Garmin 2005 Annual Report Download - page 101

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71
December 31, December 25, December 27,
2005 2004 2003
Balance - beginning of period $15,518 $8,399 $5,949
Accrual for products sold during the period 18,037 24,622 14,429
Expenditures (14,738) (17,503) (11,979)
Balance - end of period $18,817 $15,518 $8,399
Fiscal Year Ended
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
(a) Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including the Chief Executive Officer
and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure
controls and procedures pursuant to Exchange Act Rule 13a-15(c) as of the end of the period covered by this report.
Based on the evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these
disclosure controls and procedures are effective.
(b) Management’s Report on Internal Control over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control over
financial reporting. The Company’s internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Management of the Company assessed the effectiveness of the Company’s internal control over financial
reporting as of December 31, 2005. In making this assessment, management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) in “Internal Control-Integrated
Framework”.
Based on such assessment and those criteria, management believes that the Company maintained effective
internal control over financial reporting as of December 31, 2005.
Ernst & Young LLP, the independent registered public accounting firm that audited the Company’s
consolidated financial statements, issued an attestation report on management’s assessment of the Company’s
internal control over financial reporting. That attestation report appears below.