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Garmin reports fourth quarter results

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Company reports record results and proposes dividend increase

Garmin® Ltd. (NASDAQ: GRMN), today announced results for the fourth quarter and fiscal year ended December 26, 2020.

Highlights for fourth quarter 2020 include:

  • Total revenue of $1.35 billion, a 23% increase over the prior year quarter, led by robust growth in the marine, fitness and outdoor segments

  • Gross margin of 58.5% compared to 58.0% in the prior year quarter

  • Operating margin improved to 27.5% compared to 25.1% in the prior year quarter

  • Operating income of $371 million, increasing 34% over the prior year quarter

  • GAAP EPS was $1.73 and pro forma EPS(1) was $1.73, representing 34% growth in pro forma EPS over the prior year quarter

  • Added pregnancy tracking to Garmin Connect, providing innovative new tools to women who want to remain fit and healthy during pregnancy

  • Expanded our reach in the recreational diving market with the launch of the new Descent® Mk2i, our first dive watch featuring air integration in combination with the T1 tank transmitter

  • Garmin Autoland was named one of 2020’s greatest innovations by Popular Science and won a Top Flight Award from Aviation International News

  • Recently announced the acquisition of substantially all the assets of GEOS Worldwide Limited, a leading provider of emergency monitoring and response services for customers around the globe

Highlights for fiscal year 2020 include:

  • Fifth consecutive year of revenue and operating income growth

  • Record consolidated revenue of $4.19 billion, an 11% increase

  • Gross margin of 59.3% compared to 59.5% in the prior year

  • Operating margin of 25.2% consistent with the prior year

  • Record operating income of $1.05 billion, increasing 11% over the prior year

  • GAAP EPS was $5.17 and pro forma EPS(1) was $5.14, representing 16% growth over the prior year pro forma EPS

(in thousands, except per share data)

13-Weeks Ended

52-Weeks Ended

December 26,

December 28,

YoY

December 26,

December 28,

YoY

2020

2019

Change

2020

2019

Change

Net sales

$

1,351,405

$

1,102,233

23

%

$

4,186,573

$

3,757,505

11

%

Fitness

470,811

372,520

26

%

1,317,498

1,047,527

26

%

Outdoor

411,935

294,819

40

%

1,128,081

917,567

23

%

Aviation

156,969

193,143

(19

)%

622,820

735,458

(15

)%

Marine

171,579

115,779

48

%

657,848

508,850

29

%

Auto

140,111

125,972

11

%

460,326

548,103

(16

)%

Gross margin %

58.5

%

58.0

%

59.3

%

59.5

%

Operating income %

27.5

%

25.1

%

25.2

%

25.2

%

GAAP diluted EPS

$1.73

$1.89

(8

)%

$5.17

$4.99

4

%

Pro forma diluted EPS (1)

$1.73

$1.29

34

%

$5.14

$4.45

16

%

(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma diluted EPS

Executive Overview from Cliff Pemble, President and Chief Executive Officer:

"In a year filled with unimaginable challenges, Garmin delivered record revenue and profits," said Cliff Pemble, President and CEO of Garmin. "Strong demand for active lifestyle products fueled our growth, and we expect these trends to continue into 2021. I am very proud of what we have accomplished in 2020 and look forward to the opportunities and challenges of the new year."

Fitness:

Revenue from the fitness segment grew 26% in the fourth quarter driven by strong demand for advanced wearables and cycling products. Gross margin and operating margin were 53% and 27%, respectively, resulting in 75% operating income growth. During the quarter, we launched the Tacx Boost, a powerful indoor trainer that is easy-to-use and features a magnetic brake, realistic ride-feel and manual resistance control for cyclists of all levels.

Outdoor:

Revenue from the outdoor segment grew 40% in the fourth quarter across all categories led by strong demand for adventure watches. Gross margin and operating margin were 66% and 43%, respectively, resulting in 55% operating income growth. During the quarter, we launched the Mk2i dive watch and T1 tank transmitter adding air integration to our growing lineup of dive electronics.

Aviation:

Revenue from the aviation segment declined 19% in the fourth quarter due to fewer shipments to OEM customers and reduced contributions from ADS-B products. Gross margin and operating margin were 73% and 21%, respectively. During the quarter, we introduced smart rudder bias technology into GFC 600 autopilot systems for select twin engine aircraft, providing control assistance to the pilot in the event of an engine failure.

Marine:

Revenue from the marine segment grew 48% in the fourth quarter across multiple categories led by chartplotters. Gross margin and operating margin were 56% and 24%, respectively, resulting in 92% operating income growth. We recently updated our mid-range GPSMAP chartplotter series with higher resolution displays and more processing power, and we launched the all new StrikerTM Vivid series with enhanced color depth in an entry level fishfinder.

Auto:

Revenue from the auto segment grew 11% during the fourth quarter primarily driven by OEM programs and growth in consumer specialty categories. Gross margin was 42%, and we recorded an operating loss of $12 million in the quarter driven by investments in OEM programs. We recently introduced the new RV 1090 GPS navigator with a new 10-inch high resolution touchscreen display, which further expands our reach in the growing market for recreational vehicles.

Additional Financial Information:

Total operating expenses in the fourth quarter were $420 million, a 16% increase over the prior year. Research and development increased by 23%, primarily due to engineering personnel costs and other expenses related to auto OEM programs. Selling, general and administrative expenses increased 15%, driven primarily by information technology costs and personnel related expenses. Advertising decreased 2%.

The effective tax rate in the fourth quarter was 14.8%. Excluding $11 million of income tax expense due to the revaluation of certain Switzerland deferred tax assets associated with Switzerland tax reform, our pro forma effective tax rate(1) in the fourth quarter of 2020 was 12.0% compared to 15.5% in the prior year quarter. The decrease in the pro forma effective tax rate is primarily due to the migration of intellectual property ownership from Switzerland to the United States.

In the fourth quarter of 2020, we generated approximately $387 million of free cash flow(1), and paid a quarterly dividend of approximately $117 million. We ended the quarter with cash and marketable securities of approximately $2.98 billion.

(1)

See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma effective tax rate and free cash flow.

2021 Guidance (2):

We expect full year 2021 revenue of approximately $4.6 billion with growth in all segments. We expect our full year pro forma EPS to be approximately $5.15 based upon gross margin of approximately 59.2%, operating margin of approximately 23.5% and a full year pro forma effective tax rate of approximately 10.5%.

2021 Guidance

Segment

2021 Revenue
Growth Estimates

Revenue

~$4.6B

Fitness

~10%

Gross Margin

~59.2%

Outdoor

~10%

Operating Margin

~23.5%

Aviation

~5%

Pro forma Tax Rate

~10.5%

Marine

~15%

Pro forma EPS

~$5.15

Auto

~5%

(2)

See attached discussion on Forward-looking Financial Measures

Dividend Recommendation:

The board of directors intends to recommend to the shareholders for approval at the annual meeting to be held on June 4, 2021, a cash dividend in the amount of $2.68 per share (subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting), payable in four equal installments on dates to be determined by the board. The board currently anticipates the scheduling of the dividend in four installments as follows:

Dividend Date

Record Date

$s per share

June 30, 2021

June 15, 2021

$0.67

September 30, 2021

September 15, 2021

$0.67

December 31, 2021

December 15, 2021

$0.67

March 31, 2022

March 15, 2022

$0.67

In addition, the board has established March 31, 2021 as the payment date and March 15, 2021 as the record date for the final dividend installment of $0.61 per share, per the prior approval at the 2020 annual shareholders’ meeting. The first, second and third payments of $0.61 per share were made on June 30, 2020, September 30, 2020, and December 31, 2020, respectively.

Webcast Information/Forward-Looking Statements:

The information for Garmin Ltd.’s earnings call is as follows:

When:

Wednesday, February 17, 2021 at 10:30 a.m. Eastern

Where:

https://www.garmin.com/en-US/investors/events/

How:

Simply log on to the web at the address above or call to listen in at 855-757-3897

An archive of the live webcast will be available until February 16, 2022 on the Garmin website at www.garmin.com. To access the replay, click on the Investors link and click over to the Events Calendar page.

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as "anticipates," "would," "may," "expects," "estimates," "plans," "intends," "projects," and other words or phrases with similar meanings. Any statements regarding the Company’s expected fiscal 2021 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, potential future acquisitions, currency movements, expenses, pricing, new products launches, statements relating to possible future dividends, statements related to the ongoing impact of the COVID-19 pandemic, and the Company’s plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 26, 2020 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2020 Form 10-K can be downloaded from https://www.garmin.com/en-US/investors/sec/. All information provided in this release and in the attachments is as of December 26, 2020. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.

Garmin, the Garmin logo, the Garmin delta, Descent and Tacx are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Garmin SubWave, and Striker, are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved

Garmin Ltd. And Subsidiaries

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share information)

13-Weeks Ended

52-Weeks Ended

December 26,

December 28,

December 26,

December 28,

2020

2019

2020

2019

Net sales

$

1,351,405

$

1,102,233

$

4,186,573

$

3,757,505

Cost of goods sold

560,422

462,777

1,705,237

1,523,529

Gross profit

790,983

639,456

2,481,336

2,233,976

Advertising expense

61,135

62,648

151,166

164,456

Selling, general and administrative expense

158,910

138,280

570,245

518,568

Research and development expense

199,672

162,005

705,685

605,366

Total operating expense

419,717

362,933

1,427,096

1,288,390

Operating income

371,266

276,523

1,054,240

945,586

Other income (expense):

Interest income

6,744

13,069

37,002

52,817

Foreign currency gains (losses)

12,627

(4,230

)

2,825

(16,799

)

Other income

828

2,051

9,343

5,618

Total other income (expense)

20,199

10,890

49,170

41,636

391,465

287,413

1,103,410

987,222

...

Income tax provision (benefit)

57,918

(73,379

)

111,086

34,736

Net income

$

333,547

$

360,792

$

992,324

$

952,486

Net income per share:

Basic

$

1.74

$

1.90

$

5.19

$

5.01

Diluted

$

1.73

$

1.89

$

5.17

$

4.99

Weighted average common shares outstanding:

Basic

191,278

190,165

191,085

189,931

Diluted

192,303

191,225

191,895

190,899

Garmin Ltd. And Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except per share information)

December 26,
2020

December 28,
2019

Assets

Current assets:

Cash and cash equivalents

$

1,458,442

$

1,027,567

Marketable securities

387,642

376,463

Accounts receivable, net

849,469

706,763

Inventories

762,084

752,908

Deferred costs

20,145

25,105

Prepaid expenses and other current assets

191,569

169,044

Total current assets

3,669,351

3,057,850

Property and equipment, net

855,539

728,921

Operating lease right-of-use assets

94,626

63,589

Restricted cash

306

71

Marketable securities

1,131,175

1,205,475

Deferred income taxes

245,455

268,518

Noncurrent deferred costs

16,510

23,493

Intangible assets, net

828,566

659,629

Other assets

189,845

159,253

Total assets

$

7,031,373

$

6,166,799

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

258,885

$

240,831

Salaries and benefits payable

181,937

128,426

Accrued warranty costs

42,643

39,758

Accrued sales program costs

109,891

112,578

Deferred revenue

86,865

94,562

Accrued advertising expense

31,950

35,142

Other accrued expenses

149,817

110,461

Income taxes payable

68,585

56,913

Dividend payable

233,644

217,262

Total current liabilities

1,164,217

1,035,933

Deferred income taxes

116,844

114,754

Noncurrent income taxes

92,810

105,771

Noncurrent deferred revenue

49,934

67,329

Noncurrent operating lease liabilities

75,958

49,238

Other liabilities

15,494

278

Stockholders’ equity:

Shares, CHF 0.10 par value, 198,077 shares authorized and issued, 191,571
shares outstanding at December 26, 2020; and 190,686 shares outstanding
at December 28, 2019

17,979

17,979

Additional paid-in capital

1,880,354

1,835,622

Treasury stock

(320,016

)

(345,040

)

Retained earnings

3,754,372

3,229,061

Accumulated other comprehensive income

183,427

55,874

Total stockholders’ equity

5,516,116

4,793,496

Total liabilities and stockholders’ equity

$

7,031,373

$

6,166,799

Garmin Ltd. And Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

52-Weeks Ended

December 26,
2020

December 28,
2019

Operating Activities:

Net income

$

992,324

$

952,486

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

78,121

71,921

Amortization

48,594

34,254

Gain on sale of property and equipment

(1,799

)

(233

)

Unrealized foreign currency (gains) losses

(9,873

)

18,663

Deferred income taxes

6,931

(88,358

)

Stock compensation expense

80,885

63,400

Realized (gains) losses on marketable securities

(1,392

)

(799

)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable, net of allowance for doubtful accounts

(108,859

)

(123,401

)

Inventories

28,726

(170,169

)

Other current and non-current assets

(33,690

)

(86,073

)

Accounts payable

1,447

26,192

Other current and non-current liabilities

87,761

36,660

Deferred revenue

(25,211

)

(11,032

)

Deferred costs

11,973

9,335

Income taxes payable

(20,671

)

(34,297

)

Net cash provided by operating activities

1,135,267

698,549

Investing activities:

Purchases of property and equipment

(185,401

)

(118,031

)

Proceeds from sale of property and equipment

1,977

529

Purchase of intangible assets

(2,065

)

(2,377

)

Purchase of marketable securities

(1,052,640

)

(789,352

)

Redemption of marketable securities

1,126,253

758,774

Acquisitions, net of cash acquired

(148,648

)

(300,289

)

Net cash used in investing activities

(260,524

)

(450,746

)

Financing activities:

Dividends

(450,631

)

(417,264

)

Proceeds from issuance of treasury stock related to equity awards

15,201

27,122

Purchase of treasury stock related to equity awards

(26,330

)

(25,886

)

Net cash used in financing activities

(461,760

)

(416,028

)

Effect of exchange rate changes on cash and cash equivalents

18,127

(5,942

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

431,110

(174,167

)

Cash, cash equivalents, and restricted cash at beginning of year

1,027,638

1,201,805

Cash, cash equivalents, and restricted cash at end of year

$

1,458,748

$

1,027,638

The following table includes supplemental financial information for the consumer auto and auto OEM operating segments that management believes is useful.

Garmin Ltd. And Subsidiaries

Net Sales, Gross Profit and Operating Income by Segment (Unaudited)

(In thousands)

Auto

Fitness

Outdoor

Aviation

Marine

Total
Auto

Consumer
Auto

Auto
OEM

Total

13-Weeks Ended December 26, 2020

Net sales

$

470,811

$

411,935

$

156,969

$

171,579

$

140,111

$

78,552

$

61,559

$

1,351,405

Gross profit

250,603

270,627

114,237

96,347

59,169

41,516

17,653

790,983

Operating income

128,809

179,028

33,718

41,530

(11,819

)

15,836

(27,655

)

371,266

13-Weeks Ended December 28, 2019

Net sales

$

372,520

$

294,819

$

193,143

$

115,779

$

125,972

$

88,868

$

37,104

$

1,102,233

Gross profit

179,799

194,601

137,537

68,935

58,584

41,945

16,639

639,456

Operating income

73,490

115,701

62,778

21,663

2,891

14,788

(11,897

)

276,523

52-Weeks Ended December 26, 2020

Net sales

$

1,317,498

$

1,128,081

$

622,820

$

657,848

$

460,326

$

275,493

$

184,833

$

4,186,573

Gross profit

697,539

739,777

453,008

384,450

206,562

139,864

66,698

2,481,336

Operating income

318,884

441,085

137,203

175,724

(18,656

)

41,464

(60,120

)

1,054,240

52-Weeks Ended December 28, 2019

Net sales

$

1,047,527

$

917,567

$

735,458

$

508,850

$

548,103

$

365,511

$

182,592

$

3,757,505

Gross profit

532,604

598,443

543,385

302,949

256,595

172,218

84,377

2,233,976

Operating income

191,858

334,041

252,943

109,876

56,868

63,299

(6,431

)

945,586

Garmin Ltd. And Subsidiaries

Net Sales by Geography (Unaudited)

(In thousands)

13-Weeks Ended

52-Weeks Ended

December 26,

December 28,

YoY

December 26,

December 28,

YoY

2020

2019

Change

2020

2019

Change

Net sales

$

1,351,405

$

1,102,233

23%

$

4,186,573

$

3,757,505

11%

Americas

595,720

528,362

13%

1,968,080

1,817,770

8%

EMEA

536,822

407,908

32%

1,579,749

1,350,533

17%

APAC

218,863

165,963

32%

638,744

589,202

8%

EMEA - Europe, Middle East and Africa

APAC - Asia Pacific and Australian Continent

Non-GAAP Financial Information

To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below.

The tables below provide reconciliations between the GAAP and non-GAAP measures.

Pro forma effective tax rate

The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes disclosure of the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods.

Garmin Ltd. And Subsidiaries

Pro Forma Effective Tax Rate

(In thousands, except effective tax rate (ETR) information)

13-Weeks Ended

52-Weeks Ended

December 26,

December 28,

December 26,

December 28,

2020

2019

2020

2019

$

ETR(1)

$

ETR(1)

$

ETR(1)

$

ETR(1)

U.S GAAP income tax provision (benefit)

$

57,918

14.8%

$

(73,379

)

(25.5)%

$

111,086

10.1%

$

34,736

3.5%

Pro forma discrete tax items:

Uncertain Tax Reserve Release (2)

14,308

Switzerland deferred tax assets (3)

(11,016

)

117,989

(11,016

)

117,989

Pro forma income tax provision

$

46,902

12.0%

$

44,610

15.5%

$

114,378

10.4%

$

152,725

15.5%

(1) Effective tax rate is calculated by taking the income tax provision divided by income before taxes, as presented on the face of the Condensed Consolidated Statements of Income.

(2) In second quarter 2020, the Company recognized a $14.3 million income tax benefit due to the release of uncertain tax position reserves associated with the 2014 intercompany restructuring, which was a pro forma adjustment in 2014. The impact of the reserve release is not reflective of income tax expense incurred as a result of current period earnings and therefore affects period-to-period comparability.

(3) In fourth quarter 2019, a $118 million income tax benefit was recognized resulting from the revaluation and step-up of certain Switzerland deferred tax assets as a result of the enactment of Switzerland Federal and Schaffhausen cantonal tax reform and related transitional measures. In fourth quarter 2020, certain Switzerland deferred tax assets related to the Switzerland tax reform transitional measures were revalued resulting in an $11 million income tax expense. The impact of the revaluation of these Switzerland deferred tax assets is not reflective of income tax expense incurred as a result of current period earnings and therefore affects period-to-period comparability.

The net release of other uncertain tax position reserves, amounting to approximately $31.1 million and $28.9 million in the 52 weeks ended December 26, 2020 and December 28, 2019, respectively, have not been identified as pro forma adjustments as such items tend to be more recurring in nature.

Pro forma net income (earnings) per share

Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company’s performance between periods.

Garmin Ltd. And Subsidiaries

Pro Forma Net Income (Earnings) Per Share

(In thousands, except per share information)

13-Weeks Ended

52-Weeks Ended

December 26,

December 28,

December 26,

December 28,

2020

2019

2020

2019

GAAP net income

$

333,547

$

360,792

$

992,324

$

952,486

Foreign currency gains / losses (1)

(12,627

)

4,230

(2,825

)

16,799

Tax effect of foreign currency gains / losses (2)

1,513

(657

)

293

(2,599

)

Pro forma discrete tax items (3)

11,016

(117,989

)

(3,292

)

(117,989

)

Pro forma net income

$

333,449

$

246,376

$

986,500

$

848,697

GAAP net income per share:

Basic

$

1.74

$

1.90

$

5.19

$

5.01

Diluted

$

1.73

$

1.89

$

5.17

$

4.99

Pro forma net income per share:

Basic

$

1.74

$

1.30

$

5.16

$

4.47

Diluted

$

1.73

$

1.29

$

5.14

$

4.45

Weighted average common shares outstanding:

Basic

191,278

190,165

191,085

189,931

Diluted

192,303

191,225

191,895

190,899

(1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at a given legal entity. However, there is minimal cash impact from such foreign currency gains and losses.

(2) The tax effect of foreign currency gains and losses was calculated using the pro forma effective tax rate of 12.0% and 10.4% for the 13-weeks and fiscal year ended December 26, 2020, respectively, and the pro forma effective tax rate of 15.5% for the 13-weeks and fiscal year ended December 28, 2019.

(3) The 2019 and 2020 discrete tax items are discussed in the pro forma effective tax rate section above.

Free cash flow

Management believes that free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and equipment. Management believes that excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company’s operations and allows more accurate comparisons of the Company’s results between periods. This metric may also be useful to investors, but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities.

Garmin Ltd. And Subsidiaries

Free Cash Flow

(In thousands)

13-Weeks Ended

52-Weeks Ended

December 26,

December 28,

December 26,

December 28,

2020

2019

2020

2019

Net cash provided by operating activities

$

435,818

$

234,379

$

1,135,267

$

698,549

Less: purchases of property and equipment

(48,329

)

(26,562

)

(185,401

)

(118,031

)

Free Cash Flow

$

387,489

$

207,817

$

949,866

$

580,518

Forward-looking Financial Measures

The forward-looking financial measures in our 2021 guidance provided above do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculating the non-GAAP measures described above.

The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was $0.01 per share for the 52-weeks ended December 26, 2020.

At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2021 or anticipate the impact of any other events that may be considered in the calculation of non-GAAP financial measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210217005304/en/

Contacts

Investor Relations Contact:
Teri Seck
913/397-8200
investor.relations@garmin.com

Media Relations Contact:
Carly Hysell
913/397-8200
media.relations@garmin.com