Garmin 2007 Annual Report Download - page 102

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76
15. Acquisitions
In the first quarter of 2007, Garmin Ltd. acquired EME TecSat SAS (the exclusive distributor of Garmin’s
consumer products in France which has since been renamed Garmin France SAS), Digital Cyclone, Inc. (a location
based services provider), and the assets of Nautamatic Marine Systems, Inc. (a manufacturer of the TR-1 Gold and
Gladiator marine autopilots).
In the third quarter of 2007, Garmin Ltd. acquired GPS Gesellschaft fur Professionelle Satellitennavigation
mbH (Garmin’s exclusive distributor of consumer products in Germany which has since been renamed Garmin
Deutschland GmbH).
In the fourth quarter of 2007, Garmin Ltd. acquired Electronica Trepat SA (Garmin’s distributor of consumer
products in Spain and now renamed Garmin Iberia S.A.) and Synergy S.p.A (Garmin’s distributor of consumer
products in Italy which has since been renamed Garmin Italia S.p.A.).
These companies were acquired for $150.0 million less $21.2 million cash acquired. The preliminary purchase
price allocation resulted in an increase in goodwill and intangible assets of $110.6 million. These acquisitions are
not material, either individually or in aggregate, therefore supplemental pro forma information is not presented.
16. Warranty Reserves
The Company’s products sold are generally covered by a warranty for periods ranging from one to two
years. The Company’s estimate of costs to service its warranty obligations are based on historical experience and
expectation of future conditions and are recorded as a liability on the balance sheet. The following reconciliation
provides an illustration of changes in the aggregate warranty reserve:
Fiscal Year Ended
December 29, December 30, December 31,
2007 2006 2005
Balance - beginning of period 37,639 $18,817 $15,518
Accrual for products sold during the period 98,702 51,080 18,037
Expenditures (64,705) (32,258) (14,738)
Balance - end of period 71,636 $37,639 $18,817
17. Subsequent Events
On January 17, 2008, Garmin Ltd. acquired Fairpoint Navigation A/S, the distributor of Garmin’s consumer
products in Denmark. The company has since been renamed Garmin Danmark A/S. This acquisition was not
material.
The Board of Directors approved a share repurchase program on February 4, 2008, authorizing the Company to
purchase up to 5,000,000 million of its common shares as market and business conditions warrant. The share
repurchase authorization expires on December 31, 2009.
The range of low and high closing sales prices of Garmin’s common shares as reported on the Nasdaq
Stock Market between December 30, 2007 and February 22, 2008 have been $59.36 and $97.00.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.