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Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2018
Apr. 30, 2018
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 Mar. 31, 2018  
Amendment Flag false  
Current Fiscal Year End Date --12-29  
Entity a Well-known Seasoned Issuer No  
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 Q1  
Document Fiscal Year Focus 2018  
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Current assets:    
Cash and cash equivalents $ 898,981 $ 891,488
Marketable securities 167,745 161,687
Accounts receivable, net 409,704 590,882
Inventories, net 547,412 517,644
Deferred costs 29,327 30,525
Prepaid expenses and other current assets 138,114 153,912
Total current assets 2,191,283 2,346,138
Property and equipment, net 604,813 595,684
Restricted cash 279 271
Marketable securities 1,309,185 1,260,033
Deferred income taxes 199,090 195,981
Noncurrent deferred costs 32,428 33,029
Intangible assets, net 421,006 409,801
Other assets 97,138 107,352
Total assets 4,855,222 4,948,289
Current liabilities:    
Accounts payable 136,132 169,640
Salaries and benefits payable 90,137 102,802
Accrued warranty costs 35,422 36,827
Accrued sales program costs 56,266 93,250
Deferred revenue 98,660 103,140
Accrued royalty costs 17,445 32,204
Accrued advertising expense 16,007 30,987
Other accrued expenses 69,949 93,652
Income taxes payable 37,825 33,638
Dividend payable 95,975
Total current liabilities 557,843 792,115
Deferred income taxes 74,714 76,612
Noncurrent income taxes 140,368 138,295
Noncurrent deferred revenue 83,222 87,060
Other liabilities 1,882 1,788
Stockholders' equity:    
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 188,521 shares outstanding at March 31, 2018; and 188,189 shares outstanding at December 30, 2017; 17,979 17,979
Additional paid-in capital 1,818,532 1,828,386
Treasury stock (450,160) (468,818)
Retained earnings 2,546,400 2,418,444
Accumulated other comprehensive income 64,442 56,428
Total stockholders' equity 3,997,193 3,852,419
Total liabilities and stockholders' equity $ 4,855,222 $ 4,948,289
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - SFr / shares
shares in Thousands
Mar. 31, 2018
Dec. 30, 2017
Common shares, authorized 198,077 198,077
Common shares, issued 198,077 198,077
Common shares, outstanding 188,521 188,189
CHF [Member]    
Common shares, par value (in Swiss Franc per share) SFr 0.10 SFr 0.10
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Income Statement [Abstract]    
Net sales $ 710,872 $ 641,510
Cost of goods sold 284,337 268,704
Gross profit 426,535 372,806
Advertising expense 25,311 31,525
Selling, general and administrative expense 117,065 102,051
Research and development expense 141,957 122,202
Total operating expense 284,333 255,778
Operating income 142,202 117,028
Other income (expense):    
Interest income 10,227 8,444
Foreign currency gains (losses) 816 (37,497)
Other income 735 400
Total other income (expense) 11,778 (28,653)
Income before income taxes 153,980 88,375
Income tax provision (benefit) 24,606 (150,029)
Net income $ 129,374 $ 238,404
Net income per share:    
Basic (in dollars per share) $ 0.69 $ 1.27
Diluted (in dollars per share) $ 0.68 $ 1.26
Weighted average common shares outstanding:    
Basic (in shares) 188,322 188,333
Diluted (in shares) 189,292 189,031
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Statement of Comprehensive Income [Abstract]    
Net income $ 129,374 $ 238,404
Foreign currency translation adjustment 23,500 62,614
Change in fair value of available-for-sale marketable securities, net of deferred taxes (15,034) 6,901
Comprehensive income $ 137,840 $ 307,919
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Dec. 30, 2017
Operating activities:      
Net income $ 129,374 $ 238,404  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 16,014 14,658  
Amortization 7,132 7,070  
(Gain) loss on sale or disposal of property and equipment (15) 8  
Provision for doubtful accounts 57 (294)  
Provision for obsolete and slow moving inventories 3,959 7,193  
Unrealized foreign currency (gain) loss (517) 42,571  
Deferred income taxes 416 (171,432)  
Stock compensation expense 13,440 8,206  
Realized losses on marketable securities 196 291  
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable 187,693 135,253  
Inventories (26,455) (41,398)  
Other current and non-current assets 9,037 7,534  
Accounts payable (36,708) (44,180)  
Other current and non-current liabilities (99,935) (81,038)  
Deferred revenue (8,368) (12,041)  
Deferred costs 1,807 2,647  
Income taxes payable 17,063 6,943  
Net cash provided by operating activities 214,190 120,395  
Investing activities:      
Purchases of property and equipment (26,336) (25,538)  
Proceeds from sale of property and equipment 121 7  
Purchase of intangible assets (1,622) (1,222)  
Purchase of marketable securities (140,623) (96,049)  
Redemption of marketable securities 65,253 109,526  
Acquisitions, net of cash acquired (9,417)  
Net cash used in investing activities (112,624) (13,276)  
Financing activities:      
Dividends (96,146) (96,028)  
Proceeds from issuance of treasury stock related to equity awards 1,926  
Purchase of treasury stock related to equity awards (6,562) (3,452)  
Purchase of treasury stock under share repurchase plan (27,873)  
Net cash used in financing activities (100,782) (127,353)  
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 6,717 6,932  
Net increase (decrease) in cash, cash equivalents, and restricted cash 7,501 (13,302)  
Cash, cash equivalents, and restricted cash at beginning of period 891,759 846,996 $ 846,996
Cash, cash equivalents, and restricted cash at end of period $ 899,260 $ 833,694 $ 891,759
Accounting Policies
 3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Accounting Policies
1. Accounting Policies

 

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 period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 29, 2018.

 

The condensed consolidated balance sheet at December 30, 2017 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 30, 2017.

 

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 March 31, 2018 and April 1, 2017 both contain operating results for 13 weeks.

 

As previously announced and discussed below within the “Recently Adopted Accounting Standards” section of this footnote, effective in the 13-week period ended March 31, 2018, we adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), using the full retrospective method. All amounts and disclosures set forth in this Form 10-Q reflect these changes. Further, as a result of the adoption of certain other accounting standards described below, effective in the 13-week period ended March 31, 2018, certain amounts in prior periods have been reclassified to conform to the current period presentation.

 

Recently Adopted Accounting Standards

 

Revenue from Contracts with Customers

 

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes previous revenue recognition guidance. The FASB issued several updates amending or relating to ASU 2014-09 (collectively, the “new revenue standard”). The Company has adopted the new revenue standard effective in the 13-week period ending March 31, 2018 using the full retrospective method, which requires the Company to restate each prior reporting period presented in future financial statement issuances. The impacts of the new revenue standard relate to our accounting for certain arrangements within the auto segment.

 

A portion of the Company’s auto segment contracts have historically been accounted for under Accounting Standards Codification (ASC) Topic 985-605 Software-Revenue Recognition (Topic 985-605). Under Topic 985-605, the Company deferred revenue and associated costs of all elements of multiple-element software arrangements if vendor-specific objective evidence of fair value (VSOE) could not be established for an undelivered element (e.g. map updates). In applying the new revenue standard to certain contracts that include both software licenses and map updates, we will recognize the portion of revenue and costs 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 policy has been to allocate consideration to traffic services and recognize the revenue and associated cost of royalties ratably over the estimated life of the underlying product. Under the new revenue standard, we will recognize revenue and associated costs of royalties related to certain traffic services at the time of hardware and/or software delivery. Specifically, the new revenue standard emphasizes the timing of the Company’s performance, and upon delivery of the navigation device and/or software, the Company has fully 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.

 

The changes in accounting policy described above collectively result in reductions to deferred costs (asset) and deferred revenue (liability) balances, and accelerate the recognition of revenues and deferred costs in the auto segment going forward.

 

Summarized financial information depicting the impact of the new revenue standard is presented below. The Company’s historical net cash flows provided by or used in operating, investing, and financing activities are not impacted by adoption of the new revenue standard.  

 

    13-Weeks Ended April 1, 2017  
    As reported     Restated(1)     Impact  
Net sales   $ 638,546     $ 641,510     $ 2,964  
Gross profit     372,123       372,806       683  
Operating income     116,345       117,028       683  
Income tax (benefit)     (150,120 )     (150,029 )     91  
Net income   $ 237,812     $ 238,404     $ 592  
Diluted net income per share   $ 1.26     $ 1.26     $ —  

  

  (1) The Restated results presented above are restated under ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in our press release attached as Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606.

   

    December 30, 2017     December 31, 2016  
             
    As reported     Restated(2)     Impact     As reported     Restated(2)     Impact  
                                     
Current assets:                                                
Deferred costs   $ 48,312     $ 30,525     $ (17,787 )   $ 47,395     $ 34,665     $ (12,730 )
Total current assets     2,363,925       2,346,138       (17,787 )     2,263,016       2,250,286       (12,730 )
Deferred income taxes     199,343       195,981       (3,361 )     110,293       107,655       (2,638 )
Noncurrent deferred costs     73,851       33,029       (40,822 )     56,151       30,934       (25,217 )
Total assets   $ 5,010,260     $ 4,948,289     $ (61,971 )   $ 4,525,133     $ 4,484,549     $ (40,584 )
Current liabilities:                                                
Deferred revenue     139,681       103,140       (36,541 )     146,564       118,496       (28,068 )
Total current liabilities     828,656       792,115       (36,541 )     782,735       754,667       (28,068 )
Deferred income taxes     75,215       76,612       1,396       61,220       62,617       1,397  
Non-current deferred revenue     163,840       87,060       (76,780 )     140,407       91,238       (49,169 )
Retained earnings     2,368,874       2,418,444       49,570       2,056,702       2,092,221       35,519  
Accumulated other comprehensive income     56,045       56,428       382       (36,761 )     (37,024 )     (263 )
Total stockholders' equity     3,802,466       3,852,419       49,954       3,418,003       3,453,259       35,256  
Total liabilities and stockholders’ equity   $ 5,010,260     $ 4,948,289     $ (61,971 )   $ 4,525,133     $ 4,484,549     $ (40,584 )

 

    52-Weeks Ended December 30, 2017     53-Weeks Ended December 31, 2016  
             
    As reported     Restated(2)     Impact     As reported     Restated(2)     Impact  
Net sales   $ 3,087,004     $ 3,121,560     $ 34,556     $ 3,018,665     $ 3,045,797     $ 27,132  
Gross profit     1,783,164       1,797,941       14,777       1,679,570       1,688,525       8,955  
Operating income     668,860       683,637       14,777       623,909       632,864       8,955  
Income tax (benefit) provision     (12,661 )     (11,936 )     725       118,856       120,901       2,045  
Net income   $ 694,955     $ 709,007     $ 14,052     $ 510,814     $ 517,724     $ 6,910  
Diluted net income per share   $ 3.68     $ 3.76     $ 0.08     $ 2.70     $ 2.73     $ 0.03  

 

  (2) The Restated results presented above are restated under ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in Note 2, Summary of Significant Accounting Policies, in the notes to the consolidated financial statements of our fiscal 2017 Annual Report on Form 10-K filed with the SEC on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606.

 

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. The Company has adopted the new standard effective in the 13-week period ending March 31, 2018. The adoption did not have a material impact on the Company’s financial position or results of operations. 

 

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. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling changes in the total amounts within the statement of cash flows. The Company has adopted the new standards effective in the 13-week period ending March 31, 2018. The adoption of ASU 2016-15 did not have a material impact to the Company’s statements of cash flows. The amendments of ASU 2016-18 were applied using a retrospective transition method, resulting in immaterial changes to the presentation of the Company’s statements of cash flows.

 

The total of cash and cash equivalents and restricted cash balances presented on the condensed consolidated balance sheet reconciles to the total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows.

 

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. The Company has adopted the new standard effective beginning in the 13-week period ending March 31, 2018, which resulted in a reclassification of $1,700 of certain prepaid tax balances in a cumulative effect to retained earnings as of the date of adoption. 

 

Income Statement – Reporting Comprehensive Income

 

In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which allows for stranded tax effects in accumulated other comprehensive income resulting from the U.S. Tax Cuts and Jobs Act to be reclassified to retained earnings. The Company has elected to early adopt the new standard effective in the 13-week period ending March 31, 2018, resulting in reclassification of approximately $450 from accumulated other comprehensive income into retained earnings. The tax effects that were reclassified only relate to amounts resulting from the U.S. Tax Cuts and Jobs Act.

 

Significant Accounting Policies

 

For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 2, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017. Other than the policies discussed below, there were no material changes to the Company’s significant accounting policies during the 13-week period ended March 31, 2018.

 

Revenue Recognition

 

The Company recognizes revenue upon the transfer of control of promised products or services to the customer in an amount that depicts the consideration the Company expects to be entitled to for the related products or services.   For the large majority of the Company’s sales, transfer of control occurs once product has shipped and title and risk of loss have transferred to the customer. The Company offers certain tangible products with ongoing services promised over a period of time, typically the useful life of the related tangible product. When we have identified such services as both capable of being distinct and separately identifiable from the related tangible product, the associated revenue allocated to such services is recognized over time.  The Company generally does not offer specified or unspecified upgrade rights to its customers in connection with software sales.

 

For products that include tangible hardware that contains software essential to the tangible product’s functionality and ongoing services identified as separately identifiable performance obligations, the Company allocates revenue to all performance obligations based on their relative standalone selling prices (“SSP”), with the amounts allocated to ongoing services deferred and recognized over a period of time. These ongoing services primarily consist of the Company’s contractual promises to provide personal navigation device (PND) users with lifetime map updates (LMU) and server-based traffic services. In addition, we provide map update services (map care) over a contractual period in certain hardware and software contracts with original equipment manufacturers (OEMs). The Company has determined that directly observable prices do not exist for LMU, map care, or server-based traffic, as stand-alone and unbundled unit sales do not occur on more than a limited basis. Therefore, the Company uses the expected cost plus a margin as the primary indicator to calculate relative SSP of the LMU, map care, and traffic performance obligations. The revenue and associated costs allocated to the LMU, map care, and/or the server-based traffic service are deferred and recognized ratably over the estimated life of the products of approximately 3 years for PNDs, or the contractual map care period in OEM contracts of 3-10 years as we believe our efforts as it relates to providing these services are spread evenly throughout the performance period. In addition to the products listed above, the Company has offered certain other products with ongoing performance obligations including mobile applications, incremental navigation and/or communication service subscriptions, aviation database subscriptions, and extended warranties that are individually immaterial.

 

The Company records revenue net of sales tax and variable consideration such as trade discounts and customer returns.  Payment is due typically within 90 days or less of shipment of product, or upon the grant of a given software license (as applicable). The Company records estimated reductions to revenue in the form of variable consideration 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, typically accrued for on a percentage of sales basis.

 

Deferred Revenues and Costs

 

Deferred revenue consists primarily of the transaction price allocated to performance obligations that are recognized over a period of time basis as discussed in the Revenue Recognition portion of this footnote. Billings associated with such items are typically completed upon the transfer of control of promised products or services to the customer and recorded to accounts receivable until payment is received. Deferred costs primarily refer to the royalties incurred by the Company associated with the aforementioned unsatisfied performance obligations, which are amortized over the same period as the revenue is recognized. The Company typically pays the associated royalties either monthly or quarterly in arrears, on a per item shipped or installed basis.

 

The Company applies a practical expedient, as permitted within ASC 340, to expense as incurred the incremental costs to obtain a contract when the amortization period of the asset that would have otherwise been recognized is one year or less.

 

Shipping and Handling Costs

 

Shipping and handling activities are typically performed before the customer obtains control of the good, and the related costs are therefore expensed as incurred. Shipping and handling costs are included in cost of goods sold in the accompanying condensed consolidated financial statements.
Inventories
 3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Inventories
  2. Inventories

 

The components of inventories consist of the following:  

 

    March 31,
2018		     December 30,
2017		  
             
Raw materials   $ 190,213     $ 179,659  
Work-in-process     84,431       75,754  
Finished goods     272,768       262,231  
Inventory, net of reserves   $ 547,412     $ 517,644  
Earnings Per Share
 3 Months Ended
Mar. 31, 2018
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  
    March 31,
2018		     April 1,
2017		  
Numerator:            
Numerator for basic and diluted net income per share - net income   $ 129,374     $ 238,404  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,322       188,333  
                 
Effect of dilutive securities –                
stock options, stock appreciation rights and restricted stock units     970       698  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     189,292       189,031  
                 
Basic net income per share   $ 0.69     $ 1.27  
                 
Diluted net income per share   $ 0.68     $ 1.26  

 

There were 0 and 2,593 anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) outstanding during the 13-week periods ended March 31, 2018 and April 1, 2017, respectively.

 

There were 332 and 150 net shares issued as a result of exercises and releases of equity awards for the 13-week periods ended March 31, 2018 and April 1, 2017, respectively.
Segment Information
 3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment Information
4. Segment Information

 

The Company has identified five reportable segments – auto, aviation, marine, outdoor and fitness. 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 March 31, 2018                                                
                                                 
Net sales   $ 144,258     $ 166,035     $ 113,554     $ 141,312     $ 145,713     $ 710,872  
Gross profit     93,285       96,601       66,683       61,012       108,954       426,535  
Operating income     43,822       33,374       13,131       3,468       48,407       142,202  
                                                 
13-Weeks Ended April 1, 2017                                                
                                                 
Net sales   $ 115,875     $ 137,831     $ 104,445     $ 160,488     $ 122,871     $ 641,510  
Gross profit     73,469       77,741       59,747       70,616       91,233       372,806  
Operating income     34,451       18,472       18,145       7,352       38,608       117,028  

 

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 to external customers and property and equipment, net by geographic region are as follows as of and for the 13-week periods ended March 31, 2018 and April 1, 2017. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

  

    Americas     APAC     EMEA     Total  
March 31, 2018                        
Net sales to external customers   $ 345,975     $ 118,985     $ 245,912     $ 710,872  
Property and equipment, net   $ 388,531     $ 176,245     $ 40,037     $ 604,813  
                                 
April 1, 2017                                
Net sales to external customers   $ 324,630     $ 91,545     $ 225,335     $ 641,510  
Property and equipment, net   $ 312,630     $ 152,804     $ 38,406     $ 503,840  
Warranty Reserves
 3 Months Ended
Mar. 31, 2018
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  
    March 31,
2018		     April 1,
2017		  
             
Balance - beginning of period   $ 36,827     $ 37,233  
Accrual for products sold during the period     10,012       8,200  
Expenditures     (11,417 )     (11,006 )
Balance - end of period   $ 35,422     $ 34,427  
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
  6. Commitments and Contingencies

 

Commitments

 

The Company is party to certain commitments, which include purchases of raw materials, advertising expenditures, and other indirect purchases in connection with conducting our business. The aggregate amount of purchase orders and other commitments open as of March 31, 2018 was approximately $325,200. 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.

 

Contingencies

 

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 and annual basis, developments in legal proceedings, investigations, claims, and other loss contingencies that could affect any required accrual or disclosure or estimate of reasonably possible loss or range of loss. An estimated loss from a loss contingency is accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, the Company accrues the minimum amount in the range.

 

If an outcome unfavorable to the Company is determined to be probable, but the amount of loss cannot be reasonably estimated or is determined to be reasonably possible, but not probable, we disclose the nature of the contingency and an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company’s aggregate range of reasonably possible losses includes (1) matters where a liability has been accrued and there is a reasonably possible loss in excess of the amount accrued for that liability, and (2) matters where a loss is believed to be reasonably possible, but not probable, and a liability therefore has not been accrued. This aggregate range only represents the Company’s estimate of reasonably possible losses and does not represent the Company’s maximum loss exposure. The assessment regarding whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. In assessing the probability of an outcome in a lawsuit, claim or assessment that could be unfavorable to the Company, we consider the following factors, among others: a) the nature of the litigation, claim, or assessment; b) the progress of the case; c) the opinions or views of legal counsel and other advisers; d) our experience in similar cases; e) the experience of other entities in similar cases; and f) how we intend to respond to the lawsuit, claim, or assessment. Costs incurred in defending lawsuits, claims or assessments are expensed as incurred.

 

Management of the Company currently does not believe it is reasonably possible that the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies in the aggregate, for the fiscal quarter ended March 31, 2018. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. An adverse resolution of one or more of such matters in excess of management’s expectations could have a material adverse effect in the particular quarter or fiscal year in which a loss is recorded, but based on information currently known, the Company does not believe it is likely that losses from such matters would have a material adverse effect on the Company’s business or its consolidated financial position, results of operations or cash flows.
Income Taxes
 3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
7. Income Taxes

 

The Company recorded an income tax expense of $24,606 in the 13-week period ended March 31, 2018, compared to an income tax benefit of $150,029 in the 13-week period ended April 1, 2017, which included a $168,755 income tax benefit due to the revaluation of certain Switzerland deferred tax assets. The effective tax rate was 16.0% in the first quarter of 2018, compared to (169.8%) in the first quarter of 2017. Excluding the effect of the $168,755 revaluation of deferred tax assets in first quarter of 2017, the first quarter of 2018 effective tax rate decreased by 520 basis points primarily due to the reduction of the U.S. corporate tax rate and the net release of uncertain tax position reserves.

 

On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law in the United States. Due to the complexities of the new tax legislation, the Securities and Exchange Commission has issued Staff Accounting Bulletin No. 118 (“SAB 118”) which allows for the recognition of provisional amounts during a measurement period. The Company recorded a provisional re-measurement of its deferred tax assets and liabilities in the fourth quarter of 2017. Income tax expense recorded in the first quarter of 2018 includes the impact of the new tax legislation as currently interpreted by the Company. The Company will continue to assess the impact of the new tax legislation, as well as any related future regulations and rules, and will record any additional impacts as identified during the measurement period, if necessary. The Company does not expect any such potential adjustments in the future periods will materially impact the Company’s financial condition or result of operations.
Marketable Securities
 3 Months Ended
Mar. 31, 2018
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 March 31, 2018		  
    Total      Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 29,058     $ —     $ 29,058     $ —  
Agency securities     41,744       —       41,744       —  
Mortgage-backed securities     158,839       —       158,839       —  
Corporate securities     892,848       —       892,848       —  
Municipal securities     185,586       —       185,586       —  
Other     168,855       —       168,855       —  
Total   $ 1,476,930     $ —     $ 1,476,930     $ —  

 

    Fair Value Measurements as  
    of December 30, 2017  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 19,337     $ —     $ 19,337     $ —  
Agency securities     43,361       —       43,361       —  
Mortgage-backed securities     174,615       —       174,615       —  
Corporate securities     816,793       —       816,793       —  
Municipal securities     186,105       —       186,105       —  
Other     181,509       —       181,509       —  
Total   $ 1,421,720     $ —     $ 1,421,720     $ —  

 

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

 

    Available-For-Sale Securities as
of March 31, 2018		  
                         
                         
    Amortized Cost     Gross Unrealized
Gains		     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ 29,439     $ —     $ (381 )   $ 29,058  
Agency securities     42,901       —       (1,156 )     41,745  
Mortgage-backed securities     166,458       6       (7,625 )     158,839  
Corporate securities     919,920       45       (27,117 )     892,848  
Municipal securities     188,728       14       (3,157 )     185,585  
Other     171,641       1       (2,787 )     168,855  
Total   $ 1,519,087     $ 66     $ (42,223 )   $ 1,476,930  

 

    Available-For-Sale Securities as
of December 30, 2017		  
                                 
    Amortized Cost     Gross Unrealized
Gains		     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ 19,591     $ —     $ (254 )   $ 19,337  
Agency securities     44,191       1       (831 )     43,361  
Mortgage-backed securities     180,470       13       (5,868 )     174,615  
Corporate securities     830,447       136       (13,790 )     816,793  
Municipal securities     187,999       110       (2,004 )     186,105  
Other     183,730       2       (2,223 )     181,509  
Total   $ 1,446,428     $ 262     $ (24,970 )   $ 1,421,720  

 

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 costs 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 fiscal 2017 and the 13-week period ended March 31, 2018, 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 March 31, 2018 were $1,466,270 and $1,424,047 respectively. Approximately 82% of securities in our portfolio were at an unrealized loss position at March 31, 2018. 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 March 31, 2018 and December 30, 2017.

 

    As of March 31, 2018  
    Less than 12 Consecutive Months     12 Consecutive Months or Longer  
             
    Gross Unrealized
Losses		     Fair Value     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ (202 )   $ 19,748     $ (179 )   $ 6,319  
Agency securities     (243 )     16,022       (913 )     25,723  
Mortgage-backed securities     (711 )     17,631       (6,914 )     140,289  
Corporate securities     (11,562 )     538,556       (15,555 )     341,137  
Municipal securities     (1,786 )     139,591       (1,371 )     40,649  
Other     (2,784 )     136,448       (3 )     1,934  
Total   $ (17,288 )   $ 867,996     $ (24,935 )   $ 556,051  

 

    As of December 30, 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   $ (111 )   $ 12,966     $ (143 )   $ 6,371  
Agency securities     (168 )     16,097       (663 )     25,972  
Mortgage-backed securities     (503 )     19,628       (5,365 )     153,835  
Corporate securities     (4,562 )     439,174       (9,228 )     347,052  
Municipal securities     (1,027 )     125,819       (977 )     38,167  
Other     (2,219 )     136,147       (4 )     2,579  
Total   $ (8,590 )   $ 749,831     $ (16,380 )   $ 573,976  

  

The amortized cost and fair value of marketable securities at March 31, 2018, by maturity, are shown below.

 

    Amortized Cost     Fair Value  
             
Due in one year or less   $ 168,370     $ 167,745  
Due after one year through five years     1,175,500       1,143,859  
Due after five years through ten years     160,650       151,195  
Due after ten years     14,567       14,131  
  $ 1,519,087     $ 1,476,930  
Accumulated Other Comprehensive Income
 3 Months Ended
Mar. 31, 2018
Stockholders' Equity Note [Abstract]  
Accumulated Other Comprehensive Income

9. Accumulated Other Comprehensive Income

 

The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week period ended March 31, 2018:

 

    13-Weeks Ended March 31, 2018  
                   
    Foreign Currency
Translation Adjustment		     Net unrealized gains
(losses) on available-for-
sale securities		     Total  
                   
Beginning Balance   $ 79,292     $ (22,864 )   $ 56,428  
Other comprehensive income before reclassification, net of income tax benefit of $2,416     23,500       (14,856 )     8,644  
Amounts reclassified from accumulated other comprehensive income     —       (178 )     (178 )
Net current-period other comprehensive income     23,500       (15,034 )     8,466  
Reclassification of tax effects due to adoption of ASU 2018-02     —       (452 )     (452 )
Ending Balance   $ 102,792     $ (38,350 )   $ 64,442  

  

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week period ended March 31, 2018:

 

13-Weeks Ended March 31, 2018
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   $ (193 )   Other income (expense)
      371     Income tax benefit (provision)
             
    $ 178     Net of tax
Revenue
 3 Months Ended
Mar. 31, 2018
Revenue  
Revenue

10. Revenue

 

In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, we disaggregate revenue (or “net sales”) by major product category, geographic region, and pattern of recognition.

 

The Company has identified six major product categories – aviation, marine, outdoor, fitness, auto PND, and auto OEM. Note 4 – Segment Information contains disaggregated revenue information of the aviation, marine, outdoor and fitness major product categories, and auto OEM comprised 37% and 33% of the auto segment revenue presented in Note 4 for the 13-weeks ended March 31, 2018, and April 1, 2017, respectively. Auto PND comprised of 63% and 67% of the auto segment revenue presented in Note 4 for the 13-weeks ended March 31, 2018 and April 1, 2017, respectively. Disaggregated revenue by geographic region (Americas, APAC, and EMEA) is also presented in Note 4.

  

A large majority of the Company’s sales are recognized on a point in time basis, usually once the product is shipped and title and risk of loss have transferred to the customer. Sales recognized over a period of time are primarily within the auto segment and relate to performance obligations that are satisfied over the life of the product or contractual service period. Revenue disaggregated by the timing of transfer of the goods or services is presented in the table below:

 

    13-Weeks Ended  
    March 31, 2018     April 1, 2017  
Point in time   $ 671,263     $ 599,745  
Over time     39,609       41,765  
Net sales   $ 710,872     $ 641,510  

  

Transaction price and costs associated with the Company’s unsatisfied performance obligations are reflected as deferred revenue and deferred costs, respectively, on the Company’s Condensed Consolidated Balance Sheets. Such amounts are recognized ratably over the applicable service period or estimated useful life. Changes in deferred revenue and costs during the 13-weeks ended March 31, 2018 are presented below: 

 

      13-Weeks Ended  
      March 31, 2018  
        Deferred Revenue(1)       Deferred Costs(2)  
Balance, beginning of period     $ 190,200     $ 63,554  
Deferrals in period       31,291       7,840  
Recognition of deferrals in period       (39,609 )     (9,639 )
Balance, end of period     $ 181,882     $ 61,755  

 

(1) Deferred revenue is comprised of both Deferred revenue and Noncurrent deferred revenue per the Condensed Consolidated Balance Sheets

 

(2) Deferred costs are comprised of both Deferred costs and Noncurrent deferred costs per the Condensed Consolidated Balance Sheets

 

Of the $39,609 deferred revenue recognized in the 13-weeks ended March 31, 2018, $32,515 was deferred as of the beginning of the period.

 

Approximately two-thirds of the $181,882 of deferred revenue at the end of the period, March 31, 2018, is recognized ratably over a period of three years or less.
Recently Issued Accounting Pronouncements Not Yet Adopted
 3 Months Ended
Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]  
Recently Issued Accounting Pronouncements Not Yet Adopted

11. Recently Issued Accounting Pronouncements Not Yet Adopted

 

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. The Company does not plan to early adopt the new standard, and therefore will adopt in the Company’s fiscal year ending December 28, 2019.

 

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.
Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Basis of Presentation

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 period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 29, 2018.

 

The condensed consolidated balance sheet at December 30, 2017 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 30, 2017.

 

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 March 31, 2018 and April 1, 2017 both contain operating results for 13 weeks.

 

As previously announced and discussed below within the “Recently Adopted Accounting Standards” section of this footnote, effective in the 13-week period ended March 31, 2018, we adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), using the full retrospective method. All amounts and disclosures set forth in this Form 10-Q reflect these changes. Further, as a result of the adoption of certain other accounting standards described below, effective in the 13-week period ended March 31, 2018, certain amounts in prior periods have been reclassified to conform to the current period presentation.
Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

 

Revenue from Contracts with Customers

 

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes previous revenue recognition guidance. The FASB issued several updates amending or relating to ASU 2014-09 (collectively, the “new revenue standard”). The Company has adopted the new revenue standard effective in the 13-week period ending March 31, 2018 using the full retrospective method, which requires the Company to restate each prior reporting period presented in future financial statement issuances. The impacts of the new revenue standard relate to our accounting for certain arrangements within the auto segment.

 

A portion of the Company’s auto segment contracts have historically been accounted for under Accounting Standards Codification (ASC) Topic 985-605 Software-Revenue Recognition (Topic 985-605). Under Topic 985-605, the Company deferred revenue and associated costs of all elements of multiple-element software arrangements if vendor-specific objective evidence of fair value (VSOE) could not be established for an undelivered element (e.g. map updates). In applying the new revenue standard to certain contracts that include both software licenses and map updates, we will recognize the portion of revenue and costs 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 policy has been to allocate consideration to traffic services and recognize the revenue and associated cost of royalties ratably over the estimated life of the underlying product. Under the new revenue standard, we will recognize revenue and associated costs of royalties related to certain traffic services at the time of hardware and/or software delivery. Specifically, the new revenue standard emphasizes the timing of the Company’s performance, and upon delivery of the navigation device and/or software, the Company has fully 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.

 

The changes in accounting policy described above collectively result in reductions to deferred costs (asset) and deferred revenue (liability) balances, and accelerate the recognition of revenues and deferred costs in the auto segment going forward.

 

Summarized financial information depicting the impact of the new revenue standard is presented below. The Company’s historical net cash flows provided by or used in operating, investing, and financing activities are not impacted by adoption of the new revenue standard. 

  

    13-Weeks Ended April 1, 2017  
    As reported     Restated(1)     Impact  
Net sales   $ 638,546     $ 641,510     $ 2,964  
Gross profit     372,123       372,806       683  
Operating income     116,345       117,028       683  
Income tax (benefit)     (150,120 )     (150,029 )     91  
Net income   $ 237,812     $ 238,404     $ 592  
Diluted net income per share   $ 1.26     $ 1.26     $ —  

  

  (1) The Restated results presented above are restated under ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in our press release attached as Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606.

  

    December 30, 2017     December 31, 2016  
             
    As reported     Restated(2)     Impact     As reported     Restated(2)     Impact  
                                     
Current assets:                                                
Deferred costs   $ 48,312     $ 30,525     $ (17,787 )   $ 47,395     $ 34,665     $ (12,730 )
Total current assets     2,363,925       2,346,138       (17,787 )     2,263,016       2,250,286       (12,730 )
Deferred income taxes     199,343       195,981       (3,361 )     110,293       107,655       (2,638 )
Noncurrent deferred costs     73,851       33,029       (40,822 )     56,151       30,934       (25,217 )
Total assets   $ 5,010,260     $ 4,948,289     $ (61,971 )   $ 4,525,133     $ 4,484,549     $ (40,584 )
Current liabilities:                                                
Deferred revenue     139,681       103,140       (36,541 )     146,564       118,496       (28,068 )
Total current liabilities     828,656       792,115       (36,541 )     782,735       754,667       (28,068 )
Deferred income taxes     75,215       76,612       1,396       61,220       62,617       1,397  
Non-current deferred revenue     163,840       87,060       (76,780 )     140,407       91,238       (49,169 )
Retained earnings     2,368,874       2,418,444       49,570       2,056,702       2,092,221       35,519  
Accumulated other comprehensive income     56,045       56,428       382       (36,761 )     (37,024 )     (263 )
Total stockholders' equity     3,802,466       3,852,419       49,954       3,418,003       3,453,259       35,256  
Total liabilities and stockholders’ equity   $ 5,010,260     $ 4,948,289     $ (61,971 )   $ 4,525,133     $ 4,484,549     $ (40,584 )

 

    52-Weeks Ended December 30, 2017     53-Weeks Ended December 31, 2016  
             
    As reported     Restated(2)     Impact     As reported     Restated(2)     Impact  
Net sales   $ 3,087,004     $ 3,121,560     $ 34,556     $ 3,018,665     $ 3,045,797     $ 27,132  
Gross profit     1,783,164       1,797,941       14,777       1,679,570       1,688,525       8,955  
Operating income     668,860       683,637       14,777       623,909       632,864       8,955  
Income tax (benefit) provision     (12,661 )     (11,936 )     725       118,856       120,901       2,045  
Net income   $ 694,955     $ 709,007     $ 14,052     $ 510,814     $ 517,724     $ 6,910  
Diluted net income per share   $ 3.68     $ 3.76     $ 0.08     $ 2.70     $ 2.73     $ 0.03  

 

  (2) The Restated results presented above are restated under ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in Note 2, Summary of Significant Accounting Policies, in the notes to the consolidated financial statements of our fiscal 2017 Annual Report on Form 10-K filed with the SEC on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606.

 

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. The Company has adopted the new standard effective in the 13-week period ending March 31, 2018. The adoption did not have a material impact on the Company’s financial position or results of operations. 

 

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. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling changes in the total amounts within the statement of cash flows. The Company has adopted the new standards effective in the 13-week period ending March 31, 2018. The adoption of ASU 2016-15 did not have a material impact to the Company’s statements of cash flows. The amendments of ASU 2016-18 were applied using a retrospective transition method, resulting in immaterial changes to the presentation of the Company’s statements of cash flows.

 

The total of cash and cash equivalents and restricted cash balances presented on the condensed consolidated balance sheet reconciles to the total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows.

  

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. The Company has adopted the new standard effective beginning in the 13-week period ending March 31, 2018, which resulted in a reclassification of $1,700 of certain prepaid tax balances in a cumulative effect to retained earnings as of the date of adoption. 

 

Income Statement – Reporting Comprehensive Income

 

In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which allows for stranded tax effects in accumulated other comprehensive income resulting from the U.S. Tax Cuts and Jobs Act to be reclassified to retained earnings. The Company has elected to early adopt the new standard effective in the 13-week period ending March 31, 2018, resulting in reclassification of approximately $450 from accumulated other comprehensive income into retained earnings. The tax effects that were reclassified only relate to amounts resulting from the U.S. Tax Cuts and Jobs Act.
Revenue Recognition

Revenue Recognition

 

The Company recognizes revenue upon the transfer of control of promised products or services to the customer in an amount that depicts the consideration the Company expects to be entitled to for the related products or services.   For the large majority of the Company’s sales, transfer of control occurs once product has shipped and title and risk of loss have transferred to the customer. The Company offers certain tangible products with ongoing services promised over a period of time, typically the useful life of the related tangible product. When we have identified such services as both capable of being distinct and separately identifiable from the related tangible product, the associated revenue allocated to such services is recognized over time.  The Company generally does not offer specified or unspecified upgrade rights to its customers in connection with software sales.

 

                For products that include tangible hardware that contains software essential to the tangible product’s functionality and ongoing services identified as separately identifiable performance obligations, the Company allocates revenue to all performance obligations based on their relative standalone selling prices (“SSP”), with the amounts allocated to ongoing services deferred and recognized over a period of time. These ongoing services primarily consist of the Company’s contractual promises to provide personal navigation device (PND) users with lifetime map updates (LMU) and server-based traffic services. In addition, we provide map update services (map care) over a contractual period in certain hardware and software contracts with original equipment manufacturers (OEMs). The Company has determined that directly observable prices do not exist for LMU, map care, or server-based traffic, as stand-alone and unbundled unit sales do not occur on more than a limited basis. Therefore, the Company uses the expected cost plus a margin as the primary indicator to calculate relative SSP of the LMU, map care, and traffic performance obligations. The revenue and associated costs allocated to the LMU, map care, and/or the server-based traffic service are deferred and recognized ratably over the estimated life of the products of approximately 3 years for PNDs, or the contractual map care period in OEM contracts of 3-10 years as we believe our efforts as it relates to providing these services are spread evenly throughout the performance period. In addition to the products listed above, the Company has offered certain other products with ongoing performance obligations including mobile applications, incremental navigation and/or communication service subscriptions, aviation database subscriptions, and extended warranties that are individually immaterial.

 

The Company records revenue net of sales tax and variable consideration such as trade discounts and customer returns.  Payment is due typically within 90 days or less of shipment of product, or upon the grant of a given software license (as applicable). The Company records estimated reductions to revenue in the form of variable consideration 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, typically accrued for on a percentage of sales basis.
Deferred Revenues and Costs

Deferred Revenues and Costs

 

Deferred revenue consists primarily of the transaction price allocated to performance obligations that are recognized over a period of time basis as discussed in the Revenue Recognition portion of this footnote. Billings associated with such items are typically completed upon the transfer of control of promised products or services to the customer and recorded to accounts receivable until payment is received. Deferred costs primarily refer to the royalties incurred by the Company associated with the aforementioned unsatisfied performance obligations, which are amortized over the same period as the revenue is recognized. The Company typically pays the associated royalties either monthly or quarterly in arrears, on a per item shipped or installed basis.

 

The Company applies a practical expedient, as permitted within ASC 340, to expense as incurred the incremental costs to obtain a contract when the amortization period of the asset that would have otherwise been recognized is one year or less.
Shipping and Handling Costs

Shipping and Handling Costs

 

Shipping and handling activities are typically performed before the customer obtains control of the good, and the related costs are therefore expensed as incurred. Shipping and handling costs are included in cost of goods sold in the accompanying condensed consolidated financial statements.
Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Schedule of summarized financial information depicting the impact of the new revenue standard

The Company’s historical net cash flows provided by or used in operating, investing, and financing activities are not impacted by adoption of the new revenue standard.

  

    13-Weeks Ended April 1, 2017  
    As reported     Restated(1)     Impact  
Net sales   $ 638,546     $ 641,510     $ 2,964  
Gross profit     372,123       372,806       683  
Operating income     116,345       117,028       683  
Income tax (benefit)     (150,120 )     (150,029 )     91  
Net income   $ 237,812     $ 238,404     $ 592  
Diluted net income per share   $ 1.26     $ 1.26     $ —  

 

  (1) The Restated results presented above are restated under ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in our press release attached as Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606.

 

    December 30, 2017     December 31, 2016  
             
    As reported     Restated(2)     Impact     As reported     Restated(2)     Impact  
                                     
Current assets:                                                
Deferred costs   $ 48,312     $ 30,525     $ (17,787 )   $ 47,395     $ 34,665     $ (12,730 )
Total current assets     2,363,925       2,346,138       (17,787 )     2,263,016       2,250,286       (12,730 )
Deferred income taxes     199,343       195,981       (3,361 )     110,293       107,655       (2,638 )
Noncurrent deferred costs     73,851       33,029       (40,822 )     56,151       30,934       (25,217 )
Total assets   $ 5,010,260     $ 4,948,289     $ (61,971 )   $ 4,525,133     $ 4,484,549     $ (40,584 )
Current liabilities:                                                
Deferred revenue     139,681       103,140       (36,541 )     146,564       118,496       (28,068 )
Total current liabilities     828,656       792,115       (36,541 )     782,735       754,667       (28,068 )
Deferred income taxes     75,215       76,612       1,396       61,220       62,617       1,397  
Non-current deferred revenue     163,840       87,060       (76,780 )     140,407       91,238       (49,169 )
Retained earnings     2,368,874       2,418,444       49,570       2,056,702       2,092,221       35,519  
Accumulated other comprehensive income     56,045       56,428       382       (36,761 )     (37,024 )     (263 )
Total stockholders' equity     3,802,466       3,852,419       49,954       3,418,003       3,453,259       35,256  
Total liabilities and stockholders’ equity   $ 5,010,260     $ 4,948,289     $ (61,971 )   $ 4,525,133     $ 4,484,549     $ (40,584 )

  

    52-Weeks Ended December 30, 2017     53-Weeks Ended December 31, 2016  
             
    As reported     Restated(2)     Impact     As reported     Restated(2)     Impact  
Net sales   $ 3,087,004     $ 3,121,560     $ 34,556     $ 3,018,665     $ 3,045,797     $ 27,132  
Gross profit     1,783,164       1,797,941       14,777       1,679,570       1,688,525       8,955  
Operating income     668,860       683,637       14,777       623,909       632,864       8,955  
Income tax (benefit) provision     (12,661 )     (11,936 )     725       118,856       120,901       2,045  
Net income   $ 694,955     $ 709,007     $ 14,052     $ 510,814     $ 517,724     $ 6,910  
Diluted net income per share   $ 3.68     $ 3.76     $ 0.08     $ 2.70     $ 2.73     $ 0.03  

 

  (2) The Restated results presented above are restated under ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in Note 2, Summary of Significant Accounting Policies, in the notes to the consolidated financial statements of our fiscal 2017 Annual Report on Form 10-K filed with the SEC on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606.
Inventories (Tables)
 3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Schedule of inventories

The components of inventories consist of the following: 

 

    March 31,
2018		     December 30,
2017		  
             
Raw materials   $ 190,213     $ 179,659  
Work-in-process     84,431       75,754  
Finished goods     272,768       262,231  
Inventory, net of reserves   $ 547,412     $ 517,644  
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2018
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  
    Mar 31,
2018		     Apr 1,
2017		  
Numerator:            
Numerator for basic and diluted net income per share - net income   $ 129,374     $ 238,404  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,322       188,333  
                 
Effect of dilutive securities –                
stock options, stock appreciation rights and restricted stock units     970       698  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     189,292       189,031  
                 
Basic net income per share   $ 0.69     $ 1.27  
                 
Diluted net income per share   $ 0.68     $ 1.26  
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2018
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 March 31, 2018                                                
                                                 
Net sales   $ 144,258     $ 166,035     $ 113,554     $ 141,312     $ 145,713     $ 710,872  
Gross profit     93,285       96,601       66,683       61,012       108,954       426,535  
Operating income     43,822       33,374       13,131       3,468       48,407       142,202  
                                                 
13-Weeks Ended April 1, 2017                                                
                                                 
Net sales   $ 115,875     $ 137,831     $ 104,445     $ 160,488     $ 122,871     $ 641,510  
Gross profit     73,469       77,741       59,747       70,616       91,233       372,806  
Operating income     34,451       18,472       18,145       7,352       38,608       117,028  
Schedule of net sales and property and equipment, net by geographic area

Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

  

    Americas     APAC     EMEA     Total  
March 31, 2018                        
Net sales to external customers   $ 345,975     $ 118,985     $ 245,912     $ 710,872  
Property and equipment, net   $ 388,531     $ 176,245     $ 40,037     $ 604,813  
                                 
April 1, 2017                                
Net sales to external customers   $ 324,630     $ 91,545     $ 225,335     $ 641,510  
Property and equipment, net   $ 312,630     $ 152,804     $ 38,406     $ 503,840  
Warranty Reserves (Tables)
 3 Months Ended
Mar. 31, 2018
Product Warranties Disclosures [Abstract]  
Schedule of changes in the aggregate warranty reserve

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

 

    13-Weeks Ended  
    March 31,
2018		     April 1,
2017		  
             
Balance - beginning of period   $ 36,827     $ 37,233  
Accrual for products sold during the period     10,012       8,200  
Expenditures     (11,417 )     (11,006 )
Balance - end of period   $ 35,422     $ 34,427  
Marketable Securities (Tables)
 3 Months Ended
Mar. 31, 2018
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 March 31, 2018		  
    Total      Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 29,058     $ —     $ 29,058     $ —  
Agency securities     41,744       —       41,744       —  
Mortgage-backed securities     158,839       —       158,839       —  
Corporate securities     892,848       —       892,848       —  
Municipal securities     185,586       —       185,586       —  
Other     168,855       —       168,855       —  
Total   $ 1,476,930     $ —     $ 1,476,930     $ —  

 

    Fair Value Measurements as  
    of December 30, 2017  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 19,337     $ —     $ 19,337     $ —  
Agency securities     43,361       —       43,361       —  
Mortgage-backed securities     174,615       —       174,615       —  
Corporate securities     816,793       —       816,793       —  
Municipal securities     186,105       —       186,105       —  
Other     181,509       —       181,509       —  
Total   $ 1,421,720     $ —     $ 1,421,720     $ —  
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 March 31, 2018		  
                         
                         
    Amortized Cost     Gross Unrealized
Gains		     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ 29,439     $ —     $ (381 )   $ 29,058  
Agency securities     42,901       —       (1,156 )     41,745  
Mortgage-backed securities     166,458       6       (7,625 )     158,839  
Corporate securities     919,920       45       (27,117 )     892,848  
Municipal securities     188,728       14       (3,157 )     185,585  
Other     171,641       1       (2,787 )     168,855  
Total   $ 1,519,087     $ 66     $ (42,223 )   $ 1,476,930  

 

    Available-For-Sale Securities as
of December 30, 2017		  
                                 
                                 
    Amortized Cost     Gross Unrealized
Gains		     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ 19,591     $ —     $ (254 )   $ 19,337  
Agency securities     44,191       1       (831 )     43,361  
Mortgage-backed securities     180,470       13       (5,868 )     174,615  
Corporate securities     830,447       136       (13,790 )     816,793  
Municipal securities     187,999       110       (2,004 )     186,105  
Other     183,730       2       (2,223 )     181,509  
Total   $ 1,446,428     $ 262     $ (24,970 )   $ 1,421,720  
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 March 31, 2018 and December 30, 2017.

 

    As of March 31, 2018  
    Less than 12 Consecutive Months     12 Consecutive Months or Longer  
             
    Gross Unrealized
Losses		     Fair Value     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ (202 )   $ 19,748     $ (179 )   $ 6,319  
Agency securities     (243 )     16,022       (913 )     25,723  
Mortgage-backed securities     (711 )     17,631       (6,914 )     140,289  
Corporate securities     (11,562 )     538,556       (15,555 )     341,137  
Municipal securities     (1,786 )     139,591       (1,371 )     40,649  
Other     (2,784 )     136,448       (3 )     1,934  
Total   $ (17,288 )   $ 867,996     $ (24,935 )   $ 556,051  

 

    As of December 30, 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   $ (111 )   $ 12,966     $ (143 )   $ 6,371  
Agency securities     (168 )     16,097       (663 )     25,972  
Mortgage-backed securities     (503 )     19,628       (5,365 )     153,835  
Corporate securities     (4,562 )     439,174       (9,228 )     347,052  
Municipal securities     (1,027 )     125,819       (977 )     38,167  
Other     (2,219 )     136,147       (4 )     2,579  
Total   $ (8,590 )   $ 749,831     $ (16,380 )   $ 573,976  
Schedule of amortized cost and estimated fair value of marketable securities by contractual maturity

The amortized cost and fair value of marketable securities at March 31, 2018, by maturity, are shown below.

 

    Amortized Cost     Fair Value  
             
Due in one year or less   $ 168,370     $ 167,745  
Due after one year through five years     1,175,500       1,143,859  
Due after five years through ten years     160,650       151,195  
Due after ten years     14,567       14,131  
    $ 1,519,087     $ 1,476,930  
Accumulated Other Comprehensive Income (Tables)
 3 Months Ended
Mar. 31, 2018
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 period ended March 31, 2018:

 

    13-Weeks Ended March 31, 2018  
                   
    Foreign Currency
Translation Adjustment		     Net unrealized gains
(losses) on available-for-
sale securities		     Total  
                   
Beginning Balance   $ 79,292     $ (22,864 )   $ 56,428  
Other comprehensive income before reclassification, net of income tax benefit of $2,416     23,500       (14,856 )     8,644  
Amounts reclassified from accumulated other comprehensive income     —       (178 )     (178 )
Net current-period other comprehensive income     23,500       (15,034 )     8,466  
Reclassification of tax effects due to adoption of ASU 2018-02     0        (452 )     (452 )
Ending Balance   $ 102,792     $ (38,350 )   $ 64,442  
Schedule of reporting reclassifications out of AOCI

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week period ended March 31, 2018:

 

13-Weeks Ended March 31, 2018
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   $ (193 )   Other income (expense)
      371     Income tax benefit (provision)
             
    $ 178     Net of tax
Revenue (Tables)
 3 Months Ended
Mar. 31, 2018
Revenue  
Schedule of revenue disaggregated

Revenue disaggregated by the timing of transfer of the goods or services is presented in the table below:

 

    13-Weeks Ended  
    March 31, 2018     April 1, 2017  
Point in time   $ 671,263     $ 599,745  
Over time     39,609       41,765  
Net sales   $ 710,872     $ 641,510  
Schedule of deferred revenue and costs

Changes in deferred revenue and costs during the 13-weeks ended March 31, 2018 are presented below:

  

      13-Weeks Ended  
      March 31, 2018  
        Deferred Revenue(1)       Deferred Costs(2)  
Balance, beginning of period     $ 190,200     $ 63,554  
Deferrals in period       31,291       7,840  
Recognition of deferrals in period       (39,609 )     (9,639 )
Balance, end of period     $ 181,882     $ 61,755  

 

(1) Deferred revenue is comprised of both Deferred revenue and Noncurrent deferred revenue per the Condensed Consolidated Balance Sheets

 

(2) Deferred costs are comprised of both Deferred costs and Noncurrent deferred costs per the Condensed Consolidated Balance Sheets
Summary of Significant Accounting Policies (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Dec. 30, 2017
Dec. 31, 2016
Net sales $ 710,872 $ 641,510    
Gross profit 426,535 372,806    
Operating income 142,202 117,028    
Income tax (benefit) provision 24,606 (150,029)    
Net income $ 129,374 $ 238,404    
Diluted net income per share (in dollars per share) $ 0.68 $ 1.26    
Current assets:        
Deferred costs $ 29,327   $ 30,525  
Total current assets 2,191,283   2,346,138  
Noncurrent deferred income tax 199,090   195,981  
Noncurrent deferred costs 32,428   33,029  
Total assets 4,855,222   4,948,289  
Current liabilities:        
Deferred revenue 98,660   103,140  
Total current liabilities 557,843   792,115  
Deferred income taxes 74,714   76,612  
Non-current deferred revenue 83,222   87,060  
Retained earnings 2,546,400   2,418,444  
Accumulated other comprehensive income (loss) 64,442   56,428  
Total stockholders' equity 3,997,193   3,852,419  
Total liabilities and stockholders' equity $ 4,855,222   4,948,289  
As Reported [Member]        
Net sales   $ 638,546 3,087,004 $ 3,018,665
Gross profit   372,123 1,783,164 1,679,570
Operating income   116,345 668,860 623,909
Income tax (benefit) provision   (150,120) (12,661) 118,856
Net income   $ 237,812 $ 694,955 $ 510,814
Diluted net income per share (in dollars per share)   $ 1.26 $ 3.68 $ 2.7
Current assets:        
Deferred costs     $ 48,312 $ 47,395
Total current assets     2,363,925 2,263,016
Noncurrent deferred income tax     199,343 110,293
Noncurrent deferred costs     73,851 56,151
Total assets     5,010,260 4,525,133
Current liabilities:        
Deferred revenue     139,681 146,564
Total current liabilities     828,656 782,735
Deferred income taxes     75,215 61,220
Non-current deferred revenue     163,840 140,407
Retained earnings     2,368,874 2,056,702
Accumulated other comprehensive income (loss)     56,045 (36,761)
Total stockholders' equity     3,802,466 3,418,003
Total liabilities and stockholders' equity     5,010,260 4,525,133
Restatement [Member]        
Net sales   $ 641,510 [1] 3,121,560 [2] 3,045,797 [2]
Gross profit   372,806 [1] 1,797,941 [2] 1,688,525 [2]
Operating income   117,028 [1] 683,637 [2] 632,864 [2]
Income tax (benefit) provision   (150,029) [1] (11,936) [2] 120,901 [2]
Net income   $ 238,404 [1] $ 709,007 [2] $ 517,724 [2]
Diluted net income per share (in dollars per share)   $ 1.26 [1] $ 3.76 [2] $ 2.73 [2]
Current assets:        
Deferred costs [2]     $ 30,525 $ 34,665
Total current assets [2]     2,346,138 2,250,286
Noncurrent deferred income tax [2]     195,981 107,655
Noncurrent deferred costs [2]     33,029 30,934
Total assets [2]     4,948,289 4,484,549
Current liabilities:        
Deferred revenue [2]     103,140 118,496
Total current liabilities [2]     792,115 754,667
Deferred income taxes [2]     76,612 62,617
Non-current deferred revenue [2]     87,060 91,238
Retained earnings [2]     2,418,444 2,092,221
Accumulated other comprehensive income (loss) [2]     56,428 (37,024)
Total stockholders' equity [2]     3,852,419 3,453,259
Total liabilities and stockholders' equity [2]     4,948,289 4,484,549
Impact [Member]        
Net sales   $ 2,964 34,556 27,132
Gross profit   683 14,777 8,955
Operating income   683 14,777 8,955
Income tax (benefit) provision   91 725 2,045
Net income   $ 592 $ 14,052 $ 6,910
Diluted net income per share (in dollars per share)   $ 0.08 $ 0.03
Current assets:        
Deferred costs     $ (17,787) $ (12,730)
Total current assets     (17,787) (12,730)
Noncurrent deferred income tax     (3,361) (2,638)
Noncurrent deferred costs     (40,822) (25,217)
Total assets     (61,971) (40,584)
Current liabilities:        
Deferred revenue     (36,541) (28,068)
Total current liabilities     (36,541) (28,068)
Deferred income taxes     1,396 1,397
Non-current deferred revenue     (76,780) (49,169)
Retained earnings     49,570 35,519
Accumulated other comprehensive income (loss)     382 (263)
Total stockholders' equity     49,954 35,256
Total liabilities and stockholders' equity     $ (61,971) $ (40,584)
[1] The Restated results presented above are restated under ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in our press release attached as Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606.
[2] The Restated results presented above are restated under ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in Note 2, Summary of Significant Accounting Policies, in the notes to the consolidated financial statements of our fiscal 2017 Annual Report on Form 10-K filed with the SEC on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606.
Inventories (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Inventory Disclosure [Abstract]    
Raw materials $ 190,213 $ 179,659
Work-in-process 84,431 75,754
Finished goods 272,768 262,231
Inventory, net of reserves $ 547,412 $ 517,644
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Numerator:    
Numerator for basic and diluted net income per share - net income $ 129,374 $ 238,404
Denominator:    
Denominator for basic net income per share - weighted-average common shares 188,322 188,333
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units 970 698
Denominator for diluted net income per share - adjusted weighted-average common shares 189,292 189,031
Basic net income per share (in dollars per share) $ 0.69 $ 1.27
Diluted net income per share (in dollars per share) $ 0.68 $ 1.26
Earnings Per Share (Details Narrative) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Net income per share:    
Anti-dilutive stock options, stock appreciation rights and restricted stock units 0 2,593
Shares issued as a result of exercises and releases of equity awards 332 150
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Net sales $ 710,872 $ 641,510
Gross profit 426,535 372,806
Operating income 142,202 117,028
Outdoor [Member]    
Net sales 144,258 115,875
Gross profit 93,285 73,469
Operating income 43,822 34,451
Fitness [Member]    
Net sales 166,035 137,831
Gross profit 96,601 77,741
Operating income 33,374 18,472
Marine [Member]    
Net sales 113,554 104,445
Gross profit 66,683 59,747
Operating income 13,131 18,145
Auto [Member]    
Net sales 141,312 160,488
Gross profit 61,012 70,616
Operating income 3,468 7,352
Aviation [Member]    
Net sales 145,713 122,871
Gross profit 108,954 91,233
Operating income $ 48,407 $ 38,608
Segment Information (Details 1) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Dec. 30, 2017
Net sales to external customers $ 710,872 $ 641,510  
Property and equipment, net 604,813 503,840 $ 595,684
Americas [Member]      
Net sales to external customers 345,975 324,630  
Property and equipment, net 388,531 312,630  
APAC [Member]      
Net sales to external customers 118,985 91,545  
Property and equipment, net 176,245 152,804  
EMEA [Member]      
Net sales to external customers 245,912 225,335  
Property and equipment, net $ 40,037 $ 38,406  
Segment Information (Details Narrative)
 3 Months Ended
Mar. 31, 2018
Segment
Segment Reporting [Abstract]  
Number of reportable segments 5
Warranty Reserves (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]    
Balance - beginning of period $ 36,827 $ 37,233
Accrual for products sold during the period 10,012 8,200
Expenditures (11,417) (11,006)
Balance - end of period $ 35,422 $ 34,427
Warranty Reserves (Details Narrative)
 3 Months Ended
Mar. 31, 2018
Minimum [Member]  
Product warranty term 1 year
Maximum [Member]  
Product warranty term 3 years
Commitments and Contingencies (Details Narrative)
$ in Thousands
Mar. 31, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Aggregate amount of purchase orders and other commitments $ 325,200
Income Taxes (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Income Tax Disclosure [Abstract]    
Income tax expense $ 24,606 $ (150,029)
Income tax benefit   $ 168,755
Effective income tax rate 16.00% (169.80%)
Marketable Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total $ 1,476,930 $ 1,421,720
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 29,058 19,337
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 41,745 43,361
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 158,839 174,615
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 892,848 816,793
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 185,585 186,105
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 168,855 181,509
Recurring Basis [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 1,476,930 1,421,720
Recurring Basis [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 29,058 19,337
Recurring Basis [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 41,744 43,361
Recurring Basis [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 158,839 174,615
Recurring Basis [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 892,848 816,793
Recurring Basis [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 185,586 186,105
Recurring Basis [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 168,855 181,509
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 1,476,930 1,421,720
Recurring Basis [Member] | Level 2 [Member] | U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 29,058 19,337
Recurring Basis [Member] | Level 2 [Member] | Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 41,744 43,361
Recurring Basis [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 158,839 174,615
Recurring Basis [Member] | Level 2 [Member] | Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 892,848 816,793
Recurring Basis [Member] | Level 2 [Member] | Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 185,586 186,105
Recurring Basis [Member] | Level 2 [Member] | Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale securities, total 168,855 181,509
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
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 30, 2017
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost $ 1,519,087 $ 1,446,428
Gross Unrealized Gains 66 262
Gross Unrealized Losses (42,223) 24,970
Fair Value 1,476,930 1,421,720
U.S.Treasury Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 29,439 19,591
Gross Unrealized Gains
Gross Unrealized Losses (381) (254)
Fair Value 29,058 19,337
Agency Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 42,901 44,191
Gross Unrealized Gains 1
Gross Unrealized Losses (1,156) (831)
Fair Value 41,745 43,361
Mortgage-Backed Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 166,458 180,470
Gross Unrealized Gains 6 13
Gross Unrealized Losses (7,625) (5,868)
Fair Value 158,839 174,615
Corporate Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 919,920 830,447
Gross Unrealized Gains 45 136
Gross Unrealized Losses (27,117) (13,790)
Fair Value 892,848 816,793
Municipal Securities [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 188,728 187,999
Gross Unrealized Gains 14 110
Gross Unrealized Losses (3,157) (2,004)
Fair Value 185,585 186,105
Other [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Amortized Cost 171,641 183,730
Gross Unrealized Gains 1 2
Gross Unrealized Losses (2,787) (2,223)
Fair Value $ 168,855 $ 181,509
Marketable Securities (Details 2) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 30, 2017
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months $ (17,288) $ (8,590)
Fair Value Less than 12 Consecutive Months 867,996 749,831
Gross Unrealized Losses 12 Consecutive Months or Longer (24,935) (16,380)
Fair Value 12 Consecutive Months or Longer 556,051 573,976
U.S.Treasury Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (202) (111)
Fair Value Less than 12 Consecutive Months 19,748 12,966
Gross Unrealized Losses 12 Consecutive Months or Longer (179) (143)
Fair Value 12 Consecutive Months or Longer 6,319 6,371
Agency Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (243) (168)
Fair Value Less than 12 Consecutive Months 16,022 16,097
Gross Unrealized Losses 12 Consecutive Months or Longer (913) (663)
Fair Value 12 Consecutive Months or Longer 25,723 25,972
Mortgage-Backed Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (711) (503)
Fair Value Less than 12 Consecutive Months 17,631 19,628
Gross Unrealized Losses 12 Consecutive Months or Longer (6,914) (5,365)
Fair Value 12 Consecutive Months or Longer 140,289 153,835
Corporate Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (11,562) (4,562)
Fair Value Less than 12 Consecutive Months 538,556 439,174
Gross Unrealized Losses 12 Consecutive Months or Longer (15,555) (9,228)
Fair Value 12 Consecutive Months or Longer 341,137 347,052
Municipal Securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (1,786) (1,027)
Fair Value Less than 12 Consecutive Months 139,591 125,819
Gross Unrealized Losses 12 Consecutive Months or Longer (1,371) (977)
Fair Value 12 Consecutive Months or Longer 40,649 38,167
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (2,784) (2,219)
Fair Value Less than 12 Consecutive Months 136,448 136,147
Gross Unrealized Losses 12 Consecutive Months or Longer (3) (4)
Fair Value 12 Consecutive Months or Longer $ 1,934 $ 2,579
Marketable Securities (Details 3) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 30, 2017
Amortized Cost    
Due in one year or less $ 168,370  
Due after one year through five years 1,175,500  
Due after five years through ten years 160,650  
Due after ten years 14,567  
Total 1,519,087 $ 1,446,428
Fair Value    
Due in one year or less 167,745  
Due after one year through five years 1,143,859  
Due after five years through ten years 151,195  
Due after ten years 14,131  
Total $ 1,476,930 $ 1,421,720
Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Net sales $ 710,872 $ 641,510
Point in Time [Member]    
Net sales 671,263 599,745
Over Time [Member]    
Net sales $ 39,609 $ 41,765
Revenue (Details 1)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
USD ($)
Movement in Deferred Revenue [Roll Forward]  
Balance, beginning of period $ 190,200 [1]
Deferrals in period 31,291 [1]
Recognition of deferrals in period (39,609) [1]
Balance, end of period 181,882 [1]
Movement in Deferred Costs [Roll Forward]  
Balance, beginning of period 63,554 [2]
Deferrals in period 7,840 [2]
Recognition of deferrals in period (9,639) [2]
Balance, end of period $ 61,755 [2]
[1] Deferred revenue is comprised of both Deferred revenue and Noncurrent deferred revenue per the Condensed Consolidated Balance Sheets.
[2] Deferred costs are comprised of both Deferred costs and Noncurrent deferred costs per the Condensed Consolidated Balance Sheets.
Accumulated Other Comprehensive Income (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
USD ($)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]  
Beginning Balance $ 79,292
Other comprehensive income before reclassification, net of income tax benefit of $2,416 23,500
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive income 23,500
Ending Balance 102,792
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]  
Beginning Balance (22,864)
Other comprehensive income before reclassification, net of income tax benefit of $2,416 (14,856)
Amounts reclassified from accumulated other comprehensive income (178)
Net current-period other comprehensive income (15,034)
Reclassification of tax effects due to adoption of ASU 2018-02 (452)
Ending Balance (38,350)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]  
Beginning Balance 56,428
Other comprehensive income before reclassification, net of income tax benefit of $2,416 8,644
Amounts reclassified from accumulated other comprehensive income (178)
Net current-period other comprehensive income 8,466
Reclassification of tax effects due to adoption of ASU 2018-02 (452)
Ending Balance $ 64,442
Accumulated Other Comprehensive Income (Details 1) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Other income (expense) $ 11,778 $ (28,653)
Income tax benefit (provision) (24,606) $ 150,029
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]    
Other income (expense) (193)  
Income tax benefit (provision) 371  
Net of tax $ 178