Garmin 2009 Annual Report Download - page 89

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atend‐of‐yearratesforallassetsandliabilities.Theeffectofthistranslationisrecordedinaseparatecomponent
ofstockholders’equity.Cumulativetranslationadjustmentsof$9,231and($15,306)asofDecember26,2009and
December27,2008,respectively,netofrelatedtaxes,havebeenincludedinaccumulatedothercomprehensive
gain/(loss)intheaccompanyingconsolidatedbalancesheets.
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Transactionsinforeigncurrenciesarerecordedattheapproximaterateofexchangeatthetransaction
date.Assetsandliabilitiesresultingfromthesetransactionsaretranslatedattherateofexchangeineffectatthe
balancesheetdate.Alldifferencesarerecordedinresultsofoperationsandamountedtoexchangegains/(losses)
of($6,040),($35,286),and$22,964fortheyearsendedDecember26,2009,December27,2008,andDecember
29,2007,respectively.Thelossinfiscal2009wasprimarilytheresultoftheweakeningoftheUSDagainstthe
TaiwanDollaroffsetbytheweakeningoftheUSDagainsttheEuroandtheBritishPoundSterling.Thelossinfiscal
2008wastheresultofthestrengtheningoftheUSDoffsetbyagainassociatedwiththesaleandtenderofour
TeleAtlasN.V.shares.Thegaininfiscal2007wastheresultofthestrengtheningoftheEuroandBritishPound
SterlingrelativetotheUSDexperiencedbyourEuropeancompanies.
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EarningsPerShare
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Basicearningspershareamountsarecomputedbasedontheweighted‐averagenumberofcommon
sharesoutstanding.Forpurposesofdilutedearningspershare,thenumberofsharesthatwouldbeissuedfrom
theexerciseofdilutivestockoptionshasbeenreducedbythenumberofshareswhichcouldhavebeenpurchased
fromtheproceedsoftheexerciseattheaveragemarketpriceoftheCompany’sstockduringtheperiodthe
optionswereoutstanding.SeeNote10.
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CashandCashEquivalents
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Forpurposesofreportingcashflows,cashandcashequivalentsincludecashonhand,operatingaccounts,
moneymarketfunds,andsecuritieswithmaturitiesofthreemonthsorlesswhenpurchased.Thecarryingamount
ofcashandcashequivalentsapproximatesfairvalue,giventheshortmaturityofthoseinstruments.
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TradeAccountsReceivable
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TheCompanysellsitsproductstoretailers,wholesalers,andothercustomersandextendscreditbasedon
itsevaluationofthecustomer’sfinancialcondition. Potentiallossesonreceivablesaredependentoneach
individualcustomer’sfinancialcondition.TheCompanycarriesitstradeaccountsreceivableatnetrealizablevalue.
Typically,itsaccountsreceivablearecollectedwithin60daysanddonotbearinterest.TheCompanymonitorsits
exposuretolossesonreceivablesandmaintainsallowancesforpotentiallossesoradjustments.TheCompany
determinestheseallowancesby(1)evaluatingtheagingofitsreceivablesand(2)reviewingitshigh‐riskcustomers.
Pastduereceivablebalancesarewrittenoffwhenitsinternalcollectioneffortshavebeenunsuccessfulin
collectingtheamountdue.
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