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Document and Entity Information - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Feb. 12, 2016
Jun. 27, 2015
Document And Entity Information      
Entity Registrant Name GARMIN LTD    
Entity Central Index Key 0001121788    
Document Type 10-K    
Trading Symbol GRMN    
Document Period End Date Dec. 26, 2015    
Amendment Flag false    
Current Fiscal Year End Date --12-26    
Entity a Well-known Seasoned Issuer Yes    
Entity a Voluntary Filer No    
Entity's Reporting Status Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Public Float     $ 5,634,428,735
Entity Common Stock, Shares Outstanding   208,077,418  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2015    
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 26, 2015
Dec. 27, 2014
Current assets:    
Cash and cash equivalents $ 833,070 $ 1,196,268
Marketable securities (Note 3) 215,161 167,989
Accounts receivable, less allowance for doubtful accounts of $13,805 in 2015 and $18,330 in 2014 531,481 570,191
Inventories, net $ 500,554 420,475
Deferred income taxes (Note 6) 56,102
Deferred costs $ 49,176 51,336
Prepaid expenses and other current assets 81,645 48,615
Total current assets 2,211,087 2,510,976
Property and equipment, net    
Land and improvements 85,162 94,245
Building and improvements 351,778 324,710
Office furniture and equipment 206,025 188,847
Manufacturing equipment 131,055 128,441
Engineering equipment 113,690 102,692
Vehicles 20,939 20,661
Property plant and equipment, gross 908,649 859,596
Accumulated depreciation (462,560) (428,709)
Property plant and equipment, net 446,089 430,887
Restricted cash (Note 4) 259 308
Marketable securities (Note 3) 1,343,387 1,407,344
Noncurrent deferred income tax (Note 6) 116,518 67,712
Noncurrent deferred costs 38,769 36,140
Intangible assets, net 245,552 218,083
Other assets 97,730 21,853
Total assets 4,499,391 4,693,303
Current liabilities:    
Accounts payable 178,905 149,094
Salaries and benefits payable 70,601 62,764
Accrued warranty costs 30,449 27,609
Accrued sales program costs 67,613 58,934
Deferred revenue 164,982 203,598
Accrued royalty costs 30,310 51,889
Accrued advertising expense 33,547 26,334
Other accrued expenses $ 74,926 67,780
Deferred income taxes (Note 6) 17,673
Income taxes payable $ 21,674 182,260
Dividend payable 192,991 185,326
Total current liabilities 865,998 1,033,261
Deferred income taxes (Note 6) 56,210 39,497
Non-current income taxes 101,689 80,611
Non-current deferred revenue 128,731 135,130
Other liabilities 1,637 1,437
Stockholders' equity:    
Shares, CHF 10 par value, 208,077 shares authorized and issued; 189,722 shares outstanding at December 26, 2015; and 191,815 shares outstanding at December 27, 2014; (Notes 9, 10, and 11): 1,797,435 1,797,435
Additional paid-in capital 62,239 73,521
Treasury stock (414,637) (330,132)
Retained earnings 1,930,517 1,859,972
Accumulated other comprehensive income (30,428) 2,571
Total stockholders' equity 3,345,126 3,403,367
Total liabilities and stockholders' equity $ 4,499,391 $ 4,693,303
Consolidated Balance Sheets (Parenthetical)
$ in Thousands
Dec. 26, 2015
USD ($)
shares
Dec. 26, 2015
SFr / shares
Dec. 27, 2014
USD ($)
shares
Dec. 27, 2014
SFr / shares
Allowance for doubtful accounts | $ $ 13,805   $ 18,330  
Common shares, authorized 208,077   208,077  
Common shares, issued 208,077   208,077  
Common shares, outstanding 189,722   191,815  
CHF        
Common shares, par value (in dollars per share) | SFr / shares   SFr 10   SFr 10
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Income Statement [Abstract]      
Net sales [1] $ 2,820,270 $ 2,870,658 $ 2,631,851
Cost of goods sold 1,281,566 1,266,246 1,224,551
Gross profit 1,538,704 1,604,412 1,407,300
Advertising expense 167,166 146,633 112,905
Selling, general and administrative expenses 394,914 372,032 355,440
Research and development expense 427,043 395,121 364,923
Total operating expense 989,123 913,786 833,268
Operating income 549,581 690,626 574,032
Other income (expense):      
Interest income 29,653 35,584 35,271
Foreign currency (losses) gains (23,465) (4,299) 35,538
Other 11,418 1,834 8,717
Total other income (expense) 17,606 33,119 79,526
Income before income taxes 567,187 723,745 653,558
Income tax provision (benefit): (Note 6)      
Current 114,222 274,107 27,771
Deferred (3,262) 85,427 13,375
Income tax provision 110,960 359,534 41,146
Net income $ 456,227 $ 364,211 $ 612,412
Basic net income per share (Note 10) (in dollars per share) $ 2.39 $ 1.89 $ 3.13
Diluted net income per share (Note 10) (in dollars per share) $ 2.39 $ 1.88 $ 3.12
[1] The U.S. is the only country which constitutes greater than 10% of net sales to external customers.
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Statement of Comprehensive Income [Abstract]      
Net income $ 456,227 $ 364,211 $ 612,412
Foreign currency translation adjustment (34,981) (64,489) (43,609)
Change in fair value of available-for-sale marketable securities, net of deferred taxes 1,982 29,019 (56,904)
Comprehensive income $ 423,228 $ 328,741 $ 511,899
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Common Stock [Member]
Additional Paid-In Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income/(Loss) [Member]
Total
Balance at beginning at Dec. 29, 2012 $ 1,797,435 $ 72,462 $ (81,280) $ 1,604,625 $ 138,554 $ 3,531,796
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 612,412 612,412
Translation adjustment $ (43,609) (43,609)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects $ (56,904) (56,904)
Comprehensive income           511,899
Dividends declared $ (351,450) (351,450)
Tax benefit from issuance of equity awards $ 4,584 4,584
Issuance of treasury stock related to equity awards (20,375) $ 43,145 22,770
Stock compensation $ 22,592 22,592
Purchase of treasury stock related to equity awards $ (24,063) (24,063)
Purchase of treasury stock under share repurchase plan (58,422) (58,422)
Balance at end at Dec. 28, 2013 $ 1,797,435 $ 79,263 $ (120,620) $ 1,865,587 $ 38,041 3,659,706
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 364,211 364,211
Translation adjustment $ (64,489) (64,489)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects $ 29,019 29,019
Comprehensive income           328,741
Dividends declared $ (369,826) (369,826)
Tax benefit from issuance of equity awards $ (84) (84)
Issuance of treasury stock related to equity awards (29,951) $ 50,704 20,753
Stock compensation $ 24,293   24,293
Purchase of treasury stock related to equity awards (18,638) (18,638)
Purchase of treasury stock under share repurchase plan (241,578) (241,578)
Balance at end at Dec. 27, 2014 $ 1,797,435 $ 73,521 $ (330,132) $ 1,859,972 $ 2,571 3,403,367
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 456,227 456,227
Translation adjustment $ (34,981) (34,981)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects $ 1,982 1,982
Comprehensive income           423,228
Dividends declared $ (100) $ (385,682) (385,782)
Tax benefit from issuance of equity awards (2,050) (2,050)
Issuance of treasury stock related to equity awards (35,422) $ 52,494 17,072
Stock compensation $ 26,290   26,290
Purchase of treasury stock related to equity awards (5,586) (5,586)
Purchase of treasury stock under share repurchase plan (131,413) (131,413)
Balance at end at Dec. 26, 2015 $ 1,797,435 $ 62,239 $ (414,637) $ 1,930,517 $ (30,428) $ 3,345,126
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Statement of Stockholders' Equity [Abstract]      
Adjustment related to unrealized gains (losses) on available-for-sale securities income tax effects $ 115 $ 201 $ 2,183
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Operating Activities:      
Net income $ 456,227 $ 364,211 $ 612,412
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 51,311 48,433 48,476
Amortization 27,049 28,582 30,328
Gain on sale of property and equipment (198) (306) (724)
Provision for doubtful accounts (2,521) 66 1,553
Provision for obsolete and slow-moving inventories 23,257 25,903 20,891
Unrealized foreign currency losses (gains) 37,931 573 (40,120)
Deferred income taxes 5,897 89,828 7,931
Stock compensation 26,290 24,293 22,592
Realized gains on marketable securities (55) (505) (5,877)
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable 22,473 (27,398) 38,589
Inventories (121,718) (76,491) (17,593)
Other current and non-current assets (107,360) 627 (22,013)
Accounts payable 36,079 8,981 18,043
Other current and non-current liabilities 20,742 16,467 (31,775)
Deferred revenue (43,338) (87,543) (16,150)
Deferred costs (585) 11,029 (2,204)
Income taxes payable (151,014) 95,961 (34,275)
Net cash provided by operating activities 280,467 522,711 630,084
Investing activities:      
Purchases of property and equipment (80,592) (73,339) (56,083)
Proceeds from sale of property and equipment 7,921 748 885
Purchase of intangible assets (3,889) (4,720) (1,122)
Purchase of marketable securities (915,921) (1,006,482) (909,151)
Redemption of marketable securities $ 919,141 1,096,676 833,491
Proceeds from repayment (advances) on loan receivable 137,379 (137,369)
Acquisitions, net of cash acquired $ (38,687) (18,871) (5,680)
Change in restricted cash 48 (59) 587
Net cash provided by (used in) investing activities (111,979) 131,332 (274,442)
Financing activities:      
Dividends (378,117) (360,075) (351,707)
Tax benefit from issuance of equity awards (2,049) (84) 4,584
Proceeds from issuance of treasury stock related to equity awards 17,073 20,753 22,770
Purchase of treasury stock related to equity awards (5,586) (18,638) (24,063)
Purchase of treasury stock under share repurchase plan (131,413) (241,578) (58,422)
Net cash used in financing activities (500,092) (599,622) (406,838)
Effect of exchange rate changes on cash and cash equivalents (31,594) (37,302) (835)
Net increase (decrease) in cash and cash equivalents (363,198) 17,119 (52,031)
Cash and cash equivalents at beginning of year 1,196,268 1,179,149 1,231,180
Cash and cash equivalents at end of year 833,070 1,196,268 1,179,149
Supplemental disclosures of cash flow information      
Cash paid during the year for income taxes 252,885 175,465 73,372
Cash received during the year from income tax refunds $ 3,793 $ 5,260 $ 3,584
Cash paid during the year for interest
Supplemental disclosure of non-cash investing and financing activities      
Change in marketable securities related to unrealized appreciation (depreciation) $ 1,867 $ 29,220 $ (59,087)
Fair value of assets acquired $ 38,687 22,735 11,486
Liabilities assumed (3,718) (4,955)
Less:cash acquired (146) (851)
Cash paid for acquisitions, net of cash acquired $ 38,687 $ 18,871 $ 5,680
Description of the Business
 12 Months Ended
Dec. 26, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of the Business

1. Description of the Business

 

Garmin Ltd. and subsidiaries (together, the “Company”) design, develop, manufacture, market, and distribute a diverse family of hand-held, wrist-based, portable and fixed-mount Global Positioning System (GPS)-enabled products and other navigation, communications, information and sensor-based products. Garmin Corporation (GC) is primarily responsible for the manufacturing and distribution of the Company’s products to the Company’s subsidiaries and, to a lesser extent, new product development and sales and marketing of the Company’s products in Asia and the Far East. Garmin International, Inc. (GII) is primarily responsible for sales and marketing of the Company’s products in the Americas region and for most of the Company’s research and new product development. GII also manufactures most of the Company’s products in the aviation segment. Garmin (Europe) Ltd. (GEL) is responsible for sales and marketing of the Company’s products in Europe, the Middle East and Africa (EMEA). Many of GEL’s sales are to other Company-owned distributors in the EMEA region.
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 26, 2015
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

 

Basis of Presentation and Principles of Consolidation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The accompanying consolidated financial statements reflect the accounts of Garmin Ltd. and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated.

 

Fiscal Year

 

The Company has adopted a 52–53-week period ending on the last Saturday of the calendar year. Due to the fact that there are not exactly 52 weeks in a calendar year and there is slightly more than one additional day per year (not including the effects of leap year) in each calendar year as compared to a 52-week fiscal year, the Company will have a fiscal year comprising 53 weeks in certain fiscal years, as determined by when the last Saturday of the calendar year occurs.

 

In those resulting fiscal years that have 53 weeks, the Company will record an extra week of sales, costs, and related financial activity. Therefore, the financial results of those fiscal years, and the associated 14-week fourth quarter, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the associated quarters having only 13 weeks. Fiscal years 2015, 2014 and 2013 included 52 weeks.

 

Use of Estimates

 

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

 

Foreign Currency

 

Many Garmin Ltd. subsidiaries utilize currencies other than the United States Dollar (USD) as their functional currency. As required by the Foreign Currency Matters topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the financial statements of these subsidiaries for all periods presented have been translated into USD, the functional currency of Garmin Ltd., and the reporting currency herein, for purposes of consolidation at rates prevailing during the year for sales, costs, and expenses and at end-of-year rates for all assets and liabilities. The effect of this translation is recorded in a separate component of stockholders’ equity. Cumulative translation adjustments of ($14,108) and $20,874 as of December 26, 2015 and December 27, 2014, respectively, have been included in accumulated other comprehensive income in the accompanying consolidated balance sheets.

  

Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. The movements of the Taiwan Dollar and Euro/British Pound Sterling have offsetting impacts when the currencies move congruently against the U.S. Dollar due to the use of the Taiwan Dollar for manufacturing costs and cash held in non-functional currency while the Euro and British Pound Sterling transactions relate primarily to revenue. All differences are recorded in results of operations and amounted to exchange (losses) gains of ($23,465), ($4,299), and $35,538, for the years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively. The loss in fiscal 2015 was due primarily to the USD strengthening against the Euro partially offset by the USD strengthening against the Taiwan Dollar. The loss in fiscal 2014 was due primarily to the USD strengthening against the Euro and the British Pound Sterling which was largely offset by the USD strengthening against the Taiwan Dollar. The gain in fiscal 2013 was due primarily to the strengthening of the USD against the Taiwan Dollar and the USD weakening against the Euro and the British Pound Sterling.

 

Earnings Per Share

 

Basic earnings per share amounts are computed based on the weighted-average number of common shares outstanding. For purposes of diluted earnings per share, the number of shares that would be issued from the exercise of dilutive stock options has been reduced by the number of shares which could have been purchased from the proceeds of the exercise at the average market price of the Company’s stock during the period the options were outstanding. See Note 10.

 

Cash and Cash Equivalents

 

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, operating accounts, money market funds, and securities with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents approximates fair value, given the short maturity of those instruments.

 

Trade Accounts Receivable

 

The Company sells its products to retailers, wholesalers, and other customers and extends credit based on its evaluation of the customer’s financial condition.  Potential losses on receivables are dependent on each individual customer’s financial condition. The Company carries its trade accounts receivable at net realizable value. Typically, its accounts receivable are collected within 80 days and do not bear interest. The Company monitors its exposure to losses on receivables and maintains allowances for potential losses or adjustments. The Company determines these allowances by (1) evaluating the aging of its receivables and (2) reviewing its high-risk customers. Past due receivable balances are written off when its internal collection efforts have been unsuccessful in collecting the amount due. The Company maintains trade credit insurance to provide security against large losses.

 

Concentration of Credit Risk

 

The Company grants credit to certain customers who meet the Company’s pre-established credit requirements. Generally, the Company does not require security when trade credit is granted to customers. Credit losses are provided for in the Company’s consolidated financial statements and typically have been within management’s expectations. Certain customers are allowed extended terms consistent with normal industry practice. Most of these extended terms can be classified as either relating to seasonal sales variations or to the timing of new product releases by the Company.

  

The Company’s top ten customers have contributed between 22% and 24% of net sales since 2013. None of the Company’s customers accounted for more than 10% of consolidated net sales in the years ended December 26, 2015, December 27, 2014, and December 28, 2013.

 

Loan Receivable

 

On March 14, 2013, the Company entered into a Memorandum of Agreement (the “Agreement”) with Bombardier, Inc. (“Bombardier”).  The Company is the supplier of the avionics system for the Lear 70 and Lear 75 aircraft for Learjet, Inc., which is a subsidiary of Bombardier (the “Program”).  In order to assist Bombardier in connection with delayed cash flows from the Program partially related to the certification of avionics for the Program exceeding the planned delivery date, the Company agreed to provide Bombardier a short term, interest free, loan of $173,708 in cash in seven installments beginning on March 22, 2013 and ending on September 20, 2013 pursuant to the terms and conditions of the Agreement.  Bombardier repaid the loan in five installments beginning in November 2013 and ending in April 2014 pursuant to the terms and conditions of the Agreement and subsequent amendment signed December 6, 2013. 

 

Inventories

 

Inventories are stated at the lower of cost or market with cost being determined on a first-in, first-out (FIFO) basis. Garmin writes down its inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventories consisted of the following:

 

    December 26, 2015     December 27, 2014  
             
Raw Materials   $ 203,173     $ 161,444  
Work-in-process     69,690       53,824  
Finished goods     273,762       244,282  
Inventory Reserves     (46,071 )     (39,075 )
Inventory, net of reserves   $ 500,554     $ 420,475  

 

Property and Equipment

 

Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives:

 

Buildings and improvements   39-50
Office furniture and equipment   3-5
Manufacturing and engineering equipment   5
Vehicles   5

  

Long-Lived Assets

 

As required by the Property, Plant and Equipment topic of the FASB ASC, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value.

 

The Intangibles – Goodwill and Other topic of the FASB ASC requires that goodwill and intangible assets with indefinite useful lives should not be amortized but rather be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that they may be impaired. The Company did not recognize any goodwill or intangible asset impairment charges in 2015, 2014, or 2013.  The accounting guidance also requires that intangible assets with finite lives be amortized over their estimated useful lives and reviewed for impairment. The Company is currently amortizing its acquired intangible assets with finite lives over periods ranging from 3 to 10 years.

 

Dividends

  

Under Swiss corporate law, dividends must be approved by shareholders at the general meeting of the Company’s shareholders.

 

On June 5, 2015, the shareholders approved a dividend of $2.04 per share (of which, $1.02 was paid in the Company's 2015 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

 

Dividend Date   Record Date   $s per share  
June 30, 2015   June 16, 2015   $ 0.51  
September 30, 2015   September 15, 2015   $ 0.51  
December 31, 2015   December 15, 2015   $ 0.51  
March 31, 2016   March 15, 2016   $ 0.51  

 

The Company paid dividends in 2015 in the amount of $378,117. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings.

 

On June 6, 2014, the shareholders approved a dividend of $1.92 per share (of which, $0.96 was paid in the Company's 2014 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

 

Dividend Date   Record Date   $s per share  
June 30, 2014   June 17, 2014   $ 0.48  
September 30, 2014   September 15, 2014   $ 0.48  
December 31, 2014   December 15, 2014   $ 0.48  
March 31, 2015   March 16, 2015   $ 0.48  

 

The Company paid dividends in 2014 in the amount of $360,075. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings.

 

On June 7, 2013, the shareholders approved a dividend of $1.80 per share (of which, $0.90 was paid in the Company's 2013 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

 

Dividend Date   Record Date   $s per share  
June 28, 2013   June 18, 2013   $ 0.45  
September 30, 2013   September 16, 2013   $ 0.45  
December 31, 2013   December 16, 2013   $ 0.45  
March 31, 2014   March 17, 2014   $ 0.45  

 

The Company paid dividends in 2013 in the amount of $351,707. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings. 

 

Approximately $304,674 and $290,955 of retained earnings are indefinitely restricted from distribution to stockholders pursuant to the laws of Taiwan at December 26, 2015 and December 27, 2014, respectively.

 

Intangible Assets

 

At December 26, 2015 and December 27, 2014, the Company had patents, customer related intangibles and other identifiable finite-lived intangible assets recorded at a cost of $216,465 and $191,034, respectively. Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis over three to ten years, which represents the expected pattern and duration of use of and benefit received from the respective assets. Accumulated amortization was $158,704 and $151,589 at December 26, 2015 and December 27, 2014, respectively. Amortization expense on these intangible assets was $7,115, $8,362 and $17,847, for the years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively. In the next five years, the amortization expense is estimated to be $19,780, $7,506, $6,734, $4,787 and $3,610, respectively.

 

The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $187,791 at December 26, 2015 and $178,638 at December 27, 2014.

  

   

December 26,

2015

    

December 27,

2014

  
Goodwill balance at beginning of year   $ 178,638     $ 179,290  
Acquisitions     11,908       2,517  
 Finalization of purchase price allocations and effect of foreign currency translation     (2,755 )     (3,169 )
Goodwill balance at end of year   $ 187,791     $ 178,638  

  

Marketable Securities

 

Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date.

 

All of the Company’s marketable securities were considered available-for-sale at December 26, 2015. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of tax, reported in other comprehensive gain (loss). At December 26, 2015 and December 27, 2014, cumulative unrealized gains and losses, net of tax of ($16,321) and ($18,303), respectively, were reported in accumulated other comprehensive income, net of related taxes.

 

Investments are reviewed periodically to determine if they have suffered an impairment of value that is considered other than temporary. If investments are determined to be impaired, a loss is recognized at the date of determination.

 

Testing for impairment of investments requires significant management judgment. The identification of potentially impaired investments, the determination of their fair value and the assessment of whether any decline in value is other than temporary are the key judgment elements. The discovery of new information and the passage of time can significantly change these judgments. Revisions of impairment judgments are made when new information becomes known, and any resulting impairment adjustments are made at that time. The economic environment and volatility of securities markets increase the difficulty of determining fair value and assessing investment impairment.

  

The amortized cost of debt securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization is included in interest income from investments. Realized gains and losses, and credit declines in value judged to be other-than-temporary are included in other income. The cost of securities sold is based on the specific identification method.

 

Investments are discussed in detail in Note 3 of the Notes to Consolidated Financial Statements.

 

Income Taxes

 

The Company accounts for income taxes using the liability method in accordance with the FASB ASC 740 topic Income Taxes. The liability method provides that deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes as measured based on the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

 

The Company adopted the applicable guidance included in the FASB ASC 740 topic Income Taxes related to accounting for uncertainty in income taxes on December 31, 2006, the beginning of fiscal year 2007.  We recognize liabilities for tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves not to be required, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. If our estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result.

 

Income taxes are discussed in detail in Note 6 of the Notes to Consolidated Financial Statements.

 

Revenue Recognition

 

Garmin recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable.  For the large majority of Garmin’s sales, these criteria are met once product has shipped and title and risk of loss have transferred to the customer.  The Company recognizes revenue from the sale of hardware products and software bundled with hardware that is essential to the functionality of the hardware in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for standalone sales of software products and sales of software bundled with hardware not essential to the functionality of the hardware.  The Company generally does not offer specified or unspecified upgrade rights to its customers in connection with software sales.

 

For multiple-element arrangements that include tangible products that contain software essential to the tangible product’s functionality and undelivered software elements that relate to the tangible product’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP).  VSOE generally exists only when the Company sells the deliverable separately, on more than a limited basis, at prices within a relatively narrow range.  In addition to the products listed below, the Company has offered certain other products including mobile applications, in-dash navigation solutions, aviation subscriptions and extended warranties that involve multiple-element arrangements that are immaterial.

 

Garmin offers PNDs with lifetime map updates (LMUs) bundled in the original purchase price.  LMUs enable customers to download the latest map and point of interest information for the useful life of their PND.  In addition, Garmin offers PNDs with traffic service bundled in the original purchase price.  The Company has identified multiple deliverables contained in arrangements involving the sale of PNDs which include the LMU and/or traffic service.  The first deliverable is the hardware along with the software essential to the functionality of the hardware device delivered at the time of sale.  The remaining deliverables are the LMU and/or traffic service.  The Company has allocated revenue between these deliverables using the relative selling price method.  Amounts allocated to the delivered hardware and the related essential software are recognized at the time of sale provided the other conditions for revenue recognition have been met.  The revenue and associated cost of royalties allocated to the LMU and/or the traffic service are deferred and recognized on a straight-line basis over the estimated life of the products.

  

The Company has determined sufficient VSOE does not exist for LMU or traffic, and that third party evidence of selling price is not available.  During 2013, the Company estimated selling price of the undelivered element based on the relative selling price method using a weighted average of the stand-alone sales price, the price differential between bundled and unbundled PND units, and the royalty or subscription cost plus a normal margin. These estimates were reflective of how the Company established product pricing based in part on customer perception of value of the added LMU or traffic service capability to the PND.  In 2014, the Company determined that stand-alone and unbundled unit sales no longer occurred on more than a limited basis, and therefore began using the royalty cost plus a normal margin as the primary indicator to calculate relative selling prices of the undelivered elements.

 

Garmin records estimated reductions to revenue for customer sales programs, returns and incentive offerings including rebates, price protection (product discounts offered to retailers to assist in clearing older products from their inventories in advance of new product releases), promotions and other volume-based incentives.  The reductions to revenue are based on estimates and judgments using historical experience and expectation of future conditions.  Changes in these estimates could negatively affect Garmin’s operating results.   These incentives are reviewed periodically and, with the exceptions of price protection and certain other promotions, accrued for on a percentage of sales basis.   If market conditions were to decline, Garmin may take actions to increase customer incentive offerings, possibly resulting in an incremental reduction of revenue at the time the incentive is offered.

 

The Company records revenue net of sales tax, trade discounts and customer returns.  The reductions to revenue for expected future product returns are based on Garmin’s historical experience.

 

Deferred Revenues and Costs

 

At December 26, 2015 and December 27, 2014, the Company had deferred revenues totaling $293,713 and $338,728 , respectively, and related deferred costs totaling $87,945 and $87,476, respectively.

 

The deferred revenues and costs are recognized over their estimated economic lives of two to five years on a straight-line basis. In the next five years, the gross margin recognition of deferred revenue and cost for the currently deferred amounts is estimated to be $115,806, $60,971, $21,467, $5,356 and $2,168, respectively.

 

Shipping and Handling Costs

 

Shipping and handling costs are included in cost of goods sold in the accompanying consolidated financial statements.

 

Product Warranty

 

The Company provides for estimated warranty costs at the time of sale.  The Company’s standard warranty obligation to retail partners generally provides for a right of return of any product for a full refund in the event that such product is not merchantable, is damaged or defective.  The Company’s historical experience is that these types of warranty obligations are generally fulfilled within 5 months from time of sale.  The Company’s standard warranty obligation to its end-users provides for a period of one to two years from date of shipment while certain aviation products have a warranty period of two years from the date of installation.  The Company’s estimate of costs to service its warranty obligations are based on historical experience and expectations of future conditions and are recorded as a liability on the balance sheet.  To the extent Garmin experiences increased warranty claim activity or increased costs associated with servicing those claims, its warranty accrual will increase, resulting in decreased gross profit. The following reconciliation provides an illustration of changes in the aggregate warranty reserve: 

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
    2015     2014     2013  
                   
Balance - beginning of period   $ 27,609     $ 26,767     $ 37,301  
Change in accrual for products sold in prior periods (1)     -       -       (8,709 )
Accrual for products sold(2)     44,620       44,423       41,309  
Expenditures     (41,780 )     (43,581 )     (43,134 )
Balance - end of period   $ 30,449     $ 27,609     $ 26,767  

 

  (1) Our expected future cost is estimated based upon historical trends in the volume of product returns and the related warranty costs incurred. In 2013 we updated these assumptions and shortened the estimated time horizon in which we settle claims with our retail partners.

 

  (2) Minor changes in cost estimates related to pre-existing warranties are aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line.

 

Sales Programs

 

The Company provides certain monthly and quarterly incentives for its dealers and distributors based on various factors including dealer purchasing volume and growth. Additionally, from time to time, the Company provides rebates to end users on certain products. Estimated rebates and incentives payable to dealers and distributors are regularly reviewed and recorded as accrued expenses on a monthly basis. In addition, the Company provides dealers and distributors with product discounts to assist these customers in clearing older products from their inventories in advance of new product releases. Each discount is tied to a specific product and can be applied to all customers who have purchased the product or a special discount may be agreed to on an individual customer basis. These rebates, incentives, and discounts are recorded as reductions to net sales in the accompanying consolidated statements of income in the period the Company has sold the product.

 

Advertising Costs

 

The Company expenses advertising costs as incurred. Advertising expense amounted to approximately $167,166, $146,633, and $112,905, for the years ended December 26, 2015, December 27, 2014 and December 28, 2013, respectively.

 

Research and Development

 

A majority of the Company’s research and development is performed in the United States. Research and development costs, which are expensed as incurred, amounted to approximately $427,043, $395,121, and $364,923, for the years ended December 26, 2015, December 27, 2014 and December 28, 2013, respectively.

 

Customer Service and Technical Support

 

Customer service and technical support costs are included as selling, general and administrative expenses in the accompanying consolidated statements of income. Customer service and technical support costs include costs associated with performing order processing, answering customer inquiries by telephone and through Web sites, e-mail and other electronic means, and providing free technical support assistance to customers. The technical support is provided within one year after the associated revenue is recognized. The related cost of providing this free support is not material. 

 

Software Development Costs

 

The FASB ASC topic entitled Software requires companies to expense software development costs as they incur them until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. Capitalized software development costs are not significant as the time elapsed from working model to release is typically short. As required by the Research and Development topic of the FASB ASC, costs incurred to enhance our existing products or after the general release of the service using the product are expensed in the period they are incurred and included in research and development costs in the accompanying consolidated statements of income.

 

Accounting for Stock-Based Compensation

 

The Company currently sponsors four stock based employee compensation plans. The FASB ASC topic entitled Compensation – Stock Compensation requires the measurement and recognition of compensation expenses for all share-based payment awards made to employees and directors including employee stock options and restricted stock based on estimated fair values.

 

Accounting guidance requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as stock-based compensation expense on a straight-line basis over the requisite service period in the Company’s consolidated financial statements.

 

As stock-based compensation expenses recognized in the accompanying consolidated statements of income are based on awards ultimately expected to vest, they have been reduced for estimated forfeitures. Accounting guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience and management’s estimates.

 

Stock compensation plans are discussed in detail in Note 9 of the Notes to Consolidated Financial Statements.

 

Recently Issued Accounting Pronouncements

 

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes previous revenue recognition guidance. ASU 2014-09 requires that a company will recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. In applying the new guidance, a company will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new standard may be applied retrospectively to each prior period presented or in a modified retrospective approach in which the cumulative effect will be recognized as of the date of adoption.

 

In August 2015, the FASB issued Accounting Standards Update No. 2015-14, which defers the effective date of the new guidance by one year such that the new provisions will now be required for annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements.

  

In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.
Marketable Securities
 12 Months Ended
Dec. 26, 2015
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities

3. Marketable Securities

 

The FASB ASC topic entitled Fair Value Measurements and Disclosures 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 accounting guidance 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 Observable inputs for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability

 

  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. The valuation methods used by the Company for each significant class of investments are summarized below.

 

Mortgage-backed securities, corporate bonds and obligations of states and political subdivisions – Valued based on prices obtained from an independent pricing vendor using both market and income approaches. The primary inputs to the valuation include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, and credit spreads.

 

Common stocks – Valued at the closing price reported on the active market on which the individual securities are traded.

 

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. 

 

Available for sale securities measured at estimated fair value on a recurring basis are summarized below:

 

    Fair Value Measurements as
of December 26, 2015		  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 27,731     $ -     $ 27,731     $ -  
Agency securities     208,631       -       208,631       -  
Mortgage-backed securities     370,232       -       370,232       -  
Corporate securities     648,590       -       648,590       -  
Municipal securities     223,562       -       223,562       -  
Other     79,802       -       79,802       -  
Total   $ 1,558,548     $ -     $ 1,558,548     $ -  

 

 

    Fair Value Measurements as
of December 27, 2014 (1)		  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 30,144     $ -     $ 30,144     $ -  
Agency securities     428,320       -       428,320       -  
Mortgage-backed securities     324,307       -       324,307       -  
Corporate securities     594,402       -       594,402       -  
Municipal securities     125,410       -       125,410       -  
Other     72,750       -       72,750       -  
Total   $ 1,575,333     $ -     $ 1,575,333     $ -  

 

(1) Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement.

 

Marketable securities classified as available-for-sale securities are summarized below:

 

    Available-For-Sale Securities as
of December 26, 2015		  
    Amortized Cost     Gross Unrealized
Gains		     Gross
Unrealized
Losses- OTTI (1)		     Gross Unrealized
Losses- Other (2)		       Estimated Fair
Value (Net
Carrying
Amount)		  
U.S. Treasury securities   $ 27,772     $ 27     $ -     $ (68 )     $ 27,731  
Agency securities     211,248       105       (2,409 )     (313 )       208,631  
Mortgage-backed securities     376,801       191       (1,210 )     (5,550 )       370,232  
Corporate securities     656,447       179       (1,635 )     (6,401 )       648,590  
Municipal securities     223,991       636       (9 )     (1,056 )       223,562  
Other     79,853       4       (14 )     (41 )       79,802  
Total   $ 1,576,112     $ 1,142     $ (5,277 )   $ (13,429 )     $ 1,558,548  

  

    Available-For-Sale Securities as
of December 27, 2014 (3)		  
    Amortized Cost     Gross Unrealized
Gains		     Gross
Unrealized
Losses- OTTI (1)		     Gross Unrealized
Losses- Other (2)		     Estimated Fair
Value (Net
Carrying
Amount)		  
U.S. Treasury securities   $ 30,185     $ 26     $ (25 )   $ (42 )   $ 30,144  
Agency securities     436,817       169       (8,259 )     (407 )     428,320  
Mortgage-backed securities     329,048       580       (1,813 )     (3,508 )     324,307  
Corporate securities     600,674       689       (2,874 )     (4,087 )     594,402  
Municipal securities     125,183       497       (48 )     (222 )     125,410  
Other     72,857       59       (12 )     (154 )     72,750  
Total   $ 1,594,764     $ 2,020     $ (13,031 )   $ (8,420 )   $ 1,575,333  

 

  (1) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.
  (2) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.
  (3) Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement.

 

The Company’s investment policy requires investments to be rated A or better with the objective of minimizing the potential risk of principal loss. The fair value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral and in the credit performance of the underlying issuer, among other factors. The Company does not intend to sell the securities that have an unrealized loss shown in the table above and it is not more likely than not that the Company will be required to sell the investment before recovery of their amortized costs bases, which may be maturity.

 

The Company recognizes the credit component of other-than-temporary impairments of debt securities in "Other Income" and the noncredit component in "Other comprehensive income (loss)" for those securities that we do not intend to sell and for which it is not more likely than not that we will be required to sell before recovery. In 2013, the Company experienced unrealized, noncredit losses on its investment portfolio resulting in gross other-than-temporary impairment and other unrealized losses on marketable securities. During 2014 and 2015, the Company did not record any material impairment changes on its outstanding securities.

 

The amortized cost and estimated fair value of the securities at an unrealized loss position at December 26, 2015 were $1,299,856 and $1,281,150, respectively. Approximately 63.6% of securities in the Company’s portfolio were at an unrealized loss position at December 26, 2015. We have the ability to hold these securities until maturity or their value is recovered. We do not consider these unrealized losses to be other than temporary credit losses because there has been no deterioration in credit quality and no change in the cash flows of the underlying securities. The Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities; therefore, no impairment has been recorded in the accompanying condensed consolidated statement of income.

 

The cost of securities sold is based on the specific identification method.

 

The following table displays additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position: 

 

    As of December 26, 2015  
    Less than 12 Consecutive Months     12 Consecutive Months or Longer  
    Gross Unrealized
Losses		     Fair Value     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ (68 )   $ 22,184     $ -     $ -  
Agency securities     (691 )     117,803       (2,031 )     69,418  
Mortgage-backed securities     (4,571 )     263,735       (2,189 )     83,722  
Corporate securities     (6,719 )     521,731       (1,317 )     50,374  
Municipal securities     (1,035 )     116,033       (30 )     6,557  
Other     (29 )     14,666       (26 )     14,927  
Total   $ (13,113 )   $ 1,056,152     $ (5,593 )   $ 224,998  

  

    As of December 27, 2014(1)  
    Less than 12 Consecutive Months     12 Consecutive Months or Longer  
    Gross Unrealized
Losses		     Fair Value     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ (42 )   $ 18,822     $ (25 )   $ 6,634  
Agency securities     (397 )     64,862       (8,269 )     312,139  
Mortgage-backed securities     (2,169 )     187,309       (3,152 )     99,566  
Corporate securities     (4,058 )     373,925       (2,903 )     114,076  
Municipal securities     (222 )     29,533       (48 )     15,019  
Other     (154 )     29,977       (12 )     3,091  
Total   $ (7,042 )   $ 704,428     $ (14,409 )   $ 550,525  

  

  (1) Certain available- for-sale securities held as of December 27, 2014 have been reclassified amount major security types to confirm to the current year presentation. These reclassifications had no effect on fair value measurement.

 

The amortized cost and estimated fair value of marketable securities at December 26, 2015, 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   $ 215,143     $ 215,161  
Due after one year through five years     1,179,753       1,167,026  
Due after five years through ten years     112,256       108,923  
Due after ten years     68,960       67,438  
                 
    $ 1,576,112     $ 1,558,548  

 
Commitments and Contingencies
 12 Months Ended
Dec. 26, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

4. Commitments and Contingencies

 

Rental expense related to office, equipment, warehouse space and real estate amounted to $18,104, $19,559 and $18,721 for the years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively. The Company recognizes rental expense on a straight-line basis over the lease term.

 

Future minimum lease payments are as follows:

 

Year     Amount  
2016   $ 16,621  
2017     12,091  
2018     9,849  
2019     6,963  
2020     5,323  
Thereafter     14,182  
Total   $ 65,029  

 

Certain cash balances of GEL and GC are held as collateral by banks securing payment of local value-added tax requirements.  The total amount of restricted cash balances were $259 and $308 at December 26, 2015 and December 27, 2014, respectively.

 

The Company is party to certain commitments, which include purchases of raw materials, advertising expenditures, investments in certain low income housing tax credit projects, and other indirect purchases in connection with conducting our business.  The aggregate amount of purchase orders and other commitments open as of December 26, 2015 was approximately $278,327. We cannot determine the aggregate amount of such purchase orders that represent contractual obligations because purchase orders may represent authorizations to purchase rather than binding agreements. Our purchase orders are based on our current needs and are typically fulfilled within short periods of time.

 

In the normal course of business, the Company and its subsidiaries are parties to various legal claims, investigations, and complaints, including matters involving patent infringement and other intellectual property claims.  The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual or disclosure. The assessment regarding whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events.

 

Management of the Company currently does not believe there is at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies individually and in the aggregate, for the fiscal year ended December 26, 2015. The results of legal proceeding, investigations and claims, however, cannot be predicted with certainty. Although management considers the likelihood to be remote, an adverse resolution of one of more of such matters in excess of management’s expectations could have a material adverse effect on the Company’s results of operations in a particular quarter or fiscal year.

 

The Company settled or resolved certain matters during the fiscal year ended December 26, 2015 that did not individually or in the aggregate have a material impact on the Company’s financial condition or results of operations.
Employee Benefit Plans
 12 Months Ended
Dec. 26, 2015
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans

5. Employee Benefit Plans

 

GII and the Company’s other U.S.-based subsidiaries sponsor a defined contribution employee retirement plan under which their employees may contribute up to 50% of their annual compensation subject to Internal Revenue Code maximum limitations and to which the subsidiaries contribute a specified percentage of each participant’s annual compensation up to certain limits as defined in the retirement plan. Additionally, GEL has a defined contribution plan under which its employees may contribute up to 7.5% of their annual compensation. In both the plans described above, the subsidiaries contribute an amount determined annually at the discretion of the Board of Directors. During the years ended December 26, 2015, December 27, 2014 and December 28, 2013, expense related to these and other defined contribution plans of $37,489, $29,267 and $26,839, respectively, was charged to operations.

 

Certain of the Company’s foreign subsidiaries participate in local defined benefit pension plans. Contributions are calculated by formulas that consider final pensionable salaries. Neither obligations nor contributions for the years ended December 26, 2015, December 27, 2014 and December 28, 2013, were significant.
Income Taxes
 12 Months Ended
Dec. 26, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

6. Income Taxes

 

The Company’s income tax provision (benefit) consists of the following:

 

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
      2015       2014       2013  
Federal:                        
Current   $ 49,138     $ (18,665 )   $ (11,907 )
Deferred     4,216       58,164       1,913  
      53,354       39,499       (9,994 )
State:                        
Current     9,354       5,575       2,584  
Deferred     (5,858 )     4,368       (408 )
      3,496       9,943       2,176  
Foreign:                        
Current     55,730       287,197       37,094  
Deferred     (1,620 )     22,895       11,870  
      54,110       310,092       48,964  
Total   $ 110,960     $ 359,534     $ 41,146  

 

The income tax provision differs from the amount computed by applying the U.S. statutory federal income tax rate to income before taxes. The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows:

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
    2015     2014     2013  
Federal income tax expense at U.S. statutory rate   $ 198,516     $ 253,260     $ 229,420  
State income tax expense, net of federal tax effect     1,931       6,463       1,414  
Foreign tax rate differential     (100,010 )     (154,338 )     (121,279 )
Taiwan tax holiday benefit     (3,488 )     (3,147 )     (4,944 )
Other foreign taxes less incentives and credits     (8,592 )     5,947       (2,032 )
Withholding Tax     16,969       21,039       7,073  
Intercompany Restructuring     0       307,635       -  
Net change in uncertain tax positions     21,246       (67,231 )     (50,700 )
U.S. federal domestic production activities deduction     (4,589 )     (3,606 )     (3,550 )
U.S. federal research and development credit     (8,573 )     (8,373 )     (14,876 )
Other, net     (2,450 )     1,885       620  
Income tax expense   $ 110,960     $ 359,534     $ 41,146  

 

In the third quarter of 2014, the Company initiated an inter-company restructuring that realigned our corporate entity structure.  This change in corporate structure provides access to historical earnings that were previously permanently reinvested and allows us to efficiently repatriate future earnings.  As a result of the change in corporate structure, Garmin recorded tax expense of $307,635. Approximately $263,000 of this amount has been paid.  The remainder of the accrued tax is expected to be paid incrementally as the cash is repatriated.

 

The holding company statutory federal income tax rate in Switzerland, the Company's place of incorporation since the Redomestication effective June 27, 2010, is 7.83%.  If the Company reconciled taxes at the Swiss holding company federal statutory tax rate to the reported income tax for 2015 as presented above, the amounts related to tax at the statutory rate would be $154,000 lower, or $44,000, and the foreign tax rate differential would be adjusted by a similar amount to $52,000. For 2014, the amounts related to tax at the statutory rate would be approximately $197,000 lower, or $57,000, and the foreign tax rate differential would be adjusted by a similar amount to approximately $44,000. For 2013, the amount related to tax at the statutory rate would be approximately $178,000 lower, or $51,000, and the foreign tax differential would be reduced by a similar amount to approximately $64,000. All other amounts would remain substantially unchanged. 

 

The Company’s income before income taxes attributable to non-U.S. operations was $403,242, $546,790, and $502,423, for the years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively. The Taiwan tax holiday benefits included in the table above reflect $0.02, $0.02, and $0.03 per weighted-average common share outstanding for the years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively. The Company currently expects to benefit from these Taiwan tax holidays through 2017, at which time these tax benefits will likely expire.

 

Income taxes of $21,085, $20,606, and $307,990 at December 26, 2015, December 27, 2014, and December 28, 2013, respectively, have not been accrued by the Company for the unremitted earnings of several of its foreign subsidiaries because such earnings are intended to be reinvested in the subsidiaries indefinitely. These balances decreased in 2014 as a result of the inter-company restructuring which reduced the amount of earnings reinvested in the subsidiaries indefinitely.

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

 

    December 26,     December 27,  
    2015     2014  
Deferred tax assets:                
Product warranty accruals   $ 2,990     $ 3,560  
Allowance for doubtful accounts     10,323       9,111  
Inventory reserves     10,904       8,161  
Sales program allowances     1,783       1,081  
Reserve for sales returns     1,457       -  
Other accruals     10,799       11,058  
Stock option compensation     35,360       38,265  
Tax credit carryforwards     3,906       2,726  
Amortization     20,005       21,595  
Deferred revenue     32,809       43,644  
Net operating losses of subsidiaries     5,228       12,456  
Benefit related to uncertain tax positions     5,546       4,246  
Other     4,106       3,485  
Valuation allowance related to loss carryforward and tax credits     (2,781 )     (11,358 )
      142,435       148,030  
Deferred tax liabilities:                
Depreciation     18,029       16,192  
Reserve for sales returns     -       419  
Prepaid expenses     2,821       3,283  
Book basis in excess of tax basis for acquired entities     1,307       2,099  
Unrealized investment loss     3,198       6,384  
Withholding tax     54,865       50,561  
Other     1,907       2,448  
      82,127       81,386  
Net deferred tax assets   $ 60,308     $ 66,644  

 

The stock options outstanding related to the deferred tax asset of $35,360 will begin to expire over the next several years. Given the exercise price of the options expiring over the next 12 months compared to the current market price it is possible that these options will expire unexercised, resulting in a potential write-off of $6,000 that would reduce the deferred tax asset and reduce equity. 

 

In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet, which simplifies the presentation of deferred income taxes. The standard is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted, and the Company elected to prospectively adopt the accounting standard as of December 26, 2015. Prior periods in our Consolidated Financial Statements were not retrospectively adjusted.

 

At December 26, 2015, the Company had $3,906 of tax credit carryover compared to $2,726 at December 27, 2014. The surtax credit carryover from 2013 of $52,618 was adjusted and subsequently fully utilized in 2014 upon the execution of the inter-company restructuring. In turn, the entire valuation allowance regarding the surtax credit was released.

 

At December 26, 2015, the Company had a deferred tax asset of $5,228 related to the future tax benefit on net operating loss (NOL) carryforwards of $19,580.  Included in the NOL carryforwards is $7,092 that relates to Spain and expires in varying amounts between 2022 and 2027, $338 that relates to Switzerland and expires in 2022, $4,238 related to the Netherlands and expires in varying amounts between 2017 and 2022, $1,317 that relates to Finland and expires in 2025, $1,300 that relates to the United States and expires in 2035, and $5,295 that relates to various other jurisdictions and has no expiration date. The Company has recorded a valuation allowance for a portion of its deferred tax asset relating to various tax attributes that it does not believe are more likely than not to be realized. In the future, if the Company determines, based on existence of sufficient evidence, that it should realize more or less of its deferred tax assets, an adjustment to the valuation allowance will be made in the period such a determination is made.

 

The total amount of gross unrecognized tax benefits as of December 26, 2015 was $97,904.  A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for years ended December 26, 2015, December 27, 2014, and December 28, 2013 is as follows:

 

    December 26,     December 27,     December 28,  
    2015     2014     2013  
Balance at beginning of year   $ 77,495     $ 133,015     $ 182,870  
Additions based on tax positions related to prior years     89       2,889       2,668  
Reductions based on tax positions related to prior years     (1,671 )     (60,967 )     (8,195 )
Additions based on tax positions related to current period     29,019       39,115       30,262  
Reductions related to settlements with tax authorities     (364 )     (401 )     (416 )
Expiration of statute of limitations     (6,664 )     (36,156 )     (74,174 )
Balance at end of year   $ 97,904     $ 77,495     $ 133,015  

 

 Accounting guidance requires unrecognized tax benefits to be classified as non-current liabilities, except for the portion that is expected to be paid within one year of the balance sheet date.  The entire balance of net unrecognized benefits of $93,654, $74,205 and $125,918 are required to be classified as non-current at December 26, 2015, December 27, 2014, and December 28, 2013, respectively. The net unrecognized tax benefits, if recognized, would reduce the effective tax rate. None of the unrecognized tax benefits are due to uncertainty in the timing of deductibility.

 

Interest and penalties, if any, accrued on the unrecognized tax benefits are reflected in income tax expense.  At December 26, 2015, December 27, 2014, and December 28, 2013, the Company had accrued approximately $2,479, $2,159, and $5,111, respectively, for interest.  The interest component of the reserve increased (decreased) income tax expense for the years ending December 26, 2015, December 27, 2014, and December 28, 2013 by $320, ($2,953), and ($3,111), respectively. The Company had no amounts accrued for penalties as the nature of the unrecognized tax benefits, if recognized, would not warrant the imposition of penalties.

 

The Company files income tax returns in Switzerland and U.S. federal jurisdictions, as well as various state, local and foreign jurisdictions.  With few exceptions, the Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for years 2012 and prior.  The Company is no longer subject to Taiwan income tax examinations by tax authorities for years 2009 and prior.  The Company is no longer subject to United Kingdom tax examinations by tax authorities for years 2012 and prior. The Company is subject to Switzerland income tax examinations by tax authorities for years 2011 through 2015.

 

The Company recognized a reduction of income tax expense of $6,971, $83,006, and $74,217 in fiscal years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively, to reflect the expiration of statutes of limitations and releases due to audit settlement in various jurisdictions.

 

The Company believes that it is reasonably possible that approximately $5,000 to 10,000 of its reserves for certain unrecognized tax benefits will decrease within the next 12 months as the result of the expiration of statutes of limitations. This potential decrease in unrecognized tax benefits would impact the Company’s effective tax rate within the next 12 months
Fair Value of Financial Instruments
 12 Months Ended
Dec. 26, 2015
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

7. Fair Value of Financial Instruments

 

As required by the Financial Instruments topic of the FASB ASC, the following summarizes required information about the fair value of certain financial instruments for which it is currently practicable to estimate such value. None of the financial instruments are held or issued for trading purposes. The carrying amounts and fair values of the Company’s financial instruments are as follows:

 

    December 26, 2015     December 27, 2014  
    Carrying     Fair     Carrying     Fair  
    Amount     Value     Amount     Value  
                         
Cash and cash equivalents   $ 833,070     $ 833,070     $ 1,196,268     $ 1,196,268  
Restricted cash     259       259       308       308  
Marketable securities     1,558,548       1,558,548       1,575,333       1,575,333  

 

For certain of the Company’s financial instruments, including accounts receivable, loan receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities.
Segment Information
 12 Months Ended
Dec. 26, 2015
Segment Reporting [Abstract]  
Segment Information

8. Segment Information

 

The Company has identified five reportable segments for external reporting purposes – auto, aviation, marine, outdoor and fitness. There are two operating segments (auto PND and auto OEM) that are not reported separately but aggregated within the auto reportable segment. Each operating segment is individually reviewed and evaluated by the Chief Operating Decision Maker (CODM), who allocates resources and assesses performance of each segment individually.

 

All of the Company’s reportable segments offer products through the Company’s network of independent dealers and distributors as well as through OEMs. However, the nature of products and types of customers for the five reportable segments vary. The Company’s marine, auto, outdoor, and fitness segments include portable global positioning system (GPS) receivers and accessories sold primarily to retail outlets. These products are produced primarily by the Company’s subsidiary in Taiwan. The Company’s aviation products are portable and panel mount avionics for Visual Flight Rules and Instrument Flight Rules navigation and are sold primarily to aviation dealers and certain aircraft manufacturers.

 

The Company’s Chief Executive Officer has been identified as the CODM. In 2015, the measure of segment profit or loss used by the CODM to assess segment performance and allocate resources changed from income before income taxes to operating income. This change did not impact the measurement methods used to determine reported segment profit or loss in the years ended December 26, 2015 and December 27, 2014. Operating income represents net sales less costs of goods sold and operating expenses, including certain allocated general and administrative costs. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. There are no inter-segment sales or transfers.

 

The Company’s reportable segments share many common resources, infrastructures and assets in the normal course of business. Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, or capital expenditures by segment to the CODM.

 

Revenues, gross profit, and operating income for each of the Company’s reportable segments are presented below:

 

    Reportable Segments  
52-Weeks Ended December 26, 2015   Outdoor     Fitness     Marine     Auto     Aviation     Total  
                                     
Net sales   $ 425,150     $ 661,599     $ 286,778     $ 1,048,125     $ 398,618     $ 2,820,270  
Gross profit     259,889       366,139       158,493       459,469       294,714       1,538,704  
Operating income     140,200       134,574       28,611       134,939       111,257       549,581  
                                                 
52-Weeks Ended December 27, 2014                                                
                                                 
Net sales   $ 427,555     $ 568,440     $ 248,371     $ 1,240,377     $ 385,915     $ 2,870,658  
Gross profit     266,550       358,287       129,710       569,452       280,413       1,604,412  
Operating income     151,055       190,682       26,232       215,679       106,978       690,626  
                                                 
52-Weeks Ended December 28, 2013                                                
                                                 
Net sales   $ 410,989     $ 356,283     $ 222,928     $ 1,302,314     $ 339,337     $ 2,631,851  
Gross profit     262,529       222,925       115,091       565,083       241,672       1,407,300  
Operating income     159,197       120,250       18,493       188,517       87,575       574,032  

 

Net sales, long-lived assets (property and equipment), and net assets by geographic area are as shown below for the years ended December 26, 2015, December 27, 2014 and December 28, 2013. Note that APAC refers to the Asia Pacific region, and EMEA includes Europe, the Middle East and Africa.

 

    Americas     APAC     EMEA     Total  
December 26, 2015                                
Net sales to external customers (1)   $ 1,469,243     $ 337,888     $ 1,013,139     $ 2,820,270  
Property and equipment, net     294,234       111,701       40,154       446,089  
Net assets (2)     2,110,108       921,410       313,608       3,345,126  
                                 
December 27, 2014                                
Net sales to external customers (1)   $ 1,538,322     $ 278,092     $ 1,054,244     $ 2,870,658  
Property and equipment, net     269,858       111,464       49,565       430,887  
Net assets (2)     2,142,624       939,852       320,891       3,403,367  
                                 
December 28, 2013                                
Net sales to external customers (1)   $ 1,432,895     $ 243,056     $ 955,900     $ 2,631,851  
Property and equipment, net     239,528       121,012       54,308       414,848  
Net assets (2)     1,338,401       2,048,903       272,402       3,659,706  

 

(1) The U.S. is the only country which constitutes greater than 10% of net sales to external customers.

(2) Americas and APAC net assets are primarily held in the United States and Taiwan, respectively.
Stock Compensation Plans
 12 Months Ended
Dec. 26, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Compensation Plans

9. Stock Compensation Plans

 

Accounting for Stock-Based Compensation

 

The various Company stock compensation plans are summarized below. For all stock compensation plans, the company’s policy is to issue treasury shares for option/stock appreciation right (SAR) exercises, restricted stock unit (RSU) releases and employee stock purchase plan (ESPP) purchases.

 

2011 Non-employee Directors’ Equity Incentive Plan

 

In June 2011, the stockholders adopted an equity incentive plan for non-employee directors (the “2011 Directors Plan”) providing for grants of stock options, SARs, RSUs and/or performance shares, pursuant to which up to 122,592 shares were available for issuance. The term of each award cannot exceed ten years. Awards may vest over a minimum two-year period. In 2015, 2014, and 2013, 12,008, 7,120, and 11,484, restricted stock units were granted under this plan.

 

2005 Equity Incentive Plan

 

In June 2005, the shareholders adopted an equity incentive plan (the “2005 Plan”) providing for grants of incentive and nonqualified stock options, SARs, RSUs and/or performance shares to employees of the Company and its subsidiaries, pursuant to which up to 10,000,000 common shares were available for issuance. In 2013, the shareholders approved an additional 3,000,000 shares to the plan, making the total shares authorized under the plan 13,000,000. Option and SAR grants vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised. RSUs granted prior to December 10, 2012 vested or are vesting evenly over a period of five years, while RSUs granted on and after that date vest evenly over a period of three years. In addition to time-based vesting requirements, the vesting of certain RSU grants is also contingent upon the achievement of certain revenue and profitability goals. During 2015, 2014, and 2013, 1,171,905, 425,347, and 413,978 RSUs were granted under the 2005 Plan. No SARs were granted under the 2015 Plan in 2015. During 2014 and 2013, 47,095 and 52,673 SARs were granted under the 2005 plan.

  

2000 Equity Incentive Plan

 

In October 2000, the shareholders adopted an equity incentive plan (the “2000 Plan”) providing for grants of incentive and nonqualified stock options, SARs, RSUs and/or performance shares to employees of the Company and its subsidiaries, pursuant to which up to 7,000,000 common shares were available for issuance. The stock options and SARs vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised. The Company did not grant any stock awards from the 2000 Plan in 2015, 2014, or 2013.

 

2000 Non-employee Directors’ Option Plan

 

Also in October 2000, the stockholders adopted a stock option plan for non-employee directors (the “2000 Directors Plan”) providing for grants of options for up to 100,000 common shares. In 2009, the stockholders approved an additional 150,000 shares to the plan, making the total shares authorized under the plan 250,000. The term of each award is ten years. All awards vest evenly over a three-year period. Following the June 2011 approval of the 2011 Directors Plan, the Company will no longer issue options to purchase shares under this plan.

 

Stock-Based Compensation Activity

 

A summary of the Company’s stock-based compensation activity and related information under the 2011 Directors Plan, the 2005 Plan, the 2000 Plan and the 2000 Directors Plan for the years ended December 26, 2015, December 27, 2014 and December 28, 2013 is provided below:

 

    Stock Options and SARs  
    Weighted-Average        
    Exercise Price     Number of Shares  
          (In Thousands)  
             
Outstanding at December 29, 2012   $ 55.88       7,132  
Granted   $ 49.07       52  
Exercised   $ 26.85       (662 )
Forfeited/Expired   $ 66.09       (283 )
Outstanding at December 28, 2013   $ 58.44       6,239  
Granted   $ 52.44       47  
Exercised   $ 40.60       (1,430 )
Forfeited/Expired   $ 80.49       (125 )
Outstanding at December 27, 2014   $ 63.19       4,731  
Granted             0  
Exercised   $ 29.15       (474 )
Forfeited/Expired   $ 70.58       (196 )
Outstanding at December 26, 2015   $ 66.80       4,061  
Exercisable at December 26, 2015   $ 67.23       3,970  
Expected to vest after December 26, 2015   $ 47.92       91  

 

Stock Options and SARs as of December 26, 2015
Exercise   Awards     Remaining     Awards  
Price   Outstanding     Life (Years)     Exercisable  
    (In Thousands)           (In Thousands)  
                   
$18.00 -$40.00     60       4.65       49  
$40.01 - $60.00     1,998       1.86       1,918  
$60.01 - $80.00     977       1.44       977  
$80.01 - $100.00     3       1.96       3  
$100.01 - $120.00     1,021       1.93       1,021  
$120.01 - $140.00     2       1.76       2  
      4,061       1.81       3,970  

 

    Restricted Stock Units  
    Weighted-Average        
    Grant Date Fair Value     Number of Shares  
          (In Thousands)  
             
Outstanding at December 29, 2012   $ 30.06       1,460  
Granted   $ 45.05       425  
Released/Vested   $ 28.28       (579 )
Cancelled   $ 30.63       (81 )
Outstanding at December 28, 2013   $ 37.36       1,225  
Granted   $ 48.73       432  
Released/Vested   $ 36.00       (522 )
Cancelled   $ 37.02       (47 )
Outstanding at December 27, 2014   $ 42.55       1,088  
Granted   $ 37.07       1,184  
Released/Vested   $ 40.18       (562 )
Cancelled   $ 42.02       (53 )
Outstanding at December 26, 2015   $ 39.45       1,657  

 

The weighted-average remaining contract life for stock options and SARs outstanding and exercisable at December 26, 2015 is 1.81 and 1.67 years, respectively. The weighted-average remaining contract life of restricted stock units at December 26, 2015 was 1.54 years.

 

The fair value of awards is determined at the date of grant using a Black-Scholes option pricing model. The fair value of RSUs is calculated using the closing price of the Company’s common stock on the date of grant, reduced by the present value of estimated dividends over the vesting period, which are not accrued. The fair value of stock options and SARs was calculated with the following weighted-average assumptions for 2014 and 2013. No options or SARs were granted in 2015.

 

    2014     2013  
Weighted average grant date fair value of options granted   $ 12.42     $ 12.82  
Expected volatility     0.3342       0.3746  
Dividend yield     3.57 %     3.86 %
Expected life of options in years     6.8       6.8  
Risk-free interest rate     1.9 %     2.1 %

 

 

The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options and SARs which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility.

 

The total fair value of awards vested during 2015, 2014, and 2013 was $23,351, $19,127, and $20,956, respectively. The aggregate intrinsic values of options and SARs outstanding and exercisable at December 26, 2015 were $207 and $207, respectively. The aggregate intrinsic values of options and SARs exercised during 2015, 2014, and 2013 were $3,714, $18,885, and $13,114 respectively. The aggregate intrinsic value of RSUs outstanding at December 26, 2015 was $61,259. The aggregate intrinsic values of RSUs released during 2015, 2014, and 2013, were $20,787, $28,119, and $27,007 respectively. Aggregate intrinsic value of options and SARs represents the applicable number of awards multiplied by the positive difference between the exercise price and the Company’s closing stock price on the last trading day of the relevant fiscal period. Aggregate intrinsic value of RSUs represents the applicable number of awards multiplied by the Company’s closing stock price on the last trading day of the relevant fiscal period. The Company’s closing stock price was $36.98 on December 26, 2015. As of December 26, 2015, there was $52,590 of total unrecognized compensation cost related to unvested share-based compensation awards granted to employees under the stock compensation plans. That cost is expected to be recognized over the weighted average remaining vesting period.

 

Employee Stock Purchase Plan

 

The shareholders also adopted an ESPP. Up to 6,000,000 shares of common stock have been reserved for the ESPP with shareholders approving an additional 2,000,000 shares in June 2015. Shares will be offered to employees at a price equal to the lesser of 85% of the fair market value of the stock on the date of purchase or 85% of the fair market value on the first day of the ESPP period. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. During 2015, 2014, and 2013, 488,753, 349,982, and 395,220, shares, respectively were purchased under the plan for a total purchase price of $16,789, $14,634, and $12,181, respectively. During 2015, 2014, and 2013, the purchases were issued from treasury shares. At December 26, 2015, approximately 2,000,628 shares were available for future issuance.
Earnings Per Share
 12 Months Ended
Dec. 26, 2015
Earnings Per Share [Abstract]  
Earnings Per Share

10. Earnings Per Share

 

The following table sets forth the computation of basic and diluted net income per share:

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
    2015     2014     2013  
Numerator:                        
Numerator for basic and diluted net income per share - net income   $ 456,227     $ 364,211     $ 612,412  
                         
Denominator:                        
Denominator for basic net income per share – weighted-average common shares     190,631       193,106       195,411  
                         
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     476       1,059       928  
                         
Denominator for diluted net income per share – adjusted weighted-average common shares     191,107       194,165       196,339  
                         
Basic net income per share   $ 2.39     $ 1.89     $ 3.13  
                         
Diluted net income per share   $ 2.39     $ 1.88     $ 3.12  

 

There were 4,087, 2,240 and 5,475 outstanding stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) excluded from the computation of diluted earnings per share for the fiscal years of 2015, 2014 and 2013, respectively, because the effect would have been anti-dilutive.
Share Repurchase Plan
 12 Months Ended
Dec. 26, 2015
Equity [Abstract]  
Share Repurchase Plan

11. Share Repurchase Plan

 

On February 13, 2015, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $300,000 of its common shares through December 31, 2016.  Under the plan, the Company repurchased 3,148,901 shares using cash of $131,413 in fiscal 2015. 

 

On February 15, 2013, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $300,000 of its common shares through December 31, 2014.  Under the plan, the Company repurchased 1,376,500 shares using cash of $58,422 in fiscal 2013 and 4,369,360 shares using cash of $241,578 in fiscal 2014.
Accumulated Other Comprehensive Income
 12 Months Ended
Dec. 26, 2015
Stockholders' Equity Note [Abstract]  
Accumulated Other Comprehensive Income

12. Accumulated Other Comprehensive Income

 

The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the year ended December 26, 2015:

 

    Foreign Currency
Translation
Adjustment		     Gross unrealized
losses on
available-for-sale
securities-OTTI (1 )		     Net unrealized
gains(losses) on
available-for-sale
securities-
Other(2)		     Total  
Balance - beginning of period   $ 20,874     $ (13,031 )   $ (5,272 )   $ 2,571  
Other comprehensive income before reclassification     (34,981 )     7,754       (5,599 )     (32,826 )
Amounts reclassified from accumulated other comprehensive income     -       -       (173 )     (173 )
Net current-period other comprehensive income     (34,981 )     7,754       (5,772 )     (32,999 )
Balance - end of period   $ (14,107 )   $ (5,277 )   $ (11,044 )   $ (30,428 )

  

(1) Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than-temporarily impaired.

(2) Represents the change in unrealized gains (losses) on investment securities that have not been determined to be other-than-temporarily impaired.

 

The following provides required disclosure of reporting reclassifications out of AOCI for the year ended December 26, 2015:

 

Details about Accumulated Other Comprehensive
Income Components		   Amount Reclassified from
Accumulated Other
Comprehensive Income		     Affected Line Item in the Statement
Where Net Income is Presented
           
Unrealized gains (losses) on available-for-sale securities   $ 54     Other income (expense)
      119     Income tax provision
    $ 173     Net of tax
Selected Quarterly Information (Unaudited)
 12 Months Ended
Dec. 26, 2015
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Information (Unaudited)

13. Selected Quarterly Information (Unaudited)

 

    Fiscal Year Ended December 26, 2015  
    Quarter Ending  
    March 28     June 27     September 26     December 26  
                         
Net sales   $ 585,394     $ 773,830     $ 679,690     $ 781,358  
Gross profit     344,122       419,250       362,190       413,143  
Net income     66,793       137,753       119,299       132,383  
Basic net income per share   $ 0.35     $ 0.72     $ 0.63     $ 0.70  

 

    Fiscal Year Ended December 27, 2014  
    Quarter Ending  
    March 29     June 28     September 27     December 27  
                         
Net sales   $ 583,221     $ 777,848     $ 706,283     $ 803,306  
Gross profit     330,834       444,485       398,246       430,848  
Net income (loss)     118,818       181,983       (146,834 )     210,245  
Basic net income (loss) per share   $ 0.61     $ 0.94     $ (0.76 )   $ 1.10  

 

The above quarterly financial data is unaudited, but in the opinion of management, all adjustments necessary for a fair presentation of the selected data for these interim periods presented have been included. These results are not necessarily indicative of future quarterly results (the table may not foot due to rounding).
Subsequent Events
 12 Months Ended
Dec. 26, 2015
Subsequent Events [Abstract]  
Subsequent Events

14. Subsequent Events

 

On January 13, 2016, Garmin International, Inc. acquired PulsedLight, Inc., a privately-held designer of optical distance measurement technology based in Bend, Oregon. This acquisition was not material.

 

On February 11, 2016, Garmin Ltd. announced the signing of a purchase agreement to acquire DeLorme, a privately-held company that designs and markets consumer based satellite tracking devices with two-way communication and navigational capabilities based in Yarmouth, Maine. This acquisition is not expected to be material.

 

In 2016, the Company plans to move action camera related revenues and expenses from the Outdoor segment to the Auto segment allowing for alignment and synergies with other camera-based efforts occurring within the Auto segment. The Company will recast 2014 and 2015 segment results on a quarterly basis for comparability purposes.
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 26, 2015
Accounting Policies [Abstract]  
Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The accompanying consolidated financial statements reflect the accounts of Garmin Ltd. and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated.
Fiscal Year

Fiscal Year

 

The Company has adopted a 52–53-week period ending on the last Saturday of the calendar year. Due to the fact that there are not exactly 52 weeks in a calendar year and there is slightly more than one additional day per year (not including the effects of leap year) in each calendar year as compared to a 52-week fiscal year, the Company will have a fiscal year comprising 53 weeks in certain fiscal years, as determined by when the last Saturday of the calendar year occurs.

 

In those resulting fiscal years that have 53 weeks, the Company will record an extra week of sales, costs, and related financial activity. Therefore, the financial results of those fiscal years, and the associated 14-week fourth quarter, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the associated quarters having only 13 weeks. Fiscal years 2015, 2014 and 2013 included 52 weeks.
Use of Estimates

Use of Estimates

 

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Foreign Currency

Foreign Currency

 

Many Garmin Ltd. subsidiaries utilize currencies other than the United States Dollar (USD) as their functional currency. As required by the Foreign Currency Matters topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the financial statements of these subsidiaries for all periods presented have been translated into USD, the functional currency of Garmin Ltd., and the reporting currency herein, for purposes of consolidation at rates prevailing during the year for sales, costs, and expenses and at end-of-year rates for all assets and liabilities. The effect of this translation is recorded in a separate component of stockholders’ equity. Cumulative translation adjustments of ($14,108) and $20,874 as of December 26, 2015 and December 27, 2014, respectively, have been included in accumulated other comprehensive income in the accompanying consolidated balance sheets.

 

Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. The movements of the Taiwan Dollar and Euro/British Pound Sterling have offsetting impacts when the currencies move congruently against the U.S. Dollar due to the use of the Taiwan Dollar for manufacturing costs and cash held in non-functional currency while the Euro and British Pound Sterling transactions relate primarily to revenue. All differences are recorded in results of operations and amounted to exchange (losses) gains of ($23,465), ($4,299), and $35,538, for the years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively. The loss in fiscal 2015 was due primarily to the USD strengthening against the Euro partially offset by the USD strengthening against the Taiwan Dollar. The loss in fiscal 2014 was due primarily to the USD strengthening against the Euro and the British Pound Sterling which was largely offset by the USD strengthening against the Taiwan Dollar. The gain in fiscal 2013 was due primarily to the strengthening of the USD against the Taiwan Dollar and the USD weakening against the Euro and the British Pound Sterling.
Earnings Per Share

Earnings Per Share

 

Basic earnings per share amounts are computed based on the weighted-average number of common shares outstanding. For purposes of diluted earnings per share, the number of shares that would be issued from the exercise of dilutive stock options has been reduced by the number of shares which could have been purchased from the proceeds of the exercise at the average market price of the Company’s stock during the period the options were outstanding. See Note 10.
Cash and Cash Equivalents

Cash and Cash Equivalents

 

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, operating accounts, money market funds, and securities with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents approximates fair value, given the short maturity of those instruments.
Trade Accounts Receivable

Trade Accounts Receivable

 

The Company sells its products to retailers, wholesalers, and other customers and extends credit based on its evaluation of the customer’s financial condition.  Potential losses on receivables are dependent on each individual customer’s financial condition. The Company carries its trade accounts receivable at net realizable value. Typically, its accounts receivable are collected within 80 days and do not bear interest. The Company monitors its exposure to losses on receivables and maintains allowances for potential losses or adjustments. The Company determines these allowances by (1) evaluating the aging of its receivables and (2) reviewing its high-risk customers. Past due receivable balances are written off when its internal collection efforts have been unsuccessful in collecting the amount due. The Company maintains trade credit insurance to provide security against large losses.
Concentration of Credit Risk

Concentration of Credit Risk

 

The Company grants credit to certain customers who meet the Company’s pre-established credit requirements. Generally, the Company does not require security when trade credit is granted to customers. Credit losses are provided for in the Company’s consolidated financial statements and typically have been within management’s expectations. Certain customers are allowed extended terms consistent with normal industry practice. Most of these extended terms can be classified as either relating to seasonal sales variations or to the timing of new product releases by the Company.

 

The Company’s top ten customers have contributed between 22% and 24% of net sales since 2013. None of the Company’s customers accounted for more than 10% of consolidated net sales in the years ended December 26, 2015, December 27, 2014, and December 28, 2013.
Loan Receivable

Loan Receivable

 

On March 14, 2013, the Company entered into a Memorandum of Agreement (the “Agreement”) with Bombardier, Inc. (“Bombardier”).  The Company is the supplier of the avionics system for the Lear 70 and Lear 75 aircraft for Learjet, Inc., which is a subsidiary of Bombardier (the “Program”).  In order to assist Bombardier in connection with delayed cash flows from the Program partially related to the certification of avionics for the Program exceeding the planned delivery date, the Company agreed to provide Bombardier a short term, interest free, loan of $173,708 in cash in seven installments beginning on March 22, 2013 and ending on September 20, 2013 pursuant to the terms and conditions of the Agreement.  Bombardier repaid the loan in five installments beginning in November 2013 and ending in April 2014 pursuant to the terms and conditions of the Agreement and subsequent amendment signed December 6, 2013. 
Inventories

Inventories

 

Inventories are stated at the lower of cost or market with cost being determined on a first-in, first-out (FIFO) basis. Garmin writes down its inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventories consisted of the following:

 

    December 26, 2015     December 27, 2014  
             
Raw Materials   $ 203,173     $ 161,444  
Work-in-process     69,690       53,824  
Finished goods     273,762       244,282  
Inventory Reserves     (46,071 )     (39,075 )
Inventory, net of reserves   $ 500,554     $ 420,475  
Property and Equipment

Property and Equipment

 

Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives:

 

Buildings and improvements   39-50
Office furniture and equipment   3-5
Manufacturing and engineering equipment   5
Vehicles   5
Long-Lived Assets

Long-Lived Assets

 

As required by the Property, Plant and Equipment topic of the FASB ASC, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value.

 

The Intangibles – Goodwill and Other topic of the FASB ASC requires that goodwill and intangible assets with indefinite useful lives should not be amortized but rather be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that they may be impaired. The Company did not recognize any goodwill or intangible asset impairment charges in 2015, 2014, or 2013.  The accounting guidance also requires that intangible assets with finite lives be amortized over their estimated useful lives and reviewed for impairment. The Company is currently amortizing its acquired intangible assets with finite lives over periods ranging from 3 to 10 years.
Dividends

Dividends

 

Under Swiss corporate law, dividends must be approved by shareholders at the general meeting of the Company’s shareholders.

 

On June 5, 2015, the shareholders approved a dividend of $2.04 per share (of which, $1.02 was paid in the Company's 2015 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

 

Dividend Date   Record Date   $s per share  
June 30, 2015   June 16, 2015   $ 0.51  
September 30, 2015   September 15, 2015   $ 0.51  
December 31, 2015   December 15, 2015   $ 0.51  
March 31, 2016   March 15, 2016   $ 0.51  

 

The Company paid dividends in 2015 in the amount of $378,117. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings.

 

On June 6, 2014, the shareholders approved a dividend of $1.92 per share (of which, $0.96 was paid in the Company's 2014 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

 

Dividend Date   Record Date   $s per share  
June 30, 2014   June 17, 2014   $ 0.48  
September 30, 2014   September 15, 2014   $ 0.48  
December 31, 2014   December 15, 2014   $ 0.48  
March 31, 2015   March 16, 2015   $ 0.48  

 

The Company paid dividends in 2014 in the amount of $360,075. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings.

 

On June 7, 2013, the shareholders approved a dividend of $1.80 per share (of which, $0.90 was paid in the Company's 2013 fiscal year) payable in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

 

Dividend Date   Record Date   $s per share  
June 28, 2013   June 18, 2013   $ 0.45  
September 30, 2013   September 16, 2013   $ 0.45  
December 31, 2013   December 16, 2013   $ 0.45  
March 31, 2014   March 17, 2014   $ 0.45  

 

The Company paid dividends in 2013 in the amount of $351,707. Both the dividend paid and the remaining dividend payable were reported as a reduction of retained earnings.

 

Approximately $304,674 and $290,955 of retained earnings are indefinitely restricted from distribution to stockholders pursuant to the laws of Taiwan at December 26, 2015 and December 27, 2014, respectively.
Intangible Assets

Intangible Assets

 

At December 26, 2015 and December 27, 2014, the Company had patents, customer related intangibles and other identifiable finite-lived intangible assets recorded at a cost of $216,465 and $191,034, respectively. Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis over three to ten years, which represents the expected pattern and duration of use of and benefit received from the respective assets. Accumulated amortization was $158,704 and $151,589 at December 26, 2015 and December 27, 2014, respectively. Amortization expense on these intangible assets was $7,115, $8,362 and $17,847, for the years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively. In the next five years, the amortization expense is estimated to be $19,780, $7,506, $6,734, $4,787 and $3,610, respectively.

 

The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $187,791 at December 26, 2015 and $178,638 at December 27, 2014.

  

   

December 26,

2015

    

December 27,

2014

  
Goodwill balance at beginning of year   $ 178,638     $ 179,290  
Acquisitions     11,908       2,517  
 Finalization of purchase price allocations and effect of foreign currency translation     (2,755 )     (3,169 )
Goodwill balance at end of year   $ 187,791     $ 178,638  
Marketable Securities

Marketable Securities

 

Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date.

 

All of the Company’s marketable securities were considered available-for-sale at December 26, 2015. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of tax, reported in other comprehensive gain (loss). At December 26, 2015 and December 27, 2014, cumulative unrealized gains and losses, net of tax of ($16,321) and ($18,303), respectively, were reported in accumulated other comprehensive income, net of related taxes.

 

Investments are reviewed periodically to determine if they have suffered an impairment of value that is considered other than temporary. If investments are determined to be impaired, a loss is recognized at the date of determination.

 

Testing for impairment of investments requires significant management judgment. The identification of potentially impaired investments, the determination of their fair value and the assessment of whether any decline in value is other than temporary are the key judgment elements. The discovery of new information and the passage of time can significantly change these judgments. Revisions of impairment judgments are made when new information becomes known, and any resulting impairment adjustments are made at that time. The economic environment and volatility of securities markets increase the difficulty of determining fair value and assessing investment impairment.

 

The amortized cost of debt securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization is included in interest income from investments. Realized gains and losses, and credit declines in value judged to be other-than-temporary are included in other income. The cost of securities sold is based on the specific identification method.

 

Investments are discussed in detail in Note 3 of the Notes to Consolidated Financial Statements.
Income Taxes

Income Taxes

 

The Company accounts for income taxes using the liability method in accordance with the FASB ASC 740 topic Income Taxes. The liability method provides that deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes as measured based on the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

 

The Company adopted the applicable guidance included in the FASB ASC 740 topic Income Taxes related to accounting for uncertainty in income taxes on December 31, 2006, the beginning of fiscal year 2007.  We recognize liabilities for tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves not to be required, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. If our estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result.

 

Income taxes are discussed in detail in Note 6 of the Notes to Consolidated Financial Statements.
Revenue Recognition

Revenue Recognition

 

Garmin recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable.  For the large majority of Garmin’s sales, these criteria are met once product has shipped and title and risk of loss have transferred to the customer.  The Company recognizes revenue from the sale of hardware products and software bundled with hardware that is essential to the functionality of the hardware in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for standalone sales of software products and sales of software bundled with hardware not essential to the functionality of the hardware.  The Company generally does not offer specified or unspecified upgrade rights to its customers in connection with software sales.

 

For multiple-element arrangements that include tangible products that contain software essential to the tangible product’s functionality and undelivered software elements that relate to the tangible product’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the accounting principles establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP).  VSOE generally exists only when the Company sells the deliverable separately, on more than a limited basis, at prices within a relatively narrow range.  In addition to the products listed below, the Company has offered certain other products including mobile applications, in-dash navigation solutions, aviation subscriptions and extended warranties that involve multiple-element arrangements that are immaterial.

 

Garmin offers PNDs with lifetime map updates (LMUs) bundled in the original purchase price.  LMUs enable customers to download the latest map and point of interest information for the useful life of their PND.  In addition, Garmin offers PNDs with traffic service bundled in the original purchase price.  The Company has identified multiple deliverables contained in arrangements involving the sale of PNDs which include the LMU and/or traffic service.  The first deliverable is the hardware along with the software essential to the functionality of the hardware device delivered at the time of sale.  The remaining deliverables are the LMU and/or traffic service.  The Company has allocated revenue between these deliverables using the relative selling price method.  Amounts allocated to the delivered hardware and the related essential software are recognized at the time of sale provided the other conditions for revenue recognition have been met.  The revenue and associated cost of royalties allocated to the LMU and/or the traffic service are deferred and recognized on a straight-line basis over the estimated life of the products.

 

The Company has determined sufficient VSOE does not exist for LMU or traffic, and that third party evidence of selling price is not available.  During 2013, the Company estimated selling price of the undelivered element based on the relative selling price method using a weighted average of the stand-alone sales price, the price differential between bundled and unbundled PND units, and the royalty or subscription cost plus a normal margin. These estimates were reflective of how the Company established product pricing based in part on customer perception of value of the added LMU or traffic service capability to the PND.  In 2014, the Company determined that stand-alone and unbundled unit sales no longer occurred on more than a limited basis, and therefore began using the royalty cost plus a normal margin as the primary indicator to calculate relative selling prices of the undelivered elements.

 

Garmin records estimated reductions to revenue for customer sales programs, returns and incentive offerings including rebates, price protection (product discounts offered to retailers to assist in clearing older products from their inventories in advance of new product releases), promotions and other volume-based incentives.  The reductions to revenue are based on estimates and judgments using historical experience and expectation of future conditions.  Changes in these estimates could negatively affect Garmin’s operating results.   These incentives are reviewed periodically and, with the exceptions of price protection and certain other promotions, accrued for on a percentage of sales basis.   If market conditions were to decline, Garmin may take actions to increase customer incentive offerings, possibly resulting in an incremental reduction of revenue at the time the incentive is offered.

 

The Company records revenue net of sales tax, trade discounts and customer returns.  The reductions to revenue for expected future product returns are based on Garmin’s historical experience.
Deferred Revenues and Costs

Deferred Revenues and Costs

 

At December 26, 2015 and December 27, 2014, the Company had deferred revenues totaling $293,713 and $338,728 , respectively, and related deferred costs totaling $87,945 and $87,476, respectively.

 

The deferred revenues and costs are recognized over their estimated economic lives of two to five years on a straight-line basis. In the next five years, the gross margin recognition of deferred revenue and cost for the currently deferred amounts is estimated to be $115,806, $60,971, $21,467, $5,356 and $2,168, respectively.
Shipping and Handling Costs

Shipping and Handling Costs

 

Shipping and handling costs are included in cost of goods sold in the accompanying consolidated financial statements.
Product Warranty

Product Warranty

 

The Company provides for estimated warranty costs at the time of sale.  The Company’s standard warranty obligation to retail partners generally provides for a right of return of any product for a full refund in the event that such product is not merchantable, is damaged or defective.  The Company’s historical experience is that these types of warranty obligations are generally fulfilled within 5 months from time of sale.  The Company’s standard warranty obligation to its end-users provides for a period of one to two years from date of shipment while certain aviation products have a warranty period of two years from the date of installation.  The Company’s estimate of costs to service its warranty obligations are based on historical experience and expectations of future conditions and are recorded as a liability on the balance sheet.  To the extent Garmin experiences increased warranty claim activity or increased costs associated with servicing those claims, its warranty accrual will increase, resulting in decreased gross profit. The following reconciliation provides an illustration of changes in the aggregate warranty reserve:

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
    2015     2014     2013  
                   
Balance - beginning of period   $ 27,609     $ 26,767     $ 37,301  
Change in accrual for products sold in prior periods (1)     -       -       (8,709 )
Accrual for products sold(2)     44,620       44,423       41,309  
Expenditures     (41,780 )     (43,581 )     (43,134 )
Balance - end of period   $ 30,449     $ 27,609     $ 26,767  

 

  (1) Our expected future cost is estimated based upon historical trends in the volume of product returns and the related warranty costs incurred. In 2013 we updated these assumptions and shortened the estimated time horizon in which we settle claims with our retail partners.

 

  (2) Minor changes in cost estimates related to pre-existing warranties are aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line.
Sales Programs

Sales Programs

 

The Company provides certain monthly and quarterly incentives for its dealers and distributors based on various factors including dealer purchasing volume and growth. Additionally, from time to time, the Company provides rebates to end users on certain products. Estimated rebates and incentives payable to dealers and distributors are regularly reviewed and recorded as accrued expenses on a monthly basis. In addition, the Company provides dealers and distributors with product discounts to assist these customers in clearing older products from their inventories in advance of new product releases. Each discount is tied to a specific product and can be applied to all customers who have purchased the product or a special discount may be agreed to on an individual customer basis. These rebates, incentives, and discounts are recorded as reductions to net sales in the accompanying consolidated statements of income in the period the Company has sold the product.
Advertising Costs

Advertising Costs

 

The Company expenses advertising costs as incurred. Advertising expense amounted to approximately $167,166, $146,633, and $112,905, for the years ended December 26, 2015, December 27, 2014 and December 28, 2013, respectively.
Research and Development

Research and Development

 

A majority of the Company’s research and development is performed in the United States. Research and development costs, which are expensed as incurred, amounted to approximately $427,043, $395,121, and $364,923, for the years ended December 26, 2015, December 27, 2014 and December 28, 2013, respectively.
Customer Service and Technical Support

Customer Service and Technical Support

 

Customer service and technical support costs are included as selling, general and administrative expenses in the accompanying consolidated statements of income. Customer service and technical support costs include costs associated with performing order processing, answering customer inquiries by telephone and through Web sites, e-mail and other electronic means, and providing free technical support assistance to customers. The technical support is provided within one year after the associated revenue is recognized. The related cost of providing this free support is not material.
Software Development Costs

Software Development Costs

 

The FASB ASC topic entitled Software requires companies to expense software development costs as they incur them until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. Capitalized software development costs are not significant as the time elapsed from working model to release is typically short. As required by the Research and Development topic of the FASB ASC, costs incurred to enhance our existing products or after the general release of the service using the product are expensed in the period they are incurred and included in research and development costs in the accompanying consolidated statements of income.
Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation

 

The Company currently sponsors four stock based employee compensation plans. The FASB ASC topic entitled Compensation – Stock Compensation requires the measurement and recognition of compensation expenses for all share-based payment awards made to employees and directors including employee stock options and restricted stock based on estimated fair values.

 

Accounting guidance requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as stock-based compensation expense on a straight-line basis over the requisite service period in the Company’s consolidated financial statements.

 

As stock-based compensation expenses recognized in the accompanying consolidated statements of income are based on awards ultimately expected to vest, they have been reduced for estimated forfeitures. Accounting guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience and management’s estimates.

 

Stock compensation plans are discussed in detail in Note 9 of the Notes to Consolidated Financial Statements.
Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes previous revenue recognition guidance. ASU 2014-09 requires that a company will recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. In applying the new guidance, a company will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new standard may be applied retrospectively to each prior period presented or in a modified retrospective approach in which the cumulative effect will be recognized as of the date of adoption.

 

In August 2015, the FASB issued Accounting Standards Update No. 2015-14, which defers the effective date of the new guidance by one year such that the new provisions will now be required for annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements. 

 

In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 26, 2015
Accounting Policies [Abstract]  
Schedule of inventory

Inventories consisted of the following:

 

    December 26, 2015     December 27, 2014  
             
Raw Materials   $ 203,173     $ 161,444  
Work-in-process     69,690       53,824  
Finished goods     273,762       244,282  
Inventory Reserves     (46,071)     (39,075)  
Inventory, net of reserves   $ 500,554     $ 420,475  
Schedule of property and equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the following estimated useful lives:

 

Buildings and improvements   39-50
Office furniture and equipment   3-5
Manufacturing and engineering equipment   5
Vehicles   5
Schedule of dividends payable

The dates determined by the Board were as follows:

 

Dividend Date   Record Date   $s per share  
June 30, 2015   June 16, 2015   $ 0.51  
September 30, 2015   September 15, 2015   $ 0.51  
December 31, 2015   December 15, 2015   $ 0.51  
March 31, 2016   March 15, 2016   $ 0.51  

 

Dividend Date   Record Date   $s per share  
June 30, 2014   June 17, 2014   $ 0.48  
September 30, 2014   September 15, 2014   $ 0.48  
December 31, 2014   December 15, 2014   $ 0.48  
March 31, 2015   March 16, 2015   $ 0.48  

 

Dividend Date   Record Date   $s per share  
June 28, 2013   June 18, 2013   $ 0.45  
September 30, 2013   September 16, 2013   $ 0.45  
December 31, 2013   December 16, 2013   $ 0.45  
March 31, 2014   March 17, 2014   $ 0.45  

 
Schedule of goodwill

The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $187,791 at December 26, 2015 and $178,638 at December 27, 2014.

 

   

December 26,

2015

    

December 27,

2014

  
Goodwill balance at beginning of year   $ 178,638     $ 179,290  
Acquisitions   11,908       2,517  
Finalization of purchase price allocations and effect of foreign currency translation   (2,755)     (3,169)
Goodwill balance at end of year   $ 187,791     $ 178,638  
Schedule of product warranty

The following reconciliation provides an illustration of changes in the aggregate warranty reserve:

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
    2015     2014     2013  
                   
Balance - beginning of period   $ 27,609     $ 26,767     $ 37,301  
Change in accrual for products sold in prior periods (1)     -       -       (8,709)  
Accrual for products sold(2)     44,620       44,423       41,309  
Expenditures     (41,780)     (43,581)     (43,134)
Balance - end of period   $ 30,449     $ 27,609     $ 26,767  

 

  (1) Our expected future cost is estimated based upon historical trends in the volume of product returns and the related warranty costs incurred. In 2013 we updated these assumptions and shortened the estimated time horizon in which we settle claims with our retail partners.

 

  (2) Minor changes in cost estimates related to pre-existing warranties are aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line.
Marketable Securities (Tables)
 12 Months Ended
Dec. 26, 2015
Investments, Debt and Equity Securities [Abstract]  
Schedule of available for sale securities measured at estimated fair value on a recurring basis

Available for sale securities measured at estimated fair value on a recurring basis are summarized below:

 

    Fair Value Measurements as
of December 26, 2015		  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 27,731     $ -     $ 27,731     $ -  
Agency securities     208,631       -       208,631       -  
Mortgage-backed securities     370,232       -       370,232       -  
Corporate securities     648,590       -       648,590       -  
Municipal securities     223,562       -       223,562       -  
Other     79,802       -       79,802       -  
Total   $ 1,558,548     $ -     $ 1,558,548     $ -  

 

    Fair Value Measurements as
of December 27, 2014 (1)		  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 30,144     $ -     $ 30,144     $ -  
Agency securities     428,320       -       428,320       -  
Mortgage-backed securities     324,307       -       324,307       -  
Corporate securities     594,402       -       594,402       -  
Municipal securities     125,410       -       125,410       -  
Other     72,750       -       72,750       -  
Total   $ 1,575,333     $ -     $ 1,575,333     $ -  

 

(1) Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement.

 
Schedule of available for sale securities

Marketable securities classified as available-for-sale securities are summarized below:

 

    Available-For-Sale Securities as
of December 26, 2015		  
    Amortized Cost     Gross Unrealized
Gains		     Gross
Unrealized
Losses- OTTI (1)		     Gross Unrealized
Losses- Other (2)		       Estimated Fair
Value (Net
Carrying
Amount)		  
U.S. Treasury securities   $ 27,772     $ 27     $ -     $ (68)     $ 27,731  
Agency securities     211,248       105       (2,409)     (313)       208,631  
Mortgage-backed securities     376,801       191       (1,210)     (5,550)       370,232  
Corporate securities     656,447       179       (1,635)     (6,401)       648,590  
Municipal securities     223,991       636       (9)     (1,056)       223,562  
Other     79,853       4       (14)     (41)       79,802  
Total   $ 1,576,112     $ 1,142     $ (5,277)   $ (13,429)     $ 1,558,548  

 

    Available-For-Sale Securities as
of December 27, 2014 (3)		  
    Amortized Cost     Gross Unrealized
Gains		     Gross
Unrealized
Losses- OTTI (1)		     Gross Unrealized
Losses- Other (2)		     Estimated Fair
Value (Net
Carrying
Amount)		  
U.S. Treasury securities   $ 30,185     $ 26     $ (25)   $ (42)   $ 30,144  
Agency securities     436,817       169       (8,259)     (407)     428,320  
Mortgage-backed securities     329,048       580       (1,813)     (3,508)     324,307  
Corporate securities     600,674       689       (2,874)     (4,087)     594,402  
Municipal securities     125,183       497       (48)     (222)     125,410  
Other     72,857       59       (12)     (154)     72,750  
Total   $ 1,594,764     $ 2,020     $ (13,031)   $ (8,420)   $ 1,575,333  

 

  (1) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.
  (2) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.
  (3) Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement.
Schedule of available for sale securities unrealized loss on investments

The following table displays additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position:

 

    As of December 26, 2015  
    Less than 12 Consecutive Months     12 Consecutive Months or Longer  
    Gross Unrealized
Losses		     Fair Value     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ (68)   $ 22,184     $ -     $ -  
Agency securities     (691)     117,803       (2,031)       69,418  
Mortgage-backed securities     (4,571)     263,735       (2,189)       83,722  
Corporate securities     (6,719)     521,731       (1,317)       50,374  
Municipal securities     (1,035)     116,033       (30)       6,557  
Other     (29)       14,666       (26)     14,927  
Total   $ (13,113)     $ 1,056,152     $ (5,593)   $ 224,998  

 

    As of December 27, 2014(1)  
    Less than 12 Consecutive Months     12 Consecutive Months or Longer  
    Gross Unrealized
Losses		     Fair Value     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ (42 )   $ 18,822     $ (25 )   $ 6,634  
Agency securities     (397 )     64,862       (8,269 )     312,139  
Mortgage-backed securities     (2,169 )     187,309       (3,152 )     99,566  
Corporate securities     (4,058 )     373,925       (2,903 )     114,076  
Municipal securities     (222 )     29,533       (48 )     15,019  
Other     (154 )     29,977       (12 )     3,091  
Total   $ (7,042 )   $ 704,428     $ (14,409 )   $ 550,525  

  

  (1) Certain available- for-sale securities held as of December 27, 2014 have been reclassified amount major security types to confirm to the current year presentation. These reclassifications had no effect on fair value measurement.
Schedule of amortized cost and estimated fair value of marketable securities by contractual maturity

The amortized cost and estimated fair value of marketable securities at December 26, 2015, by contractual maturity, are shown below.

          Estimated  
    Cost     Fair Value  
                 
Due in one year or less   $ 215,143     $ 215,161  
Due after one year through five years   1,179,753       1,167,026  
Due after five years through ten years   112,256       108,923  
Due after ten years   68,960       67,438  
                 
    $ 1,576,112     $ 1,558,548  
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 26, 2015
Commitments and Contingencies Disclosure [Abstract]  
Schedule of future minimum lease payments

Future minimum lease payments are as follows:

 

Year     Amount  
2016   $ 16,621  
2017     12,091  
2018     9,849  
2019     6,963  
2020     5,323  
Thereafter     14,182  
Total   $ 65,029  
Income Taxes (Tables)
 12 Months Ended
Dec. 26, 2015
Income Tax Disclosure [Abstract]  
Schedule of income tax provision

The Company’s income tax provision (benefit) consists of the following:

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
      2015       2014       2013  
Federal:                        
Current   $ 49,138     $ (18,665)   $ (11,907)  
Deferred     4,216       58,164       1,913  
      53,354       39,499       (9,994)
State:                        
Current     9,354       5,575       2,584  
Deferred     (5,858)     4,368       (408)
      3,496       9,943       2,176  
Foreign:                        
Current     55,730       287,197       37,094  
Deferred     (1,620)     22,895       11,870  
      54,110       310,092       48,964  
Total   $ 110,960     $ 359,534     $ 41,146  
Schedule of sources and tax effects of the differences

The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows:

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
    2015     2014     2013  
Federal income tax expense at U.S. statutory rate   $ 198,516     $ 253,260     $ 229,420  
State income tax expense, net of federal tax effect     1,931       6,463       1,414  
Foreign tax rate differential     (100,010)     (154,338)     (121,279)
Taiwan tax holiday benefit     (3,488)     (3,147)     (4,944)
Other foreign taxes less incentives and credits     (8,592)     5,947       (2,032)
Withholding Tax     16,969       21,039       7,073  
Intercompany Restructuring     0       307,635       -  
Net change in uncertain tax positions     21,246       (67,231)     (50,700)
U.S. federal domestic production activities deduction     (4,589)     (3,606)     (3,550)
U.S. federal research and development credit     (8,573)     (8,373)     (14,876)
Other, net     (2,450)     1,885       620  
Income tax expense   $ 110,960     $ 359,534     $ 41,146  

 
Schedule of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

 

    December 26,     December 27,  
    2015     2014  
Deferred tax assets:                
Product warranty accruals   $ 2,990     $ 3,560  
Allowance for doubtful accounts     10,323       9,111  
Inventory reserves     10,904       8,161  
Sales program allowances     1,783       1,081  
Reserve for sales returns     1,457       -  
Other accruals     10,799       11,058  
Stock option compensation     35,360       38,265  
Tax credit carryforwards     3,906       2,726  
Amortization     20,005       21,595  
Deferred revenue     32,809       43,644  
Net operating losses of subsidiaries     5,228       12,456  
Benefit related to uncertain tax positions     5,546       4,246  
Other     4,106       3,485  
Valuation allowance related to loss carryforward and tax credits     (2,781 )     (11,358 )
      142,435       148,030  
Deferred tax liabilities:                
Depreciation     18,029       16,192  
Reserve for sales returns     -       419  
Prepaid expenses     2,821       3,283  
Book basis in excess of tax basis for acquired entities     1,307       2,099  
Unrealized investment loss     3,198       6,384  
Withholding tax     54,865       50,561  
Other     1,907       2,448  
      82,127       81,386  
Net deferred tax assets   $ 60,308     $ 66,644  
Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for years ended December 26, 2015, December 27, 2014, and December 28, 2013 is as follows:

 

    December 26,     December 27,     December 28,  
    2015     2014     2013  
Balance at beginning of year   $ 77,495     $ 133,015     $ 182,870  
Additions based on tax positions related to prior years     89       2,889       2,668  
Reductions based on tax positions related to prior years     (1,671 )     (60,967 )     (8,195 )
Additions based on tax positions related to current period     29,019       39,115       30,262  
Reductions related to settlements with tax authorities     (364 )     (401 )     (416 )
Expiration of statute of limitations     (6,664 )     (36,156 )     (74,174 )
Balance at end of year   $ 97,904     $ 77,495     $ 133,015  
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 26, 2015
Fair Value Disclosures [Abstract]  
Schedule of carrying amounts and fair values of financial instruments

The carrying amounts and fair values of the Company’s financial instruments are as follows:

 

    December 26, 2015     December 27, 2014  
    Carrying     Fair     Carrying     Fair  
    Amount     Value     Amount     Value  
                         
Cash and cash equivalents   $ 833,070     $ 833,070     $ 1,196,268     $ 1,196,268  
Restricted cash     259       259       308       308  
Marketable securities     1,558,548       1,558,548       1,575,333       1,575,333  
Segment Information (Tables)
 12 Months Ended
Dec. 26, 2015
Segment Reporting [Abstract]  
Schedule of revenues, gross profit, and operating income

Revenues, gross profit, and operating income for each of the Company’s reportable segments are presented below:

 

    Reportable Segments  
52-Weeks Ended December 26, 2015   Outdoor     Fitness     Marine     Auto     Aviation     Total  
                                     
Net sales   $ 425,150     $ 661,599     $ 286,778     $ 1,048,125     $ 398,618     $ 2,820,270  
Gross profit     259,889       366,139       158,493       459,469       294,714       1,538,704  
Operating income     140,200       134,574       28,611       134,939       111,257       549,581  
                                                 
52-Weeks Ended December 27, 2014                                                
                                                 
Net sales   $ 427,555     $ 568,440     $ 248,371     $ 1,240,377     $ 385,915     $ 2,870,658  
Gross profit     266,550       358,287       129,710       569,452       280,413       1,604,412  
Operating income     151,055       190,682       26,232       215,679       106,978       690,626  
                                                 
52-Weeks Ended December 28, 2013                                                
                                                 
Net sales   $ 410,989     $ 356,283     $ 222,928     $ 1,302,314     $ 339,337     $ 2,631,851  
Gross profit     262,529       222,925       115,091       565,083       241,672       1,407,300  
Operating income     159,197       120,250       18,493       188,517       87,575       574,032  
Schedule of net sales, long-lived assets and net assets by geographic area

Net sales, long-lived assets (property and equipment), and net assets by geographic area are as shown below for the years ended December 26, 2015, December 27, 2014 and December 28, 2013.

    Americas     APAC     EMEA     Total  
December 26, 2015                                
Net sales to external customers (1)   $ 1,469,243     $ 337,888     $ 1,013,139     $ 2,820,270  
Property and equipment, net     294,234       111,701       40,154       446,089  
Net assets (2)     2,110,108       921,410       313,608       3,345,126  
December 27, 2014                                
Net sales to external customers (1)   $ 1,538,322     $ 278,092     $ 1,054,244     $ 2,870,658  
Property and equipment, net     269,858       111,464       49,565       430,887  
Net assets (2)     2,142,624       939,852       320,891       3,403,367  
December 28, 2013                                
Net sales to external customers (1)   $ 1,432,895     $ 243,056     $ 955,900     $ 2,631,851  
Property and equipment, net     239,528       121,012       54,308       414,848  
Net assets (2)     1,338,401       2,048,903       272,402       3,659,706  

(1) The U.S. is the only country which constitutes greater than 10% of net sales to external customers.

(2) Americas and APAC net assets are primarily held in the United States and Taiwan, respectively.

 
Stock Compensation Plans (Tables)
 12 Months Ended
Dec. 26, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of stock options and stock appreciation rights award activity

A summary of the Company’s stock-based compensation activity and related information under the 2011 Directors Plan, the 2005 Plan, the 2000 Plan and the 2000 Directors Plan for the years ended December 26, 2015, December 27, 2014 and December 28, 2013 is provided below:

 

    Stock Options and SARs  
    Weighted-Average        
    Exercise Price     Number of Shares  
          (In Thousands)  
             
Outstanding at December 29, 2012   $ 55.88       7,132  
Granted   $ 49.07       52  
Exercised   $ 26.85       (662 )
Forfeited/Expired   $ 66.09       (283 )
Outstanding at December 28, 2013   $ 58.44       6,239  
Granted   $ 52.44       47  
Exercised   $ 40.60       (1,430 )
Forfeited/Expired   $ 80.49       (125 )
Outstanding at December 27, 2014   $ 63.19       4,731  
Granted             0  
Exercised   $ 29.15       (474 )
Forfeited/Expired   $ 70.58       (196 )
Outstanding at December 26, 2015   $ 66.80       4,061  
Exercisable at December 26, 2015   $ 67.23       3,970  
Expected to vest after December 26, 2015   $ 47.92       91  
Schedule of exercise price range
Stock Options and SARs as of December 26, 2015
Exercise   Awards     Remaining     Awards  
Price   Outstanding     Life (Years)     Exercisable  
    (In Thousands)           (In Thousands)  
                   
$18.00 -$40.00     60       4.65       49  
$40.01 - $60.00     1,998       1.86       1,918  
$60.01 - $80.00     977       1.44       977  
$80.01 - $100.00     3       1.96       3  
$100.01 - $120.00     1,021       1.93       1,021  
$120.01 - $140.00     2       1.76       2  
      4,061       1.81       3,970  

 
Schedule of restricted stock units award activity
    Restricted Stock Units  
    Weighted-Average        
    Grant Date Fair Value     Number of Shares  
          (In Thousands)  
             
Outstanding at December 29, 2012   $ 30.06       1,460  
Granted   $ 45.05       425  
Released/Vested   $ 28.28       (579 )
Cancelled   $ 30.63       (81 )
Outstanding at December 28, 2013   $ 37.36       1,225  
Granted   $ 48.73       432  
Released/Vested   $ 36.00       (522 )
Cancelled   $ 37.02       (47 )
Outstanding at December 27, 2014   $ 42.55       1,088  
Granted   $ 37.07       1,184  
Released/Vested   $ 40.18       (562 )
Cancelled   $ 42.02       (53 )
Outstanding at December 26, 2015   $ 39.45       1,657  

 
Schedule of weighted-average assumptions used for fair value estimates using stock option pricing model

No options or SARs were granted in 2015.

 

    2014     2013  
Weighted average grant date fair value of options granted   $ 12.42     $ 12.82  
Expected volatility     0.3342       0.3746  
Dividend yield     3.57 %     3.86 %
Expected life of options in years     6.8       6.8  
Risk-free interest rate     1.9 %     2.1 %
Earnings Per Share (Tables)
 12 Months Ended
Dec. 26, 2015
Earnings Per Share [Abstract]  
Schedule of earnings per share

The following table sets forth the computation of basic and diluted net income per share:

 

    Fiscal Year Ended  
    December 26,     December 27,     December 28,  
    2015     2014     2013  
Numerator:                        
Numerator for basic and diluted net income per share - net income   $ 456,227     $ 364,211     $ 612,412  
                         
Denominator:                        
Denominator for basic net income per share – weighted-average common shares     190,631       193,106       195,411  
                         
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     476       1,059       928  
                         
Denominator for diluted net income per share – adjusted weighted-average common shares     191,107       194,165       196,339  
                         
Basic net income per share   $ 2.39     $ 1.89     $ 3.13  
                         
Diluted net income per share   $ 2.39     $ 1.88     $ 3.12  
Accumulated Other Comprehensive Income (Tables)
 12 Months Ended
Dec. 26, 2015
Stockholders' Equity Note [Abstract]  
Schedule of changes in accumulated other comprehensive income

The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the year ended December 26, 2015:

 

    Foreign Currency
Translation
Adjustment		     Gross unrealized
losses on
available-for-sale
securities-OTTI (1 )		     Net unrealized
gains(losses) on
available-for-sale
securities-
Other(2)		     Total  
Balance - beginning of period   $ 20,874     $ (13,031 )   $ (5,272 )   $ 2,571  
Other comprehensive income before reclassification     (34,981 )     7,754       (5,599 )     (32,826 )
Amounts reclassified from accumulated other comprehensive income     -       -       (173 )     (173 )
Net current-period other comprehensive income     (34,981 )     7,754       (5,772 )     (32,999 )
Balance - end of period   $ (14,107 )   $ (5,277 )   $ (11,044 )   $ (30,428 )

 

(1) Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than-temporarily impaired.

(2) Represents the change in unrealized gains (losses) on investment securities that have not been determined to be other-than-temporarily impaired.
Schedule of reporting reclassifications out of AOCI

The following provides required disclosure of reporting reclassifications out of AOCI for the year ended December 26, 2015:

 

Details about Accumulated Other Comprehensive
Income Components		   Amount Reclassified from
Accumulated Other
Comprehensive Income		     Affected Line Item in the Statement
Where Net Income is Presented
           
Unrealized gains (losses) on available-for-sale securities   $ 54     Other income (expense)
      119     Income tax provision
    $ 173     Net of tax
Selected Quarterly Information (Unaudited) (Tables)
 12 Months Ended
Dec. 26, 2015
Quarterly Financial Information Disclosure [Abstract]  
Schedule of quarterly financial information
    Fiscal Year Ended December 26, 2015  
    Quarter Ending  
    March 28     June 27     September 26     December 26  
                         
Net sales   $ 585,394     $ 773,830     $ 679,690     $ 781,358  
Gross profit     344,122       419,250       362,190       413,143  
Net income     66,793       137,753       119,299       132,383  
Basic net income per share   $ 0.35     $ 0.72     $ 0.63     $ 0.70  

 

    Fiscal Year Ended December 27, 2014  
    Quarter Ending  
    March 29     June 28     September 27     December 27  
                         
Net sales   $ 583,221     $ 777,848     $ 706,283     $ 803,306  
Gross profit     330,834       444,485       398,246       430,848  
Net income (loss)     118,818       181,983       (146,834 )     210,245  
Basic net income (loss) per share   $ 0.61     $ 0.94     $ (0.76 )   $ 1.10  
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands
Dec. 26, 2015
Dec. 27, 2014
Accounting Policies [Abstract]    
Raw Materials $ 203,173 $ 161,444
Work-in-process 69,690 53,824
Finished goods 273,762 244,282
Inventory Reserves (46,071) (39,075)
Inventory, net of reserves $ 500,554 $ 420,475
Summary of Significant Accounting Policies (Details 1)
 12 Months Ended
Dec. 26, 2015
Buildings and improvements [Member] | Minimum [Member]  
Property, Plant and Equipment, Useful Life 39 years
Buildings and improvements [Member] | Maximum [Member]  
Property, Plant and Equipment, Useful Life 50 years
Office furniture and equipment [Member] | Minimum [Member]  
Property, Plant and Equipment, Useful Life 3 years
Office furniture and equipment [Member] | Maximum [Member]  
Property, Plant and Equipment, Useful Life 5 years
Manufacturing and engineering equipment [Member]  
Property, Plant and Equipment, Useful Life 5 years
Vehicles [Member]  
Property, Plant and Equipment, Useful Life 5 years
Summary of Significant Accounting Policies (Details 2) - $ / shares
Jun. 05, 2015
Jun. 06, 2014
Jun. 07, 2013
Dividend Payable 1 [Member]      
Dividend Date Jun. 30, 2015 Jun. 30, 2014 Jun. 28, 2013
Record Date Jun. 16, 2015 Jun. 17, 2014 Jun. 18, 2013
Dividend per share $ 0.51 $ 0.48 $ 0.45
Dividend Payable 2 [Member]      
Dividend Date Sep. 30, 2015 Sep. 30, 2014 Sep. 30, 2013
Record Date Sep. 15, 2015 Sep. 15, 2014 Sep. 16, 2013
Dividend per share $ 0.51 $ 0.48 $ 0.45
Dividend Payable 3 [Member]      
Dividend Date Dec. 31, 2015 Dec. 31, 2014 Dec. 31, 2013
Record Date Dec. 15, 2015 Dec. 15, 2014 Dec. 16, 2013
Dividend per share $ 0.51 $ 0.48 $ 0.45
Dividend Payable 4 [Member]      
Dividend Date Mar. 31, 2016 Mar. 31, 2015 Mar. 31, 2014
Record Date Mar. 15, 2016 Mar. 16, 2015 Mar. 17, 2014
Dividend per share $ 0.51 $ 0.48 $ 0.45
Summary of Significant Accounting Policies (Details 3) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Goodwill [Roll Forward]    
Goodwill balance at beginning of year $ 178,638 $ 179,290
Acquisitions 11,908 2,517
Finalization of purchase price allocations and effect of foreign currency translation (2,755) (3,169)
Goodwill balance at end of year $ 187,791 $ 178,638
Summary of Significant Accounting Policies (Details 4) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]      
Balance - beginning of period $ 27,609 $ 26,767 $ 37,301
Change in accrual for products sold in prior periods [1] (8,709)
Accrual for products sold [2] $ 44,620 $ 44,423 41,309
Expenditures (41,780) (43,581) (43,134)
Balance - end of period $ 30,449 $ 27,609 $ 26,767
[1] Our expected future cost is estimated based upon historical trends in the volume of product returns and the related warranty costs incurred. In 2013 we updated these assumptions and shortened the estimated time horizon in which we settle claims with our retail partners.
[2] Minor changes in cost estimates related to pre-existing warranties are aggregated with accruals for new warranty contracts in the 'accrual for products sold' line.
Summary of Significant Accounting Policies (Details Narrative)
$ in Thousands
 12 Months Ended
Mar. 14, 2013
USD ($)
Number
Dec. 26, 2015
USD ($)
Dec. 27, 2014
USD ($)
Dec. 28, 2013
USD ($)
Cumulative translation adjustments   $ (14,108) $ 20,874  
Foreign currency (losses) gains   (23,465) (4,299) $ 35,538
Dividends   378,117 360,075 351,707
Intangible assets, net   216,465 191,034  
Accumulated amortization intangible assets   158,704 151,589  
Amortization expense intangible assets   7,115 8,362 17,847
Amortization expense intangible assets, Next twelve months   19,780    
Amortization expense intangible assets, Year two   7,506    
Amortization expense intangible assets, Year three   6,734    
Amortization expense intangible assets, Year four   4,787    
Amortization expense intangible assets, Year five   3,610    
Goodwill   187,791 178,638 179,290
Fair value available-for-sale securities unrealized gains and losses, net of tax   (16,321) (18,303)  
Deferred revenues   293,713 338,728  
Total deferred Costs   87,945 87,476  
Deferred revenue and cost expenses, Next twelve months   115,806    
Deferred revenue and cost expenses, Year two   60,971    
Deferred revenue and cost expenses, Year three   21,467    
Deferred revenue and cost expenses, Year four   5,356    
Deferred revenue and cost expenses, Year five   2,168    
Advertising expense   167,166 146,633 112,905
Research and development costs   $ 427,043 395,121 $ 364,923
Aviation Product [Member]        
Product warranty term   2 years    
State Administration of Taxation, China [Member]        
Restricted retained earnings   $ 304,674 $ 290,955  
Memorandum of Agreement [Member] | Interest Free Loans Receivable [Member] | Bombardier, Inc [Member]        
Loans receivable $ 173,708      
Number of installment | Number 7      
Number of installment repaid | Number 5      
Minimum [Member]        
Acquired intangible assets useful life   3 years    
Deferred revenues useful life   2 years    
Minimum [Member] | Other Product Other Than Aviation Product [Member]        
Product warranty term   1 year    
Maximum [Member]        
Acquired intangible assets useful life   10 years    
Deferred revenues useful life   5 years    
Maximum [Member] | Other Product Other Than Aviation Product [Member]        
Product warranty term   2 years    
Customer Concentration Risk [Member] | Net Sales [Member]        
Concentration risk net sales   10.00% 10.00% 10.00%
Ten Customer Concentration Risk [Member] | Net Sales [Member] | Minimum [Member]        
Concentration risk net sales       22.00%
Ten Customer Concentration Risk [Member] | Net Sales [Member] | Maximum [Member]        
Concentration risk net sales       24.00%
Marketable Securities (Details) - USD ($)
$ in Thousands
Dec. 26, 2015
Dec. 27, 2014
 [1]
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total $ 1,558,548 $ 1,575,333
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 27,731 30,144
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 208,631 428,320
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 370,232 324,307
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 648,590 594,402
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 223,562 125,410
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 79,802 72,750
Recurring Basis [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 1,558,548 1,575,333
Recurring Basis [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 27,731 30,144
Recurring Basis [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 208,631 428,320
Recurring Basis [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 370,232 324,307
Recurring Basis [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 648,590 594,402
Recurring Basis [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 223,562 125,410
Recurring Basis [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total $ 79,802 $ 72,750
Recurring Basis [Member] | Level 1 [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 2 [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total $ 1,558,548 $ 1,575,333
Recurring Basis [Member] | Level 2 [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 27,731 30,144
Recurring Basis [Member] | Level 2 [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 208,631 428,320
Recurring Basis [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 370,232 324,307
Recurring Basis [Member] | Level 2 [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 648,590 594,402
Recurring Basis [Member] | Level 2 [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 223,562 125,410
Recurring Basis [Member] | Level 2 [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total $ 79,802 $ 72,750
Recurring Basis [Member] | Level 3 [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total
[1] Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement.
Marketable Securities (Details 1) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
 [1]
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 1,576,112 $ 1,594,764
Gross Unrealized Gains 1,142 2,020
Gross Unrealized Losses-OTTI [2] (5,277) (13,031)
Gross Unrealized Losses-Other [3] (13,429) (8,420)
Estimated Fair Value (Net Carrying Amount) 1,558,548 1,575,333
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 27,772 30,185
Gross Unrealized Gains $ 27 26
Gross Unrealized Losses-OTTI [2] (25)
Gross Unrealized Losses-Other [3] $ (68) (42)
Estimated Fair Value (Net Carrying Amount) 27,731 30,144
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 211,248 436,817
Gross Unrealized Gains 105 169
Gross Unrealized Losses-OTTI [2] (2,409) (8,259)
Gross Unrealized Losses-Other [3] (313) (407)
Estimated Fair Value (Net Carrying Amount) 208,631 428,320
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 376,801 329,048
Gross Unrealized Gains 191 580
Gross Unrealized Losses-OTTI [2] (1,210) (1,813)
Gross Unrealized Losses-Other [3] (5,550) (3,508)
Estimated Fair Value (Net Carrying Amount) 370,232 324,307
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 656,447 600,674
Gross Unrealized Gains 179 689
Gross Unrealized Losses-OTTI [2] (1,635) (2,874)
Gross Unrealized Losses-Other [3] (6,401) (4,087)
Estimated Fair Value (Net Carrying Amount) 648,590 594,402
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 223,991 125,183
Gross Unrealized Gains 636 497
Gross Unrealized Losses-OTTI [2] (9) (48)
Gross Unrealized Losses-Other [3] (1,056) (222)
Estimated Fair Value (Net Carrying Amount) 223,562 125,410
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 79,853 72,857
Gross Unrealized Gains 4 59
Gross Unrealized Losses-OTTI [2] (14) (12)
Gross Unrealized Losses-Other [3] (41) (154)
Estimated Fair Value (Net Carrying Amount) $ 79,802 $ 72,750
[1] Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement.
[2] Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.
[3] Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.
Marketable Securities (Details 2) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months $ (13,113) $ (7,042)
Fair Value Less than 12 Consecutive Months 1,056,152 704,428
Gross Unrealized Losses 12 Consecutive Months or Longer (5,593) (14,409)
Fair Value 12 Consecutive Months or Longer 224,998 550,525
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (68) (42)
Fair Value Less than 12 Consecutive Months $ 22,184 18,822
Gross Unrealized Losses 12 Consecutive Months or Longer (25)
Fair Value 12 Consecutive Months or Longer 6,634
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months $ (691) (397)
Fair Value Less than 12 Consecutive Months 117,803 64,862
Gross Unrealized Losses 12 Consecutive Months or Longer (2,031) (8,269)
Fair Value 12 Consecutive Months or Longer 69,418 312,139
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (4,571) (2,169)
Fair Value Less than 12 Consecutive Months 263,735 187,309
Gross Unrealized Losses 12 Consecutive Months or Longer (2,189) (3,152)
Fair Value 12 Consecutive Months or Longer 83,722 99,566
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (6,719) (4,058)
Fair Value Less than 12 Consecutive Months 521,731 373,925
Gross Unrealized Losses 12 Consecutive Months or Longer (1,317) (2,903)
Fair Value 12 Consecutive Months or Longer 50,374 114,076
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (1,035) (222)
Fair Value Less than 12 Consecutive Months 116,033 29,533
Gross Unrealized Losses 12 Consecutive Months or Longer (30) (48)
Fair Value 12 Consecutive Months or Longer 6,557 15,019
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (29) (154)
Fair Value Less than 12 Consecutive Months 14,666 29,977
Gross Unrealized Losses 12 Consecutive Months or Longer (26) (12)
Fair Value 12 Consecutive Months or Longer $ 14,927 $ 3,091
Marketable Securities (Details 3) - USD ($)
$ in Thousands
Dec. 26, 2015
Dec. 27, 2014
 [1]
Cost [Abstract]    
Due in one year or less $ 215,143  
Due after one year through five years 1,179,753  
Due after five years through ten years 112,256  
Due after ten years 68,960  
Total 1,576,112 $ 1,594,764
Estimated Fair Value [Abstract]    
Due in one year or less 215,161  
Due after one year through five years 1,167,026  
Due after five years through ten years 108,923  
Due after ten years 67,438  
Total $ 1,558,548 $ 1,575,333
[1] Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement.
Marketable Securities (Details Narrative)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
USD ($)
Investments, Debt and Equity Securities [Abstract]  
Unrealized loss position amortized cost $ 1,299,856
Unrealized loss position fair value $ 1,281,150
Percentage of available-for-sale securities in unrealized loss positions 63.60%
Commitments and Contingencies (Details Narrative) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Rental expense of office, equipment, warehouse space and real estate $ 18,104 $ 19,559 $ 18,721
Aggregate amount of purchase orders and other commitments 278,327    
Garmin (Europe) Ltd & Garmin Corporation [Member]      
Restricted cash balances (Local value-added tax) $ 259 $ 308  
Commitments and Contingencies (Details)
$ in Thousands
Dec. 26, 2015
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2016 $ 16,621
2017 12,091
2018 9,849
2019 6,963
2020 5,323
Thereafter 14,182
Total $ 65,029
Employee Benefit Plans (Details Narrative) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Expenses related to other defined contribution plans $ 37,489 $ 29,267 $ 26,839
Defined Contribution Retirement Plan [Member] | Garmin International, Inc & Other U.S. - based Subsidiaries Sponsor [Member]      
Maximum annually percentage of employees contribution to retirement plan   50.00%  
Defined Contribution Retirement Plan [Member] | Garmin (Europe) Ltd [Member]      
Maximum annually percentage of employees contribution to retirement plan   7.50%  
Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Federal:      
Current $ 49,138 $ (18,665) $ (11,907)
Deferred 4,216 58,164 1,913
Total federal income tax provision (benefit) 53,354 39,499 (9,994)
State:      
Current 9,354 5,575 2,584
Deferred (5,858) 4,368 (408)
Total state income tax provision (benefit) 3,496 9,943 2,176
Foreign:      
Current 55,730 287,197 37,094
Deferred (1,620) 22,895 11,870
Total foreign income tax provision (benefit) 54,110 310,092 48,964
Income tax provision $ 110,960 $ 359,534 $ 41,146
Income Taxes (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 27, 2014
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Income Tax Disclosure [Abstract]        
Federal income tax expense at U.S. statutory rate   $ 198,516 $ 253,260 $ 229,420
State income tax expense, net of federal tax effect   1,931 6,463 1,414
Foreign tax rate differential   (100,010) (154,338) (121,279)
Taiwan tax holiday benefit   (3,488) (3,147) (4,944)
Other foreign taxes less incentives and credits   (8,592) 5,947 (2,032)
Withholding Tax   16,969 21,039 $ 7,073
Intercompany Restructuring $ 307,635 0 307,635
Net change in uncertain tax positions   21,246 (67,231) $ (50,700)
U.S. federal domestic production activities deduction   (4,589) (3,606) (3,550)
U.S. federal research and development credit   (8,573) (8,373) (14,876)
Other, net   (2,450) 1,885 620
Income tax provision   $ 110,960 $ 359,534 $ 41,146
Income Taxes (Details 2) - USD ($)
$ in Thousands
Dec. 26, 2015
Dec. 27, 2014
Deferred tax assets:    
Product warranty accruals $ 2,990 $ 3,560
Allowance for doubtful accounts 10,323 9,111
Inventory reserves 10,904 8,161
Sales program allowances 1,783 $ 1,081
Reserve for sales returns 1,457
Other accruals 10,799 $ 11,058
Stock option compensation 35,360 38,265
Tax credit carryforwards 3,906 2,726
Amortization 20,005 21,595
Deferred revenue 32,809 43,644
Net operating losses of subsidiaries 5,228 12,456
Benefit related to uncertain tax positions 5,546 4,246
Other 4,106 3,485
Valuation allowance related to loss carryforward and tax credits (2,781) (11,358)
Total deferred tax assets 142,435 148,030
Deferred tax liabilities:    
Depreciation $ 18,029 16,192
Reserve for sales returns 419
Prepaid expenses $ 2,821 3,283
Book basis in excess of tax basis for acquired entities 1,307 2,099
Unrealized investment loss 3,198 6,384
Withholding tax 54,865 50,561
Other 1,907 2,448
Total deferred tax liabilities 82,127 81,386
Net deferred tax assets $ 60,308 $ 66,644
Income Taxes (Details 3) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Income Tax Disclosure [Abstract]      
Balance at beginning of year $ 77,495 $ 133,015 $ 182,870
Additions based on tax positions related to prior years 89 2,889 2,668
Reductions based on tax positions related to prior years (1,671) (60,967) (8,195)
Additions based on tax positions related to current period 29,019 39,115 30,262
Reductions related to settlements with tax authorities (364) (401) (416)
Expiration of statute of limitations (6,664) (36,156) (74,174)
Balance at end of year $ 97,904 $ 77,495 $ 133,015
Income Taxes (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 27, 2014
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Inter-company restructuring tax expenses $ 307,635 $ 0 $ 307,635
Income taxes paid 263,000      
Effective income tax amount   198,516 253,260 $ 229,420
Effective income tax foreign tax rate differential   (100,010) (154,338) (121,279)
Income before income taxes   567,187 723,745 653,558
Income tax expense used for unremitted earnings   110,960 359,534 41,146
Write-off stock option compensation $ 6,000      
Tax credit carryforward amount   3,906 2,726  
Surtax Credit Carryforward [Member]        
Tax credit carryforward amount     52,618 52,618
Non-U.S. Operations Entity's [Member]        
Income before income taxes   403,242 546,790 502,423
Foreign Subsidiaries [Member]        
Income tax expense used for unremitted earnings   $ 21,085 $ 20,606 $ 307,990
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member]        
Effective income tax rate   7.83% 7.83% 7.83%
Effective income tax foreign tax rate differential   $ 52,000 $ 44,000 $ 64,000
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member] | Maximum [Member]        
Effective income tax amount   154,000 197,000 178,000
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member] | Minimum [Member]        
Effective income tax amount   $ 44,000 $ 57,000 $ 51,000
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member]        
Weighted-average common share outstanding tax holiday benefits (in dollars per share)   $ 0.02 $ 0.02 $ 0.03
Tax holiday benefits termination year   2017    
Income Taxes (Details Narrative 1) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Deferred tax assets related to future tax benefit on net operating loss carryforward $ 5,228    
Net operating loss carryforwards 19,580    
Net unrecognized tax benefits 93,654 $ 74,205 $ 125,918
Accrued interest and penalties on unrecognized tax benefits 2,479 2,159 5,111
Increase (decrease) unrecognized tax benefits 320 (2,953) (3,111)
Reduction in income tax expense (6,664) (36,156) (74,174)
Minimum [Member]      
Reserves for certain unrecognized tax benefits 5,000    
Maximum [Member]      
Reserves for certain unrecognized tax benefits 10,000    
Various Other Jurisdictions [Member]      
Net operating loss carryforwards 5,295    
Reduction in income tax expense 6,971 $ 83,006 $ 74,217
Foreign Tax Authority [Member] | Tax Authority, Spain [Member]      
Net operating loss carryforwards $ 7,092    
Foreign Tax Authority [Member] | Tax Authority, Spain [Member] | Minimum [Member]      
Net operating loss carryforwards expiration year 2022    
Foreign Tax Authority [Member] | Tax Authority, Spain [Member] | Maximum [Member]      
Net operating loss carryforwards expiration year 2027    
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member]      
Net operating loss carryforwards $ 338    
Net operating loss carryforwards expiration year 2022    
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member] | Minimum [Member]      
Income tax examination year 2011    
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member] | Maximum [Member]      
Income tax examination year 2015    
Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member]      
Net operating loss carryforwards $ 4,238    
Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | Minimum [Member]      
Net operating loss carryforwards expiration year 2017    
Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | Maximum [Member]      
Net operating loss carryforwards expiration year 2022    
Foreign Tax Authority [Member] | Finnish Tax Administration [Member]      
Net operating loss carryforwards $ 1,317    
Net operating loss carryforwards expiration year 2025    
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member]      
Income tax examination year 2009    
Foreign Tax Authority [Member] | Her Majesty's Revenue and Customs (HMRC) [Member]      
Income tax examination year 2012    
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member]      
Net operating loss carryforwards $ 1,300    
Net operating loss carryforwards expiration year 2035    
Income tax examination year 2012    
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 26, 2015
Dec. 27, 2014
Marketable securities $ 1,558,548 $ 1,575,333 [1]
Fair Value [Member]    
Cash and cash equivalents 833,070 1,196,268
Restricted cash 259 308
Marketable securities 1,558,548 1,575,333
Carrying Amount [Member]    
Cash and cash equivalents 833,070 1,196,268
Restricted cash 259 308
Marketable securities $ 1,558,548 $ 1,575,333
[1] Certain available-for-sale securities held as of December 27, 2014 have been reclassified among major security types to conform to the current year presentation. These reclassifications had no effect on fair value measurement.
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Net sales $ 781,358 $ 679,690 $ 773,830 $ 585,394 $ 803,306 $ 706,283 $ 777,848 $ 583,221 $ 2,820,270 [1] $ 2,870,658 [1] $ 2,631,851 [1]
Gross profit $ 413,143 $ 362,190 $ 419,250 $ 344,122 $ 430,848 $ 398,246 $ 444,485 $ 330,834 1,538,704 1,604,412 1,407,300
Operating income                 549,581 690,626 574,032
Outdoor [Member]                      
Net sales                 425,150 427,555 410,989
Gross profit                 259,889 266,550 262,529
Operating income                 140,200 151,055 159,197
Fitness [Member]                      
Net sales                 661,599 568,440 356,283
Gross profit                 366,139 358,287 222,925
Operating income                 134,574 190,682 120,250
Marine [Member]                      
Net sales                 286,778 248,371 222,928
Gross profit                 158,493 129,710 115,091
Operating income                 28,611 26,232 18,493
Auto [Member]                      
Net sales                 1,048,125 1,240,377 1,302,314
Gross profit                 459,469 569,452 565,083
Operating income                 134,939 215,679 188,517
Aviation [Member]                      
Net sales                 398,618 385,915 339,337
Gross profit                 294,714 280,413 241,672
Operating income                 $ 111,257 $ 106,978 $ 87,575
[1] The U.S. is the only country which constitutes greater than 10% of net sales to external customers.
Segment Information (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Net sales to external customers $ 781,358 $ 679,690 $ 773,830 $ 585,394 $ 803,306 $ 706,283 $ 777,848 $ 583,221 $ 2,820,270 [1] $ 2,870,658 [1] $ 2,631,851 [1]
Property and equipment, net 446,089       430,887       446,089 430,887 414,848
Net assets [2] 3,345,126       3,403,367       3,345,126 3,403,367 3,659,706
Americas [Member]                      
Net sales to external customers [1]                 1,469,243 1,538,322 1,432,895
Property and equipment, net 294,234       269,858       294,234 269,858 239,528
Net assets [2] 2,110,108       2,142,624       2,110,108 2,142,624 1,338,401
APAC [Member]                      
Net sales to external customers [1]                 337,888 278,092 243,056
Property and equipment, net 111,701       111,464       111,701 111,464 121,012
Net assets [2] 921,410       939,852       921,410 939,852 2,048,903
EMEA [Member]                      
Net sales to external customers [1]                 1,013,139 1,054,244 955,900
Property and equipment, net 40,154       49,565       40,154 49,565 54,308
Net assets [2] $ 313,608       $ 320,891       $ 313,608 $ 320,891 $ 272,402
[1] The U.S. is the only country which constitutes greater than 10% of net sales to external customers.
[2] Americas and APAC net assets are primarily held in the United States and Taiwan, respectively.
Segment Information (Details Narrative)
 12 Months Ended
Dec. 26, 2015
Number
Segment Reporting [Abstract]  
Number of reportable segments 5
Number of operating segments 2
Stock Compensation Plans (Details) - Stock Option & Stock Appreciation Rights [Member] - $ / shares
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Exercise Price [Roll Forward]      
Outstanding at beginning $ 63.19 $ 58.44 $ 55.88
Granted   52.44 49.07
Exercised 29.15 40.60 26.85
Forfeited/Expired 70.58 80.49 66.09
Outstanding at end 66.80 $ 63.19 $ 58.44
Exercisable at end 67.23    
Expected to vest $ 47.92    
Share-based Compensation Arrangement by Share-based Payment Award, Outstanding [Roll Forward]      
Outstanding at beginning 4,731,000 6,239,000 7,132,000
Granted 0 47,000 52,000
Exercised (474,000) (1,430,000) (662,000)
Forfeited/Expired (196,000) (125,000) (283,000)
Outstanding at end 4,061,000 4,731,000 6,239,000
Exercisable at end 3,970,000    
Expected to vest 91,000    
Stock Compensation Plans (Details 1) - Stock Option & Stock Appreciation Rights [Member]
 12 Months Ended
Dec. 26, 2015
shares
Awards Oustanding 4,061,000
Remaining Life 1 year 9 months 22 days
Awards Exercisable 3,970,000
Exercise Price $18.00 - $40.00 [Member]  
Awards Oustanding 60,000
Remaining Life 4 years 7 months 24 days
Awards Exercisable 49,000
Exercise Price $40.01 - $60.00 [Member]  
Awards Oustanding 1,998,000
Remaining Life 1 year 10 months 10 days
Awards Exercisable 1,918,000
Exercise Price $60.01 - $80.00 [Member]  
Awards Oustanding 977,000
Remaining Life 1 year 5 months 8 days
Awards Exercisable 977,000
Exercise Price $80.01 - $100.00 [Member]  
Awards Oustanding 3,000
Remaining Life 1 year 11 months 16 days
Awards Exercisable 3,000
Exercise Price $100.01 - $120.00 [Member]  
Awards Oustanding 1,021,000
Remaining Life 1 year 11 months 5 days
Awards Exercisable 1,021,000
Exercise Price $120.01 - $140.00 [Member]  
Awards Oustanding 2,000
Remaining Life 1 year 9 months 3 days
Awards Exercisable 2,000
Stock Compensation Plans (Details 2) - Restricted Stock Units [Member] - $ / shares
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract      
Outstanding at beginning $ 42.55 $ 37.36  
Granted 37.07 48.73 $ 45.05
Released/Vested 40.18 36 28.28
Cancelled 42.02 37.02 30.63
Outstanding at end $ 39.45 $ 42.55 $ 37.36
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Outstanding at beginning 1,088,000 1,225,000 1,460,000
Granted 1,184,000 432,000 425,000
Released/Vested (562,000) (522,000) (579,000)
Cancelled (53,000) (47,000) (81,000)
Outstanding at end 1,657,000 1,088,000 1,225,000
Stock Compensation Plans (Details 3) - Stock Option & Stock Appreciation Rights [Member] - $ / shares
 12 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Weighted average grant date fair value of options granted $ 12.42 $ 12.82
Expected volatility 0.3342% 0.3746%
Dividend yield 3.57% 3.86%
Expected life 6 years 9 months 18 days 6 years 9 months 18 days
Risk-free interest rate 1.90% 2.10%
Stock Compensation Plans (Details Narrative) - shares
 1 Months Ended 12 Months Ended
Jun. 30, 2011
Jun. 30, 2005
Oct. 31, 2000
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Dec. 26, 2009
Restricted Stock Units [Member]              
Number of shares granted       1,184,000 432,000 425,000  
Outstanding awards weighted-average remaining contract life       1 year 6 months 14 days      
Stock Option & Stock Appreciation Rights [Member]              
Outstanding awards weighted-average remaining contract life       1 year 9 months 22 days      
Exercisable awards weighted-average remaining contract life       1 year 8 months 1 day      
2011 Non-employee Directors' Equity Incentive Plan [Member]              
Maximum number of authorized shares available for issuance 122,592            
Award vesting period 2 years            
Award expiration period 10 years            
2011 Non-employee Directors' Equity Incentive Plan [Member] | Restricted Stock Units [Member]              
Number of shares granted       12,008 7,120 11,484  
2005 Equity Incentive Plan [Member]              
Maximum number of authorized shares available for issuance   10,000,000       13,000,000  
Number of additional authorized shares issued           3,000,000  
2005 Equity Incentive Plan [Member] | Restricted Stock Units [Member]              
Award vesting period   3 years          
Number of shares granted       1,171,905 425,347 413,978  
Description of vesting period      

RSUs granted prior to December 10, 2012 vested or are vesting evenly over a period of five years.

      
2005 Equity Incentive Plan [Member] | Stock Option & Stock Appreciation Rights [Member]              
Award vesting period   5 years          
Award expiration period   10 years          
2005 Equity Incentive Plan [Member] | Stock Appreciation Rights (SARs) [Member]              
Number of shares granted         47,095 52,673  
2000 Equity Incentive Plan [Member]              
Maximum number of authorized shares available for issuance     7,000,000        
2000 Equity Incentive Plan [Member] | Stock Option & Stock Appreciation Rights [Member]              
Award vesting period     5 years        
Award expiration period     10 years        
2000 Non-employee Directors' Option Plan [Member]              
Maximum number of authorized shares available for issuance     100,000       250,000
Award vesting period     3 years        
Award expiration period     10 years        
Number of additional authorized shares issued             150,000
Stock Compensation Plans (Details Narrative 1) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Total fair value of vested awards $ 23,351 $ 19,127 $ 20,956
Closing stock price (in dollars per share) $ 36.98    
Total unrecognized compensation cost related to unvested share-based compensation awards $ 52,590    
Employee Stock Purchase Plan [Member]      
Maximum number of authorized shares available for issuance 6,000,000    
Number of additional authorized shares issued 2,000,000    
Purchase price of common stock (fair market value of the stock on the date of purchase) 85.00%    
Purchase price of common stock (fair market value on the first day of the ESPP period) 85.00%    
Number of shares purchased 488,753 349,982 395,220
Total shares purchase price $ 16,789 $ 14,634 $ 12,181
Number of shares available for future issuance 2,000,628    
Stock Option & Stock Appreciation Rights [Member]      
Outstanding awards aggregate intrinsic values $ 207    
Exercisable awards aggregate intrinsic values 207    
Aggregate intrinsic values 3,714 18,885 13,114
Restricted Stock Units [Member]      
Outstanding awards aggregate intrinsic values 61,259    
Aggregate intrinsic values $ 20,787 $ 28,119 $ 27,007
Earnings Per Share (Details Narrative) - shares
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Earnings Per Share [Abstract]      
Number of anti-dilutive equity awards 4,087 2,240 5,475
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Numerator:                      
Numerator for basic and diluted net income per share - net income $ 132,383 $ 119,299 $ 137,753 $ 66,793 $ 210,245 $ (146,834) $ 181,983 $ 118,818 $ 456,227 $ 364,211 $ 612,412
Denominator:                      
Denominator for basic net income per share - weighted-average common shares                 190,631 193,106 195,411
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units                 476 1,059 928
Denominator for diluted net income per share - adjusted weighted-average common shares                 191,107 194,165 196,339
Basic net income per share (in dollars per share) $ 0.70 $ 0.63 $ 0.72 $ 0.35 $ 1.10 $ (0.76) $ 0.94 $ 0.61 $ 2.39 $ 1.89 $ 3.13
Diluted net income per share (in dollars per share)                 $ 2.39 $ 1.88 $ 3.12
Share Repurchase Plan (Details Narrative) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 13, 2015
Feb. 15, 2013
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Equity [Abstract]          
Stock repurchase program, authorized amount $ 300,000 $ 300,000      
Stock repurchase program, expiration date Dec. 31, 2016 Dec. 31, 2014      
Stock issued for repurchase program, shares     3,148,901 4,369,360 1,376,500
Stock issued for repurchase program, value     $ 131,413 $ 241,578 $ 58,422
Accumulated Other Comprehensive Income (Details)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
USD ($)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]  
Beginning Balance $ 20,874
Other comprehensive income before reclassification $ (34,981)
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive income $ (34,981)
Ending Balance (14,107)
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Roll Forward]  
Beginning Balance (13,031) [1]
Other comprehensive income before reclassification $ 7,754 [1]
Amounts reclassified from accumulated other comprehensive income [1]
Net current-period other comprehensive income $ 7,754 [1]
Ending Balance (5,277) [1]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]  
Beginning Balance (5,272) [2]
Other comprehensive income before reclassification (5,599) [2]
Amounts reclassified from accumulated other comprehensive income (173) [2]
Net current-period other comprehensive income (5,772) [2]
Ending Balance (11,044) [2]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]  
Beginning Balance 2,571
Other comprehensive income before reclassification (32,826)
Amounts reclassified from accumulated other comprehensive income (173)
Net current-period other comprehensive income (33,999)
Ending Balance $ (30,428)
[1] Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than-temporarily impaired.
[2] Represents the change in unrealized gains (losses) on investment securities that have not been determined to be other-than-temporarily impaired.
Accumulated Other Comprehensive Income (Details 1) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Other income (expense) $ 17,606 $ 33,119 $ 79,526
Income tax (provision) benefit (110,960) $ (359,534) $ (41,146)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]      
Other income (expense) 54    
Income tax (provision) benefit 119    
Net of tax $ 173    
Selected Quarterly Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Quarterly Financial Information Disclosure [Abstract]                      
Net sales $ 781,358 $ 679,690 $ 773,830 $ 585,394 $ 803,306 $ 706,283 $ 777,848 $ 583,221 $ 2,820,270 [1] $ 2,870,658 [1] $ 2,631,851 [1]
Gross profit 413,143 362,190 419,250 344,122 430,848 398,246 444,485 330,834 1,538,704 1,604,412 1,407,300
Net income $ 132,383 $ 119,299 $ 137,753 $ 66,793 $ 210,245 $ (146,834) $ 181,983 $ 118,818 $ 456,227 $ 364,211 $ 612,412
Basic net income per share $ 0.70 $ 0.63 $ 0.72 $ 0.35 $ 1.10 $ (0.76) $ 0.94 $ 0.61 $ 2.39 $ 1.89 $ 3.13
[1] The U.S. is the only country which constitutes greater than 10% of net sales to external customers.
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period $ 66,823 $ 112,109 $ 98,080
Additions Charged to Costs and Expenses $ 21,158 $ 28,899 $ 41,924
Additions Charged to Other Accounts
Deductions $ (25,324) $ (74,185) $ (27,895)
Balance at End of Period 62,657 66,823 112,109
Allowance for doubtful accounts [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period 18,330 20,367  
Additions Charged to Costs and Expenses $ (2,521) $ 66 $ 1,553
Additions Charged to Other Accounts
Deductions $ (2,004) $ (2,103) $ (1,768)
Balance at End of Period 13,805 18,330 20,367
Inventory reserve [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period 37,135 28,381  
Additions Charged to Costs and Expenses $ 23,257 $ 25,903 $ 20,891
Additions Charged to Other Accounts
Deductions $ (14,321) $ (17,149) $ (18,615)
Balance at End of Period 46,071 37,135 28,381
Deferred tax asset valuation allowance [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period 11,358 63,361  
Additions Charged to Costs and Expenses $ 422 $ 2,930 $ 19,480
Additions Charged to Other Accounts
Deductions $ (8,999) $ (54,933) $ (7,512)
Balance at End of Period $ 2,781 $ 11,358 $ 63,361