Garmin 2007 Annual Report Download - page 96

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70
December 29, December 30, December 31,
2007 2006 2005
Deferred tax assets:
Product warranty accruals $18,975 $11,259 $5,017
Allowance for doubtful accounts 2,430 1,327 1,361
Inventory reserves 7,699 4,555 4,120
Sales program allowances 42,832 12,629 3,798
Reserve for sales returns 5,565 1,660 566
Other accrual 3,911 2,424 1,401
Unrealized intercompany profit in inventory 30,006 21,115 12,978
Unrealized investment loss - - 219
Unrealized foreign currency loss - 325 -
Stock option compensation 8,887 3,720 -
Tax credit carryforwards, net 303 2,181 1,482
Net operating losses of subsidiairies 1,204 - -
Other 4,649 4,225 550
126,461 65,420 31,492
Deferred tax liabilities:
Depreciation 9,209 7,883 9,019
Prepaid Expenses 6,498 - -
Unrealized foreign currency loss 161 - -
Book basis in excess of tax basis for acquired entities 14,867 - -
Unrealized investment gain 31 278 -
Other 254 2,454 2,344
31,020 10,615 11,363
N
et deferred tax assets $95,441 $54,805 $20,129
8. Fair Value of Financial Instruments
In accordance with SFAS No. 107, Disclosures about Fair Value of Financial Instruments, the following
summarizes required information about the fair value of certain financial instruments for which it is currently
practicable to estimate such value. None of the financial instruments are held or issued for trading purposes. The
carrying amounts and fair values of the Company’s financial instruments are as follows:
Carrying Fair Carrying Fair
Amount Value Amount Value
Cash and cash equivalents $707,689 $707,689 $337,321 $337,321
Restricted cash 1,554 1,554 1,525 1,525
Marketable securities 424,505 424,505 480,876 480,876
December 29, 2007 December 30, 2006
For certain of the Company’s financial instruments, including accounts receivable, accounts payable and other
accrued liabilities, the carrying amounts approximate fair value due to their short maturities.