Garmin 2010 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2010 Garmin annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

79
In the normal course of business, the Company and its subsidiaries are parties to various legal claims,
actions, and complaints, including matters involving patent infringement and other intellectual property claims and
various other risks. It is not possible to predict with certainty whether or not the Company and its subsidiaries will
ultimately be successful in any of these legal matters, or if not, what the impact might be. However, the
Copas aageet does ot epet that the esults i a of these legal poeedigs ill hae a ateial
adese effet o the Copas esults of opeatios, fiaial positio or cash flows.
5. Employee Benefit Plans
GII sponsors a defined contribution employee retirement plan under which its employees may contribute
up to 50% of their annual compensation subject to Internal Revenue Code maximum limitations and to which GII
otiutes a speified peetage of eah patiipats aual opesatio up to etai liits as defied i the
Plan. Additionally, GEL has a defined contribution plan under which its employees may contribute up to 7.5% of
their annual compensation. Both GII and GEL contribute an amount determined annually at the discretion of the
Board of Directors. During the years ended December 25, 2010, December 26, 2009, and December 27, 2008,
expense related to these plans of $17,952, $16,399, and $14,927 was charged to operations.
Cetai of the Copas foeig susidiaies patiipate i loal defied eefit pesio plas.
Contributions are calculated by formulas that consider final pensionable salaries. Neither obligations nor
contributions for the years ended December 25, 2010, December 26, 2009, and December 27, 2008, were
significant.
6. Income Taxes
The Copas ioe ta poisio eefit osists of the folloig:
December 25, December 26, December 27,
2010 2009 2008
Federal:
Current ($46,674) $104,186 $90,655
Deferred 284 (12,021) 23,639
(46,390) 92,165 114,294
State:
Current 3,929 5,381 1,318
Deferred (257) (947) 1,090
3,672 4,434 2,408
Foreign:
Current 31,109 18,469 44,279
Deferred 4,278 (10,367) 20,537
35,387 8,102 64,816
Total ($7,331) $104,701 $181,518
Fiscal Year Ended
The income tax provision differs from the amount computed by applying the statutory federal income tax
rate to income before taxes. The sources and tax effects of the differences, including the impact of establishing tax
contingency accruals, are as follows: