Garmin 2010 Annual Report Download - page 80

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GARMIN LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and Per Share Information)
December 25, 2010 and December 26, 2009
1. Description of the Business
Gai Ltd. ad susidiaies togethe, the Copa aufatue, aket, ad distiute Gloal
Positioning System-enabled products and other related products. Garmin Corporation (GC), wholly-owned by
Gai Ltd., is piail esposile fo the aufatuig ad distiutio of the Copas poduts to Gai
International, Inc. (GII), a wholly-owned subsidiary of GC, and Garmin (Europe) Limited (GEL), a wholly-owned
subsidiary of Garmin Ltd., and, to a lesser extent, new product development and sales and marketing of the
Copas poduts i Asia ad the Fa East. GII is piail esposile fo sales ad aketig of the Copas
products in many international markets and in the United States as well as research and new product
deelopet. GII also aufatues etai poduts fo the Copas aiatio seget. GEL is esposile fo
sales ad aketig of the Copas poduts, piipall ithi the Euopea aket.
2. Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States. The accompanying consolidated financial statements reflect the
accounts of Garmin Ltd. and its wholly owned subsidiaries. All significant inter-company balances and transactions
have been eliminated.
Fiscal Year
The Company has adopted a 52–53-week period ending on the last Saturday of the calendar year. Due to
the fact that there are not exactly 52 weeks in a calendar year and there is slightly more than one additional day
per year (not including the effects of leap year) in each calendar year as compared to a 52-week fiscal year, the
Company will have a fiscal year comprising 53 weeks in certain fiscal years, as determined by when the last
Saturday of the calendar year occurs.
In those resulting fiscal years that have 53 weeks, the Company will record an extra week of sales, costs,
and related financial activity. Therefore, the financial results of those fiscal years, and the associated 14-week
fourth quarter, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the
associated quarters having only 13 weeks. Fiscal 2010, 2009, and 2008 included 52 weeks.
Foreign Currency Translation
Many Garmin Ltd. subsidiaries utilize currencies other than the United States Dollar (USD) as their
functional currency. As required by the Foreign Currency Matters topic of the Financial Accounting Standards
Board (FASB) Accounting Standards Codification (ASC), the financial statements of these subsidiaries for all periods
presented have been translated into USD, the functional currency of Garmin Ltd., and the reporting currency
herein, for purposes of consolidation at rates prevailing during the year for sales, costs, and expenses and at end-
of-year rates for all assets and liabilities. The effect of this translation is recorded in a separate component of
stokholdes euit. Cuulatie taslatio adjustets of $61,740 and $9,231 as of December 25, 2010 and
December 26, 2009, respectively, have been included in accumulated other comprehensive gain/(loss) in the
accompanying consolidated balance sheets.