アメリカ
証券取引委員会
ワシントンDC20549
フォーム
証券取引法第13条または15(d)条に基づく四半期報告書 |
報告期間が終了した2023年6月30日をもって
または
移行期間： から まで |
移行期間中の または
委員会ファイル番号
（定款で指定された会社の正確な名称）
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（所在地または設立の管轄地） |
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（I.R.S. 雇用主識別番号） |
(設立または組織の)書類 |
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識別番号） |
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該当なし |
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(主要執行オフィスの住所) |
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（郵便番号） |
会社の電話番号、エリアコードを含む：＋
法第12条（b）に基づく登録証券
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（各区分のタイトル） |
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（取引のシンボル） |
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（登録されている各取引所の名称） |
企業が過去12か月間に証券取引法第13条または第15条(d) の規定に基づき提出が必要なすべての報告書を提出したか（または企業がそのような報告書を提出する必要があった短い期間に対して）、および過去90日間その提出義務の対象となったかをチェックマークで示してください。
申立人が、規則405に基づいて提出が必要なすべてのインタラクティブデータファイルを、前の12か月間（または申立人がこれらのファイルを提出する必要があったより短い期間）に電子的に提出したかどうかを示してください。
証券取引所法第120条2項における「大規模な加速ファイラー」、「加速ファイラー」、「小規模な報告会社」、「新興成長企業」の定義を参照し、発行者が大規模な加速ファイラー、加速ファイラー、非加速ファイラー、報告会社、または新興成長企業であるかをチェックマークで示してください。
☑ |
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アクセラレーテッド・ファイラー |
☐ |
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非加速ファイラー |
☐ |
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レポート義務のある中小企業 |
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新興成長企業 |
新しいまたは改訂された財務会計基準に従うための拡張期間を使用しないことを選択した場合は、新興成長企業である場合、エクステンデッドトランジション期間を利用しないことを示すために、チェックマークを付けてください。 はい ☐NO☐
発行者が取り決めの12b-2の定義に該当するシェル企業であるかどうかを示すチェックマークを付けてください。
はい ☐ いいえ
発行会社の普通株式の発行済み株式数（2024年10月25日現在）
普通株式、1株当たり0.10ドルの額面価値：
ガーミン
10-Qフォーム
2024年9月28日に終了した四半期
目次
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項目1。 |
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アイテム 2. |
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項目3。 |
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項目1。 |
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項目1A。 |
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アイテム 2. |
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項目3。 |
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項目4。 |
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項目5。 |
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項目6。 |
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i
第1部 財務情報
財務諸表
ガーミン株式会社および子会社
総合損益計算書利益計算書（未監査）
（千の位を除く、1株当たりの情報を除く）
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13週間が終わりました |
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39週間が終わりました |
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9月 |
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9月 |
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9月 |
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9月 |
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純売上高 |
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売上原価 |
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売上総利益 |
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研究開発経費 |
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販売費、一般管理費 |
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営業経費合計 |
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営業利益 |
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その他の収入 (費用): |
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利息収入 |
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外貨利益 (損失) |
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その他の収入 |
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その他の収入 (費用) の合計 |
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税引前利益 |
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所得税規定 |
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純利益 |
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1株当たり当期純利益: |
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ベーシック |
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希釈しました |
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加重平均発行済普通株式: |
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ベーシック |
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希釈しました |
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関連する注記を参照してください。
1
ガーミン社および関連会社
包括利益の要約連結財務諸表監査なしの包括利益連結財務諸表
営業活動によるキャッシュフロー：
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13週間が終わりました |
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39週間が終わりました |
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9月 |
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9月 |
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9月 |
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9月 |
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純利益 |
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$ |
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$ |
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$ |
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外貨換算調整 |
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売却可能な有価証券の公正価値の変動（繰延税控除後） |
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包括利益 |
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$ |
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$ |
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$ |
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$ |
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関連する注記を参照してください。
2
ガーミン社および関連会社
総合連結財務諸表貸借対照表（未監査）
営業活動によるキャッシュフロー：
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9月28日, |
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12月30日 |
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資産 |
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流動資産: |
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現金及び現金同等物 |
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$ |
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$ |
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売買可能有価証券 |
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売掛金の純額 |
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在庫 |
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前渡費用 |
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前払費用およびその他の流動資産 |
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流動資産合計 |
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物件及び設備 累計減価償却額 $ |
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運用リース契約に基づく資産 |
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非流動性有価証券 |
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繰延税金資産 |
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非流動の前払費用 |
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のれん |
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その他無形資産所有純額 |
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その他の非流動資産 |
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総資産 |
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$ |
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負債および株主資本 |
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流動負債： |
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支払調整 |
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$ |
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$ |
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支払われる給与および手当 |
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未払いの保証コスト |
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発生済みの販売プログラムコスト |
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その他の未払い費用 |
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前払収益 |
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未払法人税等 |
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配当支払い可能 |
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流動負債合計 |
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繰延税金負債 |
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非流動法人税預り |
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非流動の前受売上高 |
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非流動リース債務 |
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その他の長期負債 |
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株主資本: |
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普通株式（ |
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追加の資本金 |
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Treasury shares ( |
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留保利益 |
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その他包括利益/損失差額額 |
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純資産合計 |
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負債および純資産合計 |
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$ |
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$ |
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関連する注記を参照してください。
3
ガーミン社および関連会社
総合損益計算書の要約連結現金フロー計算書の注記（未検査）
営業活動によるキャッシュフロー：
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終了した39週間 |
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9月28日, |
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9月30日 |
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営業活動: |
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当期純利益 |
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$ |
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$ |
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当期純利益と提供される純現金に調整する項目 |
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減価償却費用 |
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償却費 |
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売却益または資産・設備の売却益 |
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未実現の外貨（利益）損失 |
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繰延税金資産 |
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( |
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ストック・コンペンセーション費用 |
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有価証券の実現損失 |
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買収を除く運転資産及び負債の変動： |
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貸倒引当金控除後の売掛金 |
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在庫 |
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その他の流動および非流動資産 |
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( |
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支払調整 |
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その他の流動および非流動負債 |
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前払収益 |
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前渡費用 |
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所得税 |
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営業活動によるキャッシュフロー |
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投資活動: |
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設備資産の購入 |
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有価証券の購入 |
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売却可能証券の償還 |
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取得による純現金 |
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その他の投資活動、純額 |
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投資活動によるキャッシュフローの純流出 |
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( |
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財務活動: |
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配当 |
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役員報酬に関連する自己株式の発行による収入 |
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役員報酬に関連する自己株式の購入 |
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株式の取得計画に基づく自己株式の購入 |
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資金調達活動に使用された純現金流入額 |
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現金及び現金同等物の為替レート変動の影響 |
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現金、現金同等物、制限付き現金の純増加 |
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期初時の現金、現金同等物及び制限付き現金 |
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期末時の現金、現金同等物及び制限付き現金 |
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$ |
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$ |
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関連する注記を参照してください。
4
ガーミン社および関連会社
総合損益計算書の要約連結株主資本の構成要素（未監査）
2024年9月28日から2023年9月30日までの13週間終了時
営業活動によるキャッシュフロー：
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共通 |
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追加 |
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宝くじ |
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保有 |
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総計 |
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2023年7月1日の残高 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
( |
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当期純利益 |
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— |
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— |
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— |
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— |
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翻訳調整 |
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— |
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— |
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— |
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( |
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利用可能売出証券の未実現利益（損失）に関連する調整、税引き後影響額$ |
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— |
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— |
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— |
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— |
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包括的利益 |
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配当 |
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— |
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— |
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— |
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( |
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— |
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( |
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資本報酬に関連する自己株式の発行 |
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— |
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— |
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— |
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— |
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— |
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— |
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ストック・コンペンセーション： |
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|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
役員報酬に関連する自己株式の購入 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
シェアリパーチェス計画の一環としての自己株式の購入、関連した消費税を含む |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
自己株式の取消 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
株式資本 currency の変更 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
2023年9月30日の残高 |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
共通 |
|
|
追加 |
|
|
宝くじ |
|
|
保有 |
|
|
|
|
|
総計 |
|
||||||
2024年6月29日の残高 |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
当期純利益 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
翻訳調整 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
利用可能売出証券に関する未実現利益（損失）に係る所得税効果を考慮した調整 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
包括的利益 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
配当 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
株式報酬に関連する自己株式の発行 |
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
ストック・コンペンセーション： |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
役員報酬に関連する自己株式の購入 |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
シェアリプレゼント計画の下での自己株式の取得、および関連する消費税 |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
自己株式の取消 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
株式資本の通貨変更 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
2024年9月28日の残高 |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
関連する注記を参照してください。
5
ガーミン社および関連会社
株主資本状況の簡約連結財務諸表（未検査）
2024年9月28日と2023年9月30日までの39週間終了時点で
営業活動によるキャッシュフロー：
|
|
共通 |
|
|
追加 |
|
|
宝くじ |
|
|
保有 |
|
|
|
|
|
総計 |
|
||||||
2022年12月31日の残高 |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
当期純利益 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
翻訳調整 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
その他の未実現利益（損失）に関連する調整（税引き後当期純利益に影響） |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
包括的利益 |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
||||||
配当 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
株式報酬に関連する treasury shares の発行 |
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
ストック・コンペンセーション： |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
役員報酬に関連する自己株式の購入 |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
株式立替計画による treasury shares の買取、関連する諸税を含む |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
自己株式の取消 |
|
|
( |
) |
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
シェア資本の通貨変更 |
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
2023年9月30日の残高 |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
共通 |
|
|
追加 |
|
|
宝くじ |
|
|
保有 |
|
|
|
|
|
総計 |
|
||||||
2023年12月30日の残高 |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
当期純利益 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
翻訳調整 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
利息手配の関連調整（所得税効果のない有価証券に関する未実現利益（損失）） |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
包括的利益 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
配当 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
資本配当に関連した自己株式の発行 |
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
ストック・コンペンセーション： |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
役員報酬に関連する自己株式の購入 |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
株式買い戻し計画に基づく自己株式の取得、関連する消費税を含む |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
自己株式の取消 |
|
|
( |
) |
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
株式資本の通貨変更 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
2024年9月28日の残高 |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
関連する注記を参照してください。
6
ガーミン社および関連会社
総合財務諸表の注釈（未監査）
2024年9月28日
（千の位を除く、1株当たりの情報を除く）
1. この付属の未監査の中間連結財務諸表は、半期金融情報及びフォーム10-Q及び規則S-Xの article 10 に従って、米国一般に認められた会計原則に基づいて準備されました。そのため、完全な財務諸表に必要な情報や注釈全てを含んでいるわけではありません。当社の管理者らによると、表示されている期間の結果を公正に示すために必要である、全体に常態的に発生する諸調整が反映されています。ドル表示は、特記されていない限り、1億ドル単位で報告され、1株当たりのドル表示額を含みます。その他の情報については、2023年12月31日終了年次報告書に記載の連結財務諸表及び足取り情報を参照してください。コーポレーション、キンバリークラーク、K-C、当社、私たち等という用語は、キンバリークラークコーポレーション及びその連結子会社を指します。
プレゼンテーションの基礎となる考え方と連結の原則。当社の未監査の簡略化された連結財務諸表は、米国一般受容会計原則に従って準備されており、当社の口座および当社の完全子会社の口座を含んでいます。すべての関連会社口座および取引は、連結されます。
付随する未監査の要約連結財務諸表には、ガーミン及びその完全子会社（以下総称して「当社」「弊社」「私たち」「会社」または「ガーミン」という）の勘定が含まれています。関連会社間取引および残高は取り除かれています。
短納期の財務諸表は、一般に受け入れられている会計原則に準拠して準備されており、フォーム10-Qの指示および規則S-Xの第10条に従います。したがって、完全な財務諸表に必要な情報や脚注のすべてが含まれているわけではありません。経営陣の意見では、短納期の財務諸表は、公正な財務諸表の提示に必要な通常かつ繰り返しの性質の調整をすべて反映しています。2023年12月30日時点の要約連結貸借対照表は、当該日の監査済み財務諸表から導かれていますが、完全な財務諸表に必要な情報や脚注のすべてが含まれているわけではありません。さらに、要約連結財務諸表は、本フォーム10-Qの「第I部第2項 財務状況および業績に関する経営陣の議論及び分析」および当該会社の2023年12月30日までの年次報告書と併せて読むべきです。
当社の業績は、消費関連製品の季節需給、新製品の導入時期、およびOEM（元製造業者）顧客の生産スケジュールと関連して変動する可能性があります。したがって、2024年9月28日終了の13週間および39週間の業績は、2024年12月28日終了予定の業績を示すものとは限りません。
当社の会計年度は、カレンダーの最終土曜日に終了する52週または53週の期間に基づいています。そのため、一部の53週の会計年度および関連する14週の四半期の財務結果は、前後の52週の会計年度および関連する13週の四半期とは完全に比較できない可能性があります。2024年9月28日および2023年9月30日終了の四半期 両方とも、13週間の稼働結果を含んでいます。
分類と割り当ての変更
ある特定の前期金額は再分類され、または現在の期間表示に整合させるために提示されました。
2024会計年度第1四半期に、会社は広告費を売上総利益、一般管理費を含む運営費のプレゼンテーションを変更し、経営陣はこれがより意味のあるプレゼンテーションであると考えています。その結果、会社の連結簡略損益計算書は、2023年9月30日に終了した13週間および39週間のために再作成されました。 現在の期間表示に整合するためのものです。この変更は、会社の連結事業利益や当期純利益に影響を与えませんでした。
重要な会計方針
会社の連結財務諸表の作成に使用される主な会計方針および方法の説明については、2023年12月30日に終了した会社の第10-k番フォームの第II部、第8項に記載されている「主要な会計方針概要」の注釈1を参照してください。 2024年9月28日に終了した39週間の間に、会社の主要な会計方針に実質的な変更はありませんでした。.
7
Recently Adopted Accounting Standards
There are no recently adopted accounting standards that have a material impact on the Company’s consolidated financial statements, accounting policies, processes, or systems.
Recently Issued Accounting Pronouncements Not Yet Adopted
Income Taxes
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the income tax rate reconciliation and income taxes paid. ASU 2023-09 will require the Company to disclose specified additional information in its income tax rate reconciliation, provide additional information for certain reconciling items, and disaggregate its disclosure of income taxes paid by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments may be applied using either a prospective or retrospective approach.
Segment Reporting
In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) to improve reportable segment disclosure requirements, primarily through enhanced disclosures. ASU 2023-07 will require the Company to disclose additional information about certain significant segment expenses, as well as how the Company’s chief operating decision maker (CODM) uses segment profit or loss information in assessing segment performance and deciding how to allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company will adopt ASU 2023-07 using a retrospective transition method.
2. Revenue
In order to further depict how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors, we disaggregate revenue (“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 11 – Segment Information and Geographic Data. Note 11 also contains disaggregated revenue information of the five major product categories identified by the Company – fitness, outdoor, aviation, marine, and auto OEM.
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 outdoor, aviation, and auto OEM segments and relate to performance obligations that are satisfied over the contractual service period or estimated life of the product.
|
|
13-Weeks Ended |
|
|
39-Weeks Ended |
|
||||||||||
|
|
September |
|
|
September |
|
|
September |
|
|
September |
|
||||
Point in time |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Over time |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
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.
8
|
|
39-Weeks Ended |
|
|||||
|
|
Deferred |
|
|
Deferred |
|
||
Balance, beginning of period |
|
$ |
|
|
$ |
|
||
Deferrals in period |
|
|
|
|
|
|
||
Recognition of deferrals in period |
|
|
( |
) |
|
|
( |
) |
Balance, end of period |
|
$ |
|
|
$ |
|
||
(1)
(2)
Of the $
3. Earnings Per Share
The following table sets forth the computation of basic and diluted net income per share. Stock options, stock appreciation rights, and restricted stock units are collectively referred to as “equity awards”.
|
|
13-Weeks Ended |
|
|
39-Weeks Ended |
|
||||||||||
|
|
September |
|
|
September |
|
|
September |
|
|
September |
|
||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Numerator for basic and diluted net income per share – net income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator for basic net income per share – weighted-average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of dilutive equity awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator for diluted net income per share – adjusted weighted-average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic net income per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted net income per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares excluded from diluted net income per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Anti-dilutive equity awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
4. Marketable Securities
Accounting Standards Codification Topic 820, 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 |
9
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 or liabilities in active markets, quoted prices for identical or similar assets or liabilities 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.
Marketable securities classified as available-for-sale securities are summarized below:
|
|
Available-For-Sale Securities |
|
|||||||||||||||
|
|
Fair Value Level |
|
Amortized Cost |
|
|
Gross Unrealized |
|
|
Gross Unrealized |
|
|
Fair Value |
|
||||
U.S. Treasury securities |
|
Level 2 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Agency securities |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Mortgage-backed securities |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Corporate debt securities |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Municipal securities |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Other |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Total |
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
|
Available-For-Sale Securities |
|
|||||||||||||||
|
|
Fair Value Level |
|
Amortized Cost |
|
|
Gross Unrealized |
|
|
Gross Unrealized |
|
|
Fair Value |
|
||||
U.S. Treasury securities |
|
Level 2 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Agency securities |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Mortgage-backed securities |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Corporate debt securities |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Municipal securities |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Other |
|
Level 2 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Total |
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
The primary objectives of the Company’s investment policy are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk. The fair value of securities varies from period to period due to changes in interest rates, the performance of the underlying collateral, and the credit performance of the underlying issuer, among other factors.
Accrued interest receivable, which totaled $
The Company recognizes impairments relating to credit losses of available-for-sale securities through an allowance for credit losses and other income (expense) on the Company’s condensed consolidated statements of income. Impairment not relating to credit losses is recorded in accumulated other comprehensive income (loss) on the Company’s condensed consolidated balance sheets. The cost of securities sold is based on the specific identification method. Approximately
10
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 28, 2024 and December 30, 2023.
|
|
As of September 28, 2024 |
|
|||||||||||||||||||||
|
|
Less than 12 Consecutive Months |
|
|
12 Consecutive Months or Longer |
|
|
Total |
|
|||||||||||||||
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
||||||
Agency securities |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Mortgage-backed securities |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||||
Corporate debt securities |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|||
Municipal securities |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||||
Total |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
|
As of December 30, 2023 |
|
|||||||||||||||||||||
|
|
Less than 12 Consecutive Months |
|
|
12 Consecutive Months or Longer |
|
|
Total |
|
|||||||||||||||
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
|
Gross Unrealized Losses |
|
|
Fair Value |
|
||||||
Agency securities |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
Mortgage-backed securities |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||||
Corporate debt securities |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|||
Municipal securities |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|||
Other |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||||
Total |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
As of September 28, 2024 and December 30, 2023, the Company had
The Company has
The amortized cost and fair value of marketable securities at September 28, 2024, by maturity, are shown below.
|
|
Amortized Cost |
|
|
Fair Value |
|
||
Due in one year or less |
|
$ |
|
|
$ |
|
||
Due after one year through five years |
|
|
|
|
|
|
||
Due after five years through ten years |
|
|
|
|
|
|
||
Due after ten years |
|
|
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
||
5. Income Taxes
The Company recorded income tax expense of $
The Company recorded income tax expense of $
11
6. Inventories
The components of inventories consist of the following:
|
|
September 28, |
|
|
December 30, 2023 |
|
||
Raw materials |
|
$ |
|
|
$ |
|
||
Work-in-process |
|
|
|
|
|
|
||
Finished goods |
|
|
|
|
|
|
||
Inventories |
|
$ |
|
|
$ |
|
||
7. Warranty Reserves
The Company accrues for estimated future warranty costs at the time products are sold. The Company’s standard warranty obligation to retail partners generally provides for a right of return of any product for a full refund in the event that such product is not merchantable, is damaged, or is defective. The Company’s standard warranty obligation to its end-users provides for a period of to
|
|
13-Weeks Ended |
|
|
39-Weeks Ended |
|
||||||||||
|
|
September 28, 2024 |
|
|
September 30, 2023 |
|
|
September 28, 2024 |
|
|
September 30, 2023 |
|
||||
Balance - beginning of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Accrual for products sold (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenditures |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Balance - end of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
(1)
8. Commitments and Contingencies
Commitments
The Company is party to certain commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of payments for inventory, capital expenditures, and other indirect purchases in connection with conducting its business. The aggregate amount of purchase orders and other commitments open as of September 28, 2024 that may represent noncancelable unconditional purchase obligations having a remaining term in excess of one year was approximately $
Certain cash balances are held as collateral in relation to bank guarantees. This restricted cash is reported within other assets on the condensed consolidated balance sheets and totaled $
Contingencies
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 28, 2024. 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.
12
The Company settled or resolved certain matters during the 13-week and 39-week periods ended September 28, 2024 that did not individually or in the aggregate have a material impact on the Company’s business or its consolidated financial position, results of operations or cash flows.
9. Stockholders' Equity
Dividends
Under Swiss corporate law, dividends must be approved by shareholders at the annual general meeting of the Company’s shareholders. Approved dividends are payable in four equal installments on dates to be determined by the Board of Directors. A reduction of retained earnings and a corresponding liability are recorded at the time of shareholders' approval and are periodically adjusted based on the number of applicable shares outstanding.
The Company's shareholders approved the following dividends:
Approval Date |
|
Dividend Payment Date |
|
Record Date |
|
Dividend Per Share |
|
|
Fiscal 2024 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
Total |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
Total |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022 |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
|
|
|
$ |
|
||||
Total |
|
|
|
|
|
$ |
|
|
Share Repurchase Programs
On April 22, 2022, the Board of Directors approved a share repurchase program (the “2022 Program”) authorizing the Company to repurchase up to $
On February 16, 2024, the Board of Directors approved a new share repurchase program (the “2024 Program”) authorizing the Company to repurchase up to $
13
Treasury Shares
In March 2024, the Board of Directors authorized the cancellation of
10. Accumulated Other Comprehensive Income (Loss)
The following provides required disclosure of changes in accumulated other comprehensive income (loss) balances by component for the 13-week and 39-week periods ended September 28, 2024:
|
|
13-Weeks Ended September 28, 2024 |
|
|||||||||
|
|
Foreign currency |
|
|
Net gains (losses) on available-for-sale securities |
|
|
Total |
|
|||
Balance - beginning of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Other comprehensive income before reclassification, net of income tax expense of $ |
|
|
|
|
|
|
|
|
|
|||
Amounts reclassified from accumulated other comprehensive income to other income (expense), net of income tax of $ |
|
|
|
|
|
|
|
|
|
|||
Net current-period other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|||
Balance - end of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
39-Weeks Ended September 28, 2024 |
|
|||||||||
|
|
Foreign currency |
|
|
Net gains (losses) on available-for-sale securities |
|
|
Total |
|
|||
Balance - beginning of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Other comprehensive income (loss) before reclassification, net of income tax expense of $ |
|
|
( |
) |
|
|
|
|
|
|
||
Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense), net of income tax benefit of $ |
|
|
|
|
|
|
|
|
|
|||
Net current-period other comprehensive income (loss) |
|
|
( |
) |
|
|
|
|
$ |
|
||
Balance - end of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
11. Segment Information and Geographic Data
Garmin is organized in the
The Company’s Chief Executive Officer, who has been identified as the CODM, primarily uses operating income as the measure of profit or loss to assess segment performance and allocate resources. Operating income represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment. Most costs of goods sold and the majority of operating expenses are also directly attributed to each segment, while certain other costs of goods sold and operating expenses are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated.
14
Net sales (“revenue”), gross profit, and operating income for each of the Company’s five reportable segments are presented below.
|
|
Fitness |
|
|
Outdoor |
|
|
Aviation |
|
|
Marine |
|
|
Auto OEM |
|
|
Total |
|
||||||
13-Weeks Ended September 28, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
13-Weeks Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
39-Weeks Ended September 28, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
39-Weeks Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
Net sales to external customers by geographic region for the 13-week and 39-week periods ended September 28, 2024 and September 30, 2023 are presented below. 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 28, 2024 |
|
|
September 30, 2023 |
|
|
September 28, 2024 |
|
|
September 30, 2023 |
|
||||
Americas |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
EMEA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
APAC |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customers |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
12. Subsequent Events
On September 30, 2024, the Company acquired Lumishore, a privately-held company that designs and manufactures high-performance above and underwater LED lighting systems for boats. This acquisition was not material.
15
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The discussion set forth below, as well as other portions of this Quarterly Report on Form 10-Q, contain statements concerning potential future events. Such forward-looking statements are based upon assumptions by management, as of the date of this Quarterly Report on Form 10-Q, including assumptions about risks and uncertainties faced by the Company. Readers can identify these forward-looking statements by their use of such words as "future", "expects", "anticipates", "believes", “estimates”, “would”, “could”, “can”, “may,” or other similar words or other comparable terms. If any of the Company’s assumptions prove incorrect or should unanticipated circumstances arise, actual results could materially differ from those anticipated by such forward-looking statements. The differences could be caused by a number of factors or combination of factors including, but not limited to, those factors identified in Part II, Item 1A of this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023. Readers are strongly encouraged to consider those factors when evaluating any forward-looking statement concerning the Company. These forward-looking statements are made as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements in this Quarterly Report on Form 10-Q to reflect future events or developments, except as required by law.
The information contained in this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and Notes thereto included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023. Unless the context otherwise requires, references in this document to "we", "us", "our", the "Company" and similar terms refer to Garmin Ltd. and its subsidiaries.
Unless otherwise indicated, amounts set forth in the discussion below are in thousands.
Company Overview
The Company is a leading worldwide provider of wireless devices, many of which feature Global Positioning System (GPS) navigation, and applications that are designed for people who live an active lifestyle. We are organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM. Our products are sold through a variety of indirect distribution channels, including a large worldwide network of independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers (OEMs). We also sell our products and services directly through our online webshop (garmin.com), subscriptions for connected services, and our own retail stores.
Results of Operations
As indicated in Note 1 to the Condensed Consolidated Financial Statements, in the first quarter of fiscal 2024, the Company changed the presentation of operating expense to include advertising expense within selling, general and administrative expenses on the Company's condensed consolidated statements of income, which management believes to be a more meaningful presentation.
This change in presentation had no effect on the Company's consolidated operating or net income. The amounts presented below for selling, general and administrative expenses for the 13-week and 39-week periods ended September 30, 2023 have been recast to conform with the current period presentation.
Comparison of 13-Weeks Ended September 28, 2024 and September 30, 2023
Net Sales
Net Sales |
|
13-Weeks Ended |
|
|
Year-over-Year Change |
|
|
13-Weeks Ended |
|
|||
Fitness |
|
$ |
463,887 |
|
|
|
31 |
% |
|
$ |
352,976 |
|
Percentage of Total Net Sales |
|
|
29 |
% |
|
|
|
|
|
27 |
% |
|
Outdoor |
|
|
526,551 |
|
|
|
21 |
% |
|
|
433,997 |
|
Percentage of Total Net Sales |
|
|
33 |
% |
|
|
|
|
|
34 |
% |
|
Aviation |
|
|
204,631 |
|
|
|
3 |
% |
|
|
198,160 |
|
Percentage of Total Net Sales |
|
|
13 |
% |
|
|
|
|
|
16 |
% |
|
Marine |
|
|
222,244 |
|
|
|
22 |
% |
|
|
182,248 |
|
Percentage of Total Net Sales |
|
|
14 |
% |
|
|
|
|
|
14 |
% |
|
Auto OEM |
|
|
168,709 |
|
|
|
53 |
% |
|
|
110,150 |
|
Percentage of Total Net Sales |
|
|
11 |
% |
|
|
|
|
|
9 |
% |
|
Total |
|
$ |
1,586,022 |
|
|
|
24 |
% |
|
$ |
1,277,531 |
|
16
Net sales increased 24% for the 13-week period ended September 28, 2024 when compared to the year-ago quarter. Total unit sales in the third quarter of 2024 increased to 4,620 when compared to total unit sales of 3,997 in the third quarter of 2023, which differs from the percent increase in revenue primarily due to shifts in segment and product mix. Outdoor was the largest portion of our revenue mix at 33% in the third quarter of 2024 compared to 34% in the third quarter of 2023.
The increase in fitness revenue was driven by sales growth across all categories, led by strong demand for wearables. Outdoor revenue increased primarily due to sales growth in adventure watches. The increase in aviation revenue was driven by sales growth in aftermarket product categories. The increase in marine revenue was primarily driven by contributions from the Company's acquisition of JL Audio. Auto OEM revenue increased primarily due to growth in domain controllers.
Gross Profit
Gross Profit |
|
13-Weeks Ended |
|
|
Year-over-Year Change |
|
|
13-Weeks Ended |
|
|||
Fitness |
|
$ |
283,325 |
|
|
|
49 |
% |
|
$ |
190,685 |
|
Percentage of Segment Net Sales |
|
|
61 |
% |
|
|
|
|
|
54 |
% |
|
Outdoor |
|
|
358,693 |
|
|
|
32 |
% |
|
|
270,774 |
|
Percentage of Segment Net Sales |
|
|
68 |
% |
|
|
|
|
|
62 |
% |
|
Aviation |
|
|
154,138 |
|
|
|
4 |
% |
|
|
148,364 |
|
Percentage of Segment Net Sales |
|
|
75 |
% |
|
|
|
|
|
75 |
% |
|
Marine |
|
|
122,433 |
|
|
|
29 |
% |
|
|
95,186 |
|
Percentage of Segment Net Sales |
|
|
55 |
% |
|
|
|
|
|
52 |
% |
|
Auto OEM |
|
|
33,010 |
|
|
|
40 |
% |
|
|
23,560 |
|
Percentage of Segment Net Sales |
|
|
20 |
% |
|
|
|
|
|
21 |
% |
|
Total |
|
$ |
951,599 |
|
|
|
31 |
% |
|
$ |
728,569 |
|
Percentage of Total Net Sales |
|
|
60 |
% |
|
|
|
|
|
57 |
% |
|
Gross profit dollars in the third quarter of 2024 increased 31%, primarily due to the increase in net sales when compared to the year-ago quarter, as described above. Consolidated gross margin increased 300 basis points when compared to the year-ago quarter primarily due to lower costs of goods and favorable product mix within certain segments, partially offset by unfavorable segment mix.
The fitness, outdoor, and marine gross margin increases of 710 basis points, 570 basis points, and 290 basis points, respectively, were primarily attributable to lower costs of goods and favorable product mix. The aviation gross margin was relatively flat when compared to the year-ago quarter. The auto OEM gross margin decrease of 180 basis points was primarily attributable to unfavorable product mix.
Operating Expense
Operating Expense |
|
13-Weeks Ended |
|
|
Year-over-Year Change |
|
|
13-Weeks Ended |
|
|||
Research and development expense |
|
|
249,162 |
|
|
|
12 |
% |
|
|
221,572 |
|
Percentage of Total Net Sales |
|
|
16 |
% |
|
|
|
|
|
17 |
% |
|
Selling, general and administrative expenses |
|
|
264,962 |
|
|
|
12 |
% |
|
|
236,628 |
|
Percentage of Total Net Sales |
|
|
17 |
% |
|
|
|
|
|
19 |
% |
|
Total |
|
$ |
514,124 |
|
|
|
12 |
% |
|
$ |
458,200 |
|
Percentage of Total Net Sales |
|
|
32 |
% |
|
|
|
|
|
36 |
% |
|
Total operating expense in the third quarter of 2024 increased 12% in absolute dollars and decreased 350 basis points as a percent of revenue when compared to the year-ago quarter.
Research and development expense increased 12% in absolute dollars and decreased 160 basis points as a percent of revenue when compared to the year-ago quarter. The absolute dollar expense increase was primarily due to higher engineering personnel costs.
Selling, general and administrative expenses increased 12% in absolute dollars and decreased 180 basis points when compared to the year-ago quarter. The absolute dollar expense increase was primarily attributable to increased personnel-related expenses.
17
Operating Income
Operating Income (Loss) |
|
13-Weeks Ended |
|
|
Year-over-Year Change |
|
|
13-Weeks Ended |
|
|||
Fitness |
|
$ |
147,768 |
|
|
|
98 |
% |
|
$ |
74,614 |
|
Percentage of Segment Net Sales |
|
|
32 |
% |
|
|
|
|
|
21 |
% |
|
Outdoor |
|
|
208,866 |
|
|
|
53 |
% |
|
|
136,401 |
|
Percentage of Segment Net Sales |
|
|
40 |
% |
|
|
|
|
|
31 |
% |
|
Aviation |
|
|
44,278 |
|
|
|
(10 |
%) |
|
|
49,269 |
|
Percentage of Segment Net Sales |
|
|
22 |
% |
|
|
|
|
|
25 |
% |
|
Marine |
|
|
37,839 |
|
|
|
59 |
% |
|
|
23,850 |
|
Percentage of Segment Net Sales |
|
|
17 |
% |
|
|
|
|
|
13 |
% |
|
Auto OEM |
|
|
(1,276 |
) |
|
|
(91 |
%) |
|
|
(13,765 |
) |
Percentage of Segment Net Sales |
|
|
(1 |
%) |
|
|
|
|
|
(12 |
%) |
|
Total |
|
$ |
437,475 |
|
|
|
62 |
% |
|
$ |
270,369 |
|
Percentage of Total Net Sales |
|
|
28 |
% |
|
|
|
|
|
21 |
% |
|
Total operating income in the third quarter of 2024 increased 62% in absolute dollars and increased 640 basis points as a percent of revenue when compared to the year-ago quarter. The increase in operating income as a percent of revenue was driven by increased sales, increased gross margin as a percent of revenue, and lower operating expenses as a percent of revenue, as described above. The improved performance in fitness, outdoor, marine, and auto OEM was partially offset by a decrease in aviation.
Other Income (Expense)
Other Income (Expense) |
|
13-Weeks Ended |
|
|
13-Weeks Ended |
|
||
Interest income |
|
$ |
28,830 |
|
|
$ |
19,803 |
|
Foreign currency gains (losses) |
|
|
18,131 |
|
|
|
(11,539 |
) |
Other income |
|
|
1,814 |
|
|
|
938 |
|
Total |
|
$ |
48,775 |
|
|
$ |
9,202 |
|
The average interest rate return on cash and investments during the third quarter of 2024 was 3.3%, compared to 2.8% during the same quarter of 2023.
Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar. The Taiwan Dollar is the functional currency of Garmin Corporation, the Euro is the functional currency of several subsidiaries, and the U.S. Dollar is the functional currency of Garmin (Europe) Ltd., although some transactions and balances are denominated in British Pounds. Other notable currency exposures include the Australian Dollar, Chinese Yuan, Japanese Yen, and Polish Zloty. The majority of the Company’s consolidated foreign currency gain or loss is typically driven by the significant cash and marketable securities, receivables and payables held in a currency other than the functional currency at a given legal entity.
The $18.1 million currency gain recognized in the third quarter of 2024 was primarily due to the U.S. Dollar weakening against the British Pound Sterling, Euro, and Polish Zloty, partially offset by the U.S. Dollar weakening against the Taiwan Dollar, within the 13-week period ended September 28, 2024. During this period, the U.S. Dollar weakened 3.7% against the British Pound Sterling, 4.2% against the Euro, and 5.3% against the Polish Zloty, resulting in gains of $3.2 million, $8.9 million, and $9.3 million, respectively, while the U.S. Dollar weakened 2.9% against the Taiwan Dollar, resulting in a loss of $10.4 million. The remaining net currency gain of $7.1 million was related to the impacts of other currencies, each of which was individually immaterial.
The $11.5 million currency loss recognized in the third quarter of 2023 was primarily due to the U.S. Dollar strengthening against the Polish Zloty, Australian Dollar, and British Pound Sterling, partially offset by the U.S. Dollar strengthening against the Taiwan Dollar within the 13-week period ended September 30, 2023. During this period, the U.S. Dollar strengthened 6.8% against the Polish Zloty, 2.9% against the Australian Dollar, and 4.0% against the British Pound Sterling, resulting in losses of $18.4 million, $2.4 million, and $1.9 million, respectively, partially offset by the U.S. Dollar strengthening 3.4% against the Taiwan Dollar, resulting in a gain of $15.2 million. The remaining net currency loss of $4.0 million was related to the impacts of other currencies, each of which was individually immaterial.
18
Income Tax Provision
The Company recorded income tax expense of $87.1 million in the 13-week period ended September 28, 2024, compared to income tax expense of $22.3 million in the 13-week period ended September 30, 2023. The effective tax rate was 17.9% in the third quarter of 2024, compared to 8.0% in the third quarter of 2023. The increase in effective tax rate between comparative periods was primarily due to the increase in the combined federal and cantonal Switzerland statutory tax rate in response to the implementation of global minimum tax requirements.
Net Income
As a result of the above, net income for the 13-week period ended September 28, 2024 was $399.1 million compared to $257.2 million for the 13-week period ended September 30, 2023, an increase of $141.9 million.
Comparison of 39-Weeks Ended September 28, 2024 and September 30, 2023
Net Sales
Net Sales |
|
39-Weeks Ended |
|
|
Year-over-Year Change |
|
|
39-Weeks Ended |
|
|||
Fitness |
|
$ |
1,235,182 |
|
|
|
32 |
% |
|
$ |
932,561 |
|
Percentage of Total Net Sales |
|
|
28 |
% |
|
|
|
|
|
25 |
% |
|
Outdoor |
|
|
1,332,617 |
|
|
|
10 |
% |
|
|
1,210,773 |
|
Percentage of Total Net Sales |
|
|
30 |
% |
|
|
|
|
|
32 |
% |
|
Aviation |
|
|
639,739 |
|
|
|
2 |
% |
|
|
629,195 |
|
Percentage of Total Net Sales |
|
|
14 |
% |
|
|
|
|
|
17 |
% |
|
Marine |
|
|
821,933 |
|
|
|
21 |
% |
|
|
677,026 |
|
Percentage of Total Net Sales |
|
|
18 |
% |
|
|
|
|
|
18 |
% |
|
Auto OEM |
|
|
444,871 |
|
|
|
50 |
% |
|
|
296,196 |
|
Percentage of Total Net Sales |
|
|
10 |
% |
|
|
|
|
|
8 |
% |
|
Total |
|
$ |
4,474,342 |
|
|
|
19 |
% |
|
$ |
3,745,751 |
|
Net sales increased 19% for the 39-week period ended September 28, 2024 when compared to the year-ago period. Total unit sales in the first three quarters of 2024 increased to 13,165 when compared to total unit sales of 11,369 in the first three quarters of 2023, which differs from the percent increase in revenue primarily due to shifts in segment and product mix. Outdoor was the largest portion of our revenue mix at 30% in the first three quarters of 2024 compared to 32% in the first three quarters of 2023.
The increase in fitness revenue was driven by sales growth across all categories, led by strong demand for wearables. Outdoor revenue increased primarily due to sales growth in adventure watches. Aviation revenue increased primarily due to growth in OEM product categories. Marine revenue increased primarily driven by contributions from the Company's acquisition of JL Audio. Auto OEM revenue increased primarily due to growth in domain controllers.
Gross Profit
Gross Profit |
|
39-Weeks Ended |
|
|
Year-over-Year Change |
|
|
39-Weeks Ended |
|
|||
Fitness |
|
$ |
723,375 |
|
|
|
49 |
% |
|
$ |
484,759 |
|
Percentage of Segment Net Sales |
|
|
59 |
% |
|
|
|
|
|
52 |
% |
|
Outdoor |
|
|
885,646 |
|
|
|
17 |
% |
|
|
755,800 |
|
Percentage of Segment Net Sales |
|
|
66 |
% |
|
|
|
|
|
62 |
% |
|
Aviation |
|
|
478,131 |
|
|
|
3 |
% |
|
|
463,774 |
|
Percentage of Segment Net Sales |
|
|
75 |
% |
|
|
|
|
|
74 |
% |
|
Marine |
|
|
449,472 |
|
|
|
23 |
% |
|
|
365,162 |
|
Percentage of Segment Net Sales |
|
|
55 |
% |
|
|
|
|
|
54 |
% |
|
Auto OEM |
|
|
80,006 |
|
|
|
12 |
% |
|
|
71,311 |
|
Percentage of Segment Net Sales |
|
|
18 |
% |
|
|
|
|
|
24 |
% |
|
Total |
|
$ |
2,616,630 |
|
|
|
22 |
% |
|
$ |
2,140,806 |
|
Percentage of Total Net Sales |
|
|
58 |
% |
|
|
|
|
|
57 |
% |
|
Gross profit dollars in the first three quarters of 2024 increased 22%, primarily due to the increase in net sales when compared to the year-ago period, as described above. Consolidated gross margin increased 130 basis points when compared to the year-ago period primarily due to favorable product mix within certain segments and lower costs of goods, partially offset by unfavorable segment mix.
19
The fitness and outdoor gross margin increases of 660 and 400 basis points, respectively, were primarily attributable to favorable product mix and lower costs of goods. The aviation gross margin increase of 100 basis points was primarily attributable to lower warranty costs. The marine gross margin was relatively flat when compared to the year-ago period. The auto OEM gross margin decrease of 610 basis points was primarily attributable to unfavorable product mix.
Operating Expense
Operating Expense |
|
39-Weeks Ended |
|
|
Year-over-Year Change |
|
|
39-Weeks Ended |
|
|||
Research and development expense |
|
$ |
734,848 |
|
|
|
10 |
% |
|
$ |
667,451 |
|
Percentage of Total Net Sales |
|
|
16 |
% |
|
|
|
|
|
18 |
% |
|
Selling, General and administrative expenses |
|
|
803,869 |
|
|
|
11 |
% |
|
|
721,649 |
|
Percentage of Total Net Sales |
|
|
18 |
% |
|
|
|
|
|
19 |
% |
|
Total |
|
$ |
1,538,717 |
|
|
|
11 |
% |
|
$ |
1,389,100 |
|
Percentage of Total Net Sales |
|
|
34 |
% |
|
|
|
|
|
37 |
% |
|
Total operating expense in the first three quarters of 2024 increased 11% in absolute dollars and decreased 270 basis points as a percent of revenue when compared to the year-ago period.
Research and development expense increased 10% in absolute dollars and decreased 140 basis points as a percent of revenue when compared to the year-ago period. The absolute dollar expense increase was primarily due to higher engineering personnel costs.
Selling, general and administrative expense increased 11% in absolute dollars and decreased 130 basis points as a percent of revenue compared to the year-ago period. The absolute dollar expense increase was primarily attributable to increased personnel-related expenses, including the impact of the Company's acquisition of JL Audio.
Operating Income
Operating Income (Loss) |
|
39-Weeks Ended |
|
|
Year-over-Year Change |
|
|
39-Weeks Ended |
|
|||
Fitness |
|
$ |
323,511 |
|
|
|
132 |
% |
|
$ |
139,651 |
|
Percentage of Segment Net Sales |
|
|
26 |
% |
|
|
|
|
|
15 |
% |
|
Outdoor |
|
|
451,408 |
|
|
|
28 |
% |
|
|
351,399 |
|
Percentage of Segment Net Sales |
|
|
34 |
% |
|
|
|
|
|
29 |
% |
|
Aviation |
|
|
146,899 |
|
|
|
(13 |
%) |
|
|
169,730 |
|
Percentage of Segment Net Sales |
|
|
23 |
% |
|
|
|
|
|
27 |
% |
|
Marine |
|
|
185,422 |
|
|
|
30 |
% |
|
|
142,135 |
|
Percentage of Segment Net Sales |
|
|
23 |
% |
|
|
|
|
|
21 |
% |
|
Auto OEM |
|
|
(29,327 |
) |
|
|
(43 |
%) |
|
|
(51,209 |
) |
Percentage of Segment Net Sales |
|
|
(7 |
%) |
|
|
|
|
|
(17 |
%) |
|
Total |
|
$ |
1,077,913 |
|
|
|
43 |
% |
|
$ |
751,706 |
|
Percentage of Total Net Sales |
|
|
24 |
% |
|
|
|
|
|
20 |
% |
|
Total operating income in the first three quarters of 2024 increased 43% in absolute dollars and 400 basis points as a percent of revenue when compared to the year-ago period. The increase in operating income as a percent of revenue was due to increased sales, increased gross margin as a percent of revenue, and lower operating expenses as a percent of revenue, as described above. The improved performance in fitness, outdoor, marine, and auto OEM was partially offset by a decrease in aviation.
Other Income (Expense)
Other Income (Expense) |
|
39-Weeks Ended |
|
|
39-Weeks Ended |
|
||
Interest income |
|
$ |
83,143 |
|
|
$ |
54,461 |
|
Foreign currency gains |
|
|
15,584 |
|
|
|
6,946 |
|
Other income |
|
|
2,623 |
|
|
|
4,206 |
|
Total |
|
$ |
101,350 |
|
|
$ |
65,613 |
|
The average interest rate returns on cash and investments during the 39-week periods ended September 28, 2024 and September 30, 2023 were 3.3% and 2.6%, respectively.
20
Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar. The Taiwan Dollar is the functional currency of Garmin Corporation, the Euro is the functional currency of several subsidiaries, and the U.S. Dollar is the functional currency of Garmin (Europe) Ltd., although some transactions and balances are denominated in British Pounds. Other notable currency exposures include the Australian Dollar, Chinese Yuan, Japanese Yen, and Polish Zloty. The majority of the Company’s consolidated foreign currency gain or loss is typically driven by the significant cash and marketable securities, receivables and payables held in a currency other than the functional currency at a given legal entity.
The $15.6 million currency gain recognized in the 39-week period ended September 28, 2024 was primarily due to the U.S. Dollar strengthening against the Taiwan Dollar within the 39-week period ended September 28, 2024. During this period, the U.S. Dollar strengthened 2.8% against the Taiwan Dollar, resulting in a gain of $19.6 million. The remaining net currency loss of $4.0 million was related to the impacts of other drivers, each of which was individually immaterial.
The $6.9 million currency gain recognized in the 39-week period ended September 30, 2023 was primarily due to the U.S. Dollar strengthening against the Taiwan Dollar, partially offset by the U.S. Dollar strengthening against the Australian Dollar, Chinese Yuan and Japanese Yen and U.S. Dollar volatility with the Polish Zloty within the 39-week period ended September 30, 2023. During this period, the U.S. Dollar strengthened 4.9% against the Taiwan Dollar, resulting in a gain of $21.1 million, partially offset by the U.S. Dollar strengthening 5.2% against the Australian Dollar, 4.6% against the Chinese Yuan, and 12.2% against the Japanese Yen, resulting in losses of $2.9 million, $2.9 million, and $2.8 million, respectively, while volatility with the Polish Zloty resulted in a net loss of $4.5 million as the loss in the third quarter more than offset gains in previous quarters. The remaining net currency loss of $1.1 million was related to the impacts of other currencies, each of which was individually immaterial.
Income Tax Provision
The Company recorded income tax expense of $203.6 million in the first three quarters of 2024, compared to income tax expense of $69.8 million in the first three quarters of 2023. The effective tax rate was 17.3% in the first three quarters of 2024, compared to 8.5% in the first three quarters of 2023. The increase in effective tax rate between comparative periods was primarily due to the increase in the combined federal and cantonal Switzerland statutory tax rate in response to the implementation of global minimum tax requirements.
Net Income
As a result of the above, net income for the 39-week period ended September 28, 2024 was $975.7 million compared to $747.5 million for the 39-week period ended September 30, 2023, an increase of $228.2 million.
Liquidity and Capital Resources
We primarily use cash flow from operations, and expect that future cash requirements may be used, to fund our capital expenditures, support our working capital requirements, pay dividends, fund share repurchases, and fund strategic acquisitions. We believe that our existing cash balances and cash flow from operations will be sufficient to meet our short- and long-term projected working capital needs, capital expenditures, and other cash requirements.
Cash, Cash Equivalents, and Marketable Securities
As of September 28, 2024, we had approximately $3.5 billion of cash, cash equivalents and marketable securities. Management invests idle or surplus cash in accordance with the Company's investment policy, which has been approved by the Company’s Board of Directors. The investment policy’s primary objectives are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk. Garmin’s average interest rate returns on cash and investments during the first three quarters of 2024 and 2023 were 3.3% and 2.6%, respectively. The fair value of our securities varies from period to period due to changes in interest rates, the performance of the underlying collateral, and the credit performance of the underlying issuer, among other factors. See Note 4 in the Notes to the Condensed Consolidated Financial Statements for additional information regarding marketable securities.
Cash Flows
Cash provided by operating activities totaled $948.6 million for the first three quarters of 2024, compared to $910.3 million for the first three quarters of 2023. The increase was primarily due to an increase in cash received from customers primarily driven by higher net sales as well as less cash paid for income taxes, partially offset by increases in cash paid for cost of goods sold and operating expenses in the first three quarters of 2024 compared to the first three quarters of 2023.
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Cash used in investing activities totaled $190.8 million for the first three quarters of 2024, compared to $267.7 million for the first three quarters of 2023. The decrease was primarily due to a decrease in cash used for acquisitions and a decrease in purchases of property and equipment, partially offset by net purchases of marketable securities in the first three quarters of 2024, compared to net redemptions of marketable securities in the first three quarters of 2023.
Cash used in financing activities totaled $449.4 million for the first three quarters of 2024, compared to $486.2 million for the first three quarters of 2023. This decrease was primarily due to lower purchases of treasury shares under share repurchase plans and partially offset by higher cash dividend payments in the first three quarters of 2024 compared to the first three quarters of 2023.
Use of Cash
Operating Leases
The Company has lease arrangements for certain real estate properties, vehicles, and equipment. Leased properties are typically used for office space, distribution, and retail. As of September 28, 2024, the Company had fixed lease payment obligations of $161.8 million, with $33.4 million payable within 12 months.
Inventory Purchase Obligations
The Company obtains various raw materials and components for its products from a variety of third party suppliers. The Company’s inventory purchase obligations are primarily noncancelable. As of September 28, 2024, the Company had inventory purchase obligations of $847.2 million, with $673.2 million payable within 12 months.
Other Purchase Obligations
The Company’s other purchase obligations primarily consist of noncancelable commitments for capital expenditures and other indirect purchases in connection with conducting our business. As of September 28, 2024, the Company had other purchase obligations of $316.6 million, with $122.1 million payable within 12 months.
Critical Accounting Policies and Estimates
General
Our discussion and analysis of financial condition and results of operations are based upon the Company’s condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The presentation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to customer sales programs and incentives, product returns, bad debts, inventories, investments, intangible assets, income taxes, warranty obligations, and contingencies and litigation. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
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 1, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 and “Critical Accounting Policies and Estimates” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There were no significant changes to the Company’s critical accounting policies and estimates in the 13-week and 39-week periods ended September 28, 2024.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
There are numerous market risks that can affect our future business, financial condition and results of operations. In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There have been no material changes during the 13-week and 39-week periods ended September 28, 2024 in the risks described in our Annual Report on Form 10-K related to market sensitivity, inflation, foreign currency exchange rate risk and interest rate risk.
Item 4. Controls and Procedures
(a) Evaluation of disclosure controls and procedures. The Company maintains a system of disclosure controls and procedures that are designed to provide reasonable assurance that information, which is required to be timely disclosed, is accumulated and communicated to management in a timely fashion. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. As of September 28, 2024, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded as of September 28, 2024 that our disclosure controls and procedures were effective such that the information relating to the Company, required to be disclosed in our Securities and Exchange Commission (SEC) reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to the Company’s management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
(b) Changes in internal control over financial reporting. There has been no change in the Company’s internal controls over financial reporting that occurred during the Company’s fiscal quarter ended September 28, 2024 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
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Part II - Other Information
Item 1. Legal Proceedings
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 business, results of operations, financial position or cash flows. For additional information, see Note 8, "Commitments and Contingencies" in the above Condensed Consolidated Financial Statements and Part I, Item 3, “Legal Proceedings” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023.
Item 1A. Risk Factors
There are many risks and uncertainties that can affect our future business, financial performance or share price. In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There have been no material changes during the 39-week period ended September 28, 2024 in the risks described in our Annual Report on Form 10-K. These risks, however, are not the only risks facing our Company. Additional risks and uncertainties, including those not currently known to us or that we currently deem to be immaterial, also may materially adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
Share repurchase activity during the 13-week period ended September 28, 2024, summarized on a trade-date basis, was as follows (in thousands, except per share amounts):
Period |
|
Total Number of Shares Purchased (1) |
|
|
Average Price Paid Per Share (2) |
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
|
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Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program |
|
||||
June 30, 2024 - July 27, 2024 |
|
|
38 |
|
|
$ |
168.18 |
|
|
|
38 |
|
|
$ |
283,896 |
|
July 28, 2024 - August 24, 2024 |
|
|
18 |
|
|
$ |
176.22 |
|
|
|
18 |
|
|
$ |
280,724 |
|
August 25, 2024 - September 28, 2024 |
|
|
60 |
|
|
$ |
176.32 |
|
|
|
60 |
|
|
$ |
270,198 |
|
Total |
|
|
116 |
|
|
|
|
|
|
116 |
|
|
|
|
||
(1) The Board of Directors approved a share repurchase program on February 16, 2024 (the "2024 Program"), which was announced on February 21, 2024. The 2024 Program authorizes the Company to purchase up to $300 million of its common shares, exclusive of the cost of any associated excise tax. Share repurchases may be made in the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and volume of share repurchases are subject to market conditions, business conditions and applicable laws, and are at management’s discretion. The 2024 Program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. The 2024 Program expires on December 26, 2026. Refer to Note 9 in the Notes to the Condensed Consolidated Financial Statements for additional information related to share repurchases.
(2) Average price paid per share includes costs associated with the repurchases, except for the cost of any associated excise tax.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
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Item 5. Other Information
(c) Trading Plans
During the 13-week period ended September 28, 2024, no directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) of the Company
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Item 6. Exhibits
Exhibit 3.1 |
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Exhibit 3.2 |
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Exhibit 10.1*‡ |
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Garmin Ltd. 2005 Equity Incentive Plan, as amended and restated on October 25, 2024. |
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Exhibit 10.2*‡ |
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Exhibit 10.3*‡ |
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Exhibit 10.4*‡ |
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Exhibit 10.5*‡ |
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Exhibit 10.6*‡ |
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Exhibit 10.7*‡ |
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Exhibit 10.8*‡ |
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Exhibit 31.1‡ |
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Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a). |
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Exhibit 31.2‡ |
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Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a). |
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Exhibit 32.1† |
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Exhibit 32.2† |
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Exhibit 101.INS‡ |
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Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
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Exhibit 101.SCH‡ |
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Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
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Exhibit 104‡ |
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Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* Management contract or compensatory plan or arrangement pursuant to 601(b)(10)(iii)(A) of Regulation S-K.
‡ Filed herewith.
† Furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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GARMIN LTD. |
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By |
/s/ Douglas G. Boessen |
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Douglas G. Boessen |
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Chief Financial Officer |
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(Principal Financial Officer and |
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Principal Accounting Officer) |
Dated: October 30, 2024
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