Garmin 2009 Annual Report Download - page 78

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DeutschlandGmbH,GarminIberiaS.A.,GarminItaliaS.p.A.,andtheassetsofNautamaticMarineSystems,Inc.for
atotalof$128.8million,thenetsaleof$112.8millionoffixedincomesecuritiesassociatedwiththeinvestmentof
ouron‐handcashbalancesandthepurchaseof$2.9millionofintangibleassets.The$112.8millionnetsaleof
fixedincomesecuritiesincludesthepurchaseof$188.2millionofTeleAtlasN.V.outstandingsharesinconnection
withourannouncedintenttomakeacashofferforalloutstandingshareswhichwassubsequentlyabandoned.
Garmin’saveragereturnonitsinvestmentsduringfiscal2007wasapproximately4.3%.Itismanagement’sgoalto
investtheon‐handcashconsistentwithGarmin’sinvestmentpolicy,whichhasbeenapprovedbytheBoardof
Directors.Theinvestmentpolicy’sprimarypurposeistopreservecapital,maintainanacceptabledegreeof
liquidity,andmaximizeyieldwithintheconstraintoflowcreditrisk.

Netcashusedbyfinancingactivitiesduring2009was$161.2millionresultingfromtheuseof$149.8
millionforthepaymentofadividendand$20.3millionforthepurchaseofstockoffsetby$8.9millionfromthe
issuanceofcommonsharesrelatedtotheexerciseofemployeestockoptionsandstockappreciationrightsand
therelatedtaxbenefit.During2009,Garminrepurchased707,600ofitscommonsharesunderthe$300million
stockrepurchaseprogramthatwasapprovedbytheBoardofDirectorsonOctober22,2008andexpiredon
December31,2009.Referto“Item5.MarketfortheCompany’sCommonShares,RelatedShareholderMatters
andIssuerPurchasesofEquitySecurities”foradditionaldiscussionregardingthe2008sharerepurchaseprograms.
Netcashusedbyfinancingactivitiesduring2008was$808.1millionresultingfromtheuseof$671.8millionfor
thestockrepurchasesand$150.3millionforthepaymentofadividendoffsetby$14.0millionfromtheissuance
ofcommonsharesrelatedtotheexerciseofemployeestockoptionsandstockappreciationrightsandtherelated
taxbenefit.The$671.8millionofsharerepurchasesrepresented17.1millioncommonshares.Cashflowrelated
tofinancingactivitiesresultedinanetuseofcashin2007of$136.1million.During2007,Garminrepurchased
57,235ofitscommonsharesunderthe3,000,000‐sharestockrepurchaseprogramthatwasapprovedbythe
BoardofDirectorsonAugust3,2006andexpiredonDecember31,2007.Sourcesandusesinfinancingactivities
during2007relatedprimarilytoauseforthepaymentofadividend($162.5million)andthepurchaseofstock
($7.8million),andasourceofcashfromtheissuanceofcommonsharesrelatedtotheexerciseofemployeestock
optionsandstockappreciationrightstherelatedtaxbenefit,andtheemployeestockpurchaseplan($34.4
million).

Cashdividendspaidtoshareholderswere$149.8million,$150.3million,and$162.5millionduringfiscal
years2009,2008,and2007,respectively.

Wecurrentlyusecashflowfromoperationstofundourcapitalexpenditures,tosupportourworking
capitalrequirementsandtorepurchaseshares.Weexpectthatfuturecashrequirementswillprincipallybefor
capitalexpenditures,workingcapital,repurchaseofshares,paymentofdividendsdeclared,andthefundingof
strategicacquisitions.

Webelievethatourexistingcashbalancesandcashflowfromoperationswillbesufficienttomeetour
projectedcapitalexpenditures,workingcapitalandothercashrequirementsatleastthroughtheendoffiscal
2010.
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ContractualObligationsandCommercialCommitments

FuturecommitmentsofGarmin,asofDecember26,2009,aggregatedbytypeofcontractualobligation,
are:

Paymentsduebyperiod
Lessthan Morethan
ContractualObligations Total 1year 1‐3years 3‐5years 5years
OperatingLeases $41,343 $9,105 $14,476 $10,906 $6,856
PurchaseObligations $30,560 $25,681 $2,307 $2,572 $0
Total $71,903 $34,787 $16,783 $13,478 $6,856
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