GRMN Garmin Ltd

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2024

GARMIN LTD.

(Exact name of registrant as specified in its charter)

 

Switzerland		001-41118		98-0229227
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

Mühlentalstrasse 2

8200 Schaffhausen

Switzerland

(Address of principal executive offices)

Registrant’s telephone number, including area code: +41 52 630 1600

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Registered Shares, $0.10 Per Share Par Value		GRMN		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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Item 2.02. Results of Operations and Financial Condition

On October 30, 2024, Garmin Ltd. (“the Company”) issued a press release (the “Press Release”) announcing its financial results for the fiscal third quarter ended September 28, 2024. A copy of the Press Release is attached as Exhibit 99.1.

The information in Item 2.02 and Exhibit 99.1 to this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of or otherwise subject to the liabilities under Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Unless expressly incorporated into a filing of Garmin Ltd. under the Securities Act of 1933, as amended, or the Exchange Act made after the date hereof, the information contained in Item 2.02 and Exhibit 99.1 hereto shall not be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits. The following exhibits are furnished herewith.

 

Exhibit No.		Description
99.1		Press Release dated October 30, 2024
104		The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101)

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	GARMIN LTD.
October 30, 2024	/s/ Joshua H. Maxfield
	Joshua H. Maxfield
	Vice President and General Counsel

 

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EXHIBIT 99.1

 

 

Garmin announces third quarter 2024 results

Company reports record third quarter consolidated revenue and operating income, and raises full year guidance

 

Schaffhausen, Switzerland / October 30, 2024 / PR Newswire – Garmin® Ltd. (NYSE: GRMN), today announced results for the third quarter ended September 28, 2024.

 

Highlights for third quarter 2024 include:

 

 

(In thousands, except per share information)		13-Weeks Ended												39-Weeks Ended
		September 28,				September 30,				YoY				September 28,				September 30,				YoY
		2024				2023				Change				2024				2023				Change
Net sales		$	1,586,022			$	1,277,531			24%				$	4,474,342			$	3,745,751			19%
Fitness			463,887				352,976			31%					1,235,182				932,561			32%
Outdoor			526,551				433,997			21%					1,332,617				1,210,773			10%
Aviation			204,631				198,160			3%					639,739				629,195			2%
Marine			222,244				182,248			22%					821,933				677,026			21%
Auto OEM			168,709				110,150			53%					444,871				296,196			50%
Gross margin %			60.0	%			57.0	%							58.5	%			57.2	%
Operating income %			27.6	%			21.2	%							24.1	%			20.1	%
GAAP diluted EPS		$	2.07			$	1.34			54%				$	5.06			$	3.90			30%
Pro forma diluted EPS(1)		$	1.99			$	1.41			41%				$	4.99			$	3.88			29%
(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma diluted EPS

 

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Executive Overview from Cliff Pemble, President and Chief Executive Officer:

“We delivered another quarter of impressive financial results as our highly differentiated and innovative products resonate with customers, and we successfully leveraged growth opportunities across market segments and geographies. We are raising our 2024 outlook based on the results we have achieved so far and the momentum we are experiencing as we enter the important holiday selling season.” - Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.

 

Fitness:

Revenue from the fitness segment increased 31% in the third quarter with growth across all categories led by strong demand for wearables. Gross and operating margins were 61% and 32%, respectively, resulting in $148 million of operating income. During the quarter, we hosted our annual Garmin Health Summit to recognize innovative digital health solutions utilizing Garmin products, and to celebrate the 10th anniversary of Garmin Health. Also, during the quarter we announced updates to Garmin Coach, adding training plans for cyclists in addition to the existing training plans for runners, making it easier to prepare for an event, pursue a personal milestone or improve overall fitness.

 

Outdoor:

Revenue from the outdoor segment increased 21% in the third quarter primarily due to growth in adventure watches. Gross and operating margins were 68% and 40%, respectively, resulting in $209 million of operating income. During the quarter, we launched both the highly anticipated fēnix 8 series, adding brilliant AMOLED displays, cutting edge features, a built-in speaker, microphone, and an LED flashlight, and the Enduro 3, a lightweight ultraperformance GPS smartwatch purpose-built for ultra-endurance athletes with up to 320 hours of battery life in GPS mode with solar charging. We also launched the inReach® Messenger Plus, our first satellite communicator with photo and voice messaging in addition to two-way texting, location sharing and SOS capabilities, expanding our customers’ ability to stay in touch beyond cell service.

 

Aviation:

Revenue from the aviation segment increased 3% in the third quarter with growth driven by aftermarket product categories. Gross and operating margins were 75% and 22%, respectively, resulting in $44 million of operating income. During the quarter, we announced Runway Occupancy Awareness, which uses ADS-B information to help reduce the risk of runway incursions and provide added confidence to pilots navigating busy and complex airports. Garmin is the first to bring this new safety feature to market. We also recently unveiled our new G3000® PRIME, which redefines the integrated flight deck experience with sleek, intuitive, all-touchscreen displays and a highly flexible open architecture system that seamlessly adapts to serve a broad and dynamic market.

 

Marine:

Revenue from the marine segment increased 22% in the third quarter primarily driven by the acquisition of JL Audio®. Gross and operating margins were 55% and 17%, respectively, resulting in $38 million of operating income. During the quarter, we announced several new products to enhance our customers’ time on the water, including Fusion ApolloTM marine speaker and subwoofer series, the GCTM 245/55 marine cameras, and the GPSMAP® 9500 black box system. We recently announced the acquisition of Lumishore, a leader in marine LED lighting as we continue to focus on providing seamless integration throughout the boat.

Auto OEM:

Revenue from the auto OEM segment increased 53% during the third quarter primarily driven by growth in domain controllers. Gross margin was 20% and the operating loss narrowed to $1 million as efficiencies improved with higher sales volumes. During the quarter, we successfully launched the Garmin-designed domain controllers across all remaining BMW Group car lines.

 

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Additional Financial Information:

 

Total operating expenses in the third quarter were $514 million, a 12% increase over the prior year. Both research and development and selling, general and administrative expenses increased 12% driven primarily by personnel related costs.

 

The effective tax rate in the third quarter was 17.9% compared to the effective tax rate of 8.0% and the pro forma effective tax rate(1) of 7.2% in the prior year quarter. The increase in the current quarter effective tax rate is primarily due to the increase in the combined federal and cantonal Switzerland statutory tax rate in response to global minimum tax requirements.

 

In the third quarter of 2024, we generated operating cash flows of $258 million and free cash flow(1) of $219 million. We paid a quarterly dividend of approximately $144 million and repurchased $20 million of the Company’s shares within the quarter, leaving approximately $270 million remaining as of September 28, 2024 in the share repurchase program authorized through December 2026. We ended the quarter with cash and marketable securities of approximately $3.5 billion.

 

2024 Fiscal Year Guidance:

Based on our performance in the first three quarters of 2024, we are adjusting our full year guidance. We now anticipate revenue of approximately $6.12 billion and pro forma EPS of $6.85 based on gross margin of 58.5%, operating margin of 24.0% and a full year effective tax rate of 16.5% (see attached discussion on Forward-looking Financial Measures).

 

Dividend Recommendation:

The board of directors has established December 27, 2024, as the payment date for the next dividend installment of $0.75 per share with a record date of December 13, 2024. At the 2024 annual shareholders’ meeting, Garmin shareholders, in accordance with Swiss corporate law, approved a cash dividend in the total amount of $3.00 per share, payable in four equal installments on dates to be determined by the board in its discretion. The first and second payments were made on June 28, 2024 and September 27, 2024. The board currently anticipates the scheduling of the remaining quarterly dividend installments as follows:

Dividend Date		Record Date		$s per share
March 28, 2025		March 14, 2025		$0.75

 

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Webcast Information/Forward-Looking Statements:

 

The information for Garmin Ltd.’s earnings call is as follows:

 

When:		Wednesday, October 30, 2024 at 10:30 a.m. Eastern
Where:		Join a live stream of the call at the following link
		https://www.garmin.com/en-US/investors/events/

 

An archive of the live webcast will be available until October 29, 2025 on the Garmin website at www.garmin.com. To access the replay, click on the Investors link and click over to the Events Calendar page.

 

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s expected fiscal 2024 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements relating to possible future dividends, and the Company’s plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 30, 2023 filed by Garmin with the Securities and Exchange Commission (Commission file number 001-41118). A copy of Garmin’s 2023 Form 10-K can be downloaded from https://www.garmin.com/en-US/investors/sec/. All information provided in this release and in the attachments is as of September 28, 2024. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

 

This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company’s use of these measures are included in the attachments.

 

Garmin, the Garmin logo, the Garmin delta, fēnix, G3000, GPSMAP, inReach, and JL Audio are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Enduro, Fusion Apollo, and GC are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

 

 

 

Investor Relations Contact:		Media Relations Contact:
Teri Seck		Krista Klaus
913/397-8200		913/397-8200
investor.relations@garmin.com		media.relations@garmin.com

 

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Change in Operating Expense Presentation

Certain prior period information presented here has been recast to conform to the current period presentation. In the first quarter of 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.

 

Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)
		13-Weeks Ended								39-Weeks Ended
		September 28,				September 30,				September 28,				September 30,
		2024				2023				2024				2023
Net sales		$	1,586,022			$	1,277,531			$	4,474,342			$	3,745,751
Cost of goods sold			634,423				548,962				1,857,712				1,604,945
Gross profit			951,599				728,569				2,616,630				2,140,806
Research and development expense			249,162				221,572				734,848				667,451
Selling, general and administrative expenses			264,962				236,628				803,869				721,649
Total operating expense			514,124				458,200				1,538,717				1,389,100
Operating income			437,475				270,369				1,077,913				751,706
Other income (expense):
Interest income			28,830				19,803				83,143				54,461
Foreign currency gains (losses)			18,131				(11,539	)			15,584				6,946
Other income			1,814				938				2,623				4,206
Total other income (expense)			48,775				9,202				101,350				65,613
Income before income taxes			486,250				279,571				1,179,263				817,319
Income tax provision			87,139				22,328				203,560				69,810
Net income		$	399,111			$	257,243			$	975,703			$	747,509
Net income per share:
Basic		$	2.08			$	1.34			$	5.08			$	3.91
Diluted		$	2.07			$	1.34			$	5.06			$	3.90
Weighted average common shares outstanding:
Basic			192,201				191,435				192,055				191,409
Diluted			193,171				191,868				192,940				191,772

 

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Garmin Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
		September 28, 2024				December 30, 2023
Assets
Current assets:
Cash and cash equivalents		$	2,009,361			$	1,693,452
Marketable securities			414,701				274,618
Accounts receivable, net			922,034				815,243
Inventories			1,505,536				1,345,955
Deferred costs			23,385				16,316
Prepaid expenses and other current assets			334,488				318,556
Total current assets			5,209,505				4,464,140
Property and equipment, net			1,220,113				1,224,097
Operating lease right-of-use assets			137,665				143,724
Noncurrent marketable securities			1,106,532				1,125,191
Deferred income tax assets			787,849				754,635
Noncurrent deferred costs			7,994				11,057
Goodwill			611,884				608,474
Other intangible assets, net			168,230				186,601
Other noncurrent assets			97,960				85,650
Total assets		$	9,347,732			$	8,603,569
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	374,025			$	253,790
Salaries and benefits payable			218,941				190,014
Accrued warranty costs			57,983				55,738
Accrued sales program costs			75,802				98,610
Other accrued expenses			222,925				245,874
Deferred revenue			113,049				101,189
Income taxes payable			227,735				225,475
Dividend payable			288,204				139,997
Total current liabilities			1,578,664				1,310,687
Deferred income tax liabilities			104,996				114,682
Noncurrent income taxes payable			16,864				16,521
Noncurrent deferred revenue			30,227				36,148
Noncurrent operating lease liabilities			109,832				113,035
Other noncurrent liabilities			602				436
Stockholders’ equity:
Common shares (194,901 and 195,880 shares authorized and issued;     192,136 and 191,777 shares outstanding)			19,490				19,588
Additional paid-in capital			2,218,170				2,125,467
Treasury shares (2,765 and 4,103 shares)			(243,994	)			(330,909	)
Retained earnings			5,563,576				5,263,528
Accumulated other comprehensive income (loss)			(50,695	)			(65,614	)
Total stockholders’ equity			7,506,547				7,012,060
Total liabilities and stockholders’ equity		$	9,347,732			$	8,603,569

 

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Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
		39-Weeks Ended
		September 28, 2024				September 30, 2023
Operating Activities:
Net income		$	975,703			$	747,509
Adjustments to reconcile net income to net cash provided by    operating activities:
Depreciation			102,343				98,483
Amortization			30,849				33,751
Gain on sale or disposal of property and equipment			(48	)			(50	)
Unrealized foreign currency (gains) losses			(25,486	)			9,927
Deferred income taxes			(53,966	)			(90,214	)
Stock compensation expense			101,039				66,214
Realized loss on marketable securities			29				56
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net of allowance for doubtful accounts			(103,567	)			(54,756	)
Inventories			(163,865	)			111,459
Other current and noncurrent assets			(47,413	)			28,288
Accounts payable			124,315				55,340
Other current and noncurrent liabilities			(6,987	)			430
Deferred revenue			5,885				7,063
Deferred costs			(3,987	)			(1,152	)
Income taxes			13,737				(102,024	)
Net cash provided by operating activities			948,581				910,324
Investing activities:
Purchases of property and equipment			(108,869	)			(144,876	)
Purchase of marketable securities			(363,783	)			(116,039	)
Redemption of marketable securities			277,334				145,094
Net cash from (payments for) acquisitions			5,011				(150,853	)
Other investing activities, net			(458	)			(1,018	)
Net cash used in investing activities			(190,765	)			(267,692	)
Financing activities:
Dividends			(428,373	)			(419,166	)
Proceeds from issuance of treasury shares related to equity awards			24,530				21,946
Purchase of treasury shares related to equity awards			(16,313	)			(9,397	)
Purchase of treasury shares under share repurchase plan			(29,278	)			(79,533	)
Net cash used in financing activities			(449,434	)			(486,150	)
Effect of exchange rate changes on cash and cash equivalents			7,536				(12,854	)
Net increase in cash, cash equivalents, and restricted cash			315,918				143,628
Cash, cash equivalents, and restricted cash at beginning of period			1,694,156				1,279,912
Cash, cash equivalents, and restricted cash at end of period		$	2,010,074			$	1,423,540

 

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Garmin Ltd. and Subsidiaries

Net Sales, Gross Profit and Operating Income by Segment (Unaudited)

(In thousands)

 

		Fitness				Outdoor				Aviation				Marine				Auto OEM				Total
13-Weeks Ended September 28, 2024
Net sales		$	463,887			$	526,551			$	204,631			$	222,244			$	168,709			$	1,586,022
Gross profit			283,325				358,693				154,138				122,433				33,010				951,599
Operating income (loss)			147,768				208,866				44,278				37,839				(1,276	)			437,475
13-Weeks Ended September 30, 2023
Net sales		$	352,976			$	433,997			$	198,160			$	182,248			$	110,150			$	1,277,531
Gross profit			190,685				270,774				148,364				95,186				23,560				728,569
Operating income (loss)			74,614				136,401				49,269				23,850				(13,765	)			270,369
39-Weeks Ended September 28, 2024
Net sales		$	1,235,182			$	1,332,617			$	639,739			$	821,933			$	444,871			$	4,474,342
Gross profit			723,375				885,646				478,131				449,472				80,006				2,616,630
Operating income (loss)			323,511				451,408				146,899				185,422				(29,327	)			1,077,913
39-Weeks Ended September 30, 2023
Net sales		$	932,561			$	1,210,773			$	629,195			$	677,026			$	296,196			$	3,745,751
Gross profit			484,759				755,800				463,774				365,162				71,311				2,140,806
Operating income (loss)			139,651				351,399				169,730				142,135				(51,209	)			751,706

 

 

 

Garmin Ltd. and Subsidiaries
Net Sales by Geography (Unaudited)
(In thousands)
		13-Weeks Ended												39-Weeks Ended
		September 28,				September 30,				YoY				September 28,				September 30,				YoY
		2024				2023				Change				2024				2023				Change
Net sales		$	1,586,022			$	1,277,531			24%				$	4,474,342			$	3,745,751			19%
Americas			724,572				628,157			15%					2,181,266				1,881,710			16%
EMEA			612,658				439,123			40%					1,618,058				1,252,526			29%
APAC			248,792				210,251			18%					675,018				611,515			10%
EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and Australian Continent

 

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Non-GAAP Financial Information

 

To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below.

 

The tables below provide reconciliations between the GAAP and non-GAAP measures.

 

Pro forma effective tax rate

 

The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first three quarters of 2024 there were no such discrete tax items identified.

 

(In thousands)		13-Weeks Ended																39-Weeks Ended
		September 28,								September 30,								September 28,								September 30,
		2024								2023								2024								2023
		$				ETR(1)				$				ETR(1)				$				ETR(1)				$				ETR(1)
GAAP income tax provision		$	87,139				17.9	%		$	22,328				8.0	%		$	203,560				17.3	%		$	69,810				8.5	%
Pro forma discrete tax item:
Tax effect of state rate change(2)			—								(2,269	)							—								(2,269	)
Pro forma income tax provision		$	87,139				17.9	%		$	20,059				7.2	%		$	203,560				17.3	%		$	67,541				8.3	%
(1) Effective tax rate is calculated by taking the income tax provision divided by income before taxes, as presented on the face of the Condensed Consolidated Statements of Income.
(2) In third quarter 2023, the Company recognized $2.3 million of tax expense due to the revaluation of deferred tax assets associated with the change in corporate income tax rate for the state of Kansas. The impact of the revaluation of these deferred tax assets was not reflective of income tax expense incurred as a result of current period earnings.

 

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Pro forma net income (earnings) per share

 

Management believes 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 to permit a consistent comparison of the Company’s performance between periods.

 

(In thousands, except per share information)		13-Weeks Ended								39-Weeks Ended
		September 28,				September 30,				September 28,				September 30,
		2024				2023				2024				2023
GAAP net income		$	399,111			$	257,243			$	975,703			$	747,509
Foreign currency gains / losses(1)			(18,131	)			11,539				(15,584	)			(6,946	)
Tax effect of foreign currency gains / losses(2)			3,249				(828	)			2,690				574
Pro forma discrete tax item(3)			—				2,269				—				2,269
Pro forma net income		$	384,229			$	270,223			$	962,809			$	743,406
GAAP net income per share:
Basic		$	2.08			$	1.34			$	5.08			$	3.91
Diluted		$	2.07			$	1.34			$	5.06			$	3.90
Pro forma net income per share:
Basic		$	2.00			$	1.41			$	5.01			$	3.88
Diluted		$	1.99			$	1.41			$	4.99			$	3.88
Weighted average common shares outstanding:
Basic			192,201				191,435				192,055				191,409
Diluted			193,171				191,868				192,940				191,772
(1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies 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 a given legal entity. However, there is minimal cash impact from such foreign currency gains and losses.
(2) The tax effect of foreign currency gains was calculated using the effective tax rate of 17.9% and 17.3% for the 13-weeks and 39-weeks ended September 28, 2024 and 7.2% and 8.3% for the 13-weeks and 39-weeks ended September 30, 2023.

 

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Free cash flow

 

Management believes free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and equipment. Management believes excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company’s operations and allows more accurate comparisons of the Company’s results between periods. This metric may also be useful to investors but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities.

 

(In thousands)		13-Weeks Ended								39-Weeks Ended
		September 28,				September 30,				September 28,				September 30,
		2024				2023				2024				2023
Net cash provided by operating activities		$	257,955			$	357,412			$	948,581			$	910,324
Less: purchases of property and equipment			(38,544	)			(45,530	)			(108,869	)			(144,876	)
Free Cash Flow		$	219,411			$	311,882			$	839,712			$	765,448

 

Forward-looking Financial Measures

 

The forward-looking financial measures in our 2024 guidance provided above do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculating the non-GAAP measures described above.

 

The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was $0.07 per share for the 39-weeks ended September 28, 2024.

 

At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2024, estimate the impact of any such items, or anticipate the impact of any other events that may be considered in the calculation of non-GAAP financial measures.

 

 

 

 

 

 

 

 

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v3.24.3

Document And Entity Information	Oct. 30, 2024
Statement of Financial Position [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 30, 2024
Entity Registrant Name	GARMIN LTD.
Entity Central Index Key	0001121788
Entity Emerging Growth Company	false
Entity File Number	001-41118
Entity Incorporation, State or Country Code	V8
Entity Tax Identification Number	98-0229227
Entity Address, Address Line One	Mühlentalstrasse 2
Entity Address, City or Town	Schaffhausen
Entity Address, Country	CH
Entity Address, Postal Zip Code	8200
City Area Code	+41 52
Local Phone Number	630 1600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Registered Shares, $0.10 Per Share Par Value
Trading Symbol	GRMN
Security Exchange Name	NYSE

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