Garmin 2005 Annual Report Download - page 58

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• the scheme of arrangement is not one that would more properly be sanctioned under some other
provision of the Companies Law.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Garmin International, Inc. and Garmin USA, Inc., occupy a facility of approximately 750,000 square feet on
42 acres in Olathe, Kansas, where the majority of product design and development work is conducted, the majority
of aviation panel-mount products are manufactured and products are warehoused, distributed, and supported for
North, Central and South America. Garmin’s subsidiary, Garmin Realty, LLC also owns an additional 46 acres of
land on the Olathe site for future expansion. In connection with the bond financings for the facility in Olathe and
the expansion of that facility, the City of Olathe holds the legal title to the Olathe facility which is leased to
Garmin’s subsidiaries by the City. Upon the payment in full of the outstanding bonds, the City of Olathe is
obligated to transfer title to Garmin’s subsidiaries for the aggregate sum of $200. Garmin International, Inc. has
purchased all the outstanding bonds and continues to hold the bonds until maturity in order to benefit from property
tax abatement.
Garmin AT, Inc. leases approximately 15 acres of land in Salem, Oregon under a ground lease. This ground
lease expires in 2030 but Garmin AT has the option to extend the ground lease until 2050. Garmin AT, Inc. owns
and occupies a 52,000 square foot facility and a 21,000 square foot aircraft hangar, flight test and certification
facility on this land.
Garmin International, Inc. leases 148,320 square feet of land at New Century Airport in Gardner, Kansas
under a ground lease which expires in 2026. Garmin International, Inc. owns and occupies a 47,254 square foot
aircraft hangar, flight test and certification facility on this land which is used in development and certification of
aviation products.
Garmin International, Inc. also leases an aggregate of 3,233 square feet of office space in Tempe, Arizona
for software development, and in Wichita, Kansas for support of Garmin’s aviation original equipment manufacturer
operations. In addition, Garmin International, Inc. leases 1,700 square feet of office space in Sausalito, California
which houses the MotionBased division of Garmin International, Inc.
Garmin’s subsidiary, Garmin Corporation, owns and occupies a 249,326 square foot facility in Shijr, Taipei
County, Taiwan where it manufactures all of Garmin’s consumer and portable aviation products and warehouses,
markets and supports products for the Pacific Rim countries. In January 2006 Garmin Corporation purchased a
second facility of approximately 223,469 square feet located in Chung-Li, Tao-Yang County, Taiwan. As of the
date of this Form 10-K, Garmin Corporation expects to take possession of this second facility in April 2006 and to
commence operations at this facility by June 2006.
Garmin’s subsidiary, Garmin (Europe) Ltd., leases an aggregate of 33,642 square feet under four leases in
Romsey, England for warehousing, marketing and supporting Garmin products in Europe, Africa and the Middle
East. Garmin (Europe) Ltd. also repairs products at this facility. One of these leases expires in 2010 and three of
these leases expire in 2015.
Item 3. Legal Proceedings
Encyclopedia Britannica, Inc. v. Alpine Electronics of America, Inc., Alpine Electronics, Inc., Denso
Corporation, Toyota Motor Sales, U.S.A., Inc., American Honda Motor Co., Inc., and Garmin International, Inc.