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Document and Entity Information - shares
 6 Months Ended
Jul. 01, 2017
Jul. 31, 2017
Document And Entity Information    
Entity Registrant Name GARMIN LTD  
Entity Central Index Key 0001121788  
Document Type 10-Q  
Trading Symbol GRMN  
Document Period End Date Jul. 01, 2017  
Amendment Flag false  
Current Fiscal Year End Date --12-30  
Entity a Well-known Seasoned Issuer Yes  
Entity a Voluntary Filer No  
Entity's Reporting Status Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   198,077,418
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2017  
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jul. 01, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 859,560 $ 846,883
Marketable securities 248,904 266,952
Accounts receivable, net 514,942 527,062
Inventories, net 525,167 484,821
Deferred costs 49,603 47,395
Prepaid expenses and other current assets 106,758 89,903
Total current assets 2,304,934 2,263,016
Property and equipment, net 517,290 482,878
Marketable securities 1,200,432 1,213,285
Restricted cash 117 113
Deferred income taxes 265,719 110,293
Noncurrent deferred costs 62,741 56,151
Intangible assets, net 309,318 305,002
Other assets 88,221 94,395
Total assets 4,748,772 4,525,133
Current liabilities:    
Accounts payable 161,398 172,404
Salaries and benefits payable 86,955 88,818
Accrued warranty costs 37,012 37,233
Accrued sales program costs 51,531 80,953
Deferred revenue 145,603 146,564
Accrued royalty costs 29,378 36,523
Accrued advertising expense 23,180 37,440
Other accrued expenses 95,626 70,469
Income taxes payable 10,961 16,163
Dividend payable 286,865 96,168
Total current liabilities 928,509 782,735
Deferred income taxes 56,691 61,220
Noncurrent income taxes 131,887 121,174
Noncurrent deferred revenue 145,582 140,407
Other liabilities 1,656 1,594
Stockholders' equity:    
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 187,703 shares outstanding at July 1, 2017 and 188,565 shares outstanding at December 31, 2016 17,979 17,979
Additional paid-in capital 1,839,587 1,836,047
Treasury stock (496,342) (455,964)
Retained earnings 2,083,076 2,056,702
Accumulated other comprehensive income (loss) 40,147 (36,761)
Total stockholders' equity 3,484,447 3,418,003
Total liabilities and stockholders' equity $ 4,748,772 $ 4,525,133
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Jul. 01, 2017
Dec. 31, 2016
Common shares, authorized 198,077 198,077
Common shares, issued 198,077 198,077
Common shares, outstanding 187,703 188,565
CHF [Member]    
Common shares, par value (in dollars per share) $ 0.10 $ 0.10
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Income Statement [Abstract]        
Net sales $ 816,885 $ 811,609 $ 1,455,431 $ 1,435,648
Cost of goods sold 339,027 348,651 605,450 632,840
Gross profit 477,858 462,958 849,981 802,808
Advertising expense 42,009 44,252 73,533 76,485
Selling, general and administrative expense 105,251 103,677 207,303 199,287
Research and development expense 127,248 114,355 249,450 222,559
Total operating expense 274,508 262,284 530,286 498,331
Operating income 203,350 200,674 319,695 304,477
Other income (expense):        
Interest income 9,281 8,455 17,724 15,883
Foreign currency gains (losses) 15,110 (5,743) (22,387) (10,582)
Other income 314 415 715 1,570
Total other income (expense) 24,705 3,127 (3,948) 6,871
Income before income taxes 228,055 203,801 315,747 311,348
Income tax provision (benefit) 57,105 42,737 (93,015) 62,193
Net income $ 170,950 $ 161,064 $ 408,762 $ 249,155
Net income per share:        
Basic (in dollars per share) $ 0.91 $ 0.85 $ 2.17 $ 1.32
Diluted (in dollars per share) $ 0.91 $ 0.85 $ 2.17 $ 1.31
Weighted average common shares outstanding:        
Basic (in shares) 187,757 188,892 187,974 189,195
Diluted (in shares) 188,492 189,356 188,691 189,491
Dividends declared per share $ 2.04 $ 2.04 $ 2.04 $ 2.04
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Statement of Comprehensive Income [Abstract]        
Net income $ 170,950 $ 161,064 $ 408,762 $ 249,155
Foreign currency translation adjustment 3,182 5,896 65,506 12,162
Change in fair value of available-for-sale marketable securities, net of deferred taxes 4,501 7,565 11,402 16,864
Comprehensive income $ 178,633 $ 174,525 $ 485,670 $ 278,181
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Operating activities:    
Net income $ 408,762 $ 249,155
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 29,558 26,657
Amortization 13,273 14,852
(Gain) loss on sale or disposal of property and equipment (56) 64
Provision for doubtful accounts 351 1,548
Deferred income taxes (159,719) (6,074)
Unrealized foreign currency loss 25,928 3,198
Provision for obsolete and slow moving inventories 11,072 15,892
Stock compensation expense 20,385 19,507
Realized loss (gain) on marketable securities 584 (188)
Changes in operating assets and liabilities:    
Accounts receivable 23,785 24,415
Inventories (34,621) (16,672)
Other current and non-current assets (6,328) (865)
Accounts payable (20,942) (32,291)
Other current and non-current liabilities (48,162) (10,806)
Deferred revenue 2,988 (13,066)
Deferred costs (8,383) (6,089)
Income taxes payable 5,352 10,135
Net cash provided by operating activities 263,827 279,372
Investing activities:    
Purchases of property and equipment (39,812) (28,614)
Proceeds from sale of property and equipment 121
Purchase of intangible assets (6,336) (2,831)
Purchase of marketable securities (243,880) (457,433)
Redemption of marketable securities 278,719 466,526
Change in restricted cash 2
Acquisitions, net of cash acquired (7,500) (62,137)
Net cash used in investing activities (18,688) (84,487)
Financing activities:    
Dividends paid (191,691) (193,111)
Purchase of treasury stock under share repurchase plan (63,957) (45,097)
Purchase of treasury stock related to equity awards (3,582) (173)
Proceeds from issuance of treasury stock related to equity awards 10,316 8,970
Tax benefit from issuance of equity awards 2
Net cash used in financing activities (248,914) (229,409)
Effect of exchange rate changes on cash and cash equivalents 16,452 2,918
Net increase (decrease) in cash and cash equivalents 12,677 (31,606)
Cash and cash equivalents at beginning of period 846,883 833,070
Cash and cash equivalents at end of period $ 859,560 $ 801,464
Basis of Presentation
 6 Months Ended
Jul. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
1.Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Additionally, the condensed consolidated financial statements should be read in conjunction with Item 2 of Management's Discussion and Analysis of Financial Condition and Results of Operations, included in this Form 10-Q. Operating results for the 13-week and 26-week periods ended July 1, 2017 are not necessarily indicative of the results that may be expected for the year ending December 30, 2017.

 

The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

 

The Company’s fiscal year is based on a 52-53 week period ending on the last Saturday of the calendar year. Therefore, the financial results of certain 53-week fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. The quarters ended July 1, 2017 and June 25, 2016 both contain operating results for 13 weeks.

 

In March 2016, the Financial Accounting Standards Board (“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 Company adopted ASU 2016-09 on a prospective basis during the quarter ended April 1, 2017. ASU 2016-09 requires excess tax benefits or deficiencies from stock-based compensation to be recognized in the income tax provision. We previously recorded these amounts to additional paid-in capital. Additionally, under ASU 2016-09, excess tax benefits and deficiencies are not estimated in the effective tax rate, rather, are recorded as discrete tax items in the period they occur. Excess income tax benefits from stock-based compensation arrangements are classified as a cash flow from operations under ASU 2016-09, rather than as a cash flow from financing activities. Most significantly, the Company recognized income tax expense of $7,275 resulting from stock options and stock appreciation rights expiring unexercised during the 13-week and 26-week periods ended July 1, 2017. The impact of these discrete tax items on diluted earnings per share was $0.04 for both the 13-week and 26-week periods ended July 1, 2017. The Company believes ASU 2016-09 may have a material effect on forthcoming quarters during fiscal 2017. However, the Company is unable to reasonably estimate the impact due to the dependency of these items on the underlying share price of the Company.
Inventories
 6 Months Ended
Jul. 01, 2017
Inventory Disclosure [Abstract]  
Inventories
2.Inventories

 

The components of inventories consist of the following:

 

   July 1,   December 31, 
   2017   2016 
         
Raw materials  $181,514   $162,882 
Work-in-process   82,283    68,602 
Finished goods   298,629    293,789 
Inventory reserves   (37,259)   (40,452)
Inventory, net of reserves  $525,167   $484,821
Earnings Per Share
 6 Months Ended
Jul. 01, 2017
Net income per share:  
Earnings Per Share
3.Earnings Per Share

 

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

 

   13-Weeks Ended 
   July 1,   June 25, 
   2017   2016 
Numerator:          
Numerator for basic and diluted net income per share - net income  $170,950   $161,064 
           
Denominator:          
Denominator for basic net income per share – weighted-average common shares   187,757    188,892 
           
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units   735    464 
           
Denominator for diluted net income per share – adjusted weighted-average common shares   188,492    189,356 
           
Basic net income per share  $0.91   $0.85 
           
Diluted net income per share  $0.91   $0.85 

 

   26-Weeks Ended 
   July 1,   June 25, 
   2017   2016 
Numerator:          
Numerator for basic and diluted net income per share - net income  $408,762   $249,155 
           
Denominator:          
Denominator for basic net income per share – weighted-average common shares   187,974    189,195 
           
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units   717    296 
           
Denominator for diluted net income per share – adjusted weighted-average common shares   188,691    189,491 
           
Basic net income per share  $2.17   $1.32 
           
Diluted net income per share  $2.17   $1.31 

 

There were 1,057 and 3,873 anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) outstanding during the 13-week periods ended July 1, 2017 and June 25, 2016, respectively.

 

There were 1,825 and 4,231 anti-dilutive equity awards outstanding during the 26-week periods ended July 1, 2017 and June 25, 2016, respectively.

 

There were 9 and 11 net shares issued as a result of exercises and releases of equity awards for the 13-week periods ended July 1, 2017 and June 25, 2016, respectively.

 

There were 159 and 13 shares issued as a result of exercises and releases of equity awards for the 26-week periods ended July 1, 2017 and June 25, 2016, respectively.

 

There were 248 employee stock purchase plan (ESPP) shares issued from outstanding Treasury stock during the 13-week and 26-week periods ended July 1, 2017.

 

There were 285 ESPP shares issued from outstanding Treasury stock during the 13-week and 26-week periods ended June 25, 2016.
Segment Information
 6 Months Ended
Jul. 01, 2017
Segment Reporting [Abstract]  
Segment Information
4.Segment Information

 

The Company has identified five reportable segments – auto, aviation, marine, outdoor and fitness. The Company’s Chief Operating Decision Maker (CODM) assesses segment performance and allocates resources to each segment individually.

 

Net sales (“revenue”), gross profit, and operating income for each of the Company’s reportable segments are presented below.

 

   Reportable Segments 
                         
   Outdoor   Fitness   Marine   Auto   Aviation   Total 
                         
13-Weeks Ended July 1, 2017                              
                               
Net sales  $194,776   $181,022   $108,545   $208,482   $124,060   $816,885 
Gross profit  $127,813   $102,139   $62,368   $93,037   $92,501   $477,858 
Operating income  $74,284   $37,487   $24,295   $27,926   $39,358   $203,350 
                               
13-Weeks Ended June 25, 2016                              
                               
Net sales  $133,096   $212,855   $111,599   $245,728   $108,331   $811,609 
Gross profit  $85,224   $119,805   $64,515   $112,988   $80,426   $462,958 
Operating income  $48,565   $53,074   $28,548   $39,623   $30,864   $200,674 
                               
26-Weeks Ended July 1, 2017                              
                               
Net sales  $310,652   $318,852   $212,990   $366,006   $246,931   $1,455,431 
Gross profit  $201,282   $179,879   $122,116   $162,970   $183,734   $849,981 
Operating income  $108,735   $55,959   $42,440   $34,595   $77,966   $319,695 
                               
26-Weeks Ended June 25, 2016                              
                               
Net sales  $229,923   $355,273   $194,479   $441,326   $214,647   $1,435,648 
Gross profit  $144,155   $192,100   $108,664   $199,131   $158,758   $802,808 
Operating income  $76,450   $69,647   $38,840   $58,190   $61,350   $304,477 

 

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

 

Net sales and property and equipment, net by geographic area are as follows as of and for the 26-week periods ended July 1, 2017 and June 25, 2016. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

 

   Americas   APAC   EMEA   Total 
July 1, 2017                    
Net sales to external customers  $708,281   $205,316   $541,834   $1,455,431 
Property and equipment, net  $326,125   $153,277   $37,888   $517,290 
                     
June 25, 2016                    
Net sales to external customers  $724,974   $175,226   $535,448   $1,435,648 
Property and equipment, net  $297,609   $113,295   $39,750   $450,654
Warranty Reserves
 6 Months Ended
Jul. 01, 2017
Product Warranties Disclosures [Abstract]  
Warranty Reserves
5.Warranty Reserves

 

The Company’s products sold are generally covered by a standard warranty for periods ranging from one to three years. The Company’s estimate of costs to service its warranty obligations are based on historical experience and expectation of future conditions and are recorded as a liability on the balance sheet. The following reconciliation provides an illustration of changes in the aggregate warranty reserve.

 

   13-Weeks Ended 
   July 1,   June 25, 
   2017   2016 
         
Balance - beginning of period  $34,427   $31,407 
Accrual for products sold during the period   15,747    17,860 
Expenditures   (13,162)   (14,597)
Balance - end of period  $37,012   $34,670 
           
   26-Weeks Ended 
   July 1,   June 25, 
   2017   2016 
         
Balance - beginning of period  $37,233   $30,449 
Accrual for products sold during the period   23,947    30,312 
Expenditures   (24,168)   (26,091)
Balance - end of period  $37,012   $34,670
Commitments and Contingencies
 6 Months Ended
Jul. 01, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
6.Commitments and Contingencies

 

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 July 1, 2017 was approximately $378,000. We cannot determine the aggregate amount of such purchase orders that represent contractual obligations because purchase orders may represent authorizations to purchase rather than binding agreements. Our purchase orders are based on our current needs and are typically fulfilled within short periods of time.

 

In the normal course of business, the Company and its subsidiaries are parties to various legal claims, investigations and complaints, including matters 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 quarter ended July 1, 2017. 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 13-week and 26-week periods ended July 1, 2017 that did not individually or in the aggregate have a material impact on the Company’s financial condition or results of operations.
Income Taxes
 6 Months Ended
Jul. 01, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
7.Income Taxes

 

The Company recorded an income tax expense of $57,105 in the 13-week period ended July 1, 2017, compared to income tax expense of $42,737 in the 13-week period ended June 25, 2016. The effective tax rate was 25.0% in the second quarter of 2017, compared to 21.0% in the second quarter of 2016. Excluding tax expense of $7,275 associated with the expiration of share-based awards (see Note 1 regarding the impacts of ASU 2016-09), the second quarter of 2017 effective tax rate increased 90 basis points compared to the effective tax rate in the prior year quarter. This remaining 90 basis point increase in effective tax rate was primarily due to the Company’s election in February 2017 to align certain Switzerland corporate tax positions with evolving international tax initiatives, partially offset by shifts in the projected income mix by jurisdiction during the second quarter of 2017 compared to the second quarter of 2016.

 

The Company recorded an income tax benefit of $93,015 for the first half of 2017, compared to income tax expense of $62,192 in the first half of 2016. The effective tax rate was (29.5%) in the first half of 2017, compared to 20.0% in the first half of 2016. Excluding an income tax benefit of $168,755 due to revaluation of deferred tax assets, and the $7,275 expense due to the expiration of share-based awards, the effective tax rate for the first half of 2017 increased 170 basis points compared to the effective tax rate in the first half of 2016. This remaining 170 basis point increase in effective tax rate was primarily due to the Company’s election in February 2017 to align certain Switzerland corporate tax positions with evolving international tax initiatives, partially offset by shifts in the projected income mix by jurisdiction for 2017 compared to the projection at second quarter of 2016.
Marketable Securities
 6 Months Ended
Jul. 01, 2017
Marketable Securities [Abstract]  
Marketable Securities
8.Marketable Securities

 

The Financial Accounting Standards Board ("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 the identical asset 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 July 1, 2017		 
   Total   Level 1   Level 2   Level 3 
U.S. Treasury securities  $20,841   $-   $20,841   $- 
Agency securities   56,986    -    56,986    - 
Mortgage-backed securities   205,822    -    205,822    - 
Corporate securities   891,377    -    891,377    - 
Municipal securities   164,168    -    164,168    - 
Other   110,142    -    110,142    - 
Total  $1,449,336   $-   $1,449,336   $- 
                     
   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   $- 

 

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

 

   Available-For-Sale Securities as
of July 1, 2017		 
     
   Amortized Cost   Gross Unrealized
Gains		   Gross Unrealized
Losses		   Fair Value 
U.S. Treasury securities  $20,981   $12   $(152)  $20,841 
Agency securities   57,828    13    (855)   56,986 
Mortgage-backed securities   210,659    32    (4,869)   205,822 
Corporate securities   902,190    546    (11,359)   891,377 
Municipal securities   165,377    264    (1,473)   164,168 
Other   110,488    9    (355)   110,142 
Total  $1,467,523   $876   $(19,063)  $1,449,336 
                     
   Available-For-Sale Securities as
of December 31, 2016		 
     
   Amortized Cost   Gross Unrealized
Gains		   Gross Unrealized
Losses		   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 

 

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 the 26-week period ending July 1, 2017, 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 July 1, 2017 were $1,085,289 and $1,066,225 respectively. Approximately 57.4% of securities in our portfolio were at an unrealized loss position at July 1, 2017. 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 July 1, 2017 and December 31, 2016.

 

   As of July 1, 2017 
   Less than 12 Consecutive Months   12 Consecutive Months or Longer 
   Gross Unrealized
Losses		   Fair Value   Gross Unrealized
Losses		   Fair Value 
U.S. Treasury securities  $(152)  $18,710   $-   $- 
Agency securities   (855)   48,997    -    - 
Mortgage-backed securities   (3,002)   131,732    (1,867)   70,739 
Corporate securities   (9,697)   624,546    (1,662)   48,251 
Municipal securities   (1,363)   78,904    (110)   6,041 
Other   (351)   36,540    (4)   1,766 
Total  $(15,420)  $939,429   $(3,643)  $126,797 
                     
   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 

 

The amortized cost and fair value of marketable securities at July 1, 2017, 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  $248,935   $248,904 
Due after one year through five years   999,063    988,893 
Due after five years through ten years   214,740    206,838 
Due after ten years   4,785    4,701 
   $1,467,523   $1,449,336
Share Repurchase Plan
 6 Months Ended
Jul. 01, 2017
Equity [Abstract]  
Share Repurchase Plan
9.Share Repurchase Plan

 

On February 13, 2015, the Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $300,000 of the common shares of Garmin Ltd. The repurchases may be made from time to time as market and business conditions warrant on the open market or in negotiated transactions in compliance with the SEC’s Rule 10b-18. The timing and amounts of any repurchases will be determined by the Company’s management depending on market conditions and other factors including price, regulatory requirements and capital availability. The program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. In December 2016, the Board of Directors authorized an extension through December 31, 2017 to purchase remaining common shares. As of July 1, 2017, the Company had repurchased 6,571 shares using cash of $288,603. There remains approximately $11,397 available to repurchase additional shares under this authorization.
Accumulated Other Comprehensive Income
 6 Months Ended
Jul. 01, 2017
Stockholders' Equity Note [Abstract]  
Accumulated Other Comprehensive Income
10.Accumulated Other Comprehensive Income

 

The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week and 26-week periods ended July 1, 2017:

 

   13-Weeks Ended July 1, 2017 
   Foreign Currency
Translation
Adjustment		   Net unrealized gains
(losses) on available-
for-sale securities		   Total 
Balance - beginning of period  $52,913   $(20,449)  $32,464 
                
Other comprehensive income before reclassification   3,182    4,232    7,414 
Amounts reclassified from accumulated other comprehensive income   -    269    269 
Net current-period other comprehensive income   3,182    4,501    7,683 
Balance - end of period  $56,095   $(15,948)  $40,147 

 

   26-Weeks Ended July 1, 2017 
   Foreign Currency
Translation
Adjustment		   Net unrealized gains
(losses) on available-
for-sale securities		   Total 
Balance - beginning of period  $(9,411)  $(27,350)  $(36,761)
                
Other comprehensive income before reclassification   65,506    10,858    76,364 
Amounts reclassified from accumulated other comprehensive income   -    544    544 
Net current-period other comprehensive income   65,506    11,402    76,908 
Balance - end of period  $56,095   $(15,948)  $40,147 

 

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 26-week periods ended July 1, 2017:

 

13-Weeks Ended July 1, 2017
        
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  $(293)  Other income (expense)
    24   Income tax benefit (provision)
   $(269)  Net of tax
         
26-Weeks Ended July 1, 2017
        
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  $(584)  Other income (expense)
    40   Income tax benefit (provision)
   $(544)  Net of tax
Recently Issued Accounting Pronouncements
 6 Months Ended
Jul. 01, 2017
Accounting Changes and Error Corrections [Abstract]  
Recently Issued Accounting Pronouncements
11.Recently Issued Accounting Pronouncements

 

Revenue from Contracts with Customers

 

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. Subsequently, the FASB has issued several standards amending or relating to ASU 2014-09 (collectively, the “new revenue standards”). Under Topic 606, a company is required to 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 revenue standards also require enhanced disclosures around contract assets and liabilities, increased disaggregation of revenues, among other enhanced disclosure requirements. The effective date of ASU 2014-09 is for fiscal years, and interim periods within those years, beginning on or after December 15, 2017. The Company does not intend to early adopt, and adoption will therefore occur in the Company’s fiscal year ending December 29, 2018.

 

The new revenue standards 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. 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 expect the new revenue standards will impact a portion of the Company’s auto segment, which are currently accounted for under Accounting Standards Codification Topic 985-605 Software-Revenue Recognition (Topic 985-605). Under Topic 985-605, the Company defers all elements of multiple-element software arrangements if vendor-specific objective evidence of fair value (VSOE) cannot be established for an undelivered element (e.g. map updates). However, in applying the new revenue standards to certain contracts that include both software licenses and map updates, we expect to recognize the portion of revenue related to the software license at the time of delivery rather than ratably over the map update period.

 

Additionally, for certain multiple-element arrangements within the Company’s auto segment, the Company’s current policy is to allocate consideration to traffic services and recognize it ratably over the estimated life of the underlying product. Under the new revenue standards, we expect to recognize revenue related to certain traffic services at the time of hardware and/or software delivery. Specifically, the new revenue standards emphasize the timing of the Company’s performance, and upon delivery of the navigation device and/or software, the Company has performed its obligation with respect to the design and production of the product to receive and interpret the broadcast traffic signal for the benefit of the end user.

 

We continue to finalize our analysis of the impacts of the new revenue standards, and the materiality of which is not yet known. We are also in the process of quantifying the impacts of the changes in accounting policy, retrospectively adjusting financial information for 2016 and 2017 fiscal periods, and implementing changes to processes and internal controls for the new revenue standards. We will continue to monitor the work of standard setters, including any impacts from the recently issued amendments, and consider the interpretive efforts of non-authoritative groups.

 

Financial Instruments – Recognition, Measurement, Presentation, and Disclosure

 

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.

 

Leases

 

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.

 

Statement of Cash Flows

 

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.

 

Income Taxes

 

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”), which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 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.

 

Receivables – Nonrefundable Fees and Other Costs

 

In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”), which shortens the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. Callable debt securities held at a discount continue to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.
Subsequent Events
 6 Months Ended
Jul. 01, 2017
Subsequent Events [Abstract]  
Subsequent Events
12.Subsequent Events

 

On July 20, 2017, the Company acquired the shares of Alphamantis Technologies Inc., a privately held designer of aerodynamics testing and measurement technology for the cycling industry. This acquisition was not material.
Inventories (Tables)
 6 Months Ended
Jul. 01, 2017
Inventory Disclosure [Abstract]  
Schedule of inventories

The components of inventories consist of the following:

 

   July 1,   December 31, 
   2017   2016 
         
Raw materials  $181,514   $162,882 
Work-in-process   82,283    68,602 
Finished goods   298,629    293,789 
Inventory reserves   (37,259)   (40,452)
Inventory, net of reserves  $525,167   $484,821 
Earnings Per Share (Tables)
 6 Months Ended
Jul. 01, 2017
Net income per share:  
Schedule of computation of basic and diluted net income per share

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

 

   13-Weeks Ended 
   July 1,   June 25, 
   2017   2016 
Numerator:          
Numerator for basic and diluted net income per share - net income  $170,950   $161,064 
           
Denominator:          
Denominator for basic net income per share – weighted-average common shares   187,757    188,892 
           
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units   735    464 
           
Denominator for diluted net income per share – adjusted weighted-average common shares   188,492    189,356 
           
Basic net income per share  $0.91   $0.85 
           
Diluted net income per share  $0.91   $0.85 

 

   26-Weeks Ended 
   July 1,   June 25, 
   2017   2016 
Numerator:          
Numerator for basic and diluted net income per share - net income  $408,762   $249,155 
           
Denominator:          
Denominator for basic net income per share – weighted-average common shares   187,974    189,195 
           
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units   717    296 
           
Denominator for diluted net income per share – adjusted weighted-average common shares   188,691    189,491 
           
Basic net income per share  $2.17   $1.32 
           
Diluted net income per share  $2.17   $1.31 
Segment Information (Tables)
 6 Months Ended
Jul. 01, 2017
Segment Reporting [Abstract]  
Schedule of net sales, gross profit, and operating income

Net sales (“revenue”), gross profit, and operating income for each of the Company’s reportable segments are presented below.

 

   Reportable Segments 
                         
   Outdoor   Fitness   Marine   Auto   Aviation   Total 
                         
13-Weeks Ended July 1, 2017                              
                               
Net sales  $194,776   $181,022   $108,545   $208,482   $124,060   $816,885 
Gross profit  $127,813   $102,139   $62,368   $93,037   $92,501   $477,858 
Operating income  $74,284   $37,487   $24,295   $27,926   $39,358   $203,350 
                               
13-Weeks Ended June 25, 2016                              
                               
Net sales  $133,096   $212,855   $111,599   $245,728   $108,331   $811,609 
Gross profit  $85,224   $119,805   $64,515   $112,988   $80,426   $462,958 
Operating income  $48,565   $53,074   $28,548   $39,623   $30,864   $200,674 
                               
26-Weeks Ended July 1, 2017                              
                               
Net sales  $310,652   $318,852   $212,990   $366,006   $246,931   $1,455,431 
Gross profit  $201,282   $179,879   $122,116   $162,970   $183,734   $849,981 
Operating income  $108,735   $55,959   $42,440   $34,595   $77,966   $319,695 
                               
26-Weeks Ended June 25, 2016                              
                               
Net sales  $229,923   $355,273   $194,479   $441,326   $214,647   $1,435,648 
Gross profit  $144,155   $192,100   $108,664   $199,131   $158,758   $802,808 
Operating income  $76,450   $69,647   $38,840   $58,190   $61,350   $304,477
Schedule of net sales and property and equipment, net by geographic area

Net sales and property and equipment, net by geographic area are as follows as of and for the 26-week periods ended July 1, 2017 and June 25, 2016. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

 

   Americas   APAC   EMEA   Total 
July 1, 2017                    
Net sales to external customers  $708,281   $205,316   $541,834   $1,455,431 
Property and equipment, net  $326,125   $153,277   $37,888   $517,290 
                     
June 25, 2016                    
Net sales to external customers  $724,974   $175,226   $535,448   $1,435,648 
Property and equipment, net  $297,609   $113,295   $39,750   $450,654 
Warranty Reserves (Tables)
 6 Months Ended
Jul. 01, 2017
Product Warranties Disclosures [Abstract]  
Schedule of changes in the aggregate warranty reserve

The Company’s estimate of costs to service its warranty obligations are based on historical experience and expectation of future conditions and are recorded as a liability on the balance sheet. The following reconciliation provides an illustration of changes in the aggregate warranty reserve.

 

   13-Weeks Ended 
   July 1,   June 25, 
   2017   2016 
         
Balance - beginning of period  $34,427   $31,407 
Accrual for products sold during the period   15,747    17,860 
Expenditures   (13,162)   (14,597)
Balance - end of period  $37,012   $34,670 
           
   26-Weeks Ended 
   July 1,   June 25, 
   2017   2016 
         
Balance - beginning of period  $37,233   $30,449 
Accrual for products sold during the period   23,947    30,312 
Expenditures   (24,168)   (26,091)
Balance - end of period  $37,012   $34,670 
Marketable Securities (Tables)
 6 Months Ended
Jul. 01, 2017
Marketable Securities [Abstract]  
Schedule of available-for-sale securities

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

 

   Fair Value Measurements as
of July 1, 2017		 
   Total   Level 1   Level 2   Level 3 
U.S. Treasury securities  $20,841   $-   $20,841   $- 
Agency securities   56,986    -    56,986    - 
Mortgage-backed securities   205,822    -    205,822    - 
Corporate securities   891,377    -    891,377    - 
Municipal securities   164,168    -    164,168    - 
Other   110,142    -    110,142    - 
Total  $1,449,336   $-   $1,449,336   $- 
                     
   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   $- 
Schedule of marketable securities classified as available-for-sale securities

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

 

   Available-For-Sale Securities as
of July 1, 2017		 
     
   Amortized Cost   Gross Unrealized
Gains		   Gross Unrealized
Losses		   Fair Value 
U.S. Treasury securities  $20,981   $12   $(152)  $20,841 
Agency securities   57,828    13    (855)   56,986 
Mortgage-backed securities   210,659    32    (4,869)   205,822 
Corporate securities   902,190    546    (11,359)   891,377 
Municipal securities   165,377    264    (1,473)   164,168 
Other   110,488    9    (355)   110,142 
Total  $1,467,523   $876   $(19,063)  $1,449,336 
                     
   Available-For-Sale Securities as
of December 31, 2016		 
     
   Amortized Cost   Gross Unrealized
Gains		   Gross Unrealized
Losses		   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 
Schedule of gross unrealized losses and fair value by major security type

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 July 1, 2017 and December 31, 2016.

 

   As of July 1, 2017 
   Less than 12 Consecutive Months   12 Consecutive Months or Longer 
   Gross Unrealized
Losses		   Fair Value   Gross Unrealized
Losses		   Fair Value 
U.S. Treasury securities  $(152)  $18,710   $-   $- 
Agency securities   (855)   48,997    -    - 
Mortgage-backed securities   (3,002)   131,732    (1,867)   70,739 
Corporate securities   (9,697)   624,546    (1,662)   48,251 
Municipal securities   (1,363)   78,904    (110)   6,041 
Other   (351)   36,540    (4)   1,766 
Total  $(15,420)  $939,429   $(3,643)  $126,797 
                     
   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 
Schedule of amortized cost and estimated fair value of marketable securities by contractual maturity

The amortized cost and fair value of marketable securities at July 1, 2017, 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  $248,935   $248,904 
Due after one year through five years   999,063    988,893 
Due after five years through ten years   214,740    206,838 
Due after ten years   4,785    4,701 
   $1,467,523   $1,449,336 
Accumulated Other Comprehensive Income (Tables)
 6 Months Ended
Jul. 01, 2017
Stockholders' Equity Note [Abstract]  
Schedule of changes in accumulated other comprehensive income (AOCI)

The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week and 26-week periods ended July 1, 2017:

 

   13-Weeks Ended July 1, 2017 
   Foreign Currency
Translation
Adjustment		   Net unrealized gains
(losses) on available-
for-sale securities		   Total 
Balance - beginning of period  $52,913   $(20,449)  $32,464 
                
Other comprehensive income before reclassification   3,182    4,232    7,414 
Amounts reclassified from accumulated other comprehensive income   -    269    269 
Net current-period other comprehensive income   3,182    4,501    7,683 
Balance - end of period  $56,095   $(15,948)  $40,147 

 

   26-Weeks Ended July 1, 2017 
   Foreign Currency
Translation
Adjustment		   Net unrealized gains
(losses) on available-
for-sale securities		   Total 
Balance - beginning of period  $(9,411)  $(27,350)  $(36,761)
                
Other comprehensive income before reclassification   65,506    10,858    76,364 
Amounts reclassified from accumulated other comprehensive income   -    544    544 
Net current-period other comprehensive income   65,506    11,402    76,908 
Balance - end of period  $56,095   $(15,948)  $40,147 
Schedule of reporting reclassifications out of AOCI

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 26-week periods ended July 1, 2017:

 

13-Weeks Ended July 1, 2017
        
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  $(293)  Other income (expense)
    24   Income tax benefit (provision)
   $(269)  Net of tax
         
26-Weeks Ended July 1, 2017
        
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  $(584)  Other income (expense)
    40   Income tax benefit (provision)
   $(544)  Net of tax
Basis of Presentation (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jul. 01, 2017
Basis Of Presentation Details Narrative    
Recognized income tax expense from stock options and stock appreciation rights $ 7,275 $ 7,275
Diluted earnings per share $ 0.04 $ 0.04
Inventories (Details) - USD ($)
$ in Thousands
Jul. 01, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]    
Raw materials $ 181,514 $ 162,882
Work-in-process 82,283 68,602
Finished goods 298,629 293,789
Inventory reserves (37,259) (40,452)
Inventory, net of reserves $ 525,167 $ 484,821
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Numerator:        
Numerator for basic and diluted net income per share - net income $ 170,950 $ 161,064 $ 408,762 $ 249,155
Denominator:        
Denominator for basic net income per share - weighted-average common shares 187,757 188,892 187,974 189,195
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units 735 464 717 296
Denominator for diluted net income per share - adjusted weighted-average common shares 188,492 189,356 188,691 189,491
Basic net income per share (in dollars per share) $ 0.91 $ 0.85 $ 2.17 $ 1.32
Diluted net income per share (in dollars per share) $ 0.91 $ 0.85 $ 2.17 $ 1.31
Earnings Per Share (Details Narrative) - shares
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Net income per share:        
Anti-dilutive stock options, stock appreciation rights and restricted stock units 1,057,000 3,873,000 1,825,000 4,231,000
Shares issued as a result of exercises and releases of equity awards 9,000 11,000 159,000 13,000
Number of shares issued from treasury stock under ESPP (employee stock purchase plan) 248,000 285,000 248,000 285,000
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Net sales $ 816,885 $ 811,609 $ 1,455,431 $ 1,435,648
Gross profit 477,858 462,958 849,981 802,808
Operating income 203,350 200,674 319,695 304,477
Outdoor [Member]        
Net sales 194,776 133,096 310,652 229,923
Gross profit 127,813 85,224 201,282 144,155
Operating income 74,284 48,565 108,735 76,450
Fitness [Member]        
Net sales 181,022 212,855 318,852 355,273
Gross profit 102,139 119,805 179,879 192,100
Operating income 37,487 53,074 55,959 69,647
Marine [Member]        
Net sales 108,545 111,599 212,990 194,479
Gross profit 62,368 64,515 122,116 108,664
Operating income 24,295 28,548 42,440 38,840
Auto [Member]        
Net sales 208,482 245,728 366,006 441,326
Gross profit 93,037 112,988 162,970 199,131
Operating income 27,926 39,623 34,595 58,190
Aviation [Member]        
Net sales 124,060 108,331 246,931 214,647
Gross profit 92,501 80,426 183,734 158,758
Operating income $ 39,358 $ 30,864 $ 77,966 $ 61,350
Segment Information (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Dec. 31, 2016
Net sales to external customers $ 816,885 $ 811,609 $ 1,455,431 $ 1,435,648  
Property and equipment, net 517,290 450,654 517,290 450,654 $ 482,878
Americas [Member]          
Net sales to external customers     708,281 724,974  
Property and equipment, net 326,125 297,609 326,125 297,609  
APAC [Member]          
Net sales to external customers     205,316 175,226  
Property and equipment, net 153,277 113,295 153,277 113,295  
EMEA [Member]          
Net sales to external customers     541,834 535,448  
Property and equipment, net $ 37,888 $ 39,750 $ 37,888 $ 39,750  
Segment Information (Details Narrative)
 6 Months Ended
Jul. 01, 2017
Segment
Segment Reporting [Abstract]  
Number of reportable segments 5
Warranty Reserves (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]        
Balance - beginning of period $ 34,427 $ 31,407 $ 37,233 $ 30,449
Accrual for products sold during the period 15,747 17,860 23,947 30,312
Expenditures (13,162) (14,597) (24,168) (26,091)
Balance - end of period $ 37,012 $ 34,670 $ 37,012 $ 34,670
Warranty Reserves (Details Narrative)
 6 Months Ended
Jul. 01, 2017
Minimum [Member]  
Product warranty term 1 year
Maximum [Member]  
Product warranty term 3 years
Commitments and Contingencies (Details Narrative)
$ in Thousands
Jul. 01, 2017
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Aggregate amount of purchase orders and other commitments $ 378,000
Income Taxes (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Income Tax Disclosure [Abstract]        
Income tax expense $ 57,105 $ 42,737 $ (93,015) $ 62,193
Deferred tax assets gross $ 168,755   $ 168,755  
Effective income tax rate 25.00% 21.00% (29.50%) 20.00%
Recognized income tax expense from stock options and stock appreciation rights $ 7,275   $ 7,275  
Marketable Securities (Details) - USD ($)
$ in Thousands
Jul. 01, 2017
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total $ 1,449,336 $ 1,480,237
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 20,841 29,034
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 56,986 59,541
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 205,822 230,823
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 891,377 893,725
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 164,168 176,169
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 110,142 90,945
Recurring Basis [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 1,449,336 1,480,237
Recurring Basis [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 20,841 29,034
Recurring Basis [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 56,986 59,541
Recurring Basis [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 205,822 230,823
Recurring Basis [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 891,377 893,725
Recurring Basis [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 164,168 176,168
Recurring Basis [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 110,142 90,946
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 1,449,336 1,480,237
Recurring Basis [Member] | Level 2 [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 20,841 29,034
Recurring Basis [Member] | Level 2 [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 56,986 59,541
Recurring Basis [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 205,822 230,823
Recurring Basis [Member] | Level 2 [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 891,377 893,725
Recurring Basis [Member] | Level 2 [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 164,168 176,168
Recurring Basis [Member] | Level 2 [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 110,142 90,946
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
 6 Months Ended 12 Months Ended
Jul. 01, 2017
Dec. 31, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost $ 1,467,523 $ 1,509,924
Gross Unrealized Gains 876 587
Gross Unrealized Losses (19,063) (30,274)
Fair Value 1,449,336 1,480,237
U.S.Treasury Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 20,981 29,291
Gross Unrealized Gains 12 31
Gross Unrealized Losses (152) (288)
Fair Value 20,841 29,034
Agency Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 57,828 60,513
Gross Unrealized Gains 13 19
Gross Unrealized Losses (855) (991)
Fair Value 56,986 59,541
Mortgage-Backed Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 210,659 236,354
Gross Unrealized Gains 32 41
Gross Unrealized Losses (4,869) (5,572)
Fair Value 205,822 230,823
Corporate Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 902,190 914,028
Gross Unrealized Gains 546 252
Gross Unrealized Losses (11,359) (20,555)
Fair Value 891,377 893,725
Municipal Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 165,377 178,804
Gross Unrealized Gains 264 224
Gross Unrealized Losses (1,473) (2,859)
Fair Value 164,168 176,169
Other [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 110,488 90,934
Gross Unrealized Gains 9 20
Gross Unrealized Losses (355) (9)
Fair Value $ 110,142 $ 90,945
Marketable Securities (Details 2) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jul. 01, 2017
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months $ (15,420) $ (26,602)
Fair Value Less than 12 Consecutive Months 939,429 1,133,944
Gross Unrealized Losses 12 Consecutive Months or Longer (3,643) (3,672)
Fair Value 12 Consecutive Months or Longer 126,797 118,800
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (152) (288)
Fair Value Less than 12 Consecutive Months 18,710 24,260
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 (855) (991)
Fair Value Less than 12 Consecutive Months 48,997 49,255
Gross Unrealized Losses 12 Consecutive Months or Longer
Fair Value 12 Consecutive Months or Longer
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (3,002) (3,702)
Fair Value Less than 12 Consecutive Months 131,732 159,665
Gross Unrealized Losses 12 Consecutive Months or Longer (1,867) (1,870)
Fair Value 12 Consecutive Months or Longer 70,739 64,645
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (9,697) (18,856)
Fair Value Less than 12 Consecutive Months 624,546 765,712
Gross Unrealized Losses 12 Consecutive Months or Longer (1,662) (1,699)
Fair Value 12 Consecutive Months or Longer 48,251 40,910
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (1,363) (2,762)
Fair Value Less than 12 Consecutive Months 78,904 130,994
Gross Unrealized Losses 12 Consecutive Months or Longer (110) (97)
Fair Value 12 Consecutive Months or Longer 6,041 6,326
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (351) (3)
Fair Value Less than 12 Consecutive Months 36,540 4,058
Gross Unrealized Losses 12 Consecutive Months or Longer (4) (6)
Fair Value 12 Consecutive Months or Longer $ 1,766 $ 6,919
Marketable Securities (Details 3) - USD ($)
$ in Thousands
Jul. 01, 2017
Dec. 31, 2016
Amortized Cost    
Due in one year or less $ 248,935  
Due after one year through five years 999,063  
Due after five years through ten years 214,740  
Due after ten years 4,785  
Total 1,467,523 $ 1,509,924
Fair Value    
Due in one year or less 248,904  
Due after one year through five years 988,893  
Due after five years through ten years 206,838  
Due after ten years 4,701  
Total $ 1,449,336 $ 1,480,237
Marketable Securities (Details Narrative)
$ in Thousands
 6 Months Ended
Jul. 01, 2017
USD ($)
Marketable Securities [Abstract]  
Unrealized loss position amortized cost $ 1,085,289
Unrealized loss position fair value $ 1,066,225
Percentage of available-for-sale securities in unrealized loss positions 57.40%
Share Repurchase Plan (Details Narrative) - USD ($)
$ in Thousands
 6 Months Ended
Feb. 13, 2015
Jul. 01, 2017
Equity [Abstract]    
Stock repurchase program, authorized amount $ 300,000  
Stock repurchase program, expiration date Dec. 31, 2016  
Stock issued for repurchase program (in shares)   6,571
Stock issued for repurchase program, value   $ 288,603
Remaining stock available under repurchase program   $ 11,397
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jul. 01, 2017
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]    
Balance - beginning of period $ 52,913 $ (9,411)
Other comprehensive income before reclassification 3,182 65,506
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive income 3,182 65,506
Balance - end of period 56,095 56,095
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]    
Balance - beginning of period (20,449) (27,350)
Other comprehensive income before reclassification 4,232 10,858
Amounts reclassified from accumulated other comprehensive income 269 544
Net current-period other comprehensive income 4,501 11,402
Balance - end of period (15,948) (15,948)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]    
Balance - beginning of period 32,464 (36,761)
Other comprehensive income before reclassification 7,414 76,364
Amounts reclassified from accumulated other comprehensive income 269 544
Net current-period other comprehensive income 7,683 76,908
Balance - end of period $ 40,147 $ 40,147
Accumulated Other Comprehensive Income (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2017
Jun. 25, 2016
Jul. 01, 2017
Jun. 25, 2016
Other income (expense) $ 24,705 $ 3,127 $ (3,948) $ 6,871
Income tax benefit (provision) (57,105) $ (42,737) 93,015 $ (62,193)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]        
Other income (expense) (293)   (584)  
Income tax benefit (provision) 24   40  
Net of tax $ (269)   $ (544)