The following table illustrates the net effect of deferred revenues and costs associated with certain products bundled with content and services. These revenues and costs are being amortized over the estimated economic lives of the products. Additional details are available in the Quarterly Report on Form 10-Q for the quarter ended June 25, 2011 that will be filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983) today.
| Garmin Ltd. And Subsidiaries | ||||||||||||||||
| Net Deferred Revenue Impact (Unaudited) | ||||||||||||||||
| (In thousands, except per share information) | ||||||||||||||||
| 13-Weeks Ended | 26-Weeks Ended | |||||||||||||||
| June 25, | June 26, | June 25, | June 26, | |||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net sales | $ | (61,701 | ) | $ | (22,911 | ) | $ | (83,527 | ) | $ | (37,920 | ) | ||||
| Cost of goods sold | (10,652 | ) | (3,764 | ) | (14,557 | ) | (6,546 | ) | ||||||||
| Gross profit | (51,049 | ) | (19,147 | ) | (68,970 | ) | (31,374 | ) | ||||||||
| Operating income | (51,049 | ) | (19,147 | ) | (68,970 | ) | (31,374 | ) | ||||||||
| Income tax provision based on normalized tax effects | (7,068 | ) | (3,446 | ) | (5,862 | ) | (5,647 | ) | ||||||||
| Net income | $ | (43,981 | ) | $ | (15,701 | ) | $ | (63,108 | ) | $ | (25,727 | ) | ||||
| Net income per share: | ||||||||||||||||
| Basic | $ | (0.23 | ) | $ | (0.08 | ) | $ | (0.33 | ) | $ | (0.13 | ) | ||||
| Diluted | $ | (0.23 | ) | $ | (0.08 | ) | $ | (0.32 | ) | $ | (0.13 | ) | ||||
