Garmin 2002 Annual Report Download - page 52

Note 3. Marketable Securities (continued)
The amortized cost and estimated fair value of marketable securities at December 28, 2002, by contractual maturity, are shown
below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to
prepay obligations without prepayment penalties.
Cost Estimated Fair Value
Due in one year or less (2003) $113,289 $113,336
Due after one year through five years (2004 – 2008) 119,380 120,393
Due after five years through ten years (2009 – 2013) 11,872 11,979
Due after ten years (2014 and thereafter) - -
$244,541 $245,708
Note 4. Line of Credit
During December 2000, the Company renewed a line of credit agreement with a bank providing for maximum borrowings of
$5,000 less indirect borrowings under certain standby letters of credit which totaled approximately $4,000 at December 30, 2000.
There were no direct or indirect borrowings outstanding under the line of credit as of December 30, 2000. The line of credit,
which bears interest at the bank’s prime rate less 1% or LIBOR plus 1.5%, expired June 28, 2001 and was unsecured.
Note 5. Long-Term Debt
During 1995, GII entered into an agreement with the City of Olathe, Kansas for the construction of a new corporate
headquarters (the project) which was financed through issuance of Series 1995 Industrial Revenue Bonds (the Bonds) totaling
$9,500. Upon completion of the project in 1996, GII retired bonds totaling $155. During 2002, GII retired the remaining Bonds
totaling $9,345.
During 1999, GARMIN borrowed $18,040 to finance the purchase of land and a new manufacturing facility in Taiwan. The
balance was due in 60 equal payment of principal plus interest beginning in November 2001. Through November 2001, interest
was payable at a fixed rate of 6.155%. Subsequent to November 2001, interest is adjustable based on the Republic of China’s
government preferential rate on term deposits plus 0.18%. The Company opted to prepay a significant portion of the
outstanding principal during 2001. The outstanding balance of $2,891 at December 29, 2001 was paid in full in January 2002.
During 2000, GII entered into another agreement with the City of Olathe, Kansas to finance the Company’s expansion of its
manufacturing facilities through the issuance of Series 2000 Industrial Revenue Bonds (the 2000 Bonds) totaling $20,000. The
proceeds from the issuance of the 2000 Bonds were placed in an interest-bearing restricted cash account controlled by a trustee
appointed by the issuer. Disbursements from the account are restricted to purchases of equipment and construction related to
the project and amounted to $0 and $5,696 for years ended December 28, 2002 and December 29, 2001, respectively. There were
no unexpended bond proceeds in this restricted cash account at December 28, 2002.
At December 28, 2002 and December 29, 2001, outstanding principal under the 2000 Bonds totaled $20,000. Interest on the 2000
Bonds is payable monthly at a variable interest rate (1.51% at December 28, 2002), which is adjusted weekly to the current
market rate as determined by the remarketing agent of the 2000 Bonds with principal due upon maturity at April 15, 2020. See
Note 9.
51