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Document and Entity Information - shares
shares in Thousands
 6 Months Ended
Jun. 30, 2018
Jul. 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 Jun. 30, 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 Q2  
Document Fiscal Year Focus 2018  
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 30, 2017
Current assets:    
Cash and cash equivalents $ 946,656 $ 891,488
Marketable securities 173,318 161,687
Accounts receivable, net 533,076 590,882
Inventories 501,490 517,644
Deferred costs 31,924 30,525
Prepaid expenses and other current assets 137,118 153,912
Total current assets 2,323,582 2,346,138
Property and equipment, net 637,245 595,684
Restricted cash 211 271
Marketable securities 1,302,447 1,260,033
Deferred income taxes 188,101 195,981
Noncurrent deferred costs 30,663 33,029
Intangible assets, net 409,459 409,801
Other assets 97,012 107,352
Total assets 4,988,720 4,948,289
Current liabilities:    
Accounts payable 166,499 169,640
Salaries and benefits payable 95,969 102,802
Accrued warranty costs 38,429 36,827
Accrued sales program costs 65,477 93,250
Deferred revenue 98,526 103,140
Accrued royalty costs 28,209 32,204
Accrued advertising expense 29,059 30,987
Other accrued expenses 66,776 93,652
Income taxes payable 40,016 33,638
Dividend payable 300,187 95,975
Total current liabilities 929,147 792,115
Deferred income taxes 74,092 76,612
Noncurrent income taxes 140,584 138,295
Noncurrent deferred revenue 84,156 87,060
Other liabilities 1,860 1,788
Stockholders' equity:    
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 188,797 shares outstanding at June 30, 2018; and 188,189 shares outstanding at December 30, 2017; 17,979 17,979
Additional paid-in capital 1,828,515 1,828,386
Treasury stock (433,959) (468,818)
Retained earnings 2,336,614 2,418,444
Accumulated other comprehensive income 9,732 56,428
Total stockholders' equity 3,758,881 3,852,419
Total liabilities and stockholders' equity $ 4,988,720 $ 4,948,289
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - SFr / shares
shares in Thousands
Jun. 30, 2018
Dec. 30, 2017
Common shares, authorized 198,077 198,077
Common shares, issued 198,077 198,077
Common shares, outstanding 188,797 188,189
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 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Income Statement [Abstract]        
Net sales $ 894,452 $ 831,486 $ 1,605,325 $ 1,472,996
Cost of goods sold 371,182 347,356 655,520 616,060
Gross profit 523,270 484,130 949,805 856,936
Advertising expense 43,549 42,009 68,861 73,533
Selling, general and administrative expense 120,500 105,251 237,564 207,303
Research and development expense 141,713 127,248 283,670 249,450
Total operating expense 305,762 274,508 590,095 530,286
Operating income 217,508 209,622 359,710 326,650
Other income (expense):        
Interest income 10,995 9,281 21,222 17,724
Foreign currency gains (losses) 2,647 15,110 3,463 (22,387)
Other income 4,918 314 5,653 715
Total other income (expense) 18,560 24,705 30,338 (3,948)
Income before income taxes 236,068 234,327 390,048 322,702
Income tax provision (benefit) 45,726 57,348 70,333 (92,680)
Net income $ 190,342 $ 176,979 $ 319,715 $ 415,382
Net income per share:        
Basic (in dollars per share) $ 1.01 $ 0.94 $ 1.70 $ 2.21
Diluted (in dollars per share) $ 1.00 $ 0.94 $ 1.69 $ 2.20
Weighted average common shares outstanding:        
Basic (in shares) 188,542 187,757 188,432 187,974
Diluted (in shares) 189,461 188,492 189,377 188,691
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Statement of Comprehensive Income [Abstract]        
Net income $ 190,342 $ 176,979 $ 319,715 $ 415,382
Foreign currency translation adjustment (49,868) 3,289 (26,368) 65,903
Change in fair value of available-for-sale marketable securities, net of deferred taxes (4,842) 4,501 (19,876) 11,402
Comprehensive income $ 135,632 $ 184,769 $ 273,471 $ 492,687
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Dec. 30, 2017
Operating activities:          
Net income $ 190,342 $ 176,979 $ 319,715 $ 415,382  
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation     31,800 29,558  
Amortization     16,420 13,273  
Gain on sale or disposal of property and equipment     (1,042) (56)  
Provision for doubtful accounts     616 351  
Provision for obsolete and slow moving inventories     11,725 11,072  
Unrealized foreign currency loss     2,401 26,325  
Deferred income taxes     11,000 (159,384)  
Stock compensation expense     27,747 20,385  
Realized losses on marketable securities     231 584  
Changes in operating assets and liabilities, net of acquisitions:          
Accounts receivable     48,099 23,785  
Inventories     (4,666) (34,621)  
Other current and non-current assets     (4,841) (6,328)  
Accounts payable     1,618 (20,942)  
Other current and non-current liabilities     (49,237) (48,162)  
Deferred revenue     (7,483) (15,637)  
Deferred costs     962 2,890  
Income taxes payable     32,998 5,352  
Net cash provided by operating activities     438,063 263,827  
Investing activities:          
Purchases of property and equipment     (93,072) (39,812)  
Proceeds from sale of property and equipment     1,282 121  
Purchase of intangible assets     (2,452) (6,336)  
Purchase of marketable securities     (209,387) (243,880)  
Redemption of marketable securities     127,152 278,719  
Acquisitions, net of cash acquired     (9,417) (7,500)  
Net cash used in investing activities     (185,894) (18,688)  
Financing activities:          
Dividends     (196,086) (191,691)  
Proceeds from issuance of treasury stock related to equity awards     14,142 10,316  
Purchase of treasury stock related to equity awards     (6,900) (3,582)  
Purchase of treasury stock under share repurchase plan     0 (63,957)  
Net cash used in financing activities     (188,844) (248,914)  
Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (8,217) 16,456  
Net increase in cash, cash equivalents, and restricted cash     55,108 12,681  
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 $ 946,867 $ 859,677 $ 946,867 $ 859,677 $ 891,759
Accounting Policies
 6 Months Ended
Jun. 30, 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 and 26-week periods ended June 30, 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 June 30, 2018 and July 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 beginning in the 2018 fiscal year, 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 beginning in the 2018 fiscal year, 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 beginning in the 2018 fiscal year 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 July 1, 2017     26-Weeks Ended July 1, 2017  
                                     
    As reported     Restated(1)     Impact     As reported     Restated(1)     Impact  
Net sales   $ 816,885     $ 831,486     $ 14,601     $ 1,455,431     $ 1,472,996     $ 17,565  
Gross profit     477,858       484,130       6,272       849,981       856,936       6,955  
Operating income     203,350       209,622       6,272       319,695       326,650       6,955  
Income tax (benefit)     57,105       57,348       243       (93,015 )     (92,680 )     335  
Net income   $ 170,950     $ 176,979     $ 6,029     $ 408,762     $ 415,382     $ 6,620  
Diluted net income per share   $ 0.91     $ 0.94     $ 0.03     $ 2.17     $ 2.20     $ 0.03  

 

  (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       (3,362 )     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       1,397       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       383       (36,761 )     (37,024 )     (263 )
Total stockholders' equity     3,802,466       3,852,419       49,953       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 beginning in the 2018 fiscal year. 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 beginning in the 2018 fiscal year. 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 2018 fiscal year, 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 beginning in the 2018 fiscal year, resulting in reclassification of approximately $452 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 26-week period ended June 30, 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
 6 Months Ended
Jun. 30, 2018
Inventory Disclosure [Abstract]  
Inventories
2. Inventories

  

The components of inventories consist of the following:

  

    June 30,     December 30,  
    2018     2017  
             
Raw materials   $ 190,524     $ 179,659  
Work-in-process     85,811       75,754  
Finished goods     225,155       262,231  
Inventories   $ 501,490     $ 517,644  
Earnings Per Share
 6 Months Ended
Jun. 30, 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  
    June 30,     July 1,  
    2018     2017  
Numerator:                
Numerator for basic and diluted net income per share - net income   $ 190,342     $ 176,979  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,542       187,757  
                 
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     919       735  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     189,461       188,492  
                 
Basic net income per share   $ 1.01     $ 0.94  
                 
Diluted net income per share   $ 1.00     $ 0.94  

 

    26-Weeks Ended  
    June 30,     July 1,  
    2018     2017  
Numerator:                
Numerator for basic and diluted net income per share - net income   $ 319,715     $ 415,382  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,432       187,974  
                 
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     945       717  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     189,377       188,691  
                 
Basic net income per share   $ 1.70     $ 2.21  
                 
Diluted net income per share   $ 1.69     $ 2.20  

  

There were no anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) outstanding during the 13-week period ended June 30, 2018 and 1,057 anti-dilutive equity awards outstanding during the 13-week period ended July 1, 2017.

  

There were no anti-dilutive equity awards outstanding during the 26-week period ended June 30, 2018 and 1,825 anti-dilutive equity awards outstanding during the 26-week period ended July 1, 2017.

  

There were 46 and 9 net shares issued as a result of exercises and releases of equity awards for the 13-week periods ended June 30, 2018 and July 1, 2017, respectively.

  

There were 378 and 159 net shares issued as a result of exercises and releases of equity awards for the 26-week periods ended June 30, 2018 and July 1, 2017, respectively.

  

There were 230 employee stock purchase plan (ESPP) shares issued from outstanding Treasury stock during the 13-week and 26-week periods ended June 30, 2018.

 

There were 248 ESPP shares issued from outstanding Treasury stock during the 13-week and 26-week periods ended July 1, 2017.
Segment Information
 6 Months Ended
Jun. 30, 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 June 30, 2018                                                
                                                 
Net sales   $ 201,640     $ 225,095     $ 134,583     $ 180,128     $ 153,006     $ 894,452  
Gross profit     128,872       126,431       78,785       75,452       113,730       523,270  
Operating income     71,916       52,548       27,768       12,612       52,664       217,508  
                                                 
13-Weeks Ended July 1, 2017                                                
                                                 
Net sales   $ 194,776     $ 181,022     $ 108,545     $ 223,083     $ 124,060     $ 831,486  
Gross profit     127,813       102,139       62,368       99,309       92,501       484,130  
Operating income     74,284       37,487       24,295       34,198       39,358       209,622  
                                                 
26-Weeks Ended June 30, 2018                                                
                                                 
Net sales   $ 345,899     $ 391,130     $ 248,138     $ 321,439     $ 298,719     $ 1,605,325  
Gross profit     222,158       223,032       145,468       136,463       222,684       949,805  
Operating income     115,739       85,922       40,899       16,079       101,071       359,710  
                                                 
26-Weeks Ended July 1, 2017                                                
                                                 
Net sales   $ 310,652     $ 318,852     $ 212,990     $ 383,571     $ 246,931     $ 1,472,996  
Gross profit     201,282       179,879       122,116       169,925       183,734       856,936  
Operating income     108,735       55,959       42,440       41,550       77,966       326,650  

 

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 by geographic region were as follows for the 13-week and 26-week periods ended June 30, 2018 and July 1, 2017. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

 

    13-Weeks Ended     26-Weeks Ended  
    June 30,     July 1,     June 30,     July 1,  
    2018     2017     2018     2017  
Americas   $ 437,116     $ 401,409     $ 783,091     $ 726,038  
EMEA     309,116       314,649       555,029       539,984  
APAC     148,220       115,428       267,205       206,974  
Net sales to external customers   $ 894,452     $ 831,486     $ 1,605,325     $ 1,472,996  

 

Net property and equipment by geographic region as of June 30, 2018 and July 1, 2017 are presented below.

 

    Americas     APAC     EMEA     Total  
June 30, 2018                                
Property and equipment, net   $ 395,638     $ 202,455     $ 39,152     $ 637,245  
                                 
July 1, 2017                                
Property and equipment, net   $ 326,125     $ 153,277     $ 37,888     $ 517,290  
Warranty Reserves
 6 Months Ended
Jun. 30, 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  
    June 30,     July 1,  
    2018     2017  
             
Balance - beginning of period   $ 35,422     $ 34,427  
Accrual for products sold during the period     17,113       15,747  
Expenditures     (14,106 )     (13,162 )
Balance - end of period   $ 38,429     $ 37,012  

  

    26-Weeks Ended  
    June 30,     July 1,  
    2018     2017  
             
Balance - beginning of period   $ 36,827     $ 37,233  
Accrual for products sold during the period     27,125       23,947  
Expenditures     (25,523 )     (24,168 )
Balance - end of period   $ 38,429     $ 37,012  
Commitments and Contingencies
 6 Months Ended
Jun. 30, 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 June 30, 2018 was approximately $343,000. We cannot determine the aggregate amount of such purchase orders that represent contractual obligations because purchase orders may represent authorizations to purchase rather than binding agreements. Our purchase orders are based on our current needs and are typically fulfilled within short periods of time.

 

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 June 30, 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
 6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
7. Income Taxes

  

The Company recorded income tax expense of $45,726 in the 13-week period ended June 30, 2018, compared to income tax expense of $57,348 in the 13-week period ended July 1, 2017, which included tax expense of $7,275 associated with the expiration of share-based awards. The effective tax rate was 19.4% in the second quarter of 2018, compared to 24.5% in the second quarter of 2017. Excluding the effect of the $7,275 tax expense associated with the expiration of share-based awards in second quarter of 2017, the second quarter of 2018 effective tax rate decreased 200 basis points compared to the effective tax rate in the prior year quarter primarily due to the reduction of the U.S. corporate tax rate.

  

The Company recorded income tax expense of $70,333 in the first half of 2018, compared to an income tax benefit of $92,680 in the first half of 2017, which included tax expense of $7,275 associated with the expiration of share-based awards and an income tax benefit of $168,755 primarily related to the revaluation of certain Switzerland deferred tax assets resulting from the Company’s election in the first quarter of 2017 to align certain Switzerland corporate tax positions with international tax initiatives. The effective tax rate was 18.0% in the first half of 2018, compared to (28.7%) in the first half of 2017. Excluding the income tax benefit of $168,755 primarily related to the revaluation of Switzerland deferred tax assets, and the $7,275 tax expense due to the expiration of share-based awards, the effective tax rate for the first half of 2018 decreased 330 basis points compared to the effective tax rate in the first half of 2017 primarily due to the reduction of the U.S. corporate tax rate.

  

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 legislations, the SEC 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 second 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 such potential adjustments in future periods will materially impact the Company’s financial condition or result of operations.
Marketable Securities
 6 Months Ended
Jun. 30, 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 June 30, 2018		  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 26,521     $ -     $ 26,521     $ -  
Agency securities     41,194       -       41,194       -  
Mortgage-backed securities     149,401       -       149,401       -  
Corporate securities     915,688       -       915,688       -  
Municipal securities     187,932       -       187,932       -  
Other     155,029       -       155,029       -  
Total   $ 1,475,765     $ -     $ 1,475,765     $ -  

  

    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 June 30, 2018		  
       
    Amortized Cost     Gross Unrealized
Gains		     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ 26,944     $ -     $ (423 )   $ 26,521  
Agency securities     42,400       -       (1,206 )     41,194  
Mortgage-backed securities     157,421       3       (8,023 )     149,401  
Corporate securities     947,474       55       (31,841 )     915,688  
Municipal securities     190,976       20       (3,064 )     187,932  
Other     158,041       -       (3,012 )     155,029  
Total   $ 1,523,256     $ 78     $ (47,569 )   $ 1,475,765  

  

    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 26-week period ended June 30, 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 as of June 30, 2018 were $1,470,296 and $1,422,727, respectively. Approximately 83% of securities in our portfolio were at an unrealized loss position as of June 30, 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 June 30, 2018 and December 30, 2017.

  

    As of June 30, 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   $ (242 )   $ 17,223     $ (181 )   $ 6,301  
Agency securities     (265 )     15,500       (941 )     25,695  
Mortgage-backed securities     (414 )     10,473       (7,609 )     138,374  
Corporate securities     (13,208 )     555,067       (18,633 )     343,384  
Municipal securities     (1,774 )     140,340       (1,290 )     40,516  
Other     (2,679 )     110,889       (333 )     18,965  
Total   $ (18,582 )   $ 849,492     $ (28,987 )   $ 573,235  

  

    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 June 30, 2018, by maturity, are shown below.

 

    Amortized Cost     Fair Value  
             
Due in one year or less   $ 174,038     $ 173,318  
Due after one year through five years     1,218,992       1,181,277  
Due after five years through ten years     130,226       121,170  
    $ 1,523,256     $ 1,475,765  
Accumulated Other Comprehensive Income
 6 Months Ended
Jun. 30, 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 and 26-week periods ended June 30, 2018:

 

    13-Weeks Ended June 30, 2018  
    Foreign Currency
Translation Adjustment		     Net unrealized gains
(losses) on available-for-
sale securities		     Total  
Beginning Balance   $ 102,792     $ (38,350 )   $ 64,442  
Other comprehensive income before reclassification, net of income tax benefit of $492     (49,868 )     (4,874 )     (54,742 )
Amounts reclassified from accumulated other comprehensive income     -       32       32  
Net current-period other comprehensive income     (49,868 )     (4,842 )     (54,710 )
Reclassification of tax effects due to adoption of ASU 2018-02     -       -       -  
Ending Balance   $ 52,924     $ (43,192 )   $ 9,732  

 

    26-Weeks Ended June 30, 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 $2,907     (26,368 )     (20,137 )     (46,505 )
Amounts reclassified from accumulated other comprehensive income     -       261       261  
Net current-period other comprehensive income     (26,368 )     (19,876 )     (46,244 )
Reclassification of tax effects due to adoption of ASU 2018-02     -       (452 )     (452 )
Ending Balance   $ 52,924     $ (43,192 )   $ 9,732  

 

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 26-week periods ended June 30, 2018:

 

13-Weeks Ended June 30, 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   $ (37 )   Other income (expense)
      5     Income tax benefit (provision)
    $ (32 )   Net of tax

 

26-Weeks Ended June 30, 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   $ (231 )   Other income (expense)
      (30 )   Income tax benefit (provision)
    $ (261 )   Net of tax
Revenue
 6 Months Ended
Jun. 30, 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. The auto OEM and auto PND major product categories comprised 30% and 70%, respectively, of the auto segment revenue presented in Note 4 for the 13-weeks ended June 30, 2018 and July 1, 2017. Auto OEM comprised 33% and 31% of auto segment revenue for the 26-weeks ended June 30, 2018 and July 1, 2017, respectively, while auto PND comprised 67% and 69% of auto segment revenue during the same respective periods. 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     26-Weeks Ended  
    June 30,     July 1,     June 30,     July 1,  
    2018     2017     2018     2017  
Point in time   $ 854,260     $ 789,867     $ 1,525,524     $ 1,389,612  
Over time     40,192       41,619       79,801       83,384  
Net sales   $ 894,452     $ 831,486     $ 1,605,325     $ 1,472,996  

 

 

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 26-weeks ended June 30, 2018 are presented below: 

 

    26-Weeks Ended  
    June 30,  
    2018  
    Deferred Revenue(1)     Deferred Costs(2)  
             
Balance, beginning of period   $ 190,200     $ 63,554  
Deferrals in period     72,283       18,170  
Recognition of deferrals in period     (79,801 )     (19,137 )
Balance, end of period   $ 182,682     $ 62,587  
                 
(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 $79,801 of deferred revenue recognized in the 26-weeks ended June 30, 2018, $59,759 was deferred as of the beginning of the period.

 

Approximately two-thirds of the $182,682 of deferred revenue at the end of the period, June 30, 2018, is recognized ratably over a period of three years or less.
Recently Issued Accounting Pronouncements Not Yet Adopted
 6 Months Ended
Jun. 30, 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. The FASB subsequently issued Accounting Standards Update No. 2018-10, which includes clarifications and improvements to ASU 2016-02 (collectively, the “new lease standard”). The new lease standard 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. Additional footnote disclosures related to leases will also be required. The new lease standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted.

  

The Company plans to adopt Topic 842 effective at the beginning of the 2019 fiscal year using the modified retrospective approach. The Company plans on electing the package of transitional practical expedients upon adoption which, among other provisions, allows the Company to carry forward historical lease classification. The Company is also in the process of implementing changes to accounting policies, processes, systems, and internal controls. The new standard will result in increases to the assets and liabilities on the Company’s consolidated balance sheets. The Company is currently evaluating the full impact of adopting the new standard.

  

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)
 6 Months Ended
Jun. 30, 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 and 26-week periods ended June 30, 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 June 30, 2018 and July 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 beginning in the 2018 fiscal year, 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 beginning in the 2018 fiscal year, 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 beginning in the 2018 fiscal year 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 July 1, 2017     26-Weeks Ended July 1, 2017  
                                     
    As reported     Restated(1)     Impact     As reported     Restated(1)     Impact  
Net sales   $ 816,885     $ 831,486     $ 14,601     $ 1,455,431     $ 1,472,996     $ 17,565  
Gross profit     477,858       484,130       6,272       849,981       856,936       6,955  
Operating income     203,350       209,622       6,272       319,695       326,650       6,955  
Income tax (benefit)     57,105       57,348       243       (93,015 )     (92,680 )     335  
Net income   $ 170,950     $ 176,979     $ 6,029     $ 408,762     $ 415,382     $ 6,620  
Diluted net income per share   $ 0.91     $ 0.94     $ 0.03     $ 2.17     $ 2.20     $ 0.03  

 

  (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       (3,362 )     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       1,397       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       383       (36,761 )     (37,024 )     (263 )
Total stockholders' equity     3,802,466       3,852,419       49,953       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 beginning in the 2018 fiscal year. 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 beginning in the 2018 fiscal year. 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 2018 fiscal year, 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 beginning in the 2018 fiscal year, resulting in reclassification of approximately $452 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)
 6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Schedule of financial information depicting the impact of the new revenue standard

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 July 1, 2017     26-Weeks Ended July 1, 2017  
                                     
    As reported     Restated(1)     Impact     As reported     Restated(1)     Impact  
Net sales   $ 816,885     $ 831,486     $ 14,601     $ 1,455,431     $ 1,472,996     $ 17,565  
Gross profit     477,858       484,130       6,272       849,981       856,936       6,955  
Operating income     203,350       209,622       6,272       319,695       326,650       6,955  
Income tax (benefit)     57,105       57,348       243       (93,015 )     (92,680 )     335  
Net income   $ 170,950     $ 176,979     $ 6,029     $ 408,762     $ 415,382     $ 6,620  
Diluted net income per share   $ 0.91     $ 0.94     $ 0.03     $ 2.17     $ 2.20     $ 0.03  

 

  (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       (3,362 )     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       1,397       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       383       (36,761 )     (37,024 )     (263 )
Total stockholders' equity     3,802,466       3,852,419       49,953       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)
 6 Months Ended
Jun. 30, 2018
Inventory Disclosure [Abstract]  
Schedule of inventories

The components of inventories consist of the following:

  

    June 30,     December 30,  
    2018     2017  
             
Raw materials   $ 190,524     $ 179,659  
Work-in-process     85,811       75,754  
Finished goods     225,155       262,231  
Inventories   $ 501,490     $ 517,644  
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 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  
    June 30,     July 1,  
    2018     2017  
Numerator:                
Numerator for basic and diluted net income per share - net income   $ 190,342     $ 176,979  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,542       187,757  
                 
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     919       735  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     189,461       188,492  
                 
Basic net income per share   $ 1.01     $ 0.94  
                 
Diluted net income per share   $ 1.00     $ 0.94  

 

    26-Weeks Ended  
    June 30,     July 1,  
    2018     2017  
Numerator:                
Numerator for basic and diluted net income per share - net income   $ 319,715     $ 415,382  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,432       187,974  
                 
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     945       717  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     189,377       188,691  
                 
Basic net income per share   $ 1.70     $ 2.21  
                 
Diluted net income per share   $ 1.69     $ 2.20  
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Schedule of net sales ("revenue"), 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 June 30, 2018                                                
                                                 
Net sales   $ 201,640     $ 225,095     $ 134,583     $ 180,128     $ 153,006     $ 894,452  
Gross profit     128,872       126,431       78,785       75,452       113,730       523,270  
Operating income     71,916       52,548       27,768       12,612       52,664       217,508  
                                                 
13-Weeks Ended July 1, 2017                                                
                                                 
Net sales   $ 194,776     $ 181,022     $ 108,545     $ 223,083     $ 124,060     $ 831,486  
Gross profit     127,813       102,139       62,368       99,309       92,501       484,130  
Operating income     74,284       37,487       24,295       34,198       39,358       209,622  
                                                 
26-Weeks Ended June 30, 2018                                                
                                                 
Net sales   $ 345,899     $ 391,130     $ 248,138     $ 321,439     $ 298,719     $ 1,605,325  
Gross profit     222,158       223,032       145,468       136,463       222,684       949,805  
Operating income     115,739       85,922       40,899       16,079       101,071       359,710  
                                                 
26-Weeks Ended July 1, 2017                                                
                                                 
Net sales   $ 310,652     $ 318,852     $ 212,990     $ 383,571     $ 246,931     $ 1,472,996  
Gross profit     201,282       179,879       122,116       169,925       183,734       856,936  
Operating income     108,735       55,959       42,440       41,550       77,966       326,650  
Schedule of net sales and property and equipment, net by geographic area

Net sales to external customers by geographic region were as follows for the 13-week and 26-week periods ended June 30, 2018 and July 1, 2017. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

  

    13-Weeks Ended     26-Weeks Ended  
    June 30,     July 1,     June 30,     July 1,  
    2018     2017     2018     2017  
Americas   $ 437,116     $ 401,409     $ 783,091     $ 726,038  
EMEA     309,116       314,649       555,029       539,984  
APAC     148,220       115,428       267,205       206,974  
Net sales to external customers   $ 894,452     $ 831,486     $ 1,605,325     $ 1,472,996  

 

Net property and equipment by geographic region as of June 30, 2018 and July 1, 2017 are presented below.

  

    Americas     APAC     EMEA     Total  
June 30, 2018                                
Property and equipment, net   $ 395,638     $ 202,455     $ 39,152     $ 637,245  
                                 
July 1, 2017                                
Property and equipment, net   $ 326,125     $ 153,277     $ 37,888     $ 517,290  
Warranty Reserves (Tables)
 6 Months Ended
Jun. 30, 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  
    June 30,     July 1,  
    2018     2017  
             
Balance - beginning of period   $ 35,422     $ 34,427  
Accrual for products sold during the period     17,113       15,747  
Expenditures     (14,106 )     (13,162 )
Balance - end of period   $ 38,429     $ 37,012  

  

    26-Weeks Ended  
    June 30,     July 1,  
    2018     2017  
             
Balance - beginning of period   $ 36,827     $ 37,233  
Accrual for products sold during the period     27,125       23,947  
Expenditures     (25,523 )     (24,168 )
Balance - end of period   $ 38,429     $ 37,012  
Marketable Securities (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2018		  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 26,521     $ -     $ 26,521     $ -  
Agency securities     41,194       -       41,194       -  
Mortgage-backed securities     149,401       -       149,401       -  
Corporate securities     915,688       -       915,688       -  
Municipal securities     187,932       -       187,932       -  
Other     155,029       -       155,029       -  
Total   $ 1,475,765     $ -     $ 1,475,765     $ -  

  

    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 June 30, 2018		  
       
    Amortized Cost     Gross Unrealized
Gains		     Gross Unrealized
Losses		     Fair Value  
U.S. Treasury securities   $ 26,944     $ -     $ (423 )   $ 26,521  
Agency securities     42,400       -       (1,206 )     41,194  
Mortgage-backed securities     157,421       3       (8,023 )     149,401  
Corporate securities     947,474       55       (31,841 )     915,688  
Municipal securities     190,976       20       (3,064 )     187,932  
Other     158,041       -       (3,012 )     155,029  
Total   $ 1,523,256     $ 78     $ (47,569 )   $ 1,475,765  

  

    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 June 30, 2018 and December 30, 2017.

  

    As of June 30, 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   $ (242 )   $ 17,223     $ (181 )   $ 6,301  
Agency securities     (265 )     15,500       (941 )     25,695  
Mortgage-backed securities     (414 )     10,473       (7,609 )     138,374  
Corporate securities     (13,208 )     555,067       (18,633 )     343,384  
Municipal securities     (1,774 )     140,340       (1,290 )     40,516  
Other     (2,679 )     110,889       (333 )     18,965  
Total   $ (18,582 )   $ 849,492     $ (28,987 )   $ 573,235  

  

    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 June 30, 2018, by maturity, are shown below.

  

    Amortized Cost     Fair Value  
             
Due in one year or less   $ 174,038     $ 173,318  
Due after one year through five years     1,218,992       1,181,277  
Due after five years through ten years     130,226       121,170  
    $ 1,523,256     $ 1,475,765  
Accumulated Other Comprehensive Income (Tables)
 6 Months Ended
Jun. 30, 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 and 26-week periods ended June 30, 2018:

 

    13-Weeks Ended June 30, 2018  
    Foreign Currency
Translation Adjustment		     Net unrealized gains
(losses) on available-for-
sale securities		     Total  
Beginning Balance   $ 102,792     $ (38,350 )   $ 64,442  
Other comprehensive income before reclassification, net of income tax benefit of $492     (49,868 )     (4,874 )     (54,742 )
Amounts reclassified from accumulated other comprehensive income     -       32       32  
Net current-period other comprehensive income     (49,868 )     (4,842 )     (54,710 )
Reclassification of tax effects due to adoption of ASU 2018-02     -        -        -   
Ending Balance   $ 52,924     $ (43,192 )   $ 9,732  

  

    26-Weeks Ended June 30, 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 $2,907     (26,368 )     (20,137 )     (46,505 )
Amounts reclassified from accumulated other comprehensive income     -       261       261  
Net current-period other comprehensive income     (26,368 )     (19,876 )     (46,244 )
Reclassification of tax effects due to adoption of ASU 2018-02     -        (452 )     (452 )
Ending Balance   $ 52,924     $ (43,192 )   $ 9,732  
Schedule of reporting reclassifications out of AOCI

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 26-week periods ended June 30, 2018:

  

13-Weeks Ended June 30, 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   $ (37 )   Other income (expense)
      5     Income tax benefit (provision)
    $ (32 )   Net of tax

  

26-Weeks Ended June 30, 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   $ (231 )   Other income (expense)
      (30 )   Income tax benefit (provision)
    $ (261 )   Net of tax
Revenue (Tables)
 6 Months Ended
Jun. 30, 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     26-Weeks Ended  
    June 30,     July 1,     June 30,     July 1,  
    2018     2017     2018     2017  
Point in time   $ 854,260     $ 789,867     $ 1,525,524     $ 1,389,612  
Over time     40,192       41,619       79,801       83,384  
Net sales   $ 894,452     $ 831,486     $ 1,605,325     $ 1,472,996  
Schedule of deferred revenue and costs

Changes in deferred revenue and costs during the 26-weeks ended June 30, 2018 are presented below:

  

    26-Weeks Ended  
    June 30,  
    2018  
    Deferred Revenue(1)     Deferred Costs(2)  
             
Balance, beginning of period   $ 190,200     $ 63,554  
Deferrals in period     72,283       18,170  
Recognition of deferrals in period     (79,801 )     (19,137 )
Balance, end of period   $ 182,682     $ 62,587  
                 
(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
Accounting Policies (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Dec. 30, 2017
Dec. 31, 2016
Mar. 31, 2018
Net sales $ 894,452 $ 831,486 $ 1,605,325 $ 1,472,996      
Gross profit 523,270 484,130 949,805 856,936      
Operating income 217,508 209,622 359,710 326,650      
Income tax (benefit) provision 45,726 57,348 70,333 (92,680)      
Net income $ 190,342 $ 176,979 $ 319,715 $ 415,382      
Diluted net income per share (in dollars per share) $ 1.00 $ 0.94 $ 1.69 $ 2.20      
Current assets:              
Deferred costs $ 31,924   $ 31,924   $ 30,525    
Total current assets 2,323,582   2,323,582   2,346,138    
Deferred income taxes 188,101   188,101   195,981    
Noncurrent deferred costs 30,663   30,663   33,029    
Total assets 4,988,720   4,988,720   4,948,289    
Current liabilities:              
Deferred revenue 98,526   98,526   103,140    
Total current liabilities 929,147   929,147   792,115    
Deferred income taxes 74,092   74,092   76,612    
Non-current deferred revenue 84,156   84,156   87,060    
Retained earnings 2,336,614   2,336,614   2,418,444    
Accumulated other comprehensive income 9,732   9,732   56,428   $ 64,442
Total stockholders' equity 3,758,881   3,758,881   3,852,419    
Total liabilities and stockholders' equity $ 4,988,720   $ 4,988,720   4,948,289    
As Reported [Member]              
Net sales   $ 816,885   $ 1,455,431 3,087,004 $ 3,018,665  
Gross profit   477,858   849,981 1,783,164 1,679,570  
Operating income   203,350   319,695 668,860 623,909  
Income tax (benefit) provision   57,105   (93,015) (12,661) 118,856  
Net income   $ 170,950   $ 408,762 $ 694,955 $ 510,814  
Diluted net income per share (in dollars per share)   $ 0.91   $ 2.17 $ 3.68 $ 2.7  
Current assets:              
Deferred costs         $ 48,312 $ 47,395  
Total current assets         2,363,925 2,263,016  
Deferred income taxes         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         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   $ 831,486 [1]   $ 1,472,996 [1] 3,121,560 [2] 3,045,797 [2]  
Gross profit   484,130 [1]   856,936 [1] 1,797,941 [2] 1,688,525 [2]  
Operating income   209,622 [1]   326,650 [1] 683,637 [2] 632,864 [2]  
Income tax (benefit) provision   57,348 [1]   (92,680) [1] (11,936) [2] 120,901 [2]  
Net income   $ 176,979 [1]   $ 415,382 [1] $ 709,007 [2] $ 517,724 [2]  
Diluted net income per share (in dollars per share)   $ 0.94 [1]   $ 2.20 [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  
Deferred income taxes [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 [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   $ 14,601   $ 17,565 34,556 27,132  
Gross profit   6,272   6,955 14,777 8,955  
Operating income   6,272   6,955 14,777 8,955  
Income tax (benefit) provision   243   335 725 2,045  
Net income   $ 6,029   $ 6,620 $ 14,052 $ 6,910  
Diluted net income per share (in dollars per share)   $ 0.03   $ 0.03 $ 0.08 $ 0.03  
Current assets:              
Deferred costs         $ (17,787) $ (12,730)  
Total current assets         (17,787) (12,730)  
Deferred income taxes         (3,362) (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         1,397 1,397  
Non-current deferred revenue         (76,780) (49,169)  
Retained earnings         49,570 35,519  
Accumulated other comprehensive income         383 (263)  
Total stockholders' equity         49,953 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
Jun. 30, 2018
Dec. 30, 2017
Inventory Disclosure [Abstract]    
Raw materials $ 190,524 $ 179,659
Work-in-process 85,811 75,754
Finished goods 225,155 262,231
Inventories $ 501,490 $ 517,644
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Numerator:        
Numerator for basic and diluted net income per share - net income $ 190,342 $ 176,979 $ 319,715 $ 415,382
Denominator:        
Denominator for basic net income per share - weighted-average common shares 188,542 187,757 188,432 187,974
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units 919 735 945 717
Denominator for diluted net income per share - adjusted weighted-average common shares 189,461 188,492 189,377 188,691
Basic net income per share (in dollars per share) $ 1.01 $ 0.94 $ 1.70 $ 2.21
Diluted net income per share (in dollars per share) $ 1.00 $ 0.94 $ 1.69 $ 2.20
Earnings Per Share (Details Narrative) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Net income per share:        
Anti-dilutive stock options, stock appreciation rights and restricted stock units 0 1,057 0 1,825
Shares issued as a result of exercises and releases of equity awards 46 9 378 159
Employee stock purchase plan for treasury stock 230 248 230 248
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Net sales $ 894,452 $ 831,486 $ 1,605,325 $ 1,472,996
Gross profit 523,270 484,130 949,805 856,936
Operating income 217,508 209,622 359,710 326,650
Outdoor [Member]        
Net sales 201,640 194,776 345,899 310,652
Gross profit 128,872 127,813 222,158 201,282
Operating income 71,916 74,284 115,739 108,735
Fitness [Member]        
Net sales 225,095 181,022 391,130 318,852
Gross profit 126,431 102,139 223,032 179,879
Operating income 52,548 37,487 85,922 55,959
Marine [Member]        
Net sales 134,583 108,545 248,138 212,990
Gross profit 78,785 62,368 145,468 122,116
Operating income 27,768 24,295 40,899 42,440
Auto [Member]        
Net sales 180,128 223,083 321,439 383,571
Gross profit 75,452 99,309 136,463 169,925
Operating income 12,612 34,198 16,079 41,550
Aviation [Member]        
Net sales 153,006 124,060 298,719 246,931
Gross profit 113,730 92,501 222,684 183,734
Operating income $ 52,664 $ 39,358 $ 101,071 $ 77,966
Segment Information (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Net sales to external customers $ 894,452 $ 831,486 $ 1,605,325 $ 1,472,996
Americas [Member]        
Net sales to external customers 437,116 401,409 783,091 726,038
EMEA [Member]        
Net sales to external customers 309,116 314,649 555,029 539,984
APAC [Member]        
Net sales to external customers $ 148,220 $ 115,428 $ 267,205 $ 206,974
Segment Information (Details 2) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 30, 2017
Jul. 01, 2017
Property and equipment, net $ 637,245 $ 595,684 $ 517,290
Americas [Member]      
Property and equipment, net 395,638   326,125
APAC [Member]      
Property and equipment, net 202,455   153,277
EMEA [Member]      
Property and equipment, net $ 39,152   $ 37,888
Segment Information (Details Narrative)
 6 Months Ended
Jun. 30, 2018
Segment
Segment Reporting [Abstract]  
Number of reportable segments 5
Warranty Reserves (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]        
Balance - beginning of period $ 35,422 $ 34,427 $ 36,827 $ 37,233
Accrual for products sold during the period 17,113 15,747 27,125 23,947
Expenditures (14,106) (13,162) (25,523) (24,168)
Balance - end of period $ 38,429 $ 37,012 $ 38,429 $ 37,012
Warranty Reserves (Details Narrative)
 6 Months Ended
Jun. 30, 2018
Minimum [Member]  
Product warranty term 1 year
Maximum [Member]  
Product warranty term 3 years
Commitments and Contingencies (Details Narrative)
$ in Thousands
Jun. 30, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Aggregate amount of purchase orders and other commitments $ 343,000
Income Taxes (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Income Tax Disclosure [Abstract]        
Income tax expense $ 45,726 $ 57,348 $ 70,333 $ (92,680)
Effective income tax rate 19.40% 24.50% 18.00% (28.70%)
Marketable Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 30, 2017
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total $ 1,475,765 $ 1,421,720
U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 26,521 19,337
Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 41,194 43,361
Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 149,401 174,615
Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 915,688 816,793
Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 187,932 186,105
Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 155,029 181,509
Recurring Basis [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 1,475,765 1,421,720
Recurring Basis [Member] | U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 26,521 19,337
Recurring Basis [Member] | Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 41,194 43,361
Recurring Basis [Member] | Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 149,401 174,615
Recurring Basis [Member] | Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 915,688 816,793
Recurring Basis [Member] | Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 187,932 186,105
Recurring Basis [Member] | Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 155,029 181,509
Recurring Basis [Member] | Level 1 [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 1 [Member] | Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 2 [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 1,475,765 1,421,720
Recurring Basis [Member] | Level 2 [Member] | U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 26,521 19,337
Recurring Basis [Member] | Level 2 [Member] | Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 41,194 43,361
Recurring Basis [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 149,401 174,615
Recurring Basis [Member] | Level 2 [Member] | Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 915,688 816,793
Recurring Basis [Member] | Level 2 [Member] | Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 187,932 186,105
Recurring Basis [Member] | Level 2 [Member] | Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 155,029 181,509
Recurring Basis [Member] | Level 3 [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Recurring Basis [Member] | Level 3 [Member] | Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total
Marketable Securities (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 30, 2017
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost $ 1,523,256 $ 1,446,428
Gross Unrealized Gains 78 262
Gross Unrealized Losses (47,569) (24,970)
Fair Value 1,475,765 1,421,720
U.S.Treasury Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 26,944 19,591
Gross Unrealized Gains
Gross Unrealized Losses (423) (254)
Fair Value 26,521 19,337
Agency Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 42,400 44,191
Gross Unrealized Gains 1
Gross Unrealized Losses (1,206) (831)
Fair Value 41,194 43,361
Mortgage-Backed Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 157,421 180,470
Gross Unrealized Gains 3 13
Gross Unrealized Losses (8,023) (5,868)
Fair Value 149,401 174,615
Corporate Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 947,474 830,447
Gross Unrealized Gains 55 136
Gross Unrealized Losses (31,841) (13,790)
Fair Value 915,688 816,793
Municipal Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 190,976 187,999
Gross Unrealized Gains 20 110
Gross Unrealized Losses (3,064) (2,004)
Fair Value 187,932 186,105
Other [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 158,041 183,730
Gross Unrealized Gains 2
Gross Unrealized Losses (3,012) (2,223)
Fair Value $ 155,029 $ 181,509
Marketable Securities (Details 2) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 30, 2017
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months $ (18,582) $ (8,590)
Fair Value Less than 12 Consecutive Months 849,492 749,831
Gross Unrealized Losses 12 Consecutive Months or Longer (28,987) (16,380)
Fair Value 12 Consecutive Months or Longer 573,235 573,976
U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (242) (111)
Fair Value Less than 12 Consecutive Months 17,223 12,966
Gross Unrealized Losses 12 Consecutive Months or Longer (181) (143)
Fair Value 12 Consecutive Months or Longer 6,301 6,371
Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (265) (168)
Fair Value Less than 12 Consecutive Months 15,500 16,097
Gross Unrealized Losses 12 Consecutive Months or Longer (941) (663)
Fair Value 12 Consecutive Months or Longer 25,695 25,972
Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (414) (503)
Fair Value Less than 12 Consecutive Months 10,473 19,628
Gross Unrealized Losses 12 Consecutive Months or Longer (7,609) (5,365)
Fair Value 12 Consecutive Months or Longer 138,374 153,835
Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (13,208) (4,562)
Fair Value Less than 12 Consecutive Months 555,067 439,174
Gross Unrealized Losses 12 Consecutive Months or Longer (18,633) (9,228)
Fair Value 12 Consecutive Months or Longer 343,384 347,052
Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (1,774) (1,027)
Fair Value Less than 12 Consecutive Months 140,340 125,819
Gross Unrealized Losses 12 Consecutive Months or Longer (1,290) (977)
Fair Value 12 Consecutive Months or Longer 40,516 38,167
Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (2,679) (2,219)
Fair Value Less than 12 Consecutive Months 110,889 136,147
Gross Unrealized Losses 12 Consecutive Months or Longer (333) (4)
Fair Value 12 Consecutive Months or Longer $ 18,965 $ 2,579
Marketable Securities (Details 3) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 30, 2017
Amortized Cost    
Due in one year or less $ 174,038  
Due after one year through five years 1,218,992  
Due after five years through ten years 130,226  
Total 1,523,256 $ 1,446,428
Fair Value    
Due in one year or less 173,318  
Due after one year through five years 1,181,277  
Due after five years through ten years 121,170  
Total $ 1,475,765 $ 1,421,720
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2018
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]    
Beginning Balance $ 102,792 $ 79,292
Other comprehensive income before reclassification, net of income tax benefit (49,868) (26,368)
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive income (49,868) (26,368)
Ending Balance 52,924 52,924
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]    
Beginning Balance (38,350) (22,864)
Other comprehensive income before reclassification, net of income tax benefit of $2,416 (4,874) (20,137)
Amounts reclassified from accumulated other comprehensive income 32 261
Net current-period other comprehensive income (4,842) (19,876)
Reclassification of tax effects due to adoption of ASU 2018-02 (452)
Ending Balance (43,192) (43,192)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]    
Beginning Balance 64,442 56,428
Other comprehensive income before reclassification, net of income tax benefit of $2,416 (54,742) (46,505)
Amounts reclassified from accumulated other comprehensive income 32 261
Net current-period other comprehensive income (54,710) (46,244)
Reclassification of tax effects due to adoption of ASU 2018-02 (452)
Ending Balance $ 9,732 $ 9,732
Accumulated Other Comprehensive Income (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Other income (expense) $ 18,560 $ 24,705 $ 30,338 $ (3,948)
Income tax benefit (provision) (45,726) $ (57,348) (70,333) $ 92,680
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]        
Other income (expense) (37)   (231)  
Income tax benefit (provision) 5   (30)  
Net of tax $ (32)   $ (261)  
Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Net sales $ 894,452 $ 831,486 $ 1,605,325 $ 1,472,996
Point in Time [Member]        
Net sales 854,260 789,867 1,525,524 1,389,612
Over Time [Member]        
Net sales $ 40,192 $ 41,619 $ 79,801 $ 83,384
Revenue (Details 1)
$ in Thousands
 6 Months Ended
Jun. 30, 2018
USD ($)
Movement in Deferred Revenue [Roll Forward]  
Balance, beginning of period $ 190,200 [1]
Deferrals in period 72,283 [1]
Recognition of deferrals in period (79,801) [1]
Balance, end of period 182,682 [1]
Movement in Deferred Costs [Roll Forward]  
Balance, beginning of period 63,554 [2]
Deferrals in period 18,170 [2]
Recognition of deferrals in period (19,137) [2]
Balance, end of period $ 62,587 [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
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[info] In "Condensed Consolidated Balance Sheets (Unaudited)", column(s) 2(AsOf2018-03-31), 4(AsOf2017-07-01) are contained in other reports, so were removed by flow through suppression. - grmn-20180630.xml