Garmin 2008 Annual Report Download - page 92

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70
5. 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 27, 2008, December 29, 2007, and December 30, 2006,
expense related to these plans of $14,927, $11,412, and $8,690, 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 27, 2008, December 29, 2007, and December 30, 2006, were
significant.
6. Income Taxes
The Company’s income tax provision (benefit) consists of the following:
December 27, December 29, December 30,
2008 2007 2006
Federal:
Current $90,655 $132,452 $42,850
Deferred 23,639 (42,193) (21,153)
114,294 90,259 21,697
State:
Current 1,318 12,569 4,935
Deferred 1,090 (2,916) (3,922)
2,408 9,653 1,013
Foreign:
Current 44,279 34,334 65,441
Deferred 20,537 (10,984) (7,720)
64,816 23,350 57,721
Total $181,518 $123,262 $80,431
Fis cal Year Ended
The income tax provision differs from the amount computed by applying the statutory federal income tax
rate to income before taxes. The sources and tax effects of the differences, including the impact of establishing tax
contingency accruals, are as follows: