Garmin 2008 Annual Report Download - page 80

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58
December 27, December 29, December 30,
2008 2007 2006
Operating Activities:
Net income $732,848 $855,011 $514,123
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 46,910 35,524 21,535
Amortization 31,507 28,513 22,940
Loss on sale of property and equipment 124 560 67
Provision for doubtful accounts 32,355 3,617 955
Provision for obsolete and slow-moving inventories 24,461 34,975 23,245
Unrealized foreign currency losses/(gains) 15,887 (926) (344)
Deferred income taxes 51,554 (57,843) (35,060)
Stock compensation 38,872 22,164 11,913
Realized gains on marketable securities (50,884) (5,101) (3,852)
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable 206,101 (477,108) (230,111)
Inventories 83,035 (224,180) (92,708)
Prepaid expenses and other current assets (4,356) 6,213 (4,357)
Purchase of licenses (15,289) (23,569) (2,950)
Accounts payable (236,287) 174,781 10,187
Accrued expenses (18,166) 253,909 97,167
Income taxes payable (76,509) 55,548 29,105
Net cash provided by operating activities 862,164 682,088 361,855
Investing activities:
Purchases of property and equipment (119,623) (156,777) (92,906)
Proceeds from sale of property and equipment 19 5 76
Purchase of intangible assets (6,971) (2,918) (3,115)
Purchase of marketable securities (373,580) (1,672,041) (453,085)
Redemption of marketable securities 504,324 1,784,816 359,313
Acquistions, net of cash acquired (60,131) (128,751) (36,499)
Change in restricted cash (387) (29) (169)
Net cash used in investing activities (56,349) (175,695) (226,385)
Financing activities:
Dividends (150,251) (162,531) (107,923)
Payment on long-term debt - (248) (11)
Proceeds from issuance of common stock through
stock purchase plan 9,029 5,730 3,569
Proceeds from issuance of common stock from
exercise of stock options 1,817 11,278 12,505
Tax benefit related to stock option exercise 2,143 17,434 9,660
Purchase of common stock (671,847) (7,780) (50,450)
Net cash used in financing activities (809,109) (136,117) (132,650)
Effect of exchange rate changes on cash and cash equivalents (8,061) 92 149
Net increase/(decrease) in cash and cash equivalents (11,354) 370,368 2,969
Cash and cash equivalents at beginning of year 707,689 337,321 334,352
Cash and cash equivalents at end of year $696,334 $707,689 $337,321
See accompanying notes.
Fiscal Year Ended
Garmin Ltd. And Subsidiaries
Consolidated Statements of Cash Flows
(In Thousands)