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Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2016
Feb. 17, 2017
Jun. 25, 2016
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. 31, 2016    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Large Accelerated Filer    
Entity Public Float     $ 4,939,741,064
Entity Common Stock, Shares Outstanding   198,077,418  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2016    
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2016
Dec. 26, 2015
Current assets:    
Cash and cash equivalents $ 846,883 $ 833,070
Marketable securities (Note 3) 266,952 215,161
Accounts receivable, less allowance for doubtful accounts of $14,669 in 2016 and $13,805 in 2015 527,062 531,481
Inventories, net 484,821 500,554
Deferred costs 47,395 49,176
Prepaid expenses and other current assets 89,903 81,645
Total current assets 2,263,016 2,211,087
Property and equipment, net    
Land and improvements 104,740 85,162
Building and improvements 376,916 351,778
Office furniture and equipment 222,439 206,025
Manufacturing equipment 129,526 131,055
Engineering equipment 124,979 113,690
Vehicles 21,259 20,939
Property plant and equipment, gross 979,859 908,649
Accumulated depreciation (496,981) (462,560)
Property plant and equipment, net 482,878 446,089
Restricted cash (Note 4) 113 259
Marketable securities (Note 3) 1,213,285 1,343,387
Noncurrent deferred income tax (Note 6) 110,293 116,518
Noncurrent deferred costs 56,151 38,769
Intangible assets, net 305,002 245,552
Other assets 94,395 97,730
Total assets 4,525,133 4,499,391
Current liabilities:    
Accounts payable 172,404 178,905
Salaries and benefits payable 88,818 70,601
Accrued warranty costs 37,233 30,449
Accrued sales program costs 80,953 67,613
Deferred revenue 146,564 164,982
Accrued royalty costs 36,523 30,310
Accrued advertising expense 37,440 33,547
Other accrued expenses 70,469 74,926
Income taxes payable 16,163 21,674
Dividend payable 96,168 192,991
Total current liabilities 782,735 865,998
Deferred income taxes (Note 6) 61,220 56,210
Non-current income taxes 121,174 101,689
Non-current deferred revenue 140,407 128,731
Other liabilities 1,594 1,637
Stockholders' equity:    
Shares, CHF 0.10 par value, 198,077 shares authorized and issued, and 188,592 shares outstanding at December 31, 2016; Shares, CHF 10.00 par value, 208,077 shares authorized and issued; 189,722 shares outstanding at December 26, 2015; (Notes 9, 10, and 11): 17,979 1,797,435
Additional paid-in capital 1,836,047 62,239
Treasury stock (455,964) (414,637)
Retained earnings 2,056,702 1,930,517
Accumulated other comprehensive income (loss) (36,761) (30,428)
Total stockholders' equity 3,418,003 3,345,126
Total liabilities and stockholders' equity $ 4,525,133 $ 4,499,391
Consolidated Balance Sheets (Parenthetical)
$ in Thousands
Dec. 31, 2016
USD ($)
shares
Dec. 31, 2016
SFr / shares
Dec. 26, 2015
USD ($)
shares
Dec. 26, 2015
SFr / shares
Statement of Financial Position [Abstract]        
Allowance for doubtful accounts | $ $ 14,669   $ 13,805  
Common shares, par value (in swiss francs per share) | SFr / shares   SFr 0.10   SFr 10.00
Common shares, authorized 198,077   208,077  
Common shares, issued 198,077   208,077  
Common shares, outstanding 188,565   189,722  
Consolidated Statements of Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Income Statement [Abstract]      
Net sales [1] $ 3,018,665 $ 2,820,270 $ 2,870,658
Cost of goods sold 1,339,095 1,281,566 1,266,246
Gross profit 1,679,570 1,538,704 1,604,412
Advertising expense 177,143 167,166 146,633
Selling, general and administrative expenses 410,558 394,914 372,032
Research and development expense 467,960 427,043 395,121
Total operating expense 1,055,661 989,123 913,786
Operating income 623,909 549,581 690,626
Other income (expense):      
Interest income 33,406 29,653 35,584
Foreign currency losses (31,651) (23,465) (4,299)
Other 4,006 11,418 1,834
Total other income (expense) 5,761 17,606 33,119
Income before income taxes 629,670 567,187 723,745
Income tax provision (benefit): (Note 6)      
Current 117,842 114,222 274,107
Deferred 1,014 (3,262) 85,427
Income tax provision 118,856 110,960 359,534
Net income $ 510,814 $ 456,227 $ 364,211
Basic net income per share (Note 10) (in dollars per share) $ 2.71 $ 2.39 $ 1.89
Diluted net income per share (Note 10) (in dollars per share) $ 2.70 $ 2.39 $ 1.88
[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. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Statement of Comprehensive Income [Abstract]      
Net income $ 510,814 $ 456,227 $ 364,211
Foreign currency translation adjustment 4,696 (34,981) (64,489)
Change in fair value of available-for-sale marketable securities, net of deferred taxes (11,029) 1,982 29,019
Comprehensive income $ 504,481 $ 423,228 $ 328,741
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. 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
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 510,814 510,814
Translation adjustment 4,696 4,696
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects (11,029) (11,029)
Comprehensive income           504,481
Dividends declared (384,629) (384,629)
Tax benefit from issuance of equity awards (6,309) (6,309)
Issuance of treasury stock related to equity awards (40,589) 59,237 18,648
Stock compensation 41,250 41,250
Purchase of treasury stock related to equity awards (7,331) (7,331)
Purchase of treasury stock under share repurchase plan (93,233) (93,233)
Reduction in par value of Common Stock (1,779,456) 1,779,456
Balance at end at Dec. 31, 2016 $ 17,979 $ 1,836,047 $ (455,964) $ 2,056,703 $ (36,761) $ 3,418,003
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Statement of Stockholders' Equity [Abstract]      
Adjustment related to unrealized gains (losses) on available-for-sale securities income tax effects $ 1,094 $ 115 $ 201
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Operating Activities:      
Net income $ 510,814 $ 456,227 $ 364,211
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 55,796 51,311 48,433
Amortization 30,544 27,049 28,582
Gain on sale of property and equipment (503) (198) (306)
Provision for doubtful accounts 4,136 (2,521) 66
Provision for obsolete and slow-moving inventories 26,458 23,257 25,903
Unrealized foreign currency losses (gains) 13,387 37,931 573
Deferred income taxes 1,699 5,897 89,828
Stock compensation 41,250 26,290 24,293
Realized gains on marketable securities (822) (55) (505)
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable 9,000 22,473 (27,398)
Inventories (2,455) (121,718) (76,491)
Other current and non-current assets 2,234 (107,360) 627
Accounts payable (11,496) 36,079 8,981
Other current and non-current liabilities 44,766 20,742 16,467
Deferred revenue (6,363) (43,338) (87,543)
Deferred costs (15,780) (585) 11,029
Income taxes payable 3,017 (151,014) 95,961
Net cash provided by operating activities 705,682 280,467 522,711
Investing activities:      
Purchases of property and equipment (90,960) (80,592) (73,339)
Proceeds from sale of property and equipment 676 7,921 748
Purchase of intangible assets (5,715) (3,889) (4,720)
Purchase of marketable securities (905,089) (915,921) (1,006,482)
Redemption of marketable securities 957,350 919,141 1,096,676
Proceeds from repayment of loan receivable 137,379
Acquisitions, net of cash acquired (77,945) (38,687) (18,871)
Change in restricted cash 146 48 (59)
Net cash provided by (used in) investing activities (121,537) (111,979) 131,332
Financing activities:      
Dividends (481,452) (378,117) (360,075)
Tax benefit from issuance of equity awards 1,692 (2,049) (84)
Proceeds from issuance of treasury stock related to equity awards 18,648 17,073 20,753
Purchase of treasury stock related to equity awards (7,331) (5,586) (18,638)
Purchase of treasury stock under share repurchase plan (93,233) (131,413) (241,578)
Net cash used in financing activities (561,676) (500,092) (599,622)
Effect of exchange rate changes on cash and cash equivalents (8,656) (31,594) (37,302)
Net increase (decrease) in cash and cash equivalents 13,813 (363,198) 17,119
Cash and cash equivalents at beginning of year 833,070 1,196,268 1,179,149
Cash and cash equivalents at end of year 846,883 833,070 1,196,268
Supplemental disclosures of cash flow information      
Cash paid during the year for income taxes 115,548 252,885 175,465
Cash received during the year from income tax refunds 4,275 3,793 5,260
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) (12,123) 1,867 29,220
Fair value of assets acquired 91,620 38,687 22,735
Liabilities assumed (6,344) (3,718)
Less:cash acquired (7,331) (146)
Cash paid for acquisitions, net of cash acquired $ 77,945 $ 38,687 $ 18,871
Description of the Business
12 Months Ended
Dec. 31, 2016
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. 31, 2016
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.

 

At the Company’s Annual General Meeting on June 10, 2016, the Company’s shareholders approved the cancellation of 10,000,000 registered shares of the Company held by the Company (the “Formation Shares”) and the reduction in par value of each share of the Company from CHF 10 to CHF 0.10 and the amendment of the Company’s Articles of Association to effect a corresponding share capital reduction.

 

Fiscal Year

 

The Company’s fiscal year is based on 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 53-week fiscal years, and the associated 14-week fourth quarters, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. Fiscal years 2015 and 2014 included 52 weeks while fiscal 2016 included 53 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 currency translation adjustments of ($9,411) and ($14,107) as of December 31, 2016 and December 26, 2015, 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 on operating income when the currencies move congruently against the U.S. Dollar due to the use of the Taiwan Dollar for manufacturing costs while the Euro and British Pound Sterling transactions relate primarily to revenue. Foreign currency losses recorded in results of operations were $31,651, $23,465, and $4,299, for the years ended December 31, 2016, December 26, 2015, and December 27, 2014, respectively. The loss in fiscal 2016 was due primarily to the USD weakening against the Taiwan Dollar and the USD strengthening against the Euro and British Pound Sterling. The loss in fiscal 2015 was due primarily to the USD strengthening against the Euro and British Pound Sterling, 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.

 

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 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 2014. None of the Company’s customers accounted for more than or equal to 10% of consolidated net sales in the years ended December 31, 2016, December 26, 2015 and December 27, 2014.

 

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. The Company 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 31, 2016     December 26, 2015  
             
Raw Materials   $ 162,882     $ 203,173  
Work-in-process     68,602       69,690  
Finished goods     293,789       273,762  
Inventory Reserves     (40,452 )     (46,071 )
Inventory, net of reserves   $ 484,821     $ 500,554  

 

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 performs its annual goodwill and intangible asset impairment tests in the fourth quarter of each year. If the carrying amount of a reporting unit exceeds its fair value as determined by a discounted cash flow model in step one of the impairment analysis, the second step of the analysis will be performed. Each of the Company’s operating segments (auto PND, auto OEM, aviation, marine, outdoor, and fitness) represents a distinct reporting unit. The Company did not recognize any material goodwill or intangible asset impairment charges in 2016, 2015, or 2014, and step two was not considered necessary in any of those periods as fair value was substantially in excess of the carrying amount for all reporting units in the respective periods.

 

As noted above, the PND market has declined as competing technologies have emerged and market saturation has occurred. This has resulted in, and is expected to continue to result in, periods of lower revenues and profits for the Company’s auto PND reporting unit. Consequently, if operating results and/or market conditions deteriorate significantly faster or more drastically than the forecasts utilized in our estimation of fair value, the goodwill associated with the Company’s auto PND reporting unit may be at risk of impairment in the future.

 

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 three to ten years.

 

Dividends

 

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

 

On June 10, 2016, the shareholders approved a dividend of $2.04 per share (of which, $1.53 was paid in the Company’s 2016 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, 2016   June 16, 2016   $ 0.51  
September 30, 2016   September 15, 2016   $ 0.51  
December 30, 2016   December 14, 2016   $ 0.51  
March 31, 2017   March 15, 2017   $ 0.51  

 

The Company paid dividends in 2016 in the amount of $481,452. Both the dividends paid and the remaining dividend payable were reported as a reduction of retained earnings.

 

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 16, 2016   $ 0.51  

 

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

 

As of December 31, 2016 and December 26, 2015, approximately $304,674 of retained earnings was indefinitely restricted from distribution to stockholders pursuant to the laws of Taiwan.

 

Intangible Assets

 

At December 31, 2016 and December 26, 2015, the Company had patents, customer related intangibles and other identifiable finite-lived intangible assets recorded at a cost of $253,472 and $216,465, respectively. Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis over three to ten years. Accumulated amortization was $173,023 and $158,704 at December 31, 2016 and December 26, 2015, respectively. Amortization expense on these intangible assets was $14,319, $7,115, and $8,362 for the years ended December 31, 2016, December 26, 2015, and December 27, 2014, respectively. In the next five years, the amortization expense is estimated to be $15,727, $14,502, $11,798, $9,301, and $4,931, respectively.

 

The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $224,553 at December 31, 2016 and $187,791 at December 26, 2015.

 

    December 31,
2016
    December 26,
2015
 
Goodwill balance at beginning of year   $ 187,791     $ 178,638  
Acquisitions     38,061       11,908  
Finalization of purchase price allocations and effect of foreign currency translation     (1,299 )     (2,755 )
Goodwill balance at end of year   $ 224,553     $ 187,791  

 

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 31, 2016. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of tax, reported in other comprehensive income (loss). At December 31, 2016 and December 26, 2015, cumulative unrealized net losses of $27,350 and $16,321, 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 accounts for uncertainty in income taxes in accordance with the FASB ASC 740 topic Income Taxes.  The Company recognizes 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 the Company determines the liabilities are no longer necessary. If the Company’s 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

 

The Company 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 the Company’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.

 

The Company 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, the Company 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 as stand-alone and unbundled unit sales do not occur on more than a limited basis. Therefore, the Company uses the royalty cost plus a normal margin as the primary indicator to calculate relative selling prices of the LMU and traffic elements.

 

For multiple-element software arrangements that do not include a tangible product, the Company allocates revenue to the various elements based on VSOE. When VSOE cannot be established for undelivered elements, all revenue is deferred until the earlier point at which all elements of the arrangement are delivered or sufficient VSOE does exist, unless the only undelivered element is post-contract customer support. If the only undelivered element is post-contract customer support, the entire arrangement consideration is recognized ratably over the support period. The Company offers navigation software licenses to certain customers, bundled with map updates to be provided periodically over the support period. The Company has determined sufficient VSOE of similar map updates does not exist for certain arrangements, and therefore revenue from these transactions is recognized ratably over the contractual map update period.

 

The Company records revenue net of sales tax, trade discounts and customer returns.  The Company 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 the Company’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, the Company may take actions to increase customer incentive offerings, possibly resulting in an incremental reduction of revenue at the time the incentive is offered.

 

Deferred Revenues and Costs

 

At December 31, 2016 and December 26, 2015, the Company had deferred revenues totaling $286,971 and $293,713, respectively, and related deferred costs totaling $103,546 and $87,945, respectively.

 

The deferred revenues and costs are recognized over their estimated economic lives, typically 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 $99,169, $49,605, $23,027, $8,255, and $3,369, 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 installationThe 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 the Company 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 31,     December 26,     December 25,  
    2016     2015     2014  
                   
Balance - beginning of period   $ 30,449     $ 27,609     $ 26,767  
Accrual for products sold(1)     61,578       44,620       44,423  
Expenditures     (54,794 )     (41,780 )     (43,581 )
Balance - end of period   $ 37,233     $ 30,449     $ 27,609  

 

  (1) 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 $177,143, $167,166, and $146,633, for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, 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 $467,960, $427,043, and $395,121, for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, 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 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 (“ASU”) 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. 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. Additional updates to Topic 606 issued by the FASB in 2015 and 2016 include the following:

 

  ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which defers the effective date of the new guidance such that the new provisions will now be required for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company does not intend to early adopt, and adoption will therefore occur in the fiscal year ending December 28, 2018.
  ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations (reporting revenue gross versus net).
 
  ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”), which clarifies the implementation guidance on identifying performance obligations and classifying licensing arrangements
  ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which clarifies the implementation guidance in a number of other areas.
  ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”), which affects narrow aspects of Topic 606 such as providing incremental guidance around contract costs.

 

We currently anticipate we will adopt the new revenue standards using the full retrospective method to restate each prior reporting period presented. Our decision to adopt using the full retrospective method is dependent on the finalization of our analysis of information necessary to restate prior period financial statements.

We continue to make progress in evaluating all potential impacts of adopting the new revenue standards on the Company’s consolidated financial statements, the materiality of which is not yet known. This evaluation includes monitoring the work of standard setters, including any impacts from the recently issued amendments, and considering the interpretive efforts of non-authoritative groups.

Refer to the discussion above regarding the Company’s current revenue recognition policies. Adoption of the new standards is expected to affect the manner in which the Company determines the unit of account for certain products (i.e. performance obligations), as well as the allocation of consideration (i.e. revenue) to certain obligations. We have completed our grouping of the Company’s homogenous revenue streams and are continuing to specify and allocate consideration to the associated obligations.

 

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.

 

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to present a right-of-use asset and a corresponding lease liability on the balance sheet. Lessor accounting is substantially unchanged compared to the current accounting guidance. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.

 

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended to simplify the accounting for share-based payment awards. The standard includes provisions addressing income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company does not intend to early adopt ASU 2016-09, rather, adoption will occur in the fiscal year ending December 30, 2017. ASU 2016-09 requires that tax effects from stock-based compensation be recognized in the income tax provision, as these amounts are currently recognized in additional paid-in capital. The Company believes this aspect of the standard may have a material effect on the income tax provision within the consolidated statements of income in future periods. Furthermore, under ASU 2016-09, excess income tax benefits from stock-based compensation arrangements are classified as a cash flow from operations, rather than as a cash flow from financing activities. The Company will apply both changes prospectively. The Company is currently unable to reasonably estimate the impact of these changes due to the dependency of these items on the underlying share price of the Company.

 

In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The standard addresses eight specific cash flow issues with the objective of reducing diversity in practice. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.

 

In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which narrows the scope of Topic 805 by revising the definition of a business. When substantially all of the fair value of gross assets acquired or disposed of is concentrated in a single asset (or group of similar assets), the asset(s) would not represent a business in the context of Topic 805. ASU 2017-01 should be applied prospectively and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the adoption of the new provisions to have a material impact on its consolidated financial statements.

 

In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangible – Goodwill and Other (Topic 350): Simplify the Test for Goodwill Impairment (“ASU 2017-04”) which simplifies the accounting for goodwill impairment. ASU 2017-04 removes Step 2 of the goodwill impairment test, such that a goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. ASU 2017-04 should be applied prospectively and is effective for fiscal years, or any goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Company does not expect the adoption of the new provisions to have a material impact on its consolidated financial statements.

Marketable Securities
12 Months Ended
Dec. 31, 2016
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. Valuation is 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.

 

The method 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 fair value on a recurring basis are summarized below:

 

    Fair Value Measurements as
of December 31, 2016
 
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 29,034     $ -     $ 29,034     $ -  
Agency securities     59,541       -       59,541       -  
Mortgage-backed securities     230,823       -       230,823       -  
Corporate securities     893,725       -       893,725       -  
Municipal securities     176,168       -       176,168       -  
Other     90,946       -       90,946       -  
Total   $ 1,480,237     $ -     $ 1,480,237     $ -  

 

    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     $ -  

 

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

 

    Available-For-Sale Securities as
of December 31, 2016
 
    Amortized Cost     Gross Unrealized
Gains
    Gross Unrealized
Losses- OTTI (1)
    Gross Unrealized
Losses- Other (2)
    Fair Value  
U.S. Treasury securities   $ 29,291     $ 31     $ -     $ (288 )   $ 29,034  
Agency securities     60,513       19       -       (991 )     59,541  
Mortgage-backed securities     236,354       41       -       (5,572 )     230,823  
Corporate securities     914,028       252       -       (20,555 )     893,725  
Municipal securities     178,804       224       -       (2,859 )     176,169  
Other     90,934       20       -       (9 )     90,945  
Total   $ 1,509,924     $ 587     $ -     $ (30,274 )   $ 1,480,237  

 

    Available-For-Sale Securities as
of December 26, 2015
 
    Amortized Cost     Gross Unrealized
Gains
    Gross Unrealized
Losses- OTTI(1)
    Gross Unrealized
Losses- Other(2)
    Fair Value  
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  

 

  (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.

 

The Company’s investment policy targets low risk investments 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 a security before recovery of its amortized cost basis, 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.  During 2016 and 2015, the Company did not record any material impairment charges on its outstanding securities.

 

The amortized cost and fair value of the securities at an unrealized loss position at December 31, 2016 were $1,283,018 and $1,252,744 respectively. Approximately 64.7% of securities in our portfolio were at an unrealized loss position at December 31, 2016. 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 material deterioration in credit quality and no change in the cash flows of the underlying securities. We do not intend to sell the securities and it is not more likely than not that we will be required to sell the securities; therefore, no material 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 tables display 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 31, 2016 and December 26, 2015.

 

    As of December 31, 2016  
    Less than 12 Consecutive Months     12 Consecutive Months or Longer  
    Gross Unrealized
Losses
    Fair Value     Gross Unrealized
Losses
    Fair Value  
U.S. Treasury securities   $ (288 )   $ 24,260     $ -     $ -  
Agency securities     (991 )     49,255       -       -  
Mortgage-backed securities     (3,702 )     159,665       (1,870 )     64,645  
Corporate securities     (18,856 )     765,712       (1,699 )     40,910  
Municipal securities     (2,762 )     130,994       (97 )     6,326  
Other     (3 )     4,058       (6 )     6,919  
Total   $ (26,602 )   $ 1,133,944     $ (3,672 )   $ 118,800  

 

    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  

 

The amortized cost and fair value of marketable securities at December 31, 2016, 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.

 

    Amortized Cost     Fair Value  
             
Due in one year or less   $ 267,115     $ 266,952  
Due after one year through five years     979,546       963,898  
Due after five years through ten years     256,691       243,052  
Due after ten years     6,572       6,335  
    $ 1,509,924     $ 1,480,237  
Commitments and Contingencies
12 Months Ended
Dec. 31, 2016
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 $19,657, $18,104, and $19,559 for the years ended December 31, 2016, December 26, 2015, and December 27, 2014, respectively. The Company recognizes rental expense on a straight-line basis over the lease term.

 

Future minimum lease payments are as follows:

 

Year   Amount  
2017   $ 15,229  
2018     12,760  
2019     9,243  
2020     7,897  
2021     7,008  
Thereafter     21,168  
Total   $ 73,305  

 

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 $113 and $259 at December 31, 2016 and December 26, 2015, 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 31, 2016 was approximately $403,059. 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 fulfilled by our suppliers, contract manufacturers, and logistics providers 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 alleging 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 31, 2016. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. Although management considers the likelihood to be remote, an adverse resolution of one or 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 31, 2016 that did not individually or in the aggregate have a material adverse impact on the Company’s financial condition or results of operations.

Employee Benefit Plans
12 Months Ended
Dec. 31, 2016
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. During the years ended December 31, 2016, December 26, 2015, and December 27, 2014, expense related to these and other defined contribution plans of $40,844, $37,489, and $29,267, 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 31, 2016, December 26, 2015, and December 27, 2014 were significant.

Income Taxes
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

6. Income Taxes

 

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

 

    Fiscal Year Ended  
    December 31,     December 26,     December 27,  
    2016     2015     2014  
Federal:                  
Current   $ 66,627     $ 49,138     $ (18,665 )
Deferred     5,343       4,216       58,164  
    $ 71,970     $ 53,354     $ 39,499  
State:                        
Current     8,809       9,354       5,575  
Deferred     (3,823 )     (5,858 )     4,368  
    $ 4,986     $ 3,496     $ 9,943  
Foreign:                        
Current     42,406       55,730       287,197  
Deferred     (506 )     (1,620 )     22,895  
    $ 41,900     $ 54,110     $ 310,092  
Total   $ 118,856     $ 110,960     $ 359,534  

 

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 31,     December 26,     December 27,  
    2016     2015     2014  
Federal income tax expense at U.S. statutory rate   $ 220,385     $ 198,516     $ 253,260  
State income tax expense, net of federal tax effect     2,749       1,931       6,463  
Foreign tax rate differential     (111,989 )     (100,010 )     (154,338 )
Taiwan tax holiday benefit     (2,032 )     (3,488 )     (3,147 )
Other foreign taxes less incentives and credits     (16,593 )     (8,592 )     5,947  
Withholding Tax     17,447       16,969       21,039  
Intercompany Restructuring     -       -       307,635  
Net Change in Uncertain Tax Positions     17,328       21,246       (67,231 )
Federal Domestic Production Activities Deduction     (5,528 )     (4,589 )     (3,606 )
Federal Research and Development Credit     (8,548 )     (8,573 )     (8,373 )
Other, net     5,637       (2,450 )     1,885  
Income tax expense   $ 118,856     $ 110,960     $ 359,534  

  

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, the Company recorded tax expense of $307,635. Approximately $265,000 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’s 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 2016 as presented above, the amounts related to tax at the statutory rate would be $171,000 lower, or $49,000, and the foreign tax rate differential would be adjusted by a similar amount to $55,000. For 2015, the amounts related to tax at the statutory rate would be approximately $154,000 lower, or $44,000, and the foreign tax rate differential would be adjusted by a similar amount to approximately $52,000. For 2014, the amount related to tax at the statutory rate would be approximately $197,000 lower, or $57,000, and the foreign tax differential would be reduced by a similar amount to approximately $44,000. All other amounts would remain substantially unchanged.

 

The Company’s income before income taxes attributable to non-U.S. operations was $453,729, $403,242, and $546,790, for the years ended December 31, 2016, December 26, 2015, and December 27, 2014, respectively. The Taiwan tax holiday benefits included in the table above reflect $0.01, $0.02, and $0.02 per weighted-average common share outstanding for the years ended December 31, 2016, December 26, 2015, and December 27, 2014, 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 $22,139, $21,085, and $20,606 at December 31, 2016, December 26, 2015, and December 27, 2014, 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.

 

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 31,     December 26,  
    2016     2015  
Deferred tax assets:                
Product warranty accruals   $ 2,768     $ 2,990  
Allowance for doubtful accounts     10,100       10,323  
Inventory reserves     8,953       10,904  
Sales program allowances     1,397       1,783  
Reserve for sales returns     2,196       1,457  
Other accruals     13,548       10,799  
Share based compensation     29,632       35,360  
Tax credit carryforwards     5,012       3,906  
Amortization     15,368       20,005  
Deferred Revenue     32,487       32,809  
Net operating losses of subsidiaries     5,403       5,228  
Unrealized investment gain, net     5       -  
Benefit related to uncertain tax positions     7,542       5,546  
Other     4,000       4,106  
Valuation allowance related to loss carryforward and tax credits     (4,622 )     (2,781 )
    $ 133,789     $ 142,435  
Deferred tax liabilities:                
Depreciation     17,854       18,029  
Prepaid Expenses     2,876       2,821  
Book basis in excess of tax basis for acquired entities     3,865       1,307  
Unrealized investment loss, net     -       3,198  
Withholding tax     58,597       54,865  
Other     1,523       1,907  
      84,715       82,127  
Net deferred tax assets   $ 49,074     $ 60,308  

 

Included in the share based compensation deferred tax asset of $29,632 are stock options that 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 increase to income tax expense.

 

At December 31, 2016, the Company had $5,012 of tax credit carryover compared to $3,906 at December 26, 2015.

 

At December 31, 2016, the Company had a deferred tax asset of $5,403 related to the future tax benefit on net operating loss (NOL) carryforwards of $35,843. Included in the NOL carryforwards is $22,968 that relates to Switzerland and expires in 2023, $1,462 that relates to Finland and expires in varying amounts between 2025 and 2026, $1,991 that relates to the United States and expires in varying amounts between 2035 and 2036, and $9,422 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 31, 2016 was $115,090. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for years ended December 31, 2016, December 26, 2015, and December 27, 2014 is as follows:

 

    December 31,     December 26,     December 27,  
    2016     2015     2014  
Balance beginning of year   $ 97,904     $ 77,495     $ 133,015  
Additions based on tax positions related to prior years     489       89       2,889  
Reductions based on tax positions related to prior years     (940 )     (1,671 )     (60,967 )
Additions based on tax positions related to current period     28,859       29,019       39,115  
Reductions related to settlements with tax authorities     (134 )     (364 )     (401 )
Expiration of statute of limitations     (11,088 )     (6,664 )     (36,156 )
Balance at end of year   $ 115,090     $ 97,904     $ 77,495  

 

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 $109,667, $93,654 and $74,205 are required to be classified as non-current at December 31, 2016, December 26, 2015, and December 27, 2014, 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 31, 2016, December 26, 2015, and December 27, 2014, the Company had accrued approximately $3,901, $2,479, and $2,159, respectively, for interest. The interest component of the reserve increased (decreased) income tax expense for the years ending December 31, 2016, December 26, 2015, and December 27, 2014, by $1,422, $320, and ($2,953), 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 2010 and prior. The Company is no longer subject to United Kingdom tax examinations by tax authorities for years 2013 and prior. The Company is no longer subject to Switzerland tax examinations by tax authorities for years 2011 and prior.

 

The Company recognized a reduction of income tax expense of $11,151, $6,971, and $83,006 in fiscal years ended December 31, 2016, December 26, 2015, and December 27, 2014, 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 $15,000 to $20,000 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. 31, 2016
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 31, 2016     December 26, 2015  
    Carrying     Fair     Carrying     Fair  
    Amount     Value     Amount     Value  
Cash and cash equivalents   $ 846,883     $ 846,883     $ 833,070     $ 833,070  
Restricted cash     113       113       259       259  
Marketable securities   1,480,237       1,480,237       1,558,548     1,558,548  

 

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. 31, 2016
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 all years presented. 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. In 2016 the Company moved action camera related revenue 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 overall impact of the move was immaterial. However, action camera related operating results for the 52-weeks ended December 26, 2015 and December 27, 2014 have been recast to conform to the current year presentation.

 

    Reportable Segments  
                                     
    Outdoor     Fitness     Marine     Auto     Aviation     Total  
53-Weeks Ended December 31, 2016                                                
                                                 
Net sales   $ 546,326     $ 818,486     $ 331,947     $ 882,558     $ 439,348     $ 3,018,665  
Gross profit     340,504       437,205       183,709       388,747       329,405       1,679,570  
Operating income     184,035       160,596       52,167       102,347       124,764       623,909  
                                                 
52-Weeks Ended December 26, 2015                                                
                                                 
Net sales   $ 411,184     $ 661,599     $ 286,778     $ 1,062,091     $ 398,618     $ 2,820,270  
Gross profit     254,878       366,139       158,493       464,480       294,714       1,538,704  
Operating income     139,070       134,574       28,611       136,069       111,257       549,581  
                                                 
52-Weeks Ended December 27, 2014                                                
                                                 
Net sales   $ 409,847     $ 568,440     $ 248,371     $ 1,258,085     $ 385,915     $ 2,870,658  
Gross profit     266,659       358,287       129,710       569,343       280,413       1,604,412  
Operating income     156,059       190,682       26,232       210,675       106,978       690,626  

 

Net sales, long-lived assets (property and equipment), and net assets by geographic area are as shown below for the years ended December 31, 2016, December 26, 2015, and December 27, 2014. Note that APAC refers to the Asia Pacific region, and EMEA includes Europe, the Middle East and Africa.

 

    Americas     APAC     EMEA     Total  
December 31, 2016                                
Net sales to external customers (1)   $ 1,518,934     $ 386,549     $ 1,113,182     $ 3,018,665  
Property and equipment, net     300,158       144,470       38,250       482,878  
Net assets (2)     2,153,161       933,999       330,843       3,418,003  
                                 
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       111,700       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  

 

(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. 31, 2016
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 2016, 2015, and 2014, 12,984, 12,008, and 7,120 RSUs 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 vested or are vesting 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 Company’s achievement of certain financial performance goals. During 2016, 2015, and 2014, 1,228,427, 1,171,905, and 425,347 RSUs were granted under the 2005 Plan. No SARs were granted under the 2005 Plan in 2016 and 2015. During 2014, 47,095 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 2016, 2015, or 2014.

 

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 31, 2016, December 26, 2015 and December 27, 2014 is provided below:

 

    Stock Options and SARs  
    Weighted-Average        
    Exercise Price     Number of Shares  
          (In Thousands)  
             
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  
Granted             0  
Exercised   $ 50.77       (716 )
Forfeited/Expired   $ 51.12       (608 )
Outstanding at December 31, 2016   $ 74.48       2,737  
Exercisable at December 31, 2016   $ 74.97       2,684  
Expected to vest after December 31, 2016   $ 49.69       53  

 

Stock Options and SARs as of December 31, 2016
Exercise   Awards     Remaining     Awards  
Price   Outstanding     Life (Years)     Exercisable  
    (In Thousands)           (In Thousands)  
                   
$18.00 - $40.00     49       4.14       49  
$40.01 - $60.00     758       2.35       705  
$60.01 - $80.00     940       0.43       940  
$80.01 - $100.00     3       0.94       3  
$100.01 - $120.00     985       0.92       985  
$120.01 - $140.00     2       0.74       2  
      2,737       1.21       2,684  

 

    Restricted Stock Units  
    Weighted-Average        
    Grant Date Fair Value     Number of Shares  
          (In Thousands)  
             
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  
Granted   $ 40.59       1,241  
Released/Vested   $ 38.96       (565 )
Cancelled   $ 44.57       (509 )
Outstanding at December 31, 2016   $ 38.94       1,824  

 

The weighted-average remaining contract life for stock options and SARs outstanding and exercisable at December 31, 2016 was 1.21 and 1.09 years, respectively. The weighted-average remaining contract life of restricted stock units at December 31, 2016 was 1.47 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. No options or SARs were granted in 2016 or 2015.

 

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

 

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 2016, 2015, and 2014 was $22,429, $23,351, and $19,127, respectively. The aggregate intrinsic values of options and SARs outstanding and exercisable at December 31, 2016 were $942 and $884, respectively. The aggregate intrinsic values of options and SARs exercised during 2016, 2015, and 2014 were $1,632, $3,714, and $18,885, respectively. The aggregate intrinsic value of RSUs outstanding at December 31, 2016 was $88,449. The aggregate intrinsic values of RSUs released during 2016, 2015, and 2014 were $27,386, $20,787, and $28,119, 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 $48.49 on December 31, 2016. As of December 31, 2016, there was $55,802 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 2016, 2015, and 2014, 541,018, 488,753, and 349,982 shares, respectively were purchased under the plan for a total purchase price of $18,157, $16,789, and $14,634, respectively. During 2016, 2015, and 2014, the purchases were issued from treasury shares. At December 31, 2016, approximately 1,459,610 shares were available for future issuance.

Earnings Per Share
12 Months Ended
Dec. 31, 2016
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  
(In thousands, except per share information)   December 31,     December 26,     December 27,  
    2016     2015     2014  
Numerator:                  
Numerator for basic and diluted net income per share - net income   $ 510,814     $ 456,227     $ 364,211  
                         
Denominator:                        
Denominator for basic net income per share – weighted-average common shares     188,818       190,631       193,106  
                         
Effect of dilutive securities – employee stock options and stock appreciation rights     525       476       1,059  
                         
Denominator for diluted net income per share – adjusted weighted-average common shares     189,343       191,107       194,165  
                         
Basic net income per share   $ 2.71     $ 2.39     $ 1.89  
                         
Diluted net income per share   $ 2.70     $ 2.39     $ 1.88  

 

There were 3,547,738, 4,086,983, and 2,240,005 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 2016, 2015, and 2014, respectively, because the effect would have been anti-dilutive.

Share Repurchase Plan
12 Months Ended
Dec. 31, 2016
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. In December 2016, the Board of Directors authorized an extension through December 31, 2017 to purchase remaining common shares.  Under the plan, the Company repurchased 3,148,901 shares using cash of $131,413 in fiscal 2015 and 2,152,716 shares using cash of $93,233 in fiscal 2016.

 

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 4,369,360 shares using cash of $241,578 in fiscal 2014.

Accumulated Other Comprehensive Income
12 Months Ended
Dec. 31, 2016
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 31, 2016:

 

    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   $ (14,107 )   $ (5,277 )   $ (11,044 )   $         (30,428 )
Other comprehensive income before reclassification     4,696       5,277       (15,188 )     (5,215 )
Amounts reclassified from accumulated other comprehensive income     -       -       (1,118 )     (1,118 )
Net current-period other comprehensive income     4,696       5,277       (16,306 )     (6,333 )
Balance - end of period   $ (9,411 )   $ -     $ (27,350 )   $ (36,761 )

 

(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 31, 2016:

 

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   $ 822     Other income (expense)
      296     Income tax provision
    $ 1,118     Net of tax
Selected Quarterly Information (Unaudited)
12 Months Ended
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Information (Unaudited)

13. Selected Quarterly Information (Unaudited)

 

    53-Weeks Ended December 31, 2016  
    Quarter Ending  
    March 26     June 25     September 24     December 31  
                         
Net sales   $ 624,040     $ 811,609     $ 722,250     $ 860,767  
Gross profit     339,850       462,958       405,980       470,782  
Net income     88,092       161,064       125,054       136,605  
Basic net income per share   $ 0.46     $ 0.85     $ 0.66     $ 0.73  

 

    52-Weeks 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  

 

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. 31, 2016
Subsequent Events [Abstract]  
Subsequent Events

14. Subsequent Events

 

As a result of Switzerland corporate tax reform failing to pass on February 12, 2017, coupled with potential tax risk from evolving global tax initiatives, the Company has elected on February 20, 2017 to adjust certain Switzerland tax positions. The Company expects this election to result in an estimated 300 basis points increase to the fiscal year 2017 effective tax rate compared to fiscal year 2016. In addition, the Company expects to revalue certain Switzerland deferred tax assets as a result of this election, for which the Company anticipates recording approximately $150 million of income tax benefit in the first quarter of 2017.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
12 Months Ended
Dec. 31, 2016
Valuation and Qualifying Accounts [Abstract]  
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

Garmin Ltd. and Subsidiaries

(In thousands) 

 

          Additions              
    Balance at     Charged to     Charged to           Balance at  
    Beginning of     Costs and     Other           End of  
Description   Period     Expenses     Accounts     Deductions     Period  
Year Ended December 31, 2016:                                        
Deducted from asset accounts                                        
Allowance for doubtful accounts   $ 13,805     $ 4,137       -     $ (3,273 )   $ 14,669  
Inventory reserve     46,071       26,458       -       (32,077 )     40,452  
Valuation allowance - Deferred Tax Asset     2,781       1,966       -       (125 )     4,622  
Total   $ 62,657     $ 32,561       -     $ (35,475 )   $ 59,743  
                                         
Year Ended December 26, 2015:                                        
Deducted from asset accounts                                        
Allowance for doubtful accounts   $ 18,330     $ (2,521 )     -     $ (2,004 )   $ 13,805  
Inventory reserve     37,135       23,257       -       (14,321 )     46,071  
Valuation allowance - Deferred Tax Asset     11,358       422       -       (8,999 )     2,781  
Total   $ 66,823     $ 21,158       -     $ (25,324 )   $ 62,657  
                                         
Year Ended December 27, 2014:                                        
Deducted from asset accounts                                        
Allowance for doubtful accounts   $ 20,367     $ 66       -     $ (2,103 )   $ 18,330  
Inventory reserve     28,381       25,903       -       (17,149 )     37,135  
Valuation allowance - Deferred Tax Asset     63,361       2,930       -       (54,933 )     11,358  
Total   $ 112,109     $ 28,899       -     $ (74,185 )   $ 66,823  
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2016
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.

 

At the Company’s Annual General Meeting on June 10, 2016, the Company’s shareholders approved the cancellation of 10,000,000 registered shares of the Company held by the Company (the “Formation Shares”) and the reduction in par value of each share of the Company from CHF 10 to CHF 0.10 and the amendment of the Company’s Articles of Association to effect a corresponding share capital reduction.

Fiscal Year

Fiscal Year

 

The Company’s fiscal year is based on 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 53-week fiscal years, and the associated 14-week fourth quarters, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. Fiscal years 2015 and 2014 included 52 weeks while fiscal 2016 included 53 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 currency translation adjustments of ($9,411) and ($14,107) as of December 31, 2016 and December 26, 2015, 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 on operating income when the currencies move congruently against the U.S. Dollar due to the use of the Taiwan Dollar for manufacturing costs while the Euro and British Pound Sterling transactions relate primarily to revenue. Foreign currency losses recorded in results of operations were $31,651, $23,465, and $4,299, for the years ended December 31, 2016, December 26, 2015, and December 27, 2014, respectively. The loss in fiscal 2016 was due primarily to the USD weakening against the Taiwan Dollar and the USD strengthening against the Euro and British Pound Sterling. The loss in fiscal 2015 was due primarily to the USD strengthening against the Euro and British Pound Sterling, 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.

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 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 2014. None of the Company’s customers accounted for more than or equal to 10% of consolidated net sales in the years ended December 31, 2016, December 26, 2015 and December 27, 2014.

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. The Company 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 31, 2016     December 26, 2015  
             
Raw Materials   $ 162,882     $ 203,173  
Work-in-process     68,602       69,690  
Finished goods     293,789       273,762  
Inventory Reserves     (40,452 )     (46,071 )
Inventory, net of reserves   $ 484,821     $ 500,554  
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 performs its annual goodwill and intangible asset impairment tests in the fourth quarter of each year. If the carrying amount of a reporting unit exceeds its fair value as determined by a discounted cash flow model in step one of the impairment analysis, the second step of the analysis will be performed. Each of the Company’s operating segments (auto PND, auto OEM, aviation, marine, outdoor, and fitness) represents a distinct reporting unit. The Company did not recognize any material goodwill or intangible asset impairment charges in 2016, 2015, or 2014, and step two was not considered necessary in any of those periods as fair value was substantially in excess of the carrying amount for all reporting units in the respective periods.

 

As noted above, the PND market has declined as competing technologies have emerged and market saturation has occurred. This has resulted in, and is expected to continue to result in, periods of lower revenues and profits for the Company’s auto PND reporting unit. Consequently, if operating results and/or market conditions deteriorate significantly faster or more drastically than the forecasts utilized in our estimation of fair value, the goodwill associated with the Company’s auto PND reporting unit may be at risk of impairment in the future.

 

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 three to ten years.

Dividends

Dividends

 

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

 

On June 10, 2016, the shareholders approved a dividend of $2.04 per share (of which, $1.53 was paid in the Company’s 2016 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, 2016   June 16, 2016   $ 0.51  
September 30, 2016   September 15, 2016   $ 0.51  
December 30, 2016   December 14, 2016   $ 0.51  
March 31, 2017   March 15, 2017   $ 0.51  

 

The Company paid dividends in 2016 in the amount of $481,452. Both the dividends paid and the remaining dividend payable were reported as a reduction of retained earnings.

 

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 16, 2016   $ 0.51  

 

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

 

As of December 31, 2016 and December 26, 2015, approximately $304,674 of retained earnings was indefinitely restricted from distribution to stockholders pursuant to the laws of Taiwan.

Intangible Assets

Intangible Assets

 

At December 31, 2016 and December 26, 2015, the Company had patents, customer related intangibles and other identifiable finite-lived intangible assets recorded at a cost of $253,472 and $216,465, respectively. Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis over three to ten years. Accumulated amortization was $173,023 and $158,704 at December 31, 2016 and December 26, 2015, respectively. Amortization expense on these intangible assets was $14,319, $7,115, and $8,362 for the years ended December 31, 2016, December 26, 2015, and December 27, 2014, respectively. In the next five years, the amortization expense is estimated to be $15,727, $14,502, $11,798, $9,301, and $4,931, respectively.

 

The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $224,553 at December 31, 2016 and $187,791 at December 26, 2015.

 

    December 31,
2016
    December 26,
2015
 
Goodwill balance at beginning of year   $ 187,791     $ 178,638  
Acquisitions     38,061       11,908  
Finalization of purchase price allocations and effect of foreign currency translation     (1,299 )     (2,755 )
Goodwill balance at end of year   $ 224,553     $ 187,791  
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 31, 2016. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of tax, reported in other comprehensive income (loss). At December 31, 2016 and December 26, 2015, cumulative unrealized net losses of $27,350 and $16,321, 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 accounts for uncertainty in income taxes in accordance with the FASB ASC 740 topic Income Taxes.  The Company recognizes 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 the Company determines the liabilities are no longer necessary. If the Company’s 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

 

The Company 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 the Company’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.

 

The Company 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, the Company 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 as stand-alone and unbundled unit sales do not occur on more than a limited basis. Therefore, the Company uses the royalty cost plus a normal margin as the primary indicator to calculate relative selling prices of the LMU and traffic elements.

 

For multiple-element software arrangements that do not include a tangible product, the Company allocates revenue to the various elements based on VSOE. When VSOE cannot be established for undelivered elements, all revenue is deferred until the earlier point at which all elements of the arrangement are delivered or sufficient VSOE does exist, unless the only undelivered element is post-contract customer support. If the only undelivered element is post-contract customer support, the entire arrangement consideration is recognized ratably over the support period. The Company offers navigation software licenses to certain customers, bundled with map updates to be provided periodically over the support period. The Company has determined sufficient VSOE of similar map updates does not exist for certain arrangements, and therefore revenue from these transactions is recognized ratably over the contractual map update period.

 

The Company records revenue net of sales tax, trade discounts and customer returns.  The Company 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 the Company’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, the Company may take actions to increase customer incentive offerings, possibly resulting in an incremental reduction of revenue at the time the incentive is offered.

Deferred Revenues and Costs

Deferred Revenues and Costs

 

At December 31, 2016 and December 26, 2015, the Company had deferred revenues totaling $286,971 and $293,713, respectively, and related deferred costs totaling $103,546 and $87,945, respectively.

 

The deferred revenues and costs are recognized over their estimated economic lives, typically 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 $99,169, $49,605, $23,027, $8,255, and $3,369, 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 installationThe 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 the Company 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 31,     December 26,     December 25,  
    2016     2015     2014  
                   
Balance - beginning of period   $ 30,449     $ 27,609     $ 26,767  
Accrual for products sold(1)     61,578       44,620       44,423  
Expenditures     (54,794 )     (41,780 )     (43,581 )
Balance - end of period   $ 37,233     $ 30,449     $ 27,609  

 

  (1) 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 $177,143, $167,166, and $146,633, for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, 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 $467,960, $427,043, and $395,121, for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, 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 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 (“ASU”) 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. 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. Additional updates to Topic 606 issued by the FASB in 2015 and 2016 include the following:

 

  ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which defers the effective date of the new guidance such that the new provisions will now be required for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company does not intend to early adopt, and adoption will therefore occur in the fiscal year ending December 28, 2018.
  ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations (reporting revenue gross versus net).
 
  ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”), which clarifies the implementation guidance on identifying performance obligations and classifying licensing arrangements
  ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which clarifies the implementation guidance in a number of other areas.
  ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”), which affects narrow aspects of Topic 606 such as providing incremental guidance around contract costs.

 

We currently anticipate we will adopt the new revenue standards using the full retrospective method to restate each prior reporting period presented. Our decision to adopt using the full retrospective method is dependent on the finalization of our analysis of information necessary to restate prior period financial statements.

We continue to make progress in evaluating all potential impacts of adopting the new revenue standards on the Company’s consolidated financial statements, the materiality of which is not yet known. This evaluation includes monitoring the work of standard setters, including any impacts from the recently issued amendments, and considering the interpretive efforts of non-authoritative groups.

Refer to the discussion above regarding the Company’s current revenue recognition policies. Adoption of the new standards is expected to affect the manner in which the Company determines the unit of account for certain products (i.e. performance obligations), as well as the allocation of consideration (i.e. revenue) to certain obligations. We have completed our grouping of the Company’s homogenous revenue streams and are continuing to specify and allocate consideration to the associated obligations.

 

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.

 

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to present a right-of-use asset and a corresponding lease liability on the balance sheet. Lessor accounting is substantially unchanged compared to the current accounting guidance. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.

 

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended to simplify the accounting for share-based payment awards. The standard includes provisions addressing income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company does not intend to early adopt ASU 2016-09, rather, adoption will occur in the fiscal year ending December 30, 2017. ASU 2016-09 requires that tax effects from stock-based compensation be recognized in the income tax provision, as these amounts are currently recognized in additional paid-in capital. The Company believes this aspect of the standard may have a material effect on the income tax provision within the consolidated statements of income in future periods. Furthermore, under ASU 2016-09, excess income tax benefits from stock-based compensation arrangements are classified as a cash flow from operations, rather than as a cash flow from financing activities. The Company will apply both changes prospectively. The Company is currently unable to reasonably estimate the impact of these changes due to the dependency of these items on the underlying share price of the Company.

 

In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The standard addresses eight specific cash flow issues with the objective of reducing diversity in practice. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.

 

In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which narrows the scope of Topic 805 by revising the definition of a business. When substantially all of the fair value of gross assets acquired or disposed of is concentrated in a single asset (or group of similar assets), the asset(s) would not represent a business in the context of Topic 805. ASU 2017-01 should be applied prospectively and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the adoption of the new provisions to have a material impact on its consolidated financial statements.

 

In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangible – Goodwill and Other (Topic 350): Simplify the Test for Goodwill Impairment (“ASU 2017-04”) which simplifies the accounting for goodwill impairment. ASU 2017-04 removes Step 2 of the goodwill impairment test, such that a goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. ASU 2017-04 should be applied prospectively and is effective for fiscal years, or any goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Company does not expect the adoption of the new provisions to have a material impact on its consolidated financial statements.

Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2016
Accounting Policies [Abstract]  
Schedule of inventory

Inventories consisted of the following:

 

    December 31, 2016     December 26, 2015  
             
Raw Materials   $ 162,882     $ 203,173  
Work-in-process     68,602       69,690  
Finished goods     293,789       273,762  
Inventory Reserves     (40,452 )     (46,071 )
Inventory, net of reserves   $ 484,821     $ 500,554  

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, 2016   June 16, 2016   $ 0.51  
September 30, 2016   September 15, 2016   $ 0.51  
December 30, 2016   December 14, 2016   $ 0.51  
March 31, 2017   March 15, 2017   $ 0.51  

  

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 16, 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  

 

Schedule of product warranty

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

 

 

    Fiscal Year Ended  
    December 31,     December 26,     December 25,  
    2016     2015     2014  
                   
Balance - beginning of period   $ 30,449     $ 27,609     $ 26,767  
Accrual for products sold(1)     61,578       44,620       44,423  
Expenditures     (54,794 )     (41,780 )     (43,581 )
Balance - end of period   $ 37,233     $ 30,449     $ 27,609  
Marketable Securities (Tables)
12 Months Ended
Dec. 31, 2016
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 fair value on a recurring basis are summarized below:

 

    Fair Value Measurements as
of December 31, 2016
 
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 29,033.97     $ -     $ 29,034     $ -  
Agency securities     59,541       -       59,541       -  
Mortgage-backed securities     230,823       -       230,823       -  
Corporate securities     893,725       -       893,725       -  
Municipal securities     176,168       -       176,168       -  
Other     90,946       -       90,946       -  
Total   $ 1,480,237     $ -     $ 1,480,237     $ -  

 

    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     $ -  
Schedule of available for sale securities

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

 

    Available-For-Sale Securities as
of December 31, 2016
 
    Amortized Cost     Gross Unrealized
Gains
    Gross Unrealized
Losses- OTTI (1)
    Gross Unrealized
Losses- Other (2)
    Fair Value  
U.S. Treasury securities   $ 29,291     $ 31     $ -     $ (288 )   $ 29,034  
Agency securities     60,513       19       -       (991 )     59,541  
Mortgage-backed securities     236,354       41       -       (5,572 )     230,823  
Corporate securities     914,028       252       -       (20,555 )     893,725  
Municipal securities     178,804       224       -       (2,859 )     176,169  
Other     90,934       20       -       (9 )     90,945  
Total   $ 1,509,924     $ 587     $ -     $ (30,274 )   $ 1,480,237  

 

    Available-For-Sale Securities as
of December 26, 2015
 
    Amortized Cost     Gross Unrealized
Gains
    Gross Unrealized
Losses- OTTI(1)
    Gross Unrealized
Losses- Other(2)
    Fair Value  
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  

Schedule of available for sale securities unrealized loss on investments

The following tables display 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 31, 2016 and December 26, 2015.

 

    As of December 31, 2016  
    Less than 12 Consecutive Months     12 Consecutive Months or Longer  
    Gross Unrealized
Losses
    Fair Value     Gross Unrealized
Losses
    Fair Value  
U.S. Treasury securities   $ (288 )   $ 24,259.80     $ -     $ -  
Agency securities     (991 )     49,255       -       -  
Mortgage-backed securities     (3,702 )     159,665       (1,870 )     64,645  
Corporate securities     (18,856 )     765,712       (1,699 )     40,910  
Municipal securities     (2,762 )     130,994       (97 )     6,326  
Other     (3 )     4,058       (6 )     6,919  
Total   $ (26,602 )   $ 1,133,944     $ (3,672 )   $ 118,800  

 

    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  
Schedule of amortized cost and estimated fair value of marketable securities by contractual maturity

Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

 

    Amortized Cost     Fair Value  
             
Due in one year or less   $ 267,115     $ 266,952  
Due after one year through five years     979,546       963,898  
Due after five years through ten years     256,691       243,052  
Due after ten years     6,572       6,335  
    $ 1,509,924     $ 1,480,237  

Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Schedule of future minimum lease payments

Future minimum lease payments are as follows:

 

Year   Amount  
2017   $ 15,229  
2018     12,760  
2019     9,243  
2020     7,897  
2021     7,008  
Thereafter     21,168  
Total   $ 73,305
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of income tax provision

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

 

    Fiscal Year Ended  
    December 31,     December 26,     December 27,  
    2016     2015     2014  
Federal:                  
Current   $ 66,627     $ 49,138     $ (18,665 )
Deferred     5,343       4,216       58,164  
    $ 71,970     $ 53,354     $ 39,499  
State:                        
Current     8,809       9,354       5,575  
Deferred     (3,823 )     (5,858 )     4,368  
    $ 4,986     $ 3,496     $ 9,943  
Foreign:                        
Current     42,406       55,730       287,197  
Deferred     (506 )     (1,620 )     22,895  
    $ 41,900     $ 54,110     $ 310,092  
Total   $ 118,856     $ 110,960     $ 359,534
Schedule of sources and tax effects of the differences

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 31,     December 26,     December 27,  
    2016     2015     2014  
Federal income tax expense at U.S. statutory rate   $ 220,385     $ 198,516     $ 253,260  
State income tax expense, net of federal tax effect     2,749       1,931       6,463  
Foreign tax rate differential     (111,989 )     (100,010 )     (154,338 )
Taiwan tax holiday benefit     (2,032 )     (3,488 )     (3,147 )
Other foreign taxes less incentives and credits     (16,593 )     (8,592 )     5,947  
Withholding Tax     17,447       16,969       21,039  
Intercompany Restructuring     -       -       307,635  
Net Change in Uncertain Tax Positions     17,328       21,246       (67,231 )
Federal Domestic Production Activities Deduction     (5,528 )     (4,589 )     (3,606 )
Federal Research and Development Credit     (8,548 )     (8,573 )     (8,373 )
Other, net     5,637       (2,450 )     1,885  
Income tax expense   $ 118,856     $ 110,960     $ 359,534
Schedule of deferred tax assets and liabilities

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

 

    December 31,     December 26,  
    2016     2015  
Deferred tax assets:                
Product warranty accruals   $ 2,768     $ 2,990  
Allowance for doubtful accounts     10,100       10,323  
Inventory reserves     8,953       10,904  
Sales program allowances     1,397       1,783  
Reserve for sales returns     2,196       1,457  
Other accruals     13,548       10,799  
Share based compensation     29,632       35,360  
Tax credit carryforwards     5,012       3,906  
Amortization     15,368       20,005  
Deferred Revenue     32,487       32,809  
Net operating losses of subsidiaries     5,403       5,228  
Unrealized investment gain, net     5       -  
Benefit related to uncertain tax positions     7,542       5,546  
Other     4,000       4,106  
Valuation allowance related to loss carryforward and tax credits     (4,622 )     (2,781 )
    $ 133,789     $ 142,435  
Deferred tax liabilities:                
Depreciation     17,854       18,029  
Prepaid Expenses     2,876       2,821  
Book basis in excess of tax basis for acquired entities     3,865       1,307  
Unrealized investment loss, net     -       3,198  
Withholding tax     58,597       54,865  
Other     1,523       1,907  
      84,715       82,127  
Net deferred tax assets   $ 49,074     $ 60,308
Schedule of unrecognized tax benefits

The total amount of gross unrecognized tax benefits as of December 31, 2016 was $115,090. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for years ended December 31, 2016, December 26, 2015, and December 27, 2014 is as follows:

 

    December 31,     December 26,     December 27,  
    2016     2015     2014  
Balance beginning of year   $ 97,904     $ 77,495     $ 133,015  
Additions based on tax positions related to prior years     489       89       2,889  
Reductions based on tax positions related to prior years     (940 )     (1,671 )     (60,967 )
Additions based on tax positions related to current period     28,859       29,019       39,115  
Reductions related to settlements with tax authorities     (134 )     (364 )     (401 )
Expiration of statute of limitations     (11,088 )     (6,664 )     (36,156 )
Balance at end of year   $ 115,090     $ 97,904     $ 77,495  
Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2016
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 31, 2016     December 26, 2015  
    Carrying     Fair     Carrying     Fair  
    Amount     Value     Amount     Value  
Cash and cash equivalents   $ 846,883     $ 846,883     $ 833,070     $ 833,070  
Restricted cash     113       113       259       259  
Marketable securities     1,480,237       1,480,237       1,558,548       1,558,548  
Segment Information (Tables)
12 Months Ended
Dec. 31, 2016
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  
                                     
    Outdoor     Fitness     Marine     Auto     Aviation     Total  
53-Weeks Ended December 31, 2016                                                
                                                 
Net sales   $ 546,326     $ 818,486     $ 331,947     $ 882,558     $ 439,348     $ 3,018,665  
Gross profit     340,504       437,205       183,709       388,747       329,405       1,679,570  
Operating income     184,035       160,596       52,167       102,347       124,764       623,908  
                                                 
52-Weeks Ended December 26, 2015                                                
                                                 
Net sales   $ 411,184     $ 661,599     $ 286,778     $ 1,062,091     $ 398,618     $ 2,820,270  
Gross profit     254,878       366,139       158,493       464,480       294,714       1,538,704  
Operating income     139,070       134,574       28,611       136,069       111,257       549,581  
                                                 
52-Weeks Ended December 27, 2014                                                
                                                 
Net sales   $ 409,847     $ 568,440     $ 248,371     $ 1,258,085     $ 385,915     $ 2,870,658  
Gross profit     266,659       358,287       129,710       569,343       280,413       1,604,412  
Operating income     156,059       190,682       26,232       210,675       106,978       690,626  
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 31, 2016, December 26, 2015, and December 27, 2014.

 

    Americas     APAC     EMEA     Total  
December 31, 2016                                
Net sales to external customers (1)   $ 1,518,934     $ 386,549     $ 1,113,182     $ 3,018,665  
Property and equipment, net     300,158       144,470       38,250       482,878  
Net assets (2)     2,155,093       933,999       330,844       3,419,936  
                                 
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       111,700       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  

 

(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. 31, 2016
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 31, 2016, December 26, 2015 and December 27, 2014 is provided below:

  

    Stock Options and SARs  
    Weighted-Average        
    Exercise Price     Number of Shares  
          (In Thousands)  
             
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  
Granted             0  
Exercised   $ 50.77       (716 )
Forfeited/Expired   $ 51.12       (608 )
Outstanding at December 31, 2016   $ 74.48       2,737  
Exercisable at December 31, 2016   $ 74.97       2,684  
Expected to vest after December 31, 2016   $ 49.69       53  
Schedule of exercise price range

Stock Options and SARs as of December 31, 2016
Exercise   Awards     Remaining     Awards  
Price   Outstanding     Life (Years)     Exercisable  
    (In Thousands)           (In Thousands)  
                   
$18.00 - $40.00     49       4.14       49  
$40.01 - $60.00     758       2.35       705  
$60.01 - $80.00     940       0.43       940  
$80.01 - $100.00     3       0.94       3  
$100.01 - $120.00     985       0.92       985  
$120.01 - $140.00     2       0.74       2  
      2,737       1.21       2,684  
Schedule of restricted stock units award activity

    Restricted Stock Units  
    Weighted-Average        
    Grant Date Fair Value     Number of Shares  
          (In Thousands)  
             
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  
Granted   $ 40.59       1,241  
Released/Vested   $ 38.96       (565 )
Cancelled   $ 44.57       (509 )
Outstanding at December 31, 2016   $ 38.94       1,824  
Schedule of weighted-average assumptions used for fair value estimates using stock option pricing model

No options or SARs were granted in 2016 or 2015.

 

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

Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2016
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  
(In thousands, except per share information)   December 31,     December 26,     December 27,  
    2016     2015     2014  
Numerator:                  
Numerator for basic and diluted net income per share - net income   $ 510,814     $ 456,227     $ 364,211  
                         
Denominator:                        
Denominator for basic net income per share – weighted-average common shares     188,818       190,631       193,106  
                         
Effect of dilutive securities – employee stock options and stock appreciation rights     525       476       1,059  
                         
Denominator for diluted net income per share – adjusted weighted-average common shares     189,343       191,107       194,165  
                         
Basic net income per share   $ 2.71     $ 2.39     $ 1.89  
                         
Diluted net income per share   $ 2.70     $ 2.39     $ 1.88  
Accumulated Other Comprehensive Income (Tables)
12 Months Ended
Dec. 31, 2016
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 31, 2016:

 

    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   $ (14,107 )   $ (5,277 )   $ (11,044 )   $         (30,428 )
Other comprehensive income before reclassification     4,696       5,277       (15,188 )     (5,215 )
Amounts reclassified from accumulated other comprehensive income     -       -       (1,118 )     (1,118 )
Net current-period other comprehensive income     4,696       5,277       (16,306 )     (6,333 )
Balance - end of period   $ (9,411 )   $ -     $ (27,350 )   $ (36,761 )
Schedule of reporting reclassifications out of AOCI

The following provides required disclosure of reporting reclassifications out of AOCI for the year ended December 31, 2016:

 

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   $ 822     Other income (expense)
      296     Income tax provision
    $ 1,118     Net of tax
Selected Quarterly Information (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
Schedule of quarterly financial information

    53-Weeks Ended December 31, 2016  
    Quarter Ending  
    March 26     June 25     September 24     December 31  
                         
Net sales   $ 624,040     $ 811,609     $ 722,250     $ 860,767  
Gross profit     339,850       462,958       405,980       470,782  
Net income     88,092       161,064       125,054       138,537  
Basic net income per share   $ 0.46     $ 0.85     $ 0.66     $ 0.74  

 

    52-Weeks 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  
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands
Dec. 31, 2016
Dec. 26, 2015
Accounting Policies [Abstract]    
Raw Materials $ 162,882 $ 203,173
Work-in-process 68,602 69,690
Finished goods 293,789 273,762
Inventory Reserves (40,452) (46,071)
Inventory, net of reserves $ 484,821 $ 500,554
Summary of Significant Accounting Policies (Details 1)
12 Months Ended
Dec. 31, 2016
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. 10, 2016
Jun. 05, 2015
Jun. 06, 2014
Dividend Payable 1 [Member]      
Dividend Date Jun. 30, 2016 Jun. 30, 2015 Jun. 30, 2014
Record Date Jun. 16, 2016 Jun. 16, 2015 Jun. 17, 2014
Dividend per share $ 0.51 $ 0.51 $ 0.48
Dividend Payable 2 [Member]      
Dividend Date Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2014
Record Date Sep. 15, 2016 Sep. 15, 2015 Sep. 15, 2014
Dividend per share $ 0.51 $ 0.51 $ 0.48
Dividend Payable 3 [Member]      
Dividend Date Dec. 30, 2016 Dec. 31, 2015 Dec. 31, 2014
Record Date Dec. 14, 2016 Dec. 15, 2015 Dec. 15, 2014
Dividend per share $ 0.51 $ 0.51 $ 0.48
Dividend Payable 4 [Member]      
Dividend Date Mar. 31, 2017 Mar. 31, 2016 Mar. 31, 2015
Record Date Mar. 15, 2017 Mar. 16, 2016 Mar. 16, 2015
Dividend per share $ 0.51 $ 0.51 $ 0.48
Summary of Significant Accounting Policies (Details 3) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Goodwill [Roll Forward]    
Goodwill balance at beginning of year $ 187,791 $ 178,638
Acquisitions 38,061 11,908
Finalization of purchase price allocations and effect of foreign currency translation (1,299) (2,755)
Goodwill balance at end of year $ 224,553 $ 187,791
Summary of Significant Accounting Policies (Details 4) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]      
Balance - beginning of period $ 30,449 $ 27,609 $ 26,767
Accrual for products sold [1] 61,578 44,620 44,423
Expenditures (54,794) (41,780) (43,581)
Balance - end of period $ 37,233 $ 30,449 $ 27,609
[1] 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
Jun. 10, 2016
SFr / shares
shares
Mar. 14, 2013
USD ($)
Number
Dec. 31, 2016
USD ($)
Dec. 26, 2015
USD ($)
Dec. 27, 2014
USD ($)
Jun. 09, 2016
SFr / shares
Cumulative currency translation adjustments     $ (9,411) $ (14,107)    
Foreign currency losses     (31,651) (23,465) $ (4,299)  
Dividends     481,452 378,117 360,075  
Intangible assets, net     253,472 216,465    
Accumulated amortization intangible assets     173,023 158,704    
Amortization expense intangible assets     14,319 7,115 8,362  
Amortization expense intangible assets, Next twelve months     15,727      
Amortization expense intangible assets, Year two     14,502      
Amortization expense intangible assets, Year three     11,798      
Amortization expense intangible assets, Year four     9,301      
Amortization expense intangible assets, Year five     4,931      
Goodwill     224,553 187,791 178,638  
Fair value available-for-sale securities unrealized losses     (27,350) (16,321)    
Deferred revenues     286,971 293,713    
Total deferred Costs     103,546 87,945    
Deferred revenue and cost expenses, Next twelve months     99,169      
Deferred revenue and cost expenses, Year two     49,605      
Deferred revenue and cost expenses, Year three     23,027      
Deferred revenue and cost expenses, Year four     8,255      
Deferred revenue and cost expenses, Year five     3,369      
Advertising expense     177,143 167,166 146,633  
Research and development costs     $ 467,960 427,043 $ 395,121  
Number of shares cancelled | shares 10,000,000          
Decline in par value of common stock (in swiss francs per share) | SFr / shares SFr 0.10         SFr 10
Aviation Product [Member]            
Product warranty term     2 years      
State Administration of Taxation, China [Member]            
Restricted retained earnings     $ 304,674 $ 304,674    
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. 31, 2016
Dec. 26, 2015
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total $ 1,480,237 $ 1,558,548
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 29,034 27,731
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 59,541 208,631
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 230,823 370,232
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 893,725 648,590
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 176,169 223,562
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 90,945 79,802
Recurring Basis [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 1,480,237 1,558,548
Recurring Basis [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 29,034 27,731
Recurring Basis [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 59,541 208,631
Recurring Basis [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 230,823 370,232
Recurring Basis [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 893,725 648,590
Recurring Basis [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 176,168 223,562
Recurring Basis [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 90,946 79,802
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 1,480,237 1,558,548
Recurring Basis [Member] | Level 2 [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 29,034 27,731
Recurring Basis [Member] | Level 2 [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 59,541 208,631
Recurring Basis [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 230,823 370,232
Recurring Basis [Member] | Level 2 [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 893,725 648,590
Recurring Basis [Member] | Level 2 [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 176,168 223,562
Recurring Basis [Member] | Level 2 [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 90,946 79,802
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
Marketable Securities (Details 1) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 1,509,924 $ 1,576,112
Gross Unrealized Gains 587 1,142
Gross Unrealized Losses-OTTI [1] (5,277)
Gross Unrealized Losses-Other [2] (30,274) (13,429)
Fair Value 1,480,237 1,558,548
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 29,291 27,772
Gross Unrealized Gains 31 27
Gross Unrealized Losses-OTTI [1]
Gross Unrealized Losses-Other [2] (288) (68)
Fair Value 29,034 27,731
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 60,513 211,248
Gross Unrealized Gains 19 105
Gross Unrealized Losses-OTTI [1] (2,409)
Gross Unrealized Losses-Other [2] (991) (313)
Fair Value 59,541 208,631
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 236,354 376,801
Gross Unrealized Gains 41 191
Gross Unrealized Losses-OTTI [1] (1,210)
Gross Unrealized Losses-Other [2] (5,572) (5,550)
Fair Value 230,823 370,232
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 914,028 656,447
Gross Unrealized Gains 252 179
Gross Unrealized Losses-OTTI [1] (1,635)
Gross Unrealized Losses-Other [2] (20,555) (6,401)
Fair Value 893,725 648,590
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 178,804 223,991
Gross Unrealized Gains 224 636
Gross Unrealized Losses-OTTI [1] (9)
Gross Unrealized Losses-Other [2] (2,859) (1,056)
Fair Value 176,169 223,562
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 90,934 79,853
Gross Unrealized Gains 20 4
Gross Unrealized Losses-OTTI [1] (14)
Gross Unrealized Losses-Other [2] (9) (41)
Fair Value $ 90,945 $ 79,802
[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.
Marketable Securities (Details 2) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months $ (26,602) $ (13,113)
Fair Value Less than 12 Consecutive Months 1,133,944 1,056,152
Gross Unrealized Losses 12 Consecutive Months or Longer (3,672) (5,593)
Fair Value 12 Consecutive Months or Longer 118,800 224,998
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (288) (68)
Fair Value Less than 12 Consecutive Months 24,260 22,184
Gross Unrealized Losses 12 Consecutive Months or Longer
Fair Value 12 Consecutive Months or Longer
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (991) (691)
Fair Value Less than 12 Consecutive Months 49,255 117,803
Gross Unrealized Losses 12 Consecutive Months or Longer (2,031)
Fair Value 12 Consecutive Months or Longer 69,418
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (3,702) (4,571)
Fair Value Less than 12 Consecutive Months 159,665 263,735
Gross Unrealized Losses 12 Consecutive Months or Longer (1,870) (2,189)
Fair Value 12 Consecutive Months or Longer 64,645 83,722
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (18,856) (6,719)
Fair Value Less than 12 Consecutive Months 765,712 521,731
Gross Unrealized Losses 12 Consecutive Months or Longer (1,699) (1,317)
Fair Value 12 Consecutive Months or Longer 40,910 50,374
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (2,762) (1,035)
Fair Value Less than 12 Consecutive Months 130,994 116,033
Gross Unrealized Losses 12 Consecutive Months or Longer (97) (30)
Fair Value 12 Consecutive Months or Longer 6,326 6,557
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (3) (29)
Fair Value Less than 12 Consecutive Months 4,058 14,666
Gross Unrealized Losses 12 Consecutive Months or Longer (6) (26)
Fair Value 12 Consecutive Months or Longer $ 6,919 $ 14,927
Marketable Securities (Details 3) - USD ($)
$ in Thousands
Dec. 31, 2016
Dec. 26, 2015
Amortized Cost [Abstract]    
Due in one year or less $ 267,115  
Due after one year through five years 979,546  
Due after five years through ten years 256,691  
Due after ten years 6,572  
Total 1,509,924 $ 1,576,112
Fair Value [Abstract]    
Due in one year or less 266,952  
Due after one year through five years 963,898  
Due after five years through ten years 243,052  
Due after ten years 6,335  
Total $ 1,480,237 $ 1,558,548
Marketable Securities (Details Narrative)
$ in Thousands
12 Months Ended
Dec. 31, 2016
USD ($)
Investments, Debt and Equity Securities [Abstract]  
Unrealized loss position amortized cost $ 1,283,018
Unrealized loss position fair value $ 1,252,744
Percentage of available-for-sale securities in unrealized loss positions 64.70%
Commitments and Contingencies (Details)
$ in Thousands
Dec. 31, 2016
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2017 $ 15,229
2018 12,760
2019 9,243
2020 7,897
2021 7,008
Thereafter 21,168
Total $ 73,305
Commitments and Contingencies (Details Narrative) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Rental expense of office, equipment, warehouse space and real estate $ 19,657 $ 18,104 $ 19,559
Aggregate amount of purchase orders and other commitments 403,059    
Garmin (Europe) Ltd & Garmin Corporation [Member]      
Restricted cash balances (Local value-added tax) $ 113 $ 259  
Employee Benefit Plans (Details Narrative) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Expenses related to other defined contribution plans $ 40,844 $ 37,489 $ 29,267
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. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Federal:      
Current $ 66,627 $ 49,138 $ (18,665)
Deferred 5,343 4,216 58,164
Total federal income tax provision (benefit) 71,970 53,354 39,499
State:      
Current 8,809 9,354 5,575
Deferred (3,823) (5,858) 4,368
Total state income tax provision (benefit) 4,986 3,496 9,943
Foreign:      
Current 42,406 55,730 287,197
Deferred (506) (1,620) 22,895
Total foreign income tax provision (benefit) 41,900 54,110 310,092
Income tax provision $ 118,856 $ 110,960 $ 359,534
Income Taxes (Details 1) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Income Tax Disclosure [Abstract]      
Federal income tax expense at U.S. statutory rate $ 220,385 $ 198,516 $ 253,260
State income tax expense, net of federal tax effect 2,749 1,931 6,463
Foreign tax rate differential (111,989) (100,010) (154,338)
Taiwan tax holiday benefit (2,032) (3,488) (3,147)
Other foreign taxes less incentives and credits (16,593) (8,592) 5,947
Withholding Tax 17,447 16,969 21,039
Intercompany Restructuring 307,635
Net Change in Uncertain Tax Positions 17,328 21,246 (67,231)
Federal Domestic Production Activities Deduction (5,528) (4,589) (3,606)
Federal Research and Development Credit (8,548) (8,573) (8,373)
Other, net 5,637 (2,450) 1,885
Income tax expense $ 118,856 $ 110,960 $ 359,534
Income Taxes (Details 2) - USD ($)
$ in Thousands
Dec. 31, 2016
Dec. 26, 2015
Deferred tax assets:    
Product warranty accruals $ 2,768 $ 2,990
Allowance for doubtful accounts 10,100 10,323
Inventory reserves 8,953 10,904
Sales program allowances 1,397 1,783
Reserve for sales returns 2,196 1,457
Other accruals 13,548 10,799
Share based compensation 29,632 35,360
Tax credit carryforwards 5,012 3,906
Amortization 15,368 20,005
Deferred Revenue 32,487 32,809
Net operating losses of subsidiaries 5,403 5,228
Unrealized investment gain, net 5
Benefit related to uncertain tax positions 7,542 5,546
Other 4,000 4,106
Valuation allowance related to loss carryforward and tax credits (4,622) (2,781)
Total deferred tax assets 133,789 142,435
Deferred tax liabilities:    
Depreciation 17,854 18,029
Prepaid Expenses 2,876 2,821
Book basis in excess of tax basis for acquired entities 3,865 1,307
Unrealized investment loss, net 3,198
Withholding tax 58,597 54,865
Other 1,523 1,907
Total deferred tax liabilities 84,715 82,127
Net deferred tax assets $ 49,074 $ 60,308
Income Taxes (Details 3) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Income Tax Disclosure [Abstract]      
Balance at beginning of year $ 97,904 $ 77,495 $ 133,015
Additions based on tax positions related to prior years 489 89 2,889
Reductions based on tax positions related to prior years (940) (1,671) (60,967)
Additions based on tax positions related to current period 28,859 29,019 39,115
Reductions related to settlements with tax authorities (134) (364) (401)
Expiration of statute of limitations (11,088) (6,664) (36,156)
Balance at end of year $ 115,090 $ 97,904 $ 77,495
Income Taxes (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Sep. 27, 2014
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Inter-company restructuring tax expenses   $ 307,635
Income taxes paid $ 265,000      
Effective income tax amount   220,385 198,516 253,260
Effective income tax foreign tax rate differential   (111,989) (100,010) (154,338)
Income before income taxes   629,670 567,187 723,745
Income tax expense used for unremitted earnings   118,856 110,960 359,534
Tax credit carryforward amount   5,012 3,906  
Non-U.S. Operations Entity's [Member]        
Income before income taxes   453,729 403,242 546,790
Foreign Subsidiaries [Member]        
Income tax expense used for unremitted earnings   $ 22,139 $ 21,085 $ 20,606
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   $ 55,000 $ 52,000 $ 44,000
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member] | Maximum [Member]        
Effective income tax amount   171,000 154,000 197,000
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member] | Minimum [Member]        
Effective income tax amount   $ 49,000 $ 44,000 $ 57,000
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member]        
Weighted-average common share outstanding tax holiday benefits (in dollars per share)   $ 0.01 $ 0.02 $ 0.02
Tax holiday benefits termination year   2017    
Income Taxes (Details Narrative 1) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Deferred tax assets related to future tax benefit on net operating loss carryforward $ 5,403    
Net operating loss carryforwards 35,843    
Net unrecognized tax benefits 109,667 $ 93,654 $ 74,205
Accrued interest and penalties on unrecognized tax benefits 3,901 2,479 2,159
Increase (decrease) unrecognized tax benefits 1,422 320 (2,953)
Reduction in income tax expense 11,088 6,664 36,156
Minimum [Member]      
Reserves for certain unrecognized tax benefits 15,000    
Maximum [Member]      
Reserves for certain unrecognized tax benefits 20,000    
Various Other Jurisdictions [Member]      
Net operating loss carryforwards 9,422    
Reduction in income tax expense 11,151 $ 6,971 $ 83,006
Foreign Tax Authority [Member] | Swiss Federal Tax Administration (FTA) [Member]      
Net operating loss carryforwards $ 22,968    
Net operating loss carryforwards expiration year 2023    
Income tax examination year 2011    
Foreign Tax Authority [Member] | Finnish Tax Administration [Member]      
Net operating loss carryforwards $ 1,462    
Foreign Tax Authority [Member] | Finnish Tax Administration [Member] | Minimum [Member]      
Net operating loss carryforwards expiration year 2025    
Foreign Tax Authority [Member] | Finnish Tax Administration [Member] | Maximum [Member]      
Net operating loss carryforwards expiration year 2026    
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member]      
Income tax examination year 2010    
Foreign Tax Authority [Member] | Her Majesty's Revenue and Customs (HMRC) [Member]      
Income tax examination year 2013    
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member]      
Net operating loss carryforwards $ 1,991    
Income tax examination year 2012    
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Minimum [Member]      
Net operating loss carryforwards expiration year 2035    
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Maximum [Member]      
Net operating loss carryforwards expiration year 2036    
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2016
Dec. 26, 2015
Marketable securities $ 1,480,237 $ 1,558,548
Carrying Amount [Member]    
Cash and cash equivalents 846,883 833,070
Restricted cash 113 259
Marketable securities 1,480,237 1,558,548
Fair Value [Member]    
Cash and cash equivalents 846,883 833,070
Restricted cash 113 259
Marketable securities $ 1,480,237 $ 1,558,548
Segment Information (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Net sales $ 860,767 $ 722,250 $ 811,609 $ 624,040 $ 781,358 $ 679,690 $ 773,830 $ 585,394 $ 3,018,665 [1] $ 2,820,270 [1] $ 2,870,658 [1]
Gross profit $ 470,782 $ 405,980 $ 462,958 $ 339,850 $ 413,143 $ 362,190 $ 419,250 $ 344,122 1,679,570 1,538,704 1,604,412
Operating income                 623,909 549,581 690,626
Outdoor [Member]                      
Net sales                 546,326 411,184 409,847
Gross profit                 340,504 254,878 266,659
Operating income                 184,035 139,070 156,059
Fitness [Member]                      
Net sales                 818,486 661,599 568,440
Gross profit                 437,205 366,139 358,287
Operating income                 160,596 134,574 190,682
Marine [Member]                      
Net sales                 331,947 286,778 248,371
Gross profit                 183,709 158,493 129,710
Operating income                 52,167 28,611 26,232
Auto [Member]                      
Net sales                 882,558 1,062,091 1,258,085
Gross profit                 388,747 464,480 569,343
Operating income                 102,347 136,069 210,675
Aviation [Member]                      
Net sales                 439,348 398,618 385,915
Gross profit                 329,405 294,714 280,413
Operating income                 $ 124,764 $ 111,257 $ 106,978
[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. 31, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Net sales to external customers $ 860,767 $ 722,250 $ 811,609 $ 624,040 $ 781,358 $ 679,690 $ 773,830 $ 585,394 $ 3,018,665 [1] $ 2,820,270 [1] $ 2,870,658 [1]
Property and equipment, net 482,878       446,089       482,878 446,089 430,887
Net assets [2] 3,418,003       3,345,126       3,418,003 3,345,126 3,403,367
Americas [Member]                      
Net sales to external customers [1]                 1,518,934 1,469,243 1,538,322
Property and equipment, net 300,158       294,234       300,158 294,234 269,858
Net assets [2] 2,153,161       2,110,108       2,153,161 2,110,108 2,142,624
APAC [Member]                      
Net sales to external customers [1]                 386,549 337,888 278,092
Property and equipment, net 144,470       111,700       144,470 111,700 111,464
Net assets [2] 933,999       921,410       933,999 921,410 939,852
EMEA [Member]                      
Net sales to external customers [1]                 1,113,182 1,013,139 1,054,244
Property and equipment, net 38,250       40,154       38,250 40,154 49,565
Net assets [2] $ 330,843       $ 313,608       $ 330,843 $ 313,608 $ 320,891
[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. 31, 2016
Segment
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. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Exercise Price [Roll Forward]      
Outstanding at beginning $ 66.80 $ 63.19 $ 58.44
Granted     52.44
Exercised 50.77 29.15 40.60
Forfeited/Expired 51.12 70.58 80.49
Outstanding at end 74.48 $ 66.80 $ 63.19
Exercisable at end 74.97    
Expected to vest $ 49.69    
Share-based Compensation Arrangement by Share-based Payment Award, Outstanding [Roll Forward]      
Outstanding at beginning 4,061,000 4,731,000 6,239,000
Granted     47,000
Exercised (716,000) (474,000) (1,430,000)
Forfeited/Expired (608,000) (196,000) (125,000)
Outstanding at end 2,737,000 4,061,000 4,731,000
Exercisable at end 2,684,000    
Expected to vest 53,000    
Stock Compensation Plans (Details 1) - Stock Option & Stock Appreciation Rights [Member]
12 Months Ended
Dec. 31, 2016
shares
Awards Oustanding 2,737,000
Remaining Life 1 year 2 months 16 days
Awards Exercisable 2,684,000
Exercise Price $18.00 - $40.00 [Member]  
Awards Oustanding 49,000
Remaining Life 4 years 1 month 20 days
Awards Exercisable 49,000
Exercise Price $40.01 - $60.00 [Member]  
Awards Oustanding 758,000
Remaining Life 2 years 4 months 6 days
Awards Exercisable 705,000
Exercise Price $60.01 - $80.00 [Member]  
Awards Oustanding 940,000
Remaining Life 5 months 5 days
Awards Exercisable 940,000
Exercise Price $80.01 - $100.00 [Member]  
Awards Oustanding 3,000
Remaining Life 11 months 8 days
Awards Exercisable 3,000
Exercise Price $100.01 - $120.00 [Member]  
Awards Oustanding 985,000
Remaining Life 11 months 1 day
Awards Exercisable 985,000
Exercise Price $120.01 - $140.00 [Member]  
Awards Oustanding 2,000
Remaining Life 8 months 26 days
Awards Exercisable 2,000
Stock Compensation Plans (Details 2) - Restricted Stock Units [Member] - $ / shares
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
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 $ 39.45 $ 42.55 $ 37.36
Granted 40.59 37.07 48.73
Released/Vested 38.96 40.18 36.00
Cancelled 44.57 42.02 37.02
Outstanding at end $ 38.94 $ 39.45 $ 42.55
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Outstanding at beginning 1,657,000 1,088,000 1,225,000
Granted 1,241,000 1,184,000 432,000
Released/Vested (565,000) (562,000) (522,000)
Cancelled (509,000) (53,000) (47,000)
Outstanding at end 1,824,000 1,657,000 1,088,000
Stock Compensation Plans (Details 3) - Stock Option & Stock Appreciation Rights [Member]
12 Months Ended
Dec. 27, 2014
$ / shares
Weighted average grant date fair value of options granted $ 12.42
Expected volatility 0.3342%
Dividend yield 3.57%
Expected life of options in years 6 years 9 months 18 days
Risk-free interest rate 1.90%
Stock Compensation Plans (Details Narrative) - shares
1 Months Ended 12 Months Ended
Jun. 30, 2011
Jun. 30, 2005
Oct. 31, 2000
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Dec. 26, 2009
Restricted Stock Units [Member]                
Number of shares granted       1,241,000 1,184,000 432,000    
Outstanding awards weighted-average remaining contract life       1 year 1 month 2 days        
Stock Option & Stock Appreciation Rights [Member]                
Outstanding awards weighted-average remaining contract life       1 year 2 months 17 days        
Exercisable awards weighted-average remaining contract life       1 year 1 month 2 days        
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       12,984 12,008 7,120    
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       1,228,427 1,171,905 425,347    
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    
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
1 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Total fair value of vested awards   $ 22,429 $ 23,351 $ 19,127
Closing stock price (in dollars per share)   $ 48.49    
Total unrecognized compensation cost related to unvested share-based compensation awards   $ 55,802    
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   541,018 488,753 349,982
Total shares purchase price   $ 18,157 $ 16,789 $ 14,634
Number of shares available for future issuance   1,459,610    
Stock Option & Stock Appreciation Rights [Member]        
Outstanding awards aggregate intrinsic values   $ 942    
Exercisable awards aggregate intrinsic values   884    
Aggregate intrinsic values   1,632 3,714 18,885
Restricted Stock Units [Member]        
Outstanding awards aggregate intrinsic values   88,449    
Aggregate intrinsic values   $ 27,386 $ 20,787 $ 28,119
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Dec. 27, 2014
Numerator:                        
Numerator for basic and diluted net income per share - net income $ 136,605 $ 125,054 $ 161,064 $ 88,092 $ 132,383 $ 119,299 $ 137,753 $ 66,793 $ 510,814 $ 456,227 $ 364,211 $ 364,211
Denominator:                        
Denominator for basic net income per share - weighted-average common shares                 188,818 190,631 193,106  
Effect of dilutive securities - employee stock options and stock appreciation rights                 525 476 1,059  
Denominator for diluted net income per share - adjusted weighted-average common shares                 189,343 191,107 194,165  
Basic net income per share (in dollars per share) $ 0.73 $ 0.66 $ 0.85 $ 0.46 $ 0.70 $ 0.63 $ 0.72 $ 0.35 $ 2.71 $ 2.39 $ 1.89 $ 1.89
Diluted net income per share (in dollars per share)                 $ 2.70 $ 2.39 $ 1.88 $ 1.88
Earnings Per Share (Details Narrative) - shares
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Earnings Per Share [Abstract]      
Number of anti-dilutive equity awards 3,547,738 4,086,983 2,240,005
Share Repurchase Plan (Details Narrative) - USD ($)
$ in Thousands
12 Months Ended
Feb. 13, 2015
Feb. 15, 2013
Dec. 31, 2016
Dec. 26, 2015
Dec. 31, 2014
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     2,152,716 3,148,901 4,369,360
Stock issued for repurchase program, value     $ 93,233 $ 131,413 $ 241,578
Accumulated Other Comprehensive Income (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2016
USD ($)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]  
Balance - beginning of period $ (14,107)
Other comprehensive income before reclassification 4,696
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive income 4,696
Balance - end of period (9,411)
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Roll Forward]  
Balance - beginning of period (5,277) [1]
Other comprehensive income before reclassification 5,277 [1]
Amounts reclassified from accumulated other comprehensive income [1]
Net current-period other comprehensive income 5,277 [1]
Balance - end of period [1]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]  
Balance - beginning of period (11,044) [2]
Other comprehensive income before reclassification (15,188) [2]
Amounts reclassified from accumulated other comprehensive income (1,118) [2]
Net current-period other comprehensive income (16,306) [2]
Balance - end of period (27,350) [2]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]  
Balance - beginning of period (30,428)
Other comprehensive income before reclassification (5,215)
Amounts reclassified from accumulated other comprehensive income (1,118)
Net current-period other comprehensive income (6,333)
Balance - end of period $ (36,761)
[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. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Other income (expense) $ 5,761 $ 17,606 $ 33,119
Income tax (provision) benefit (118,856) $ (110,960) $ (359,534)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]      
Other income (expense) 822    
Income tax (provision) benefit 296    
Net of tax $ 1,118    
Selected Quarterly Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 24, 2016
Jun. 25, 2016
Mar. 26, 2016
Dec. 26, 2015
Sep. 26, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Dec. 27, 2014
Quarterly Financial Information Disclosure [Abstract]                        
Net sales $ 860,767 $ 722,250 $ 811,609 $ 624,040 $ 781,358 $ 679,690 $ 773,830 $ 585,394 $ 3,018,665 [1] $ 2,820,270 [1]   $ 2,870,658 [1]
Gross profit 470,782 405,980 462,958 339,850 413,143 362,190 419,250 344,122 1,679,570 1,538,704   1,604,412
Net income $ 136,605 $ 125,054 $ 161,064 $ 88,092 $ 132,383 $ 119,299 $ 137,753 $ 66,793 $ 510,814 $ 456,227 $ 364,211 $ 364,211
Basic net income per share $ 0.73 $ 0.66 $ 0.85 $ 0.46 $ 0.70 $ 0.63 $ 0.72 $ 0.35 $ 2.71 $ 2.39 $ 1.89 $ 1.89
[1] The U.S. is the only country which constitutes greater than 10% of net sales to external customers.
Subsequent Events (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 12, 2017
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Income tax benefit   $ 118,856 $ 110,960 $ 359,534
Subsequent Event [Member] | Swiss Federal Tax Administration (FTA) [Member]        
Increase in effective tax rate 0.03%      
Income tax benefit $ 150,000      
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 62,657 $ 66,823 $ 112,109
Additions Charged to Costs and Expenses 32,561 21,158 28,899
Additions Charged to Other Accounts
Deductions (35,475) (25,324) (74,185)
Balance at End of Period 59,743 62,657 66,823
Allowance for doubtful accounts [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 13,805 18,330 20,367
Additions Charged to Costs and Expenses 4,137 (2,521) 66
Additions Charged to Other Accounts
Deductions (3,273) (2,004) (2,103)
Balance at End of Period 14,669 13,805 18,330
Inventory reserve [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 46,071 37,135 28,381
Additions Charged to Costs and Expenses 26,458 23,257 25,903
Additions Charged to Other Accounts
Deductions (32,077) (14,321) (17,149)
Balance at End of Period 40,452 46,071 37,135
Valuation allowance - Deferred Tax Asset [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 2,781 11,358 63,361
Additions Charged to Costs and Expenses 1,966 422 2,930
Additions Charged to Other Accounts
Deductions (125) (8,999) (54,933)
Balance at End of Period $ 4,622 $ 2,781 $ 11,358