Garmin 2010 Annual Report Download - page 69

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59
dividend was increased to $1.50 per share. Stock repurchases are made at the discretion of management under
repurchase programs approved by the Board of Directors as business and market conditions warrant. In 2010,
2009 and 2008, the Company repurchased 7.4 million shares, 0.7 million shares and 17.1 million shares,
respectively.
We currently use cash flow from operations to fund our capital expenditures, to support our working
capital requirements, to pay dividends and to repurchase shares. We expect that future cash requirements will
principally be for capital expenditures, working capital, repurchase of shares, payment of dividends declared, and
the funding of strategic acquisitions.
We believe that our existing cash balances and cash flow from operations will be sufficient to meet our
projected capital expenditures, working capital and other cash requirements at least through the end of fiscal
2011.
Contractual Obligations and Commercial Commitments
Future commitments of Garmin, as of December 25, 2010, aggregated by type of contractual obligation,
are:
Payments due by period
Less than More than
Contractual Obligations Total 1 year 1-3 years 3-5 years 5 years
Operating Leases $44,920 $10,397 $17,737 $12,205 $4,581
Operating leases describes lease obligations associated with Garmin facilities located in the U.S., Taiwan,
Europe, and Canada.
We may be required to make significant cash outlays related to unrecognized tax benefits. However, due
to the uncertainty of the timing of future cash flows associated with our unrecognized tax benefits, we are unable
to make reasonably reliable estimates of the period of cash settlement, if any, with the respective taxing
authorities. Accordingly, unrecognized tax benefits of $153.6 million as of December 25, 2010, have been
excluded from the contractual obligations table above. For further information related to unrecognized tax
benefits, see Note 2, Ioe Taes, to the osolidated fiaial stateets iluded i this Repot.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Sensitivity
We have market risk primarily in connection with the pricing of our products and services and the
purchase of raw materials. Product pricing and raw materials costs are both significantly influenced by
semiconductor market conditions. Historically, during cyclical industry downturns, we have been able to offset
pricing declines for our products through a combination of improved product mix and success in obtaining price
reductions in raw materials costs.