Garmin Ltd. And Subsidiaries Consolidated Balance Sheets (In thousands, except share information) December 29, December 30, 2007 2006 Assets Current assets: Cash and cash equivalents $707,689 $337,321 Marketable securities 37,551 73,033 Accounts receivable 952,513 403,524 Inventories, net 505,467 271,008 Deferred income taxes 107,376 55,996 Prepaid expenses and other current assets 22,179 28,202 Total current assets 2,332,775 1,169,084 Property and equipment, net 374,147 250,988 Restricted cash 1,554 1,525 Marketable securities 386,954 407,843 License agreements, net 14,672 3,307 Other intangible assets 181,358 64,273 Total assets $3,291,460 $1,897,020 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $341,053 $88,375 Salaries and benefits payable 31,696 16,268 Accrued warranty costs 71,636 37,639 Accrued sales program costs 142,360 32,560 Other accrued expenses 138,244 68,172 Income taxes payable 76,895 94,668 Total current liabilities 801,883 337,682 Long-term debt, less current portion - 248 Deferred income taxes 11,935 1,191 Other liabilities 127,028 - Stockholders' equity: Common stock 1,086 1,082 Additional paid-in capital 132,264 83,438 Retained earnings 2,171,134 1,478,654 Accumulated other comprehensive gain/(loss) 46,130 (5,275) Total stockholders' equity 2,350,614 1,557,899 Total liabilities and stockholders' equity $3,291,460 $1,897,020 Garmin Ltd. And Subsidiaries Consolidated Statements of Income (In Thousands, Except Per Share Information) 13-Weeks Ended Fiscal Year Ended December December December December 29, 2007 30, 2006 29, 2007 30, 2006 Net sales $1,217,021 $611,224 $3,180,319 $1,774,000 Cost of goods sold 708,036 306,771 1,717,064 891,614 Gross profit 508,985 304,453 1,463,255 882,386 Selling, general and administrative expenses 148,140 74,346 396,498 214,513 Research and development expense 47,543 31,209 159,406 113,314 195,683 105,555 555,904 327,827 Operating income 313,302 198,898 907,351 554,559 Other income (expense): Interest income 9,999 10,432 41,995 35,897 Interest expense 121 (27) (207) (41) Foreign currency 19,471 (9,790) 22,964 596 Other 5,210 38 6,170 3,543 34,801 653 70,922 39,995 Income before income taxes 348,103 199,551 978,273 594,554 Income tax provision: 40,836 19,206 123,262 80,431 Net income $307,267 $180,345 $855,011 $514,123 Basic net income per share $1.42 $0.84 $3.95 $2.38 Diluted net income per share $1.39 $0.82 $3.89 $2.35 Garmin Ltd. And Subsidiaries Consolidated Statements of Cash Flows (In Thousands) Fiscal Year Ended December 29, December 30, 2007 2006 Operating Activities: Net income $855,011 $514,123 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 35,524 21,535 Amortization 28,513 22,940 Gain on sale of property and equipment 560 67 Provision for doubtful accounts 3,617 955 Provision for obsolete and slow- moving inventories 34,975 23,245 Foreign currency transaction gains/losses (926) (344) Deferred income taxes (57,843) (35,060) Stock appreciation rights 22,164 11,913 Realized gains on marketable securities (5,101) (3,852) Changes in operating assets and liabilities, net of acquisition: Accounts receivable (477,108) (230,111) Inventories (224,180) (92,708) Prepaid expenses and other current assets 6,213 (4,357) Purchase of licenses (23,569) (2,950) Accounts payable 174,781 10,187 Accrued expenses 253,909 97,167 Income taxes payable 55,548 29,105 Net cash provided by operating activities 682,088 361,855 Investing activities: Purchases of property and equipment (156,778) (92,906) Proceeds from sale of property and equipment 5 76 Purchase of intangible assets (2,918) (3,115) Purchase of marketable securities (1,672,041) (453,085) Sales of marketable securities 1,784,816 359,313 Purchase of Dynastream - (36,499) Net cash paid for acquisition of businesses and other intangibles (128,751) - Change in restricted cash (29) (169) Net cash used in investing activities (175,696) (226,385) Financing activities: Dividends (162,530) (107,923) Payment on long-term debt (248) (11) Proceeds from issuance of common stock through stock purchase plan 5,730 3,569 Proceeds from issuance of common stock from exercise of stock options 11,278 12,505 Tax benefit related to stock option exercise 17,434 9,660 Purchase of common stock (7,780) (50,450) Net cash used in financing activities (136,116) ($132,650) Effect of exchange rate changes on cash and cash equivalents 92 149 Net increase/(decrease) in cash and cash equivalents 370,368 2,969 Cash and cash equivalents at beginning of year 337,321 334,352 Cash and cash equivalents at end of year $707,689 $337,321 Garmin Ltd. And Subsidiaries Revenue, Gross Profit, and Operating Income by Segment (Unaudited) Reporting Segments Outdoor/ Auto/ Fitness Marine Mobile Aviation Total 52-Weeks Ended December 29, 2007 Net sales $339,741 $203,399 $2,342,184 $294,995 $3,180,319 Gross profit $184,654 $110,169 $973,206 $195,226 $1,463,255 Operating income $120,233 $67,376 $608,751 $110,991 $907,351 52-Weeks Ended December 30, 2006 Net sales $285,362 $166,639 $1,089,093 $232,906 $1,774,000 Gross profit $163,638 $92,952 $475,191 $150,605 $882,386 Operating income $116,766 $60,525 $292,951 $84,317 $554,559
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