Garmin 2007 Annual Report Download - page 87

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61
Inventories
Inventories are stated at the lower of cost or market. Cost is determined using the weighted-average method
(which approximates the first-in, first-out (FIFO) method) by GC and the FIFO method by GII, GAT and GEL.
Inventories consisted of the following:
December 29, December 30, December 31, December 25,
2007 2006 2005 2004
Raw materials $130,056 $85,040 $65,348 $69,036
Work-in-process 57,622 42,450 27,845 29,959
Finished goods 348,975 163,286 121,404 67,274
Inventory reserves (31,186) (19,768) (14,756) (11,289)
$505,467 $271,008 $199,841 $154,980
Property and Equipment
Property and equipment are recorded at cost and depreciated using the straight-line method over the
following estimated useful lives:
Buildings and improvements 39
Office furniture and equipment 5
Manufacturing and engineering equipment 5
Vehicles 5
Long-Lived Assets
In accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the
Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the
carrying amount of an asset may not be fully recoverable. The carrying amount of a long-lived asset is not
recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual
disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for
recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset
exceeds its fair value.
Dividends
On August 1, 2007 the Board of Directors declared a dividend of $0.75 per share to be paid on September
14, 2007 to shareholders of record on August 15, 2007. The Company paid out a dividend in the amount of
$162,531. The dividend has been reported as a reduction of retained earnings.
On April 26, 2006 the Board of Directors declared a post-split dividend of $0.50 per share to be paid on
December 15, 2006 to shareholders of record on December 1, 2006. The Company paid out a dividend in the
amount of $107,923. The dividend has been reported as a reduction of retained earnings.
On July 20, 2005 the Board of Directors declared a dividend of $0.25 per share (post split) to be paid on
December 15, 2005 to shareholders of record on December 1, 2005. The Company paid out a dividend in the
amount of $53,974. The dividend has been reported as a reduction of retained earnings.
Approximately $159,210 and $129,651 of retained earnings are indefinitely restricted from distribution to
stockholders pursuant to the law of Taiwan at December 29, 2007 and December 30, 2006, respectively.