Garmin 2010 Annual Report Download - page 82

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70
Buildings and improvements 39
Office furniture and equipment 3-5
Manufacturing and engineering equipment 5
Vehicles 5
Long-Lived Assets
As required by the Property, Plant and Equipment topic of the FASB ASC, the Company reviews long-lived
assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may
not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the
undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is
based on the carrying amount of the asset at the date it is tested for recoverability. An impairment loss is
measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value.
The Intangibles – Goodwill and Other topic of the FASB ASC requires that goodwill and intangible assets
with indefinite useful lives should not be amortized but rather be tested for impairment at least annually or sooner
whenever events or changes in circumstances indicate that they may be impaired. The Company did not recognize
any goodwill or intangible asset impairment charges in 2010, 2009, or 2008. The Company established reporting
units based on its current reporting structure. For purposes of testing goodwill for impairment, goodwill has been
allocated to these reporting units to the extent it relates to each reporting unit. The accounting guidance also
requires that intangible assets with definite lives be amortized over their estimated useful lives and reviewed for
impairment. The Company is currently amortizing its acquired intangible assets with definite lives over periods
ranging from 3 to 10 years.
Dividends
On March 16, 2010 the Board of Directors declared a dividend of $1.50 per share to be paid on April 30,
2010 to shareholders of record on April 15, 2010. The Company paid out a dividend in the amount of $298,853.
The dividend has been reported as a reduction of retained earnings.
On July 30, 2009 the Board of Directors declared a dividend of $0.75 per share to be paid on December
15, 2009 to shareholders of record on December 1, 2009. The Company paid out a dividend in the amount of
$149,846. The dividend has been reported as a reduction of retained earnings.
On June 6, 2008 the Board of Directors declared a dividend of $0.75 per share to be paid on December 15,
2008 to shareholders of record on December 1, 2008. The Company paid out a dividend in the amount of
$150,251. The dividend has been reported as a reduction of retained earnings.
Approximately $213,486 and $199,549 of retained earnings are indefinitely restricted from distribution to
stockholders pursuant to the laws of Taiwan at December 25, 2010 and December 26, 2009, respectively.
Intangible Assets
At December 25, 2010 and December 26, 2009, the Company had patents, license agreements, customer
related intangibles and other identifiable finite-lived intangible assets recorded at a cost of $152,138 and
$165,021, espetiel. The Copas eess puhase ost oe fair value of net assets acquired (goodwill) was
$136,548 at December 25, 2010 and $129,066 at December 26, 2009.
Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line
basis over three to ten years. Accumulated amortization was $103,534 and $80,428 at December 25, 2010 and
December 26, 2009 respectively. Amortization expense was $36,675, $37,444, and $30,874, for the years ended
December 25, 2010, December 26, 2009, and December 27, 2008, respectively. In the next five years, the
amortization expense is estimated to be $24,889, $10,584, $4,612, $2,482, and $2,317, respectively.