grmn-20110924.htm

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	0
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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block

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	Text Block
Net Sales and Property and Equipment, Net by Geographic Area	Text Block

Net Sales, Operating Income, and Income Before Taxes for Each Reportable Segment

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

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	Text Block

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	Text Block
Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)	Text Block
Marketable Securities Classified as Available-For-Sale Securities	Text Block
Amortized Cost and Estimated Fair Value of Marketable Securities, by Contractual Maturity	Text Block

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

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

Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

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

Marketable Securities Classified as Available-For-Sale Securities

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

Amortized Cost and Estimated Fair Value of Marketable Securities, by Contractual Maturity

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	5

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