Garmin Reports First Quarter Revenue and Earnings Growth

The net release of uncertain tax position reserves, amounting to approximately $1.0 million and $3.8 million in the first quarter 2017 and 2016, respectively, have not been included as pro forma adjustments in the above presentation of pro forma income tax provision as such amounts tend to be more recurring in nature, and do not affect comparability between periods.

Pro forma net income (earnings) per share

Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company’s performance between periods.


Garmin Ltd. And Subsidiaries
Net income per share (Pro Forma)
(in thousands, except per share information)

	13-Weeks Ended
	April 1,			March 26,
	2017			2016
Net Income (GAAP)	$	237,812		$	88,092
Foreign currency losses ⁽¹⁾		37,497			4,839
Tax effect of foreign currency losses ⁽²⁾		(7,969	)		(876	)
Discrete tax items ⁽³⁾		(168,755	)		-
Net income (Pro Forma)	$	98,585		$	92,055

Net income per share (GAAP):
Basic	$	1.26		$	0.46
Diluted	$	1.26		$	0.46

Net income per share (Pro Forma):
Basic	$	0.52		$	0.49
Diluted	$	0.52		$	0.49

Weighted average common shares outstanding:
Basic		188,333			189,497
Diluted (GAAP)		189,031			189,651

					⁽¹⁾			The majority of the Company’s consolidated foreign currency gains and losses are typically driven by movements in the Taiwan Dollar, Euro, and British Pound Sterling in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at one of the Company’s subsidiaries. However, there is minimal cash impact from such foreign currency gains and losses.

					⁽²⁾			The tax effect of foreign currency gains and losses was calculated using the pro forma effective tax rate of 21.3% and an effective tax rate of 18.1% for the first quarters of 2017 and 2016, respectively.

					⁽³⁾			The discrete tax items are discussed in the Pro forma Effective Tax Rate section above.

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