Garmin 2010 Annual Report Download - page 44

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reduction is not subject to Swiss withholding tax. However, there can be no assurance that our shareholders will
approve a reduction in par value, that we will be able to meet the other legal requirements for a reduction in par
value, or that Swiss withholding rules will not be changed in the future. In addition, over the long term, the
amount of par value available for us to use for par value reductions will be limited. If we are unable to make a
distribution through a reduction in par value or to pay a dividend out of qualifying capital contribution reserves, we
may not be able to make distributions without subjecting you to Swiss withholding taxes.
Under Swiss tax law applicable until December 31, 2010, repurchases of shares for the purposes of capital
reduction have been treated as a partial liquidation subject to 35% Swiss withholding tax on the difference
between the par value and the repurchase price. On January 1, 2011, under Swiss laws the portion of the
repurchase price that is attributed to the qualifying capital contribution reserves of the shares repurchased will not
be subject to the Swiss withholding tax. We may follow a share repurchase process for future share repurchases, if
any, similar to a "second trading line" on the Swiss Stock Exchange in which Swiss institutional investors buy shares
on the open market and sell these shares to us and are generally able to receive a refund of the Swiss withholding
tax. However, if we are unable to use this process successfully, we may not be able to repurchase shares for the
purposes of capital reduction without subjecting you to Swiss withholding taxes.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
The following are the principal properties owned or leased by the Company and its subsidiaries:
Garmin International, Inc. and Garmin USA, Inc. occupy a facility of approximately 1,120,000 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
suppoted fo Noth, Cetal ad South Aeia. Gais susidia, Gai Realt, LLC also os a additioal
46 acres of land on the Olathe site for future expansion. In connection with the bond financings for the facility in
Olathe and the previous expansion of that facility, the City of Olathe holds the legal title to the Olathe facility
hih is leased to Gais susidiaies  the Cit. Upo the paet i full of the outstadig ods, the Cit of
Olathe is obligated to transfer title to Gais susidiaies fo the aggegate su of $. Gai Iteatioal,
Inc. has purchased all the outstanding bonds and continues to hold the bonds until maturity in order to benefit
from property tax abatement.
Garmin Corporation owns and occupies a 249,326 square foot facility in Sijhih, Taipei County, Taiwan, a
223,469 square foot facility in Jhongli, Tao-Yang County, Taiwan, and an approximately 580,000 square foot facility
in LinKou, Tao-Yang County, Taiwan. In these three facilities Garmin Copoatio aufatues all of Gais
consumer and portable aviation products and warehouses, markets and supports products for the Pacific Rim
countries.
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 115,000 square foot facility for office, development and manufacturing use and a 33,000 square
foot aircraft hangar, flight test and certification facility on this land. Garmin AT, Inc. also leases 43,870 square feet
of offie spae i a sepaate Sale, OR uildig fo Gais el-opened West Coast customer support call
center.
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.