Garmin 2010 Annual Report Download - page 52

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Ite 7. Maageet’s Disussio ad Aalysis of Fiaial Coditio ad Results of Opeatios
The following discussion and analysis of our financial condition and results of operations focuses on and is
intended to clarify the results of our operations, certain changes in our financial position, liquidity, capital structure
and business developments for the periods covered by the consolidated financial statements included in this Form
10-K. This discussion should be read in conjunction with, and is qualified by reference to, the other related
information including, but not limited to, the audited consolidated financial statements (including the notes
thereto), the description of our business, all as set forth in this Form 10-K, as well as the risk factors discussed
above in Item 1A.
As previously noted, the discussion set forth below, as well as other portions of this Form 10-K, contain
statements concerning potential future events. Readers can identify these forward-looking statements by their
use of suh es as epets, atiipates, eliees o siila es o ojugatios of suh es. If a of
our assumptions on which the statements are based prove incorrect or should unanticipated circumstances arise,
our actual results could materially differ from those anticipated by such forward-looking statements. The
differences could be caused by a number of factors or combination of factors including, but not limited to, those
discussed above in Item 1A. Readers are strongly encouraged to consider those factors when evaluating any such
forward-looking statement. We do not undertake to update any forward-looking statements in this Form 10-K.
Gais fisal year is a 52-53 week period ending on the last Saturday of the calendar year. Fiscal years
2010, 2009, and 2008 contained 52 weeks. Uless otheise stated, all eas ad dates efe to the Copas
fiscal year and fiscal periods. Unless the context otherwise requires, references in this document to "we," "us,"
"our" and similar terms refer to Garmin Ltd. and its subsidiaries.
Unless otherwise indicated, dollar amounts set forth in the tables are in thousands, except per share data.
Overview
We are a leading worldwide provider of navigation, communications and information devices, most of
which are enabled by Global Positioning System, or GPS, technology. We operate in four business segments, which
serve the marine, outdoor/fitness, automotive/mobile, and aviation markets. Our segments offer products
through our network of subsidiary distributors and independent dealers and distributors. However, the nature of
products and types of customers for the four segments can vary significantly. As such, the segments are managed
separately. Our portable GPS receivers and accessories for marine, recreation/fitness and automotive/mobile
segments are sold primarily to retail outlets. Our aviation products are portable and panel-mount avionics for
Visual Flight Rules and Instrument Flight Rules navigation and are sold primarily to retail outlets and certain aircraft
manufacturers.
Since our first products were delivered in 1991, we have generated positive income from operations each
year and have funded our growth from these profits. Our sales have increased at a compounded annual growth
rate of 11% since 2006 and our net income has increased at a compounded annual growth rate of 3% since 2006.
The vast majority of this growth has been organic; only a very small amount of new revenue occurred as a result of
the acquisition of Dynastream Innovations Inc. in 2006, Digital Cyclone, Inc. and the assets of Nautamatic Marine
Systems, Inc. in 2007, eleven European distributors between 2007 and 2010, and MetriGear, Inc. in 2010. These
acquisitions had no significant impact on net income for those years.
Since our principal locations are in the United States, Taiwan and the U.K., we experience some foreign
currency fluctuations in our operating results. The table below provides a listing of our functional currency by
subsidiary excluding the European subsidiaries that utilize the Euro.