Garmin 2008 Annual Report Download - page 99

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77
December 27, December 29, December 30,
2008 2007 2006
Numerator (in thousands):
Numerator for basic and diluted
net income per share - net income $732,848 $855,011 $514,123
Denominator (in thousands):
Denominator for basic net income per share -
weighted-average common shares 208,993 216,524 216,340
Effect of dilutive securities -
employee stock-based awards (note 10) 1,687 3,351 2,505
Denominator for diluted net income per share -
weighted-average common shares 210,680 219,875 218,845
Basic net income per share $3.51 $3.95 $2.38
Diluted net income per share $3.48 $3.89 $2.35
Fiscal Year Ended
Options to purchase 5,846,000, 886,000, and 757,000 common shares were outstanding during 2008, 2007, and
2006 respectively, but were not included in the computation of diluted earnings per share because the effect was
antidilutive.
11. Share Repurchase Program
The Board of Directors approved a share repurchase program on October 22, 2008, authorizing the
Company to purchase up to $300 million of its common shares as market and business conditions warrant. The
share repurchase authorization expires on December 31, 2009. During fiscal 2008, $42 million of common shares
were repurchased and retired under this plan.
The Board of Directors approved a share repurchase program on June 6, 2008, authorizing the Company to
purchase up to 10,000,000 of its common shares as market and business conditions warrant. The share repurchase
authorization expires on December 31, 2009. During fiscal 2008, 10,000,000 shares were repurchased and retired
under this plan.
The Board of Directors approved a share repurchase program on February 4, 2008, authorizing the
Company to purchase up to 5,000,000 of its common shares as market and business conditions warrant. The share
repurchase authorization expires on December 31, 2009. During fiscal 2008, 5,000,000 shares were repurchased
and retired under this plan.
The Board of Directors approved a share repurchase program on August 3, 2006, authorizing the Company
to purchase up to 3,000,000 of its common shares as market and business conditions warrant. The share repurchase
authorization expired on December 31, 2007. From inception to expiration, 1,212,535 shares were repurchased and
retired under this plan.
12. Shareholder Rights Plan
On October 24, 2001, Garmin’s Board of Directors adopted a shareholder rights plan (the “Rights Plan”).
Pursuant to the Rights Plan, the Board declared a dividend of one preferred share purchase right on each outstanding
common share of Garmin to shareholders of record as of November 1, 2001. The rights trade together with Garmin’s
common shares. The rights generally will become exercisable if a person or group acquires or announces an
intention to acquire 15% or more of Garmin’s outstanding common shares. Each right (other than those held by the
new 15% shareholder) will then be exercisable to purchase preferred shares of Garmin (or in certain instances other
securities of Garmin) having at that time a market value equal to two times the then current exercise price. Garmin’s