GARMIN LTD (GRMN) Form 10-Q for Period Ending 9/24/2011
Xcelerate Version: 6.12.8
 
Document and Entity Information
Oct. 31, 2011
9 Months Ended
Sep. 24, 2011
Document Type
 
10-Q 
Amendment Flag
 
FALSE 
Document Period End Date
 
09/24/2011 
Document Fiscal Year Focus
 
2011 
Document Fiscal Period Focus
 
Q3 
Trading Symbol
 
GRMN 
Entity Registrant Name
 
GARMIN LTD 
Entity Central Index Key
 
0001121788 
Current Fiscal Year End Date
 
12/31 
Entity Filer Category
 
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
208,077,418 
 
Condensed Consolidated Balance Sheets (USD $)
In Thousands
Sep. 24, 2011
Dec. 25, 2010
Assets
 
 
Current assets:
 
 
Cash and cash equivalents
$ 1,389,406 
$ 1,260,936 
Marketable securities
72,784 
24,418 
Accounts receivable, net
519,226 
747,249 
Inventories, net
461,304 
387,577 
Deferred income taxes
26,297 
33,628 
Deferred costs
31,780 
20,053 
Prepaid expenses and other current assets
53,117 
24,894 
Total current assets
2,553,914 
2,498,755 
Property and equipment, net
423,041 
427,805 
Marketable securities
983,563 
777,401 
Restricted cash
1,399 
1,277 
Licensing agreements, net
7,603 
1,800 
Noncurrent deferred income tax
73,613 
73,613 
Noncurrent deferred costs
36,134 
24,685 
Other intangible assets, net
255,618 
183,352 
Total assets
4,334,885 
3,988,688 
Liabilities and Stockholders' Equity
 
 
Current liabilities:
 
 
Accounts payable
182,651 
132,348 
Salaries and benefits payable
46,591 
49,288 
Accrued warranty costs
43,473 
49,885 
Accrued sales program costs
44,549 
107,261 
Deferred revenue
139,528 
89,711 
Accrued royalty costs
77,907 
95,086 
Accrued advertising expense
24,595 
21,587 
Other accrued expenses
97,081 
63,043 
Deferred income taxes
4,645 
4,800 
Income taxes payable
20,163 
56,028 
Dividend payable
232,889 
Total current liabilities
914,072 
669,037 
Deferred income taxes
12,199 
6,986 
Non-current income taxes
165,545 
153,621 
Non-current deferred revenue
173,355 
108,076 
Other liabilities
1,522 
1,406 
Stockholders' equity:
 
 
Shares, CHF 10 par value, 208,077,418 shares authorized and issued; 194,171,773 shares outstanding at September 24, 2011; and 194,358,038 shares outstanding at December 25, 2010;
1,797,435 
1,797,435 
Additional paid-in capital
61,309 
38,268 
Treasury stock
(113,681)
(106,758)
Retained earnings
1,248,443 
1,264,613 
Accumulated other comprehensive income
74,686 
56,004 
Total stockholders' equity
3,068,192 
3,049,562 
Total liabilities and stockholders' equity
$ 4,334,885 
$ 3,988,688 
Condensed Consolidated Balance Sheets (Parenthetical) (CHF SwF)
Sep. 24, 2011
Dec. 25, 2010
Shares, par value
SwF 10 
SwF 10 
Shares, shares authorized
208,077,418 
208,077,418 
Shares, shares issued
208,077,418 
208,077,418 
Shares, shares outstanding
194,171,773 
194,358,038 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
3 Months Ended
Sep. 25, 2010
9 Months Ended
Sep. 25, 2010
Net sales
$ 666,993 
$ 1,848,925 
$ 692,364 
$ 1,852,196 
Cost of goods sold
322,662 
944,120 
348,344 
885,615 
Gross profit
344,331 
904,805 
344,020 
966,581 
Advertising expense
35,310 
89,364 
41,002 
100,843 
Selling, general and administrative expense
88,751 
247,833 
66,869 
208,379 
Research and development expense
72,936 
213,930 
69,512 
205,332 
Total operating expense
196,997 
551,127 
177,383 
514,554 
Operating income
147,334 
353,678 
166,637 
452,027 
Other income (expense):
 
 
 
 
Interest income
8,464 
23,318 
5,695 
18,364 
Foreign currency gains (losses)
14,893 
12,422 
35,527 
(54,614)
Other
4,345 
9,616 
3,057 
5,071 
Total other income (expense)
27,702 
45,356 
44,279 
(31,179)
Income before income taxes
175,036 
399,034 
210,916 
420,848 
Income tax provision (benefit)
24,655 
43,694 
(68,636)
(30,848)
Net income
150,381 
355,340 
279,552 
451,696 
Net income per share:
 
 
 
 
Basic
0.77 
1.83 
1.44 
2.28 
Diluted
0.77 
1.82 
1.43 
2.27 
Weighted average common shares outstanding:
 
 
 
 
Basic
194,112 
194,028 
194,482 
197,785 
Diluted
194,828 
194,809 
195,305 
198,891 
Dividends declared per share
 
$ 2.00 
 
$ 1.50 
Condensed Consolidated Statements of Cash Flows (USD $)
9 Months Ended
In Thousands
Sep. 24, 2011
Sep. 25, 2010
Operating Activities:
 
 
Net income
$ 355,340 
$ 451,696 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation
40,558 
39,755 
Amortization
19,772 
32,471 
Loss (gain) on sale of property and equipment
(2,407)
34 
Provision for doubtful accounts
6,227 
(3,104)
Deferred income taxes
12,429 
260 
Unrealized foreign currency losses/(gains)
(5,366)
38,635 
Provision for obsolete and slow moving inventories
2,590 
14,406 
Stock compensation expense
27,258 
29,412 
Realized losses/(gains) on marketable securities
(5,633)
1,022 
Changes in operating assets and liabilities, net of acquisitions:
 
 
Accounts receivable
256,656 
351,225 
Inventories
(58,655)
(196,270)
Other current assets
(36,713)
24,495 
Accounts payable
(5,603)
(13,051)
Other current and non-current liabilities
(72,349)
(261,132)
Deferred revenue
115,096 
65,552 
Deferred cost
(23,175)
(10,531)
Income taxes payable
(21,987)
24,383 
License fees
(6,562)
(3,043)
Net cash provided by operating activities
597,476 
586,215 
Investing activities:
 
 
Purchases of property and equipment
(26,523)
(22,983)
Purchase of intangible assets
(8,611)
(7,891)
Purchase of marketable securities
(835,965)
(413,312)
Redemption of marketable securities
599,740 
534,500 
Change in restricted cash
(122)
1,091 
Acquisitions, net of cash acquired
(52,688)
 
Net cash (used in)/provided by investing activities
(324,169)
91,405 
Financing activities:
 
 
Proceeds from issuance of common stock through stock purchase and stock option plans
5,619 
6,369 
Taxes paid related to net share settlement of equity awards
(375)
 
Stock repurchase
 
(223,378)
Dividends
(154,835)
(299,103)
Tax benefit related to stock option exercise
1,542 
2,377 
Net cash used in financing activities
(148,049)
(513,735)
Effect of exchange rate changes on cash and cash equivalents
3,212 
(19,501)
Net increase in cash and cash equivalents
128,470 
144,384 
Cash and cash equivalents at beginning of period
1,260,936 
1,091,581 
Cash and cash equivalents at end of period
$ 1,389,406 
$ 1,235,965 
Basis of Presentation
9 Months Ended
Sep. 24, 2011
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 39-week periods ended September 24, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

The condensed consolidated balance sheet at December 25, 2010 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 25, 2010.

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 and year-to-date periods ended September 24, 2011 and September 25, 2010 both contain operating results for 13-weeks and 39-weeks, respectively.
Inventories
9 Months Ended
Sep. 24, 2011
Inventories
2.
Inventories

The components of inventories consist of the following:

   
September 24, 2011
   
December 25, 2010
 
             
Raw Materials
  $ 149,134     $ 103,277  
Work-in-process
    55,311       43,507  
Finished goods
    283,344       278,513  
Inventory Reserves
    (26,485 )     (37,720 )
Inventory, net of reserves
  $ 461,304     $ 387,577
Share Repurchase Plan
9 Months Ended
Sep. 24, 2011
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, 2011.   As of September 24, 2011, the Company had repurchased 7,366,646 shares using cash of $223,149 with all purchases made prior to fiscal 2011.  There remains approximately $76,851 available for repurchase under this authorization.


In addition, 522,856 shares repurchased for $16,723 prior to the Company’s redomestication to Switzerland on June 27, 2010, but for which transactions settled after that date, were treated as retired when such shares were still in treasury.  These shares were reflected as additional treasury shares during the 13-weeks ended March 26, 2011 with a corresponding increase to retained earnings.
Earnings Per Share
9 Months Ended
Sep. 24, 2011
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
 
   
Sept 24,
   
Sept 25,
 
   
2011
   
2010
 
Numerator:
           
Numerator for basic and diluted net income per share - net income
  $ 150,381     $ 279,552  
                 
Denominator:
               
Denominator for basic net income per share – weighted-average common shares
    194,112       194,482  
                 
Effect of dilutive securities – employee stock options and stock appreciation rights
    716       823  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares
    194,828       195,305  
                 
Basic net income per share
  $ 0.77     $ 1.44  
                 
Diluted net income per share
  $ 0.77     $ 1.43  
                 
   
39-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
    2011     2010  
Numerator:
               
Numerator for basic and diluted net income per share - net income
  $ 355,340     $ 451,696  
                 
Denominator:
               
Denominator for basic net income per share – weighted-average common shares
    194,028       197,785  
                 
Effect of dilutive securities – employee stock options and stock appreciation rights
    781       1,106  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares
    194,809       198,891  
                 
Basic net income per share
  $ 1.83     $ 2.28  
                 
Diluted net income per share
  $ 1.82     $ 2.27  


There were 5,880,506 anti-dilutive options for the 13-week period ended on September 24, 2011.  There were 6,851,107 anti-dilutive options for the 13-week period ended September 25, 2010.

There were 5,966,364 anti-dilutive options for the 39-week period ended on September 24, 2011.  There were 6,225,969 anti-dilutive options for the 39-week period ended September 25, 2010.

There were 84,328 shares issued as a result of exercises of stock appreciation rights and stock options for the 13-week period ended September 24, 2011.  There were 97,369 shares issued as a result of exercises of stock appreciation rights and stock options for the 13-week period ended September 25, 2010.

There were 366,244 shares issued as a result of exercises of stock appreciation rights and stock options for the 39-week period ended September 24, 2011.  There were 462,657 shares issued as a result of exercises of stock appreciation rights and stock options for the 39-week period ended September 25, 2010.
Comprehensive Income
9 Months Ended
Sep. 24, 2011
Comprehensive Income
5.
Comprehensive Income

Comprehensive income is comprised of the following:

   
13-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
   
2011
   
2010
 
Net income
  $ 150,381     $ 279,552  
Translation adjustment
    (53,367 )     26,020  
Change in fair value of available-for-sale marketable securities, net of deferred taxes
    (1,628 )     4,938  
Comprehensive income
  $ 95,386     $ 310,510  
                 
   
39-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
    2011     2010  
Net income
  $ 355,340     $ 451,696  
Translation adjustment
    785       26,213  
Change in fair value of available-for-sale marketable securities, net of deferred taxes
    17,897       20,140  
Comprehensive income
  $ 374,022     $ 498,049
Segment Information
9 Months Ended
Sep. 24, 2011
Segment Information
6.
Segment Information

Beginning in 2011, for external reporting purposes, the Company has identified five operating segments – Auto/Mobile, Aviation, Marine, Outdoor and Fitness.  Each operating segment is individually reviewed and evaluated by our Chief Operating Decision Maker, who allocates resources and assesses performance of each segment individually.  Prior to 2011, the Outdoor and Fitness operating segments were combined into a single reportable segment due to the similar nature of those products, their production processes, the types of customers served, their distribution processes, and similar economic conditions.  Management re-evaluated the combination of these operating segments and determined that based on the growth of these segments they should now be reported as two distinct reportable segments.


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

Garmin Ltd. And Subsidiaries
Revenue, Gross Profit, and Operating Income by Segment

   
Reportable Segments
 
                     
Auto/
             
   
Outdoor
   
Fitness
   
Marine
   
Mobile
   
Aviation
   
Total
 
13-Weeks Ended September 24, 2011
                                   
                                     
Net sales
  $ 94,720     $ 69,030     $ 48,055     $ 384,150     $ 71,038     $ 666,993  
Operating income
  $ 41,331     $ 20,452     $ 9,870     $ 56,215     $ 19,466     $ 147,334  
Income before taxes
  $ 44,149     $ 22,619     $ 11,373     $ 77,566     $ 19,329     $ 175,036  
                                                 
13-Weeks Ended September 25, 2010
                                               
                                                 
Net sales
  $ 90,329     $ 53,656     $ 46,086     $ 441,891     $ 60,402     $ 692,364  
Operating income
  $ 48,230     $ 19,928     $ 15,618     $ 66,588     $ 16,273     $ 166,637  
Income before taxes
  $ 53,319     $ 23,076     $ 17,991     $ 97,770     $ 18,760     $ 210,916  
                                                 
39-Weeks Ended September 24, 2011
                                               
                                                 
Net sales
  $ 242,178     $ 203,411     $ 178,479     $ 1,011,405     $ 213,452     $ 1,848,925  
Operating income
  $ 101,805     $ 61,293     $ 48,360     $ 83,087     $ 59,133     $ 353,678  
Income before taxes
  $ 107,258     $ 65,686     $ 51,896     $ 112,449     $ 61,745     $ 399,034  
                                                 
39-Weeks Ended September 25, 2010
                                               
                                                 
Net sales
  $ 229,562     $ 159,475     $ 161,710     $ 1,110,040     $ 191,409     $ 1,852,196  
Operating income
  $ 110,634     $ 58,851     $ 56,694     $ 172,117     $ 53,731     $ 452,027  
Income before taxes
  $ 107,563     $ 55,648     $ 53,235     $ 149,932     $ 54,470     $ 420,848  

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 shown below as of and for the 39-week periods ended September 24, 2011 and September 25, 2010.  Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa:

   
Americas
   
APAC
   
EMEA
   
Total
 
September 24, 2011
                       
Net sales to external customers
  $ 990,155     $ 176,379     $ 682,391     $ 1,848,925  
Long lived assets
  $ 227,894     $ 145,741     $ 49,406     $ 423,041  
                                 
September 25, 2010
                               
Net sales to external customers
  $ 1,109,376     $ 154,594     $ 588,226     $ 1,852,196  
Long lived assets
  $ 232,546     $ 145,129     $ 50,181     $ 427,856
Warranty Reserves
9 Months Ended
Sep. 24, 2011
Warranty Reserves
7.
Warranty Reserves
 
The Company’s products sold are generally covered by a warranty for periods ranging from one to three 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
 
   
Sept 24,
   
Sept 25,
 
   
2011
   
2010
 
             
Balance - beginning of the period
  $ 41,691     $ 41,445  
Accrual for products sold during the period
    12,737       23,183  
Expenditures
    (10,955 )     (20,605 )
Balance - end of the period
  $ 43,473     $ 44,023  
                 
   
39-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
    2011     2010  
                 
Balance - beginning of the period
  $ 49,885     $ 87,424  
Accrual for products sold during the period
    37,070       53,801  
Expenditures
    (43,482 )     (54,426 )
Change in accrual for products sold in prior periods
    -       (42,776 )
Balance - end of the period
  $ 43,473     $ 44,023  

The 39-weeks ended September 25, 2010 include the effect of a refinement in the estimated warranty reserve which decreased the accrual for the period by $42,776.
Commitments
9 Months Ended
Sep. 24, 2011
Commitments
8.
Commitments

We are a party to certain commitments, which includes raw materials, advertising and other indirect purchases in connection with conducting our business.  Pursuant to these agreements, the Company is contractually committed to make purchases of approximately $100,458 over the next 5 years.
Income Taxes
9 Months Ended
Sep. 24, 2011
Income Taxes
9.
Income Taxes
 
Our earnings before taxes decreased from $210,916 in the third quarter of 2010 to $175,036 in the third quarter of 2011, while our income tax expense increased by $$93,291, to $24,655 for the 13-week period ended September 24, 2011, from ($68,636) for the 13-week period ended September 25, 2010.  For the 39-week period ended September 24, 2011, our earnings before taxes decreased 5% when compared to the same period in 2010, while our income tax expense increased by $74,542, to $43,694, for the 39-week period ended September 24, 2011, from ($30,848) for the 39-week period ended September 25, 2010.   The significant increase was due to the impact of one-time items booked in the third quarter of 2010.  The one-time adjustment of ($114,605) includes the release of uncertain tax position reserves from 2006 to 2008 related to our settlement with the IRS in the US, partially offset by a settlement for the 2007 tax year in the US, and Taiwan surtax expense due to the release of reserves.  Without one-time items, we would have reported an effective tax rate of 22% and 20% for the 13-weeks and the 39-weeks ended September 25, 2010, respectively, compared to 14% and 11% for the 13-weeks and 39-weeks ended September 24, 2011, respectively.  The change in the effective tax rate was primarily due to the first quarter of 2011 release of reserves related to the expiration of certain statutes for the Company’s United Kingdom subsidiary, Garmin (Europe) Ltd. (“Garmin Europe”), and lower reserves provided in 2011 following favorable audits in both 2010 and 2011.
Fair Value Measurements
9 Months Ended
Sep. 24, 2011
Fair Value Measurements
10.
Fair Value Measurements
 
The Accounting Standards Codification (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 September 24, 2011
 
Description
 
Total
   
Level 1
   
Level 2
   
Level 3
 
Available for-sale securities
  $ 1,049,107     $ 1,049,107     $ -     $ -  
Failed Auction rate securities
    7,240       -       -       7,240  
Total
  $ 1,056,347     $ 1,049,107     $ -     $ 7,240  
                                 
   
Fair Value Measurements as of December 25, 2010
 
Description
 
Total
   
Level 1
   
Level 2
   
Level 3
 
Available for-sale securities
  $ 781,257     $ 781,257     $ -     $ -  
Failed Auction rate securities
    20,562       -       -       20,562  
Total
  $ 801,819     $ 781,257     $ -     $ 20,562  
 
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
   
39-Weeks Ended
 
   
Sept 24, 2011
   
Sept 24, 2011
 
             
Beginning balance of auction rate securities
  $ 7,156     $ 20,562  
Total unrealized appreciation included in other comprehensive income
    734       3,228  
Sales out of Level 3
    (650 )     (16,550 )
Ending balance of auction rate securities
  $ 7,240     $ 7,240  
 
The following is a summary of the company’s marketable securities classified as available-for-sale securities at September 24, 2011:
 
 
   
Amortized Cost
   
Gross Unrealized
Gains
   
Gross
Unrealized
Losses
   
Other Than
Temporary 
Impairment
   
Estimated Fair
Value (Net
Carrying Amount)
 
Mortgage-backed securities
  $ 567,083     $ 17,362     $ -     $ -     $ 584,445  
Auction Rate Securities
    9,227       -       (1,987 )     -       7,240  
Obligations of states and political subdivisions
    303,735       2,353       (456 )     -       305,632  
U.S. corporate bonds
    113,174       898       (881 )     (1,274 )     111,917  
Other
    50,944       908       (4,739 )     -       47,113  
Total
  $ 1,044,163     $ 21,521     $ (8,063 )   $ (1,274 )   $ 1,056,347  
 
The following is a summary of the company’s marketable securities classified as available-for-sale securities at December 25, 2010:
 
   
Amortized Cost
   
Gross Unrealized
Gains
   
Gross
Unrealized
Losses
   
Other Than
Temporary
Impairment
   
Estimated Fair
Value (Net
Carrying
Amount)
 
Mortgage-backed securities
  $ 527,249     $ 1,913     $ (1,520 )   $ -     $ 527,642  
Auction Rate Securities
    25,599       -       (5,037 )     -       20,562  
Obligations of states and political subdivisions
    160,618       347       (3,340 )     -       157,625  
U.S. corporate bonds
    54,348       637       (185 )     (1,274 )     53,526  
Other
    39,838       2,626       -       -       42,464  
Total
  $ 807,652     $ 5,523     $ (10,082 )   $ (1,274 )   $ 801,819  
 
The cost of securities sold is based on the specific identification method.
 
The amortized cost and estimated fair value of marketable securities at September 24, 2011, 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
  $ 72,369     $ 72,784  
Due after one year through five years
    295,972       297,430  
Due after five years through ten years
    252,456       254,868  
Due after ten years
    386,778       394,215  
Other (No contractual maturity dates)
    36,588       37,050  
    $ 1,044,163     $ 1,056,347
Change in Accounting Estimate
9 Months Ended
Sep. 24, 2011
Change in Accounting Estimate
11. Change in Accounting Estimate

Sales from products bundled with lifetime map updates and premium traffic services have increased significantly as a percentage of total product sales in 2011, including the impact of new product introductions.  Concurrently, market conditions have caused decreases in the ASP and margins of comparable models year over year.  In addition, the difference in pricing of such bundled units and comparable unbundled models has considerably decreased.  Due to the impact of these and other factors, the Company changed its estimate of the per unit revenue and cost deferrals during the third quarter of 2011. The impact of the change in estimate in the third quarter and year to date period was an increase in gross profit, net income and net income per share (basic and diluted) of $17.8 million, $15.3 million and $0.07, respectively.
Acquisitions
9 Months Ended
Sep. 24, 2011
Acquisitions
12. Acquisitions

In the third quarter of 2011, subsidiaries of Garmin Ltd. completed the following acquisitions:
 
 
·
Navigon AG (“Navigon”), a privately-held navigation provider based in Hamburg, Germany
 
 
 
·
Tri-Tronics Inc., the leading designer and manufacturer of electronic dog training equipment

 
·
Garmin Distribution Africa (Pty) Ltd., the distributor of Garmin’s consumer products in Southern Africa

 
·
Garmap (Pty) Ltd., a South African mapping and mobile applications provider
 
These companies were acquired for an aggregate amount of $68,029 in cash less $15,341 cash acquired. The preliminary purchase price allocation for these acquisitions included goodwill and intangible assets of $74,034. Garmin also recognized $3,923 of restructuring costs in the current quarter related specifically to the Navigon acquisition. Individually and in the aggregate, these acquisitions are not considered material; therefore supplemental pro forma information is not presented. The allocation of purchase price to assets acquired and liabilities assumed in these acquisitions is based upon certain valuations and other analyses, including a review of acquired income tax loss carry forwards that have not been finalized as of the date of this filing. Accordingly, the purchase price allocations are considered preliminary and are subject to future adjustments during the allocation period.
Recently Issued Accounting Pronouncements
9 Months Ended
Nov. 1, 2011
Recently Issued Accounting Pronouncements
13. Recently Issued Accounting Pronouncements

In June 2011, the FASB issued guidance on the presentation of comprehensive income. This guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. The guidance allows two presentation alternatives; present items in net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive, statements of net income and other comprehensive income. This guidance is effective as of the beginning of a fiscal year that begins after December 15, 2011. Early adoption is permitted, but full retrospective application is required under both sets of accounting standards. The Company is currently evaluating which presentation alternative it will utilize.

In September 2011, the FASB issued an amendment to ASC 350, Intangibles—Goodwill and Other, which simplifies how entities test goodwill for impairment. Previous guidance under ASC 350 required an entity to test goodwill for impairment using a two-step process on at least an annual basis. First, the fair value of a reporting unit was calculated and compared to its carrying amount, including goodwill. Second, if the fair value of a reporting unit was less than its carrying amount, the amount of impairment loss, if any, was required to be measured. Under the amendments in this update, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads the entity to determine that it is more likely than not that its fair value is less than its carrying amount. If after assessing the totality of events or circumstances, an entity determines that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then the two-step impairment test is unnecessary. If the entity concludes otherwise, then it is required to test goodwill for impairment under the two-step process as described under paragraphs 350-20-35-4.   If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any, as described in paragraph 350-20-35-9.  The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011 and early adoption is permitted. The Company is currently evaluating whether early adoption will be elected.
Inventories (Tables)
9 Months Ended
Sep. 24, 2011
Components of Inventories
Components of Inventories
The components of inventories consist of the following:

   
September 24, 2011
   
December 25, 2010
 
             
Raw Materials
  $ 149,134     $ 103,277  
Work-in-process
    55,311       43,507  
Finished goods
    283,344       278,513  
Inventory Reserves
    (26,485 )     (37,720 )
Inventory, net of reserves
  $ 461,304     $ 387,577
Earnings Per Share (Tables)
9 Months Ended
Sep. 24, 2011
Computation of Basic and Diluted Net Income Per Share
Computation of Basic and Diluted Net Income Per Share
The following table sets forth the computation of basic and diluted net income per share:
 
   
13-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
   
2011
   
2010
 
Numerator:
           
Numerator for basic and diluted net income per share - net income
  $ 150,381     $ 279,552  
                 
Denominator:
               
Denominator for basic net income per share – weighted-average common shares
    194,112       194,482  
                 
Effect of dilutive securities – employee stock options and stock appreciation rights
    716       823  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares
    194,828       195,305  
                 
Basic net income per share
  $ 0.77     $ 1.44  
                 
Diluted net income per share
  $ 0.77     $ 1.43  
                 
   
39-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
    2011     2010  
Numerator:
               
Numerator for basic and diluted net income per share - net income
  $ 355,340     $ 451,696  
                 
Denominator:
               
Denominator for basic net income per share – weighted-average common shares
    194,028       197,785  
                 
Effect of dilutive securities – employee stock options and stock appreciation rights
    781       1,106  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares
    194,809       198,891  
                 
Basic net income per share
  $ 1.83     $ 2.28  
                 
Diluted net income per share
  $ 1.82     $ 2.27
Comprehensive Income (Tables)
9 Months Ended
Sep. 24, 2011
Comprehensive Income
Comprehensive income is comprised of the following:

   
13-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
   
2011
   
2010
 
Net income
  $ 150,381     $ 279,552  
Translation adjustment
    (53,367 )     26,020  
Change in fair value of available-for-sale marketable securities, net of deferred taxes
    (1,628 )     4,938  
Comprehensive income
  $ 95,386     $ 310,510  
                 
   
39-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
    2011     2010  
Net income
  $ 355,340     $ 451,696  
Translation adjustment
    785       26,213  
Change in fair value of available-for-sale marketable securities, net of deferred taxes
    17,897       20,140  
Comprehensive income
  $ 374,022     $ 498,049
Segment Information (Tables)
9 Months Ended
Sep. 24, 2011
Net Sales, Operating Income, and Income Before Taxes for Each Reportable Segment
Net Sales and Property and Equipment, Net by Geographic Area
Net sales, operating income, and income before taxes for each of the Company’s reportable segments are presented below:

Garmin Ltd. And Subsidiaries
Revenue, Gross Profit, and Operating Income by Segment

   
Reportable Segments
 
                     
Auto/
             
   
Outdoor
   
Fitness
   
Marine
   
Mobile
   
Aviation
   
Total
 
13-Weeks Ended September 24, 2011
                                   
                                     
Net sales
  $ 94,720     $ 69,030     $ 48,055     $ 384,150     $ 71,038     $ 666,993  
Operating income
  $ 41,331     $ 20,452     $ 9,870     $ 56,215     $ 19,466     $ 147,334  
Income before taxes
  $ 44,149     $ 22,619     $ 11,373     $ 77,566     $ 19,329     $ 175,036  
                                                 
13-Weeks Ended September 25, 2010
                                               
                                                 
Net sales
  $ 90,329     $ 53,656     $ 46,086     $ 441,891     $ 60,402     $ 692,364  
Operating income
  $ 48,230     $ 19,928     $ 15,618     $ 66,588     $ 16,273     $ 166,637  
Income before taxes
  $ 53,319     $ 23,076     $ 17,991     $ 97,770     $ 18,760     $ 210,916  
                                                 
39-Weeks Ended September 24, 2011
                                               
                                                 
Net sales
  $ 242,178     $ 203,411     $ 178,479     $ 1,011,405     $ 213,452     $ 1,848,925  
Operating income
  $ 101,805     $ 61,293     $ 48,360     $ 83,087     $ 59,133     $ 353,678  
Income before taxes
  $ 107,258     $ 65,686     $ 51,896     $ 112,449     $ 61,745     $ 399,034  
                                                 
39-Weeks Ended September 25, 2010
                                               
                                                 
Net sales
  $ 229,562     $ 159,475     $ 161,710     $ 1,110,040     $ 191,409     $ 1,852,196  
Operating income
  $ 110,634     $ 58,851     $ 56,694     $ 172,117     $ 53,731     $ 452,027  
Income before taxes
  $ 107,563     $ 55,648     $ 53,235     $ 149,932     $ 54,470     $ 420,848
Net sales and property and equipment, net by geographic area are shown below as of and for the 39-week periods ended September 24, 2011 and September 25, 2010.  Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa:

   
Americas
   
APAC
   
EMEA
   
Total
 
September 24, 2011
                       
Net sales to external customers
  $ 990,155     $ 176,379     $ 682,391     $ 1,848,925  
Long lived assets
  $ 227,894     $ 145,741     $ 49,406     $ 423,041  
                                 
September 25, 2010
                               
Net sales to external customers
  $ 1,109,376     $ 154,594     $ 588,226     $ 1,852,196  
Long lived assets
  $ 232,546     $ 145,129     $ 50,181     $ 427,856
Warranty Reserves (Tables)
9 Months Ended
Sep. 24, 2011
Changes in Aggregate Warranty Reserve
Changes in Aggregate Warranty Reserve
The following reconciliation provides an illustration of changes in the aggregate warranty reserve.


   
13-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
   
2011
   
2010
 
             
Balance - beginning of the period
  $ 41,691     $ 41,445  
Accrual for products sold during the period
    12,737       23,183  
Expenditures
    (10,955 )     (20,605 )
Balance - end of the period
  $ 43,473     $ 44,023  
                 
   
39-Weeks Ended
 
   
Sept 24,
   
Sept 25,
 
    2011     2010  
                 
Balance - beginning of the period
  $ 49,885     $ 87,424  
Accrual for products sold during the period
    37,070       53,801  
Expenditures
    (43,482 )     (54,426 )
Change in accrual for products sold in prior periods
    -       (42,776 )
Balance - end of the period
  $ 43,473     $ 44,023
Fair Value Measurements (Tables)
9 Months Ended
Sep. 24, 2011
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis
Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)
Marketable Securities Classified as Available-For-Sale Securities
Amortized Cost and Estimated Fair Value of Marketable Securities, by Contractual Maturity
Assets and liabilities measured at estimated fair value on a recurring basis are summarized below:
 
   
Fair Value Measurements as of September 24, 2011
 
Description
 
Total
   
Level 1
   
Level 2
   
Level 3
 
Available for-sale securities
  $ 1,049,107     $ 1,049,107     $ -     $ -  
Failed Auction rate securities
    7,240       -       -       7,240  
Total
  $ 1,056,347     $ 1,049,107     $ -     $ 7,240  
                                 
   
Fair Value Measurements as of December 25, 2010
 
Description
 
Total
   
Level 1
   
Level 2
   
Level 3
 
Available for-sale securities
  $ 781,257     $ 781,257     $ -     $ -  
Failed Auction rate securities
    20,562       -       -       20,562  
Total
  $ 801,819     $ 781,257     $ -     $ 20,562
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
   
39-Weeks Ended
 
   
Sept 24, 2011
   
Sept 24, 2011
 
             
Beginning balance of auction rate securities
  $ 7,156     $ 20,562  
Total unrealized appreciation included in other comprehensive income
    734       3,228  
Sales out of Level 3
    (650 )     (16,550 )
Ending balance of auction rate securities
  $ 7,240     $ 7,240
The following is a summary of the company’s marketable securities classified as available-for-sale securities at September 24, 2011:
 
 
   
Amortized Cost
   
Gross Unrealized
Gains
   
Gross
Unrealized
Losses
   
Other Than
Temporary 
Impairment
   
Estimated Fair
Value (Net
Carrying Amount)
 
Mortgage-backed securities
  $ 567,083     $ 17,362     $ -     $ -     $ 584,445  
Auction Rate Securities
    9,227       -       (1,987 )     -       7,240  
Obligations of states and political subdivisions
    303,735       2,353       (456 )     -       305,632  
U.S. corporate bonds
    113,174       898       (881 )     (1,274 )     111,917  
Other
    50,944       908       (4,739 )     -       47,113  
Total
  $ 1,044,163     $ 21,521     $ (8,063 )   $ (1,274 )   $ 1,056,347  
 
The following is a summary of the company’s marketable securities classified as available-for-sale securities at December 25, 2010:
 
   
Amortized Cost
   
Gross Unrealized
Gains
   
Gross
Unrealized
Losses
   
Other Than
Temporary
Impairment
   
Estimated Fair
Value (Net
Carrying
Amount)
 
Mortgage-backed securities
  $ 527,249     $ 1,913     $ (1,520 )   $ -     $ 527,642  
Auction Rate Securities
    25,599       -       (5,037 )     -       20,562  
Obligations of states and political subdivisions
    160,618       347       (3,340 )     -       157,625  
U.S. corporate bonds
    54,348       637       (185 )     (1,274 )     53,526  
Other
    39,838       2,626       -       -       42,464  
Total
  $ 807,652     $ 5,523     $ (10,082 )   $ (1,274 )   $ 801,819
The amortized cost and estimated fair value of marketable securities at September 24, 2011, 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
  $ 72,369     $ 72,784  
Due after one year through five years
    295,972       297,430  
Due after five years through ten years
    252,456       254,868  
Due after ten years
    386,778       394,215  
Other (No contractual maturity dates)
    36,588       37,050  
    $ 1,044,163     $ 1,056,347
Components of Inventories (Detail) (USD $)
In Thousands
Sep. 24, 2011
Dec. 25, 2010
Raw Materials
$ 149,134 
$ 103,277 
Work-in-process
55,311 
43,507 
Finished goods
283,344 
278,513 
Inventory Reserves
(26,485)
(37,720)
Inventory, net of reserves
$ 461,304 
$ 387,577 
Share Repurchase Plan - Additional Information (Detail) (USD $)
In Thousands, except Share data
Feb. 13, 2010 - Sep. 24, 2011
Share repurchase program, authorization date
02/12/2010 
Share repurchase program, authorized amount
$ 300,000 
Share repurchase program, expiration date
12/31/2011 
Share repurchase program, shares repurchased
7,366,646 
Share repurchase program, shares repurchased value
223,149 
Share repurchase program, remaining authorized repurchase amount
76,851 
Share repurchase program, shares repurchased and retired
522,856 
Share repurchase program, shares repurchased and retired value
$ 16,723 
Computation of Basic and Diluted Net Income Per Share (Detail) (USD $)
In Thousands, except Per Share data
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
3 Months Ended
Sep. 25, 2010
9 Months Ended
Sep. 25, 2010
Numerator:
 
 
 
 
Numerator for basic and diluted net income per share - net income
$ 150,381 
$ 355,340 
$ 279,552 
$ 451,696 
Denominator:
 
 
 
 
Denominator for basic net income per share - weighted-average common shares
194,112 
194,028 
194,482 
197,785 
Effect of dilutive securities - employee stock options and stock appreciation rights
716 
781 
823 
1,106 
Denominator for diluted net income per share - adjusted weighted-average common shares
194,828 
194,809 
195,305 
198,891 
Basic net income per share
0.77 
1.83 
1.44 
2.28 
Diluted net income per share
$ 0.77 
$ 1.82 
$ 1.43 
$ 2.27 
Earnings Per Share - Additional Information (Detail)
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
3 Months Ended
Sep. 25, 2010
9 Months Ended
Sep. 25, 2010
Anti-dilutive options
5,880,506 
5,966,364 
6,851,107 
6,225,969 
Shares issued as a result of exercises of stock appreciation rights and stock options
84,328 
366,244 
97,369 
462,657 
Comprehensive Income (Detail) (USD $)
In Thousands
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
3 Months Ended
Sep. 25, 2010
9 Months Ended
Sep. 25, 2010
Net income
$ 150,381 
$ 355,340 
$ 279,552 
$ 451,696 
Translation adjustment
(53,367)
785 
26,020 
26,213 
Change in fair value of available-for-sale marketable securities, net of deferred taxes
(1,628)
17,897 
4,938 
20,140 
Comprehensive income
$ 95,386 
$ 374,022 
$ 310,510 
$ 498,049 
Segment Information - Additional Information (Detail)
Sep. 24, 2011
Number of operating segments
Net Sales, Operating Income, and Income Before Taxes for Reportable Segment (Detail) (USD $)
In Thousands
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
3 Months Ended
Sep. 25, 2010
9 Months Ended
Sep. 25, 2010
Net sales
$ 666,993 
$ 1,848,925 
$ 692,364 
$ 1,852,196 
Operating income
147,334 
353,678 
166,637 
452,027 
Income before taxes
175,036 
399,034 
210,916 
420,848 
Statement, Business Segments [Axis] => Outdoor
 
 
 
 
Net sales
94,720 
242,178 
90,329 
229,562 
Operating income
41,331 
101,805 
48,230 
110,634 
Income before taxes
44,149 
107,258 
53,319 
107,563 
Statement, Business Segments [Axis] => Fitness
 
 
 
 
Net sales
69,030 
203,411 
53,656 
159,475 
Operating income
20,452 
61,293 
19,928 
58,851 
Income before taxes
22,619 
65,686 
23,076 
55,648 
Statement, Business Segments [Axis] => Marine
 
 
 
 
Net sales
48,055 
178,479 
46,086 
161,710 
Operating income
9,870 
48,360 
15,618 
56,694 
Income before taxes
11,373 
51,896 
17,991 
53,235 
Statement, Business Segments [Axis] => Auto/Mobile
 
 
 
 
Net sales
384,150 
1,011,405 
441,891 
1,110,040 
Operating income
56,215 
83,087 
66,588 
172,117 
Income before taxes
77,566 
112,449 
97,770 
149,932 
Statement, Business Segments [Axis] => Aviation
 
 
 
 
Net sales
71,038 
213,452 
60,402 
191,409 
Operating income
19,466 
59,133 
16,273 
53,731 
Income before taxes
$ 19,329 
$ 61,745 
$ 18,760 
$ 54,470 
Net Sales and Property and Equipment, Net by Geographic Area (Detail) (USD $)
In Thousands
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
Dec. 25, 2010
3 Months Ended
Sep. 25, 2010
9 Months Ended
Sep. 25, 2010
Net sales to external customers
$ 666,993 
$ 1,848,925 
 
$ 692,364 
$ 1,852,196 
Long lived assets
423,041 
423,041 
427,805 
427,856 
427,856 
Region Reporting Information, by Region [Axis] => Americas
 
 
 
 
 
Net sales to external customers
 
990,155 
 
 
1,109,376 
Long lived assets
 
227,894 
 
 
232,546 
Region Reporting Information, by Region [Axis] => APAC
 
 
 
 
 
Net sales to external customers
 
176,379 
 
 
154,594 
Long lived assets
 
145,741 
 
 
145,129 
Region Reporting Information, by Region [Axis] => EMEA
 
 
 
 
 
Net sales to external customers
 
682,391 
 
 
588,226 
Long lived assets
 
$ 49,406 
 
 
$ 50,181 
Warranty Reserves - Additional Information (Detail) (USD $)
In Thousands
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 25, 2010
Standard warranty, term
from one to three years 
 
Effect of a refinement in the estimated warranty reserve
 
$ 42,776 
Range [Axis] => Minimum
 
 
Standard warranty (in years)
P1Y 
 
Range [Axis] => Maximum
 
 
Standard warranty (in years)
P3Y 
 
Changes in Aggregate Warranty Reserve (Detail) (USD $)
In Thousands
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
3 Months Ended
Sep. 25, 2010
9 Months Ended
Sep. 25, 2010
Beginning Balance
$ 41,691 
$ 49,885 
$ 41,445 
$ 87,424 
Accrual for products sold during the period
12,737 
37,070 
23,183 
53,801 
Expenditures
(10,955)
(43,482)
(20,605)
(54,426)
Change in accrual for products sold in prior periods
 
 
 
(42,776)
Ending Balance
$ 43,473 
$ 43,473 
$ 44,023 
$ 44,023 
Commitments - Additional Information (Detail) (USD $)
In Thousands
9 Months Ended
Sep. 24, 2011
Commitments to make purchases, amount committed
$ 100,458 
Commitments to make purchases, time period
P5Y 
Income Taxes - Additional Information (Detail) (USD $)
In Thousands
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
3 Months Ended
Sep. 25, 2010
9 Months Ended
Sep. 25, 2010
Earnings before taxes
$ 175,036 
$ 399,034 
$ 210,916 
$ 420,848 
Increase in income tax expense
93,291 
74,542 
 
 
Income tax provision
24,655 
43,694 
(68,636)
(30,848)
Decrease in earnings before taxes compared to same period in 2010
 
5% 
 
 
One-time adjustment includes release of uncertain tax position reserves related to settlement with IRS in US partially offset by settlement in the US and Taiwan surtax expense due to release of reserves
 
 
$ (114,605)
 
Effective tax rate
14% 
11% 
22% 
20% 
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis (Detail) (USD $)
In Thousands
Sep. 24, 2011
Dec. 25, 2010
Available for-sale securities
$ 1,056,347 
$ 801,819 
Fair Value by Measurement Frequency [Axis] => Fair Value, Measurements, Recurring
 
 
Available for-sale securities
1,049,107 
781,257 
Failed Auction rate securities
7,240 
20,562 
Total
1,056,347 
801,819 
Fair Value by Measurement Frequency [Axis] => Fair Value, Measurements, Recurring |
Fair Value, Hierarchy [Axis] => Level 1
 
 
Available for-sale securities
1,049,107 
781,257 
Total
1,049,107 
781,257 
Fair Value by Measurement Frequency [Axis] => Fair Value, Measurements, Recurring |
Fair Value, Hierarchy [Axis] => Level 3
 
 
Failed Auction rate securities
7,240 
20,562 
Total
$ 7,240 
$ 20,562 
Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (USD $)
In Thousands
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
Beginning Balance
$ 7,156 
$ 20,562 
Total unrealized gains included in other comprehensive income
734 
3,228 
Sales out of Level 3
(650)
(16,550)
Ending Balance
$ 7,240 
$ 7,240 
Marketable Securities Classified as Available-For-Sale Securities (Detail) (USD $)
In Thousands
Sep. 24, 2011
Dec. 25, 2010
Amortized Cost
$ 1,044,163 
$ 807,652 
Gross Unrealized Gains
21,521 
5,523 
Gross Unrealized Losses
(8,063)
(10,082)
Other Than Temporary Impairment
(1,274)
(1,274)
Estimated Fair Value (Net Carrying Amount)
1,056,347 
801,819 
Investment Type [Axis] => Mortgage-backed securities
 
 
Amortized Cost
567,083 
527,249 
Gross Unrealized Gains
17,362 
1,913 
Gross Unrealized Losses
 
(1,520)
Estimated Fair Value (Net Carrying Amount)
584,445 
527,642 
Investment Type [Axis] => Auction rate securities
 
 
Amortized Cost
9,227 
25,599 
Gross Unrealized Losses
(1,987)
(5,037)
Estimated Fair Value (Net Carrying Amount)
7,240 
20,562 
Investment Type [Axis] => Obligations of states and political subdivisions
 
 
Amortized Cost
303,735 
160,618 
Gross Unrealized Gains
2,353 
347 
Gross Unrealized Losses
(456)
(3,340)
Estimated Fair Value (Net Carrying Amount)
305,632 
157,625 
Investment Type [Axis] => U.S. corporate bonds
 
 
Amortized Cost
113,174 
54,348 
Gross Unrealized Gains
898 
637 
Gross Unrealized Losses
(881)
(185)
Other Than Temporary Impairment
(1,274)
(1,274)
Estimated Fair Value (Net Carrying Amount)
111,917 
53,526 
Investment Type [Axis] => Other
 
 
Amortized Cost
50,944 
39,838 
Gross Unrealized Gains
908 
2,626 
Gross Unrealized Losses
(4,739)
 
Estimated Fair Value (Net Carrying Amount)
$ 47,113 
$ 42,464 
Amortized Cost and Estimated Fair Value of Marketable Securities, by Contractual Maturity (Detail) (USD $)
In Thousands
Sep. 24, 2011
Dec. 25, 2010
Cost
 
 
Due in one year or less
$ 72,369 
 
Due after one year through five years
295,972 
 
Due after five years through ten years
252,456 
 
Due after ten years
386,778 
 
Other (No contractual maturity dates)
36,588 
 
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total
1,044,163 
 
Estimated Fair Value
 
 
Due in one year or less
72,784 
 
Due after one year through five years
297,430 
 
Due after five years through ten years
254,868 
 
Due after ten years
394,215 
 
Other (No contractual maturity dates)
37,050 
 
Estimated Fair Value (Net Carrying Amount)
$ 1,056,347 
$ 801,819 
Change in Accounting Estimate - Additional Information (Detail) (USD $)
In Millions, except Per Share data
3 Months Ended
Sep. 24, 2011
9 Months Ended
Sep. 24, 2011
Impact of change in estimate of per unit revenue and cost deferrals, increase in gross profit
$ 17.8 
$ 17.8 
Impact of change in estimate of per unit revenue and cost deferrals, increase in net income
15.3 
15.3 
Impact of change in estimate of per unit revenue and cost deferrals, increase in net income per share (basic and diluted)
$ 0.07 
$ 0.07 
Acquisitions - Additional Information (Detail) (USD $)
In Thousands
9 Months Ended
Sep. 24, 2011
Business acquisition, gross payment
$ 68,029 
Business acquisition, cash acquired
15,341 
Business acquisition, goodwill and intangible assets acquired
74,034 
Business Acquisition [Axis] => Navigon AG
 
Restructuring costs related to acquisition
$ 3,923