Garmin 2002 Annual Report Download - page 51

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Note 2. Summary of Significant Accounting Policies (continued)
In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based Compensation — Transition and Disclosure. This
statement requires all entities with stock-based employee compensation arrangements to provide additional disclosures in their
summary of significant accounting policies note. Since the Company uses the intrinsic value method of APB Opinion No. 25,
Accounting for Stock Issued to Employees, the accounting policies note will include a tabular presentation of pro forma net
income and earnings per share using the fair value method prescribed by SFAS No. 123, Accounting for Stock-Based
Compensation. Also, SFAS No. 148 permits entities changing to the fair value method of accounting for employee stock
compensation to choose from one of three transition methods — the prospective method, the modified prospective method, or
the retroactive restatement method. Finally, SFAS No. 148 will require the Company to make interim-period pro forma disclosures
if stock-based compensation is accounted for under the intrinsic value method in any period presented. The expanded annual
disclosure requirements and the transition provisions are effective for the Company’s fiscal year 2002. The new interim period
disclosures are required in the Company’s financial statements for interim periods beginning in the first quarter of fiscal 2003.
The Company does not expect that the adoption of this statement will have a material impact on its results of operations or
financial position.
Reclassifications
Certain amounts in the fiscal 2000 and 2001 consolidated financial statements have been reclassified to conform with the fiscal
2002 presentation.
Note 3. Marketable Securities
The following is a summary of the Company’s marketable securities classified as available-for-sale securities at December 28,
2002:
Gross Unrealized Estimated Fair Value
Amortized Cost Gains/Losses (Net Carrying Amount)
Mortgage-backed securities $58,038 $386 $58,424
Obligations of states and political subdivisions 86,006 595 86,601
U.S. corporate bonds 79,572 185 79,757
Other 20,925 1 20,926
Total $244,541 $1,167 $245,708
The following is a summary of the Company’s marketable securities classified as available-for-sale securities at December 29, 2001:
Gross Unrealized Estimated Fair Value
Amortized Cost Gains/Losses (Net Carrying Amount)
Mortgage-backed securities $31,320 $ - $31,320
Obligations of states and political subdivisions 55,116 - 55,116
U.S. corporate bonds 39,575 - 39,575
Other 5,573 - 5,573
Total $131,584 $ - $131,584
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