v2.4.0.6
Document And Entity Information
9 Months Ended
Sep. 28, 2013
Oct. 28, 2013
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 28, 2013  
Document Fiscal Year Focus 2013  
Document Fiscal Period Focus Q3  
Trading Symbol GRMN  
Entity Common Stock, Shares Outstanding   208,077,418
Entity Registrant Name GARMIN LTD  
Entity Central Index Key 0001121788  
Current Fiscal Year End Date --12-28  
Entity Filer Category Large Accelerated Filer  
v2.4.0.6
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 28, 2013
Dec. 29, 2012
Current assets:    
Cash and cash equivalents $ 1,068,700 $ 1,231,180
Marketable securities 134,253 153,083
Accounts receivable, net 475,707 603,673
Inventories, net 416,725 389,931
Deferred income taxes 67,437 68,785
Deferred costs 56,749 53,948
Prepaid expenses and other current assets 225,067 35,520
Total current assets 2,444,638 2,536,120
Property and equipment, net 413,675 409,751
Marketable securities 1,594,144 1,488,312
Restricted cash 252 836
Noncurrent deferred income tax 94,734 93,920
Noncurrent deferred costs 39,625 42,359
Other intangible assets, net 221,979 232,597
Other assets 14,179 15,229
Total assets 4,823,226 4,819,124
Current liabilities:    
Accounts payable 151,798 131,263
Salaries and benefits payable 63,064 55,969
Accrued warranty costs 34,639 37,301
Accrued sales program costs 36,487 57,080
Deferred revenue 255,830 252,375
Accrued royalty costs 34,285 71,745
Accrued advertising expense 16,862 25,192
Other accrued expenses 73,241 69,806
Deferred income taxes 63 332
Income taxes payable 44,060 32,031
Dividend payable 263,704 175,932
Total current liabilities 974,033 909,026
Deferred income taxes 3,516 2,467
Non-current income taxes 121,091 181,754
Non-current deferred revenue 166,165 193,047
Other liabilities 917 1,034
Stockholders' equity:    
Shares, CHF 10 par value, 208,077,418 shares authorized and issued; 195,221,791 shares outstanding at September 28, 2013 and 195,591,854 shares outstanding at December 29, 2012 1,797,435 1,797,435
Additional paid-in capital 87,377 72,462
Treasury stock (100,912) (81,280)
Retained earnings 1,701,823 1,604,625
Accumulated other comprehensive income 71,781 138,554
Total stockholders' equity 3,557,504 3,531,796
Total liabilities and stockholders' equity $ 4,823,226 $ 4,819,124
v2.4.0.6
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 28, 2013
Dec. 29, 2012
Shares, par value $ 10 $ 10
Shares, shares authorized 208,077,418 208,077,418
Shares, shares issued 208,077,418 208,077,418
Shares, shares outstanding 195,221,791 195,591,854
v2.4.0.6
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Net sales $ 643,637 $ 672,376 $ 1,872,156 $ 1,947,127
Cost of goods sold 290,748 313,321 859,494 882,501
Gross profit 352,889 359,055 1,012,662 1,064,626
Advertising expense 26,251 30,102 77,983 91,952
Selling, general and administrative expense 86,462 86,402 260,769 275,763
Research and development expense 88,427 82,489 272,349 242,510
Total operating expense 201,140 198,993 611,101 610,225
Operating income 151,749 160,062 401,561 454,401
Other income (expense):        
Interest income 8,435 7,987 25,512 26,278
Foreign currency gains (losses) (822) (6,364) 18,280 (16,124)
Other 1,438 942 3,666 5,064
Total other income (expense) 9,051 2,565 47,458 15,218
Income before income taxes 160,800 162,627 449,019 469,619
Income tax (benefit) provision (26,869) 22,279 192 56,510
Net income $ 187,669 $ 140,348 $ 448,827 $ 413,109
Net income per share:        
Basic $ 0.96 $ 0.72 $ 2.30 $ 2.12
Diluted $ 0.96 $ 0.72 $ 2.29 $ 2.11
Weighted average common shares outstanding:        
Basic 195,325 194,912 195,488 194,834
Diluted 196,300 196,161 196,312 196,171
Dividends declared per share     $ 1.80 $ 1.80
v2.4.0.6
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Net income $ 187,669 $ 140,348 $ 448,827 $ 413,109
Translation adjustment 13,379 22,591 (24,177) 31,881
Change in fair value of available-for-sale marketable securities, net of deferred taxes (6,441) 3,844 (42,596) 2,543
Comprehensive income $ 194,607 $ 166,783 $ 382,054 $ 447,533
v2.4.0.6
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Operating Activities:    
Net income $ 448,827 $ 413,109
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 36,840 40,025
Amortization 23,629 21,192
(Gain)/Loss on sale of property and equipment 41 (17)
Provision for doubtful accounts 1,023 2,786
Deferred income taxes 2,851 (7,384)
Unrealized foreign currency losses/(gains) (17,273) 24,974
Provision for obsolete and slow moving inventories 15,965 3,795
Stock compensation expense 15,608 26,364
Realized gains on marketable securities (2,963) (1,647)
Changes in operating assets and liabilities, net of acquisitions:    
Accounts receivable 128,098 103,039
Inventories (44,337) (44,761)
Other current and non-current assets (18,329) 14,051
Accounts payable 21,936 (20,271)
Other current and non-current liabilities (60,719) (63,839)
Deferred revenue (22,613) 35,277
Deferred cost (57) (8,561)
Income taxes payable (48,256) (28,098)
Net cash provided by operating activities 480,271 510,034
Investing activities:    
Purchases of property and equipment (41,325) (26,881)
Proceeds from sale of property and equipment 65 25
Purchase of intangible assets (1,574) (5,174)
Purchase of marketable securities (716,226) (1,004,021)
Redemption of marketable securities 578,464 735,521
Advances under loan receivable commitment (173,708) 0
Change in restricted cash 584 (59)
Acquisitions, net of cash acquired (5,686) (4,010)
Net cash used in investing activities (359,406) (304,599)
Financing activities:    
Dividends paid (263,857) (253,386)
Purchase of treasury stock under share repurchase plan (26,926) 0
Purchase of treasury stock related to equity awards (7,430) (6,542)
Proceeds from issuance of treasury stock related to equity awards 13,620 10,971
Tax benefit from issuance of equity awards 411 1,810
Net cash used in financing activities (284,182) (247,147)
Effect of exchange rate changes on cash and cash equivalents 837 1,625
Net increase/(decrease) in cash and cash equivalents (162,480) (40,087)
Cash and cash equivalents at beginning of period 1,231,180 1,287,160
Cash and cash equivalents at end of period $ 1,068,700 $ 1,247,073
v2.4.0.6
Basis of Presentation
9 Months Ended
Sep. 28, 2013
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Basis of Presentation
1.     Basis of Presentation
 
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the 13-week and 39-week periods ended September 28, 2013 are not necessarily indicative of the results that may be expected for the year ending December 28, 2013.
 
The condensed consolidated balance sheet at December 29, 2012 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 29, 2012.
 
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 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 quarters having only 13 weeks.  The quarters ended September 28, 2013 and September 29, 2012 both contain operating results for 13 weeks.
v2.4.0.6
Inventories
9 Months Ended
Sep. 28, 2013
Inventory Disclosure [Abstract]  
Inventories
2.     Inventories
 
The components of inventories consist of the following:
 
 
 
September 28, 2013
 
December 29, 2012
 
Raw materials
 
$
136,923
 
$
119,142
 
Work-in-process
 
 
52,894
 
 
53,656
 
Finished goods
 
 
256,996
 
 
243,238
 
Inventory reserves
 
 
(30,088)
 
 
(26,105)
 
Inventory, net of reserves
 
$
416,725
 
$
389,931
 
v2.4.0.6
Earnings Per Share
9 Months Ended
Sep. 28, 2013
Earnings Per Share [Abstract]  
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
 
 
 
Sept 28,
 
Sept 29,
 
 
 
2013
 
2012
 
Numerator:
 
 
 
 
 
 
 
Numerator for basic and diluted net income
    per share - net income
 
$
187,669
 
$
140,348
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Denominator for basic net income per share –
    weighted-average common shares
 
 
195,325
 
 
194,912
 
 
 
 
 
 
 
 
 
Effect of dilutive securities –
    stock options, stock appreciation rights
    and restricted stock units
 
 
975
 
 
1,249
 
 
 
 
 
 
 
 
 
Denominator for diluted net income per share –
    adjusted weighted-average common shares
 
 
196,300
 
 
196,161
 
 
 
 
 
 
 
 
 
Basic net income per share
 
$
0.96
 
$
0.72
 
 
 
 
 
 
 
 
 
Diluted net income per share
 
$
0.96
 
$
0.72
 
 
 
 
39-Weeks Ended
 
 
 
Sept 28,
 
Sept 29,
 
 
 
2013
 
2012
 
Numerator:
 
 
 
 
 
 
 
Numerator for basic and diluted net income
    per share - net income
 
$
448,827
 
$
413,109
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Denominator for basic net income per share –
    weighted-average common shares
 
 
195,488
 
 
194,834
 
 
 
 
 
 
 
 
 
Effect of dilutive securities –
    stock options, stock appreciation rights
    and restricted stock units
 
 
824
 
 
1,337
 
 
 
 
 
 
 
 
 
Denominator for diluted net income per share –
    adjusted weighted-average common shares
 
 
196,312
 
 
196,171
 
 
 
 
 
 
 
 
 
Basic net income per share
 
$
2.30
 
$
2.12
 
 
 
 
 
 
 
 
 
Diluted net income per share
 
$
2.29
 
$
2.11
 
 
 
There were 5,443,047 and 5,599,936 anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) for the 13-week periods ended September 28, 2013 and September 29, 2012, respectively.  
 
There were 5,507,363 and 5,667,000 anti-dilutive equity awards for the 39-week periods ended September 28, 2013 and September 29, 2012, respectively.  
 
There were 233,703 and 94,668 shares issued as a result of exercises of equity awards for the 13-week periods ended September 28, 2013 and September 29, 2012, respectively. 
 
There were 344,254 and 307,386 shares issued as a result of exercises of equity awards for the 39-week periods ended September 28, 2013 and September 29, 2012, respectively. 
v2.4.0.6
Segment Information
9 Months Ended
Sep. 28, 2013
Segment Reporting [Abstract]  
Segment Information
4.     Segment Information
 
The Company has identified five operating segments – Auto/Mobile, Aviation, Marine, Outdoor and Fitness.  Each operating segment is individually reviewed and evaluated by our Chief Operating Decision Maker, who allocates resources and assesses performance of each segment individually. 
 
Net sales, operating income, and income before taxes for each of the Company’s reportable segments are presented below:
 
 
 
 
Reportable Segments
 
 
 
 
 
 
 
 
 
 
 
 
 
Auto/
 
 
 
 
 
 
 
 
 
 
Outdoor
 
Fitness
 
Marine
 
Mobile
 
Aviation
 
Total
 
13-Weeks Ended September 28, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
$
101,350
 
$
81,007
 
$
55,301
 
$
322,520
 
$
83,459
 
$
643,637
 
Operating income
 
 
$
44,107
 
$
26,493
 
$
4,118
 
$
53,848
 
$
23,183
 
$
151,749
 
Income before taxes
 
 
$
45,556
 
$
27,938
 
$
4,347
 
$
58,144
 
$
24,815
 
$
160,800
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13-Weeks Ended September 29, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
$
105,572
 
$
64,788
 
$
44,766
 
$
384,393
 
$
72,857
 
$
672,376
 
Operating income
 
 
$
48,384
 
$
21,219
 
$
8,378
 
$
65,165
 
$
16,916
 
$
160,062
 
Income before taxes
 
 
$
48,953
 
$
21,853
 
$
8,705
 
$
65,399
 
$
17,717
 
$
162,627
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
39-Weeks Ended September 28, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
$
284,372
 
$
237,660
 
$
178,344
 
$
919,810
 
$
251,970
 
$
1,872,156
 
Operating income
 
 
$
110,538
 
$
76,026
 
$
16,089
 
$
134,324
 
$
64,584
 
$
401,561
 
Income before taxes
 
 
$
117,996
 
$
81,186
 
$
20,828
 
$
160,803
 
$
68,206
 
$
449,019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
39-Weeks Ended September 29, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
$
283,230
 
$
217,815
 
$
168,620
 
$
1,055,786
 
$
221,676
 
$
1,947,127
 
Operating income
 
 
$
118,032
 
$
76,016
 
$
35,584
 
$
170,208
 
$
54,561
 
$
454,401
 
Income before taxes
 
 
$
119,971
 
$
77,916
 
$
36,596
 
$
178,978
 
$
56,158
 
$
469,619
 
 
Allocation of certain research and development expenses, and selling, general, and administrative expenses are made to each segment on a percent of revenue basis.
 
Net sales and property and equipment, net by geographic area are as follows as of and for the 39-week periods ended September 28, 2013 and September 29, 2012.  Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa:
 
 
 
Americas
 
APAC
 
EMEA
 
Total
 
September 28, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales to external customers
 
$
1,002,796
 
$
176,524
 
$
692,836
 
$
1,872,156
 
Property and equipment, net
 
$
235,520
 
$
123,763
 
$
54,392
 
$
413,675
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 29, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales to external customers
 
$
1,068,289
 
$
186,165
 
$
692,673
 
$
1,947,127
 
Property and equipment, net
 
$
221,085
 
$
135,227
 
$
51,541
 
$
407,853
 
v2.4.0.6
Warranty Reserves
9 Months Ended
Sep. 28, 2013
Product Warranties Disclosures [Abstract]  
Warranty Reserves
5.     Warranty Reserves
 
The Company’s products sold are generally covered by a warranty for periods ranging from one to two 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
 
 
 
Sept 28,
 
Sept 29,
 
 
 
2013
 
2012
 
Balance - beginning of the period
 
$
34,288
 
$
40,797
 
Accrual for products sold
 
 
10,884
 
 
9,009
 
Expenditures
 
 
(10,533)
 
 
(10,659)
 
Balance - end of the period
 
$
34,639
 
$
39,147
 
 
 
 
39-Weeks Ended
 
 
 
Sept 28,
 
Sept 29,
 
 
 
2013
 
2012
 
Balance - beginning of the period
 
$
37,301
 
$
46,773
 
Accrual for products sold
 
 
29,076
 
 
24,863
 
Expenditures
 
 
(31,738)
 
 
(32,489)
 
Balance - end of the period
 
$
34,639
 
$
39,147
 
v2.4.0.6
Commitments and Contingencies
9 Months Ended
Sep. 28, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
6.     Commitments and Contingencies
 
We are party to certain commitments, which includes raw materials, advertising and other indirect purchases in connection with conducting our business.  Pursuant to these agreements, the Company is contractually committed to make purchases of approximately $213,173 over the next five years.
 
In the normal course of business, the Company and its subsidiaries are parties to various legal claims, actions, and complaints, including matters involving patent infringement, other intellectual property, product liability, customer claims and various other risks.  It is not possible to predict with certainty whether or not the Company and its subsidiaries will ultimately be successful in any of these legal matters, or if not, what the impact might be.   However, the Company’s management does not expect that the results in any of these legal proceedings will have a material adverse effect on the Company’s results of operations, financial position or cash flows.
 
On March 14, 2013, the Company entered into a Memorandum of Agreement (the “Agreement”) with Bombardier, Inc. (“Bombardier”).  The Company is the supplier of the avionics system for the Lear 70 and Lear 75 aircraft currently in development for Learjet, Inc., which is a subsidiary of Bombardier (the “Program”).  In order to assist Bombardier in connection with delayed cash flows from the Program partially related to the certification of avionics for the Program exceeding the planned delivery date, the Company agreed to provide Bombardier a short term, interest free, loan of $173,708 in cash in seven installments beginning on March 22, 2013 and ending on September 20, 2013 pursuant to the terms and conditions of the Agreement.  Bombardier will repay the loan in five installments beginning in November 2013 and ending in March 2014 pursuant to the terms and conditions of the Agreement.  As of September 28, 2013, the Company had advanced $173,708 to Bombardier, which is included in prepaid and other current assets in the accompanying condensed consolidated balance sheet.
v2.4.0.6
Income Taxes
9 Months Ended
Sep. 28, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
7.     Income Taxes
 
Our earnings before taxes decreased 1.1% when compared to the same quarter in 2012, while our income tax expense decreased by $49,148, to ($26,869) for the 13-week period ended September 28, 2013, from $22,279 for the 13-week period ended September 29, 2012.  The significant decline was due primarily to the impact of a $52,180 benefit in the third quarter which includes the release of uncertain tax position reserves from 2009 offset by Taiwan surtax expense due to this reserve release.  Excluding this item, we would have reported an effective tax rate of 15.7% in the third quarter of 2013 compared to 13.7% in the third quarter of 2012.  This increase was primarily driven by an unfavorable income mix across tax jurisdictions, as well as the release of other uncertain tax position reserves, amounting to approximately ($401) in third quarter 2013 and $1,737 in the third quarter 2012 that are considered immaterial, tend to be more recurring in nature and are comparable between periods.
 
Our earnings before taxes decreased 4.4% when compared to the same period in 2012, while our income tax expense decreased by $56,318 to $192, for the 39-week period ended September 28, 2013, from $56,510 for the 39-week period ended September 29, 2012.   The significant decline was due to the impact of a $52,180 benefit in the third quarter, which includes the release of uncertain tax position reserves from 2009 offset by Taiwan surtax expense due to this reserve release and a $16,536 benefit in the first quarter of 2013, also related to reserve releases.  Excluding these items, we would have reported an effective tax rate of 15.3% for the first three quarters of 2013 compared to 12.0% for the first three quarters of 2012.  This increase was primarily driven by an unfavorable income mix across tax jurisdictions, as well as the release of other uncertain tax position reserves amounting to approximately $9,556 for the 39-weeks ended September 28, 2013 and $11,945 for the 39-weeks ended September 29, 2012 that are considered immaterial, tend to be more recurring in nature and are comparable between periods, partially offset by the impact of $6,301 of research and development tax credits related to 2012 which were recognized when the related legislation was enacted in January 2013.
v2.4.0.6
Marketable Securities
9 Months Ended
Sep. 28, 2013
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities
8.     Marketable Securities
 
The FASB ASC topic entitled Fair Value Measurements and Disclosures defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).  The accounting guidance classifies the inputs used to measure fair value into the following hierarchy:
 
Level 1
Unadjusted quoted prices in active markets for identical assets or liability
 
 
 
 
Level 2
Observable inputs for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability
 
 
 
 
Level 3
Unobservable inputs for the asset or liability
 
 
The Company endeavors to utilize the best available information in measuring fair value.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  The valuation methods used by the Company for each significant class of investments are summarized below.
 
Mortgage-backed securities, corporate bonds and obligations of states and political subdivisions – Valued 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.
 
Common stocks – Valued at the closing price reported on the active market on which the individual securities are traded.
 
The methods 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 estimated fair value on a recurring basis are summarized below:
 
 
 
Fair Value Measurements as
of September 28, 2013
 
Description
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
518,840
 
$
-
 
$
518,840
 
$
-
 
Obligations of states and political subdivisions
 
 
690,615
 
 
-
 
 
690,615
 
 
-
 
Corporate bonds
 
 
420,345
 
 
-
 
 
420,345
 
 
-
 
Common stocks
 
 
27,435
 
 
27,435
 
 
-
 
 
-
 
Other
 
 
71,162
 
 
-
 
 
71,162
 
 
-
 
Total
 
$
1,728,397
 
$
27,435
 
$
1,700,962
 
$
-
 
 
 
 
Fair Value Measurements as
 
 
 
of December 29, 2012
 
Description
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
650,895
 
$
-
 
$
650,895
 
$
-
 
Obligations of states and political subdivisions
 
 
499,857
 
 
-
 
 
499,857
 
 
-
 
Corporate bonds
 
 
399,941
 
 
-
 
 
399,941
 
 
-
 
Common stocks
 
 
22,982
 
 
22,982
 
 
-
 
 
-
 
Other
 
 
67,720
 
 
-
 
 
67,720
 
 
-
 
Total
 
$
1,641,395
 
$
22,982
 
$
1,618,413
 
$
-
 
 
The following is a summary of the Company’s marketable securities classified as available-for-sale securities at September 28, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Fair
 
 
 
 
 
 
 
 
 
Gross
 
Other Than
 
Value (Net
 
 
 
 
 
 
Gross Unrealized
 
Unrealized
 
Temporary
 
Carrying
 
 
 
Amortized Cost
 
Gains
 
Losses
 
Impairment
 
Amount)
 
Mortgage-backed securities
 
$
534,722
 
$
4,386
 
$
(20,268)
 
$
-
 
$
518,840
 
Obligations of states and political subdivisions
 
 
711,989
 
 
1,649
 
 
(23,023)
 
 
-
 
 
690,615
 
U.S. corporate bonds
 
 
424,439
 
 
1,658
 
 
(4,478)
 
 
(1,274)
 
 
420,345
 
Common stocks
 
 
23,795
 
 
3,975
 
 
(335)
 
 
-
 
 
27,435
 
Other
 
 
67,914
 
 
3,335
 
 
(87)
 
 
-
 
 
71,162
 
Total
 
$
1,762,859
 
$
15,003
 
$
(48,191)
 
$
(1,274)
 
$
1,728,397
 
 
In the first three quarters of 2013, Garmin experienced unrealized, non-cash losses on its investment portfolio resulting in a balance of $48,191 of gross unrealized losses on marketable securities at September 28, 2013.  The amortized cost and estimated fair value of the securities at an unrealized loss position at September 28, 2013 were $1,165,053 and $1,116,862, respectively.  This decrease in estimated fair value is primarily due to market valuations on mortgage-backed securities and obligations of states and political subdivisions declining.  The decline was due to increases in the 10 Year Treasury Bond Yield during the second and third quarters, which caused market valuations of certain securities in our investment portfolios to decline.   Approximately 47% of the securities in our portfolio were at an unrealized loss position at September 28, 2013.  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 and no impairment has been recorded in the accompanying condensed consolidated statement of income.
 
The following is a summary of the Company’s marketable securities classified as available-for-sale securities at December 29, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Fair
 
 
 
 
 
 
 
 
 
Gross
 
Other Than
 
Value (Net
 
 
 
 
 
 
Gross Unrealized
 
Unrealized
 
Temporary
 
Carrying
 
 
 
Amortized Cost
 
Gains
 
Losses
 
Impairment
 
Amount)
 
Mortgage-backed securities
 
$
644,388
 
$
8,894
 
$
(2,387)
 
$
-
 
$
650,895
 
Obligations of states and political subdivisions
 
 
499,241
 
 
2,345
 
 
(1,729)
 
 
-
 
 
499,857
 
U.S. corporate bonds
 
 
400,310
 
 
3,138
 
 
(2,233)
 
 
(1,274)
 
 
399,941
 
Common stocks
 
 
21,113
 
 
2,392
 
 
(523)
 
 
-
 
 
22,982
 
Other
 
 
67,181
 
 
551
 
 
(12)
 
 
-
 
 
67,720
 
Total
 
$
1,632,233
 
$
17,320
 
$
(6,884)
 
$
(1,274)
 
$
1,641,395
 
 
The cost of securities sold is based on the specific identification method.
 
The amortized cost and estimated fair value of marketable securities at September 28, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
 
 
 
Cost
 
Estimated
Fair Value
 
Due in one year or less
 
$
136,835
 
$
134,253
 
Due after one year through five years
 
 
688,846
 
 
686,299
 
Due after five years through ten years
 
 
257,244
 
 
249,112
 
Due after ten years
 
 
621,050
 
 
592,932
 
Other (No contractual maturity dates)
 
 
58,884
 
 
65,801
 
 
 
$
1,762,859
 
$
1,728,397
 
v2.4.0.6
Share Repurchase Plan
9 Months Ended
Sep. 28, 2013
Treasury Stock [Abstract]  
Share Repurchase Plan
9.     Share Repurchase Plan
 
On February 15, 2013, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $300,000 of its common shares.  A Rule 10b5-1 plan was adopted and allows the repurchase of its shares at times when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods.  The share repurchase authorization expires on December 31, 2014.  As of September 28, 2013, the Company had repurchased 713,092 shares using cash of $26,926.  There remains approximately $273,074 available for repurchase under this authorization.
v2.4.0.6
Accumulated Other Comprehensive Income
9 Months Ended
Sep. 28, 2013
Accumulated Other Comprehensive Income [Abstract]  
Accumulated Other Comprehensive Income
10.  Accumulated Other Comprehensive Income
 
The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week and 39-week periods ended September 28, 2013:
 
 
 
13-Weeks Ended Sept 28, 2013
 
 
 
Foreign Currency
Translation
Adjustment
 
Unrealized Gains
(Losses) on
Available for Sale
Securities
 
Total
 
Balance - beginning of period
 
$
91,416
 
$
(26,573)
 
$
64,843
 
Other comprehensive income before reclassification
 
 
13,379
 
 
(6,336)
 
 
7,043
 
Amounts reclassified from accumulated other comprehensive income
 
 
-
 
 
(105)
 
 
(105)
 
Net current-period other comprehensive income
 
 
13,379
 
 
(6,441)
 
 
6,938
 
Balance - end of period
 
$
104,795
 
$
(33,014)
 
$
71,781
 
 
 
 
39-Weeks Ended Sept 28, 2013
 
 
 
Foreign Currency
Translation
Adjustment
 
Unrealized Gains
(Losses) on
Available for Sale
Securities
 
Total
 
Balance - beginning of period
 
$
128,972
 
$
9,582
 
$
138,554
 
Other comprehensive income before reclassification
 
 
(24,177)
 
 
(39,810)
 
 
(63,987)
 
Amounts reclassified from accumulated other comprehensive income
 
 
-
 
 
(2,786)
 
 
(2,786)
 
Net current-period other comprehensive income
 
 
(24,177)
 
 
(42,596)
 
 
(66,773)
 
Balance - end of period
 
$
104,795
 
$
(33,014)
 
$
71,781
 
 
The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 39-week periods ended September 28, 2013:
 
13-Weeks Ended Sept 28, 2013
 
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
 
$
137
 
Other income (expense)
 
 
 
 
(32)
 
Income tax provision
 
 
 
$
105
 
Net of tax
 
 
39-Weeks Ended Sept 28, 2013
 
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
 
$
2,963
 
Other income (expense)
 
 
 
 
(177)
 
Income tax provision
 
 
 
$
2,786
 
Net of tax
 
v2.4.0.6
License Fees
9 Months Ended
Sep. 28, 2013
License Fees Disclosure [Abstract]  
License Fees
11.  License Fees
 
During the second quarter of 2012, the Company determined certain license fee payments to one of its suppliers had exceeded contractual requirements since the third quarter of 2010.  The periodic royalty audit by the supplier, which was already underway, was completed in June 2012, resulting in a net overpayment of such license fees of $20.8 million.  This credit is reflected in cost of goods sold for the 39-week period ended September 29, 2012.
v2.4.0.6
Recently Issued Accounting Pronouncements
9 Months Ended
Sep. 28, 2013
New Accounting Pronouncements and Changes In Accounting Principles [Abstract]  
Recently Issued Accounting Pronouncements
12.  Recently Issued Accounting Pronouncements
 
In July 2012, the FASB issued Accounting Standards Update No. 2012-02 “Testing Indefinite-Lived Intangible Assets for Impairment” (ASU 2012-02), which is included in ASC Topic 350 (Intangibles—Goodwill and Other).  ASU 2012-02 provides an option for companies to use a qualitative approach to test indefinite-lived intangible assets for impairment if certain conditions are met.  The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012.  The implementation of the amended accounting guidance did not have a material impact on the Company’s financial statements.
 
In February 2013, the FASB issued Accounting Standards Update No. 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02), which is included in ASC Topic 220 (Comprehensive Income).  The objective of ASU 2013-02 is to improve the reporting of reclassifications out of accumulated other comprehensive income.  The amendments are effective prospectively for reporting periods beginning after December 15, 2012.  The Company has implemented this amendment and has included the required disclosure in the Notes to Condensed Consolidated Financial Statements. 
 
In July 2013, the FASB issued Accounting Standards Update No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11), which is included in ASC Topic 740 (Income Taxes).  ASU 2013-11 requires an entity to net its liability for unrecognized tax positions against a net operating loss carryforward, a similar tax loss or a tax credit carryforward when settlement in this manner is available under the tax law.  The provisions of this new guidance are effective for reporting periods beginning after December 15, 2013.  We are currently evaluating the impact of the new guidance on our financial statements.
v2.4.0.6
Inventories (Tables)
9 Months Ended
Sep. 28, 2013
Disclosure Inventories [Abstract]  
Components of Inventories
The components of inventories consist of the following:
 
 
 
September 28, 2013
 
December 29, 2012
 
Raw materials
 
$
136,923
 
$
119,142
 
Work-in-process
 
 
52,894
 
 
53,656
 
Finished goods
 
 
256,996
 
 
243,238
 
Inventory reserves
 
 
(30,088)
 
 
(26,105)
 
Inventory, net of reserves
 
$
416,725
 
$
389,931
 
v2.4.0.6
Earnings Per Share (Tables)
9 Months Ended
Sep. 28, 2013
Earnings Per Share [Abstract]  
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
 
 
 
Sept 28,
 
Sept 29,
 
 
 
2013
 
2012
 
Numerator:
 
 
 
 
 
 
 
Numerator for basic and diluted net income
    per share - net income
 
$
187,669
 
$
140,348
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Denominator for basic net income per share –
    weighted-average common shares
 
 
195,325
 
 
194,912
 
 
 
 
 
 
 
 
 
Effect of dilutive securities –
    stock options, stock appreciation rights
    and restricted stock units
 
 
975
 
 
1,249
 
 
 
 
 
 
 
 
 
Denominator for diluted net income per share –
    adjusted weighted-average common shares
 
 
196,300
 
 
196,161
 
 
 
 
 
 
 
 
 
Basic net income per share
 
$
0.96
 
$
0.72
 
 
 
 
 
 
 
 
 
Diluted net income per share
 
$
0.96
 
$
0.72
 
 
 
 
39-Weeks Ended
 
 
 
Sept 28,
 
Sept 29,
 
 
 
2013
 
2012
 
Numerator:
 
 
 
 
 
 
 
Numerator for basic and diluted net income
    per share - net income
 
$
448,827
 
$
413,109
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Denominator for basic net income per share –
    weighted-average common shares
 
 
195,488
 
 
194,834
 
 
 
 
 
 
 
 
 
Effect of dilutive securities –
    stock options, stock appreciation rights
    and restricted stock units
 
 
824
 
 
1,337
 
 
 
 
 
 
 
 
 
Denominator for diluted net income per share –
    adjusted weighted-average common shares
 
 
196,312
 
 
196,171
 
 
 
 
 
 
 
 
 
Basic net income per share
 
$
2.30
 
$
2.12
 
 
 
 
 
 
 
 
 
Diluted net income per share
 
$
2.29
 
$
2.11
 
v2.4.0.6
Segment Information (Tables)
9 Months Ended
Sep. 28, 2013
Segment Reporting [Abstract]  
Net Sales Operating Income and Income Before Taxes for Reportable Segments
Net sales, operating income, and income before taxes for each of the Company’s reportable segments are presented below:
 
 
 
 
Reportable Segments
 
 
 
 
 
 
 
 
 
 
 
 
 
Auto/
 
 
 
 
 
 
 
 
 
 
Outdoor
 
Fitness
 
Marine
 
Mobile
 
Aviation
 
Total
 
13-Weeks Ended September 28, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
$
101,350
 
$
81,007
 
$
55,301
 
$
322,520
 
$
83,459
 
$
643,637
 
Operating income
 
 
$
44,107
 
$
26,493
 
$
4,118
 
$
53,848
 
$
23,183
 
$
151,749
 
Income before taxes
 
 
$
45,556
 
$
27,938
 
$
4,347
 
$
58,144
 
$
24,815
 
$
160,800
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13-Weeks Ended September 29, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
$
105,572
 
$
64,788
 
$
44,766
 
$
384,393
 
$
72,857
 
$
672,376
 
Operating income
 
 
$
48,384
 
$
21,219
 
$
8,378
 
$
65,165
 
$
16,916
 
$
160,062
 
Income before taxes
 
 
$
48,953
 
$
21,853
 
$
8,705
 
$
65,399
 
$
17,717
 
$
162,627
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
39-Weeks Ended September 28, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
$
284,372
 
$
237,660
 
$
178,344
 
$
919,810
 
$
251,970
 
$
1,872,156
 
Operating income
 
 
$
110,538
 
$
76,026
 
$
16,089
 
$
134,324
 
$
64,584
 
$
401,561
 
Income before taxes
 
 
$
117,996
 
$
81,186
 
$
20,828
 
$
160,803
 
$
68,206
 
$
449,019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
39-Weeks Ended September 29, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
$
283,230
 
$
217,815
 
$
168,620
 
$
1,055,786
 
$
221,676
 
$
1,947,127
 
Operating income
 
 
$
118,032
 
$
76,016
 
$
35,584
 
$
170,208
 
$
54,561
 
$
454,401
 
Income before taxes
 
 
$
119,971
 
$
77,916
 
$
36,596
 
$
178,978
 
$
56,158
 
$
469,619
 
Net Sales and Property and Equipment Net by Geographic Area
Net sales and property and equipment, net by geographic area are as follows as of and for the 39-week periods ended September 28, 2013 and September 29, 2012.  Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa:
 
 
 
Americas
 
APAC
 
EMEA
 
Total
 
September 28, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales to external customers
 
$
1,002,796
 
$
176,524
 
$
692,836
 
$
1,872,156
 
Property and equipment, net
 
$
235,520
 
$
123,763
 
$
54,392
 
$
413,675
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 29, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales to external customers
 
$
1,068,289
 
$
186,165
 
$
692,673
 
$
1,947,127
 
Property and equipment, net
 
$
221,085
 
$
135,227
 
$
51,541
 
$
407,853
 
v2.4.0.6
Warranty Reserves (Tables)
9 Months Ended
Sep. 28, 2013
Product Warranties Disclosures [Abstract]  
Changes in Aggregate Warranty Reserve
The following reconciliation provides an illustration of changes in the aggregate warranty reserve.
 
 
 
13-Weeks Ended
 
 
 
Sept 28,
 
Sept 29,
 
 
 
2013
 
2012
 
Balance - beginning of the period
 
$
34,288
 
$
40,797
 
Accrual for products sold
 
 
10,884
 
 
9,009
 
Expenditures
 
 
(10,533)
 
 
(10,659)
 
Balance - end of the period
 
$
34,639
 
$
39,147
 
 
 
 
39-Weeks Ended
 
 
 
Sept 28,
 
Sept 29,
 
 
 
2013
 
2012
 
Balance - beginning of the period
 
$
37,301
 
$
46,773
 
Accrual for products sold
 
 
29,076
 
 
24,863
 
Expenditures
 
 
(31,738)
 
 
(32,489)
 
Balance - end of the period
 
$
34,639
 
$
39,147
 
v2.4.0.6
Marketable Securities (Tables)
9 Months Ended
Sep. 28, 2013
Investments, Debt and Equity Securities [Abstract]  
Available For Sale Securities Measured At Estimated Fair Value On Recurring Basis
Available for sale securities measured at estimated fair value on a recurring basis are summarized below:
 
 
 
Fair Value Measurements as
of September 28, 2013
 
Description
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
518,840
 
$
-
 
$
518,840
 
$
-
 
Obligations of states and political subdivisions
 
 
690,615
 
 
-
 
 
690,615
 
 
-
 
Corporate bonds
 
 
420,345
 
 
-
 
 
420,345
 
 
-
 
Common stocks
 
 
27,435
 
 
27,435
 
 
-
 
 
-
 
Other
 
 
71,162
 
 
-
 
 
71,162
 
 
-
 
Total
 
$
1,728,397
 
$
27,435
 
$
1,700,962
 
$
-
 
 
 
 
Fair Value Measurements as
 
 
 
of December 29, 2012
 
Description
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
650,895
 
$
-
 
$
650,895
 
$
-
 
Obligations of states and political subdivisions
 
 
499,857
 
 
-
 
 
499,857
 
 
-
 
Corporate bonds
 
 
399,941
 
 
-
 
 
399,941
 
 
-
 
Common stocks
 
 
22,982
 
 
22,982
 
 
-
 
 
-
 
Other
 
 
67,720
 
 
-
 
 
67,720
 
 
-
 
Total
 
$
1,641,395
 
$
22,982
 
$
1,618,413
 
$
-
 
Marketable Securities Classified as Available-For-Sale Securities
The following is a summary of the Company’s marketable securities classified as available-for-sale securities at September 28, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Fair
 
 
 
 
 
 
 
 
 
Gross
 
Other Than
 
Value (Net
 
 
 
 
 
 
Gross Unrealized
 
Unrealized
 
Temporary
 
Carrying
 
 
 
Amortized Cost
 
Gains
 
Losses
 
Impairment
 
Amount)
 
Mortgage-backed securities
 
$
534,722
 
$
4,386
 
$
(20,268)
 
$
-
 
$
518,840
 
Obligations of states and political subdivisions
 
 
711,989
 
 
1,649
 
 
(23,023)
 
 
-
 
 
690,615
 
U.S. corporate bonds
 
 
424,439
 
 
1,658
 
 
(4,478)
 
 
(1,274)
 
 
420,345
 
Common stocks
 
 
23,795
 
 
3,975
 
 
(335)
 
 
-
 
 
27,435
 
Other
 
 
67,914
 
 
3,335
 
 
(87)
 
 
-
 
 
71,162
 
Total
 
$
1,762,859
 
$
15,003
 
$
(48,191)
 
$
(1,274)
 
$
1,728,397
 
 
 
The following is a summary of the Company’s marketable securities classified as available-for-sale securities at December 29, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Fair
 
 
 
 
 
 
 
 
 
Gross
 
Other Than
 
Value (Net
 
 
 
 
 
 
Gross Unrealized
 
Unrealized
 
Temporary
 
Carrying
 
 
 
Amortized Cost
 
Gains
 
Losses
 
Impairment
 
Amount)
 
Mortgage-backed securities
 
$
644,388
 
$
8,894
 
$
(2,387)
 
$
-
 
$
650,895
 
Obligations of states and political subdivisions
 
 
499,241
 
 
2,345
 
 
(1,729)
 
 
-
 
 
499,857
 
U.S. corporate bonds
 
 
400,310
 
 
3,138
 
 
(2,233)
 
 
(1,274)
 
 
399,941
 
Common stocks
 
 
21,113
 
 
2,392
 
 
(523)
 
 
-
 
 
22,982
 
Other
 
 
67,181
 
 
551
 
 
(12)
 
 
-
 
 
67,720
 
Total
 
$
1,632,233
 
$
17,320
 
$
(6,884)
 
$
(1,274)
 
$
1,641,395
 
 
Amortized Cost and Estimated Fair Value of Marketable Securities, by Contractual Maturity
The amortized cost and estimated fair value of marketable securities at September 28, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
 
 
 
Cost
 
Estimated
Fair Value
 
Due in one year or less
 
$
136,835
 
$
134,253
 
Due after one year through five years
 
 
688,846
 
 
686,299
 
Due after five years through ten years
 
 
257,244
 
 
249,112
 
Due after ten years
 
 
621,050
 
 
592,932
 
Other (No contractual maturity dates)
 
 
58,884
 
 
65,801
 
 
 
$
1,762,859
 
$
1,728,397
 
v2.4.0.6
Accumulated Other Comprehensive Income (Tables)
9 Months Ended
Sep. 28, 2013
Accumulated Other Comprehensive Income [Abstract]  
Changes in 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 28, 2013:
 
 
 
13-Weeks Ended Sept 28, 2013
 
 
 
Foreign Currency
Translation
Adjustment
 
Unrealized Gains
(Losses) on
Available for Sale
Securities
 
Total
 
Balance - beginning of period
 
$
91,416
 
$
(26,573)
 
$
64,843
 
Other comprehensive income before reclassification
 
 
13,379
 
 
(6,336)
 
 
7,043
 
Amounts reclassified from accumulated other comprehensive income
 
 
-
 
 
(105)
 
 
(105)
 
Net current-period other comprehensive income
 
 
13,379
 
 
(6,441)
 
 
6,938
 
Balance - end of period
 
$
104,795
 
$
(33,014)
 
$
71,781
 
 
 
 
39-Weeks Ended Sept 28, 2013
 
 
 
Foreign Currency
Translation
Adjustment
 
Unrealized Gains
(Losses) on
Available for Sale
Securities
 
Total
 
Balance - beginning of period
 
$
128,972
 
$
9,582
 
$
138,554
 
Other comprehensive income before reclassification
 
 
(24,177)
 
 
(39,810)
 
 
(63,987)
 
Amounts reclassified from accumulated other comprehensive income
 
 
-
 
 
(2,786)
 
 
(2,786)
 
Net current-period other comprehensive income
 
 
(24,177)
 
 
(42,596)
 
 
(66,773)
 
Balance - end of period
 
$
104,795
 
$
(33,014)
 
$
71,781
 
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 28, 2013:
 
13-Weeks Ended Sept 28, 2013
 
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
 
$
137
 
Other income (expense)
 
 
 
 
(32)
 
Income tax provision
 
 
 
$
105
 
Net of tax
 
 
39-Weeks Ended Sept 28, 2013
 
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
 
$
2,963
 
Other income (expense)
 
 
 
 
(177)
 
Income tax provision
 
 
 
$
2,786
 
Net of tax
 
v2.4.0.6
Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 28, 2013
Dec. 29, 2012
Schedule of Inventory [Line Items]    
Raw materials $ 136,923 $ 119,142
Work-in-process 52,894 53,656
Finished goods 256,996 243,238
Inventory reserves (30,088) (26,105)
Inventory, net of reserves $ 416,725 $ 389,931
v2.4.0.6
Earnings Per Share (Computation of Basic and Diluted Net Income Per Share) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Numerator:        
Numerator for basic and diluted net income per share - net income $ 187,669 $ 140,348 $ 448,827 $ 413,109
Denominator:        
Denominator for basic net income per share - weighted-average common shares 195,325 194,912 195,488 194,834
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units 975 1,249 824 1,337
Denominator for diluted net income per share - adjusted weighted-average common shares 196,300 196,161 196,312 196,171
Basic net income per share $ 0.96 $ 0.72 $ 2.30 $ 2.12
Diluted net income per share $ 0.96 $ 0.72 $ 2.29 $ 2.11
v2.4.0.6
Earnings Per Share (Additional Information) (Details)
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive stock options, stock appreciation rights and restricted stock units 5,443,047 5,599,936 5,507,363 5,667,000
Shares issued as a result of exercises of equity awards 233,703 94,668 344,254 307,386
v2.4.0.6
Segment Information (Net Sales Operating Income and Income Before Taxes for Reportable Segments) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Segment Reporting Information [Line Items]        
Net sales $ 643,637 $ 672,376 $ 1,872,156 $ 1,947,127
Operating income 151,749 160,062 401,561 454,401
Income before taxes 160,800 162,627 449,019 469,619
Outdoor [Member]
       
Segment Reporting Information [Line Items]        
Net sales 101,350 105,572 284,372 283,230
Operating income 44,107 48,384 110,538 118,032
Income before taxes 45,556 48,953 117,996 119,971
Fitness [Member]
       
Segment Reporting Information [Line Items]        
Net sales 81,007 64,788 237,660 217,815
Operating income 26,493 21,219 76,026 76,016
Income before taxes 27,938 21,853 81,186 77,916
Marine [Member]
       
Segment Reporting Information [Line Items]        
Net sales 55,301 44,766 178,344 168,620
Operating income 4,118 8,378 16,089 35,584
Income before taxes 4,347 8,705 20,828 36,596
Auto/Mobile [Member]
       
Segment Reporting Information [Line Items]        
Net sales 322,520 384,393 919,810 1,055,786
Operating income 53,848 65,165 134,324 170,208
Income before taxes 58,144 65,399 160,803 178,978
Aviation [Member]
       
Segment Reporting Information [Line Items]        
Net sales 83,459 72,857 251,970 221,676
Operating income 23,183 16,916 64,584 54,561
Income before taxes $ 24,815 $ 17,717 $ 68,206 $ 56,158
v2.4.0.6
Segment Information (Net Sales and Property and Equipment Net by Geographic Area) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Dec. 29, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net sales to external customers $ 643,637 $ 672,376 $ 1,872,156 $ 1,947,127  
Property and equipment, net 413,675 407,853 413,675 407,853 409,751
Americas [Member]
         
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net sales to external customers     1,002,796 1,068,289  
Property and equipment, net 235,520 221,085 235,520 221,085  
Asia Pacific [Member]
         
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net sales to external customers     176,524 186,165  
Property and equipment, net 123,763 135,227 123,763 135,227  
Europe, Middle East and Africa [Member]
         
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net sales to external customers     692,836 692,673  
Property and equipment, net $ 54,392 $ 51,541 $ 54,392 $ 51,541  
v2.4.0.6
Warranty Reserves (Changes in Aggregate Warranty Reserve) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Product Liability Contingency [Line Items]        
Balance - beginning of the period $ 34,288 $ 40,797 $ 37,301 $ 46,773
Accrual for products sold 10,884 9,009 29,076 24,863
Expenditures (10,533) (10,659) (31,738) (32,489)
Balance - end of the period $ 34,639 $ 39,147 $ 34,639 $ 39,147
v2.4.0.6
Commitments and Contingencies (Additional Information) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 28, 2013
Long-term Purchase Commitment [Line Items]  
Commitments to make purchases, amount committed $ 213,173
Commitments to make purchases, time period 5 years
Short Term Interest Free Loan Payable 173,708
Number Of Installments For Short Term Loan Payable 7
Number Of Installments To Be Received For Loan and Advance 5
Payments for Advance to Affiliate $ 173,708
v2.4.0.6
Income Taxes (Additional Information) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Mar. 30, 2013
Income Taxes [Line Items]          
Decrease in earnings before taxes compared to same period in 2012 1.10%   4.40%    
Decrease in income tax expense $ 49,148   $ 56,318    
Income tax provision (26,869) 22,279 192 56,510  
Effective tax rate 15.70% 13.70% 15.30% 12.00%  
Liability for Uncertain Tax Positions, Current 52,180   52,180   16,536
Income Tax Reconciliation, Tax Credits, Research     6,301    
Other Uncertain Tax Position Reserves $ 401 $ 1,737 $ 9,556 $ 11,945  
v2.4.0.6
Marketable Securities (Available for Sale Securities Measured at Estimated Fair Value on Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 28, 2013
Dec. 29, 2012
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total $ 1,728,397 $ 1,641,395
Fair Value, Measurements, Recurring [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 1,728,397 1,641,395
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 518,840 650,895
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 690,615 499,857
Fair Value, Measurements, Recurring [Member] | Corporate Bond Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 420,345 399,941
Fair Value, Measurements, Recurring [Member] | Common Stock [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 27,435 22,982
Fair Value, Measurements, Recurring [Member] | Other securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 71,162 67,720
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 27,435 22,982
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Mortgage-Backed Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 0 0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Obligations of States and Political Subdivisions [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 0 0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate Bond Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 0 0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Common Stock [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 27,435 22,982
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 0 0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 1,700,962 1,618,413
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 518,840 650,895
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Obligations of States and Political Subdivisions [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 690,615 499,857
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Bond Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 420,345 399,941
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Common Stock [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total 0 0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities, Total $ 71,162 $ 67,720
v2.4.0.6
Marketable Securities (Classified as Available-For-Sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 28, 2013
Dec. 29, 2012
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 1,762,859 $ 1,632,233
Gross Unrealized Gains 15,003 17,320
Gross Unrealized Losses (48,191) (6,884)
Other Than Temporary Impairment (1,274) (1,274)
Estimated Fair Value (Net Carrying Amount) 1,728,397 1,641,395
Mortgage-Backed Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 534,722 644,388
Gross Unrealized Gains 4,386 8,894
Gross Unrealized Losses (20,268) (2,387)
Other Than Temporary Impairment 0 0
Estimated Fair Value (Net Carrying Amount) 518,840 650,895
Obligations of States and Political Subdivisions [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 711,989 499,241
Gross Unrealized Gains 1,649 2,345
Gross Unrealized Losses (23,023) (1,729)
Other Than Temporary Impairment 0 0
Estimated Fair Value (Net Carrying Amount) 690,615 499,857
U.S. Corporate Bonds [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 424,439 400,310
Gross Unrealized Gains 1,658 3,138
Gross Unrealized Losses (4,478) (2,233)
Other Than Temporary Impairment (1,274) (1,274)
Estimated Fair Value (Net Carrying Amount) 420,345 399,941
Common Stock [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 23,795 21,113
Gross Unrealized Gains 3,975 2,392
Gross Unrealized Losses (335) (523)
Other Than Temporary Impairment 0 0
Estimated Fair Value (Net Carrying Amount) 27,435 22,982
Other [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 67,914 67,181
Gross Unrealized Gains 3,335 551
Gross Unrealized Losses (87) (12)
Other Than Temporary Impairment 0 0
Estimated Fair Value (Net Carrying Amount) $ 71,162 $ 67,720
v2.4.0.6
Marketable Securities (Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 28, 2013
Dec. 29, 2012
Cost    
Due in one year or less $ 136,835  
Due after one year through five years 688,846  
Due after five years through ten years 257,244  
Due after ten years 621,050  
Other (No contractual maturity dates) 58,884  
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total 1,762,859  
Estimated Fair Value    
Due in one year or less 134,253  
Due after one year through five years 686,299  
Due after five years through ten years 249,112  
Due after ten years 592,932  
Other (No contractual maturity dates) 65,801  
Estimated Fair Value (Net Carrying Amount) $ 1,728,397 $ 1,641,395
v2.4.0.6
Marketable Securities (Additional information) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 28, 2013
Dec. 29, 2012
Gross Unrealized Losses $ (48,191) $ (6,884)
Change In Treasury Bond Yield Description The decline was due to increases in the 10 Year Treasury Bond Yield during the second and third quarters, which caused market valuations of certain securities in our investment portfolios to decline.  
Held To Maturity Securities Continuous Unrealized Loss Position Percentage 47.00%  
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total 1,116,862  
Available For Sale Securities Continuous Unrealized Loss Position Amortization Cost $ 1,165,053  
v2.4.0.6
Share Repurchase Plan (Additional information) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
0 Months Ended 9 Months Ended
Feb. 15, 2013
Sep. 28, 2013
Treasury Stock [Line Items]    
Stock Repurchase Program, Authorized Amount $ 300,000  
Share repurchase program, shares repurchased   713,092
Share repurchase program, shares repurchased value   26,926
Stock Repurchase Program, Remaining Authorized Repurchase Amount   $ 273,074
v2.4.0.6
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Foreign Currency Translation Adjustment        
Balance - beginning of period $ 91,416   $ 128,972  
Other comprehensive income before reclassification 13,379 22,591 (24,177) 31,881
Amounts reclassified from accumulated other comprehensive income 0   0  
Net current-period other comprehensive income 13,379   (24,177)  
Balance - end of period 104,795   104,795  
Unrealized Gains (Losses) on Available for Sale Securities        
Balance - beginning of period (26,573)   9,582  
Other comprehensive income before reclassification (6,336)   (39,810)  
Amounts reclassified from accumulated other comprehensive income (105)   (2,786)  
Net current-period other comprehensive income (6,441)   (42,596)  
Balance - end of period (33,014)   (33,014)  
Total        
Balance - beginning of period 64,843   138,554  
Other comprehensive income before reclassification 7,043   (63,987)  
Amounts reclassified from accumulated other comprehensive income (105)   (2,786)  
Net current-period other comprehensive income 6,938   (66,773)  
Balance - end of period $ 71,781   $ 71,781  
v2.4.0.6
Accumulated Other Comprehensive Income (Reclassifications Out of AOCI) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 28, 2013
Sep. 29, 2012
Sep. 28, 2013
Sep. 29, 2012
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]        
Other income (expense) $ 9,051 $ 2,565 $ 47,458 $ 15,218
Income tax provision 26,869 (22,279) (192) (56,510)
Unrealized Gains (Losses) On Available-For-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
       
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]        
Other income (expense) 137   2,963  
Income tax provision (32)   (177)  
Net of tax $ 105   $ 2,786  
v2.4.0.6
License Fees (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 28, 2013
License Fees [Line Items]  
Net overpayment of license fees $ 20.8