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Document and Entity Information
v2.2.0.8
Document and Entity Information
6 Months Ended
Jun. 26, 2010
Aug. 02, 2010
Document Type 10-Q
Amendment Flag false
Document Period End Date 2010-06-26
Document Fiscal Period Focus Q2
Document Fiscal Year Focus 2010
Entity Registrant Name GARMIN LTD
Entity Central Index Key 0001121788
Current Fiscal Year End Date --12-25
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 194,596,361

Condensed Consolidated Balance Sheets
v2.2.0.8
Condensed Consolidated Balance Sheets (USD $)
In Thousands
Jun. 26, 2010
Dec. 26, 2009
Assets
Cash and cash equivalents $ 1,173,169 $ 1,091,581
Marketable securities 18,622 19,583
Accounts receivable, net 499,324 874,110
Inventories, net 358,576 309,938
Deferred income taxes 57,068 59,189
Prepaid expenses and other current assets 52,758 39,470
Total current assets 2,159,517 2,393,871
Property and equipment, net 426,805 441,338
Marketable securities 636,184 746,464
Restricted cash 936 2,047
Licensing agreements, net 2,531 15,400
Noncurrent deferred income tax 20,498 20,498
Other intangible assets, net 184,888 206,256
Total assets 3,431,359 3,825,874
Liabilities and Stockholders' Equity
Accounts payable 150,519 203,388
Salaries and benefits payable 36,568 45,236
Accrued warranty costs 41,445 87,424
Accrued sales program costs 46,656 119,150
Deferred revenue 46,620 27,910
Accrued advertising expense 22,154 34,146
Other accrued expenses 81,162 143,568
Income taxes payable 11,312 22,846
Total current liabilities 436,436 683,668
Deferred income taxes 8,521 10,170
Non-current income taxes 275,876 255,748
Non-current deferred revenue 57,595 38,574
Other liabilities 1,317 1,267
Stockholders' equity:
Common stock, $0.005 par value, 1,000,000,000 shares authorized: Issued and outstanding shares - 197,554,000 as of June 26, 2010 and 200,274,000 as of December 26, 2009 987 1,001
Additional paid-in capital 32,221
Retained earnings 2,648,589 2,816,607
Accumulated other comprehensive income/(loss) 2,038 (13,382)
Total stockholders' equity 2,651,614 2,836,447
Total liabilities and stockholders' equity $ 3,431,359 $ 3,825,874

Condensed Consolidated Balance Sheets (Parenthetical)
v2.2.0.8
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 26, 2010
Dec. 26, 2009
Common Stock, Par Value $ 0.005 $ 0.005
Common Stock, Shares Authorized 1,000,000,000 1,000,000,000
Common Stock, Shares Issued 197,554,000 200,274,000
Common Stock, Shares Outstanding 197,554,000 200,274,000

Condensed Consolidated Statements of Income
v2.2.0.8
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data
3 Months Ended 6 Months Ended
Jun. 26, 2010
Jun. 27, 2009
Jun. 26, 2010
Jun. 27, 2009
Net sales $ 728,765 $ 669,104 $ 1,159,833 $ 1,105,803
Cost of goods sold 337,113 317,490 537,272 558,194
Gross profit 391,652 351,614 622,561 547,609
Advertising expense 42,440 34,023 59,841 57,248
Selling, general and administrative expense 73,832 62,186 141,509 121,963
Research and development expense 73,337 56,253 135,820 111,287
Total operating expense 189,609 152,462 337,170 290,498
Operating income 202,043 199,152 285,391 257,111
Interest income 5,791 5,190 12,669 10,286
Foreign currency (43,605) (4,836) (90,141) (7,274)
Other 180 335 2,013 (359)
Total other income (expense) (37,634) 689 (75,459) 2,653
Income before income taxes 164,409 199,841 209,932 259,764
Income tax provision 29,593 37,970 37,788 49,355
Net income $ 134,816 $ 161,871 $ 172,144 $ 210,409
Net income per share:
Basic $ 0.68 $ 0.81 $ 0.86 $ 1.05
Diluted $ 0.67 $ 0.81 $ 0.86 $ 1.05
Weighted average common shares outstanding:
Basic 198,948 200,296 199,437 200,364
Diluted 200,102 200,853 200,626 200,814
Cash dividends declared per common share $ 1.5 $ 0.75 $ 1.5 $ 0.75

Condensed Consolidated Statements of Cash Flows
v2.2.0.8
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands
6 Months Ended
Jun. 26, 2010
Jun. 27, 2009
Operating Activities:
Net income $ 172,144 $ 210,409
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 26,746 26,335
Amortization 24,809 15,914
Gain on sale of property and equipment (6) (108)
Provision for doubtful accounts (552) (5,223)
Deferred income taxes (30) (718)
Foreign currency transaction gains/losses 47,880 (4,493)
Provision for obsolete and slow moving inventories 10,309 14,111
Stock compensation expense 19,099 21,029
Realized gains on marketable securities (470) (1,274)
Changes in operating assets and liabilities:
Accounts receivable 364,401 233,166
Inventories (64,272) 89,044
Other current assets (1,468) (2,415)
Accounts payable (52,248) (23,175)
Other current and non-current liabilities (193,657) (4,838)
Deferred revenue 37,425
Income taxes payable (7,771) (5,140)
Purchase of licenses (472) (6,936)
Net cash provided by operating activities 381,867 555,688
Investing activities:
Purchases of property and equipment (13,220) (23,343)
Proceeds from sale of property and equipment (7)
Purchase of intangible assets (8,229) (3,496)
Purchase of marketable securities (169,062) (341,423)
Redemption of marketable securities 294,350 68,173
Change in restricted cash 1,111 (125)
Net cash provided by/(used in) investing activities 104,950 (300,221)
Financing activities:
Proceeds from issuance of common stock from exercise of stock options 5,452 310
Proceeds from issuance of common stock from stock purchase plan 3,712
Stock repurchase (84,328) (1,849)
Dividends paid (299,103)
Tax benefit related to stock option exercise 1,898 65
Net cash provided by/(used in) financing activities (376,081) 2,238
Effect of exchange rate changes on cash and cash equivalents (29,148) 4,869
Net increase in cash and cash equivalents 81,588 262,574
Cash and cash equivalents at beginning of period 1,091,581 696,335
Cash and cash equivalents at end of period $ 1,173,169 $ 958,909

Basis of Presentation
v2.2.0.8
Basis of Presentation
6 Months Ended
Jun. 26, 2010
Basis of Presentation
1.
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the 13-week and 26-week periods ended June 26, 2010 are not necessarily indicative of the results that may be expected for the year ending December 25, 2010.

The condensed consolidated balance sheet at December 26, 2009 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 26, 2009.

The Company's fiscal year is based on a 52-53 week period ending on the last Saturday of the calendar year.  Therefore the financial results of certain fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated quarters having only 13-weeks.  The quarters ended June 26, 2010 and June 27, 2009 both contain operating results for 13-weeks for both year-to-date periods.

Inventories
v2.2.0.8
Inventories
6 Months Ended
Jun. 26, 2010
Inventories
2.
Inventories

The components of inventories consist of the following:
 
 
June 26, 2010
   
December 26, 2009
 
             
Raw Materials
  $ 107,121     $ 80,963  
Work-in-process
    39,517       32,587  
Finished goods
    245,353       235,286  
Inventory Reserves
    (18,701 )     (38,898 )
Inventory, net of reserves
  $ 373,290     $ 309,938  


Share Repurchase Plan
v2.2.0.8
Share Repurchase Plan
6 Months Ended
Jun. 26, 2010
Share Repurchase Plan
3.
Share Repurchase Plan

The Board of Directors approved a share repurchase program on February 12, 2010, authorizing the Company to purchase up to $300,000 of its common shares as market and business conditions warrant on the open market or in negotiated transactions in compliance with the SEC's Rule 10b-18.   The share repurchase authorization expires on December 31, 2010.   As of June 26, 2010, the Company had repurchased 3,085,107 shares using cash of $99,586.  Of this amount, approximately $15,491 of repurchase trades remained unsettled at June 26, 2010.  After settlement of these trades, there remains approximately $200,414 available for repurchase under this authorization.

Earnings Per Share
v2.2.0.8
Earnings Per Share
6 Months Ended
Jun. 26, 2010
Earnings Per Share
4.
Earnings Per Share

The following table sets forth the computation of basic and diluted net income per share:
 
   
13-Weeks Ended
 
   
June 26,
   
June 27,
 
   
2010
   
2009
 
Numerator:
           
Numerator for basic and diluted net income per share - net income
  $ 134,816     $ 161,871  
                 
Denominator:
               
Denominator for basic net income per share – weighted-average common shares
    198,948       200,296  
                 
Effect of dilutive securities – employee stock options
    1,154       557  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares
    200,102       200,853  
                 
Basic net income per share
  $ 0.68     $ 0.81  
                 
Diluted net income per share
  $ 0.67     $ 0.81  
                 
   
26-Weeks Ended
 
   
June 26,
   
June 27,
 
   
2010
   
2009
 
Numerator:
               
Numerator for basic and diluted net income per share - net income
  $ 172,144     $ 210,409  
                 
Denominator:
               
Denominator for basic net income per share – weighted-average common shares
    199,437       200,364  
                 
Effect of dilutive securities – employee stock options
    1,189       450  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares
    200,626       200,814  
                 
Basic net income per share
  $ 0.86     $ 1.05  
                 
Diluted net income per share
  $ 0.86     $ 1.05  

There were 6,186,519 anti-dilutive options for the 13-week period ended June 26, 2010.   There were 7,948,978 anti-dilutive options for the 13-week period ended June 27, 2009.
 
There were 6,198,202 anti-dilutive options for the 26-week period ended June 26, 2010.   There were 8,548,181 anti-dilutive options for the 26-week period ended June 27, 2009.

There were 73,574 shares issued as a result of exercises of stock appreciation rights and stock options for the 13-week period ended June 26, 2010.  There were 12,622 shares issued as a result of exercises of stock appreciation rights and stock options for the 13-week period ended June 27, 2009.

There were 365,288 shares issued as a result of exercises of stock appreciation rights and stock options for the 26-week period ended June 26, 2010.  There were 24,720 shares issued as a result of exercises of stock appreciation rights and stock options for the 26-week period ended June 27, 2009.

Comprehensive Income
v2.2.0.8
Comprehensive Income
6 Months Ended
Jun. 26, 2010
Comprehensive Income
5.
Comprehensive Income

Comprehensive income is comprised of the following:

 
   
13-Weeks Ended
 
   
June 26,
   
June 27,
 
   
2010
   
2009
 
Net income
  $ 134,816     $ 161,871  
Translation adjustment
    (7,821 )     26,236  
Change in fair value of available-for-sale marketable securities, net of deferred taxes
    8,838       1,199  
Comprehensive income
  $ 135,833     $ 189,306  

   
26-Weeks Ended
 
   
June 26,
   
June 27,
 
   
2010
   
2009
 
Net income
  $ 172,144     $ 210,409  
Translation adjustment
    218       7,473  
Change in fair value of available-for-sale marketable securities, net of deferred taxes
    15,201       (4,842 )
Comprehensive income
  $ 187,563     $ 213,040  

Segment Information
v2.2.0.8
Segment Information
6 Months Ended
Jun. 26, 2010
Segment Information
6.
Segment Information

Net sales, operating income, and income before taxes for each of the Company's reportable segments are presented below:
 

   
 
Reportable Segments
 
   
 
Outdoor/
         
Auto/
             
   
 
Fitness
   
Marine
   
Mobile
   
Aviation
   
Total
 
13-Weeks Ended June 26, 2010
                             
   
                             
Net sales  
  $ 142,316     $ 74,310     $ 447,225     $ 64,914     $ 728,765  
Operating income  
  $ 62,759     $ 32,146     $ 88,548     $ 18,590     $ 202,043  
Income before taxes
  $ 55,650     $ 28,616     $ 62,419     $ 17,724     $ 164,409  
   
                                       
13-Weeks Ended June 27, 2009
                                       
   
                                       
Net sales  
  $ 108,009     $ 60,198     $ 436,718     $ 64,179     $ 669,104  
Operating income  
  $ 50,416     $ 21,342     $ 106,712     $ 20,682     $ 199,152  
Income before taxes
  $ 51,255     $ 21,722     $ 105,474     $ 21,390     $ 199,841  
   
                                       
26-Weeks Ended June 26, 2010
                                       
   
                                       
Net sales  
  $ 245,052     $ 115,625     $ 668,149     $ 131,007     $ 1,159,833  
Operating income  
  $ 101,327     $ 41,075     $ 105,530     $ 37,459     $ 285,391  
Income before taxes
  $ 86,815     $ 35,244     $ 52,163     $ 35,710     $ 209,932  
   
                                       
26-Weeks Ended June 27, 2009
                                       
   
                                       
Net sales  
  $ 188,013     $ 98,215     $ 696,304     $ 123,271     $ 1,105,803  
Operating income  
  $ 78,920     $ 31,914     $ 111,318     $ 34,959     $ 257,111  
Income before taxes
  $ 78,915     $ 31,444     $ 114,632     $ 34,773     $ 259,764  

Allocation of certain research and development expenses, and selling, general, and administrative expenses are made to each segment on a percent of revenue basis.

Net sales and property and equipment, net by geographic area are as follows as of and for the 26-week periods ended June 26, 2010 and June 27, 2009:

   
 
Americas
   
Asia
   
Europe
   
Total
 
June 26, 2010
                       
Net sales to external customers
  $ 696,120     $ 91,681     $ 372,032     $ 1,159,833  
Property and equipment, net
  $ 231,064     $ 146,087     $ 49,654     $ 426,805  
   
                               
June 27, 2009  
                               
Net sales to external customers
  $ 701,603     $ 64,026     $ 340,174     $ 1,105,803  
Property and equipment, net
  $ 228,976     $ 159,931     $ 54,119     $ 443,026  

Warranty Reserves
v2.2.0.8
Warranty Reserves
6 Months Ended
Jun. 26, 2010
Warranty Reserves
7.
Warranty Reserves
 
The Company's products sold are generally covered by a warranty for periods ranging from one to two years.   The Company's estimate of costs to service its warranty obligations are based on historical experience and expectation of future conditions and are recorded as a liability on the balance sheet.   The following reconciliation provides an illustration of changes in the aggregate warranty reserve.
 
   
13-Weeks Ended
 
   
June 26,
   
June 27,
 
   
2010
   
2009
 
             
Balance - beginning of the period
  $ 58,814     $ 68,847  
Change in accrual for products sold in prior periods
  $ (21,000 )     -  
Accrual for products sold during the period
    15,705       31,106  
Expenditures
    (12,074 )     (19,985 )
Balance - end of the period
  $ 41,445     $ 79,968  

   
26-Weeks Ended
 
   
June 26,
   
June 27,
 
   
2010
   
2009
 
             
Balance - beginning of the period
  $ 87,424     $ 87,408  
Change in accrual for products sold in prior periods
  $ (42,776 )     -  
Accrual for products sold during the period
    30,618       49,621  
Expenditures
    (33,821 )     (57,061 )
Balance - end of the period
  $ 41,445     $ 79,968  

The 13-weeks and 26-weeks ended June 26, 2010 include the effect of a refinement in the estimated warranty reserve which decreased the accrual for the periods by $21,000 and $42,776, respectively
 

Commitments
v2.2.0.8
Commitments
6 Months Ended
Jun. 26, 2010
Commitments
8.
Commitments

We are a party to certain commitments, which includes raw materials, advertising and other indirect purchases in connection with conducting out business.  Pursuant to these agreements, the Company is contractually committed to make purchases of approximately $70,142 over the next 5 years.

Income Taxes
v2.2.0.8
Income Taxes
6 Months Ended
Jun. 26, 2010
Income Taxes
9.     Income Taxes

Our earnings before taxes decreased 18% when compared to the same quarter in 2009, and our income tax expense decreased by $8,377 or 22%, to $29,593, for the 13-week period ended June 26, 2010, from $37,970 for the 13-week period ended June 27, 2009, due to our earnings before taxes decline.  The effective tax rate was 18.0% for both the 13-weeks and 26-weeks ended June 26, 2010 and 19.0% for the 13-weeks and 26-weeks ended June 27, 2009.   The slight decrease is due to the mix of income by tax jurisdiction.  We have experienced a relatively low effective corporate tax rate due to the proportion of our revenue generated by entities in tax jurisdictions with low statutory rates.   In particular,  the profit entitlement afforded our parent company based on its intellectual property rights ownership of our consumer products along with substantial tax incentives offered by the Taiwanese government on certain high-technology capital investments have continued to generate a relatively low tax rate.

Fair Value Measurements
v2.2.0.8
Fair Value Measurements
6 Months Ended
Jun. 26, 2010
Fair Value Measurements
10.   Fair Value Measurements
 
The Accounting Standards Code (ASC) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).  The ASC classifies the inputs used to measure fair value into the following hierarchy:
 
Level 1
Unadjusted quoted prices in active markets for identical assets or liability
 
Level 2
Unadjusted quoted prices in active markets for similar assets or liabilities
 
Level 3
Unobservable inputs for the asset or liability
 
The Company endeavors to utilize the best available information in measuring fair value.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
For fair value measurements using significant unobservable inputs, an independent third party provided the valuation.  The collateral composition was used to estimate Weighted Average Life based on historical and projected payment information.  Cash flows were projected for the issuing trusts, taking into account underlying loan principal, bonds outstanding, and payout formulas.  Taking this information into account, assumptions were made as to the yields likely to be required, based upon then current market conditions for comparable or similar term Asset Based Securities as well as other fixed income securities.
 
Assets and liabilities measured at estimated fair value on a recurring basis are summarized below:
 
   
Fair Value Measurements as
 
   
of June 26, 2010
 
Description
 
Total
   
Level 1
   
Level 2
   
Level 3
 
                                 
Available for-sale securities
  $ 590,260     $ 590,260     $ -     $ -  
Failed Auction rate securities
    64,546       -       -       64,546  
                                 
Total
  $ 654,806     $ 590,260     $ -     $ 64,546  
 
   
Fair Value Measurements as
 
   
of December 26, 2009
 
Description
 
Total
   
Level 1
   
Level 2
   
Level 3
 
                         
Available for-sale securities
  $ 695,795     $ 695,795     $ -     $ -  
Failed Auction rate securities
    70,252       -       -       70,252  
                                 
Total
  $ 766,047     $ 695,795     $ -     $ 70,252  
 
All Level 3 investments have been in a continuous unrealized loss position for 12 months or longer.  However, it is the Company's intent to hold these securities until they recover their value.  For assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period, the ASC requires a reconciliation of the beginning and ending balances, separately for each major category of assets.  The reconciliation is as follows:
 
   
Fair Value Measurements Using
 
   
Significant Unobservable Inputs (Level 3)
 
   
13-Weeks Ended
   
26-Weeks Ended
 
   
June 26, 2010
   
June 26, 2010
 
             
Beginning balance of auction rate securities
  $ 70,558     $ 70,252  
Total unrealized gains included in other comprehensive income
    3,988       4,844  
Sales out of Level 3
    (10,000 )     (10,550 )
Transfers in and/or out of Level 3
    -       -  
Ending balance of auction rate securities
  $ 64,546     $ 64,546  
 
              The following is a summary of the company's marketable securities classified as available-for-sale securities at June 26, 2010:
 
               
Gross
   
Other Than
   
Estimated Fair
 
         
Gross
   
Unrealized
   
Temporary
   
Value (Net Carrying
 
   
Amortized Cost
   
Unrealized Gains
   
Losses
   
Impairment
   
Amount)
 
Mortgage-backed securities
  $ 423,312     $ 7,866     $ (343 )   $ -     $ 430,835  
Auction Rate Securities
    81,150       -       (16,604 )     -     $ 64,546  
Obligations of states and political subdivisions
    95,981       1,407       (42 )     -     $ 97,346  
U.S. corporate bonds
    38,597       1,001       (290 )     (1,274 )   $ 38,034  
Other
    23,810       372       (137 )     -     $ 24,045  
Total
  $ 662,850     $ 10,646     $ (17,416 )   $ (1,274 )   $ 654,806  
 
The following is a summary of the company's marketable securities classified as available-for-sale securities at December 26, 2009:
 
               
Gross
   
Other Than
   
Estimated Fair
 
         
Gross
   
Unrealized
   
Temporary
   
Value (Net Carrying
 
   
Amortized Cost
   
Unrealized Gains
   
Losses
   
Impairment
   
Amount)
 
Mortgage-backed securities
  $ 515,200     $ 2,682     $ (4,674 )   $ -     $ 513,208  
Auction Rate Securities
    91,700       -       (21,448 )     -     $ 70,252  
Obligations of states and political subdivisions
    112,419       908       (181 )     -     $ 113,146  
U.S. corporate bonds
    35,883       768       (701 )     (1,274 )   $ 34,676  
Other
    33,903       1,070       (208 )     -     $ 34,765  
Total
  $ 789,105     $ 5,428     $ (27,212 )   $ (1,274 )   $ 766,047  
 
The cost of securities sold is based on the specific identification method.
 
The amortized cost and estimated fair value of marketable securities at June 26, 2010, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
 
         
Estimated
 
   
Cost
   
Fair Value
 
                 
Due in one year or less (2010)
  $ 18,535     $ 18,622  
Due after one year through five years (2011-2015)
    182,853       183,659  
Due after five years through ten years (2016-2020)
    181,957       184,147  
Due after ten years (2021 and thereafter)
    263,811       252,320  
Other (No contractual maturity dates)
    15,694       16,058  
    $ 662,850     $ 654,806  

Recently Issued Accounting Pronouncements
v2.2.0.8
Recently Issued Accounting Pronouncements
6 Months Ended
Jun. 26, 2010
Recently Issued Accounting Pronouncements
11.  Recently Issued Accounting Pronouncements
 
In January 2010, the FASB issued ASU No. 2010-06, "Improving Disclosures about Fair Value Measurements" ("ASU 2010-06"), which is included in the ASC Topic 820 (Fair Value Measurements and Disclosures). ASU 2010-06 requires new disclosures on the amount and reason for transfers in and out of Level 1 and 2 fair value measurements.  ASU 2010-06 also requires disclosure of activities, including purchases, sales, issuances, and settlements within the Level 3 fair value measurements and clarifies existing disclosure requirements on levels of disaggregation and disclosures about inputs and valuation techniques.  ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009. The adoption of this standard did not have a material effect on our financial statements.
 
In February 2010, the FASB issued ASU No. 2010-09, "Amendments to Certain Recognition and Disclosure Requirements" ("ASU 2010-09"), which is included in the FASB Accounting Standards Codification (the "ASC") Topic 855 (Subsequent Events).  ASU 2010-09 clarifies that an SEC filer is required to evaluate subsequent events through the date that the financial statements are issued.  ASU 2010-09 is effective upon the issuance of the final update and did not have a significant impact on the Company's financial statements.

Subsequent Events
v2.2.0.8
Subsequent Events
6 Months Ended
Jun. 26, 2010
Subsequent Events
12.  Subsequent Events
 
Subsequent to quarter end, the Company completed the redomestication of its headquarters to Switzerland from the Cayman Islands.  The redomestication is not expected to have a significant impact on the Company's financial statements.

Subsequent to quarter end, the Company repurchased 3,000,000 shares pursuant to the Rule 10b5-1 plan adopted on March 24, 2010.  There remains approximately $111,637 available for repurchase under the authorization.