Garmin 2005 Annual Report Download - page 82

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52
Garmin Ltd. And Subsidiaries
Consolidated Statements of Cash Flows
(In Thousands)
Year Ended
December 31, December 25, December 27,
2005 2004 2003
Operating Activities:
Net income $311,219 $205,700 $178,634
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 18,693 13,069 10,216
Amortization 24,903 21,530 9,888
Gain on sale of property and equipment 37 191 61
Provision for doubtful accounts 445 187 600
Provision for obsolete and slow-moving inventories 14,755 7,158 6,574
Foreign currency transaction gains/losses (13,957) 19,736 10,015
Deferred income taxes 8,833 (7,951) (4,205)
Stock appreciation rights 925
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable (61,607) (27,086) (21,982)
Inventories (61,262) (61,534) (36,102)
Prepaid expenses and other current assets (16,021) (3,190) (1,590)
Purchase of licenses (4,192) (32,796) (1,724)
Other assets - - 100
Accounts payable 24,127 10,638 6,324
Accrued expenses 4,283 26,424 735
Income taxes payable (4,176) 36,860 15,912
Net cash provided by operating activities 247,005 208,936 173,456
Investing activities:
Purchases of property and equipment (27,130) (78,145) (32,770)
Proceeds from sale of property and equipment -25 14
Purchase of marketable securities (59,106) (104,559) -
Sales of marketable securities -- 22,870
Purchase of MotionBased Technologies / UPS Aviation Technologies, Inc. (1,483) - (38,177)
Change in restricted cash 98 153 -
Other (3,560) (1,791) (645)
Net cash used in investing activities (91,181) (184,317) (48,708)
Financing activities:
Dividends (53,974) (54,095) (54,040)
Proceeds from issuance of common stock through
stock purchase plan 2,824 2,691 1,805
Proceeds from issuance of common stock from
exercise of stock options 6,866 3,440 2,456
Principal payments on long-term debt - - (20,000)
Purchase of common stock (26,653) (3,182) -
Net cash used in financing activities (70,937) (51,146) (69,779)
Effect of exchange rate changes on cash and cash equivalents (444) 2,107 2,592
Net increase/(decrease) in cash and cash equivalents 84,443 (24,420) 57,561
Cash and cash equivalents at beginning of year 249,909 274,329 216,768
Cash and cash equivalents at end of year $334,352 $249,909 $274,329
See accompanying notes.