Garmin 2008 Annual Report Download - page 91

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69
At December 29, 2007, the Company’s equity securities were primarily comprised of an investment in Tele
Atlas N.V. acquired by Garmin in 2007 in connection with its announced intent to make a cash offer for all
outstanding shares of Tele Atlas N.V., which was subsequently abandoned. This resulted in a $46.7 million
unrealized gain in fiscal 2007. In fiscal 2008, the Company realized a gain of $72.4 million following the sales and
tender of the shares of Tele Atlas N.V. including foreign currency gain due to the strengthening of the Euro. As a
result of this transaction, the unrealized gain on equity securities in fiscal 2007 was eliminated.
The amortized cost and estimated fair value of marketable securities at December 27, 2008, by contractual
maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the
securities may have the right to prepay obligations without prepayment penalties.
Estimated
Cost Fair Value
Due in one year or less (2009) $14,535 $14,675
Due after one year through five years (2010-2014) 29,906 28,110
Due after five years through ten years (2015-2019) 66,515 67,037
Due after ten years (2020 and thereafter) 186,131 165,073
$297,087 $274,895
The effective maturity date differs from the stated maturity dates. The securities are classified in the
balance sheet at their stated maturity dates.
In accordance with FASB Staff Position FAS 115-1 and FAS 124-1, The Meaning of Other-Than-
Temporary Impairment and Its Application to Certain Investments, the Company evaluated investments that were in
an unrealized loss position to determine the length of time that individual securities have been in a continuous loss
position. No investments that were in an unrealized loss position have been held for greater than twelve months.
4. Commitments and Contingencies
Rental expense related to office, equipment, warehouse space and real estate amounted to $8,419, $5,546,
and $3,119 for the years ended December 27, 2008, December 29, 2007, and December 30, 2006, respectively.
Future minimum lease payments are as follows:
Year Amount
2009 $7,957
2010 7,393
2011 6,396
2012 5,607
2013 5,454
Thereafter 11,241
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 $1,941 and $1,554 at December
27, 2008 and December 29, 2007, 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.