Garmin 2007 Annual Report Download - page 94

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68
5. Commitments and Contingencies
Rental expense related to office, equipment, warehouse space and real estate amounted to $5,546, $3,119,
and $690 for the years ended December 29, 2007, December 30, 2006, and December 31, 2005, respectively.
Future minimum lease payments are as follows:
Year Amount
2008 $6,581
2009 6,069
2010 5,515
2011 4,778
2012 4,484
Thereafter 16,012
Certain cash balances of GEL are held as collateral by a bank securing payment of the United Kingdom
value-added tax requirements. The total amount of restricted cash balances were $1,554 and $1,525 at December
29, 2007 and December 30, 2006, respectively.
In the normal course of business, the Company and its subsidiaries are parties to various legal claims,
actions, and complaints, including matters involving patent infringement and other intellectual property claims and
various other risks. It is not possible to predict with certainty whether or not the Company and its subsidiaries will
ultimately be successful in any of these legal matters, or if not, what the impact might be. However, the Company’s
management does not expect that the results in any of these legal proceedings will have a material adverse effect on
the Company’s results of operations, financial position or cash flows.
We may be required to make significant cash outlays related to unrecognized tax benefits. However, due to
the uncertainty of the timing of future cash flows associated with our unrecognized tax benefits, we are unable to
make reasonably reliable estimates of the period of cash settlement, if any, with the respective taxing authorities.
Accordingly, unrecognized tax benefits of $126.6 million as of December 29, 2007, have been excluded from the
contractual obligations table above. For further information related to unrecognized tax benefits, see Note 7,
“Income Taxes”, to the consolidated financial statements included in this Report.
6. Employee Benefit Plans
GII sponsors a defined contribution employee retirement plan under which its employees may contribute up
to 50% of their annual compensation subject to Internal Revenue Code maximum limitations and to which GII
contributes a specified percentage of each participant’s annual compensation up to certain limits as defined in the
Plan. Additionally, GEL has a defined contribution plan under which its employees may contribute up to 7.5% 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 29, 2007, December 30, 2006, and December 31, 2005,
expense related to these plans of $11,412, $8,690, and $6,378, was charged to operations.
Certain of the Company’s foreign subsidiaries participate in local defined benefit pension plans.
Contributions are calculated by formulas that consider final pensionable salaries. Neither obligations nor
contributions for the years ended December 29, 2007, December 30, 2006, and December 31, 2005, were
significant.