Garmin 2009 Annual Report Download - page 51

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Climatechangeisreceivingincreasingattentionworldwide. Somescientists,legislatorsandothers
attributeglobalwarmingtoincreasedlevelsofgreenhousegases,includingcarbondioxide,whichhasledto
significantlegislativeandregulatoryeffortstolimitgreenhousegasemissions.
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Thereareanumberofpendinglegislativeandregulatoryproposalstoaddressgreenhousegasemissions.
Forexample,inJune2009theU.S.HouseofRepresentativespassedtheAmericanCleanEnergyandSecurityAct
thatwouldphase‐insignificantreductionsingreenhousegasemissionsifenactedintolaw.TheU.S.Senateis
consideringadifferentbill,anditisuncertainwhether,whenandinwhatformafederalmandatorycarbondioxide
emissionsreductionprogrammaybeadopted.Similarly,certaincountrieshaveadoptedtheKyotoProtocol.These
actionscouldincreasecostsassociatedwithouroperations,includingcostsforcomponentsusedinthe
manufactureofourproductsandfreightcosts.
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InJune2009theCaliforniaAirResourcesBoardadoptedproposedregulationstoreducegreenhousegas
emissionswhichwouldbeginphasinginstartingwith2012model‐yearvehiclesthatwouldrequirevehiclessoldin
CaliforniatohavesolarreflectivewindowglazingthatmayinterferewiththereceptionofGPSsatellitesignalsby
portablenavigationdevices.
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Becauseitisuncertainwhatlawsandregulationswillbeenacted,wecannotpredictthepotentialimpact
ofsuchlawsandregulationsonourfutureconsolidatedfinancialcondition,resultsofoperationsorcashflows.
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RisksRelatingtoOurShares
Thevolatilityofourstockpricecouldadverselyaffectinvestmentinourcommonshares.
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Themarketpriceofourcommonshareshasbeen,andmaycontinuetobe,highlyvolatile.During2009,
thepriceofourcommonsharesrangedfromalowof$15.17toahighof$39.58.Avarietyoffactorscouldcause
thepriceofourcommonsharestofluctuate,perhapssubstantially,including:
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• announcementsandrumorsofdevelopmentsrelatedtoourbusiness,ourcompetitors,oursuppliers
orthemarketsinwhichwecompete;
• quarterlyfluctuationsinouractualoranticipatedoperatingresults;
• theavailability,pricingandtimelinessofdeliveryofcomponents,suchasflashmemoryandliquid
crystaldisplays,usedinourproducts;
• generalconditionsintheworldwideeconomy,includingfluctuationsininterestrates;
• announcementsoftechnologicalinnovations;
• newproductsorproductenhancementsbyusorourcompetitors;
• productobsolescenceandourabilitytomanageproducttransitions;
• developmentsinpatentsorotherintellectualpropertyrightsandlitigation;
• developmentsinourrelationshipswithourcustomersandsuppliers;
• researchreportsoropinionsissuedbysecuritiesanalystsorbrokeragehousesrelatedtoGarmin,our
competitors,oursuppliersorourcustomers;and
• anysignificantactsofterrorismagainsttheUnitedStates,Taiwanorsignificantmarketswherewe
sellourproducts.
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Inaddition,inrecentyearsthestockmarketingeneralandthemarketsforsharesoftechnology
companiesinparticular,haveexperiencedextremepricefluctuationswhichhaveoftenbeenunrelatedtothe
operatingperformanceofaffectedcompanies.Anysuchfluctuationsinthefuturecouldadverselyaffectthe
marketpriceofourcommonshares,andthemarketpriceofourcommonsharesmaydecline.
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