Garmin 2001 Annual Report Download - page 51

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GARMIN LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 10. Fair Value of Financial Instruments
In accordance with SFAS No. 107,
Disclosures about Fair Value of Financial Instruments,
the following summarizes required
information about the fair value of certain financial instruments for which it is currently practicable to estimate such value.
None of the financial instruments are held or issued for trading purposes. The carrying amounts and fair values of the Company’s
financial instruments are as follows:
December 29, 2001 December 30, 2000
Carrying Amount Fair Value Carrying Amount Fair Value
Cash and cash equivalents $192,842 $192,842 $251,731 $251,731
Restricted cash 1,600 1,600 5,848 5,848
Marketable securities 131,584 131,584 ––
Interest rate swap agreements (liability) 1,479 1,479 ––
Long-term debt:
Term loan 2,843 2,843 17,601 17,481
Series 1995 Bonds 9,345 9,345 9,345 9,345
Series 2000 Bonds 20,000 20,000 20,000 20,000
The carrying value of cash and cash equivalents, restricted cash, marketable securities, and interest rate swap agreements approximates
their fair value. The fair values of the Company’s long-term floating-rate debt have been estimated using discounted cash flow
analyses, based on an estimate of the interest rate the Company would have to pay on the issuance of debt with a similar maturity
and terms. The fair values of long-term debt as reported are not necessarily the amounts the Company would currently have to pay
to extinguish any of this debt.
Note 11. Segment Information
The Company operates within its targeted markets through two reportable segments, those being related to products sold into
the consumer and aviation markets. Both of the Company’s reportable segments offer products through the Company’s network
of independent dealers and distributors. However, the nature of products and types of customers for the two segments vary significantly.
As such, the segments are managed separately. The Company’s consumer segment includes portable Global Positioning System
(GPS) receivers and accessories for marine, recreation, land, and automotive use sold primarily to retail outlets. The Company’s
aviation products are portable and panel mount avionics for Visual Flight Rules and Instrument Flight Rules navigation and are
sold primarily to retail outlets and certain aircraft manufacturers.
The Company’s Co-Chief Executive Officers have been identified as the Chief Operating Decision Makers (CODM). The CODM
evaluates performance and allocates resources based on income before income taxes of each segment. Income before income taxes
represents net sales less operating expenses including certain allocated general and administrative costs, interest income and expense,
foreign currency adjustments, and other nonoperating corporate expenses. The accounting policies of the reportable segments
are the same as those described in the summary of significant accounting policies. There are no intersegment sales or transfers.
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