Garmin 2002 Annual Report Download - page 53

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Note 5. Long-Term Debt (continued)
The 2000 Bonds are secured by an irrevocable letter of credit totaling $20,288 with facility fees of 0.75%. This renewable letter
of credit initially expires on September 20, 2004.
The bank has required a sinking fund be established with payments beginning April 2004 of $4,002 and semiannual payments of
$667 thereafter. The payments are to be made to a legally restricted bank account. Principal and sinking fund payments on long-
term debt are as follows:
Year Sinking Fund Principal
2003 $ - $ -
2004 4,002 -
2005 1,334 -
2006 1,334 -
2007 1,334 -
Thereafter 11,996 20,000
$20,000 $20,000
Note 6. Leases and Other Commitments
Rental expense related to office and warehouse space for GEL amounted to $281, $232, and $139 for the years ended December
28, 2002, December 29, 2001, and December 30, 2000, respectively. Future minimum lease payments on the related lease are $236
per year through 2007. In the years 2008 through lease expiration in 2015, total future minimum lease payments are $1,886.
At December 28, 2002 and December 29, 2001, standby letters of credit amounting to $509 and $871, respectively, were issued by
banks on behalf of the Company.
Approximately $50,669 and $39,000 of GARMIN’s retained earnings are indefinitely restricted from distribution to stockholders
pursuant to the law of Taiwan at December 28, 2002 and December 29, 2001, respectively.
Certain cash balances of GEL are held as collateral by a bank securing payment of the United Kingdom value-added tax
requirements. These amounted to $1,598 and $1,600 at December 28, 2002 and December 29, 2001, respectively, and are
reported as restricted cash.
Note 7. Employee Benefit Plans
GII has an employee savings plan under which its employees may contribute up to 15% of their annual compensation subject to
Internal Revenue Code maximum limitations. Additionally, GEL has a defined contribution plan under which its employees may
contribute up to 5% of their annual compensation. Both GII and GEL contribute an amount determined annually at the
discretion of the Board of Directors. During the years ended December 28, 2002, December 29, 2001, and December 30, 2000,
expense related to these plans of $1,467, $1,172, and $1,144, respectively, was charged to operations.
Additionally, GII has a defined contribution money purchase plan (the MPP Plan) which covers substantially all employees. GII
contributes a specified percentage of each participant’s annual compensation up to certain limits as defined in the MPP Plan.
During the years ended December 28, 2002, December 29, 2001, and December 30, 2000, GII recorded expense related to the
MPP Plan of $1,261, $1,184, and $849, respectively.
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