Garmin 2009 Annual Report Download - page 108

90
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BoardofDirectorsmayredeemtherightsat$0.001perrightatanytimebefore
therightsbecomeexercisable.TherightsexpireonOctober31,2011.


13.SelectedQuarterlyInformation(Unaudited)

FiscalYearEndedDecember26,2009
QuarterEnding
March28 June27 September26 December26
Netsales $436,699 $669,104 $781,254 1,059,383$
Grossprofit 195,995 351,614 409,742 486,760
Netincome 48,538 161,871 215,133 278,408
Basicnetincomepershare $0.24 $0.81 $1.07 $1.39
FiscalYearEndedDecember27,2008
QuarterEnding
March29 June28 September27 December27
Netsales $663,805 $911,671 $870,355 1,048,246$
Grossprofit 320,115 417,128 385,639 430,633
Netincome 147,779 256,092 171,244 157,733
Basicnetincomepershare $0.68 $1.20 $0.83 $0.78



Theabovequarterlyfinancialdataisunaudited,butintheopinionofmanagement,alladjustments
necessaryforafairpresentationoftheselecteddatafortheseinterimperiodspresentedhavebeenincluded.
Theseresultsarenotnecessarilyindicativeoffuturequarterlyresults.


14.WarrantyReserves

TheCompany’sproductssoldaregenerallycoveredbyawarrantyforperiodsrangingfromonetotwo
years.TheCompany’sestimateofcoststoserviceitswarrantyobligationsarebasedonhistoricalexperienceand
expectationoffutureconditionsandarerecordedasaliabilityonthebalancesheet.Thefollowingreconciliation
providesanillustrationofchangesintheaggregatewarrantyreserve:
