the 13-weeks and 52-weeks ended December 30, 2017, respectively.

Appendix A - Fiscal 2018 revenue recognition accounting change

The following appendices present 2017 results restated to reflect Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers. These appendices provide comparable information to help investors understand the 2018 guidance.

We adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), the new revenue recognition standard, in the first quarter of 2018, effective for Garmin’s fiscal year ending December 29, 2018. ASC Topic 606 replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard.

Adoption approach

The Company has adopted the new revenue recognition standard utilizing the full retrospective method. Under this method, the new recognition standard is applied to each prior period reported in the forthcoming 2018 Form 10-Q and Form 10-K filings. This adoption approach enhances comparability, as all periods presented in the forthcoming filings are reported under the new standard. We have provided relevant information below to highlight the financial impact of the new revenue recognition standard, and have also provided relevant restated financial statements under ASC Topic 606 in the following appendix.

ASC Topic 606 impacts

Based on our evaluation of the new revenue standard, Garmin’s recognition will be consistent with our previous accounting policies except for two impacts, both of which are within the Company’s auto segment:

-- A portion of the Company’s auto segment contracts have historically been accounted for under Accounting Standards Codification Topic 985-605 Software-Revenue Recognition (Topic 985-605). Under Topic 985-605, the Company deferred all elements of multiple-element software arrangements if vendor-specific objective evidence of fair value (VSOE) could not be established for an undelivered element (e.g. map updates). In applying the new revenue standard to certain contracts that include both software licenses and map updates, we recognize the portion of revenue related to the software license at the time of delivery rather than ratably over the map update period.

-- For certain multiple-element arrangements within the Company’s auto segment, the Company’s previous policy was to allocate consideration to traffic services and recognize it ratably over the estimated life of the underlying product. Under the new revenue standard, we recognize revenue related to certain traffic services at the time of hardware and/or software delivery. Specifically, the new revenue standard emphasizes the timing of the Company’s performance, and upon delivery of the navigation device and/or software, the Company has performed its obligation with respect to the design and production of the product to receive and interpret the broadcast traffic signal for the benefit of the end user.

Both changes noted above accelerate the timing of revenue recognition. See below for an overview of the financial impact to the Company’s results of operations:

                                                                                              FY 16                                                                                                                       FY 17
(USD in millions)                                                                  Reported                   Restated(1)                   Impact(2)                                       Reported                   Restated(1)                   Impact(2)
                                                                          ---------------------------------------------- ----------------------------------------------- --------------------------                      ---------------------------------------------- ----------------------------------------------- --------------------------
Revenue - Consolidated                                                                       $3,019                       $3,046                          $27                                         $3,087                       $3,122                         $35
Revenue - Auto segment                                                       883                          910                          27                          751                          785                          35
Operating Income - Consolidated                                                                 624                                             633                                              9                                             669                                             684                                             15
Operating Income - Auto segment                                                                 102                                             111                                              9                                              68                                              83                                             15
(1)   Effective for the fiscal year ending December 29, 2018, we have
                         adopted ASC Topic 606. The results above are restated under ASC
                         Topic 606, and are included for comparability to 2018 earnings
                         guidance.
                          
(2)                      This row may not cross-foot as figures are rounded to the nearest
                         million.
                          

The Company’s historical net cash flows provided by or used in operating, investing, and financing activities are not impacted by adoption of the new revenue standard.

Within Appendix A and Appendix B, the references to periods such as "FY 17," "Q1 17," or "2017," refer to the corresponding periods or period-end dates as reported in the applicable Form 10-K or Form 10-Q filings. See additional restated financial information below within Appendix B.

APPENDIX B - Restated financial information under ASC Topic 606

                                                                                                                  Garmin Ltd. And Subsidiaries
                                                                                                     Condensed Consolidated Statements of Income (Unaudited)
                                                                                                                         (In thousands)
                                  
                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 Previously Reported
                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 
                                                       FY 16                                     Q1 17                                   Q2 17                         Q3 17                         Q4 17                                     FY 17
                                                                                                                                                                                                                                  
Net sales                                           $3,018,665                      $638,546                                           $816,885                      $743,077                      $888,496                      $3,087,004
                                                                                                                                                                                                                                  
Cost of goods sold                                   1,339,095                       266,423      339,027    309,412    388,978                       1,303,840  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Gross profit                                         1,679,570                       372,123                                            477,858                       433,665                       499,518                       1,783,164
                                                                                                                                                                                                                                  
Total operating expense                              1,055,661                       255,778      274,508    263,875    320,142                       1,114,304  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Operating income                                       623,909                       116,345                                            203,350                       169,790                       179,376                         668,860
                                                                                                                                                                                                                                  
Total other income (expense)                             5,761                       (28,653 )                        24,705     16,266      1,115                          13,434  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Income before income taxes                             629,670                        87,692                                            228,055                       186,056                       180,491                         682,294
                                                                                                                                                                                                                                  
Income tax provision (benefit)                         118,856                      (150,120 )                        57,105     38,643     41,711                         (12,661 )
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Net income                                            $510,814                      $237,812     $170,950   $147,413   $138,780                        $694,955  
                                                    ==========                      ======== ==================== ==================== ======== ==================== ======== ==================== ========                      ========== ====================
                                                                                                                                                                                                                                  
                                                     
                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                     Restated(1)
                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                  
                                                       FY 16                                     Q1 17                                   Q2 17                         Q3 17                         Q4 17                                     FY 17
                                                                                                                                                                                                                                  
Net sales                                           $3,045,796                      $641,510                                           $831,486                      $751,245                      $897,319                      $3,121,560
                                                                                                                                                                                                                                  
Cost of goods sold                                   1,357,271                       268,704      347,356    313,722    393,837                       1,323,619  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Gross profit                                         1,688,525                       372,806                                            484,130                       437,523                       503,482                       1,797,941
                                                                                           .
Total operating expense                              1,055,661                       255,778      274,508    263,875    320,142                       1,114,304  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Operating income                                       632,864                       117,028                                            209,622                       173,648                       183,340                         683,637
                                                                                                                                                                                                                                  
Total other income (expense)                             5,761                       (28,653 )                        24,705     16,266      1,115                          13,434  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Income before income taxes                             638,625                        88,375                                            234,327                       189,914                       184,455                         697,071
                                                                                                                                                                                                                                  
Income tax provision (benefit)                         122,890                      (149,519 )                        58,699     39,935     42,983                          (7,902 )
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Net income                                            $515,735                      $237,894     $175,628   $149,979   $141,472                        $704,973  
                                                    ==========                      ======== ==================== ==================== ======== ==================== ======== ==================== ========                      ========== ====================
                                                                                                                                                                                                                                  
                                                     
                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                       Impact
                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                  
                                                       FY 16                                     Q1 17                                   Q2 17                         Q3 17                         Q4 17                                     FY 17
                                                                                                                                                                                                                                  
Net sales                                              $27,131                        $2,964                                            $14,601                        $8,168                        $8,823                         $34,556
                                                                                                                                                                                                                                  
Cost of goods sold                                      18,176                         2,281        8,329      4,310      4,859                          19,779  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Gross profit                                             8,955                           683                                              6,272                         3,858                         3,964                          14,777
                                                                                                                                                                                                                                  
Total operating expense                                      -                             -            -          -          -                               -  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Operating income                                         8,955                           683                                              6,272                         3,858                         3,964                          14,777
                                                                                                                                                                                                                                  
Total other income (expense)                                 -                             -            -          -          -                               -  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Income before income taxes                               8,955                           683                                              6,272                         3,858                         3,964                          14,777
                                                                                                                                                                                                                                  
Income tax provision (benefit)                           4,034                           601        1,594      1,292      1,272                           4,759  
                                                    ----------                      -------- -------------------- -------------------- -------- -------------------- -------- -------------------- --------                      ---------- --------------------
                                                                                                                                                                                                                                  
Net income                                              $4,921                           $82       $4,678     $2,566     $2,692                         $10,018  
                                                    ==========                      ======== ==================== ==================== ======== ==================== ======== ==================== ========                      ========== ====================
(1)   Effective for the fiscal year ending December 29, 2018, we have
                         adopted ASC Topic 606. The results above are restated under ASC
                         Topic 606.
                          
                          
                                                                                                                                                                                                                                     Garmin Ltd. And Subsidiaries
                                                                                                                                                                                                                                     Condensed Consolidated Balance Sheets (Unaudited)
                                                                                                                                                                                                                                     (In thousands, except per share information)
                                                                                                                                                                                                                                                                                 
                                                                                          -----------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               Previously Reported                                                                                                                                                        Restated(1)                                                                                                                                                            Impact
                                                                                          -----------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------
Assets                                                                                                            2016                                                  2017                                                                                          2016                                                  2017                                                                                         2016                                                2017
                                                                                          ----------------------------------------------------                     ----------------------------------------------------                                          ----------------------------------------------------                     ----------------------------------------------------                                          --------------------------------------------------                     --------------------------------------------------
Current assets:
      Cash and cash equivalents                                                                              $   846,883                                                              $   891,488                                                                                   $   846,883                                                              $   891,488                                                                                   $       -                                                              $       -
      Marketable securities                                                                                      266,952                                                                  161,687                                                                                       266,952                                                                  161,687                                                                                           -                                                                      -
      Accounts receivable, net                                                                                   527,062                                                                  590,882                                                                                       527,062                                                                  590,882                                                                                           -                                                                      -
      Inventories, net                                                                                           484,821                                                                  517,644                                                                                       484,821                                                                  517,644                                                                                           -                                                                      -
      Deferred costs                                                                                              47,395                                                                   48,312                                                                                        34,665                                                                   30,525                                                                                     (12,730 )                                                              (17,787 )
      Prepaid expenses and other current assets                                                89,903                            153,912                                                  89,903                            153,912                                                     -                                -  
                                                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Total current assets                                                                                           2,263,016                                                                2,363,925                                                                                     2,250,286                                                                2,346,138                                                                                     (12,730 )                                                              (17,787 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Property and equipment, net                                                                                      482,878                                                                  595,684                                                                                       482,878                                                                  595,684                                                                                           -                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Marketable securities                                                                                          1,213,285                                                                1,260,033                                                                                     1,213,285                                                                1,260,033                                                                                           -                                                                      -
Restricted cash                                                                                                      113                                                                      271                                                                                           113                                                                      271                                                                                           -                                                                      -
Deferred income tax                                                                                              110,293                                                                  199,343                                                                                       105,668                                                                  189,959                                                                                      (4,625 )                                                               (9,384 )
Noncurrent deferred costs                                                                                         56,151                                                                   73,851                                                                                        30,934                                                                   33,029                                                                                     (25,217 )                                                              (40,822 )
Intangible assets, net                                                                                           305,002                                                                  409,801                                                                                       305,002                                                                  409,801                                                                                           -                                                                      -
Other assets                                                                                   94,395                            107,352                                                  94,395                            107,352                                                     -                                -  
                                                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Total assets                                                                                                 $ 4,525,133                                           $ 5,010,260                                                                $ 4,482,561                                           $ 4,942,267                                                                $ (42,572 )                                                            $ (67,993 )
                                                                                          ==================== ========= ====================                      ==================== ========= ====================                                           ==================== ========= ====================                      ==================== ========= ====================                                           ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Liabilities and Stockholders’ Equity
Current liabilities:
      Accounts payable                                                                                       $   172,404                                                              $   169,640                                                                                   $   172,404                                                              $   169,640                                                                                   $       -                                                              $       -
      Salaries and benefits payable                                                                               88,818                                                                  102,802                                                                                        88,818                                                                  102,802                                                                                           -                                                                      -
      Accrued warranty costs                                                                                      37,233                                                                   36,827                                                                                        37,233                                                                   36,827                                                                                           -                                                                      -
      Accrued sales program costs                                                                                 80,953                                                                   93,250                                                                                        80,953                                                                   93,250                                                                                           -                                                                      -
      Deferred revenue                                                                                           146,564                                                                  139,681                                                                                       118,496                                                                  103,140                                                                                     (28,068 )                                                              (36,541 )
      Accrued royalty costs                                                                                       36,523                                                                   32,204                                                                                        36,523                                                                   32,204                                                                                           -                                                                      -
      Accrued advertising expense                                                                                 37,440                                                                   30,987                                                                                        37,440                                                                   30,987                                                                                           -                                                                      -
      Other accrued expenses                                                                                      70,469                                                                   93,652                                                                                        70,469                                                                   93,652                                                                                           -                                                                      -
      Income taxes payable                                                                                        16,163                                                                   33,638                                                                                        16,163                                                                   33,638                                                                                           -                                                                      -
      Dividend payable                                                                         96,168                             95,975                                                  96,168                             95,975                                                     -                                -  
                                                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Total current liabilities                                                                                        782,735                                                                  828,656                                                                                       754,667                                                                  792,115                                                                                     (28,068 )                                                              (36,541 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Deferred income taxes                                                                                             61,220                                                                   75,215                                                                                        62,617                                                                   76,612                                                                                       1,397                                                                  1,397
Noncurrent income taxes                                                                                          121,174                                                                  138,295                                                                                       121,174                                                                  138,295                                                                                           -                                                                      -
Noncurrent deferred revenue                                                                                      140,407                                                                  163,840                                                                                        91,238                                                                   87,061                                                                                     (49,169 )                                                              (76,779 )
Other liabilities                                                                                                  1,594                                                                    1,788                                                                                         1,594                                                                    1,788                                                                                           -                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Stockholders’ equity:
      Shares, CHF 0.10 par value                                                                                  17,979                                                                   17,979                                                                                        17,979                                                                   17,979                                                                                           -                                                                      -
      Additional paid-in capital                                                                               1,836,047                                                                1,828,386                                                                                     1,836,047                                                                1,828,386                                                                                           -                                                                      -
      Treasury stock                                                                                            (455,964 )                                                               (468,818 )                                                                                    (455,964 )                                                               (468,818 )                                                                                         -                                                                      -
      Retained earnings                                                                                        2,056,702                                                                2,368,874                                                                                     2,090,233                                                                2,412,423                                                                                      33,531                                                                 43,549
      Accumulated other comprehensive income                                                  (36,761 )                                              56,045                                                 (37,024 )                                              56,428                                                  (263 )                                               383  
                                                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Total stockholders’ equity                                                                  3,418,003                          3,802,466                                               3,451,271                          3,846,397                                                33,268                           43,931  
                                                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- --------- --------------------                      -------------------- --------- --------------------                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Total liabilities and stockholders’ equity                                                                   $ 4,525,133                                           $ 5,010,260                                                                $ 4,482,561                                           $ 4,942,267                                                                $ (42,572 )                                                            $ (67,993 )
                                                                                          ==================== ========= ====================                      ==================== ========= ====================                                           ==================== ========= ====================                      ==================== ========= ====================                                           ==================== ======= ====================                      ==================== ======= ====================
(1)   Effective for the fiscal year ending December 29, 2018, we have
                         adopted ASC Topic 606. The balances above are restated under ASC
                         Topic 606.
                          
                          
                                                                                                                                                                                                                                     Garmin Ltd. And Subsidiaries
                                                                                                                                                                                                                                     Pro Forma Effective Tax Rate
                                                                                                                                                                                                                         (In thousands, except effective tax rate (ETR) information)
                                                 
                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                        Previously Reported
                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                          
                                                                                                             FY 16                                                                  Q1 17                                                                   Q2 17                                                                  Q3 17                                                                  Q4 17                                                                  FY 17
Income before income taxes                                                                               $ 629,670                                                              $   87,692                                                              $ 228,055                                                              $ 186,056                                                              $ 180,491                                                              $ 682,294
U.S. GAAP income tax provision (benefit)                                                118,856                          (150,120 )                         57,105        38,643        41,711                          (12,661 )
                                                                                      -------------------- ------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
U.S. GAAP ETR(2)                                                                                                                  18.9%                                                                (171.2%)                                                                  25.0%                                                                  20.8%                                                                  23.1%                                                                 (1.9%)
Pro forma discrete tax items(3):
    Switzerland corporate tax election                                                                           -                                                                 168,755                                                                      -                                                                      -                                                                 11,279                                                                180,034
    Impact of share-based award expirations                                                   -                                 -        (7,275 )                              -       (15,345 )                                           (22,620 )
                                                                                      -------------------- ------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
Total pro forma discrete tax items                                                            -                           168,755        (7,275 )                              -        (4,066 )                                           157,414  
                                                                                      -------------------- ------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
Pro Forma Income Tax Provision                                                                           $ 118,856                                           $   18,635                        $  49,830                        $  38,643                        $  37,644                                           $ 144,753  
                                                                                      -------------------- ------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
Pro Forma ETR                                                                                                                     18.9%                                                                   21.3%                                                                  21.9%                                                                  20.8%                                                                  20.9%                                                                  21.2%
                                                                                       
                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                            Restated(1)
                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             FY 16                                                                  Q1 17                                                                   Q2 17                                                                  Q3 17                                                                  Q4 17                                                                  FY 17
Income before income taxes                                                                               $ 638,625                                                              $   88,375                                                              $ 234,327                                                              $ 189,914                                                              $ 184,455                                                              $ 697,071
U.S. GAAP income tax provision (benefit)                                                122,890                          (149,519 )                         58,699        39,935        42,983                           (7,902 )
                                                                                      -------------------- ------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
U.S. GAAP ETR(2)                                                                                                                  19.2%                                                                (169.2%)                                                                  25.1%                                                                  21.0%                                                                  23.3%                                                                 (1.1%)
Pro forma discrete tax items(3):
    Switzerland corporate tax election                                                                           -                                                                 168,755                                                                      -                                                                      -                                                                 11,279                                                                180,034
    Impact of share-based award expirations                                                   -                                 -        (7,275 )                              -       (15,345 )                                           (22,620 )
                                                                                      -------------------- ------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
Total pro forma discrete tax items                                                            -                           168,755        (7,275 )                              -        (4,066 )                                           157,414  
                                                                                      -------------------- ------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
Pro Forma Income Tax Provision                                                                           $ 122,890                                           $   19,236                        $  51,424                        $  39,935                        $  38,917                                           $ 149,512  
                                                                                      -------------------- ------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
Pro Forma ETR                                                                                                  19.2%                                                21.8%                            21.9%                            21.0%                            21.1%                                               21.4%
                                                                                      -------------------- -----------------------------                     -------------------- -------------------------------------------------- -------------------- ------------------------------------------------- -------------------- ------------------------------------------------- -------------------- -----------------------------                     -------------------- -----------------------------
(1)   Effective for the fiscal year ending December 29, 2018, we have
                         adopted ASC Topic 606. The results above are restated under ASC
                         Topic 606.
                          
(2)                      Effective tax rate is calculated by taking the Income tax
                         provision (benefit) divided by Income before taxes.
                          
(3)                      The discussion of the nature and purpose of discrete tax items
                         identified for pro forma adjustments is located above in the
                         "Non-GAAP Financial Information" section of this earnings release,
                         under the heading "Pro forma effective tax rate."
                          
                          
                                                                                                                                                                               Garmin Ltd. And Subsidiaries
                                                                                                                                                                         Pro Forma Net Income (Earnings) Per Share
                                                                                                                                                                       (in thousands, except per share information)
                                                      
                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                 Previously Reported
                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        FY 16                           Q1 17                           Q2 17                           Q3 17                           Q4 17                            FY 17
                                                                                                                                                                                                                                                                                                                                                           
Net income (GAAP)                                                                          $510,814                                           $237,812                                           $170,950                                           $147,413                                           $138,780                                             $694,955
Foreign currency gains / losses(2)                                                           31,651                                             37,497                                            (15,110 )                                           (8,579 )                                            8,772                                               22,579
Tax effect of foreign currency gains / losses(3)                                             (5,974 )                                           (7,969 )                                            3,302                                              1,782                                             (1,829 )                                             (4,791 )
Discrete tax items(4)                                                                             -                        (168,755 )                         7,275            -        4,066                          (157,414 )
                                                                                           -------- --------------------                      -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------                      ---------- --------------------
Net income (Pro Forma)                                                                     $536,491                         $98,585     $166,417     $140,616     $149,789                          $555,329  
                                                                                           -------- --------------------                      -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                           
Diluted earnings per share (GAAP)                                                             $2.70                                              $1.26                                              $0.91                                              $0.78                                              $0.73                                                $3.68
                                                                                                                                                                                                                                                                                                                                                           
Diluted earnings per share (Pro Forma)                                                        $2.83                                              $0.52                                              $0.88                                              $0.75                                              $0.79                                                $2.94
                                                                                                                                                                                                                                                                                                                                                           
                                                                                            
                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Restated(1)
                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        FY 16                                              Q1 17                                              Q2 17                                              Q3 17                                              Q4 17                                               FY 17
                                                                                                                                                                                                                                                                                                                                                           
Net income (GAAP)                                                                          $515,735                                           $237,894                                           $175,628                                           $149,979                                           $141,472                                             $704,973
Foreign currency gains / losses(2)                                                           31,651                                             37,497                                            (15,110 )                                           (8,579 )                                            8,772                                               22,579
Tax effect of foreign currency gains / losses(3)                                             (5,974 )                                           (7,969 )                                            3,302                                              1,782                                             (1,829 )                                             (4,791 )
Discrete tax items(4)                                                                             -                        (168,755 )                         7,275            -        4,066                          (157,414 )
                                                                                           -------- --------------------                      -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------                      ---------- --------------------
Net income (Pro Forma)                                                                     $541,412                         $98,667     $171,095     $143,182     $152,481                          $565,347  
                                                                                           -------- --------------------                      -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                           
Diluted earnings per share (GAAP)                                                             $2.72                                              $1.26                                              $0.93                                              $0.80                                              $0.75                                                $3.74
                                                                                                                                                                                                                                                                                                                                                           
Diluted earnings per share (Pro Forma)                                                        $2.86                                              $0.52                                              $0.91                                              $0.76                                              $0.81                                                $3.00
(1)   Effective for the fiscal year ending December 29, 2018, we have
                         adopted ASC Topic 606. The results above are restated under ASC
                         Topic 606.
                          
(2)                      The majority of the Company’s consolidated foreign currency gains
                         and losses are typically 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 gains and
                         losses.
                          
(3)                      The tax effect of foreign currency gains and losses is calculated
                         using the pro forma ETR for the respective period, as presented
                         above. The quarterly tax effects may not cross-foot to the annual
                         tax effect due to quarterly variances in pro forma ETR.
                          
(4)                      The discrete tax items are discussed in the pro forma effective
                         tax rate section.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180221005466r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180221005466/en/

SOURCE: Garmin Ltd.

Garmin Ltd. 
Investor Relations Contact: 
Teri Seck, 913/397-8200 
investor.relations@garmin.com 
or 
Media Relations Contact: 
Ted Gartner, 913/397-8200 
media.relations@garmin.com


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2019 StockSelector.com. All rights reserved.