Garmin 2003 Annual Report Download - page 56

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55
5. Commitments and Contingencies
Rental expense related to office, warehouse space and real estate amounted to $324, $281, and $232 for the years ended
December 27, 2003, December 28, 2002, and December 29, 2001, respectively.
Future minimum lease payments are as follows:
At December 27, 2003 and December 28, 2002, standby letters of credit amounting to $0 and $509, respectively, were issued
by banks on behalf of the Company. At December 27, 2003, the Company expects future costs of approximately $45,000 for the
completion of its facility expansion in Olathe, Kansas.
Certain cash balances of GEL are held as collateral by a bank securing payment of the United Kingdom value-added tax
requirements. These amounted to $1,602 and $1,598 at December 27, 2003 and December 28, 2002, respectively, and are reported as
restricted cash.
In the normal course of business, the Company and its subsidiaries are parties to various legal claims, actions, and
complaints, including matters involving patent infringement and other intellectual property claims and various other risks. It is not
possible to predict with certainly whether or not the Company and its subsidiaries will ultimately be successful in any of these legal
matters, or if not, what the impact might be. However, the Company’s management does not expect that the results in any of these
legal proceedings will have a material adverse effect on the Company’s results of operations, financial position or cash flows.
6. Employee Benefit Plans
GII sponsors an employee retirement plan under which its employees may contribute up to 50% of their annual compensation
subject to Internal Revenue Code maximum limitations and to which GII contributes a specified percentage of each participants
annual compensation up to certain limits as defined in the plan. Additionally, GEL has a defined contribution plan under which its
employees may contribute up to 5% of their annual compensation. Both GII and GEL contribute an amount determined annually at the
discretion of the Board of Directors. During the years ended December 27, 2003, December 28, 2002, and December 29, 2001,
expense related to these plans of $4,197, $2,728, and $2,356, respectively, was charged to operations.
Certain of the Company’s foreign subsidiaries participate in local defined benefit pension plans. Contributions are calculated
by formulas that consider final pensionable salaries. Neither obligations nor contributions for the years ended December 27, 2003,
December 28, 2002, and December 29, 2001 were significant.
Year Amount
2004 $107
2005 301
2006 301
2007 301
2008 301
Thereafter 13,276