Garmin 2010 Annual Report Download - page 33

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apply to remittances involving a conversion between New Taiwan Dollars and U.S. Dollars or other foreign
currencies. The CBC typically approves foreign exchange in excess of the limits if a party applies with the CBC for
review and presents legitimate business reasons justifying the currency conversion. A requirement is also imposed
on all enterprises to register all medium and long-term foreign debt with the CBC.
Environmental Matters
Gais opeatios ae sujet to aious eioetal las, iludig las addessig ai ad ate
pollution and management of hazardous substances and wastes. Substantial noncompliance with applicable
environmental laws could have a material adverse effect on our business. Currently, we do not anticipate material
capital expenditures for environmental control facilities.
Eioetal egulatio of Gais poduts is ieasig. Many of Garmin's products are subject
to laws relating to the chemical and material composition of our products and their energy efficiency. Garmin is
also subject to laws requiring manufacturers to be financially responsible for collection, recovery and recycling of
wastes from certain electronic products. Compliance with current environmental laws does not have a material
impact on our business, but the impact of future enactment of environmental laws cannot yet be fully determined
and could be substantial.
Garmin has implemented multiple Environmental Manageet Sste EMS poliies i aodae
with the International Organization for Standardization (ISO) 14001 standard for Environmental Health and Safety
Management. Gais EMS poliies set foth paties, stadads, ad poedues to esue opliance with
appliale eioetal las ad egulatios at Gais Kasas headuates failit, Gais Euopea
headuates failit, ad Gais Taia aufatuig failit.
Regulato ad Gee Poueet deads fo ou ustoes ae also increasing, particularly in the
areas of restricted substance use and environmentally-friendly design and manufacture initiatives. The overall
impacts of these customer requirements cannot yet be established. Garmin is committed to improving our
products and processes to meet our customer needs.
Employees
As of December 25, 2010, Garmin had 8,897 full and part-time employees worldwide, of whom 3,470
were in the United States, 72 were in Canada, 4,419 were in Taiwan, 725 were in Europe, and 211 were in other
gloal loatios. Eept fo soe of Gais eploees i Bazil ad Sede, oe of Gais employees are
represented by a labor union and none of Garmin's North American or Taiwan employees are covered by a
collective bargaining agreement. Garmin considers its employee relations to be good.
Item 1A. Risk Factors
The risks described below are not the only ones facing our company. Additional risks and uncertainties not
presently known to us or that we currently believe to be immaterial may also impair our business operations. If any
of the following risks occur, our business, financial condition or operating results could be materially adversely
affected.
Risks Related to the Company
The demand for personal navigation devices (PNDs) may be eroded by replacement technologies becoming
available on mobile handsets and factory-installed systems in new autos.
We have historically experienced substantial growth in the automotive/mobile segment which has
resulted in GPS/navigation technologies being incorporated into competing devices such as mobile handsets and