Garmin 2009 Annual Report Download - page 102

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8.SegmentInformation
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TheCompanyoperateswithinitstargetedmarketsthroughfourreportablesegments,thosebeingrelated
toproductssoldintothemarine,automotive/mobile,outdoor/fitness,andaviationmarkets.Forexternalreporting
purposes,weaggregateoperatingsegmentswhichhavesimilareconomiccharacteristics,products,production
processes,typesorclassesofcustomersanddistributionmethodsintoreportablesegments.AlloftheCompany’s
reportablesegmentsofferproductsthroughtheCompany’snetworkofindependentdealersanddistributorsas
wellasthroughOEM’s.However,thenatureofproductsandtypesofcustomersforthefourreportablesegments
varysignificantly.TheCompany’smarine,automotive/mobile,andoutdoor/fitnesssegmentsincludeportable
globalpositioningsystem(GPS)receiversandaccessoriessoldprimarilytoretailoutlets.Theseproductsare
producedprimarilybytheCompany’ssubsidiaryinTaiwan.TheCompany’saviationproductsareportableand
panelmountavionicsforVisualFlightRulesandInstrumentFlightRulesnavigationandaresoldprimarilyto
aviationdealersandcertainaircraftmanufacturers.
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TheCompany’sChiefExecutiveOfficerhasbeenidentifiedastheChiefOperatingDecisionMaker
(CODM).TheCODMevaluatesperformanceandallocatesresourcesbasedonincomebeforeincometaxesofeach
segment.Incomebeforeincometaxesrepresentsnetsaleslessoperatingexpensesincludingcertainallocated
generalandadministrativecosts,interestincomeandexpense,foreigncurrencyadjustments,andothernon‐
operatingcorporateexpenses.Theaccountingpoliciesofthereportablesegmentsarethesameasthosedescribed
inthesummaryofsignificantaccountingpolicies.Therearenointer‐segmentsalesortransfers.
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TheidentifiableassetsassociatedwitheachreportablesegmentreviewedbytheCODMincludeaccounts
receivableandinventories.TheCompanydoesnotreportpropertyandequipment,intangibleassets,depreciation
andamortization,orcapitalexpendituresbysegmenttotheCODM.
Revenues,interestincomeandinterestexpense,incomebeforeincometaxes,andidentifiableassetsfor
eachoftheCompany’sreportablesegmentsarepresentedbelow:
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