XBRL Rendering Preview
Document and Entity Information - shares
shares in Thousands
 9 Months Ended
Sep. 29, 2018
Oct. 29, 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 Sep. 29, 2018  
Amendment Flag false  
Current Fiscal Year End Date --12-29  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Ex Transition Period false  
Entity's Reporting Status Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   198,077,418
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2018  
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 29, 2018
Dec. 30, 2017
Current assets:    
Cash and cash equivalents $ 1,056,397 $ 891,488
Marketable securities 173,697 161,687
Accounts receivable, net 467,784 590,882
Inventories 556,640 517,644
Deferred costs 28,235 30,525
Prepaid expenses and other current assets 117,866 153,912
Total current assets 2,400,619 2,346,138
Property and equipment, net 650,805 595,684
Restricted cash 145 271
Marketable securities 1,301,111 1,260,033
Deferred income taxes 186,445 195,981
Noncurrent deferred costs 29,732 33,029
Intangible assets, net 424,776 409,801
Other assets 102,334 107,352
Total assets 5,095,967 4,948,289
Current liabilities:    
Accounts payable 197,069 169,640
Salaries and benefits payable 101,190 102,802
Accrued warranty costs 35,960 36,827
Accrued sales program costs 59,708 93,250
Deferred revenue 97,604 103,140
Accrued royalty costs 27,213 32,204
Accrued advertising expense 24,213 30,987
Other accrued expenses 67,426 93,652
Income taxes payable 43,519 33,638
Dividend payable 200,124 95,975
Total current liabilities 854,026 792,115
Deferred income taxes 82,846 76,612
Noncurrent income taxes 126,893 138,295
Noncurrent deferred revenue 77,634 87,060
Other liabilities 1,860 1,788
Stockholders' equity:    
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 188,809 shares outstanding at September 29, 2018; and 188,189 shares outstanding at December 30, 2017; 17,979 17,979
Additional paid-in capital 1,842,551 1,828,386
Treasury stock (433,274) (468,818)
Retained earnings 2,520,828 2,418,444
Accumulated other comprehensive income 4,624 56,428
Total stockholders' equity 3,952,708 3,852,419
Total liabilities and stockholders' equity $ 5,095,967 $ 4,948,289
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - SFr / shares
shares in Thousands
Sep. 29, 2018
Dec. 30, 2017
Common shares, authorized 198,077 198,077
Common shares, issued 198,077 198,077
Common shares, outstanding 188,809 188,189
CHF [Member]    
Common shares, par value (in swiss francs per share) SFr 0.10 SFr 0.10
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Income Statement [Abstract]        
Net sales $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241
Cost of goods sold 329,264 313,721 984,783 929,782
Gross profit 480,747 437,523 1,430,553 1,294,459
Advertising expense 31,140 32,449 100,000 105,983
Selling, general and administrative expense 114,669 101,794 352,234 309,095
Research and development expense 138,979 129,632 422,649 379,083
Total operating expense 284,788 263,875 874,883 794,161
Operating income 195,959 173,648 555,670 500,298
Other income (expense):        
Interest income 11,089 9,207 32,310 26,931
Foreign currency (losses) gains (6,868) 8,579 (3,405) (13,808)
Other income (expense) 1,147 (1,520) 6,800 (805)
Total other income (expense) 5,368 16,266 35,705 12,318
Income before income taxes 201,327 189,914 591,375 512,616
Income tax provision (benefit) 17,113 38,840 87,445 (53,840)
Net income $ 184,214 $ 151,074 $ 503,930 $ 566,456
Net income per share:        
Basic (in dollars per share) $ 0.98 $ 0.81 $ 2.67 $ 3.01
Diluted (in dollars per share) $ 0.97 $ 0.80 $ 2.66 $ 3.00
Weighted average common shares outstanding:        
Basic (in shares) 188,799 187,616 188,554 187,902
Diluted (in shares) 190,005 188,490 189,586 188,671
Dividends declared per share (in dollars per share) $ 2.12 $ 2.04
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Statement of Comprehensive Income [Abstract]        
Net income $ 184,214 $ 151,074 $ 503,930 $ 566,456
Foreign currency translation adjustment (3,940) 5,689 (30,308) 71,591
Change in fair value of available-for-sale marketable securities, net of deferred taxes (1,168) 536 (21,044) 11,938
Comprehensive income $ 179,106 $ 157,299 $ 452,578 $ 649,985
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Dec. 30, 2017
Operating activities:          
Net income $ 184,214 $ 151,074 $ 503,930 $ 566,456  
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation     47,902 44,011  
Amortization     23,574 19,688  
Gain on sale or disposal of property and equipment     (491) (184)  
Provision for doubtful accounts     1,265 551  
Provision for obsolete and slow moving inventories     17,719 16,504  
Unrealized foreign currency loss     4,158 17,786  
Deferred income taxes     20,177 (143,314)  
Stock compensation expense     42,094 32,441  
Realized losses on marketable securities     481 594  
Changes in operating assets and liabilities, net of acquisitions:          
Accounts receivable     111,955 84,982  
Inventories     (69,139) (86,631)  
Other current and non-current assets     5,102 (9,635)  
Accounts payable     32,601 (24,526)  
Other current and non-current liabilities     (57,245) (37,403)  
Deferred revenue     (14,923) (21,478)  
Deferred costs     5,581 3,459  
Income taxes payable     27,041 (724)  
Net cash provided by operating activities     701,782 462,577  
Investing activities:          
Purchases of property and equipment     (122,846) (85,211)  
Proceeds from sale of property and equipment     1,296 264  
Purchase of intangible assets     (2,982) (9,069)  
Purchase of marketable securities     (314,179) (438,046)  
Redemption of marketable securities     229,066 455,376  
Acquisitions, net of cash acquired     (29,170) (12,400)  
Net cash used in investing activities     (238,815) (89,086)  
Financing activities:          
Dividends     (296,149) (287,318)  
Proceeds from issuance of treasury stock related to equity awards     14,524 10,316  
Purchase of treasury stock related to equity awards     (6,909) (3,587)  
Purchase of treasury stock under share repurchase plan     (74,523)  
Net cash used in financing activities     (288,534) (355,112)  
Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (9,650) 26,021  
Net increase in cash, cash equivalents, and restricted cash     164,783 44,400  
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 $ 1,056,542 $ 891,396 $ 1,056,542 $ 891,396 $ 891,759
Accounting Policies
 9 Months Ended
Sep. 29, 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 39-week periods ended September 29, 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 September 29, 2018 and September 30, 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 revenue 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 September 30, 2017     39-Weeks Ended September 30, 2017  
    As reported     Restated(1)     Impact     As reported     Restated(1)     Impact  
Net sales   $ 743,077     $ 751,244     $ 8,167     $ 2,198,508     $ 2,224,241     $ 25,733  
Gross profit     433,665       437,523       3,858       1,283,646       1,294,459       10,813  
Operating income     169,790       173,648       3,858       489,485       500,298       10,813  
Income tax provision (benefit)     38,643       38,840       197       (54,372 )     (53,840 )     532  
Net income   $ 147,413     $ 151,074     $ 3,661     $ 556,175     $ 566,456     $ 10,281  
Diluted net income per share   $ 0.78     $ 0.80     $ 0.02     $ 2.95     $ 3.00     $ 0.05  

  

  (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 approximately $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 39-week period ended September 29, 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 estimated 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 Revenue 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
 9 Months Ended
Sep. 29, 2018
Inventory Disclosure [Abstract]  
Inventories
  2. Inventories

 

The components of inventories consist of the following:

  

    September 29,     December 30,  
    2018     2017  
             
Raw materials   $ 203,472     $ 179,659  
Work-in-process     92,050       75,754  
Finished goods     261,118       262,231  
Inventories   $ 556,640     $ 517,644  
Earnings Per Share
 9 Months Ended
Sep. 29, 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  
    September 29,     September 30,  
    2018     2017  
Numerator:            
Numerator for basic and diluted net income per share - net income   $ 184,214     $ 151,074  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,799       187,616  
                 
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     1,206       874  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     190,005       188,490  
                 
Basic net income per share   $ 0.98     $ 0.81  
                 
Diluted net income per share   $ 0.97     $ 0.80  

  

    39-Weeks Ended  
    September 29,     September 30,  
    2018     2017  
Numerator:            
Numerator for basic and diluted net income per share - net income   $ 503,930     $ 566,456  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,554       187,902  
                 
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     1,032       769  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     189,586       188,671  
                 
Basic net income per share   $ 2.67     $ 3.01  
                 
Diluted net income per share   $ 2.66     $ 3.00  

  

There were no anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) outstanding during the 13-week period ended September 29, 2018 and 1,051 anti-dilutive equity awards outstanding during the 13-week period ended September 30, 2017.

 

There were no anti-dilutive equity awards outstanding during the 39-week period ended September 29, 2018 and 1,567 anti-dilutive equity awards outstanding during the 39-week period ended September 30, 2017.

 

There were 12 and 2 net shares issued as a result of exercises and releases of equity awards for the 13-week periods ended September 29, 2018 and September 30, 2017, respectively.

 

There were 390 and 161 net shares issued as a result of exercises and releases of equity awards for the 39-week periods ended September 29, 2018 and September 30, 2017, respectively.

 

There were 230 employee stock purchase plan (ESPP) shares issued from outstanding Treasury stock during the 39-week period ended September 29, 2018.

 

There were 248 ESPP shares issued from outstanding Treasury stock during the 39-week period ended September 30, 2017.
Segment Information
 9 Months Ended
Sep. 29, 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 September 29, 2018                              
                                     
Net sales   $ 209,415     $ 190,185     $ 98,770     $ 165,214     $ 146,427     $ 810,011  
Gross profit     136,671       103,441       58,508       70,925       111,202       480,747  
Operating income     78,972       37,378       13,908       15,032       50,669       195,959  
                                                 
13-Weeks Ended September 30, 2017                                                
                                                 
Net sales   $ 184,937     $ 167,147     $ 77,312     $ 197,220     $ 124,628     $ 751,244  
Gross profit     118,175       96,135       44,574       87,819       90,820       437,523  
Operating income     67,810       33,492       18,420       19,829       34,097       173,648  
                                                 
39-Weeks Ended September 29, 2018                                                
                                                 
Net sales   $ 555,314     $ 581,315     $ 346,908     $ 486,653     $ 445,146     $ 2,415,336  
Gross profit     358,829       326,473       203,976       207,389       333,886       1,430,553  
Operating income     194,711       123,299       54,806       31,113       151,741       555,670  
                                                 
39-Weeks Ended September 30, 2017                                                
                                                 
Net sales   $ 495,589     $ 485,999     $ 290,302     $ 580,792     $ 371,559     $ 2,224,241  
Gross profit     319,457       276,014       166,690       257,744       274,554       1,294,459  
Operating income     176,544       89,452       60,860       61,379       112,063       500,298  

 

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 39-week periods ended September 29, 2018 and September 30, 2017. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

 

    13-Weeks Ended     39-Weeks Ended  
    September 29,     September 30,     September 29,     September 30,  
    2018     2017     2018     2017  
Americas   $ 370,239     $ 346,208     $ 1,153,330     $ 1,072,247  
EMEA     307,087       291,703       862,116       831,687  
APAC     132,685       113,333       399,890       320,307  
Net sales to external customers   $ 810,011     $ 751,244     $ 2,415,336     $ 2,224,241  

 

Net property and equipment by geographic region as of September 29, 2018 and September 30, 2017 are presented below.

 

    Americas     APAC     EMEA     Total  
September 29, 2018                                
Property and equipment, net   $ 403,556     $ 202,790     $ 44,459     $ 650,805  
                                 
September 30, 2017                                
Property and equipment, net   $ 356,351     $ 160,360     $ 37,730     $ 554,441  
Warranty Reserves
 9 Months Ended
Sep. 29, 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  
    September 29,     September 30,  
    2018     2017  
             
Balance - beginning of period   $ 38,429     $ 37,012  
Accrual for products sold during the period     13,558       16,903  
Expenditures     (16,027 )     (18,246 )
Balance - end of period   $ 35,960     $ 35,669  

  

    39-Weeks Ended  
    September 29,     September 30,  
    2018     2017  
             
Balance - beginning of period   $ 36,827     $ 37,233  
Accrual for products sold during the period     40,682       40,850  
Expenditures     (41,549 )     (42,414 )
Balance - end of period   $ 35,960     $ 35,669  
Commitments and Contingencies
 9 Months Ended
Sep. 29, 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 September 29, 2018 was approximately $346,000. 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 September 29, 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
 9 Months Ended
Sep. 29, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
  7. Income Taxes

 

The Company recorded income tax expense of $17,113 in the 13-week period ended September 29, 2018, compared to income tax expense of $38,840 in the 13-week period ended September 30, 2017. The effective tax rate was 8.5% in the third quarter of 2018, compared to 20.5% in the third quarter of 2017. The 1,200 basis points decrease to the third quarter of 2018 effective tax rate compared to the prior year quarter is primarily due to the reduction of the U.S. corporate tax rate and increased benefit from U.S. research and development tax credits.

 

The Company recorded income tax expense of $87,445 in the first three quarters of 2018, compared to an income tax benefit of $53,840 in the first three quarters 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 14.8% in the first three quarters of 2018, compared to (10.5%) in the first three quarters 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 three quarters of 2018 decreased 620 basis points compared to the effective tax rate in the first three quarters of 2017 primarily due to the reduction of the U.S. corporate tax rate and increased benefit from U.S. research and development tax credits.

  

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 has issued Staff Accounting Bulletin No. 118 (“SAB 118”) which allows for the recognition of provisional amounts during a measurement period. The Company recorded a provisional re-measurement of its deferred tax assets and liabilities in the fourth quarter of 2017. The Company filed its U.S. federal income tax return during the third quarter of 2018 which did not result in an adjustment of its provisional re-measurement of its deferred tax assets and liabilities. Income tax expense recorded in the third 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, including any state tax impact or 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 the future periods will materially impact the Company’s financial condition or result of operations.
Marketable Securities
 9 Months Ended
Sep. 29, 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 September 29, 2018		  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 25,040     $ —     $ 25,040     $ —  
Agency securities     46,291       —       46,291       —  
Mortgage-backed securities     140,318       —       140,318       —  
Corporate securities     942,532       —       942,532       —  
Municipal securities     168,588       —       168,588       —  
Other     152,039       —       152,039       —  
Total   $ 1,474,808     $ —     $ 1,474,808     $ —  

 

    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 September 29, 2018		  
       
    Amortized Cost     Gross Unrealized Gains     Gross Unrealized Losses     Fair Value  
U.S. Treasury securities   $ 25,499     $ —     $ (459 )   $ 25,040  
Agency securities     47,653       —       (1,362 )     46,291  
Mortgage-backed securities     148,837       3       (8,522 )     140,318  
Corporate securities     974,227       47       (31,742 )     942,532  
Municipal securities     172,157       3       (3,572 )     168,588  
Other     155,200       0       (3,161 )     152,039  
Total   $ 1,523,573     $ 53     $ (48,818 )   $ 1,474,808  

 

    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 39-week period ended September 29, 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 September 29, 2018 were $1,480,955 and $1,432,137, respectively. Approximately 85% of securities in our portfolio were at an unrealized loss position as of September 29, 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 September 29, 2018 and December 30, 2017.

 

    As of September 29, 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   $ (90 )   $ 11,405     $ (369 )   $ 13,635  
Agency securities     (48 )     7,700       (1,314 )     38,591  
Mortgage-backed securities     (9 )     513       (8,513 )     139,339  
Corporate securities     (9,256 )     477,194       (22,486 )     449,488  
Municipal securities     (1,766 )     106,380       (1,806 )     60,281  
Other     (830 )     37,869       (2,331 )     89,742  
Total   $ (11,999 )   $ 641,061     $ (36,819 )   $ 791,076  

 

    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 September 29, 2018, by maturity, are shown below.

 

    Amortized Cost     Fair Value  
             
Due in one year or less   $ 174,578     $ 173,697  
Due after one year through five years     1,228,112       1,189,069  
Due after five years through ten years     120,883       112,042  
    $ 1,523,573     $ 1,474,808  
Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 29, 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 39-week periods ended September 29, 2018: 

 

    13-Weeks Ended September 29, 2018  
    Foreign Currency Translation Adjustment     Net unrealized gains (losses) on available-for-sale securities     Total  
Beginning Balance   $ 52,924     $ (43,192 )   $ 9,732  
Other comprehensive income before reclassification, net of income tax benefit of $107     (3,940 )     (1,353 )     (5,293 )
Amounts reclassified from accumulated other comprehensive income     —       185       185  
Net current-period other comprehensive income     (3,940 )     (1,168 )     (5,108 )
Reclassification of tax effects due to adoption of ASU 2018-02     —       —       —  
Ending Balance   $ 48,984     $ (44,360 )   $ 4,624  

  

    39-Weeks Ended September 29, 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 $3,014     (30,308 )     (21,490 )     (51,798 )
Amounts reclassified from accumulated other comprehensive income     —       446       446  
Net current-period other comprehensive income     (30,308 )     (21,044 )     (51,352 )
Reclassification of tax effects due to adoption of ASU 2018-02     —       (452 )     (452 )
Ending Balance   $ 48,984     $ (44,360 )   $ 4,624  

 

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 39-week periods ended September 29, 2018: 

 

13-Weeks Ended September 29, 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   $ (250 )   Other income (expense)
             
      65     Income tax benefit (provision)
    $ (185 )   Net of tax

 

39-Weeks Ended September 29, 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   $ (481 )   Other income (expense)
             
      35     Income tax benefit (provision)
    $ (446 )   Net of tax
Revenue
 9 Months Ended
Sep. 29, 2018
Revenue from Contract with Customer [Abstract]  
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 geographic region, major product category, and pattern of recognition.

 

Disaggregated revenue by geographic region (Americas, APAC, and EMEA) is presented in Note 4 – Segment Information. The Company has identified six major product categories – aviation, marine, outdoor, fitness, auto PND, and auto OEM. Note 4 also contains disaggregated revenue information of the aviation, marine, outdoor and fitness major product categories. Auto segment revenue presented in Note 4 is comprised of the auto PND and auto OEM major product categories as depicted below.

  

    Auto Revenue by Major Product Category
    13-Weeks Ended   39-Weeks Ended
    September 29,   September 30,   September 29,   September 30,
    2018   2017   2018   2017
Auto PND   64 %   70 %   66 %   69 %
Auto OEM   36 %   30 %   34 %   31 %

  

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     39-Weeks Ended  
    September 29,     September 30,     September 29,     September 30,  
    2018     2017     2018     2017  
Point in time   $ 761,216     $ 708,854     $ 2,286,740     $ 2,098,468  
Over time     48,795       42,390       128,596       125,773  
Net sales   $ 810,011     $ 751,244     $ 2,415,336     $ 2,224,241  

  

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 39-weeks ended September 29, 2018 are presented below:

  

    39-Weeks Ended  
    September 29,  
    2018  
    Deferred Revenue(1)     Deferred Costs(2)  
                 
Balance, beginning of period   $ 190,200     $ 63,554  
Deferrals in period     113,634       27,445  
Recognition of deferrals in period     (128,596 )     (33,032 )
Balance, end of period   $ 175,238     $ 57,967  

  

(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 $128,596 of deferred revenue recognized in the 39-weeks ended September 29, 2018, $88,775 was deferred as of the beginning of the period.

 

Approximately two-thirds of the $175,238 of deferred revenue at the end of the period, September 29, 2018, is recognized ratably over a period of three years or less.
Recently Issued Accounting Pronouncements Not Yet Adopted
 9 Months Ended
Sep. 29, 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 and Accounting Standards Update No. 2018-11 in July 2018, which provide clarifications and improvements to ASU 2016-02 (collectively, the “new lease standard”). Accounting Standards Update No. 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented. 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.

 

The Company will adopt the new lease standard at the beginning of the 2019 fiscal year using the optional transition method. 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 new lease standard will result in increases to the assets and liabilities on the Company’s consolidated balance sheets, as the majority of the Company’s leases are classified as operating leases. The Company continues to evaluate the full quantitative impact of adopting the new lease standard. The Company is also in the process of implementing changes to accounting policies, processes, systems, and internal controls in conjunction with adopting the new lease 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)
 9 Months Ended
Sep. 29, 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 39-week periods ended September 29, 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 September 29, 2018 and September 30, 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 revenue 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 September 30, 2017     39-Weeks Ended September 30, 2017  
    As reported     Restated(1)     Impact     As reported     Restated(1)     Impact  
Net sales   $ 743,077     $ 751,244     $ 8,167     $ 2,198,508     $ 2,224,241     $ 25,733  
Gross profit     433,665       437,523       3,858       1,283,646       1,294,459       10,813  
Operating income     169,790       173,648       3,858       489,485       500,298       10,813  
Income tax provision (benefit)     38,643       38,840       197       (54,372 )     (53,840 )     532  
Net income   $ 147,413     $ 151,074     $ 3,661     $ 556,175     $ 566,456     $ 10,281  
Diluted net income per share   $ 0.78     $ 0.80     $ 0.02     $ 2.95     $ 3.00     $ 0.05  

  

  (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 approximately $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)
 9 Months Ended
Sep. 29, 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 September 30, 2017     39-Weeks Ended September 30, 2017  
    As reported     Restated(1)     Impact     As reported     Restated(1)     Impact  
Net sales   $ 743,077     $ 751,244     $ 8,167     $ 2,198,508     $ 2,224,241     $ 25,733  
Gross profit     433,665       437,523       3,858       1,283,646       1,294,459       10,813  
Operating income     169,790       173,648       3,858       489,485       500,298       10,813  
Income tax provision (benefit)     38,643       38,840       197       (54,372 )     (53,840 )     532  
Net income   $ 147,413     $ 151,074     $ 3,661     $ 556,175     $ 566,456     $ 10,281  
Diluted net income per share   $ 0.78     $ 0.80     $ 0.02     $ 2.95     $ 3.00     $ 0.05  

 

  (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)
 9 Months Ended
Sep. 29, 2018
Inventory Disclosure [Abstract]  
Schedule of inventories

The components of inventories consist of the following:

  

    September 29,     December 30,  
    2018     2017  
             
Raw materials   $ 203,472     $ 179,659  
Work-in-process     92,050       75,754  
Finished goods     261,118       262,231  
Inventories   $ 556,640     $ 517,644  
Earnings Per Share (Tables)
 9 Months Ended
Sep. 29, 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  
    September 29,     September 30,  
    2018     2017  
Numerator:            
Numerator for basic and diluted net income per share - net income   $ 184,214     $ 151,074  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,799       187,616  
                 
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     1,206       874  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     190,005       188,490  
                 
Basic net income per share   $ 0.98     $ 0.81  
                 
Diluted net income per share   $ 0.97     $ 0.80  

 

    39-Weeks Ended  
    September 29,     September 30,  
    2018     2017  
Numerator:            
Numerator for basic and diluted net income per share - net income   $ 503,930     $ 566,456  
                 
Denominator:                
Denominator for basic net income per share – weighted-average common shares     188,554       187,902  
                 
Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units     1,032       769  
                 
Denominator for diluted net income per share – adjusted weighted-average common shares     189,586       188,671  
                 
Basic net income per share   $ 2.67     $ 3.01  
                 
Diluted net income per share   $ 2.66     $ 3.00  
Segment Information (Tables)
 9 Months Ended
Sep. 29, 2018
Segment Reporting [Abstract]  
Schedule of net sales ("revenue"), gross profit, and operating income

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 September 29, 2018                              
                                     
Net sales   $ 209,415     $ 190,185     $ 98,770     $ 165,214     $ 146,427     $ 810,011  
Gross profit     136,671       103,441       58,508       70,925       111,202       480,747  
Operating income     78,972       37,378       13,908       15,032       50,669       195,959  
                                                 
13-Weeks Ended September 30, 2017                                                
                                                 
Net sales   $ 184,937     $ 167,147     $ 77,312     $ 197,220     $ 124,628     $ 751,244  
Gross profit     118,175       96,135       44,574       87,819       90,820       437,523  
Operating income     67,810       33,492       18,420       19,829       34,097       173,648  
                                                 
39-Weeks Ended September 29, 2018                                                
                                                 
Net sales   $ 555,314     $ 581,315     $ 346,908     $ 486,653     $ 445,146     $ 2,415,336  
Gross profit     358,829       326,473       203,976       207,389       333,886       1,430,553  
Operating income     194,711       123,299       54,806       31,113       151,741       555,670  
                                                 
39-Weeks Ended September 30, 2017                                                
                                                 
Net sales   $ 495,589     $ 485,999     $ 290,302     $ 580,792     $ 371,559     $ 2,224,241  
Gross profit     319,457       276,014       166,690       257,744       274,554       1,294,459  
Operating income     176,544       89,452       60,860       61,379       112,063       500,298  
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 39-week periods ended September 29, 2018 and September 30, 2017. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

 

    13-Weeks Ended     39-Weeks Ended  
    September 29,     September 30,     September 29,     September 30,  
    2018     2017     2018     2017  
Americas   $ 370,239     $ 346,208     $ 1,153,330     $ 1,072,247  
EMEA     307,087       291,703       862,116       831,687  
APAC     132,685       113,333       399,890       320,307  
Net sales to external customers   $ 810,011     $ 751,244     $ 2,415,336     $ 2,224,241  

 

Net property and equipment by geographic region as of September 29, 2018 and September 30, 2017 are presented below.

 

    Americas     APAC     EMEA     Total  
September 29, 2018                                
Property and equipment, net   $ 403,556     $ 202,790     $ 44,459     $ 650,805  
                                 
September 30, 2017                                
Property and equipment, net   $ 356,351     $ 160,360     $ 37,730     $ 554,441  
Warranty Reserves (Tables)
 9 Months Ended
Sep. 29, 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  
    September 29,     September 30,  
    2018     2017  
             
Balance - beginning of period   $ 38,429     $ 37,012  
Accrual for products sold during the period     13,558       16,903  
Expenditures     (16,027 )     (18,246 )
Balance - end of period   $ 35,960     $ 35,669  

  

    39-Weeks Ended  
    September 29,     September 30,  
    2018     2017  
             
Balance - beginning of period   $ 36,827     $ 37,233  
Accrual for products sold during the period     40,682       40,850  
Expenditures     (41,549 )     (42,414 )
Balance - end of period   $ 35,960     $ 35,669  
Marketable Securities (Tables)
 9 Months Ended
Sep. 29, 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 September 29, 2018		  
    Total     Level 1     Level 2     Level 3  
U.S. Treasury securities   $ 25,040     $ —     $ 25,040     $ —  
Agency securities     46,291       —       46,291       —  
Mortgage-backed securities     140,318       —       140,318       —  
Corporate securities     942,532       —       942,532       —  
Municipal securities     168,588       —       168,588       —  
Other     152,039       —       152,039       —  
Total   $ 1,474,808     $ —     $ 1,474,808     $ —  

 

    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 September 29, 2018		  
    Amortized Cost     Gross Unrealized Gains     Gross Unrealized Losses     Fair Value  
U.S. Treasury securities   $ 25,499     $ —     $ (459 )   $ 25,040  
Agency securities     47,653       —       (1,362 )     46,291  
Mortgage-backed securities     148,837       3       (8,522 )     140,318  
Corporate securities     974,227       47       (31,742 )     942,532  
Municipal securities     172,157       3       (3,572 )     168,588  
Other     155,200       0       (3,161 )     152,039  
Total   $ 1,523,573     $ 53     $ (48,818 )   $ 1,474,808  

 

    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 September 29, 2018 and December 30, 2017.

  

    As of September 29, 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   $ (90 )   $ 11,405     $ (369 )   $ 13,635  
Agency securities     (48 )     7,700       (1,314 )     38,591  
Mortgage-backed securities     (9 )     513       (8,513 )     139,339  
Corporate securities     (9,256 )     477,194       (22,486 )     449,488  
Municipal securities     (1,766 )     106,380       (1,806 )     60,281  
Other     (830 )     37,869       (2,331 )     89,742  
Total   $ (11,999 )   $ 641,061     $ (36,819 )   $ 791,076  

  

    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 September 29, 2018, by maturity, are shown below.

 

    Amortized Cost     Fair Value  
             
Due in one year or less   $ 174,578     $ 173,697  
Due after one year through five years     1,228,112       1,189,069  
Due after five years through ten years     120,883       112,042  
    $ 1,523,573     $ 1,474,808  
Accumulated Other Comprehensive Income (Tables)
 9 Months Ended
Sep. 29, 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 39-week periods ended September 29, 2018:

 

    13-Weeks Ended September 29, 2018  
    Foreign Currency Translation Adjustment     Net unrealized gains (losses) on available-for-sale securities     Total  
Beginning Balance   $ 52,924     $ (43,192 )   $ 9,732  
Other comprehensive income before reclassification, net of income tax benefit of $107     (3,940 )     (1,353 )     (5,293 )
Amounts reclassified from accumulated other comprehensive income     —       185       185  
Net current-period other comprehensive income     (3,940 )     (1,168 )     (5,108 )
Reclassification of tax effects due to adoption of ASU 2018-02     —       —       —  
Ending Balance   $ 48,984     $ (44,360 )   $ 4,624  

 

    39-Weeks Ended September 29, 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 $3,014     (30,308 )     (21,490 )     (51,798 )
Amounts reclassified from accumulated other comprehensive income     —       446       446  
Net current-period other comprehensive income     (30,308 )     (21,044 )     (51,352 )
Reclassification of tax effects due to adoption of ASU 2018-02     —       (452 )     (452 )
Ending Balance   $ 48,984     $ (44,360 )   $ 4,624  
Schedule of reporting reclassifications out of AOCI

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 39-week periods ended September 29, 2018: 

 

13-Weeks Ended September 29, 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   $ (250 )   Other income (expense)
             
      65     Income tax benefit (provision)
    $ (185 )   Net of tax

 

39-Weeks Ended September 29, 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   $ (481 )   Other income (expense)
             
      35     Income tax benefit (provision)
    $ (446 )   Net of tax
Revenue (Tables)
 9 Months Ended
Sep. 29, 2018
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregated revenue by geographic region

Auto segment revenue presented in Note 4 is comprised of the auto PND and auto OEM major product categories as depicted below.

 

    Auto Revenue by Major Product Category
    13-Weeks Ended   39-Weeks Ended
    September 29,   September 30,   September 29,   September 30,
    2018   2017   2018   2017
Auto PND   64 %   70 %   66 %   69 %
Auto OEM   36 %   30 %   34 %   31 %
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     39-Weeks Ended  
    September 29,     September 30,     September 29,     September 30,  
    2018     2017     2018     2017  
Point in time   $ 761,216     $ 708,854     $ 2,286,740     $ 2,098,468  
Over time     48,795       42,390       128,596       125,773  
Net sales   $ 810,011     $ 751,244     $ 2,415,336     $ 2,224,241  
Schedule of deferred revenue and costs

 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 39-weeks ended September 29, 2018 are presented below:

 

    39-Weeks Ended  
    September 29,  
    2018  
   

 Deferred Revenue(1)

    

 Deferred Costs(2)

  
                 
Balance, beginning of period   $ 190,200     $ 63,554  
Deferrals in period     113,634       27,445  
Recognition of deferrals in period     (128,596 )     (33,032 )
Balance, end of period   $ 175,238     $ 57,967  

 

(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 $128,596 of deferred revenue recognized in the 39-weeks ended September 29, 2018, $88,775 was deferred as of the beginning of the period.

 

Approximately two-thirds of the $175,238 of deferred revenue at the end of the period, September 29, 2018, is recognized ratably over a period of three years or less.
Accounting Policies (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Dec. 30, 2017
Dec. 31, 2016
Jun. 30, 2018
Net sales $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241      
Gross profit 480,747 437,523 1,430,553 1,294,459      
Operating income 195,959 173,648 555,670 500,298      
Income tax provision (benefit) 17,113 38,840 87,445 (53,840)      
Net income $ 184,214 $ 151,074 $ 503,930 $ 566,456      
Diluted net income per share (in dollars per share) $ 0.97 $ 0.80 $ 2.66 $ 3.00      
Current assets:              
Deferred costs $ 28,235   $ 28,235   $ 30,525    
Total current assets 2,400,619   2,400,619   2,346,138    
Deferred income taxes 186,445   186,445   195,981    
Noncurrent deferred costs 29,732   29,732   33,029    
Total assets 5,095,967   5,095,967   4,948,289    
Current liabilities:              
Deferred revenue 97,604   97,604   103,140    
Total current liabilities 854,026   854,026   792,115    
Deferred income taxes 82,846   82,846   76,612    
Non-current deferred revenue 77,634   77,634   87,060    
Retained earnings 2,520,828   2,520,828   2,418,444    
Accumulated other comprehensive income 4,624   4,624   56,428   $ 9,732
Total stockholders' equity 3,952,708   3,952,708   3,852,419    
Total liabilities and stockholders' equity $ 5,095,967   $ 5,095,967   4,948,289    
As Reported [Member]              
Net sales   $ 743,077   $ 2,198,508 3,087,004 $ 3,018,665  
Gross profit   433,665   1,283,646 1,783,164 1,679,570  
Operating income   169,790   489,485 668,860 623,909  
Income tax provision (benefit)   38,643   (54,372) (12,661) 118,856  
Net income   $ 147,413   $ 556,175 $ 694,955 $ 510,814  
Diluted net income per share (in dollars per share)   $ 0.78   $ 2.95 $ 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   $ 751,244 [1]   $ 2,224,241 [1] 3,121,560 [2] 3,045,797 [2]  
Gross profit   437,523 [1]   1,294,459 [1] 1,797,941 [2] 1,688,525 [2]  
Operating income   173,648 [1]   500,298 [1] 683,637 [2] 632,864 [2]  
Income tax provision (benefit)   38,840 [1]   (53,840) [1] (11,936) [2] 120,901 [2]  
Net income   $ 151,074 [1]   $ 566,456 [1] $ 709,007 [2] $ 517,724 [2]  
Diluted net income per share (in dollars per share)   $ 0.80 [1]   $ 3.00 [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   $ 8,167   $ 25,733 34,556 27,132  
Gross profit   3,858   10,813 14,777 8,955  
Operating income   3,858   10,813 14,777 8,955  
Income tax provision (benefit)   197   532 725 2,045  
Net income   $ 3,661   $ 10,281 $ 14,052 $ 6,910  
Diluted net income per share (in dollars per share)   $ 0.02   $ 0.05 $ 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
Sep. 29, 2018
Dec. 30, 2017
Inventory Disclosure [Abstract]    
Raw materials $ 203,472 $ 179,659
Work-in-process 92,050 75,754
Finished goods 261,118 262,231
Inventories $ 556,640 $ 517,644
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Numerator:        
Numerator for basic and diluted net income per share - net income $ 184,214 $ 151,074 $ 503,930 $ 566,456
Denominator:        
Denominator for basic net income per share - weighted-average common shares 188,799 187,616 188,554 187,902
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units 1,206 874 1,032 769
Denominator for diluted net income per share - adjusted weighted-average common shares 190,005 188,490 189,586 188,671
Basic net income per share (in dollars per share) $ 0.98 $ 0.81 $ 2.67 $ 3.01
Diluted net income per share (in dollars per share) $ 0.97 $ 0.80 $ 2.66 $ 3.00
Earnings Per Share (Details Narrative) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Net income per share:        
Anti-dilutive stock options, stock appreciation rights and restricted stock units 0 1,051 0 1,567
Shares issued as a result of exercises and releases of equity awards 12 2 390 161
Employee stock purchase plan for treasury stock     230 248
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Net sales $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241
Gross profit 480,747 437,523 1,430,553 1,294,459
Operating income 195,959 173,648 555,670 500,298
Outdoor [Member]        
Net sales 209,415 184,937 555,314 495,589
Gross profit 136,671 118,175 358,829 319,457
Operating income 78,972 67,810 194,711 176,544
Fitness [Member]        
Net sales 190,185 167,147 581,315 485,999
Gross profit 103,441 96,135 326,473 276,014
Operating income 37,378 33,492 123,299 89,452
Marine [Member]        
Net sales 98,770 77,312 346,908 290,302
Gross profit 58,508 44,574 203,976 166,690
Operating income 13,908 18,420 54,806 60,860
Auto [Member]        
Net sales 165,214 197,220 486,653 580,792
Gross profit 70,925 87,819 207,389 257,744
Operating income 15,032 19,829 31,113 61,379
Aviation [Member]        
Net sales 146,427 124,628 445,146 371,559
Gross profit 111,202 90,820 333,886 274,554
Operating income $ 50,669 $ 34,097 $ 151,741 $ 112,063
Segment Information (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Net sales to external customers $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241
Americas [Member]        
Net sales to external customers 370,239 346,208 1,153,330 1,072,247
EMEA [Member]        
Net sales to external customers 307,087 291,703 862,116 831,687
APAC [Member]        
Net sales to external customers $ 132,685 $ 113,333 $ 399,890 $ 320,307
Segment Information (Details 2) - USD ($)
$ in Thousands
Sep. 29, 2018
Dec. 30, 2017
Sep. 30, 2017
Property and equipment, net $ 650,805 $ 595,684 $ 554,441
Americas [Member]      
Property and equipment, net 403,556   356,351
APAC [Member]      
Property and equipment, net 202,790   160,360
EMEA [Member]      
Property and equipment, net $ 44,459   $ 37,730
Segment Information (Details Narrative)
 9 Months Ended
Sep. 29, 2018
Segment
Segment Reporting [Abstract]  
Number of reportable segments 5
Warranty Reserves (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]        
Balance - beginning of period $ 38,429 $ 37,012 $ 36,827 $ 37,233
Accrual for products sold during the period 13,558 16,903 40,682 40,850
Expenditures (16,027) (18,246) (41,549) (42,414)
Balance - end of period $ 35,960 $ 35,669 $ 35,960 $ 35,669
Warranty Reserves (Details Narrative)
 9 Months Ended
Sep. 29, 2018
Minimum [Member]  
Product warranty term 1 year
Maximum [Member]  
Product warranty term 3 years
Commitments and Contingencies (Details Narrative)
$ in Thousands
Sep. 29, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Aggregate amount of purchase orders and other commitments $ 346,000
Income Taxes (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Income Tax Disclosure [Abstract]        
Income tax expense (benefit) $ 17,113 $ 38,840 $ 87,445 $ (53,840)
Effective income tax rate 8.50% 20.50% 14.80% 10.50%
Marketable Securities (Details) - USD ($)
$ in Thousands
Sep. 29, 2018
Dec. 30, 2017
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total $ 1,474,808 $ 1,421,720
U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 25,040 19,337
Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 46,291 43,361
Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 140,318 174,615
Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 168,588 186,105
Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 152,039 181,509
Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 942,532 816,793
Recurring Basis [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 1,474,808 1,421,720
Recurring Basis [Member] | U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 25,040 19,337
Recurring Basis [Member] | Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 46,291 43,361
Recurring Basis [Member] | Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 140,318 174,615
Recurring Basis [Member] | Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 168,588 186,105
Recurring Basis [Member] | Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 152,039 181,509
Recurring Basis [Member] | Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 942,532 816,793
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] | 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 1 [Member] | Corporate Securities [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 1,474,808 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 25,040 19,337
Recurring Basis [Member] | Level 2 [Member] | Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 46,291 43,361
Recurring Basis [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 140,318 174,615
Recurring Basis [Member] | Level 2 [Member] | Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 168,588 186,105
Recurring Basis [Member] | Level 2 [Member] | Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 152,039 181,509
Recurring Basis [Member] | Level 2 [Member] | Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale securities, total 942,532 816,793
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] | 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
Recurring Basis [Member] | Level 3 [Member] | Corporate Securities [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
Sep. 29, 2018
Dec. 30, 2017
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost $ 1,523,573 $ 1,446,428
Gross Unrealized Gains 53 262
Gross Unrealized Losses (48,818) (24,970)
Fair Value 1,474,808 1,421,720
U.S.Treasury Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 25,499 19,591
Gross Unrealized Gains
Gross Unrealized Losses (459) (254)
Fair Value 25,040 19,337
Agency Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 47,653 44,191
Gross Unrealized Gains 1
Gross Unrealized Losses (1,362) (831)
Fair Value 46,291 43,361
Mortgage-Backed Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 148,837 180,470
Gross Unrealized Gains 3 13
Gross Unrealized Losses (8,522) (5,868)
Fair Value 140,318 174,615
Corporate Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 974,227 830,447
Gross Unrealized Gains 47 136
Gross Unrealized Losses (31,742) (13,790)
Fair Value 942,532 816,793
Municipal Securities [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 172,157 187,999
Gross Unrealized Gains 3 110
Gross Unrealized Losses (3,572) (2,004)
Fair Value 168,588 186,105
Other [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 155,200 183,730
Gross Unrealized Gains 0 2
Gross Unrealized Losses (3,161) (2,223)
Fair Value $ 152,039 $ 181,509
Marketable Securities (Details 2) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 29, 2018
Dec. 30, 2017
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months $ (11,999) $ (8,590)
Fair Value Less than 12 Consecutive Months 641,061 749,831
Gross Unrealized Losses 12 Consecutive Months or Longer (36,819) (16,380)
Fair Value 12 Consecutive Months or Longer 791,076 573,976
U.S.Treasury Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (90) (111)
Fair Value Less than 12 Consecutive Months 11,405 12,966
Gross Unrealized Losses 12 Consecutive Months or Longer (369) (143)
Fair Value 12 Consecutive Months or Longer 13,635 6,371
Agency Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (48) (168)
Fair Value Less than 12 Consecutive Months 7,700 16,097
Gross Unrealized Losses 12 Consecutive Months or Longer (1,314) (663)
Fair Value 12 Consecutive Months or Longer 38,591 25,972
Mortgage-Backed Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (9) (503)
Fair Value Less than 12 Consecutive Months 513 19,628
Gross Unrealized Losses 12 Consecutive Months or Longer (8,513) (5,365)
Fair Value 12 Consecutive Months or Longer 139,339 153,835
Corporate Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (9,256) (4,562)
Fair Value Less than 12 Consecutive Months 477,194 439,174
Gross Unrealized Losses 12 Consecutive Months or Longer (22,486) (9,228)
Fair Value 12 Consecutive Months or Longer 449,488 347,052
Municipal Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (1,766) (1,027)
Fair Value Less than 12 Consecutive Months 106,380 125,819
Gross Unrealized Losses 12 Consecutive Months or Longer (1,806) (977)
Fair Value 12 Consecutive Months or Longer 60,281 38,167
Other [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses Less than 12 Consecutive Months (830) (2,219)
Fair Value Less than 12 Consecutive Months 37,869 136,147
Gross Unrealized Losses 12 Consecutive Months or Longer (2,331) (4)
Fair Value 12 Consecutive Months or Longer $ 89,742 $ 2,579
Marketable Securities (Details 3) - USD ($)
$ in Thousands
Sep. 29, 2018
Dec. 30, 2017
Amortized Cost    
Due in one year or less $ 174,578  
Due after one year through five years 1,228,112  
Due after five years through ten years 120,883  
Total 1,523,573 $ 1,446,428
Fair Value    
Due in one year or less 173,697  
Due after one year through five years 1,189,069  
Due after five years through ten years 112,042  
Total $ 1,474,808 $ 1,421,720
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 29, 2018
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]    
Beginning Balance $ 52,924 $ 79,292
Other comprehensive income before reclassification, net of income tax benefit (3,940) (30,308)
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive income (3,940) (30,308)
Ending Balance 48,984 48,984
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward]    
Beginning Balance (43,192) (22,864)
Other comprehensive income before reclassification, net of income tax benefit (1,353) (21,490)
Amounts reclassified from accumulated other comprehensive income 185 446
Net current-period other comprehensive income (1,168) (21,044)
Reclassification of tax effects due to adoption of ASU 2018-02 (452)
Ending Balance (44,360) (44,360)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]    
Beginning Balance 9,732 56,428
Other comprehensive income before reclassification, net of income tax benefit (5,293) (51,798)
Amounts reclassified from accumulated other comprehensive income 185 446
Net current-period other comprehensive income (5,108) (51,352)
Reclassification of tax effects due to adoption of ASU 2018-02 (452)
Ending Balance $ 4,624 $ 4,624
Accumulated Other Comprehensive Income (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Other income (expense) $ 5,368 $ 16,266 $ 35,705 $ 12,318
Income tax benefit (provision) (17,113) $ (38,840) (87,445) $ 53,840
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]        
Other income (expense) (250)   (481)  
Income tax benefit (provision) 65   35  
Net of tax $ (185)   $ (446)  
Revenue (Details)
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Auto PND [Member]        
Percentage of auto revenue 64.00% 70.00% 66.00% 69.00%
Auto OEM [Member]        
Percentage of auto revenue 36.00% 30.00% 34.00% 31.00%
Revenue (Details 1) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Net sales $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241
Point in Time [Member]        
Net sales 761,216 708,854 2,286,740 2,098,468
Over Time [Member]        
Net sales $ 48,795 $ 42,390 $ 128,596 $ 125,773
Revenue (Details 2)
$ in Thousands
 9 Months Ended
Sep. 29, 2018
USD ($)
Movement in Deferred Revenue [Roll Forward]  
Balance, beginning of period $ 190,200 [1]
Deferrals in period 113,634 [1]
Recognition of deferrals in period (128,596) [1]
Balance, end of period 175,238 [1]
Movement in Deferred Costs [Roll Forward]  
Balance, beginning of period 63,554 [2]
Deferrals in period 27,445 [2]
Recognition of deferrals in period (33,032) [2]
Balance, end of period $ 57,967 [2]
[1] Deferred costs are comprised of both Deferred costs and Noncurrent deferred costs per the Condensed Consolidated Balance Sheets.
[2] Deferred revenue is comprised of both Deferred revenue and Noncurrent deferred revenue per the Condensed Consolidated Balance Sheets