Garmin 2009 Annual Report Download - page 98

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52‐WeeksEnded 52‐WeeksEnded
December27,2008 December26,2009
Beginningbalanceofauctionratesecurities $0 71,303$
Totalunrealizedgainsincludedinother
comprehensiveincome 92,850 99
Purchasesinand/oroutofLevel3 (21,547) (1,150)
Transfersinand/oroutofLevel3‐‐
Endingbalanceofauctionratesecurities $71,303 $70,252
FairValueMeasurementsUsing
SignificantUnobservableInputs(Level3)

Thefollowingisasummaryofthecompany’smarketablesecuritiesclassifiedasavailable‐for‐sale
securitiesatDecember26,2009:
AmortizedCost
Gross
Unreal i zed
Gains
Gross
Unrealized
Losses
OtherThan
Temporary
Impairment
Esti matedFair
Val ue(Net
CarryingAmount)
Mortgage‐backedsecurities $515,200 $2,682 ($4,674) ‐$ $513,208
Aucti onRateSecurities 91,700 ‐ (21,448) ‐ $70,252
Obligationsofstatesandpoliticalsubdivisions 112,419 908 (181) ‐ $113,146
U.S.corporatebonds 35,883 768 (701) (1,274) $34,676
Other 33,903 1,070 (208) ‐ $34,765
Total $789,105 $5,428 ($27,212) ($1,274) $766,047

Thefollowingisasummaryofthecompany’smarketablesecuritiesclassifiedasavailable‐for‐sale
securitiesatDecember27,2008:
AmortizedCost
Gross
UnrealizedGains
Gross
Unrealized
Losses
OtherThan
Temporary
Impairment
EstimatedFair
Value(NetCarrying
Amount)
Mortgage‐backedsecurities $137,854 $1,184 ($140) ‐$ $138,898
AuctionRateSecurities 92,850 ‐ (21,547) ‐ $71,303
Obligationsofstatesandpoliticalsubdivisions 40,336 960 (12) ‐ $41,284
U.S.corporatebonds 16,545 200 (2,707) ‐ $14,038
Other 9,502 79 (209) ‐ $9,372
Total $297,087 $2,423 ($24,615) ‐$ $274,895

Thecostofsecuritiessoldisbasedonthespecificidentificationmethod.

TheunrealizedlossesontheCompany’sinvestmentsin2008and2009werecausedprimarilybychanges
ininterestrates,specifically,wideningcreditspreads.TheCompany’sinvestmentpolicyrequiresinvestmentsto
beratedAorbetterwiththeobjectiveofminimizingthepotentialriskofprincipalloss.Therefore,theCompany
considersthedeclinestobetemporaryinnature.Fairvaluesweredeterminedforeachindividualsecurityinthe
investmentportfolio.Whenevaluatingtheinvestmentsforother‐than‐temporaryimpairment,theCompany
reviewsfactorssuchasthelengthoftimeandextenttowhichfairvaluehasbeenbelowcostbasis,thefinancial
conditionoftheissuer,andtheCompany’sabilityandintenttoholdtheinvestmentforaperiodoftime,which
maybesufficientforanticipatedrecoveryinmarketvalue.During2008and2009,theCompanydidnotrecordany
materialimpairmentchargesonitsoutstandingsecurities.

TheamortizedcostandestimatedfairvalueofmarketablesecuritiesatDecember26,2009,by
contractualmaturity,areshownbelow.Expectedmaturitieswilldifferfromcontractualmaturitiesbecausethe
issuersofthesecuritiesmayhavetherighttoprepayobligationswithoutprepaymentpenalties.
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