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Corporate earnings
Wednesday, 22 February 2017, 12:00 am CST

Garmin Reports Solid Fiscal 2016 Revenue and Operating Income Growth

Garmin Ltd. (Nasdaq: GRMN) today announced results for the fiscal-year
ended December 31, 2016.

Highlights for the fourth quarter 2016 include:

  • Total revenue of $861 million, growing 10% over the prior year, with
    outdoor, fitness, marine and aviation collectively growing 25% over
    the prior year quarter and contributing 74% of total revenue
  • Gross margin improved to 54.7% compared to 52.9% in the prior year
    quarter
  • Operating margin of 18.6% compared to 18.7% in the prior year quarter
  • Operating income growth of 10%
  • GAAP EPS was $0.72 and pro forma EPS(1) of $0.73 for fourth
    quarter 2016
  • Introduced the fēnix® 5 with three watch designs that are expected to
    appeal to a broader range of wrist sizes and style preferences

Highlights for the fiscal year 2016 include:

  • Total revenue of $3,019 million growing 7% over the prior year, with
    outdoor, fitness, marine and aviation collectively growing 21% over
    the prior year and contributing 71% of total revenue
  • Gross and operating margins of 55.6% and 20.7%, respectively, both
    improving from 2015 levels
  • GAAP EPS was $2.70, a 13% improvement over the prior year, and pro
    forma EPS(1) was $2.83, a 14% improvement over the prior
    year
  • Shipped approximately 16.8 million units, up 4% from the prior year
    and over 173 million since inception
  • Connect IQ app store establishes itself with over 2,500 apps and over
    24 million downloads since inception
(in thousands, 14-Weeks Ended 13-Weeks Ended 53-Weeks Ended 52-Weeks Ended
except per share data) Dec 31, Dec 26, Yr over Yr Dec 31, Dec 26, Yr over Yr
2016

2015
(2)

 Change 2016

2015
(2)

 Change
Net sales $860,767 $781,358 10 % $3,018,665 $2,820,270 7 %
Outdoor 175,397 119,884 46 % 546,326 411,184 33 %
Fitness 274,052 228,740 20 % 818,486 661,599 24 %
Marine 67,458 56,454 19 % 331,947 286,778 16 %
Aviation 117,265 104,059 13 % 439,348 398,618 10 %
Auto 226,595 272,221 -17 % 882,558 1,062,091 -17 %
Gross profit % 54.7 % 52.9 % 55.6 % 54.6 %
Operating profit % 18.6 % 18.7 % 20.7 % 19.5 %
GAAP diluted EPS $0.72 $0.70 3 % $2.70 $2.39 13 %
Pro forma diluted EPS (1) $0.73 $0.74 -1 % $2.83 $2.49 14 %

(1)

See attached table for reconciliation of non-GAAP measures
including pro forma diluted EPS

(2)

Action camera related net sales for the 13-weeks and 52-weeks
ended Dec 26, 2015 have been recast from the Outdoor segment to
the Auto segment to conform to the current year presentation.


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

“2016 was a remarkable year of growth driven by strong sales in our
outdoor, fitness, marine, and aviation segments,” said Cliff Pemble,
president and Chief Executive Officer of Garmin Ltd. “Entering 2017, we
see additional growth opportunities ahead and we are well positioned to
seize these opportunities with a strong lineup of great products.”


Outdoor:

The outdoor segment grew 46% in the quarter with significant
contributions from wearable devices combined with growth in all other
product categories and the contribution of DeLorme products. Gross
margin remained strong at 61% while operating margin was relatively flat
at 33%, resulting in 42% operating income growth. We recently announced
our fēnix® 5 series with three different designs all featuring Garmin
Elevate™ wrist heart rate technology and our QuickFit™ band replacement
system: the fēnix 5S is perfect for smaller wrists without sacrificing
multisport functionality, the fēnix 5X includes preloaded wrist-based
mapping, and the compact fēnix 5 is feature-packed with an all-new
industrial design. We expect outdoor to continue to be a growth segment
in 2017 as we leverage opportunities in wearables and other product
categories in the segment.


Fitness:

The fitness segment posted strong revenue growth of 20% in the quarter
driven by wearables with Garmin Elevate™ wrist heart rate technology.
Gross margin increased year-over-year to 52% with operating margin of
17%, resulting in a 15% growth in operating income. The recently
launched vívofit jr. was well received by retailers and customers during
the holiday quarter and we see additional growth potential for wearables
designed specifically for children. We believe fitness will be our
largest revenue contributor in 2017, and enter the year confident in our
product lineup.


Marine:

The marine segment posted strong fourth quarter revenue growth of 19%
driven by our solid lineup of chart plotters and fish finders. Gross
margin decreased year-over-year to 52% due to product mix, while
operating margin improved to 4%. In the quarter, we introduced new
touchscreen and keyed chartplotter combo offerings in our popular
GPSMAP® product line, many with built-in sonar, and new radar and
entertainment offerings. We expect marine to continue to be a growth
segment in 2017 as we focus on market share gains and new product
innovations.


Aviation:

The aviation segment posted solid revenue growth of 13% in the quarter
with growth contributions from both OEM and aftermarket. Gross and
operating margins were 77% and 28%, respectively. During the quarter, we
received FAA installation approval for our helicopter ADS-B offerings,
supported Cirrus in the certification and initial deliveries of the SF
50 light jet, and Textron Airland announced our selection as the
avionics provider for the Scorpion light attack aircraft. We continue to
invest in upcoming certifications with our numerous OEM partners, as
well as ongoing opportunities for long-term market share gains.


Auto:

The auto segment recorded revenue decline of 17% in the quarter,
primarily due to the ongoing PND market contraction. Gross margin
remained constant at 42%, while operating margin declined year-over-year
to 9%. At the recent CES show we announced our next generation Drive
series PNDs, which offer expanded safety and driver awareness features
and WIFI capability that enhances the process of updating maps and other
content stored on the device. During the quarter, we were chosen as a
Tier 1 infotainment hardware supplier for BMW affirming recent
investments in our OEM program.


Additional Financial Information:

Total operating expenses in the quarter were $311 million, a 16%
increase from the prior year. Advertising increased 19%, driven by
year-over-year increases in the fitness and outdoor segments to support
wearables. Research and development and selling, general and
administrative expenses increased 22% and 9%, respectively, due
primarily to recent acquisitions and an additional week in our fourth
quarter 2016.

The effective tax rate in the fourth quarter of 2016 was 19.0%, an
increase from 13.2% in the prior year quarter. The year-over-year
increase in the fourth quarter 2016 tax rate is primarily due to the
recording of a full year of the U.S. research and development tax credit
in the fourth quarter of 2015 versus being spread over four quarters in
2016.

In the fourth quarter of 2016, we generated $165 million of free cash
flow (see attached table for reconciliation of this non-GAAP measure).
We continued to return cash to shareholders through dividends and share
repurchases. As a result of the additional week in the fourth quarter
2016, two quarterly dividends were recorded totaling approximately $192
million and we repurchased approximately $28 million of Company stock.
We have approximately $75 million remaining in the share repurchase
program which was extended through December 31, 2017, and expect to
repurchase Company stock as business and market conditions warrant. We
ended the quarter with cash and marketable securities of approximately
$2.3 billion.


2017 Guidance:


2017 Guidance

Revenue ~$3.02B
Gross Margin ~56%
Operating Margin ~20%
Tax Rate (Pro Forma) ~22%
EPS (Pro Forma) ~$2.65

We expect 2017 revenue of approximately $3.02 billion as growth in
outdoor, fitness, marine and aviation is offset by ongoing declines in
the PND market. We expect gross margins to be approximately 56%,
relatively flat to the prior year. Operating margin is expected to be
approximately 20%. With a pro forma expected tax rate of approximately
22%, we currently forecast 2017 pro forma EPS of approximately $2.65.
The expected year-over-year increase in the 2017 pro forma tax rate is
primarily due to the Company’s election to adjust certain Switzerland
tax positions to address potential tax risk from evolving global tax
initiatives.


Dividend Recommendation:

The board of directors intends to recommend to the shareholders for
approval at the annual meeting to be held on June 9, 2017, a cash
dividend in the amount of $2.04 per share (subject to possible
adjustment based on the total amount of the dividend in Swiss Francs as
approved at the annual meeting), payable in four equal installments on
dates to be determined by the Board. The Board currently anticipates the
scheduling of the dividend in four installments as follows:


Dividend Date


Record Date


$s per share

June 30, 2017 June 19, 2017 $0.51
September 29, 2017 September 15, 2017 $0.51
December 29, 2017 December 15, 2017 $0.51
March 30, 2018 March 15, 2018 $0.51

In addition, the board of directors has established March 31, 2017 as
the payment date and March 15, 2017 as the record date for the final
dividend installment of $0.51 per share, per the prior approval at the
2016 annual shareholders’ meeting. The first, second and third payments
of $0.51 per share were made on June 30, 2016, September 30, 2016, and
December 30, 2016, respectively.


Webcast Information/Forward-Looking Statements:

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

When: Wednesday, February 22, 2017 at 10:30 a.m. Eastern
Where:

http://www.garmin.com/en-US/company/investors/events/

How: Simply log on to the web at the address above or call to listen in
at 855-757-3897

An archive of the live webcast will be available until April 27, 2017 on
the Garmin website at www.garmin.com.
To access the replay, click on the Investor Relations 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 “would,” “may,” “expects,” “estimates,”
“plans,” “intends,” “projects,” and other words or phrases with similar
meanings. Any statements regarding the Company’s GAAP and pro
forma estimated earnings, EPS, tax rate and revenue for fiscal 2017, the
Company’s expected segment revenue growth rates, margins, currency
movements, expenses, pricing, new products to be introduced in 2017 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 31, 2016 filed by Garmin with the
Securities and Exchange Commission (Commission file number 0-31983). A
copy of Garmin’s 2016 Form 10-K can be downloaded from

http://www.garmin.com/aboutGarmin/invRelations/finReports.html

.

Garmin, the Garmin logo, the Garmin delta, DeLorme, fēnix, GPSMAP and
vívofit, are trademarks of Garmin Ltd. or its subsidiaries and are
registered in one or more countries, including the U.S.; Garmin Elevate
and QuickFit 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

Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)
14-Weeks Ended 13-Weeks Ended 53-Weeks Ended 52-Weeks Ended
December 31, December 26, December 31, December 26,
2016 2015 2016 2015
Net sales $860,767 $781,358 $3,018,665 $2,820,270
Cost of goods sold 389,985 368,215 1,339,095 1,281,566
Gross profit 470,782 413,143 1,679,570 1,538,704
Advertising expense 67,702 56,814 177,143 167,166
Selling, general and administrative expense 114,312 104,556 410,558 394,914
Research and development expense 128,952 106,011 467,960 427,043
Total operating expense 310,966 267,381 1,055,661 989,123
Operating income 159,816 145,762 623,909 549,581
Other income (expense):
Interest income 9,296 7,358 33,406 29,653
Foreign currency losses (1,648 ) (9,288 ) (31,651 ) (23,465 )
Other income 1,093 8,711 4,006 11,418
Total other income (expense) 8,741 6,781 5,761 17,606
Income before income taxes 168,557 152,543 629,670 567,187
Income tax provision 31,952 20,160 118,856 110,960
Net income $136,605 $132,383 $510,814 $456,227
Net income per share:
Basic $0.73 $0.70 $2.71 $2.39
Diluted $0.72 $0.70 $2.70 $2.39

Weighted average common shares outstanding:

Basic 188,233 189,317 188,818 190,631
Diluted 189,171 189,847 189,343 191,107
Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share information)
(Unaudited)
December 31, December 26,
2016 2015
Assets
Current assets:
Cash and cash equivalents $846,883 $833,070
Marketable securities 266,952 215,161
Accounts receivable, net 527,062 531,481
Inventories, net 484,821 500,554
Deferred costs 47,395 49,176
Prepaid expenses and other current assets 89,903 81,645
Total current assets 2,263,016 2,211,087
Property and equipment, net 482,878 446,089
Marketable securities 1,213,285 1,343,387
Restricted cash 113 259
Noncurrent deferred income tax 110,293 116,518
Noncurrent deferred costs 56,151 38,769
Intangible assets, net 305,002 245,552
Other assets 94,395 97,730
Total assets $4,525,133 $4,499,391
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $172,404 $178,905
Salaries and benefits payable 88,818 70,601
Accrued warranty costs 37,233 30,449
Accrued sales program costs 80,953 67,613
Deferred revenue 146,564 164,982
Accrued royalty costs 36,523 30,310
Accrued advertising expense 37,440 33,547
Other accrued expenses 70,469 74,926
Income taxes payable 16,163 21,674
Dividend payable 96,168 192,991
Total current liabilities 782,735 865,998
Deferred income taxes 61,220 56,210
Non-current income taxes 121,174 101,689
Non-current deferred revenue 140,407 128,731
Other liabilities 1,594 1,637
Stockholders’ equity:

Shares, CHF 0.10 par value, 198,077 shares authorized and issued;
and 188,565 shares outstanding at December 31, 2016

Shares, CHF 10.00 par value, 208,077 shares authorized and issued;
and 189,722 shares outstanding at December 26, 2015

17,979 1,797,435
Additional paid-in capital 1,836,047 62,239
Treasury stock (455,964 ) (414,637 )
Retained earnings 2,056,702 1,930,517
Accumulated other comprehensive income (36,761 ) (30,428 )
Total stockholders’ equity 3,418,003 3,345,126
Total liabilities and stockholders’ equity $4,525,133 $4,499,391
Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
53-Weeks Ended 52-Weeks Ended
Dec 31, Dec 26,
2016 2015
Operating activities:
Net income $510,814 $456,227

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation 55,796 51,311
Amortization 30,544 27,049
Loss (gain) on sale or disposal of property and equipment (503 ) (198 )
Provision for doubtful accounts 4,136 (2,521 )
Deferred income taxes 1,699 5,897
Unrealized foreign currency loss 13,387 37,931
Provision for obsolete and slow moving inventories 26,458 23,257
Stock compensation expense 41,250 26,290
Realized gain on marketable securities (822 ) (55 )
Changes in operating assets and liabilities:
Accounts receivable 9,000 22,473
Inventories (2,455 ) (121,718 )
Other current and non-current assets 2,234 (107,360 )
Accounts payable (11,496 ) 36,079
Other current and non-current liabilities 44,766 20,742
Deferred revenue (6,363 ) (43,338 )
Deferred cost (15,780 ) (585 )
Income taxes payable 3,017 (151,014 )
Net cash provided by operating activities 705,682 280,467
Investing activities:
Purchases of property and equipment (90,960 ) (80,592 )
Proceeds from sale of property and equipment 676 7,921
Purchase of intangible assets (5,715 ) (3,889 )
Purchase of marketable securities (905,089 ) (915,921 )
Redemption of marketable securities 957,350 919,141
Proceeds from repayment on loan receivable – –
Change in restricted cash 146 48
Acquisitions, net of cash acquired (77,945 ) (38,687 )
Net cash (used in) provided by investing activities (121,537 ) (111,979 )
Financing activities:
Dividends paid (481,452 ) (378,117 )
Purchase of treasury stock under share repurchase plan (93,233 ) (131,413 )
Purchase of treasury stock related to equity awards (7,331 ) (5,586 )
Proceeds from issuance of treasury stock related to equity awards 18,648 17,073
Tax benefit from issuance of equity awards 1,692 (2,049 )
Net cash used in financing activities (561,676 ) (500,092 )
Effect of exchange rate changes on cash and cash equivalents (8,656 ) (31,594 )
Net increase (decrease) in cash and cash equivalents 13,813 (363,198 )
Cash and cash equivalents at beginning of period 833,070 1,196,268
Cash and cash equivalents at end of period $846,883 $833,070
Garmin Ltd. And Subsidiaries
Net Sales, Gross Profit, and Operating Income by Segment
(Unaudited)
(In thousands)
Reporting Segments


Outdoor


Fitness


Marine


Auto


Aviation


Total

14-Weeks Ended December 31, 2016
Net sales $175,397 $274,052 $67,458 $226,595 $117,265 $860,767
Gross profit $107,852 $141,742 $35,155 $95,977 $90,056 $470,782
Operating income $58,314 $46,175 $2,995 $19,363 $32,969 $159,816
13-Weeks Ended December 26, 2015
(3)
Net sales $119,884 $228,740 $56,454 $272,221 $104,059 $781,358
Gross profit $73,353 $117,344 $30,289 $113,257 $78,900 $413,143
Operating income $40,935 $40,288 ($5,593 ) $36,182 $33,950 $145,762
53-Weeks Ended December 31, 2016
Net sales $546,326 $818,486 $331,947 $882,558 $439,348 $3,018,665
Gross profit $340,504 $437,205 $183,709 $388,747 $329,405 $1,679,570
Operating income $184,035 $160,596 $52,167 $102,347 $124,764 $623,909

52-Weeks Ended December 26, 2015
(3)
Net sales $411,184 $661,599 $286,778 $1,062,091 $398,618 $2,820,270
Gross profit $254,878 $366,139 $158,493 $464,480 $294,714 $1,538,704
Operating income $139,070 $134,574 $28,611 $136,069 $111,257 $549,581

(3)

Action camera related operating results for the 13-weeks and
52-weeks ended December 26, 2015 have been recast from the Outdoor
segment to the Auto segment to conform to the current year
presentation.

Garmin Ltd. And Subsidiaries
Net Sales by Geography (Unaudited)
(In thousands)
14-Weeks Ended 13-Weeks Ended 53-Weeks Ended 52-Weeks Ended
Dec 31, Dec 26, Yr over Yr Dec 31, Dec 26, Yr over Yr
2016 2015 Change 2016 2015 Change
Net sales $860,767 $781,358 10 % $3,018,665 $2,820,270 7 %
Americas 447,537 412,581 8 % 1,521,147 1,469,243 4 %
EMEA 300,764 268,787 12 % 1,110,969 1,013,139 10 %
APAC 112,466 99,990 12 % 386,549 337,888 14 %

EMEA – Europe, Middle East and Africa; APAC – Asia Pacific and
Australian Continent

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 net
income (earnings) per share, forward-looking pro forma earnings per
share, forward-looking pro forma tax rate 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.
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.


Pro forma net income (earnings) per share

Management believes that net income (earnings) per share before the
impact of foreign currency gain or loss and certain discrete income tax
items, as discussed below, is an important measure. The majority of the
Company’s consolidated foreign currency gain or loss is 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 gain or
loss. The Company’s income tax expense is periodically impacted by
discrete tax items that are not reflective of the income tax expense
that is incurred related to the current period earnings. Accordingly,
earnings per share before the impact of foreign currency translation
gain or loss and certain discrete income tax items permits a consistent
comparison of the Company’s operating performance between periods.

The tax effect of foreign currency gains (losses) was calculated using
effective tax rates of 19.0% and 13.2% for the fourth quarters of 2016
and 2015, respectively and 18.9% and 19.6% for the fiscal years of 2016
and 2015. The 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 both on a quarterly and
fiscal year basis

There were no discrete tax items identified by management in the
53-weeks and 52-weeks ended December 31, 2016 and December 26, 2015,
respectively, that were excluded from pro forma earnings per share. The
net release of other uncertain tax position reserves, amounting to
approximately $11.9 million and $7.3 million for the 53-weeks and
52-weeks ended December 31, 2016 and December 26, 2015, respectively,
have not been included as pro forma adjustments in the above
presentation of pro forma earnings per share as such amounts tend to be
more recurring in nature, and do not affect comparability between
periods.

Garmin Ltd. And Subsidiaries
Net income per share (Pro Forma)
(in thousands, except per share information)
14-Weeks Ended 13-Weeks Ended 53-Weeks Ended 52-Weeks Ended
Dec 31, Dec 26, Dec 31, Dec 26,
2016 2015 2016 2015
Net Income (GAAP) $136,605 $132,383 $510,814 $456,227
Foreign currency losses 1,648 9,288 31,651 23,465
Tax effect of foreign currency losses (312 ) (1,227 ) (5,974 ) (4,590 )
Net income (Pro Forma) $137,941 $140,444 $536,491 $475,102
Net income per share (GAAP):
Basic $0.73 $0.70 $2.71 $2.39
Diluted $0.72 $0.70 $2.70 $2.39
Net income per share (Pro Forma):
Basic $0.73 $0.74 $2.84 $2.49
Diluted $0.73 $0.74 $2.83 $2.49
Weighted average common shares outstanding:
Basic 188,233 189,317 188,818 190,631
Diluted (GAAP) 189,171 189,847 189,343 191,107


Free cash flow

Management believes that free cash flow is an important financial
measure because it represents the amount of cash provided by operations
that is available for investing and defines it as operating cash flow
plus one-time cash payments associated with our inter-company
restructuring less capital expenditures for property and equipment.

Garmin Ltd. And Subsidiaries
Free Cash Flow
(in thousands)
14-Weeks Ended 13-Weeks Ended 53-Weeks Ended 52-Weeks Ended
Dec 31, Dec 26, Dec 31, Dec 26,
2016 2015 2016 2015
Net cash provided by operating activities $ 213,315 $ 158,336 $ 705,682 $ 280,467
Less: purchases of property and equipment (48,803 ) (27,295 ) (90,960 ) (80,592 )
Plus: taxes paid related to inter-company restructuring – – – 182,800
Free Cash Flow $ 164,512 $ 131,041 $ 614,722 $ 382,675


Forward-looking pro forma tax rate

Forward-looking pro forma tax rate and pro forma earnings per share are
calculated before the effect of certain discrete tax items. Management
believes certain discrete tax items may not be reflective of income tax
expense incurred as a result of current period earnings. Therefore, in
order to permit consistent comparison between periods, the tax rate and
earnings per share before the effect of such discrete tax items are
important measures. In the 53-weeks ended December 31, 2016, there were
no such discrete tax items identified. However, in fiscal 2017,
management believes certain discrete tax items will be recognized on a
U.S. GAAP-basis, that will have an effect on comparability between
periods:

  • The Company expects its fiscal 2017 pro forma tax rate to increase to
    22% due to the Company’s election in February 2017 to adjust certain
    Switzerland corporate tax positions to address potential tax risk from
    evolving global tax initiatives. The 2017 pro forma tax rate of 22%
    excludes the effect of the expected revaluation of certain Switzerland
    deferred tax assets, for which the Company anticipates recording
    approximately $150 million of income tax benefit in the first quarter
    of 2017.
  • The fiscal 2017 pro forma tax rate of 22% also excludes the tax
    effects from share-based compensation as a result of the adoption of Accounting
    Standards Update No. 2016-09, Compensation – Stock Compensation (Topic
    718): Improvements to Employee Share-Based Accounting     (“ASU
    2016-09”), which may have a material effect on the U.S. GAAP-basis tax
    rate. However, the Company is unable to project these amounts due to
    the dependency of this item on the underlying share price of the
    Company.

While management expects the above to have a significant impact on
comparability, management is unable to determine whether or not
additional significant discrete tax items will be identified in fiscal
2017.


Forward-looking pro forma earnings per share (EPS)

In addition to the discrete tax items discussed in the forward-looking
pro forma tax rate section above, our 2017 pro forma EPS excludes
foreign currency exchange gains and losses. The estimated impact of such
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 of such
foreign currency gains and losses, net of tax effects, was $0.01 and
$0.13 per share for the 14-weeks and 53-weeks ended December 31, 2016,
respectively.

 

Contacts

Garmin Ltd. Investor Relations Contact: Teri Seck, 913-397-8200 [email protected] or Media Relations Contact: Ted Gartner, 913-397-8200 [email protected]