🆙 Quelle assurance – 10-K GARMIN LTD Formulaire: 29 décembre

By | février 20, 2019




















Vous serez averti immédiatement lorsque des nouvelles concernant votre stock s'effondrent. Demander un essai gratuit de 2 semaines pour StreetInsider Premium ici.


UNITED
ÉTATS

TITRES
ET COMITE D'ADRESSE

Washington,
No. 20549 D

FORMULAIRE
K-10

ANNÉE
Rapport en vertu de l'article 13 ou de l'article 10 de la Securities Exchange Act of 1934

Vous comprenez, parce que, parce que
exercice clos le 29 décembre 2018

ou

TRANSITION
Rapport en vertu de l'article 13 ou de l'article 10 de la Securities Exchange Act of 1934

Vous comprenez, parce que, parce que
la période de transition entre le _______ et le _______

commission
numéro de fichier est 0-31983

GARMIN
LTD.

(Corriger
nom du titulaire tel que spécifié dans la charte)

(Logo)

Suisse

(Statut
ou autre juridiction

Ils le font, jusqu'à
entreprise ou organisation)

98-0229227

(I.R.S.
Numéro d'identification de l'employeur)

Mühlentalstrasse
2

8200
Schaffhouse

Suisse

(Adresse
principaux bureaux exécutifs)

N / A

(Code postal
code)

inscription
numéro de téléphone, y compris l'indicatif régional: +41 52 630 1600

titres
enregistré en vertu de l’alinéa 12 b) de la Loi:

inscrit
Actions d'une valeur nominale de CHF 0.10 par action
la
Nasdaq Stock Market, LLC
(Titre de chaque classe) (Le nom de chaque
lequel est enregistré)

titres
enregistré en vertu de l’alinéa g) de l’article 12: Aucun d'eux

Utilisez une coche pour indiquer si la personne inscrite est un émetteur expérimenté notoire au sens de la règle 405 de la Loi sur les valeurs mobilières. OUI
NON ☐

indiquer
si l'inscrit n'a pas à soumettre de rapport en vertu de l'article 13 ou de l'alinéa 15d) de la Loi. OUI ☐ NON ☑

indiquer
si l'inscrit (1) a soumis tous les rapports requis aux termes de l'article 13 ou de l'article 15 (d) de la garantie
Exchange Act de 1934 pour les 12 mois précédents (ou toute période plus courte imposée au déclarant)
ces rapports) et (2) ont été soumis à de telles obligations de déclaration au cours des 90 derniers jours. OUI ☑ NON ☐

indiquer
si le déclarant a soumis par voie électronique tous les fichiers de données interactifs à soumettre
La règle 405 du règlement S-T (§ 232 405 du présent chapitre) au cours des 12 derniers mois (ou une période plus courte qui
le déclarant était tenu de soumettre ces fichiers). OUI ☑ NON ☐

indiquer
si la divulgation de documents en retard en vertu de l'article 405 de l'ordonnance S-K (§ 229.405 de celle-ci)
n'est pas répertorié ici et, à la connaissance du déclarant, n'est pas inclus dans l'autorisation finale.
ou la partie III du formulaire 10-K. ou toute modification à celle-ci
Formulaire 10-K.

indiquer
case à cocher indiquant que le déclarant est un grand accélérateur, un éditeur de fichier accéléré, un non-accélérateur, un rapport plus petit
entreprise ou entreprise en croissance émergente. Voir les définitions de "fichier accéléré volumineux", "fichier accéléré",
Les «petites sociétés déclarantes» et les «sociétés à croissance émergente» sont énumérées à la section 12b-2 de la loi intitulée Exchange Act. Par règlement.

Grand accélérateur accéléré Classement accéléré ☐
Non accéléré Filer ☐ Petite entreprise déclarante
Société de croissance émergente

ha
une entreprise en croissance émergente, cochez cette case si le déclarant a décidé de ne pas utiliser la période de transition prolongée
est conforme aux normes de comptabilité financière nouvelles ou révisées présentées en vertu de l’article 13 a) de la Loi sur les échanges. ☐

indiquer
en vérifiant que le bureau d'enregistrement est une société écran (conformément à la règle 12b-2 de la loi intitulée Exchange Act).

OUI
☐ NON

additif
la valeur de marché des actions ordinaires des sociétés non liées de la personne inscrite au 30 juin 2018 (un
les actions ordinaires de la personne inscrite à la Bourse de Nasdaq au 29 juin 2018) s’élevaient à 7 753 502 173 dollars.

nombre
Actions de l'inscrit en circulation le 15 février 2019:

inscrit
Actions, valeur nominale CHF 0,10 – 198 077 418 (actions propres)

documents
construit avec référence:

Certaines parties
Les documents décrits ci-dessous sont incorporés par référence dans le formulaire III du formulaire 10-K. partie:

document Une partie de la forme 10-K
que nous avons construit
La dernière déclaration d’autorisation de la société est
L’Assemblée générale 2019, qui sera soumise au plus tard 120 jours après décembre
2018e
III. partie

Garmin
Ltd.

2018
Rapport annuel 10-K

table
le contenu

AVERTISSEMENT
DECLARATION CONCERNANT LES NOTES VARIABLES

la
les discussions présentées dans le rapport annuel sur formulaire 10-K incluent des déclarations sur des événements futurs possibles. Une telle prospective
Les états financiers sont basés sur les hypothèses formulées par la direction de la Société à la date du rapport annuel, ainsi que sur les hypothèses
risques et incertitudes de la société. En outre, la direction peut faire des déclarations prospectives, oralement ou autrement.
écrits, y compris, sans toutefois s'y limiter, les communiqués de presse, les rapports annuels des actionnaires et le reste de la société.
annonces à la Securities and Exchange Commission. Les lecteurs peuvent identifier ces déclarations prospectives en les utilisant
les verbes comme ils "s'attendent à", "prédisent", "croient", ou des verbes similaires ou des conjugaisons de tels verbes.
Les déclarations prospectives incluent la discussion des tendances et d’autres facteurs qui affectent nos activités et nos résultats futurs
« 7 articles. Rapport de gestion et analyse de la situation financière et des résultats d’exploitation. »Lecteurs
a mis en garde de ne pas se fier indûment à ces déclarations prospectives qui ne parlent que de leur date. Si l'un des membres de la direction
les hypothèses sont incorrectes ou les résultats réels de la société peuvent différer considérablement en cas d'événements imprévus
sur la base de ces déclarations prospectives. Les différences peuvent être causées par plusieurs facteurs ou combinaisons
le nombre de facteurs, y compris, mais sans s'y limiter, ceux de la figure 1A; ("Facteurs de risque"). Les lecteurs sont forts
nous vous encourageons à prendre en compte ces facteurs lors de l’évaluation des déclarations prospectives concernant la société. Sauf si nécessaire
la société ne s'engage pas à mettre à jour ses déclarations prospectives dans son rapport annuel à la lumière d'événements futurs
ou des améliorations.

partie
Je

cette
la réunion de travail de Garmin Ltd. ("Garmin" ou "Société") doit être interprétée dans le contexte de:
et se qualifie comme: "Rapport de gestion de la situation financière et des résultats d'exploitation"
les informations données au paragraphe 7 et en réponse au paragraphe 101 du règlement S-K figurent au paragraphe 7
avec une réponse partielle à cet item. 1. Garmin a identifié cinq segments à signaler à des fins de reporting externe:
voiture, aviation, marine, plein air et fitness. Deux secteurs opérationnels (PND auto et OEM auto) ne sont pas déclarés séparément.
mais sont agrégés dans le segment de rapport automatique. Le PDG de la société a été identifié comme suit:
Chief Operating Decision Maker (CODM), qui alloue les ressources et évalue la performance de chaque segment individuellement.

Garmin
Introduit le 9 février 2010 en Suisse, Garmin Cayman, successeur de la société des îles Caïmanes (Garmin Cayman).
Garmin Cayman a été créée le 24 juillet 2000 en tant que société holding de la société Garmin Corporation de Taiwan afin de
faciliter la vente publique d'actions de Garmin Cayman aux États-Unis. Le 27 juin 2010, Garmin est devenu la société mère ultime.
la société holding du groupe Garmin, par échange d'actions
siège de la société mère ultime du groupe Garmin, des îles Caïmanes à la Suisse (
"Redomestication"). Lors de la réutilisation, toutes les actions ordinaires émises et en circulation de Garmin Cayman ont été transférées.
et chacune des actions ordinaires de Garmin Cayman, d’une valeur nominale de 0,005 USD par action, ont été échangées contre une action ordinaire.
Garmin est évalué à 10 CHF par action. Lors de l’assemblée générale annuelle de la société tenue le 10 juin 2016, la société
les actionnaires ont approuvé l’annulation de 10 000 000 d’actions nominatives détenues par la Société («
Actions) et la valeur nominale de chacune des actions de la Société de 10 CHF à 0,10 CHF et
Statuts pour la mise en œuvre d'une réduction appropriée du capital social. Cette suppression d'actions a réduit les actions autorisées
208 077 418 actions à 198 077 418 actions supplémentaires à 99 038 709 actions conditionnelles
l'exercice des droits d'option accordés aux employés de Garmin ou aux membres du conseil d'administration. Garmin est juste là
indirectement, toutes les sociétés opérationnelles du groupe Garmin.

Garmin
Rapport annuel sur formulaire 10-K, Rapports trimestriels sur formulaire 10-Q, Rapports actuels sur formulaire 8-K, Bulletin de procuration et formulaires 3, 4 et 5
Soumis par les directeurs et les dirigeants de Garmin et toute modification apportée aux rapports sera disponible gratuitement.
dans la section Relations avec les investisseurs du site Web de Garmin (http://www.garmin.com) dès que cela est raisonnablement possible après
ces documents doivent être archivés ou transmis à la Securities and Exchange Commission (SEC) par voie électronique. la
La SEC gère un site Web (http://www.sec.gov) contenant des rapports, des procurations, des déclarations d’information et d’autres informations.
pour les émetteurs qui déposent électroniquement auprès de la SEC.

la
le lien vers le site Web de Garmin n'implique aucune intégration avec ces informations
et ces informations ne doivent pas être prises en compte dans le rapport sur formulaire 10-K.

société
vue d'ensemble

Vous comprenez, parce que, parce que
Garmin Ltd. et ses filiales (collectivement dénommées la "Société") ont été les pionniers d'un nouveau système de positionnement global depuis près de 30 ans
(GPS), appareils et applications sans fil conçus pour les personnes ayant un style de vie actif. Garmin sert
cinq principales unités d’affaires, y compris les unités automobile, aérospatiale, fitness, marine et extérieure. Nous croyons que c’est à travers ces unités d’affaires
Garmin est en mesure de réaliser des synergies en matière d’achat de matières premières, de fabrication, de distribution, de R & D et
efforts de marketing pour bâtir une entreprise plus forte et plus efficace. Garmin conçoit, développe, fabrique, commercialise et commercialise Garmin
une famille diversifiée de produits compatibles avec les appareils de poche, portables, portables et fixes, ainsi que d'autres produits de navigation, de communication et à base de capteurs
et produits d'information. En 2018, Garmin a marqué une étape importante dans la livraison de ses 200 millions de produits depuis sa création.
et a livré plus de 14,9 millions de produits au cours de l’année.

vue d'ensemble
le système de positionnement global

la
Le système de positionnement global (GPS) est un système mondial de navigation par satellite capable de fournir une localisation géographique précise et une localisation géographique.
données pour les récepteurs GPS. Le système se compose de satellites en orbite et fournit une couverture mondiale. Accès au GPS
gratuitement. Les satellites GPS et leurs stations de contrôle et de surveillance au sol a
Département américain de la défense, qui maintient un programme de recharge continue par satellite pour assurer la continuité du système mondial
la couverture.

Garmin
utilise de nombreux autres systèmes mondiaux de navigation par satellite (GNSS), notamment:

japonais
Système d'extension par satellite basé sur MTSAT (MSAS), doté des capacités initiales de routage, de terminal et d'approche
navigation pour le vol du 27 septembre 2007.
la
Service européen de navigation par recouvrement géostationnaire (EGNOS) Vol, sécurité de la vie (SoL), qui a atteint son déploiement initial
capacités de navigation par route, terminal et approche le 2 mars 2011.
la
GLONASS (Global Navigation Satellite System), un système de navigation par satellite basé dans l’espace
exploité par la Fédération de Russie, qui comprend 24 satellites et fournit un service dans le monde entier
la couverture.
la
Système Galileo, un système mondial de navigation par satellite en cours de construction
L’Union européenne et l’Agence spatiale européenne prévoient un total de 30 satellites
(24 pièces de rechange opérationnelles et six pièces de rechange actives), dont 26 actuellement opérationnelles. plein
L'état opérationnel est prévu pour 2020.
la
Système de navigation par satellite BeiDou (BDS), un système de navigation par satellite chinois
D'ici 2020, 35 satellites devraient être en orbite et globaux
la couverture.

Ban ben
combinaison de certains canyons urbains ou de situations de visibilité limitée dans le ciel, plusieurs systèmes mondiaux de navigation par satellite
produire une correction de navigation peut améliorer la précision.

plus
Sur abonnement, certains produits Garmin fournissent un accès au réseau de satellites Iridium, une constellation synchronisée.
Satellites en orbite terrestre basse (LEO) fournissant une couverture mondiale de communication de données. Le réseau Iridium est le seul réseau à s’étendre
dans le monde entier, offrant une couverture mondiale de 100% pour permettre les communications par satellite.

la
La précision et l'utilité du GPS peuvent être améliorées avec des techniques d'augmentation qui calculent le signal et les erreurs de signal
diffuser ces correctifs sur un appareil GPS. La Federal Aviation Administration ("FAA") a développé un vaste domaine
Système d'extension (WAAS), qui comprend des stations de référence de Terre et des satellites supplémentaires pour améliorer la précision du positionnement GPS
env. Il se trouve à 3 mètres des États-Unis et de la majeure partie du Canada et du Mexique. WAAS prend en charge l'utilisation principale du GPS
appareils de navigation par route, terminal et approche aux États-Unis. Il y a aussi la précision accrue fournie par WAAS
améliore l'utilité des récepteurs GPS compatibles WAAS dans les applications grand public.

produits

Garmin
offre une grande variété de segments comme décrit ci-dessous. Garmin considère généralement ses produits
valeur, haute performance, facilité d'utilisation, innovation et ergonomie.

voiture

Garmin propose une large gamme pour le marché automobile. Garmin propose actuellement
pour les clients du monde entier:

personnel
Appareils de navigation (PND) –

DPN
combine un navigateur GPS complet (avec des cartes intégrées) avec une interface utilisateur extrêmement simple et unique de Garmin. Les PND
sous le lecteur Garmin ™, zūmo®, desl ™, RV et Garmin Fleet ™.
La série zūmo offre des fonctionnalités spécifiques à la moto. La série RV offre des fonctionnalités spécifiques au ventilateur de camping-car. Un des
La série offre des services de fret routier tandis que la série Garmin propose une flotte intégrée de suivi et de distribution.
système. Avec sa vaste gamme de produits, Garmin propose des fonctionnalités telles que les grands écrans, les récepteurs de trafic intégrés
mises à jour des cartes, vie quotidienne, noms de rue parlés, navigation à commande vocale, notifications de limitation de vitesse pour éviter le trafic,
assistant de voie avec vues des noeuds PhotoReal (images de haute qualité pour ces prochains noeuds), haut-parleur Bluetooth
capacité, DashCams, alertes d'alerte de conducteur et caméras de sécurité.

Garmin
propose les applications mobiles Garmin Drive ™ et Smartphone Link sur une large gamme de smartphones et de tablettes, notamment
Périphériques compatibles iOS, Android et Windows. Les applications mobiles Drive et Smartphone Link permettent des applications personnelles Garmin compatibles
Navigator pour se connecter à un smartphone compatible. Les informations peuvent être partagées entre votre smartphone et votre navigateur personnel, notamment:
notifications, contacts, résultats de recherche, destination et plus d'espace de stationnement. Services en temps réel tels que le trafic en direct,
météo et stationnement en direct avec des informations utiles et en temps réel sur la conduite.

original
Solutions pour équipementiers (OEM) –

Garmin
a entretenu des relations clés avec de nombreux constructeurs automobiles pour fournir diverses solutions automatisées OEM. ces
des systèmes d'information et de divertissement entièrement intégrés offrant une large gamme de fonctionnalités aux solutions de caméras intégrées,
solutions de navigation intégrées et technologie de positionnement précise. Ils ne supportent pas seulement le système d'infodivertissement 2006
en plus du véhicule, les principales fonctions des systèmes avancés d’aide à la conduite (ADAS).

caméras

Garmin
offres VIRB® caméras d'action qui capturent à 360 degrés à 5,7K / 30fps avec stabilisation d'image numérique,
avec télécommande audio ou sans fil et possibilité de prendre des photos de haute qualité pendant l’enregistrement de votre caméscope.
Les caméras d'action VIRB offrent une connexion Wi-Fi intégrée, des capteurs de données et des récepteurs GPS haute sensibilité pour la vitesse, l'altitude, la force G, le cœur
Vitesse et autres données pour la vidéo via VIRB Edit et VIRB Mobile.

Garmin
Il offre des DashCams compatibles GPS offrant une vidéo de haute qualité, des avertissements de collision et des sections de voie,
et enregistre automatiquement le métrage lorsque des événements de capteur G sont détectés. Les caméras DashCams sont proposées sous forme de caméras autonomes discrètes et compactes
qui peut être monté sur un pare-brise de voiture ou sur certains PND. Garmin propose également des caméras de sécurité sans fil pouvant être utilisées
PND compatibles pour afficher des images de la caméra derrière le véhicule lorsque celui-ci est à l’arrière.

de plein air

Garmin
offre un large éventail d'activités de plein air. Garmin propose actuellement aux consommateurs du monde entier:

de plein air
Ordinateurs de poche –

de plein air
les ordinateurs de poche vont des options de base de navigation par points de route aux dispositifs perfectionnés à écran tactile couleur qui offrent des altimètres barométriques,
Compas 3 axes, appareil photo, lecteur de carte microSD ™ pour cartes personnalisables en option, Bluetooth pour la connexion d'un smartphone, satellite
communication et autres services. Les ordinateurs de poche d'extérieur sont vendus en Oregon®, Rino®, Montana®.
eTrex®, GPSMAP®, Foretrex® et inReach® lignes de production. Toutes les séries
Le groupe de produits est conçu pour servir une variété de prix et de catégories d’activités de niche. Les ordinateurs de poche avec inReach comprennent un satellite mondial
technologie offrant une messagerie texte bidirectionnelle associée à un abonnement actif, S.O.S. capacités et prévisions météorologiques
n'importe où dans le monde.

aventure
Montres –

Garmin
Offre des montres intelligentes améliorées par GPS pour les activités de plein air. Le phénix® La série fournit multisport avancé
randonnée, escalade, ski, course à pied, vélo, natation, yoga, comptage de répétitions, etc. La série Phoenix
offrant une variété d’outils de navigation, une prise en charge des applications tierces avec Connect IQ ™ et des fonctionnalités associées,
et sur certains modèles, la technologie de fréquence cardiaque du poignet Elevate ™. Les séries Phoenix 5 et 5 Plus proposent trois
montres de différentes tailles ainsi que plusieurs QuickFit® les réglages de bande disponibles pour chaque modèle. Le phénix 5
La série Plus a ajouté des cartes de couleurs, le paiement sans contact Garmin Pay ™ et de la musique pendant les trois heures. la
Le Phoenix 5X Plus introduit également le premier matériau portable de Garmin, offrant un oxymètre de pouls au poignet pour la hauteur
sensibilisation à l'adaptation. Le tactix® Charlie fournit des cartes TOPO polychromes pré-installées et d'autres services.
inspiré par les exigences des opérations spéciales de la police et de la police. La Descent ™ Mk1 est une plongée d'une heure
un ordinateur qui offre une navigation GPS polyvalente, plusieurs modes de plongée, une prise en charge de six gaz et plus
comprenant la technologie de fréquence cardiaque au poignet Garmin Elevate ™ et diverses fonctionnalités multisports. En 2018, Garmin l'a introduit
Instinct, une montre intelligente GPS extérieure et robuste avec des applications sportives intégrées, un capteur de fréquence cardiaque, une connectivité intelligente et
informations de bien-être.

golf
moyens

la
approche® Une gamme d’engins de golf, comprenant des ordinateurs de poche, des appareils portés au poignet, des capteurs de club et des télémètres laser
équipement avec plus de 41 000 terrains de golf pré-installés dans le monde. L’offre va de l’affichage du fil de base à l’avant, à l’arrière
au milieu du vert pour les appareils à écran tactile avancés qui vous permettent de mesurer des distances de prise de vue individuelles et d’afficher la pente définie
le fairway, les dangers et les verts. La S10 est une montre de golf GPS d'entrée de gamme facile à utiliser qui fournit une distance précise
Plus de 41 000 cartes de parcours de golf préinstallées sur l'avant, le centre et l'arrière, au-dessus du green, 1,3 pouces de soleil haute définition
écran. Le S20 comprend AutoShot, qui enregistre automatiquement la distance et l'emplacement des prises de vue, le suivi de l'activité quotidienne et la fonction intelligente
notifications. Le S60 dispose également d'un écran tactile et de la fonction PlaysLike qui prend en compte la hauteur
Basculez entre le golfeur et la cible pour calculer la distance que le coup est susceptible de jouer. Le S60 Connect propose également
QI support et un modèle haut de gamme avec un front en céramique.

beaucoup
Les outils de golf disposent d'une fonctionnalité de suivi statistique qui permet aux utilisateurs de suivre et d'analyser leurs statistiques de golf.
est une application mobile Garmin. Certains outils incluent des métriques de swing qui donnent un son audible pour ajuster le tempo
une boussole qui guide l’aiguille lors de coups aveugles, le positionnement manuel de l’aiguille qui permet aux utilisateurs de
Faites glisser le drapeau sur le vert pour l'ajuster avec précision et afficher les courriels, les messages texte et les alertes.

Ban ben
En 2018, Garmin a également présenté le Approach Z80, un télémètre laser intégré complet doté d'un GPS, et le club Approach CT10.
capteurs de suivi pour un suivi de jeu entièrement automatisé. Le télémètre laser Z80 chevauche le trou
41 000 terrains de golf pré-chargés, y compris la stabilisation d'image pour réduire les tremblements et PlaysLike pour le réglage de la distance
basé sur des pentes en montée ou en descente. Les capteurs CT10 sont des capteurs légers ajoutés aux clubs de golf et associés à un système Garmin compatible.
le golf peut être porté pour fournir une analyse en profondeur et un aperçu de la distance et de la précision de chaque club de golf.

Chien, eb
Outils de suivi et de formation –

Garmin
offre une gamme de produits centrés sur le chien avec une gamme de fonctionnalités incluant le suivi de chien par GPS et le chien électronique
formation, et détection et réparation automatiques des aboiements. Les produits sont disponibles sous Astro®, Alpha®.
Atemos ™, PRO, Sport PRO ™, BarkLimiter ™, Delta® et les lignes de produits Delta Smart ™. C'est alpha
et la série Astro peut déterminer la position de plusieurs chiens en même temps avec des colliers tous temps et un système manuel, et
connectez-vous à de nombreux périphériques Garmin compatibles tels que le navigateur GPS Garmin DriveTrack ™ 71 ou à une solution d'aventure
montres pour montrer la position du chien. Alpha combine les capacités de suivi d’Astro avec l’entraînement électronique des chiens. BarkLimiter
est un outil intuitif de réparation d'écorce électronique. Les balles d’entraînement des séries Delta et PRO fournissent un équipement d’entraînement à distance
avec fonction de contrôle des aboiements intégrée pour les marchés de la formation de chiens professionnels et professionnels avec fonctions de suivi supplémentaires
disponible sur le PRO 550 Plus.

Garmin
Connect et Garmin Connect Mobile –

Garmin
Connect ™ et Garmin Connect Mobile est une plate-forme Web et mobile où les utilisateurs peuvent le faire.
suivre et analyser vos données de condition physique, d’activité, d’entraînement et de bien-être. En outre, les utilisateurs peuvent partager leurs résultats,
mettre en place des groupes de formation et des défis de groupe, et obtenir des commentaires et des encouragements de la part de la communauté Connect.

joindre
QI –

la
Connectez la plate-forme de développement d'applications IQ ™
permet à des tiers de créer diverses expériences avec une large gamme de périphériques Garmin. Connect IQ fournit le service
les développeurs avec un kit de développement logiciel (SDK) facile à utiliser qui facilite le développement de cadrans de veille, d’applications,
widgets et champs de données. Ces applications tierces peuvent être téléchargées pour les utilisateurs Garmin sur leurs téléphones mobiles.
ou sur un ordinateur et exécutez-le sur des appareils portables compatibles Garmin, des ordinateurs de vélo ou des ordinateurs de poche extérieurs.

aptitude

Garmin
offre une large gamme de produits de suivi de la condition physique et de l'activité. Garmin offre actuellement aux consommateurs
le monde:

Course à pied / Multi-sport
Montres –

la
précurseur® La série propose des leçons d’entraînement compactes et légères pour les athlètes avec un capteur GPS intégré
qui fournissent le temps, la vitesse, la distance, l'allure et d'autres données. La plupart des modèles ont un moniteur de fréquence cardiaque et
calcul des calories basé sur la fréquence cardiaque. Garmin a ajouté les Forerunner 645 et Forerunner 645 Music en 2018, ce qui vous donne une prime
Montre-bracelet GPS Garmin Elevate ™ avec fréquence cardiaque au poignet et paiement sans contact Garmin Pay ™
tandis que Forerunner 645 Music ajoute des capacités de stockage de musique à votre montre. Tous les modèles Forerunner permettent aux coureurs
téléchargez vos données sur Garmin Connect pour stocker, analyser et partager vos données de formation. plus
Les fonctionnalités avancées incluent: Virtual Racer ™, qui permet aux coureurs de rivaliser avec leurs meilleurs temps précédents, récupération
consultant, prévisionniste de course et estimation VO2 max. Certains modèles sont conçus spécifiquement pour les triathlètes. Ce sont tous dans un
Les appareils compatibles GPS fournissent des indicateurs de natation détaillés et permettent de suivre la distance, la vitesse / allure, l’altitude et la fréquence cardiaque pour la course et
Cyclisme.

cyclisme
Ordinateurs –

la
vivre® La série mesure la vitesse, la distance, le temps, les calories brûlées, l’ascension et la descente, ainsi que l’altitude, le tout de manière intégrée
système d'entraînement personnel pour cyclistes. En outre, Garmin propose des outils destinés aux cyclistes axés sur la performance.
connectivité en temps réel via un smartphone, avec suivi en temps réel, partage de réseaux sociaux et mises à jour météo en temps réel. la
Des ordinateurs de vélo de base faciles à utiliser aux modèles haut de gamme avec navigation et performances avancées, la série Edge
et les caractéristiques de la sensibilisation au cyclisme.

cyclisme
Power Meter –

Garmin
propose le Vector ™, un indicateur de performance de précision à pédale conçu spécifiquement pour les cyclistes. Il fournit de l'énergie
données pour les appareils compatibles utilisant ANT + (ou utilisant)® la technologie. Certains modèles mesurent et montrent à droite et à gauche
pied équilibre des forces.

cyclisme
Sécurité et sensibilisation –

Garmin
offre la VariaLa famille de produits est axée sur la sécurité et la sensibilisation au cyclisme. Varia radar de vélo
avertit les cyclistes lorsque des véhicules s’approchent par derrière et que les feux Varia rendent le cycliste plus visible lorsque
manière. Varia Visionun affichage tête haute qui met les données à la disposition du cycliste
látóvonaluk.

activité
Outils de suivi –

Garmin
offre de nombreux outils pour le marché du suivi d'activité. Le vívomove® HR est au poignet
pulzusfigyelés, alvásfigyelés és tevékenységek követése egy hibrid intelligens órához. A vívofit®
A fitnesz zenekarok személyre szabott napi célt szolgálnak, nyomon követik az előrehaladást és emlékeztetik a felhasználókat, mikor kell ideje mozogni. Az eszközök
egyéves akkumulátor-élettartamot és folyamatosan megjelenő kijelzőt mutat, amely megmutatja a lépéseket, a cél visszaszámlálását, a kalóriákat, a távolságot, a napszakot
és a pulzusszám, amikor monitorral párosítják. A vívosmart® ugyanazokat a funkciókat biztosítja, mint a
vívofit sávok, de magában foglalja a Garmin Elevate ™ -et, intelligens értesítéseket és vibrációs riasztást, valamint egy csukló alapú
pulzus-oximéter-érzékelő a 2018-ban kiadott vívosmart 4-ben. A vívosport® magában
A GPS lehetővé teszi a felhasználók számára, hogy még pontosabban nyomon követhessék tevékenységeik távolságát, idejét és ütemét, valamint megtekinthessék a térképet
tevékenységük a Garmin Connect ™ -en. A vívoaktív® Az intelligens órák az aktívokra összpontosítanak
életmód fogyasztó, az összes alapvető tevékenységfigyelő funkcióval, valamint a futáshoz, a kerékpározáshoz és a kerékpározáshoz tervezett alkalmazásokkal együtt
úszás, és magában foglalja a csatlakoztatást a Connect IQ ™ alkalmazás-áruházhoz a további testreszabási lehetőségek és lehetőségek érdekében.
A vívoactive 3 Music 2018-ban jelent meg, amely zenei tárolási képességeket adott a vívoactive GPS-hez
smartwatch termékcsalád.

tengeri

Garmin
a szórakoztató tengeri elektronika vezető gyártója, és széles termékkínálatot kínál. A Garmin jelenleg kínál
ügyfelek szerte a világon:

Chartplotters
és többfunkciós kijelzők (MFD-k) –

Garmin
Számos chartplotter / MFD-t kínál a GPSMAP alatt® és echoMAP ™ termékcsaládok. A kínálat tartománytól kezdve
4 hüvelykes hordozható és rögzíthető termékek a 24 hüvelykes teljesen integrált üveg helm kínálatához. A Garmin Quickdraw ™ kontúrok
A szolgáltatás lehetővé teszi a felhasználók számára a saját halászati ​​térképük elkészítését, miközben a tó körül körbejárnak, sőt megoszthatják vagy letölthetik azokat
ez a halászati ​​térkép egy globális közösség részéről. Ezenkívül a legtöbb modellben a CHIRP szonár funkció teljesen integrálva van a csökkentés érdekében
rendszerköltség. A térképkészítőink támogatják a fedélzeti érzékelők és a Garmin tartozékok „plug-and-play” elérését is
NMEA 2000, Garmin Marine Network (a GPS, a radar, a SiriusXM WX műholdas időjárás-szonda, szonár és más alkatrészek egyesítésére szolgáló rendszer)
és a FUSION-Link ™ szórakoztató felület. A chartplotter / MFD felépítésünk nagy része a Wi-Fi-t is támogatja a csatlakozás lehetővé tétele érdekében
funkciók, beleértve az okostelefon-értesítéseket, a diagramok és a szoftverek mobil frissítéseit, a tömegből származó adatokat, a felhasználói adatok szinkronizálását,
és mások az ActiveCaptain segítségével® alkalmazás biztosítja, hogy a legfrissebb információk és szoftverek mindig rendelkezésre álljanak
az edény. Az ActiveCaptain alkalmazás elérhető az Apple és az Android alkalmazásboltokban.

Térképészet

Garmin
a szabadidős tengeri piac kartográfia vezető szállítója. A leányvállalattal, a Navionics®-vel együtt, amely szolgál
sok harmadik fél térképtervezőjének tartalmi igényei szerint, a Garmin a rekreációs tengeri tartalom világméretű vezetője. Térképészet
A termékopciók a világméretű alaptérképektől kezdve a rendkívül részletes BlueChart® g2, BlueChart® g3, BlueChart® g2 Vision®
és a BlueChart® g3 Vision, LakeVü g3 és LakeVü g3 Ultra táblázatok, Navionics +, Platinum + és Hotmaps Platinum termékek
lefedettséggel a világ számos részén, automatikus útmutatást kínálva (a Garmin USA-ban szabadalmaztatva), Navionics Dock az autorouting dokkolásához, 3D
térképnézet és légi referenciafotók. Ezeknek a termékeknek a része a Garmin leg részletesebb kartográfiája
saját felmérések az Egyesült Államok belvizein, amelyeket a Garmin csúcstechnikai hajóinak flottája végez, a tartalom kizárólag a
Navionics own survey and data collection efforts, as well as depth content based on Navionics popular SonarChart™ product
containing community contributions worldwide.  We also offer the highly-rated Navionics boating app to bring cartography
to the mobile phones and tablets of recreational boaters worldwide.

Fishfinders

Garmin
offers an advanced line of fishfinders, the Striker™ series, which incorporate GPS technology and Quickdraw™ Contours.
These fishfinders are available in screen sizes from 4 to 9 inches and are paired with our latest technology sonar transducers
to provide the clearest sonar pictures on the water. ClearVü sonar and Quickdraw Contours are offered on the 4-, 5-, 7- and
9-inch models which provides high resolution images of what is under the boat and the ability to create your own fishing maps.
The 7- and 9-inch models also offer a SideVü option which provides similar high-resolution images but reaches much further
out on either side of the boat making the search for fish more efficient. The GPS technology enables anglers to have highly accurate
speed information and mark their best fishing spots and then easily return to them next weekend, next month, or next year. la
7- and 9-inch models also offer Wi-Fi technology which enables wireless updates and Quickdraw Contour sharing that give anglers
access to a global fishing map community where owners can contribute or download what others have shared.

Sounders

Garmin
offers “black-box” sounders and “smart transducers” which interface with Garmin MFDs to enhance their
utility by providing the depth sounder and fish finder functions in a remote mounted package. The black boxes provide CHIRP, Ultra
High-Definition ClearVü, and Ultra High-Definition SideVü sonar, similar to our integrated sonar plotters, but can be
mounted in a more convenient location away from the helm. Additionally, we offer up to 3kW transmit power with our black box line-up
which will reach deeper depths for ocean use. Our newest smart transducer line is the Panoptix™ all seeing sonar. It provides
detailed images that can be seen in real-time (LiveVü), 3D (RealVü), and in a forward-looking configuration (FrontVü)
for seeing what is coming before you get there. Panoptix is offered in a range of transducers for transom, trolling motor, or
thru-hull mounting configurations. Panoptix LiveScope™ was introduced in 2018 and takes all seeing sonar to a new level.
LiveScope™ takes the real-time aspect of our original Panoptix but significantly increases the resolution to provide an
unparalleled view of what is happening live under the water.

Autopilot
Systems –

Garmin
offers full-featured marine autopilot systems designed for sailboats and powerboats. The systems incorporate such features as
Garmin’s patented Shadow Drive™ technology, which automatically disengages the autopilot if the helm is turned, remote
steering and speed control, and integration with the Volvo Penta IPS steering and propulsion system. Garmin has also introduced
steer-by-wire autopilot capabilities for various steering systems.

Radar

Garmin
offers high-tech solid state Fantom™ radar with MotionScope™ Doppler technology, lowering system power
consumption while greatly improving situational awareness of the captain. MotionScope can instantly show if a target is
closing in or safely going the other direction. Fantom radars are available in both radomes and open array radar products
with compatibility to any network-compatible Garmin chartplotter. When paired with our newer MFDs, the radars support
dual-range mode so users can operate the radar in two ranges independently. The Fantom radars are offered in addition
to the more traditional magnetron radars. The Garmin radar solutions range from 18 inches to 6 feet antennas and from 4kW (or
equivalent) up to 25kW with a maximum range of 96 nautical miles.

Instruments

Garmin
offers NMEA 2000 and NMEA 0183 compliant instrument displays that show data from multiple remote sensors on one screen. Mariners
can display instrument data such as depth, speed through the water, water temperature, fuel flow rate, engine data, fuel level,
wind direction and more, depending upon the specific sensors connected. Garmin instruments offer screen sizes from 4 to 10 inches,
and the 10-inch mast mounted displays provide maximum visibility around the vessel.

VHF
Communication Radios –

Garmin
provides marine VHF radios with the latest feature sets for the communication needs of all types of mariners. Our
radios are NMEA 2000 compatible and the mid-range and premium radios are designed for larger vessels
and include NMEA 0183, offer multi-station support, and monitor all AIS channels at the same time.

Handhelds
and Wearable Devices –

Garmin
offers a floating marine GPS handheld featuring a 3-axis tilt-compensated electronic compass, wireless data transfer between compatible
units and preloaded cartography for the coastal United States. The quatix® series, Garmin GPS watches designed
for mariners, combines marine features for navigation, sailing, stereo control, and even some autopilot functions while integrating
Garmin’s GPS technology and interface. The quatix 5 model also includes Garmin Elevate™ wrist-based heart rate monitoring.

Sailing

Garmin
has integrated many basic and advanced sailing features into our MFD and instrument systems. These SailAssist features include
enhanced wind rose with true and apparent wind data, pre-race guidance, synchronized race timer, virtual starting line, time to
burn and lay line data fields.

Entertainment

Garmin’s
entertainment brand, FUSION®, consists of marine audio head units, speakers and amplifiers. These products are
designed specifically for the marine or RV environments and support many connectivity options for integrating with MFDs, smartphones,
and even the Garmin quatix® marine watch for an outstanding experience on the water. The FUSION marine head units
are designed specifically for the marine environment and feature up to 4 zones in one unit to control. The system can support
multiple head units allowing control of the whole system from a Garmin MFD.

Digital
Switching –

Ban ben
2018 Garmin acquired Trigentic who designs and manufactures digital switching equipment under the EmpirBus™ brand. The EmpirBus
products provide power distribution and control solutions for marine and RV applications which enable advanced logic controls
and smart electrical systems to enhance features in a boat or RV. Control for EmpirBus products is integrated into Garmin’s
marine multi-function displays and RV OEM products.

Aviation

la
Garmin aviation segment is a leading provider of solutions to aircraft manufacturers, existing aircraft owners and operators,
as well as government/defense customers and serves a range of aircraft including business aviation, general aviation, experimental/light
sport, helicopters, optionally piloted vehicles (OPV), unmanned aerial vehicles (UAV) and more. Garmin’s portfolio includes
flight displays, navigation, communication, flight control, hazard avoidance, weather radar, radar altimeter, datalink weather
receivers and services, engine information systems, traffic collision avoidance systems, terrain awareness and warning systems
(TAWS), controller-pilot data link (CPDLC), an expansive suite of automatic dependent surveillance broadcast (ADS-B) solutions,
in-cockpit and cloud connectivity, wearables, portables, apps, training, simulation, flight planning/filing, premium trip services,
aviation data services as well as other solutions that are known for innovation, reliability, and value. The list below includes
a sampling of some of the aviation capabilities currently offered by Garmin around the world:

Integrated
Flight Decks/Flight Displays –

Garmin
offers a range of integrated glass flight decks from the G1000® NXi for the general aviation and business aviation
markets to the G5000® for business aviation, defense and commercial applications. Integrated capabilities include:
navigation, communication, flight instruments, weather, terrain, traffic, ADS-B, engine information on large high-resolution color
displays, and automatic flight control systems. Head-up display technology virtually mirrors the primary flight display instruments
allowing for increased aircraft capability in adverse weather conditions. Additional features include: Garmin’s 3-D synthetic
vision technology (SVT™), weather, Garmin’s electronic stability and protection system (ESP™), electronic flight
charts, touchscreen and voice controls, CPDLC, audio and visual feedback, and animation to help pilots know exactly how the system
is responding to their input.

Garmin
offers similar integrated glass flight decks for the helicopter market with the G1000H® NXi, G3000H™, and
G5000H™. Basic and advanced capabilities are similar to those offered to the fixed-wing aircraft market. The helicopter
offerings have been optimized for rotorcraft and offer features like helicopter synthetic vision technology (HSVT™), helicopter
terrain awareness and warning system with voice call outs, radar altimeter display, helicopter-specific databases that include
additional heliports and low-altitude obstacles, WireAware™ wire-strike avoidance technology, as well as high resolution
terrain, tailored ADS-B traffic alerting, and the ability to display video from a forward looking infrared (FLIR) camera or other
video sources.

Garmin
also offers all-glass integrated flight decks to the retrofit market through G950® NXi, G1000® NXi,
G3000® and G5000®. Additionally, Garmin offers electronic flight display solutions that provide
essential information such as aircraft altitude, attitude and heading while also displaying data from other avionics such as weather,
traffic and much more. These solutions include G3X Touch™, G500H TXi, G500 TXi, G600 TXi and G700 TXi.

Panel-mount
aviation products –

GPS/Navigation/Communication
Solutions –

Garmin
serves the market with the GTN™ series, a premium touchscreen GPS, VHF navigation and communication, and multi-function
display (MFD). In addition to these core functions, this series of products combines a wealth of information for the pilot into
a single display including flight planning, datalink weather, weather radar, traffic, terrain awareness and warning system (TAWS/HTAWS),
charts, airport information, airspace boundaries, and much more. Additional capabilities provide advanced ADS-B “In”
traffic display, including TerminalTraffic™ and patented TargetTrend™ technology as well as the ability to control
the display with voice commands. Advanced GTN integration capabilities provide the option to install and control a remotely located
transponder and audio processor for an even more streamlined installation and single interface. The GTN series also provides
wireless cockpit connectivity (when properly equipped) with mobile device apps (such as Garmin Pilot™) or portable aviation
navigators (such as aera® 660). Wireless cockpit connectivity features can include voice call control, text messaging,
automatic wireless database updating via Database Concierge, wireless flight plan transfer, SiriusXM radio control, sharing of
weather, traffic, position information and more. Garmin also offers more traditional VHF navigation and VHF communication transceivers
with the GNC® and GTR™ series.

Traffic
Solutions –

Garmin
offers a comprehensive line of traffic alert and collision avoidance systems (TCAS) and traffic advisory systems (TAS) for all
markets served. Advanced TCAS II systems actively identify potential aircraft threats, coordinate and instruct the pilot with
a resolution advisory (RA) via a spoken command. The GTS™ series also offers TCAS I and TAS that combine active and passive
surveillance data to pinpoint specific traffic threats. The systems use our patented CLEAR CAS™
technology and correlate passive automatic dependent surveillance broadcast (ADS-B) targets with active surveillance targets for
a more comprehensive display to the pilot. These systems can also provide audible alerts in a spoken ATC-like format that
is easily understood by the pilot and allows him to keep his eyes outside of the aircraft.

Audio
Solutions –

la
GMA™ series of audio panels ranging from offerings with basic capabilities for the recreational pilot to advanced capabilities
including voice control of audio panel and GTN™ series functions, Bluetooth connectivity for wireless music input, phone
calls and VIRB® action camera audio output, advanced audio effects, 3D spatial audio processing, digital voice
recorder, advanced auto squelch, ambient noise based volume adjustment and independent pilot/co-pilot communications capabilities.
When connected to a Garmin GTN series navigator, advanced voice control functions are available, and include the ability
to change page views, load destination frequencies and much more.

Transponder
and ADS-B Solutions –

Garmin
offers solutions for all aviation markets we serve that meet and exceed the FAA’s ADS-B mandate that requires all aircraft
operating in select U.S. airspace (typically where a Mode C or S transponder is required today) to equip by 2020. For business
aviation aircraft, Garmin pairs the GTX™ 3000 transponder and GDL® 88 datalink for both ADS-B out and in
while mitigating the need to modify the existing aircraft panel. The GTX 345 and GTX 335 are also available as an option for some
business aviation aircraft.

Business
aviation, general aviation, helicopters and experimental/light sport aircraft can utilize our popular GTX 345 series of all-in-one
ADS-B transponders that offer options with and without GPS built-in (if the aircraft is not already equipped with mandate required
GPS source) as well as ADS-B “In”. ADS-B “In” information can be displayed on most Garmin multi-function
displays and integrated flight decks as well as select third party displays. Additionally, the GTX 345 can wirelessly transmit
this data to a portable device such as a tablet using the Garmin Pilot™ app or compatible Garmin aviation portable. ADS-B
“In” offers pilots basic weather information including weather radar imagery, as well as traffic information that
can be enhanced with our TerminalTraffic™ and patented TargetTrend™ technology.

Garmin
also offers a range of FAA certified UAT-based ADS-B products within the GDL® series, including both ADS-B “Out”
and ADS-B “In/Out” solutions with options for built-in GPS.

Many
of the ADS-B “In” capable products provide traffic correlation with both Garmin and other compatible third-party traffic
systems (such as TCAS) to provide a single, correlated display of traffic to the pilot. Some products also offer the option for
diversity (dual) antenna installations.

Weather
Solutions –

Weather
capabilities are delivered within our GDL®, GSR™, GSX™, GTX™ and GWX™ series. Garmin solutions
include offering SiriusXM satellite data link weather information (subscription required) to an aircraft via various panel-mount
Garmin displays and/or portable devices. With our GSR 56 datalink, on-demand global weather information, text/voice communications
and position tracking through the Iridium satellite network (subscription required) is available. The GWX and GSX series offer
solid state, real-time, airborne doppler-capable weather radar solutions. Doppler-enhanced features include ground-clutter suppression
and turbulence detection. Advanced capabilities also include lightning and hail prediction, volumetric autoscanning and predictive
windshear technology.

Flight
Control Solutions –

Garmin
offers both standalone and integrated flight control solutions. Our G1000® NXi, G2000®, G3000®
and G5000® platforms are integrated with our GFC™ 700 digital autopilot and optionally with our autothrottle
solution. For aircraft not equipped with a Garmin integrated flight deck, we offer the GFC 600 and GFC 500 digital autopilots.
The GFC 600 and GFC 500 uniquely integrate with our other stand-alone avionics to allow display of the autopilot modes, flight
director (FD) command cues and more. The unique design of our autopilots delivers superior in-flight characteristics, self-monitoring
capabilities and minimal maintenance needs when compared to older generation autopilot systems. They also boast a robust feature
set that incorporates a number of safety-enhancing technologies, including Electronic Stability and Protection (ESP™), underspeed/overspeed
protection, Level Mode and much more.

Portable
and Wearable Solutions –

Garmin
offers a variety of portable aviation solutions, including our aera® series portable navigators, VIRB®
aviation action cameras, D2™ series pilot watches, inReach® global communicators and GDL® series
remote ADS-B/SiriusXM receivers. The aera series offers aviators a touchscreen navigation device compatible with a complement
of aviation databases including navigation, SafeTaxi®, FliteCharts®, airport directory and terrain/obstacles for heightened
situational awareness. Advanced features can include: 3D Vision virtual perspective view of surrounding terrain, a digital document
viewer, a scratch pad, geo-referenced sectional and approach charts, wireless database updating, and SiriusXM radio and weather
display (subscription required). Complementing the portable display products and the Garmin Pilot™ mobile application is
the GDL 52 series, which can provide a remote source of GPS, ADS-B “In” information for traffic and weather, SiriusXM
weather and audio as well as backup attitude reference.

la
Garmin wearable aviation solutions include our D2 series pilot watches, which offer a built-in worldwide aviation navigation database
and more alongside multisport and smartwatch features. Designed specifically for aviators, the current D2 series can display weather
information (METARS and TAFs) as well as weather radar from an internet connected smartphone. Other flight information capabilities
include a moving map overlaid with the aircraft’s position, HSI navigation, Zulu/UTC time and more. With a built-in baro-adjustable
altimeter, vibrating alerts based on altitude can be activated to remind a pilot to activate supplemental oxygen or perform other
time critical tasks. The D2 Delta series watches also include multisport features with wrist-based heart rate monitoring, smartwatch
capabilities, music storage capabilities, and a wrist-based pulse oximeter sensor available on the D2 Delta PX. Our VIRB aviation
action camera products provide pilots a comprehensive solution to record their flights, with the ability to integrate air traffic
control communications to the audio recording, filter out prop distortion and overlay speed, altitude, G-force and more for enhanced
post flight analysis.

inReach
satellite communications and services provide the ability to stay in touch globally. Send and receive messages, navigate your
route, track and share your journey and, if necessary, trigger an SOS to get emergency help from a 24/7 global monitoring center
via the 100% global Iridium® satellite network.

Services

Mobile
Applications –

Garmin
Pilot™ is a premium, global app for iOS or Android mobile devices used for flight planning, filing a flight plan, in flight
navigation, and automatic flight logging. It offers a comprehensive and simplified experience to access a wealth of information
during any particular phase of the flight including weight and balance, performance, and trip calculations, checklists, airport
information, weather, traffic, 3D Vision virtual perspective view of surrounding terrain, a digital document viewer, a scratch
pad, geo-referenced sectional and approach charts, wireless database updating, ADS-B weather and traffic as well as SiriusXM radio
and weather (subscription required). It incorporates global or regional navigation databases and charting options from Garmin
as well as optional Jeppesen data and charts. While internet connected, the app provides access to comprehensive global weather
information, as available per region, that generally includes weather radar, weather report (METARS), forecasts (TAFs), weather
alerts (AIRMETS/SIGMETS), pilot reports, satellite imagery (visible and IR), winds and temperature aloft, lightning data, and
notices to airmen (NOTAM). Garmin Pilot is the cornerstone of Garmin’s connected cockpit, for example when connected
wirelessly with G1000® NXi, a host of benefits become available including automated database updates for the avionics,
flight plan transfer, weather and traffic streaming, real-time engine information and much more. Garmin Pilot™ is also wirelessly
compatible with select aera® series portables, D2™ aviator watches, G3X Touch™ flight displays, GTX™
series transponders, VIRB® action cameras, inReach® communicators and much more.

Additionally,
the FltPlan® Go app offers pilots a free, advertisement supported, alternative to Garmin Pilot and is available
for iOS, Android, Windows and Mac. The FltTrack™ app, available for iOS and Android, allows users to view flights by aircraft registration
on high-resolution, full-screen maps with weather radar. Flight details include both filed and actual departure times and filed/amended
routes. The FltLogic® app is the mobile companion to the FltLogic scheduling website and is available for iOS and
Android. It allows pilots and passengers to stay up to date with scheduled flights and provides administrators the ability to
create and edit events from their mobile device.

Web
Services –

Pilots
and operators can utilize a variety of Garmin web applications before, during and after flights. FltPlan.com is the core of these
applications and is trusted by pilots and flight departments to plan and file more flight plans than any other provider. It is
renowned for fuel burn accuracy, reliable flight times, accurate routing and features performance profiles for more than 320 aircraft
models from experimental aircraft to inter-continental business jets.

FltPlan.com
offers a suite of comprehensive trip services designed to help support pilots and flight departments. Services include Pre-departure
clearances, runway analysis, eAPIS, international handling, privacy services with DOT COM call signs, flight tracking, fleet management
and flight logistics/scheduling.

For
flight scheduling, FltLogic.com offers a comprehensive suite of features from trip requests and approvals to flight planning and
post-flight reporting to meet complex and changing operational needs. FltPlan® Manager is an integrated, web-based
fleet tracking program designed specifically for charter operations, large flight departments, and fractional operations. It offers
operators better insight and control of their fleet from a single administrative account. FltSafety.com is a safety management
system website that assists pilots and flight departments in managing potential hazards and risks and ensuring overall safety
within flight operations.

Aviation
Databases –

Garmin
offers a wide selection of databases, extended warranties and subscription services to complement our products. Our database offerings
include Navigation Data, Obstacles, SafeTaxi® enhanced airport diagrams, Terrain, Basemap and more. Some of these
databases are required by government regulations to be updated regularly for legal flight, and Garmin offers single updates as
well as annual subscriptions for owners and operators to update all of an aircraft’s qualifying avionics systems at a single
price. With a database subscription and compatible avionics, owners and operators can conveniently and wirelessly transfer the
latest database updates to their avionics via a mobile device running our Garmin Pilot™ application.

Extended
Warranties –

Our
aviation product support team has been honored with top awards from two of the leading independent avionics support surveys for
15 consecutive years. To further our full product support beyond the standard product warranties, we also offer fixed price extended
warranties for integrated flight decks and custom plans tailored to the owner or operator’s needs, allowing them peace of
mind and predictable maintenance costs. These further our standard warranty periods with world-class factory technical service,
24/7 aircraft-on-ground (AOG) emergency service and more.

Datalink
Communications –

Our
comprehensive satellite datalink network subscriptions provide owners and operators with compatible avionics, a global weather,
voice calling, text messaging and position reporting solution. Global weather includes radar imagery, cloud cover, METARs, TAFs
and much more for any point on the globe where the data is available (weather products vary by region).

Sales
and Marketing

Garmin’s
non-aviation products are sold in approximately 100 countries through a large worldwide network of independent dealers and distributors,
who meet our sales and customer service qualifications. No single customer’s purchases represented 10% or more of Garmin’s
consolidated net sales in the years ended December 29, 2018, December 30, 2017, and December 31, 2016. Marketing support is provided
geographically from Garmin’s offices around the world. Garmin’s distribution strategy is intended to increase Garmin’s
global penetration and presence while maintaining high quality standards to ensure end-user satisfaction. Some of Garmin’s
larger consumer products dealers and distributors include:

Amazon.com—internet
retailer;
Best
Buy
—one of the largest U.S. and Canadian electronics retailers;
Walmart—la
world’s largest mass retailer; et
Decathlon—un
of the world’s largest sporting goods retailers

Garmin’s
retrofit avionics and aviation portable products are sold through a large group of approved Garmin Sales and Service Centers around
the world and, in the case of aviation portable products, also through select catalogs and pilot shops. Garmin’s largest
aviation dealers include Aircraft Spruce & Specialty Co., Elliott Aviation, Gulf Coast Avionics Corp., Park Rapids Avionics,
and Sarasota Avionics. Avionics dealers have the training, equipment and certified staff required for installation of Garmin’s
avionics equipment.

Ban ben
addition to the traditional distribution channels mentioned, Garmin has many relationships with original equipment manufacturers
(OEMs). In the auto segment, Garmin’s products are sold globally to automotive and motorcycle OEMs, either directly or through
tier 2 sourcing. Some of Garmin’s larger OEM relationships include BMW, Chrysler, Daimler (Mercedes Benz), Honda, Toyota,
and Volkswagen. In the marine segment, Garmin’s products are standard equipment on various models of boats. Some of the
larger OEM relationships include Chaparral Boats, Inc., Cobalt Boats, LLC, Groupe Beneteau, Hydrasports Boats, Ranger Tugs, Regal
Marine Industries, Inc., Sea Hunt, Sportsman Boats, Tiara, Viking Yachts, and Yellowfin Yachts. In the aviation segment, Garmin’s
avionics systems are either standard equipment or optional equipment on various models of aircraft. Some of the larger OEM relationships
include Airbus Helicopters, Bell Helicopter, Bombardier Business Aircraft, Cirrus Aircraft, Daher, Diamond Aircraft, Embraer,
Gulfstream Aerospace, Honda Aircraft, Leonardo Helicopters, Piper Aircraft, Quest Aircraft, Robinson Helicopter Company, Tecnam,
and Textron Aviation.

Competition

Ban ben
general, we operate in highly competitive markets though competitive conditions do vary among our diverse products and geographies. 
Garmin believes the principal competitive factors impacting the market for its products are design, functionality, quality and
reliability, customer service, brand, price, time-to-market and availability.  Garmin believes that it generally competes
favorably in each of these areas and as such, is generally a significant competitor in each of our major markets.

Garmin
believes that its principal competitors for portable automotive products are MiTAC Digital Corporation (MiTAC) (which distributes
products under the brand names of Magellan, Mio, and Navman) and TomTom N.V. Garmin believes that its principal competitors for
infotainment solutions are Alpine Electronics, Inc., a subsidiary of Alps Electric Co., Ltd., Harman International Industries,
the Mitsubishi Group, and Panasonic Corporation. Garmin believes that its principal competitors for outdoor product lines are
Dogtra Company, Magellan, a subsidiary of MiTAC, SportDOG Brand, Suunto Oy, and Vista Outdoor. Garmin believes that its principal
competitors for fitness products are Apple Inc., Bryton Corp., Fitbit Inc., Huami Corporation, Huawei Technologies Co. Ltd., Polar
Electro Oy, Samsung Electronics Co., Ltd., Sigma Sports, Suunto Oy, and Wahoo Fitness. For marine products, Garmin believes that
its principal competitors are Flir Systems, Inc., Furuno Electronic Company, the Humminbird division of Johnson Outdoors, Inc.,
and Navico. For Garmin’s aviation product lines, Garmin considers its principal competitors to be Appareo Systems, Aspen
Avionics, Avidyne Corporation, CMC Electronics, Collins Aerospace, Dynon Avionics, ForeFlight, Genesys Aerosystems, Honeywell
Aerospace & Defense, Innovative Solutions and Support Inc., L-3 Avionics Systems, Safran SA, Thales, and Universal Avionics
Systems Corporation.

Kutatás
and Development

Garmin’s
product innovations are driven by its strong emphasis on research and development and the close partnership between Garmin’s
engineering and manufacturing teams. Garmin’s products are created by its engineering and development staff, which numbered
approximately 4,200 people worldwide as of December 29, 2018. Garmin’s manufacturing staff includes manufacturing process
engineers who work closely with Garmin’s design engineers to ensure manufacturability and manufacturing cost control for
its products. Garmin’s development staff includes industrial designers, as well as software engineers, electrical engineers,
mechanical engineers and cartographic engineers. Garmin believes the industrial design of its products has played an important
role in Garmin’s success. Once a development project is initiated and approved, a multi-disciplinary team is created to
design the product and transition it into manufacturing.

Manufacturing
and Operations

Garmin
believes one of its core competencies and strengths is its vertically integrated manufacturing capabilities at its Taiwan facilities
in Xizhi, Jhongli and LinKou, its China facility in Yangzhou, and at its U.S. facilities in Olathe, Kansas and Salem, Oregon.
Garmin believes that its ownership and operation of its own manufacturing facilities and distribution networks provides significant
capability and flexibility to address the breadth and depth of resources necessary to serve its diverse products and markets.

Specifically,
Garmin believes that its vertical integration of its manufacturing capabilities provides advantages to product cost, quality and
time to market.

Cost:
Garmin’s manufacturing resources rapidly and iteratively prototype designs, concepts, products and processes, achieving
higher efficiency, resulting in lower cost. Garmin’s vertical integration approach enables leveraging our manufacturing
resources across high, mid and low volume products. Sharing of these resources across our product lines favorably affects Garmin’s
costs to produce its range of products, with lower volume products realizing the economies of scale of the high volume products.
The ownership and integration of our resources allows Garmin to optimize the design for manufacturing of our products, yielding
improved cost.

Quality:
Garmin’s automation and sophisticated production processes provide in-service robustness and consistent reliability
standards that enables Garmin to maintain strict process and quality control of the products manufactured, thereby improving the
overall quality of our products. Additionally, the immediate feedback throughout the manufacturing processes is provided to the
development teams providing integrated continuous improvement throughout design and supply chain.

Time
to Market:
Garmin uses multi-disciplinary teams of design engineers, process engineers, and supply chain specialists to develop
products, allowing them to quickly move from concept to manufacturing. This integrated ownership provides inherent flexibility
to enable faster time to market.

Garmin’s
design, manufacturing, distribution, and servicing processes in its U.S., Taiwan, China and U.K. facilities are certified to ISO
9001, an international quality standard developed by the International Organization for Standardization. Garmin’s automotive
operations in Taiwan, China, U.K., and Olathe have achieved IATF 16949 certification, a quality standard for automotive suppliers.
Garmin’s Olathe and Salem aviation operations have achieved certification to AS9100, the quality standard for the aviation
industry.

Garmin
International, Inc., Garmin (Europe) Ltd. and Garmin Corporation have also achieved certification of their environmental management
systems to the ISO 14001 standard, recognizing Garmin’s systems and processes which minimize or prevent harmful effects
on the environment and continually strive to improve its environmental performance.

Materials

Although
most components essential to Garmin’s business are generally available from multiple sources, certain key components are
currently obtained by the Company from single or limited sources, which subjects Garmin to supply and pricing risks. Many of these
and other key components that are available from multiple sources, including, but not limited to, NAND flash memory, dynamic random
access memory (DRAM), GPS chipsets and certain LCDs, are subject at times to industry-wide shortages and commodity pricing fluctuations.

Garmin
and other participants in the personal computer, tablet, mobile communication, aviation electronics and consumer electronics industries
also compete for various components with other industries that have experienced increased demand for their products. In addition,
Garmin uses some custom components that are not common to the rest of the personal computer, tablet, mobile communication and
consumer electronics industries, and new products introduced by the Company often utilize custom components available from only
one source until Garmin has evaluated whether there is a need for, and subsequently qualifies, additional suppliers. When a component
or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or manufacturing
capacity has increased. Garmin makes efforts to manage risks in these areas through the use of supply agreements and safety stock
for strategically important components. Nevertheless, if Garmin’s supply of a key single-sourced component for a new or
existing product was delayed or constrained, if such components were available only at significantly higher prices, or if a key
manufacturing vendor delayed shipments of completed products to Garmin, Garmin’s financial condition and operating results
could be materially adversely affected. Garmin’s business and financial performance could also be adversely affected depending
on the time required to obtain sufficient quantities from the original source, or to identify and obtain sufficient quantities
from an alternative source. Continued availability of these components at acceptable prices, or at all, may be affected if those
suppliers decided to concentrate on the production of common components instead of components customized to meet Garmin’s
requirements.

Seasonality

Our
net sales are subject to seasonal fluctuation. Sales of our consumer products are generally higher in the fourth quarter, due
to increased demand during the holiday buying season, and, to a lesser extent, the second quarter, due to increased demand during
the spring and summer season. Sales of consumer products are also influenced by the timing of the release of new products. Our
aviation and auto OEM products do not experience much seasonal variation, but are more influenced by the timing of aircraft certifications
and the release of new products when the initial demand is typically the strongest.

Backlog

There
is a relatively short cycle between order and shipment. Therefore, we believe that backlog information is not material to the
understanding of our business. We typically ship most orders within 72 hours of receipt.

Intellectual
Property

Our
success and ability to compete is dependent in part on our proprietary technology. We rely on a combination of patent, copyright,
trademark and trade secret laws, as well as confidentiality agreements, to establish and protect our proprietary rights. In addition,
Garmin often relies on licenses of intellectual property for use in its business.  For example, Garmin obtains licenses for
digital cartography technology for use in our products from various sources.

As
of January 10, 2019, Garmin has been issued over 1,170 patents throughout the world and holds more than 800 trademark registrations.
The duration of patents varies in accordance with the provisions of applicable local law. We believe that our continued success
depends on the intellectual skills of our employees and their ability to continue to innovate.  Garmin will continue to file
and prosecute patent applications when appropriate to attempt to protect Garmin’s rights in its proprietary technologies.

There
is no assurance that our current patents, or patents which we may later acquire, may successfully withstand any challenge, in
whole or in part. It is also possible that any patent issued to us may not provide us with any competitive advantages, or that
the patents of others will preclude us from manufacturing and marketing certain products. Despite our efforts to protect our proprietary
rights, unauthorized parties may attempt to copy aspects of our products or to obtain and use information that we regard as proprietary.
Litigation may be necessary in the future to enforce our intellectual property rights, to protect our trade secrets, to determine
the validity and scope of the proprietary rights of others or to defend against claims of infringement or invalidity.

Regulations

la
telecommunications industry is highly regulated, and the regulatory environment in which Garmin operates is subject to change.
In accordance with the United States’ Federal Communications Commission (FCC) rules and regulations, wireless transceiver
products are required to be certified by the FCC and comparable authorities in foreign countries where they are sold. Garmin’s
products sold in Europe are required to comply with relevant directives of the European Commission. A delay in receiving required
certifications for new products, or enhancements to Garmin’s products, or losing certification for Garmin’s existing
products could adversely affect our business. In addition, aviation products that are intended for installation in “type
certificated aircraft” are required to be certified by the FAA, its European counterpart, the European Aviation Safety Agency,
and other comparable organizations before they can be used in an aircraft.

Because
Garmin Corporation, one of the Company’s principal subsidiaries, is located in Taiwan, foreign exchange control laws and
regulations of Taiwan with respect to remittances into and out of Taiwan may have an impact on Garmin’s operations. la
Taiwan Foreign Exchange Control Statute, and regulations thereunder, provides that all foreign exchange transactions must be executed
by banks designated to handle such business by the Ministry of Finance of Taiwan and by the Central Bank of the Republic of China
(Taiwan), also referred to as the CBC. Current regulations favor trade-related foreign exchange transactions. Consequently, foreign
currency earned from exports of merchandise and services may now be retained and used freely by exporters, while all foreign currency
needed for the import of merchandise and services may be purchased freely from the designated foreign exchange banks. Aside from
trade-related foreign exchange transactions, Taiwan companies and residents may, without foreign exchange approval, remit outside
and into Taiwan foreign currencies of up to $50 million and $5 million respectively, or their equivalent, each calendar year.
Currency conversions within the limits are processed by the designated banks and do not have to be reviewed and approved by the
CBC. The above limits apply to remittances involving a conversion between Taiwan Dollars and U.S. Dollars or other foreign currencies.
The CBC typically approves foreign exchange in excess of the limits if a party applies with the CBC for review and presents legitimate
business reasons justifying the currency conversion. A requirement is also imposed on all enterprises to register all medium and
long-term foreign debt with the CBC.

Environmental
Matters

Garmin’s
operations are subject to various environmental laws, including laws addressing air and water pollution and management of hazardous
substances and wastes.  Substantial noncompliance with applicable environmental laws could have a material adverse effect
on our business.  Capital expenditures for environmental controls are included in our normal capital budget.

Environmental
regulation of Garmin’s products is increasing.  Many of Garmin’s products are subject to laws relating to the
chemical and material composition of our products and their energy efficiency.  Garmin is also subject to laws requiring manufacturers
to be financially responsible for collection, recovery and recycling of wastes from certain electronic products. Compliance
with current environmental laws does not have a material impact on our business, but the impact of future enactment of environmental
laws cannot yet be fully determined and could be substantial.

Garmin
has implemented multiple Environmental Management System (EMS) policies in accordance with the International Organization for
Standardization (ISO) 14001 standard for Environmental Health and Safety Management.  Garmin’s EMS policies set forth
practices, standards, and procedures to ensure compliance with applicable environmental laws and regulations at Garmin’s
Kansas headquarters facility, Garmin’s European headquarters facility, and Garmin’s Taiwan and China manufacturing
facilities.

Garmin
continues to strive to reduce our carbon footprint by increasing our environmental sustainability efforts.  Our manufacturing
locations have implemented increased recycling processes that keep all obsolete Garmin manufactured material from entering the
waste stream. Additionally, our new facility in Olathe, Kansas has been constructed with energy efficient considerations, including
reduced water consumption, LED lighting, and reflective roofing to deflect solar radiation.

Employees

As
of December 29, 2018, Garmin had approximately 13,000 full and part-time employees worldwide, of whom approximately 5,000 were
in North America, 5,300 were in Taiwan, 1,600 were in Europe, and 1,100 were in other global locations. Except for some of Garmin’s
employees in Sweden, none of Garmin’s employees are represented by a labor union and none of Garmin’s North American
or Taiwan employees are covered by a collective bargaining agreement. Garmin considers its employee relations to be positive.

Item
1A. Risk Factors

la
risks described below are not the only ones facing our company. Additional risks and uncertainties not presently known to us or
that we currently believe to be immaterial may also impair our business operations. If any of the following risks occur, our business,
financial condition or operating results could be materially adversely affected.

Risks
Related to the Company

If
we are not successful in the continued development, timely manufacture, and introduction of new products or product categories,
demand for our products could decrease to the extent that lost sales and profits from declining segments or product categories
are not entirely offset.

We
expect that a significant portion of our future revenue will continue to be derived from sales of newly introduced products. This
is particularly important to replace sales and profits lost in declining segments or product categories. The market for our products
is characterized by rapidly changing technology, evolving industry standards and changes in customer needs. If we fail to introduce
new products, or to modify or improve our existing products, in response to changes in technology, industry standards or customer
needs, our products could rapidly become less competitive or obsolete. We must continue to make significant investments in research
and development in order to continue to develop new products, enhance existing products and achieve market acceptance for such
products. However, there can be no assurance that development stage products will be successfully completed or, if developed,
will achieve significant customer acceptance.

If
we are unable to successfully develop and introduce competitive new products, and enhance our existing products, our future results
of operations would be adversely affected. Our pursuit of necessary technology may require substantial time and expense. We may
need to license new technologies to respond to technological change. These licenses may not be available to us on terms that we
can accept or may materially change the gross profits that we are able to obtain on our products. We may not succeed in adapting
our products to new technologies as they emerge. Development and manufacturing schedules for technology products are difficult
to predict, and there can be no assurance that we will achieve timely initial customer shipments of new products. The timely availability
of these products in volume and their acceptance by customers are important to our future success. Any future challenges related
to new products, whether due to product development delays, manufacturing delays, lack of market acceptance, delays in regulatory
approval, or otherwise, could have a material adverse effect on our results of operations.

If
we are unable to compete effectively with existing or new competitors, our resulting loss of competitive position could result
in price reductions, fewer customer orders, reduced margins and loss of market share.

la
markets for many of our products are highly competitive, and we expect competition to increase in the future. Some of our competitors
have significantly greater financial, technical and marketing resources than we do. These competitors may be able to respond more
rapidly to new or emerging technologies or changes in customer requirements. They may also be able to devote greater resources
to the development, promotion and sale of their products or secure better product positioning with retailers. Increased competition
could result in price reductions, fewer customer orders, reduced margins and loss of market share. Our failure to compete successfully
against current or future competitors could seriously harm our business, financial condition and results of operations.

Maturation
or contraction of the market for wearable devices or categories of devices could adversely affect our revenue and profits.

We
have experienced growth in sales and profits in our outdoor and fitness segments, which in recent years have benefited from increased
sales of wearable devices. If the overall wearable device market declines, or categories of devices within the wearable device
market decline significantly, our business, financial condition or operating results could be materially adversely affected.

Our
annual and quarterly financial statements will reflect fluctuations in foreign currency translation.

la
operation of our subsidiaries in international markets results in exposure to movements in currency exchange rates. We have experienced
significant foreign currency gains and losses due to the strengthening and weakening of the U.S. Dollar relative to certain other
currencies. The potential of volatile foreign exchange rate fluctuations in the future could have a significant effect on our
results of operations. We have not historically hedged our foreign currency exchange rate risks.

la
currencies that typically create a majority of our exchange rate exposure are the Taiwan Dollar, Euro, and British Pound Sterling.
The Taiwan Dollar is the functional currency of Garmin Corporation, the U.S. Dollar is the functional currency of Garmin (Europe)
Ltd., and the Euro is the functional currency of most of our other European subsidiaries, although some transactions and balances
are denominated in British Pounds. Other legal entities primarily use the local currency as the functional currency. Due to the
relative size of entities using a functional currency other than the Taiwan Dollar, Euro, and British Pound Sterling, fluctuations
of other currencies are not expected to have a material impact on our financial statements.

We
translate income and expense activity at the approximate rate of exchange at the transaction date, and all assets and liabilities
at the rate of exchange in effect at the balance sheet date. Income and expense activity in a currency other than the U.S. Dollar
can be impacted by exchange rate variations over time. The majority of our consolidated foreign currency gain or loss is typically
driven by exchange rate impacts on the significant cash, receivables, and payables held in a currency other than the functional
currency at a given legal entity. Such gain or loss will create variations in our earnings per share. However, because there is
minimal cash impact caused by such exchange rate variations, management will continue to focus on our operating performance before
the impact of foreign currency gains and losses.

Changes
in applicable tax laws or resolutions of tax disputes could result in adverse tax consequences to the Company.

Our
tax position could be adversely impacted by changes to tax laws, tax treaties, or tax regulations or the interpretation or enforcement
thereof by any tax authority in which we file income tax returns. We cannot predict the outcome of any specific legislative proposals.
Legislative proposals are being considered in Switzerland that could make significant changes in the corporate tax regime and
increase the taxes applicable to us in Switzerland. Switzerland has agreed with the European Union (EU) to execute tax reform
by 2019 in exchange for the EU’s waiver of counter-measures. A failure to accomplish tax reform in the agreed timeframe
may result in the EU member states reasserting counter-measure provisions which could result in additional tax for the Company.

Moreover,
international taxing standards continue to evolve as a result of the Organization for Economic Co-Operation and Development (OECD)
recommendations aimed at preventing perceived base erosion and profit shifting by multinational corporations. While these recommendations
are not changes to tax law, the countries where we operate may implement legislation or take unilateral actions which may result
in adverse effects to our income tax provision and financial statements.

Significant
judgment is required in determining our worldwide provision for income taxes. In the ordinary course of our business, there are
many transactions and calculations where the ultimate tax determination is uncertain. We are regularly under audit by tax authorities.
Although we believe our tax estimates are reasonable, the final determination of tax audits and any related litigation could be
materially different from our historical income tax provisions and accruals. The results of an audit or litigation could have
a material effect on our income tax provision, net income or cash flows in the period or periods for which that determination
is made.

Changes
to trade regulations, including trade restrictions, sanctions, or tariffs, could significantly harm our results of operations.

la
significant portion of our global and U.S. sales are comprised of goods assembled and manufactured in our facilities in Taiwan
and the People’s Republic of China, and components for a number of our goods are sourced from suppliers in the People’s
Republic of China. The imposition of additional U.S. or foreign governmental controls, regulations that create new or enhanced
restrictions on free trade, trade sanctions, or tariffs, particularly those applicable to goods imported from Taiwan or the People’s
Republic of China, could have substantial adverse effects on our business, results of operations, and financial condition.

Economic,
regulatory, and political conditions and uncertainty could adversely affect our revenue and profits.

Our
revenue and profits depend significantly on general economic conditions and the demand for products in the markets in which we
compete. We have international operations which make up a significant portion of our total revenue, which can present challenges
depending on economic and geopolitical conditions on both a global and regional scale. Economic weakness or constrained consumer
and business spending has resulted in periods of decreased revenue and in the future, could result in decreased revenue and problems
with our ability to manage inventory levels and collect customer receivables. In addition, financial difficulties experienced
by our retailers and OEM customers have resulted, and could result in the future, in significant bad debt write-offs and additions
to reserves in our receivables and could have an adverse effect on our results of operations. Uncertainty in the geopolitical
climate could create trade disputes or increased tariffs which could adversely affect our results of operations.

la
auto segment, which represents approximately 19% of our revenue, is expected to continue to decline in 2019. The demand for personal
navigation devices (PNDs) has been and continues to be reduced by replacement technologies becoming available on mobile devices
and factory-installed systems in new autos, as well as by market saturation.

We
experienced substantial growth through 2008 in the auto segment of our business as PNDs became mass-market consumer electronics
in both Europe and North America. This market is declining as competing technologies emerged and market saturation occurred. GPS/navigation
technologies have been incorporated into competing devices such as mobile handsets, tablets, and new automobiles through factory-installed
systems. Many companies are now offering navigation software for these mobile devices. The acceptance of this technology by consumers
has reduced sales in the auto segment and has reduced profits in some periods. Navigation systems are also becoming more prevalent
as standard and/or optional equipment on new automobiles. Increased navigation penetration on mobile handsets and in new automobiles
is expected to cause further declines in sales of our portable navigation devices and could further reduce profits.

la
United Kingdom (UK) is scheduled to formally leave the European Union (EU) on March 29, 2019. The effects of the UK’s withdrawal
from the EU are not yet known and the uncertainty creates challenges and risks which could have a material effect on our business
and results of operations.

la
United Kingdom (UK) held a referendum in June 2016 where a majority vote was reached supporting the UK withdrawal from the European
Union (EU), commonly referred to as "Brexit". Brexit is currently scheduled to occur on March 29, 2019. The UK and EU
have had ongoing negotiations with respect to the UK's withdrawal terms, however, there is continued uncertainty surrounding the
future relationship between the UK and EU. Barring an approved agreement by Parliament, the UK will exit the EU on March 29, 2019
without a transition plan. If the UK withdraws from the EU without a transition plan, the UK would lose its tariff-free trade
status with other EU members and create customs border issues. Increased tariffs would apply to both goods imported to and exported
from the UK. The long-term risks of Brexit include economic recessions in the UK and in other European markets, raising concerns
over currency stability for both the British Pound Sterling and the Euro. There is risk that other current EU member states may
also consider withdrawal from the EU depending on the EU economy following Brexit, which would increase the long-term risk of
economic recessions in European markets and could result in further currency instability for the Euro.

We
have operations in the UK, including offices and a distribution facility, and several EU member states and therefore Brexit will
impact our operations. We have certain measures in place to reduce the impact to our business operations, however, risks such
as slow or inefficient border clearance, prolonged economic recession, and currency fluctuations could have material adverse effects
on our business operations, results of operations, and financial condition. As noted in our other risk factors, currency volatility
of the British Sterling Pound and Euro could have significant effects on our results of operations. If a deal is reached between
the UK and the EU, the impacts of Brexit would have a lesser impact to our financial condition and business operations. Given
the number of different outcomes still possible, including delaying the exit or holding a second referendum, the impacts of Brexit
are difficult to determine until specific terms of the withdrawal are reached.

If
we do not correctly anticipate demand for our products, we may not be able to secure sufficient quantities or cost-effective production
of our products or we could have costly excess production or inventories.

We
have generally been able to increase or decrease production to meet fluctuations in demand. However, the demand for our products
depends on many factors and may be difficult to forecast. We expect that it will become more difficult to forecast demand as we
introduce and support a diverse product portfolio, as competition in the market for our products intensifies and as the markets
for some of our products mature. Significant unanticipated fluctuations in demand could cause the following problems in our operations:

If
demand increases beyond what we forecast, we would have to rapidly increase production. We would depend on suppliers to provide
additional volumes of components and those suppliers might not be able to increase production rapidly enough to meet unexpected
demand.

Rapid
increases in production levels to meet unanticipated demand could result in higher costs for manufacturing and supply of components
and other expenses. These higher costs could lower our profit margins. Further, if production is increased rapidly, manufacturing
quality could decline, which may also lower our margins and reduce customer satisfaction.

If
forecasted demand does not develop, we could have excess inventories of finished products and components, which would use cash
and could lead to write-offs of some or all of the excess inventories. Lower than forecasted demand could also result in excess
manufacturing capacity or reduced manufacturing efficiencies at our facilities, which could result in lower margins.

We
depend on third party suppliers and licensors, some of which are sole source, for specific components and map data used in our
products. Our production and business would be seriously harmed if these suppliers are not able to meet our demand and alternative
sources are not available, or if the costs of components rise.

We
are dependent on third party suppliers for various components used in our current products. Some of the components that we procure
from third party suppliers include semiconductors and electroluminescent panels, liquid crystal displays, memory chips, batteries
and microprocessors. The cost, quality and availability of components are essential to the successful production and sale of our
products. Some components we use are from sole source suppliers. Certain application-specific integrated circuits incorporating
our proprietary designs are manufactured for us by sole source suppliers. Alternative sources may not be currently available for
these sole source components.

Ban ben
the past, we have experienced shortages of certain components. In addition, if there are shortages in supply of components, the
costs of such components may rise. If suppliers are unable to meet our demand for components on a timely basis and if we are unable
to obtain an alternative source, or if the price of the alternative source is prohibitive, our ability to maintain timely and
cost-effective production of our products would be seriously harmed.

We
are also dependent on third party licensors for digital mapping data used in our products. There are only a limited number of
suppliers of mapping data for some of our products and geographical regions. The largest digital map supplier for our auto products
is HERE (formerly known as NAVTEQ), which is majority-owned by a consortium of Daimler AG, BMW AG, and Audi AG. Although we do
not foresee difficulty in continuing to license data from HERE at reasonable pricing due to a long term license agreement with
an option to extend through 2028, if we are unable to continue licensing such mapping data from HERE and other primary suppliers
and are unable to obtain an alternative source, or if the nature of our relationships with primary suppliers changes detrimentally,
our ability to supply mapping data for use in our products would be seriously harmed.

Our
intellectual property rights are important to our operations, and we could suffer loss if they infringe upon other’s rights
or are infringed upon by others.

We
rely on a combination of patents, copyrights, trademarks and trade secrets, confidentiality provisions and licensing arrangements
to establish and protect our proprietary rights. To this end, we hold rights to a number of patents and registered trademarks
and regularly file applications to attempt to protect our rights in new technology and trademarks. However, there is no guarantee
that our patent applications will become issued patents, or that our trademark applications will become registered trademarks.
In addition, effective copyright, patent and trade secret protection may be unavailable, limited or not applied for in certain
countries. Moreover, even if approved, our patents or trademarks may thereafter be successfully challenged by others or otherwise
become invalidated for a variety of reasons. Thus, any patents or trademarks we currently have or may later acquire may not provide
us a significant competitive advantage.

la
value of our products relies substantially on our technical innovation in fields in which there are many patent filings. Third
parties may claim that we or our customers (some of whom are indemnified by us) are infringing their intellectual property rights.
For example, individuals and groups may purchase intellectual property assets for the purpose of asserting claims of infringement
and attempting to extract settlements from us or our customers. The number of these claims has increased in recent years and may
continue to increase in the future. Such claims could have a material adverse effect on our business and financial condition.
From time to time we receive letters alleging infringement of patents, trademarks or other intellectual property rights and we
have been, and currently are, a defendant in lawsuits alleging patent infringement. Litigation concerning patents or other intellectual
property is costly and time consuming. We may seek licenses from such parties, but they could refuse to grant us a license or
demand commercially unreasonable terms. Such infringement claims could also cause us to incur substantial liabilities and to suspend
or permanently cease the use of critical technologies or processes or the production or sale of major products.

We
may become subject to significant product liability costs.

If
our products malfunction or contain errors or defects, we could be subject to significant liability for personal injury and property
damage and, under certain circumstances, could be subject to a judgment for punitive damages. We maintain insurance against accident-related
risks involving our products. However, there can be no assurance that such insurance would be sufficient to cover the cost of
damages to others or that such insurance will continue to be available at commercially reasonable rates. In addition, insurance
coverage may not cover awards of punitive damages and may not cover the cost of associated legal fees and defense costs, which
could result in lower margins. If we are unable to maintain sufficient insurance to cover product liability costs or if our insurance
coverage does not cover the award, this could have a materially adverse impact on our business, financial condition and results
of operations.

We
have claims and lawsuits against us that may result in adverse outcomes.

We
are subject to a variety of claims and lawsuits. Adverse outcomes in some or all of these claims may result in significant monetary
damages or injunctive relief that could adversely affect our ability to conduct our business. Litigation and other claims are
subject to inherent uncertainties and the outcomes can be difficult to predict. Management may not adequately reserve for a contingent
liability, or we may suffer unforeseen liabilities, which could then impact the results of a financial period. A material adverse
impact on our consolidated financial statements could occur for the period in which the effect of an unfavorable final outcome
becomes probable and reasonably estimable which, if not expected, could harm our results of operations and financial condition.

Our
products may contain undetected security vulnerabilities, which could result in damage to our reputation, lost revenue, diverted
development resources and increased warranty claims, and litigation

Undiscovered
vulnerabilities in our products could expose them to hackers or other unscrupulous third parties who develop and deploy viruses,
and other malicious software programs that could attack our products. Actual or perceived security vulnerabilities in our products
could harm our reputation and lead some customers to return products, to reduce or delay future purchases or use competitive products.

We
collect, store, process, and use personal information and other customer data, which subjects us to governmental regulation and
other legal obligations related to privacy, information security, and data protection, and our actual or perceived failure to
comply with such obligations could harm our business.

We
collect, store, process, and use personal information and other user data. Our users’ personal information may include,
among other information, names, addresses, phone numbers, email addresses, payment account information, height, weight, age, gender,
heart rates, sleeping patterns, GPS-based location, and activity patterns. Due to the volume and types of the personal information
and data we manage and the nature of our products and applications, the security features of our platform and information systems
are critical. If our security measures or applications are breached, disrupted or fail, unauthorized persons may be able to obtain
access to user data. If we or our third-party service providers, business partners, or third-party apps with which our users choose
to share their Garmin data were to experience a breach, disruption or failure of systems compromising our users’ data or
the media suggested that our security measures or those of our third-party service providers were insufficient, our brand and
reputation could be adversely affected, use of our products and services could decrease, and we could be exposed to a risk of
loss, litigation, and regulatory proceedings. Depending on the nature of the information compromised, in the event of a data breach,
disruption or other unauthorized access to our user data, we may also have obligations to notify users about the incident and
we may need to provide some form of remedy for the individuals affected by the incident. A growing number of legislative
and regulatory bodies have adopted consumer notification requirements in the event of unauthorized access to or acquisition of
certain types of personal data. Such breach notification laws continue to evolve and may be inconsistent from one jurisdiction
to another. Complying with these obligations could cause us to incur substantial costs and could increase negative publicity surrounding
any incident that compromises user data. Our users may also accidentally disclose or lose control of their passwords, creating
the perception that our systems or those of our third-party service providers are not secure against third-party access. Additionally,
if third parties we work with, such as vendors, business partners, service providers, or developers, violate applicable laws,
agreements, or our policies, such violations may also put our users’ information at risk and could in turn have an adverse
effect on our business. While we maintain insurance coverage that, subject to policy terms and conditions and a significant self-insured
retention, is designed to address certain aspects of cyber risks, such insurance coverage may be insufficient to cover all losses
or all types of claims that may arise in the continually evolving area of cyber risk.

Regulatory
authorities and legislative bodies around the world, including in the United States, have enacted or are considering a number
of legislative and regulatory proposals concerning data protection. In May 2018, the General Data Protection Regulation (GDPR),
a new data protection regulation, went into effect in the EU. Noncompliance with GDPR could result in significant fines and penalties.
In addition, the interpretation and application of consumer and data protection laws in the U.S., Europe, Asia, Latin America,
and elsewhere are sometimes uncertain and in flux. It is possible that these laws may be interpreted and applied in a manner that
is inconsistent with our interpretation and data practices. If so, in addition to the possibility of fines, this could result
in an order requiring that we change our data practices, which could have an adverse effect on our business and results of operations.
Complying with these various laws could cause us to incur substantial costs or require us to change our business practices in
a manner adverse to our business.

We
rely on information technology systems for our business operations. Failures or disruptions, including security breaches or cyber
attacks, to our information technology systems may harm our reputation and adversely affect our business and result of operations.

Our
information technology systems allow for our daily business operations to operate efficiently and effectively. These systems assist
in our business processes, including, but not limited to, communications, financial management, supply chain management, order
processing, shipping and billing and providing services and support to our customers. Additionally, we electronically maintain
sensitive data, including intellectual property, our proprietary business information and that of our customers and suppliers,
and some personally identifiable information of our customers and employees, in our facilities and on our networks. The secure
processing, maintenance and transmission of this information is important to our operations. A disruption to any of these processes
can adversely affect our business and results of operations. Furthermore, a breach of our security systems and procedures or those
of our vendors could result in significant data losses or theft of our intellectual property as well as our customers’ or our
employees’ intellectual property, proprietary business information or personally identifiable information.  A cybersecurity
breach could negatively affect our competitive position and operating results as a result of theft of our intellectual property
and could negatively affect our reputation as a trusted product and service provider by adversely affecting the market’s perception
of the security or reliability of our products or services.

We
have technology and processes in place to detect and respond to data security incidents. However, because the techniques used
to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may be difficult to detect
for long periods of time, we may be unable to anticipate these techniques or implement adequate preventive measures. In addition,
hardware, software or applications we develop or procure from third parties may contain defects in design or manufacture or other
problems that could unexpectedly compromise information security. Unauthorized parties may also attempt to gain access to our
systems or facilities through fraud, trickery or other forms of deceiving our customers and employees. Accordingly, we may be
unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, or if such measures
are implemented, and even with appropriate training conducted in support of such measures, human errors may still occur. It is
virtually impossible for us to entirely mitigate this risk. A party, whether internal or external, who is able to circumvent our
security measures could misappropriate information.

Actual
or anticipated attacks and risks may cause us to incur increasing costs, including costs to deploy additional personnel and protection
technologies, to conduct additional employee training, and to engage third party security experts and consultants. Our technology
errors and omissions insurance may not protect against all of the costs, liabilities, and other adverse effects arising from a
security breach or system failure. If we fail to reasonably maintain the security of confidential information, we may suffer significant
reputational and financial losses and our results of operations, cash flows, financial condition, and liquidity may be adversely
affected. In addition, a system breach could result in other negative consequences, including disruption of internal operations,
and may subject us to private litigation, government investigations, enforcement actions, and cause us to incur potentially significant
liability, damages, or remediation costs.

Gross
margins for our products may fluctuate or erode.

Gross
margins in some of our segments are volatile and could decline in the future due to competitive price reductions that are not
fully offset by material cost reductions. In addition, our overall gross margin may fluctuate from period to period due to a number
of factors, including product mix, competition and unit volumes. In particular, the average selling prices of a specific product
tend to decrease over that product’s life. To offset such decreases, we intend to rely primarily on component cost reduction,
obtaining yield improvements and corresponding cost reductions in the manufacturing of existing products and on introducing new
products that incorporate advanced features and therefore can be sold at higher average selling prices. However, there can be
no assurance that we will be able to obtain any such yield improvements or cost reductions or introduce any such new products
in the future. To the extent that such cost reductions and new product introductions do not occur in a timely manner or our products
do not achieve market acceptance, our business, financial condition and results of operations could be materially adversely affected.

We
may experience unique economic and political risks associated with companies that operate in Taiwan.

Our
principal manufacturing facilities, where we manufacture most of our consumer products, are located in Taiwan. Relations between
Taiwan and the People’s Republic of China, also referred to as the PRC, and other factors affecting the political or economic
conditions of Taiwan in the future could materially affect our business, financial condition and results of operations and the
market price and the liquidity of our shares.

la
PRC asserts sovereignty over all of China, including Taiwan, certain other islands and all of mainland China. The PRC government
does not recognize the legitimacy of the Taiwan government. Although significant economic and cultural relations have been established
during recent years between Taiwan and the PRC, the PRC government has indicated that it may use military force to gain control
over Taiwan in certain circumstances, such as the declaration of independence by Taiwan. The United States’ relations with Taiwan
are governed by the 1979 Taiwan Relations Act, which signifies when the U.S. switched diplomatic recognition from Taiwan to the
PRC, referred to as the “one-China” policy. Deviations from the “one-China” policy could lead to adverse changes
in China-U.S. and China-Taiwan relations and could adversely affect our operations in Taiwan in the future.

Changes
in our United States federal income tax classification, or that of our subsidiaries, could result in adverse tax consequences
to our 10% or greater U.S. shareholders.

la
Tax Cuts and Jobs Act (the “2017 Act”) signed on December 22, 2017 may have changed the consequences to U.S. shareholders
that own, or are considered to own, as a result of the attribution rules, ten percent or more of the voting power or value of
the stock of a non-U.S. corporation (a 10% U.S. shareholder) under the U.S. Federal income tax law applicable to owners of U.S.
controlled foreign corporations (“CFCs”).

Prior
to the 2017 Act, the Company did not believe we, or any of our non-U.S. subsidiaries, were considered a CFC, which is a determination
made daily based on whether the 10% U.S. shareholders together own, or are considered to own as a result of the attribution rules,
more than fifty percent of the voting power or value of a non-U.S. corporation.  The 2017 Act repealed Internal Revenue Code
Section 958(b)(4), which, unless clarified in future regulations or other guidance, may result in classification of certain of
the Company’s foreign subsidiaries as CFCs with respect to any single 10% U.S. shareholder. This may be the result without
regard to whether 10% U.S. shareholders together own, directly or indirectly, more than fifty percent of the voting power or value
of the Company as was the case under prior rules. The repeal is effective as of the last taxable year of CFCs beginning before
January 1, 2018 and for the taxable year of 10% U.S. shareholders in which the CFCs’ taxable year ends.

Additional
tax consequences to 10% U.S. shareholders of a CFC may result from other provisions of the 2017 Act. For example, the 2017 Act
amended Section 965 to require 10% U.S. shareholders to include in income their pro-rata share of certain earnings and profits
(E&P) of CFCs.  This Section 965 inclusion is accompanied by a partial dividends-received deduction.  The 2017 Act
also added Section 951A which requires a 10% U.S. shareholder of a CFC to include in income its pro-rata share of the global intangible
low-taxed income (GILTI) of the CFC.  Finally, the 2017 Act eliminated the requirement in Section 951(a) necessitating that
a foreign corporation be considered a CFC for an uninterrupted period of at least 30 days in order for a 10% U.S. shareholder
to have a current income inclusion.

Tól től
time to time, the Company may elect to employ antidilutive measures such as a stock buyback program. These measures could inadvertently
create additional 10% U.S. shareholders and thus trigger adverse tax consequences for those shareholders as described above. We
urge shareholders to consult their individual tax advisers for advice regarding the 2017 Act revisions to the U.S. Federal income
tax law applicable to owners of CFCs given the current uncertainty regarding their scope of applicability.

Some
of our products are subject to governmental regulation or certification. Failure to obtain required certifications of our products
on a timely basis, either due to government shutdown or other delays in the certification process, could harm our business.

Federal
Aviation Administration (FAA) certification is required for all of our aviation products that are intended for installation in
type-certificated aircraft. To the extent required, certification is an expensive and time-consuming process that requires significant
focus and resources. An inability to obtain, or excessive delay in obtaining, such certifications could have an adverse effect
on our ability to introduce new products and, for certain aviation OEM products, our customers’ ability to sell airplanes.
Delays in our obtaining certification for our aviation products have resulted, and may in the future result in our being required
to pay compensation to our customers. Additionally, failure of the United States Congress to appropriate funds for FAA operations
that results in a shut down of FAA operations or furloughing of FAA employees, due to partial or complete government shutdowns
or otherwise, could result in delays in the required FAA certification of our avionics products and in the production, sale and
registration of aircraft that use our avionics products. Therefore, such inabilities or delays could have a material adverse effect
on our business and financial results. In addition, we cannot assure that our certified products will not be decertified. Any
such decertification could have an adverse effect on our operating results.

Ban ben
addition, in accordance with FCC rules and regulations, wireless transceiver products are required to be certified by the FCC
in the United States and comparable authorities in foreign countries where they are sold. Garmin’s products sold in Europe
are required to comply with relevant directives of the European Commission. A delay in receiving required certifications for new
products, or enhancements to Garmin’s products, or losing certification for Garmin’s existing products could adversely
affect our business.

Our
business may suffer if we are not able to hire and retain sufficient qualified personnel or if we lose our key personnel.

Our
future success depends partly on the continued contribution of our key executive, engineering, sales, marketing, manufacturing
and administrative personnel. We currently do not have employment agreements with any of our key executive officers. Swiss law
prohibits us from paying severance payments to our senior executive officers, which may impair our ability to recruit for these
positions. We do not have key person life insurance on any of our key executive officers and do not currently intend to obtain
such insurance. The loss of the services of any of our senior level management, or other key employees, could harm our business.
Recruiting and retaining the skilled personnel we require to maintain and grow our market position may be difficult. Például,
in some recent years there has been a nationwide shortage of qualified engineers in the United States who are necessary for us
to design and develop new products, and therefore, it has sometimes been challenging to recruit such personnel. If we fail to
hire and retain qualified employees, we may not be able to maintain and expand our business.

Our
quarterly operating results are subject to fluctuations and seasonality.

Our
operating results are difficult to predict. Our future quarterly operating results may fluctuate significantly. If such operating
results decline, the price of our stock could decline. As we have expanded our operations, our operating expenses, particularly
our research and development costs, have increased as a percentage of our sales in some periods. If revenues decrease and we continue
to increase research and development costs, our operating results would be negatively affected.

Historically,
our revenues have been weaker in the first quarter of each fiscal year as many of our devices are highly consumer-oriented, and
consumer buying is traditionally lower in this quarter. Sales of certain of our fitness, outdoor, marine and automotive products
tend to be higher in our second fiscal quarter due to increased consumer spending for such products in the spring season and travel
season. Sales of many of our consumer products also have been higher in our fourth fiscal quarter due to increased consumer spending
patterns on electronic devices during the holiday season. In addition, we attempt to time our new product releases to coincide
with relatively higher consumer spending in the second and fourth fiscal quarters, which contributes to these seasonal variations.

We
rely on independent dealers and distributors to sell our products, and disruption to these channels would harm our business.

Because
we sell many of our products to independent dealers and distributors, we are subject to many risks, including risks related to
their inventory levels and support for our products. In particular, our dealers and distributors maintain significant levels of
our products in their inventories. If dealers and distributors attempt to reduce their levels of inventory or if they do not maintain
sufficient levels to meet customer demand, our sales could be negatively impacted.

Many
of our dealers and distributors also sell products offered by our competitors. If our competitors offer our dealers and distributors
more favorable terms, those dealers and distributors may de-emphasize or decline to carry our products. In the future, we may
not be able to retain or attract a sufficient number of qualified dealers and distributors. If we are unable to maintain successful
relationships with dealers and distributors or to expand our distribution channels, our business will suffer.

We
may pursue strategic acquisitions, investments, strategic partnerships or other ventures, and our business could be materially
harmed if we fail to successfully identify, evaluate, complete, and integrate such transactions.

We
intend to evaluate acquisition opportunities and opportunities to make investments in complementary businesses, technologies,
services or products, or to enter into strategic partnerships with parties who can provide access to those assets, additional
product or services offerings, additional distribution or marketing synergies or additional industry expertise. We may not be
able to identify suitable acquisition, investment or strategic partnership candidates, or if we do identify suitable candidates
in the future, we may not be able to complete those transactions on commercially favorable terms, or at all.

Any
past or future acquisition could also result in difficulties assimilating acquired employees, operations, and products and diversion
of capital and management’s attention away from other business issues and opportunities. Integration of acquired companies
may result in problems related to integration of technology and inexperienced management teams. Due diligence performed prior
to closing acquisitions may not uncover certain risks or liabilities that could materially impact our business and financial results.
In addition, the key personnel of the acquired company may decide not to work for us. We may not successfully integrate internal
controls, compliance under the Sarbanes-Oxley Act of 2002, the GDPR and other corporate governance and regulatory matters, operations,
personnel or products related to acquisitions we may make in the future. If we fail to successfully integrate such transactions,
our business could be materially harmed.

There
is uncertainty as to our shareholders’ ability to enforce certain foreign civil liabilities in Switzerland and Taiwan.

We
are a Swiss company and a substantial portion of our assets are located outside the United States, particularly in Taiwan. As
a result, it may be difficult to effect service of process within the United States upon us. In addition, there is uncertainty
as to whether the courts of Switzerland or Taiwan would recognize or enforce judgments of United States courts obtained against
us predicated upon the civil liability provisions of the securities laws of the United States or any state thereof, or be competent
to hear original actions brought in Switzerland or Taiwan against us predicated upon the securities laws of the United States
or any state thereof.

Many
of our products rely on the Global Positioning System and other Global Satellite Navigation Systems (GNSS).

la
Global Positioning System (GPS) is a satellite-based navigation and positioning system consisting of a constellation of orbiting
satellites. The satellites and their ground control and monitoring stations are maintained and operated by the United States Department
of Defense. The Department of Defense does not currently charge users for access to the satellite signals. These satellites and
their ground support systems are complex electronic systems subject to electronic and mechanical failures and possible sabotage.
The satellites were originally designed to have lives of 7.5 years and are subject to damage by the hostile space environment
in which they operate. However, of the current deployment of satellites in place, some have been operating for more than 20 years.

To
repair damaged or malfunctioning satellites is currently not economically feasible. If a significant number of satellites were
to become inoperable, there could be a substantial delay before they are replaced with new satellites. A reduction in the number
of operating satellites may impair the current utility of the GPS system and the growth of current and additional market opportunities.
GPS satellites and ground control segments are being modernized. GPS modernization software updates can cause problems. We depend
on public access to open technical specifications in advance of GPS updates.

GPS
is operated by the U.S. Government, which is committed to maintenance and improvement of GPS; however, if the policy were to change,
and GPS were no longer supported by the U.S. Government, or if user fees were imposed, it could have a material adverse effect
on our business, results of operations, and financial condition.

Some
of our products also use signals from Satellite Based Augmentation Systems (SBAS) that augment GPS, such as the U.S. Wide Area
Augmentation System (WAAS), Japanese MTSAT-based Satellite Augmentation System (MSAS), and European Geostationary Navigation Overlay
Service (EGNOS). Any curtailment of SBAS operating capability could result in decreased user capability for many of our aviation
products, thereby impacting our markets.

Some
of our products also use satellite signals from the Russian GLONASS System. Other countries, including China and India, are in
the process of creating their own GNSS systems, and we either have developed or will develop products which use GNSS signals from
these systems. The European community is developing an independent radio navigation satellite system, known as Galileo. National
or European authorities may provide preferential access to signals to companies associated with their markets, including our competitors,
which could harm our competitive position. Use of non-US GNSS signals may also be subject to FCC waiver requirements and to restrictions
based upon international trade or geopolitical considerations. If we are unable to develop timely and competitive commercial products
using these systems, or obtain timely and equal access to service signals, it could result in lost revenue.

Any
of the foregoing factors could affect the willingness of buyers of our products to select Global Positioning System-based products
instead of products based on competing technologies.

Our
business is subject to disruptions and uncertainties caused by geopolitical instability, war or terrorism.

Acts
of war or acts of terrorism, especially any directed at the GPS signals, could have a material adverse impact on our business,
operating results, and financial condition. The threat of terrorism and war and heightened security and military response to this
threat, or any future acts of terrorism, may cause a redeployment of the satellites used in GPS or interruptions of the system.
To the extent that such interruptions have an effect on sales of our products, this could have a material adverse effect on our
business, results of operations, and financial condition.

la
shut down of airspace or imposition of restrictions on general aviation would harm our business. The shutdown of airspace could
cause reduced sales of our general aviation products and delays in the shipment of our products manufactured in our Taiwan manufacturing
facilities to our global distribution facilities, thereby adversely affecting our ability to supply new and existing products
to our dealers and distributors.

Any
reallocation or repurposing of radio frequency spectrum could cause harmful interference with the reception of Global Positioning
System signals. This interference could harm our business.

Our
Global Positioning System technology is dependent on the use of the Standard Positioning Service (SPS) provided by the U.S. Government’s
Global Positioning System satellites. The Global Positioning System operates in radio frequency bands that are globally allocated
for radio navigation satellite services. International allocations of radio frequency are made by the International Telecommunications
Union (ITU), a specialized technical agency of the United Nations. These allocations are further governed by radio regulations
that have treaty status and which may be subject to modification every two to three years by the World Radio Communication Conference. 
Each country also has regulatory authority on how each band is used.  In the United States, the FCC and the National Telecommunications
and Information Administration (NTIA) share responsibility for radio frequency allocations and spectrum usage regulations.

Any
ITU or national reallocation of radio frequency spectrum, including frequency band segmentation or sharing of spectrum, or other
modifications of the permitted uses of relevant frequency bands, may materially and adversely affect the utility and reliability
of our products and have significant negative impacts on our business and our customers.

Natural
disasters, catastrophic events, or climate change could affect our financial results.

Natural
disasters and extreme weather events, such as tsunamis or earthquakes, could occur in a region where we have a manufacturing or
warehousing facility which would cause disruptions in our business operations or loss of inventory. If our backup and recovery
plans are not sufficient to minimize business disruption and/or if our insurance is not sufficient to recover the costs associated
with these types of events, our financial results could be adversely affected.

Climate
change can also pose a risk to our business due to evolving regulatory and legislative measures surrounding climate change. la
Environmental Protection Agency has begun to regulate greenhouse gas emissions under the authority granted to it under the Clean
Air Act. At the federal legislative level, Congressional passage of legislation adopting some form of federal mandatory greenhouse
gas emission reduction, such as a nationwide cap-and-trade program, does not appear likely at this time, although it could be
adopted at a future date. It is also possible that the U.S. Congress may pass alternative climate change bills that do not mandate
a nationwide cap-and-trade program and instead focus on promoting renewable energy and energy efficiency, which could increase
the cost of doing business.

Because
it is uncertain what laws and regulations will be enacted, we cannot predict the potential impact of such laws and regulations
on our future consolidated financial condition, results of operations or cash flows.

Risks
Relating to Our Shares

la
volatility of our stock price could adversely affect investment in our common shares.

la
market price of our shares has been, and may continue to be, highly volatile.  During 2018, the closing price of our shares
ranged from a low of $57.66 to a high of $70.05. A variety of factors could cause the price of our shares to fluctuate, perhaps
substantially, including:

nouveau
products or product enhancements by us or our competitors;

Tábornok
conditions in the worldwide economy, including fluctuations in interest rates and global currency exchange rates;
bejelentések
of technological innovations;
termék
obsolescence and our ability to manage product transitions;
fejlemények
in our relationships with our customers and suppliers;
la
availability, pricing and timeliness of delivery of components, such as flash memory and liquid crystal displays, used in our
products;
negyedévenként
fluctuations in our actual or anticipated operating results;
változtatások
in applicable tax laws and tax rates;
fejlemények
in patents or other intellectual property rights and litigation;
bejelentések
and rumors of developments related to our business, our competitors, our suppliers or the markets in which we compete;
kutatás
reports or opinions issued by securities analysts or brokerage houses related to Garmin, our competitors, our suppliers or our
customers;
bármi
significant acts of terrorism against the United States, Taiwan or significant markets where we sell our products; et
other
                                         factors as discussed in the previously listed risks.

Ban ben
addition, in recent years the stock market in general and the markets for shares of technology companies in particular, have experienced
extreme price fluctuations which have often been unrelated to the operating performance of affected companies.  Any such
fluctuations in the future could adversely affect the market price of our common shares.

Our
officers and directors exert substantial influence over us.

As
of January 17, 2019, members of our Board of Directors, and our executive officers, together with members of their families and
entities that may be deemed affiliates of or related to such persons or entities, beneficially owned approximately 31.79% of our
outstanding shares. Accordingly, these shareholders may be able to determine the outcome of corporate actions requiring shareholder
approval, such as mergers and acquisitions and shareholder proposals. This level of ownership may have a significant effect in
delaying, deferring, or preventing a change in control of Garmin and may adversely affect the voting and other rights of other
holders of our common shares.

la
rights of our shareholders are governed by Swiss law.

la
rights of our shareholders are governed by Swiss law and Garmin Ltd.’s articles of association. The rights of shareholders
under Swiss law differ from the rights of shareholders of companies incorporated in other jurisdictions. For example, Swiss law
allows our shareholders acting at a shareholders’ meeting to authorize share capital that can be issued by the board of
directors without approval of a shareholders’ meeting, but this authorization is limited to 50% of the existing registered
share capital and must be renewed at a shareholders’ meeting at least every two years for it to continue to be available.
Additionally, subject to specified exceptions, including the exceptions described in our articles of association, Swiss law grants
preemptive rights to existing shareholders to subscribe for new issuances of shares and other securities. Swiss law also does
not provide as much flexibility in the various terms that can attach to different classes of shares as the laws of some other
jurisdictions. Swiss law also reserves for approval by shareholders certain corporate actions over which a board of directors
would have authority in some other jurisdictions. For example, Swiss law provides that dividends and other distributions must
be approved by shareholders at the general meeting of shareholders. These Swiss law requirements relating to our capital management
may limit our flexibility, and situations may arise where greater flexibility would have provided substantial benefits to our
shareholders.

We
have limited capital reserves from which to make distributions or repurchase shares without subjecting our shareholders Swiss
withholding tax.

If we are unable to make distributions, if any, through a reduction of par value or to pay dividends, if any, out of qualifying
capital contribution reserves, then any dividends paid by us will generally be subject to a Swiss federal withholding tax at a
rate of 35%. Over the long term, the amount of par value and qualifying capital contribution reserves available for us to use
for par value reductions or dividends will be limited.  The withholding tax must be withheld from the gross distribution
and paid to the Swiss Federal Tax Administration. A U.S. holder that qualifies for benefits under the Convention between the United
States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income may apply for
a refund of the tax withheld in excess of the 15% treaty rate (or in excess of the 5% reduced treaty rate for qualifying corporate
shareholders with at least 10% participation in our voting stock, or for a full refund in case of qualified pension funds). However,
there can be no assurance that our shareholders will approve a reduction in par value or a dividend out of qualifying capital
contribution reserves, that we will be able to meet the other legal requirements for a reduction in par value, or that Swiss withholding
rules will not be changed in the future or that a change in Swiss law will not adversely affect us or our shareholders, in particular
as a result of distributions out of qualifying capital contribution reserves becoming subject to additional corporate law or other
restrictions. If we are unable to make a distribution through a reduction in par value or to pay a dividend out of qualifying
capital contribution reserves, we may not be able to make distributions without subjecting our shareholders to Swiss withholding
adók

Under
current Swiss tax law, repurchases of shares for the purposes of capital reduction are treated as a partial liquidation subject
to 35% Swiss withholding tax on the difference between the par value and the repurchase price. However, the portion of the repurchase
price that is attributed to qualifying capital contribution reserves of the shares repurchased will not be subject to the Swiss
withholding tax. Therefore, repurchase of our own shares further limits the amount of qualifying capital reserves available for
distributions to shareholders free of Swiss withholding taxes.  No partial liquidation treatment applies and no withholding
tax is triggered if the shares are not repurchased for cancellation but held by us as treasury shares to the extent sufficient
qualifying capital reserves are available. However, should we not resell such treasury shares within six years and there is not
sufficient qualifying capital contribution reserves, the withholding tax becomes due at the end of the six-year period.

We
may follow a share repurchase process for future share repurchases, if any, similar to a “second trading line” on the
SIX Swiss Exchange in which Swiss institutional investors buy shares on the open market and sell these shares to us and are generally
able to receive a refund of the Swiss withholding tax. However, if we are unable to use this process successfully, we may not
be able to repurchase shares for the purposes of capital reduction without subjecting our shareholders to Swiss withholding taxes
if and to the extent that the repurchase of shares is made out of retained earnings or other taxable reserves. No withholding
tax would be applicable if and to the extent that qualifying capital contribution reserves are attributable to the share repurchase.

We
have certain limitations on our ability to repurchase and hold our own shares.

Under Swiss law we have certain limitations on our ability to repurchase and hold our own shares. We and our subsidiaries
may only repurchase and hold our own shares to the extent that sufficient freely distributable reserves (including contributed
surplus as determined for Swiss tax and statutory purposes) are available. The aggregate par value of our registered shares held
by us and our subsidiaries may not exceed 10% of our registered share capital. We may repurchase our registered shares beyond
the statutory limit of 10%, however, if our share-holders have adopted a resolution at a general meeting of shareholders authorizing
the board of directors to repurchase registered shares in an amount in excess of 10% and the repurchased shares are dedicated
for cancellation. Our ability to repurchase and hold our own shares has been a component of our capital management and shareholder
return practices, and any restriction on our ability to repurchase our shares could make our stock less attractive to investors.

Item
1B. Unresolved Staff Comments

None.

Item
2. Properties

Garmin
and its subsidiaries own a majority of their principal properties and lease certain other properties. Depending on location, the
properties could be used for manufacturing, warehousing, research and development, office space, or a combination. Garmin’s
principal properties are described below:

Garmin
International, Inc. and Garmin USA, Inc. own and occupy facilities of approximately 1,990,000 square feet on approximately 107
acres in Olathe, Kansas, where the majority of product design and development work is conducted, the majority of aviation panel-mount
products are manufactured, and products are warehoused, distributed, and supported for North, Central and South America.

Garmin
International, Inc. leases 148,000 square feet of land at New Century Airport in Gardner, Kansas under a ground lease and occupies
two aircraft hangars on this land, one of which is owned (47,000 square feet) and the other leased (53,000 square feet). Both
properties serve as flight test and certification facilities that are used in development and certification of aviation products.

Ban ben
October 2018, Garmin International, Inc. completed the construction of a new 775,000 square foot manufacturing and distribution
center in Olathe, Kansas, which concluded the first phase of an expansion project that began in 2016. The second phase of the
expansion will include renovation of the existing warehouse and manufacturing center into a research and development facility
and supporting office space. In connection with the bond financings for the facility in Olathe and the expansions of that facility,
the City of Olathe holds the legal title to the Olathe facility, which is leased to Garmin’s subsidiaries by the City. Upon
the payment in full of the outstanding bonds, the City of Olathe is obligated to transfer title to Garmin’s subsidiaries
for the aggregate sum of $200. Garmin International, Inc. has purchased all the outstanding bonds and expects to continue to hold
the bonds until maturity in order to benefit from property tax abatement.

Garmin
AT, Inc. leases approximately 18 acres of land in Salem, Oregon under a ground lease. This ground lease expires in 2030, but Garmin
AT, Inc. has the option to extend the ground lease until 2050. Garmin AT, Inc. owns and occupies a 115,000 square foot facility
for office, development and manufacturing use and a 33,000 square foot aircraft hangar, flight test and certification facility
on this land. Garmin AT, Inc. also owns and occupies an additional 66,000 square foot facility on the same property for Garmin’s
West Coast customer support call center and for research and development activities.

Garmin
Corporation owns and occupies 247,000 and 185,000 square foot facilities in Xizhi Dist., New Taipei City, Taiwan, a 224,000 square
foot facility in Jhongli, Tao-Yang County, Taiwan, and a 576,000 square foot facility in LinKou, Tao-Yang County, Taiwan. These
facilities are used for the manufacturing and warehousing of most of Garmin’s consumer and portable aviation products, as
well as some research and development activities and the marketing and support of products for Asia Pacific countries. Garmin
China YangZhou Co., Ltd. also leases a 204,000 square foot manufacturing facility in Yangzhou, Jiangsu, People’s Republic
of China.

Garmin
(Europe) Ltd. owns and occupies a 155,000 square foot building located in Totton, Southampton, England, used as offices and a
distribution facility.

Garmin
also owns and leases other properties, both internationally and domestically, not described above, that are used for office space,
retail, and warehousing.

Item
3. Legal Proceedings

PulseOn
Oy v. Garmin (Europe) Ltd.

On
November 11, 2016, PulseOn Oy filed suit in the Patents Court in London, England, against Garmin (Europe) Ltd. alleging infringement
of alleged UK unregistered design rights and Registered European Community Design No. 002473769-0004 (the “0004 Design”)
and Registered European Community Design No. 002473769-005 (the “0005 Design”) by certain Garmin products with wrist-worn
heart rate monitors. A trial was held in November 2017. During the trial PulseOn abandoned its claim of infringement of alleged
UK unregistered design rights. On January 18, 2018 the court issued a judgment holding that no accused Garmin products infringed
either the 0004 Design or the 0005 Design. On February 21, 2018, PulseOn Oy filed an application with the Court of Appeal in England
seeking leave to appeal the judgment of the Patent Court issued on January 18, 2018, holding that no accused Garmin products infringed
either of the Registered Community Designs asserted by PulseOn Oy. Leave to appeal was granted and the hearing of PulseOn’s
appeal before the Court of Appeal took place on January 30 and 31, 2019. On February 13, 2019, the Court of Appeal issued its
judgment dismissing PulseOn’s appeal.

Ban ben
the normal course of business, the Company and its subsidiaries are parties to various legal claims, actions, and complaints,
including matters involving patent infringement, other intellectual property, product liability, customer 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 Company’s management does not expect that
the results in any of these legal proceedings will have a material adverse effect on the Company’s results of operations,
financial position or cash flows.

la
Company settled or resolved certain other matters during the fiscal year ended December 29, 2018 that did not individually or
in the aggregate have a material impact on the Company’s financial condition or results of operations.

Item
4. Mine Safety Disclosure

None.

Executive
Officers of the Registrant

Pursuant
to General Instruction G(3) of Form 10-K and instruction 3 to paragraph (b) of Item 401 of Regulation S-K, the following list
is included as an unnumbered Item in Part I of this Annual Report on Form 10-K in lieu of being included in the Company’s
Definitive Proxy Statement in connection with its annual meeting of shareholders scheduled for June 7, 2019.

Dr.
Min H. Kao
, age 70, has served as Executive Chairman of Garmin Ltd. since January 2013 and was previously Chairman of Garmin
Ltd. from August 2004 to December 2012 and Co-Chairman of Garmin Ltd. from August 2000 to August 2004. He served as Chief Executive
Officer of Garmin Ltd. from August 2002 to December 2012 and previously served as Co-Chief Executive Officer from August 2000
to August 2002. Dr. Kao served as a director and officer of various subsidiaries of the Company from August 1990 until January
2013. Dr. Kao holds Ph.D. and MS degrees in Electrical Engineering from the University of Tennessee and a BS degree in Electrical
Engineering from National Taiwan University.

Clifton
A. Pemble
, age 53, has served as a director of Garmin Ltd. since August 2004. He has served as President and Chief Executive
Officer of Garmin Ltd. since January 2013. Previously, he served as President and Chief Operating Officer of Garmin Ltd. from
October 2007 to December 2012, and is currently maintaining the role of principal operating officer. Previously, he was Vice President,
Engineering of Garmin International, Inc. from 2005 to October 2007, Director of Engineering of Garmin International, Inc. from
2003 to 2005, and Software Engineering Manager of Garmin International, Inc. from 1995 to 2002 and a Software Engineer with Garmin
International, Inc. from 1989 to 1995. Mr. Pemble has served as a director and officer of various Garmin subsidiaries since August
2003. Mr. Pemble holds BA degrees in Mathematics and Computer Science from MidAmerica Nazarene University.

Douglas
G. Boessen
, age 56, has served as Chief Financial Officer and Treasurer of Garmin Ltd. since July 2014. He previously served
as Chief Financial Officer of EiKO Global, LLC from September 2013 to May 2014, as well as Collective Brands, Inc. from November
1997 to November 2012. Mr. Boessen has served as a director and officer of various Garmin subsidiaries since July 2014. Mr. Boessen
is a certified public accountant and holds a BS degree in Business from the University of Central Missouri and is a graduate of
the executive development program at Northwestern University’s Kellogg Graduate School of Management.

Andrew
R. Etkind
, age 63, has served as Vice President, General Counsel and Secretary of Garmin Ltd. since June 2009. He was previously
General Counsel and Secretary of Garmin Ltd. from August 2000 to June 2009. He has been Vice President and General Counsel of
Garmin International, Inc. since July 2007, General Counsel since February 1998, and Secretary since October 1998. Mr. Etkind
has served as a director and officer of various Garmin subsidiaries since December 2001. Mr. Etkind holds BA, MA and LLM degrees
from Cambridge University, England and a JD degree from the University of Michigan Law School.

All
executive officers are elected by and serve at the discretion of the Company’s Board of Directors. None of the executive
officers have an employment agreement with the Company. There are no arrangements or understandings between the executive officers
and any other person pursuant to which he or she was or is to be selected as an officer. There is no family relationship among
any of the executive officers. Dr. Min H. Kao is the brother of Ruey-Jeng Kao, who is a supervisor of Garmin Corporation, Garmin’s
Taiwan subsidiary, who serves as an ex-officio member of Garmin Corporation’s Board of Directors.

PART
II

Item
5. Market for the Company’s Common Shares, Related Shareholder Matters and Issuer Purchases of Equity Securities

Garmin’s shares
have traded on The Nasdaq Stock Market, LLC under the symbol “GRMN” since its initial public offering on December
8, 2000 (the “IPO”). As of February 15, 2019, there were 180 shareholders of record.

la
Board of Directors approved a share repurchase program on February 13, 2015, authorizing the Company to repurchase up to $300
million of the Company’s shares as market and business conditions warrant. The share repurchase authorization expired on
December 31, 2017. The Company made no repurchases of shares during the year ended December 29, 2018. See Note 11 for additional
information regarding the share repurchase plan.

We
refer you to Item 12 of this report under the caption “Equity Compensation Plan Information” for certain equity plan
information required to be disclosed by Item 201(d) of Regulation S-K.

Stock
Performance Graph

This
performance graph shall not be deemed ’‘filed’’ with the SEC or subject to Section 18 of the Securities
Exchange Act of 1934, nor shall it be deemed incorporated by reference in any of our filings under the Securities Act of 1933,
as amended.

la
graph below matches Garmin Ltd.’s cumulative 5-Year total shareholder return on common stock with the cumulative total returns
of the Nasdaq Composite index and the Nasdaq 100 index. The graph tracks the performance of a $100 investment in our common stock
and in each index (with the reinvestment of all dividends) from 12/31/2013 to 12/31/2018.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*

Among Garmin Ltd., the NASDAQ Composite Index and the NASDAQ 100 Index

*$100 invested on 12/31/13
    in stock or index, including reinvestment of dividends.
Fiscal year ending December 31.

12/13 12/14 12/15 12/16 12/17 12/18
Garmin Ltd. 100.00 118.40 87.53 119.57 152.55 167.55
NASDAQ Composite 100.00 114.62 122.81 133.19 172.11 165.84
NASDAQ 100 100.00 120.99 136.23 148.44 198.95 198.30

la
stock price performance included in this graph is not necessarily indicative of future stock price performance.

Item
6. Selected Financial Data

la
following table sets forth selected consolidated financial data of the Company. The selected consolidated balance sheet data as
of December 29, 2018 and December 30, 2017 and the selected consolidated statement of income data for the years ended December
29, 2018, December 30, 2017, and December 31, 2016 were derived from the Company’s audited consolidated financial statements
and the related notes thereto which are included in Item 8 of this annual report on Form 10-K. The selected consolidated balance
sheet data as of December 31, 2016, December 26, 2015, and December 27, 2014 and the selected consolidated statement of income
data for the years ended December 26, 2015 and December 27, 2014 were derived from the Company’s audited consolidated financial
statements, not included herein.

la
information set forth below is not necessarily indicative of the results of future operations and should be read together with
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial
statements and notes to those statements included in Items 7 and 8 in Part II of this Form 10-K.

la
Company adopted the new accounting standard for revenue recognition, as discussed in Note 2 – Summary of Significant Accounting
Policies of the Notes to Consolidated Financial Statements, effective beginning with the Company’s first quarter of 2018.
Adoption of the new revenue recognition standard was applied using the full retrospective method, and information for prior periods
within Items 6 and 7 in Part II of this Form 10-K have been restated accordingly.

Ban ben
the table presented below, the consolidated statements of income and balance sheet data for the years ended December 30, 2017
and December 31, 2016 and the balance sheet data for the year ended December 26, 2015 have been restated in accordance with the
Company’s adoption of the new revenue recognition standard.

Years ended (1)
Dec. 29, 2018 Dec. 30, 2017 Dec. 31, 2016 Dec. 26, 2015 Dec. 27, 2014
(in thousands, except per share data)
Consolidated Statements of Income Data:
Net sales $ 3,347,444 $ 3,121,560 $ 3,045,797 $ 2,820,270 $ 2,870,658
Cost of goods sold 1,367,725 1,323,619 1,357,272 1,281,566 1,266,246
Gross profit 1,979,719 1,797,941 1,688,525 1,538,704 1,604,412
Operating expenses:
Advertising expense 155,394 164,693 177,143 167,166 146,633
Selling, general and administrative 478,177 437,977 410,558 394,914 372,032
Research and development 567,805 511,634 467,960 427,043 395,121
Total operating expenses 1,201,376 1,114,304 1,055,661 989,123 913,786
Operating income 778,343 683,637 632,864 549,581 690,626
Other income, net (2)(3) 44,904 13,434 5,761 17,606 33,119
Income before income taxes 823,247 697,071 638,625 567,187 723,745
Income tax provision (benefit) (4) 129,167 (11,936 ) 120,901 110,960 359,534
Net income $ 694,080 $ 709,007 $ 517,724 $ 456,227 $ 364,211
Net income per share:
Basic $ 3.68 $ 3.77 $ 2.74 $ 2.39 $ 1.89
Diluted $ 3.66 $ 3.76 $ 2.73 $ 2.39 $ 1.88
Weighted average common shares outstanding:
Basic 188,635 187,828 188,818 190,631 193,106
Diluted 189,734 188,732 189,343 191,107 194,165
Dividends declared per share $ 2.12 $ 2.04 $ 2.04 $ 2.04 $ 1.92
Balance Sheet Data (at end of Period):
Cash and cash equivalents $ 1,201,732 $ 891,488 $ 846,883 $ 833,070 $ 1,196,268
Marketable securities 1,513,112 1,421,720 1,480,237 1,558,548 1,575,333
Total assets 5,382,858 4,948,289 4,484,549 4,478,529 4,693,303
Total debt
Total stockholders’ equity 4,162,974 3,852,419 3,453,259 3,373,734 3,403,367

(1) Our
fiscal year-end is the last Saturday of the calendar year and does not always fall on December 31. All years presented contain
52 weeks excluding Fiscal 2016 which includes 53 weeks.
(2) Other
income, net mainly consists of gain (loss) on sale of marketable securities, interest income, and foreign currency gain (loss).
(3) Includes
$7.6 million, $22.6 million, $31.7 million, $23.5 million, and $4.3 million of foreign currency losses in 2018, 2017, 2016, 2015,
and 2014, respectively.
(4) 2017
– includes $180.0 million income tax benefit primarily related to the revaluation of certain Switzerland deferred tax assets
resulting from the Company’s election to align Switzerland corproate tax positions with international tax initiatives, partially
offset by $22.6 million of income tax expense due to the expiration of certain share-based awards;

2014 – includes $307.6
million income tax expense associated with our inter-company restructuring partially offset by $72.9 million income tax reserve
release due to expiration of certain statutes of limitations or completion of tax audits

Item
7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

la
following discussion and analysis of our financial condition and results of operations focuses on and is intended to clarify the
results of our operations, certain changes in our financial position, liquidity, capital structure and business developments for
the periods covered by the consolidated financial statements included in this Form 10-K. This discussion should be read in conjunction
with, and is qualified by reference to, the other related information including, but not limited to, the audited consolidated
financial statements (including the notes thereto), the description of our business, all as set forth in this Form 10-K, as well
as the risk factors discussed above in Item 1A.

As
previously noted, the discussion set forth below, as well as other portions of this Form 10-K, contain statements concerning potential
future events. Readers can identify these forward-looking statements by their use of such verbs as “expects,” “anticipates,”
“believes” or similar verbs or conjugations of such verbs. If any of our assumptions on which the statements are based
prove incorrect or should unanticipated circumstances arise, our actual results could materially differ from those anticipated
by such forward-looking statements. The differences could be caused by a number of factors or combination of factors including,
but not limited to, those discussed above in Item 1A. Readers are strongly encouraged to consider those factors when evaluating
any such forward-looking statement. Except as may be required by law, we do not undertake to update any forward-looking statements
in this Form 10-K.

Garmin’s
fiscal year is a 52-53 week period ending on the last Saturday of the calendar year. Fiscal years 2018 and 2017 contained 52 weeks
compared to 53 weeks for 2016. Unless otherwise stated, all years and dates refer to the Company’s fiscal year and fiscal
periods. Unless the context otherwise requires, references in this document to “we,” “us,” “our”
and similar terms refer to Garmin Ltd. and its subsidiaries.

Unless
otherwise indicated, dollar amounts set forth in the tables are in thousands, except per share data.

Overview

We
are a leading worldwide provider of navigation, communications and information devices, most of which are enabled by Global Positioning
System, or GPS, technology. We operate in five business segments, which serve the marine, outdoor, fitness, auto, and aviation
markets. Our segments offer products through our network of subsidiary distributors and independent dealers and distributors.
However, the nature of products and types of customers for the five segments can vary significantly. As such, the segments are
managed separately.

Since
our first products were delivered in 1991, we have generated positive income from operations each year and have funded our growth
from these profits.

Critical
Accounting Policies and Estimates

General

Garmin’s
discussion and analysis of its financial condition and results of operations are based upon Garmin’s consolidated financial
statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The presentation
of these financial statements requires Garmin to make estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, Garmin evaluates its
estimates, including those related to customer sales programs and incentives, product returns, bad debts, inventories, investments,
intangible assets, income taxes, warranty obligations, and contingencies and litigation. Garmin bases its estimates on historical
experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form
the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions or conditions.

For
information on each of the following critical accounting policies and/or estimates, refer to the discussion in the Notes to the
Consolidated Financial Statements as indicated in the table below:

Intangible
    Assets
jegyzet
    2 – Summary of Significant Accounting Policies
Revenue
    Recognition
jegyzet
    2 – Summary of Significant Accounting Policies & Note 13 – Revenue
Product
    Warranty
jegyzet
    2 – Summary of Significant Accounting Policies
Legal
    and Other Contingencies
jegyzet
    2 – Summary of Significant Accounting Policies & Note 4 – Commitments and Contingencies
Income
    Taxes
jegyzet
    2 – Summary of Significant Accounting Policies & Note 6 – Income Taxes

Accounting
Terms and Characteristics

Net
Sales

Our
net sales are primarily generated through sales to our retail partners, dealer and distributor network and to original equipment
manufacturers. Refer to the Revenue Recognition discussion in Note 2 to the Consolidated Financial Statements. We aim to achieve
a quick turnaround on orders we receive, and we typically ship most orders within 72 hours. Therefore, we believe that backlog
information is not material to the understanding of our business.

Net
sales are subject to seasonal fluctuation. Typically, sales of our consumer products are highest in the fourth quarter, due to
increased demand during the holiday buying season, and in the second quarter, due to increased demand during the spring and summer
season. Our aviation and auto OEM products do not experience much seasonal variation, but are more influenced by the timing of
aircraft certifications and the release of new products when the initial demand is typically the strongest.

Cost
of Sales/Gross Profit

Raw
material costs are our most significant component of cost of goods sold. Our existing practice of performing the design and manufacture
of our products in-house has enabled us to source components from different suppliers and, where possible, to redesign our products
to leverage lower cost components. We believe that our flexible production model allows our Xizhi, Jhongli, and LinKou manufacturing
plants in Taiwan; Yangzhou manufacturing plant in China; and our Olathe, Kansas, and Salem, Oregon manufacturing plants in the
U.S. to experience relatively low costs of manufacturing. In general, products manufactured in Taiwan have been our highest volume
products. Our manufacturing labor costs historically have been lower in Taiwan and China than in Olathe and Salem.

Sales
price variability has had and can be expected to have an effect on our gross profit. Our gross profit is dependent on segment
mix, and to a lesser extent, product mix within each segment.

Advertising
Expense

Our
advertising expenses consist of costs for media advertising, cooperative advertising with our retail partners, point of sale displays,
and sponsorships.

Selling,
General and Administrative Expenses

Our
selling, general and administrative expenses consist primarily of:

fizetések
for sales, marketing and product support personnel;
fizetések
and related costs for executives and administrative personnel;
marketing,
and other brand building costs;
könyvelés
and legal costs;
információ
systems and infrastructure costs;
utazás
and related costs; et
occupancy
and other overhead costs.

Kutatás
and Development

la
majority of our research and development costs represent salaries for our engineers and costs of test equipment and components
used in product and prototype development.

We
are committed to increasing the level of innovative design and development of new products as we strive for expanded ability to
serve our existing consumer and aviation markets as well as new markets for active lifestyle products.

Income
Taxes

We
have experienced a relatively low effective corporate tax rate due to the proportion of our revenue generated by entities in tax
jurisdictions with low statutory rates. In particular, the profit entitlement afforded our Swiss-based companies based on their
intellectual property rights ownership of our consumer products have contributed to our relatively low effective corporate tax
rate.

Results
of Operations

la
following table sets forth our results of operations as a percentage of net sales during the periods shown (the table may not
foot due to rounding):

52-Weeks
    Ended
52-Weeks
    Ended
53-Weeks
    Ended
December
    29,
December
    30,
December
    31,
2018 2017 2016
Net
vente
100 % 100 % 100 %
Cost
    of goods sold
41 % 42 % 45 %
Gross
    nyereség
59 % 58 % 55 %
Operating
    expenses:
Advertising 5 % 5 % 6 %
Selling,
    general and administrative
14 % 14 % 13 %
Kutatás
    és fejlesztés
17 % 16 % 15 %
Total
    operating expenses
36 % 36 % 35 %
Operating
    jövedelem
23 % 22 % 21 %
Other
    income, net
1 % 0 % 0 %
Income
    before income taxes
25 % 22 % 21 %
Provision
    (benefit) for income taxes
4 % (0 %) 4 %
Net
    jövedelem
21 % 23 % 17 %

la
following table sets forth our results of operations through operating income for each of our five segments during the period
shown. The Company’s CODM uses operating income as the measure of profit or loss to assess segment performance and allocate
resources. Operating income represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed
to each segment. Most costs of goods sold and the majority of operating expenses are also directly attributed to each segment,
while certain other costs of goods sold and operating expenses are allocated to the segments in a manner appropriate to the specific
facts and circumstances of the expenses being allocated. For each line item in the table, the total of the segments’ amounts
equals the amount in the consolidated statements of income data included in Item 6.

52-weeks ended December 29, 2018 Outdoor Fitness Marine Auto Aviation
Net sales $ 809,883 $ 858,329 $ 441,560 $ 634,213 $ 603,459
Cost of goods sold 281,629 386,565 182,804 363,420 153,307
Gross profit 528,254 471,764 258,756 270,793 450,152
Advertising expense 46,041 64,707 18,284 19,155 7,207
Selling, general and administrative expenses 120,588 135,096 97,682 88,672 36,139
Research and development expense 71,115 90,216 79,446 124,968 202,060
Total operating expenses 237,744 290,019 195,412 232,795 245,406
Operating income $ 290,510 $ 181,745 $ 63,344 $ 37,998 $ 204,746
52-weeks ended December 30, 2017 Outdoor Fitness Marine Auto Aviation
Net sales $ 698,867 $ 762,194 $ 374,001 $ 785,139 $ 501,359
Cost of goods sold 250,457 339,558 161,409 442,441 129,754
Gross profit 448,410 422,636 212,592 342,698 371,605
Advertising expense 41,113 75,660 16,101 25,639 6,180
Selling, general and administrative expenses 98,914 119,537 83,765 107,995 27,766
Research and development expense 58,516 80,674 62,398 126,320 183,726
Total operating expenses 198,543 275,871 162,264 259,954 217,672
Operating income $ 249,867 $ 146,765 $ 50,328 $ 82,744 $ 153,933
53-weeks ended December 31, 2016 Outdoor Fitness Marine Auto Aviation
Net sales $ 546,326 $ 818,486 $ 331,947 $ 909,690 $ 439,348
Cost of goods sold 205,822 381,281 148,238 511,988 109,943
Gross profit 340,504 437,205 183,709 397,702 329,405
Advertising expense 31,005 90,871 15,516 33,122 6,629
Selling, general and administrative expenses 77,016 118,753 60,061 127,618 27,110
Research and development expense 48,448 66,985 55,965 125,660 170,902
Total operating expenses 156,469 276,609 131,542 286,400 204,641
Operating income $ 184,035 $ 160,596 $ 52,167 $ 111,302 $ 124,764

Comparison
of 52-Weeks Ended December 29, 2018 and December 30, 2017

Net
Sales

52-Weeks
    ended December 29, 2018
52-Weeks ended December 30, 2017 Year over Year
Net Sales % of Revenue Net Sales % of Revenue $ Change % Change
Outdoor $ 809,883 24 % $ 698,867 22 % $ 111,016 16 %
Fitness 858,329 26 % 762,194 25 % 96,135 13 %
Marine 441,560 13 % 374,001 12 % 67,559 18 %
Auto 634,213 19 % 785,139 25 % (150,926 ) (19 %)
Aviation 603,459 18 % 501,359 16 % 102,100 20 %
Total $ 3,347,444 100 % $ 3,121,560 100 % $ 225,884 7 %

Net
sales increased 7% in 2018 when compared to the year-ago period. All segments had an increase in revenue except for auto. Fitness
revenue represented the largest portion of our revenue mix in 2018 at 26%, and auto revenue represented the largest portion of
our revenue mix in 2017 at 25%.

Total
unit sales decreased 3% to 14.9 million units in 2018 from 15.4 million units in 2017.

Outdoor,
fitness, marine, and aviation revenues increased 16%, 13%, 18%, and 20%, respectively when compared to the year-ago period. la
outdoor and fitness segment revenue increases were primarily driven by growth in wearables. Marine segment revenue increases were
driven by sales growth across most product lines and sales from recent acquisitions. Aviation segment revenue increases were driven
by sales growth across most product lines in both OEM and aftermarket categories. Auto segment revenue decreased 19% from the
year-ago period, primarily due to the ongoing PND market contraction and lower year-over-year OEM sales driven by the timing of
OEM programs.

Cost
of Goods Sold

52-Weeks ended December 29, 2018 52-Weeks ended December 30, 2017 Year over Year
Cost of Goods % of Revenue Cost of Goods % of Revenue $ Change % Change
Outdoor $ 281,629 35 % $ 250,457 36 % $ 31,172 12 %
Fitness 386,565 45 % 339,558 45 % 47,007 14 %
Marine 182,804 41 % 161,409 43 % 21,395 13 %
Auto 363,420 57 % 442,441 56 % (79,021 ) (18 %)
Aviation 153,307 25 % 129,754 26 % 23,553 18 %
Total $ 1,367,725 41 % $ 1,323,619 42 % $ 44,106 3 %

Cost
of goods sold increased 3% in absolute dollars for fiscal year 2018 when compared to fiscal year 2017. The increase in revenue
outpaced the increase in cost of goods sold, which resulted in a 150 basis point decrease in cost of goods sold as a percent of
revenue compared to the prior fiscal year.

la
marine segment decrease in cost of goods sold, as a percent of revenue, primarily resulted from the favorable impact of higher
margin cartography sales on product mix. The outdoor segment decrease in cost of goods sold, as a percent of revenue, was primarily
due to shifts in product mix. In the fitness and aviation segments, cost of goods sold as a percent of revenue was relatively
flat compared to the prior year. The auto segment cost of goods decline was largely consistent with the segment revenue decline.

Gross
Profit

52-Weeks ended December 29, 2018 52-Weeks ended December 30, 2017 Year over Year
Gross Profit % of Revenue Gross Profit % of Revenue $ Change % Change
Outdoor $ 528,254 65 % $ 448,410 64 % $ 79,844 18 %
Fitness 471,764 55 % 422,636 55 % 49,128 12 %
Marine 258,756 59 % 212,592 57 % 46,164 22 %
Auto 270,793 43 % 342,698 44 % (71,905 ) (21 %)
Aviation 450,152 75 % 371,605 74 % 78,547 21 %
Total $ 1,979,719 59 % $ 1,797,941 58 % $ 181,778 10 %

Gross
profit dollars in 2018 increased 10% while gross margin increased 150 basis points when compared to the prior year. Gross margin
increased in the outdoor and marine segments as a result of the reasons discussed above. Gross margins remained relatively flat
as a percent of revenue in the fitness, auto, and aviation segments.

Advertising
Expenses

52-Weeks ended December 29, 2018 52-Weeks ended December 30, 2017
Advertising Advertising Year over Year
Expense % of Revenue Expense % of Revenue $ Change % Change
Outdoor $ 46,041 6 % $ 41,113 6 % $ 4,928 12 %
Fitness 64,707 8 % 75,660 10 % (10,953 ) (14 %)
Marine 18,284 4 % 16,101 4 % 2,183 14 %
Auto 19,155 3 % 25,639 3 % (6,484 ) (25 %)
Aviation 7,207 1 % 6,180 1 % 1,027 17 %
Total $ 155,394 5 % $ 164,693 5 % $ (9,299 ) (6 %)

Advertising
expense decreased 6% in absolute dollars and was relatively flat as a percent of revenue in fiscal year 2018 compared to fiscal
year 2017. The overall decrease in absolute dollars was primarily attributable to decreased media advertising in the fitness segment
and decreased media and cooperative advertising in the auto segment, partially offset by increased media advertising in the outdoor
segment and increased media and cooperative advertising in the marine segment.

Selling,
General and Administrative Expenses

52-Weeks ended December 29, 2018 52-Weeks ended December 30, 2017
Selling, General & Selling, General & Year over Year
Admin. Expenses % of Revenue Admin. Expenses % of Revenue $ Change % Change
Outdoor $ 120,588 15 % $ 98,914 14 % $ 21,674 22 %
Fitness 135,096 16 % 119,537 16 % 15,559 13 %
Marine 97,682 22 % 83,765 22 % 13,917 17 %
Auto 88,672 14 % 107,995 14 % (19,323 ) (18 %)
Aviation 36,139 6 % 27,766 6 % 8,373 30 %
Total $ 478,177 14 % $ 437,977 14 % $ 40,200 9 %

Selling,
general and administrative expense increased 9% in absolute dollars and was relatively flat as a percent of revenue when compared
to the year-ago period. The absolute dollar increase was primarily attributable to expenses from recent acquisitions and personnel
costs, partially offset by a reduction in litigation settlement costs in the marine segment. All segments were relatively flat
as a percent of revenue.

Kutatás
and Development Expense

52-Weeks ended December 29, 2018 52-Weeks ended December 30, 2017
Research & Research & Year over Year
Development % of Revenue Development % of Revenue $ Change % Change
Outdoor $ 71,115 9 % $ 58,516 8 % $ 12,599 22 %
Fitness 90,216 11 % 80,674 11 % 9,542 12 %
Marine 79,446 18 % 62,398 17 % 17,048 27 %
Auto 124,968 20 % 126,320 16 % (1,352 ) (1 %)
Aviation 202,060 33 % 183,726 37 % 18,334 10 %
Total $ 567,805 17 % $ 511,634 16 % $ 56,171 11 %

Kutatás
and development expense increased 11% in absolute dollars when compared to the year-ago period and was relatively flat as a percent
of revenue. The absolute dollar increase was primarily due to engineering personnel costs related to wearable and aviation product
offerings and expenses resulting from recent acquisitions within the marine segment. Our research and development spending is
focused on product development, improving existing software capabilities, and exploring new categories.

Operating
Income

52-Weeks ended December 29, 2018 52-Weeks ended December 30, 2017 Year over Year
Operating Income % of Revenue Operating Income % of Revenue $ Change % Change
Outdoor $ 290,510 36 % $ 249,867 36 % $ 40,643 16 %
Fitness 181,745 21 % 146,765 19 % 34,980 24 %
Marine 63,344 14 % 50,328 13 % 13,016 26 %
Auto 37,998 6 % 82,744 11 % (44,746 ) (54 %)
Aviation 204,746 34 % 153,933 31 % 50,813 33 %
Total $ 778,343 23 % $ 683,637 22 % $ 94,706 14 %

Operating
income increased 14% in absolute dollars and increased 140 basis points as a percent of revenue when compared to fiscal year 2017.
The growth in operating income on an absolute dollar basis and as a percent of revenue was the result of strong revenue growth
and increased gross margins.

Other
Income (Expense)

52-Weeks ended 52-Weeks ended
December 29, 2018 December 30, 2017
Interest income $ 47,147 $ 36,925
Foreign currency (losses) (7,616 ) (22,579 )
Other 5,373 (912 )
Total $ 44,904 $ 13,434

la
average returns on cash and investments, including interest and capital gain/loss returns, during the 52-weeks ended December
29, 2018 and December 30, 2017 were 1.8% and 1.5%, respectively. Interest income increased primarily due to higher yields on fixed-income
securities.

Foreign
currency gains and losses for the Company are typically driven by movements in the Taiwan Dollar, Euro, and British Pound Sterling
in relation to the U.S. Dollar. The Taiwan Dollar is the functional currency of Garmin Corporation, the U.S. Dollar is the functional
currency of Garmin (Europe) Ltd., and the Euro is the functional currency of most of our other European subsidiaries, although
some transactions and balances are denominated in British Pounds. The majority of the Company’s consolidated foreign currency
gain or loss is typically driven by the significant cash and marketable securities, receivables, and payables held in a currency
other than the functional currency at a given legal entity. Due to the relative size of the entities using a functional currency
other than the Taiwan Dollar, Euro, and British Pound Sterling, currency fluctuations related to these entities are not expected
to have a material impact on the Company’s financial statements.

la
$7.6 million currency loss recognized in fiscal 2018 was primarily due to the strengthening of the U.S. Dollar against the Euro
and the British Pound Sterling, offset by the U.S. Dollar strengthening against the Taiwan Dollar. During fiscal 2018, the U.S.
Dollar strengthened 4.7% against the Euro and 6.0% against the British Pound Sterling, resulting in losses of $10.0 million and
$1.7 million, respectively, while the U.S. Dollar strengthened 3.0% against the Taiwan Dollar, resulting in a gain of $15.1 million.
The remaining net currency loss of $11.0 million was related to timing of transactions and impacts of other currencies, each of
which was individually immaterial.

la
$22.6 million currency loss recognized in fiscal 2017 was primarily due to the weakening of the U.S. Dollar against the Taiwan
Dollar, partially offset by the U.S. Dollar weakening against the Euro and the British Pound Sterling. During fiscal 2017, the
U.S. Dollar weakened 9.4% against the Taiwan Dollar, resulting in a loss of $55.9 million, while the U.S. Dollar weakened 14.1%
against the Euro and 9.5% against the British Pound Sterling, resulting in gains of $27.2 million and $3.1 million, respectively.
The remaining net currency gain of $3.0 million was related to timing of transactions and impacts of other currencies, each of
which was individually immaterial.

Income Tax Provision

Our income tax expense
for the fiscal year ended December 29, 2018 was $129.2 million compared to income tax benefit of $11.9 million for the fiscal year
ended December 30, 2017, resulting in a net change of $141.1 million. Contributing to the increase in tax expense was:

Income tax benefit of $180.0 million recorded
in fiscal 2017 primarily related to the revaluation of certain Switzerland deferred tax assets resulting from the Company’s
election in the first quarter of 2017 to align certain Switzerland corporate tax positions with international tax initiatives with
no comparable item in the fiscal year ended December 29, 2018,

Partially offset by:

Income tax benefit of $2.7 million related
to share based compensation in the fiscal year ended December 29, 2018, as compared to income tax expense of $19.9 million in the
fiscal year ended December 30, 2017, and
Income tax benefit of $13.7 million related
to the Company’s net change in uncertain tax positions in the fiscal year ended December 29, 2018, as compared to income
tax expense of $5.4 million in the fiscal year ended December 30, 2017.

Net Income

As a result of the
various factors noted above, income before taxes increased 18% to $823.2 million from $697.1 million in the prior year, while net
income decreased 2% to $694.1 million from $709.0 million in the prior year.

Comparison of 52-Weeks Ended December 30, 2017 and 53-Weeks
Ended December 31, 2016

Net Sales

52-Weeks ended December 30, 2017 53-Weeks ended December 31, 2016 Year over Year
Net Sales % of Revenue Net Sales % of Revenue $ Change % Change
Outdoor $ 698,867 22 % $ 546,326 18 % $ 152,541 28 %
Fitness 762,194 25 % 818,486 27 % (56,292 ) (7 %)
Marine 374,001 12 % 331,947 11 % 42,054 13 %
Auto 785,139 25 % 909,690 30 % (124,551 ) (14 %)
Aviation 501,359 16 % 439,348 14 % 62,011 14 %
Total $ 3,121,560 100 % $ 3,045,797 100 % $ 75,763 2 %

Net sales increased
2% in 2017 when compared to the year-ago period. Outdoor, marine, and aviation segments had an increase in revenue, while fitness
and auto segments had a decrease in revenue. Auto revenue represented the largest portion of our revenue mix in 2017 at 25%, which
was a decline from 30% in 2016.

Total unit sales decreased
8% to 15.4 million units in the 52-weeks ended 2017 from 16.8 million units in the 53-weeks ended 2016.

Outdoor, marine, and
aviation revenues increased 28%, 13%, and 14%, respectively when compared to the year-ago period. Growth in outdoor was driven
by growth in our wearables and subscriptions categories. Our marine segment revenue increased primarily due to growth in chartplotters,
fishfinders, and entertainment systems, and the newly acquired Navionics. Aviation revenues increased due to growth in both OEM
and aftermarket sales. Fitness segment revenue decreased 7% from the year-ago period, primary driven by the general decline of
the basic activity tracker market. Auto segment revenue decreased 14% from the year-ago period, primarily due to the ongoing PND
market contraction.

Cost of Goods Sold

52-Weeks ended December 30, 2017 53-Weeks ended December 31, 2016 Year over Year
Cost of Goods % of Revenue Cost of Goods % of Revenue $ Change % Change
Outdoor $ 250,457 36 % $ 205,822 38 % $ 44,635 22 %
Fitness 339,558 45 % 381,281 47 % (41,723 ) (11 %)
Marine 161,409 43 % 148,238 45 % 13,171 9 %
Auto 442,441 56 % 511,988 56 % (69,547 ) (14 %)
Aviation 129,754 26 % 109,943 25 % 19,811 18 %
Total $ 1,323,619 42 % $ 1,357,272 45 % $ (33,653 ) (2 %)

Cost of goods sold
decreased 2% in absolute dollars for the 52-weeks ended December 30, 2017 when compared to the 53-weeks ended December 31, 2016.

In the outdoor, fitness,
and marine segments, the decrease in cost of goods sold as a percent of revenues was a result of a shift in product mix toward
higher margin products. The aviation segment increase in cost of goods sold was generally consistent with the segment revenue increase.
The auto segment cost of goods decline was largely consistent with the segment revenue decline.

Gross Profit

52-Weeks ended December 30, 2017 53-Weeks ended December 31, 2016 Year over Year
Gross Profit % of Revenue Gross Profit % of Revenue $ Change % Change
Outdoor $ 448,410 64 % $ 340,504 62 % $ 107,906 32 %
Fitness 422,636 55 % 437,205 53 % (14,569 ) (3 %)
Marine 212,592 57 % 183,709 55 % 28,883 16 %
Auto 342,698 44 % 397,702 44 % (55,004 ) (14 %)
Aviation 371,605 74 % 329,405 75 % 42,200 13 %
Total $ 1,797,941 58 % $ 1,688,525 55 % $ 109,416 6 %

Gross profit dollars
in the 52-weeks ended December 30, 2017 increased 6% while gross profit margin increased 220 basis points compared to the 53-weeks
ended December 31, 2016. Growth in sales of higher margin segments contributed to the increase in gross profit dollars and gross
margin percentage. Outdoor, fitness, and marine segment increases to gross profit margin were primarily due to product mix within
those segments. Auto and aviation segment gross margin rates were relatively consistent between fiscal periods.

Advertising Expenses

52-Weeks
    ended December 30, 2017
53-Weeks
    ended December 31, 2016
Year
    over Year
Advertising
Expense
%
    of Revenue
Advertising
Expense
%
    of Revenue
$
    Change
%
    Change
Outdoor $ 41,113 6 % $ 31,005 6 % $ 10,108 33 %
Fitness 75,660 10 % 90,871 11 % (15,211 ) (17 %)
Marine 16,101 4 % 15,516 5 % 585 4 %
Auto 25,639 3 % 33,122 4 % (7,483 ) (23 %)
Aviation 6,180 1 % 6,629 2 % (449 ) (7 %)
Total $ 164,693 5 % $ 177,143 6 % $ (12,450 ) (7 %)

Advertising
expense decreased 7% in absolute dollars and was relatively flat as a percent of revenues in the 52-weeks ended December 30, 2017
compared to the 53-weeks ended December 31, 2016. The decrease in absolute dollars is primarily attributable to decreases in spend
on media advertising.

Selling,
General and Administrative Expenses

52-Weeks
    ended December 30, 2017
53-Weeks
    ended December 31, 2016
Year
    over Year
Selling, General &
Admin. Expenses
%
                                         of Revenue
Selling, General &
Admin. Expenses
%
                                         of Revenue
$
                                         Change
%
                                         Change
Outdoor $ 98,914 14 % $ 77,016 14 % $ 21,898 28 %
Fitness 119,537 16 % 118,753 15 % 784 1 %
Marine 83,765 22 % 60,061 18 % 23,704 39 %
Auto 107,995 14 % 127,618 14 % (19,623 ) (15 %)
Aviation 27,766 6 % 27,110 6 % 656 2 %
Total $ 437,977 14 % $ 410,558 13 % $ 27,419 7 %

Selling,
general and administrative expense increased 7% in absolute dollars and was relatively flat as a percent of revenues in the 52-weeks
ended December 30, 2017 compared to the 53-weeks ended December 31, 2016. The absolute dollar increase is primarily attributable
to legal-related costs and information technology costs. As a percent of revenues, selling, general, and administrative expenses
in all segments except marine were relatively consistent on a year over year basis. The increase in the marine segment, as a percent
of revenue, was primarily related to a litigation settlement.

Kutatás
and Development Expense

52-Weeks
    ended December 30, 2017
53-Weeks
    ended December 31, 2016
Year
    over Year
Kutatás
    &

Development
%
    of Revenue
Kutatás
    &

Development
%
    of Revenue
$
    Change
%
    Change
Outdoor $ 58,516 8 % $ 48,448 9 % $ 10,068 21 %
Fitness 80,674 11 % 66,985 8 % 13,689 20 %
Marine 62,398 17 % 55,965 17 % 6,433 11 %
Auto 126,320 16 % 125,660 14 % 660 1 %
Aviation 183,726 37 % 170,902 39 % 12,824 8 %
Total $ 511,634 16 % $ 467,960 15 % $ 43,674 9 %

Kutatás
and development expense increased 9% due to ongoing development activities for new products and the addition of engineering personnel
throughout the 52-weeks ended December 30, 2017. In absolute dollars, research and development costs increased $43.7 million when
compared with the 53-weeks ended December 31, 2016, and increased 100 basis points as a percent of revenue. Our research and development
spending is focused on product development, improving existing software capabilities, and exploring new categories.

Operating
Income

52-Weeks
    ended December 30, 2017
53-Weeks
    ended December 31, 2016
Year
    over Year
Operating Income % of Revenue Operating Income % of Revenue $ Change % Change
Outdoor $ 249,867 36 % $ 184,035 34 % $ 65,832 36 %
Fitness 146,765 19 % 160,596 20 % (13,831 ) (9 %)
Marine 50,328 13 % 52,167 16 % (1,839 ) (4 %)
Auto 82,744 11 % 111,302 12 % (28,558 ) (26 %)
Aviation 153,933 31 % 124,764 28 % 29,169 23 %
Total $ 683,637 22 % $ 632,864 21 % $ 50,773 8 %

As
a result of the above, operating income increased 8% in absolute dollars and 110 basis points as a percent of revenue when compared
to the 53-weeks ended December 31, 2016. The growth in operating income, both in absolute dollars and as a percent of revenue,
was primarily due to an increase in revenue growth and increase in gross margin percentage, which were partially offset by increased
operating expenses, as discussed above.

Other
Income (Expense)

52-Weeks ended 53-Weeks ended
December 30, 2017 December 31, 2016
Interest
    jövedelem
$ 36,925 $ 33,406
Foreign
    currency (losses)
(22,579 ) (31,651 )
Other (912 ) 4,006
Total $ 13,434 $ 5,761

la
average returns on cash and investments, including interest and capital gain/loss returns, during the 52-weeks ended December
30, 2017 and the 53- weeks ended December 31, 2016 were 1.5% for both periods. Interest income increased in fiscal 2017 primarily
due to slightly higher yields on fixed-income securities, while other income decreased in fiscal 2017 primarily due to higher
net capital gains realized in fiscal 2016.

Foreign
currency gains and losses for the Company are typically driven by movements in the Taiwan Dollar, Euro, and British Pound Sterling
in relation to the U.S. Dollar. The Taiwan Dollar is the functional currency of Garmin Corporation, the U.S. Dollar is the functional
currency of Garmin (Europe) Ltd., and the Euro is the functional currency of most of our other European subsidiaries, although
some transactions and balances are denominated in British Pounds. The majority of the Company’s consolidated foreign currency
gain or loss is typically driven by the significant cash and marketable securities, receivables, and payables held in a currency
other than the functional currency at a given legal entity. Due to the relative size of the entities using a functional currency
other than the Taiwan Dollar, Euro, and British Pound Sterling, currency fluctuations related to these entities are not expected
to have a material impact on the Company’s financial statements.

la
$22.6 million currency loss recognized in fiscal 2017 was primarily due to the weakening of the U.S. Dollar against the Taiwan
Dollar, partially offset by the U.S. Dollar weakening against the Euro and the British Pound Sterling. During fiscal 2017, the
U.S. Dollar weakened 9.4% against the Taiwan Dollar, resulting in a loss of $55.9 million, while the U.S. Dollar weakened 14.1%
against the Euro and 9.5% against the British Pound Sterling, resulting in gains of $27.2 million and $3.1 million, respectively.
The remaining net currency gain of $3.0 million was related to timing of transactions and impacts of other currencies, each of
which was individually immaterial.

la
$31.7 million currency loss recognized in fiscal 2016 was primarily due to the weakening of the U.S. Dollar against the Taiwan
Dollar and the strengthening of the U.S. Dollar against the Euro and British Pound Sterling. During fiscal 2016, the U.S. Dollar
weakened 1.7% against the Taiwan Dollar, resulting in a loss of $9.2 million, while the U.S. Dollar strengthened 4.2% against
the Euro and 16.8% against the British Pound Sterling, resulting in losses of $13.0 million and $5.1 million, respectively. la
remaining net currency loss of $4.4 million was related to timing of transactions and impacts of other currencies, each of which
was individually immaterial.

Income
Tax Provision

Our
income tax benefit for the 52-weeks ended December 30, 2017 was $11.9 million compared to income tax expense of $120.9 million
for the 53-weeks ended December 31, 2016, resulting in a net change of $132.8 million. Contributing to the decrease in tax expense
was:

Income
                                         tax benefit of $180.0 million recorded in fiscal 2017 primarily related to the revaluation
                                         of certain Switzerland deferred tax assets resulting from the Company’s election
                                         in the first quarter of 2017 to align certain Switzerland corporate tax positions with
                                         international tax initiatives, with no comparable item in the 53-weeks ended December
                                         31, 2016,

Partially
offset by:

Income
                                         tax expense of $19.9 million related to share based compensation in the 52-weeks ended
                                         December 30, 2017 in accordance with new accounting standard Topic 718, Compensation–Stock
                                         Compensation, and
Increased
                                         income tax expense of $21.0 million related to the Company’s election to align
                                         certain Switzerland corporate tax positions in the 52-weeks ended December 30, 2017.

On
December 22, 2017, the Tax Cuts and Jobs Act was passed by United States Congress, reducing the United States federal corporate
income tax rate from 35% to 21%. The effects of U.S. tax reform, including revaluation of deferred tax assets and liabilities,
had an immaterial impact on the 2017 income tax benefit, on a provisional basis, as discussed in Note 6.

Net
Income

As
a result of the various factors noted above, net income increased 37% to $709.0 million for the 52-weeks ended December 30, 2017
compared to $517.7 million for the 53-weeks ended December 31, 2016.

Liquidity
and Capital Resources

As
of December 29, 2018, we had $2,714.8 million of cash and cash equivalents and marketable securities. We primarily use cash flow
from operations, and expect that future cash requirements may be used, to fund our capital expenditures, support our working capital
requirements, pay dividends, and fund strategic acquisitions. We believe that our existing cash balances and cash flow from operations
will be sufficient to meet our long-term projected capital expenditures, working capital and other cash requirements.

It
is management’s goal to invest the on-hand cash in accordance with the investment policy, which has been approved by the
Board of Directors of each applicable Garmin entity holding the cash. The investment policy’s primary purpose is to preserve
capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk. Garmin’s
average interest income returns on cash and investments during fiscal 2018, 2017, and 2016 were approximately 1.9%, 1.6%, and
1.5%, respectively. The fair value of our securities varies from period to period due to changes in interest rates, in the performance
of the underlying collateral and in the credit performance of the underlying issuer, among other factors. See Note 3 for additional
information regarding marketable securities.

Operating
Activities

52-Weeks Ended 52-Weeks Ended 53-Weeks Ended
December 29, December 30, December 31,
(In thousands) 2018 2017 2016
Net cash provided by operating activities $ 919,520 $ 660,842 $ 705,682

la
$258.7 million increase in cash provided by operating activities in fiscal year 2018 compared to fiscal year 2017 was due to the
increase in cash provided by working capital of $82.8 million (which included an increase of $46.4 million in net receipts of
accounts receivable, an increase of $57.9 million in accounts payable, partially offset by an increase of $50.2 million in cash
paid for inventory), and income taxes payable of $48.6 million. Additionally, the year over year decrease in net income of $14.9
million was offset by other non-cash adjustments to net income of $142.3 million, including an income tax benefit of $180.0 million
related to the revaluation of certain Switzerland deferred tax assets.

la
$44.8 million decrease in cash provided by operating activities in fiscal year 2017 compared to fiscal year 2016 was primarily
due to a decrease of cash provided by working capital of $133.2 million (which included increases of $52.2 million in accounts
receivable and $31.5 million in cash paid for inventory) and income taxes payable of $16.5 million. The decrease was partially
offset by an increase in net income of $184.1 million, reduced by other non-cash adjustments to net income of $79.3 million, including
an income tax benefit of $180.0 million related to the revaluation of certain Switzerland deferred tax assets.

Investing
Activities

52-Weeks Ended 52-Weeks Ended 53-Weeks Ended
December 29, December 30, December 31,
(In thousands) 2018 2017 2016
Net cash used in investing activities $ (307,503 ) $ (194,383 ) $ (121,683 )

la
$113.1 million increase in cash used in investing activities in fiscal year 2018 compared to fiscal year 2017 was primarily due
to increased net purchases of marketable securities of $167.2 million and increased cash payments for net purchases of property
and equipment of $14.8 million, partially offset by a decrease in net cash paid for acquisitions of $61.3 million.

la
$72.7 million increase in cash used in investing activities in fiscal year 2017 compared to fiscal year 2016 was primarily due
to increased cash payments for net purchases of property and equipment of $49.1 million and net cash paid for acquisitions of
$12.5 million.

finanszírozás
Activities

52-Weeks Ended 52-Weeks Ended 53-Weeks Ended
December 29, December 30, December 31,
(In thousands) 2018 2017 2016
Net cash used in financing activities $ (286,161 ) $ (448,412 ) $ (561,676 )

la
$162.3 million decrease in cash used in financing activities in fiscal year 2018 compared to fiscal year 2017 was primarily due
to a decrease in dividend payments of $86.8 million associated with the timing of dividend payments that resulted in one less
dividend payment in 2018 compared to 2017, and also due to a decrease of purchases of treasury stock of $74.5 million under our
share repurchase authorization, which expired on December 31, 2017.

la
$113.3 million decrease in cash used in financing activities in fiscal year 2017 compared to fiscal year 2016 was primarily due
to decreased dividend payments of $98.5 million associated with the timing of dividend payments that resulted in an additional
payment made in the 53-week fiscal year 2016, and also due to a decrease of purchases of treasury stock of $18.7 million under
our share repurchase authorization.

Our
declared dividend has increased from $0.51 per share for the twelve calendar quarters beginning in June 2015 to $0.53 per share
for the four calendar quarters beginning June 2018.

Contractual
Obligations and Commercial Commitments

As
of December 29, 2018, operating leases comprise the substance of the Company’s commercial commitments with long-term scheduled
payments, as summarized below:

Payments
    due by period
Contractual Obligations Total Less than 1 year 1-3 years 3-5 years More than 5 years
Operating Leases $ 69,838 $ 17,170 $ 24,520 $ 14,237 $ 13,910

la
Company is party to certain other commitments, which include purchases of raw materials, advertising expenditures, and other indirect
purchases in connection with conducting our business.  The aggregate amount of purchase orders and other commitments open
as of December 29, 2018 was approximately $354.6 million. We cannot determine the aggregate amount of such purchase orders that
represent contractual obligations because purchase orders may represent authorizations to purchase rather than binding agreements.
Our purchase orders are based on our current needs and are typically fulfilled within short periods of time.

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 $118.3
million as of December 29, 2018, have been excluded from the contractual obligations table above. For further information related
to unrecognized tax benefits, see Note 2, “Income Taxes”, and Note 6 to the consolidated financial statements included
in this Report.

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.

Inflation

We
do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our
costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through
price increases. Our inability or failure to do so could adversely affect our business, financial condition and results of operations.

Foreign
Currency Exchange Rate Risk

la
operation of Garmin’s subsidiaries in international markets results in exposure to movements in currency exchange rates.
We have experienced significant foreign currency gains and losses due to the strengthening and weakening of the U.S. dollar. la
potential of volatile foreign exchange rate fluctuations in the future could have a significant effect on our results of operations.
The Company has not historically hedged its foreign currency exchange rate risks.

la
currencies that create a majority of the Company’s exchange rate exposure are the Taiwan Dollar, Euro, and British Pound
Sterling. Garmin Corporation, headquartered in Xizhi, Taiwan, uses the local currency as the functional currency. The Company
translates all assets and liabilities at year-end exchange rates and income and expense accounts at average rates during the year.
In order to minimize the effect of the currency exchange fluctuations on our net assets, we have elected to retain most of our
Taiwan subsidiary’s cash and investments in accounts denominated in U.S. Dollars.

Most
European subsidiaries use the Euro as the functional currency. However, the functional currency of our largest European subsidiary,
Garmin (Europe) Ltd., is the U.S. Dollar, and as some transactions have occurred in British Pounds Sterling or Euros, foreign
currency gains or losses have been realized historically related to the movements of those currencies relative to the U.S. Dollar.
The Company believes that gains and losses will become more material in the future as our European presence grows.

During
fiscal year 2018, the Company incurred a net foreign currency loss of $7.6 million. The strengthening of the U.S. Dollar against
the Euro and the British Pound Sterling was offset by the U.S. Dollar strengthening against the Taiwan Dollar. During fiscal 2018,
the U.S. Dollar strengthened 4.7% against the Euro and 6.0% against the British Pound Sterling, resulting in losses of $10.0 million
and $1.7 million, respectively, while the U.S. Dollar strengthened 3.0% against the Taiwan Dollar, resulting in a gain of $15.1
million. The remaining net currency loss of $11.0 million was related to timing of transactions and impacts of other currencies,
each of which was individually immaterial.  These and other currency moves during fiscal year 2018 also resulted in
a currency translation adjustment of $32.0 million within accumulated other comprehensive income.

We
assessed the Company’s exposure to movements in currency exchange rates by performing a sensitivity analysis of adverse
changes in exchange rates and the corresponding impact to our results of operations. Based on monetary assets and liabilities
denominated in currencies other than respective functional currencies as of December 29, 2018 and December 30, 2017, hypothetical
and reasonably possible adverse changes of 10% for the Taiwan Dollar, Euro, and British Pound Sterling would have resulted in
an adverse impact on income before income taxes of approximately $109 million and $96 million at December 29, 2018 and December
30, 2017, respectively.

Interest
Rate Risk

We
have no outstanding long-term debt as of December 29, 2018. We, therefore, have no meaningful debt-related interest rate risk.

We
are exposed to interest rate risk in connection with our investments in marketable securities. As interest rates change, the unrealized
gains and losses associated with those securities will fluctuate accordingly.

la
Company’s investment policy targets low risk investments with the objective of minimizing the potential risk of principal
loss. The Company does not intend to sell securities in an unrealized loss position and it is not more likely than not that the
Company will be required to sell such investments before recovery of their amortized costs bases, which may be maturity. During
2018 and 2017, the Company did not record any material impairment charges on its outstanding securities.

We
assessed the Company’s exposure to interest rate risk by performing a sensitivity analysis of a parallel shift in the yield
curve and the corresponding impact to the Company’s portfolio of marketable securities. Based on balance sheet positions
as of December 29, 2018 and December 30, 2017, the hypothetical and reasonably possible 100 basis point increases in interest
rates across all securities would have resulted in declines in portfolio fair market value of approximately $38 million and $42
million at December 29, 2018 and December 30, 2017, respectively. Such losses would only be realized if the Company sold the investments
prior to maturity.

Item
8. Financial Statements and Supplementary Data

CONSOLIDATED
FINANCIAL STATEMENTS

Garmin
Ltd. and Subsidiaries

Years
Ended December 29, 2018, December 30, 2017, and December 31, 2016

Contents

Jelentés
    of Ernst & Young LLP, Independent Registered Public Accounting Firm
58
Consolidated
    Balance Sheets at December 29, 2018 and December 30, 2017
59
Consolidated
    Statements of Income for the Years Ended December 29, 2018, December 30, 2017, And December 31, 2016
60
Consolidated
    Statements of Comprehensive Income for the Years Ended December 29, 2018, December 30, 2017 and December 31, 2016
61
Consolidated
    Statements of Stockholders’ Equity for the Years Ended December 29, 2018, December 30, 2017, and December 31, 2016
62
Consolidated
    Statements of Cash Flows for the Years Ended December 29, 2018, December 30, 2017, and December 31, 2016
63
Notes
    to Consolidated Financial Statements
65

Jelentés
of Independent Registered Public Accounting Firm

To
the Stockholders and the Board of Directors of Garmin Ltd. and Subsidiaries

Opinion
on the Financial Statements

We
have audited the accompanying consolidated balance sheets of Garmin Ltd. and Subsidiaries (the Company) as of December 29, 2018
and December 30, 2017, the related consolidated statements of income, comprehensive income, stockholders’ equity and cash
flows for each of the three years in the period ended December 29, 2018 and the related notes and financial statement schedule
listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion,
the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December
29, 2018 and December 30, 2017, and the results of its operations and its cash flows for each of the three years in the period
ended December 29, 2018, in conformity with U.S. generally accepted accounting principles.

We
also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the Company’s internal control over financial reporting as of December 29, 2018, based on criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and
our report dated February 20, 2019, expressed an unqualified opinion thereon.

Adoption
of New Accounting Standard

As discussed in Note 2 to the
consolidated financial statements, the Company changed its method of accounting for revenue in 2018 due to the adoption of Accounting
Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and the related amendments.

Basis
for Opinion

These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements,
whether due to error or fraud and performing procedures that respond to those risks. Such procedures included examining, on a
test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the
accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/
Ernst & Young LLP

We
have served as the Company’s auditor since 1990.

Kansas
City, Missouri

February
20, 2019

Garmin Ltd. And Subsidiaries

Consolidated Balance Sheets

(In thousands, except per share information)

December 29,
2018
December 30,
2017
Assets
Current assets:
Cash and cash equivalents $ 1,201,732 $ 891,488
Marketable
securities (Note 3)
182,989 161,687
Accounts receivable, less allowance for doubtful accounts of $5,487 in 2018 and $4,168 in 2017 569,833 590,882
Inventories 561,840 517,644
Deferred costs 28,462 30,525
Prepaid expenses and other current assets 120,512 153,912
Total current assets 2,665,368 2,346,138
Property and equipment, net
Land and improvements 131,689 114,701
Building and improvements 539,177 482,794
Office furniture and equipment 264,818 246,107
Manufacturing equipment 162,077 156,119
Engineering equipment 154,742 141,321
Vehicles 20,991 21,115
1,273,494 1,162,157
Accumulated depreciation (609,967 ) (566,473 )
663,527 595,684
Restricted cash (Note 4) 73 271
Marketable securities (Note 3) 1,330,123 1,260,033
Deferred income taxes (Note 6) 176,959 195,981
Noncurrent deferred costs 29,473 33,029
Intangible assets, net 417,080 409,801
Other assets 100,255 107,352
Total assets $ 5,382,858 $ 4,948,289
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 204,985 $ 169,640
Salaries and benefits payable 113,087 102,802
Accrued warranty costs 38,276 36,827
Accrued sales program costs 90,388 93,250
Deferred revenue 96,372 103,140
Accrued royalty costs 24,646 32,204
Accrued advertising expense 31,657 30,987
Other accrued expenses 69,777 93,652
Income taxes payable 51,642 33,638
Dividend payable 200,483 95,975
Total current liabilities 921,313 792,115
Deferred income taxes (Note 6) 92,944 76,612
Noncurrent income taxes 127,211 138,295
Noncurrent deferred revenue 76,566 87,060
Other liabilities 1,850 1,788
Stockholders’ equity:
Shares, CHF 0.10 par value, 198,077 shares authorized and issued, 189,461 shares outstanding at December 29, 2018; and 188,189 shares outstanding at December 30, 2017; (Notes 9, 10, and 11): 17,979 17,979
Additional paid-in capital 1,823,638 1,828,386
Treasury stock (397,692 ) (468,818 )
Retained earnings 2,710,619 2,418,444
Accumulated other comprehensive income 8,430 56,428
Total stockholders’ equity 4,162,974 3,852,419
Total liabilities and stockholders’ equity $ 5,382,858 $ 4,948,289

See accompanying notes.

Garmin Ltd. And Subsidiaries

Consolidated Statements of Income

(In thousands, except per share information)

Fiscal Year Ended
December 29,
2018
December 30,
2017
December 31,
2016
Net sales $ 3,347,444 $ 3,121,560 $ 3,045,797
Cost of goods sold 1,367,725 1,323,619 1,357,272
Gross profit 1,979,719 1,797,941 1,688,525
Advertising expense 155,394 164,693 177,143
Selling, general and administrative expenses 478,177 437,977 410,558
Research and development expense 567,805 511,634 467,960
1,201,376 1,114,304 1,055,661
Operating income 778,343 683,637 632,864
Other income (expense):
Interest income 47,147 36,925 33,406
Foreign currency losses (7,616 ) (22,579 ) (31,651 )
Other income (expense) 5,373 (912 ) 4,006
44,904 13,434 5,761
Income before income taxes 823,247 697,071 638,625
Income tax provision (benefit): (Note 6)
Current 93,424 79,234 117,842
Deferred 35,743 (91,170 ) 3,059
129,167 (11,936 ) 120,901
Net income $ 694,080 $ 709,007 $ 517,724
Basic net income per share (Note 10) $ 3.68 $ 3.77 $ 2.74
Diluted net income per share (Note 10) $ 3.66 $ 3.76 $ 2.73

See accompanying notes.

Garmin Ltd. And Subsidiaries

Consolidated Statements of Comprehensive
Income

(In thousands)

Fiscal Year Ended
December 29,
2018
December 30,
2017
December 31,
2016
Net income $ 694,080 $ 709,007 $ 517,724
Foreign currency translation adjustment (31,965 ) 88,965 4,434
Change in fair value of available-for-sale marketable securities, net of deferred taxes (15,581 ) 4,486 (11,029 )
Comprehensive income $ 646,534 $ 802,458 $ 511,129

See accompanying notes.

Garmin Ltd. And Subsidiaries

Consolidated Statements of Stockholders’
Equity

(In thousands)

Common
Stock
Additional
Paid-In
Capital
Treasury
Stock
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Total
Balance at December 26, 2015 $ 1,797,435 $ 62,239 $ (414,637 ) $ 1,959,125 $ (30,428 ) $ 3,373,734
Net income 517,724 517,724
Translation adjustment 4,434 4,434
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $1,094 (11,029 ) (11,029 )
Comprehensive income 511,129
Dividends declared (384,629 ) (384,629 )
Tax benefit from issuance of equity awards (6,309 ) (6,309 )
Issuance of treasury stock related to equity awards (40,589 ) 59,237 18,648
Stock compensation 41,250 41,250
Purchase of treasury stock related to equity awards (7,331 ) (7,331 )
Purchase of treasury stock under share repurchase plan (93,233 ) (93,233 )
Reduction in par value of Common Stock (1,779,456 ) 1,779,456
Balance at December 31, 2016 $ 17,979 $ 1,836,047 $ (455,964 ) $ 2,092,220 $ (37,023 ) $ 3,453,259
Net income 709,007 709,007
Translation adjustment 88,965 88,965
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $493 4,486 4,486
Comprehensive income 802,458
Dividends declared (382,783 ) (382,783 )
Issuance of treasury stock related to equity awards (52,581 ) 74,442 21,861
Stock compensation 44,735 44,735
Purchase of treasury stock related to equity awards 185 (12,773 ) (12,588 )
Purchase of treasury stock under share repurchase plan (74,523 ) (74,523 )
Balance at December 30, 2017 $ 17,979 $ 1,828,386 $ (468,818 ) $ 2,418,444 $ 56,428 $ 3,852,419
Net income 694,080 694,080
Translation adjustment (31,965 ) (31,965 )
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $2,174 (15,581 ) (15,581 )
Comprehensive income 646,534
Dividends declared (400,657 ) (400,657 )
Issuance of treasury stock related to equity
    díjak
(61,139 ) 87,781 26,642
Stock compensation 56,391 56,391
Purchase of treasury stock related to equity awards (16,655 ) (16,655 )
Reclassification under ASU 2016-16 (1,700 ) (1,700 )
Reclassification under ASU 2018-02 452 (452 )
Balance at December 29, 2018 $ 17,979 $ 1,823,638 $ (397,692 ) $ 2,710,619 $ 8,430 $ 4,162,974

See accompanying notes.

Garmin Ltd. And Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

Fiscal Year Ended
December 29,
2018
December 30,
2017
December 31,
2016
Operating Activities:
Net income $ 694,080 $ 709,007 $ 517,724
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 64,798 59,895 55,796
Amortization 31,396 26,357 30,544
Gain on sale of property and equipment (479 ) (230 ) (503 )
Provision for doubtful accounts 2,123 1,021 4,136
Provision for obsolete and slow-moving inventories 24,579 31,071 26,458
Unrealized foreign currency losses 13,790 21,681 13,125
Deferred income taxes 38,978 (90,000 ) 3,745
Stock compensation expense 56,391 44,735 41,250
Realized losses (gains) on marketable securities 827 991 (822 )
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable 5,167 (40,088 ) 9,000
Inventories (82,316 ) (38,575 ) (2,455 )
Other current and non-current assets 7,358 (21,608 ) 2,234
Accounts payable 40,628 (17,240 ) (11,496 )
Other current and non-current liabilities (1,323 ) 5,627 44,766
Deferred revenue (17,208 ) (20,754 ) (32,733 )
Deferred costs 5,611 2,395 1,896
Income taxes payable 35,120 (13,443 ) 3,017
Net cash provided by operating activities 919,520 660,842 705,682
Investing activities:
Purchases of property and equipment (155,755 ) (139,696 ) (90,960 )
Proceeds from sale of property and equipment 1,600 361 676
Purchase of intangible assets (4,600 ) (12,232 ) (5,715 )
Purchase of marketable securities (403,181 ) (587,656 ) (905,089 )
Redemption of marketable securities 283,603 635,311 957,350
Acquisitions, net of cash acquired (29,170 ) (90,471 ) (77,945 )
Net cash used in investing activities (307,503 ) (194,383 ) (121,683 )
Financing activities:
Dividends (296,148 ) (382,976 ) (481,452 )
Tax benefit from issuance of equity awards 1,692
Proceeds from issuance of treasury stock related to equity awards 26,642 21,860 18,648
Purchase of treasury stock related to equity awards (16,655 ) (12,773 ) (7,331 )
Purchase of treasury stock under share repurchase plan (74,523 ) (93,233 )
Net cash used in financing activities (286,161 ) (448,412 ) (561,676 )
Effect of exchange rate changes on cash and cash equivalents (15,810 ) 26,716 (8,656 )
Net increase in cash, cash equivalents, and restricted cash 310,046 44,763 13,667
Cash, cash equivalents, and restricted cash at beginning of year 891,759 846,996 833,329
Cash, cash equivalents, and restricted cash at end of year $ 1,201,805 $ 891,759 $ 846,996

See accompanying notes.

Garmin Ltd. And Subsidiaries

Consolidated Statements of Cash Flows
(continued)

(In thousands)

Fiscal Year Ended
December 29,
2018
December 30,
2017
December 31,
2016
Supplemental disclosures of cash flow information
Cash paid during the year for income taxes $ 67,592 $ 106,146 $ 115,548
Cash received during the year from income tax refunds $ 6,122 $ 3,806 $ 4,275
Supplemental disclosure of non-cash investing and financing activities
(Decrease) increase in accrued capital expenditures related to purchases of property and equipment $ (14,647 ) $ 13,864 $ 2,154
Change in marketable securities related to unrealized (depreciation) appreciation $ (17,755 ) $ 4,979 $ (12,123 )
Fair value of assets acquired $ 31,920 $ 128,190 $ 91,620
Liabilities assumed (2,273 ) (29,587 ) (6,344 )
Less: cash acquired (477 ) (8,132 ) (7,331 )
Cash paid for acquisitions, net of cash acquired $ 29,170 $ 90,471 $ 77,945

See accompanying notes.

GARMIN LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per
share information)

December 29, 2018 and December 30,
2017

1. Description of the Business

Garmin Ltd. and subsidiaries
(together, the “Company”) design, develop, manufacture, market, and distribute a diverse family of hand-held, wrist-based,
portable, and fixed-mount Global Positioning System (GPS)-enabled products and other navigation, communications, information and
sensor-based products. Garmin Corporation (GC) is primarily responsible for the manufacturing and distribution of the Company’s
products to the Company’s subsidiaries and, to a lesser extent, new product development and sales and marketing of the Company’s
products in Asia and the Far East. Garmin International, Inc. (GII) is primarily responsible for sales and marketing of the Company’s
products in the Americas region and for most of the Company’s research and new product development. GII also manufactures
most of the Company’s products in the aviation segment. Garmin (Europe) Ltd. (GEL) is responsible for sales and marketing
of the Company’s products in Europe, the Middle East and Africa (EMEA). Many of GEL’s sales are to other Company-owned
distributors in the EMEA region.

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.

As previously announced
and discussed below within the “Recently Adopted Accounting Standards” section of this footnote, effective beginning
in the 2018 fiscal year, we adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from
Contracts with Customers (Topic 606), using the full retrospective method. All amounts and disclosures set forth in this Form 10-K
reflect these changes. Further, as a result of the adoption of certain other accounting standards described below, effective beginning
in the 2018 fiscal year, certain amounts in prior periods have been reclassified to conform to the current period presentation.

Fiscal Year

The Company’s
fiscal year is based on 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 53-week fiscal years, and the associated 14-week fourth quarters, will not be entirely comparable
to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. Fiscal years 2018 and 2017 included 52 weeks
while fiscal 2016 included 53 weeks.

Use of Estimates

The preparation of
consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management
to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.
Actual results could differ from those estimates.

Foreign Currency

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 stockholders’
equity. Cumulative currency translation adjustments of $47,327 and $79,292 as of December 29, 2018 and December 30, 2017, respectively,
have been included in accumulated other comprehensive income in the accompanying consolidated balance sheets.

Transactions in foreign
currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these
transactions are translated at the rate of exchange in effect at the balance sheet date. The majority of the Company’s consolidated
foreign currency gain or loss is typically driven by the significant cash and marketable securities, receivables, and payables
held in a currency other than the functional currency at a given legal entity. Net foreign currency losses recorded in results
of operations were $7,616, $22,579, and $31,651 for the years ended December 29, 2018, December 30, 2017, and December 31, 2016,
respectively. The loss in fiscal 2018 was due primarily to the USD strengthening against the Euro and British Pound Sterling, offset
by the USD strengthening against the Taiwan Dollar. The loss in fiscal 2017 was due primarily to the USD weakening against the
Taiwan Dollar, which was partially offset by the USD weakening against the Euro and British Pound Sterling. The loss in fiscal
2016 was due primarily to the USD weakening against the Taiwan Dollar and the USD strengthening against the Euro and British Pound
Sterling.

Earnings Per Share

Basic earnings per
share amounts are computed based on the weighted-average number of common shares outstanding. For purposes of diluted earnings
per share, the number of shares that would be issued from the exercise of dilutive share-based compensation awards has been reduced
by the number of shares which could have been purchased from the proceeds of the exercise or release at the average market price
of the Company’s stock during the period the awards were outstanding. See Note 10.

Cash, Cash Equivalents, and Restricted
Cash

Cash
and cash equivalents include cash on hand, operating accounts, money market funds, deposits readily convertible to known amounts
of cash, and securities with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents
approximates fair value, given the short maturity of those instruments. Restricted cash is reported separately from cash and cash
equivalents on the consolidated balance sheets. See Note 4 for additional information on restricted cash.

The total of cash and
cash equivalents and restricted cash balances presented on the consolidated balance sheet reconciles to the total cash, cash equivalents,
and restricted cash shown in the consolidated statements of cash flows.

Trade Accounts Receivable

The Company sells its
products to retailers, wholesalers, and other customers and extends credit based on its evaluation of the customer’s financial
condition.  Potential losses on receivables are dependent on each individual customer’s financial condition. The Company
carries its trade accounts receivable at net realizable value. Typically, its accounts receivable are collected within 80 days
and do not bear interest. The Company monitors its exposure to losses on receivables and maintains allowances for potential losses
or adjustments. The Company determines these allowances by (1) evaluating the aging of its receivables and (2) reviewing its high-risk
customers. Past due receivable balances are written off when internal collection efforts have been unsuccessful in collecting the
amount due. The Company maintains trade credit insurance to provide security against large losses.

Concentration of Credit Risk

The Company grants
credit to certain customers who meet the Company’s pre-established credit requirements. Generally, the Company does not require
security when trade credit is granted to customers. Credit losses are provided for in the Company’s consolidated financial
statements and typically have been within management’s expectations. Certain customers are allowed extended terms consistent
with normal industry practice. Most of these extended terms can be classified as either relating to seasonal sales variations or
to the timing of new product releases by the Company.

The Company’s
top ten customers have contributed between 21% and 24% of net sales annually since 2016. None of the Company’s customers
accounted for more than or equal to 10% of consolidated net sales in the years ended December 29, 2018, December 30, 2017, and
December 31, 2016, respectively.

Inventories

Inventories are stated
at the lower of cost or market with cost being determined on a first-in, first-out (FIFO) basis. The Company writes down its inventory
for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net
realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable
than those projected by management, additional inventory write-downs may be required. Inventories consisted of the following:

December 29, 2018 December 30, 2017
Raw materials $ 205,696 $ 179,659
Work-in-process 96,564 75,754
Finished goods 259,580 262,231
Inventories $ 561,840 $ 517,644

Property and Equipment

Property and equipment
are recorded at cost and typically depreciated using the straight-line method over the following estimated useful lives:

Buildings and improvements 39-50
Office furniture and equipment 3-5
Manufacturing and engineering equipment 5-10
Vehicles 5

As required by the
Property, Plant and Equipment topic of the FASB ASC, the Company reviews property and equipment assets for impairment whenever
events or changes in circumstances indicate the carrying amount of an asset or asset group 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.

Intangible Assets

At December 29, 2018,
and December 30, 2017, the Company had patents, customer related intangibles and other identifiable finite-lived intangible assets
recorded at a cost of $330,532 and $316,705, respectively. Identifiable, finite-lived intangible assets are amortized over their
estimated useful lives on a straight-line basis typically over three to ten years. Accumulated amortization was $214,469 and $193,886
at December 29, 2018 and December 30, 2017, respectively. Amortization expense on these intangible assets was $21,796, $20,863,
and $14,319 for the years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively. In the next five years,
the amortization expense is estimated to be $17,107, $15,125, $11,674, $9,390, and $8,452, respectively.

The Company’s
excess purchase cost over fair value of net assets acquired (goodwill) was $301,017 at December 29, 2018, and $286,982 at December
30, 2017.

December 29, 2018 December 30, 2017
Goodwill balance at beginning of year $ 286,982 $ 224,553
Acquisitions 16,768 58,332
Finalization of purchase price allocations and effect of foreign currency translation (2,733 ) 4,097
Goodwill balance at end of year $ 301,017 $ 286,982

la Intangibles
– Goodwill and Other
topic of the FASB ASC (ASC Topic 350) 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 performs its annual goodwill and intangible asset impairment tests
in the fourth quarter of each year. ASC Topic 350 allows management to first perform a qualitative assessment (“step zero”)
by assessing the qualitative factors of relevant events and circumstances at the reporting unit level to determine if it is necessary
to perform the quantitative goodwill impairment test (“step one”). If factors indicate that it is more likely than
not that the fair value of the reporting unit is less than the carrying amount, then the step one assessment will be performed.
If the fair value of the reporting unit is less than the carrying amount in step one, then goodwill impairment will be recognized,
and the charge is determined through the “step two” analysis.

Each of the Company’s
operating segments (auto PND, auto OEM, aviation, marine, outdoor, and fitness) represents a distinct reporting unit. The auto
PND market has declined in recent years as competing technologies have emerged and market saturation has occurred. This has resulted
in periods of lower revenues and profits for the Company’s auto PND reporting unit. Considering these qualitative factors,
management performed a step one quantitative goodwill impairment assessment of the auto PND reporting unit in the fourth quarter
of 2018. Management determined that the fair value of the reporting unit was substantially in excess of its carrying amount, and
a step two analysis was therefore not performed. However, considering the uncertainty of future operating results and/or market
conditions deteriorating faster or more drastically than the forecasts utilized in management’s estimation of fair value,
management believes some or all of the approximately $80 million of goodwill associated with the Company’s auto PND reporting
unit is at risk of future impairment. Management concluded that no other reporting units are currently at risk of impairment.

The Company did not
recognize any material goodwill or intangible asset impairment charges in 2018, 2017, or 2016.

Dividends

Under Swiss corporate
law, dividends must be approved by shareholders at the general meeting of the Company’s shareholders.

On June 8, 2018, the
shareholders approved a dividend of $2.12 per share (of which, $1.06 was paid in the Company’s 2018 fiscal year) payable
in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

Dividend Date Record Date $s per share
June 29, 2018 June 18, 2018 $ 0.53
September 28, 2018 September 14, 2018 $ 0.53
December 31, 2018 December 14, 2018 $ 0.53
March 29, 2019 March 15, 2019 $ 0.53

The Company paid dividends
in 2018 in the amount of $296,148, which included three dividend distributions in the fiscal year. Both the dividends paid and
the remaining dividend payable were reported as a reduction of retained earnings.

On June 9, 2017, the
shareholders approved a dividend of $2.04 per share (of which, $1.53 was paid in the Company’s 2017 fiscal year) payable
in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

Dividend Date Record Date $s per share
June 30, 2017 June 19, 2017 $ 0.51
September 29, 2017 September 15, 2017 $ 0.51
December 29, 2017 December 15, 2017 $ 0.51
March 30, 2018 March 15, 2018 $ 0.51

The Company paid dividends
in 2017 in the amount of $382,976, which included four dividend distributions in the fiscal year. Both the dividends paid and the
remaining dividend payable were reported as a reduction of retained earnings.

On June 10, 2016, the
shareholders approved a dividend of $2.04 per share (of which, $1.53 was paid in the Company’s 2016 fiscal year) payable
in four equal installments on dates determined by the Board of Directors. The dates determined by the Board were as follows:

Dividend Date Record Date $s per share
June 30, 2016 June 16, 2016 $ 0.51
September 30, 2016 September 15, 2016 $ 0.51
December 30, 2016 December 14, 2016 $ 0.51
March 31, 2017 March 15, 2017 $ 0.51

The Company paid dividends
in 2016 in the amount of $481,452, which included five dividend distributions in the fiscal year. Both the dividends paid and the
remaining dividend payable were reported as a reduction of retained earnings.

Approximately $61,129
and $304,674 of retained earnings was indefinitely restricted from distribution to stockholders pursuant to the laws of Taiwan
at December 29, 2018 and December 30, 2017, respectively.

Marketable Securities

Management determines
the appropriate classification of marketable securities at the time of purchase and reevaluates such designation as of each balance
sheet date.

All of the Company’s
marketable securities were considered available-for-sale at December 29, 2018. Available-for-sale securities are stated at fair
value, with the unrealized gains and losses, net of tax, reported in other comprehensive income. At December 29, 2018 and December
30, 2017, cumulative unrealized net losses of $38,897 and $22,864, respectively, were reported in accumulated other comprehensive
income, net of related taxes.

Investments are reviewed
periodically to determine if they have suffered an impairment of value that is considered other than temporary. If investments
are determined to be impaired, a loss is recognized at the date of determination.

Testing for impairment
of investments requires significant management judgment. The identification of potentially impaired investments, the determination
of their fair value, and the assessment of whether any decline in value is other than temporary are the key judgment elements.
The discovery of new information and the passage of time can significantly change these judgments. Revisions of impairment judgments
are made when new information becomes known, and any resulting impairment adjustments are made at that time. The economic environment
and volatility of securities markets increase the difficulty of determining fair value and assessing investment impairment.

The amortized cost
of debt securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity,
or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization is included in interest
income from investments. Realized gains and losses, and credit declines in value judged to be other-than-temporary are included
in other income. The cost of securities sold is based on the specific identification method.

Investments are discussed
in detail in Note 3 of the Notes to Consolidated Financial Statements.

Income Taxes

The Company accounts
for income taxes using the liability method in accordance with the FASB ASC 740 topic Income Taxes. The liability method
provides that deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities
and their carrying amount for financial reporting purposes as measured based on the enacted tax rates and laws that will be in
effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to
the amount that is believed more likely than not to be realized.

The Company accounts
for uncertainty in income taxes in accordance with the FASB ASC 740 topic Income Taxes. The Company recognizes
liabilities based on our estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts
ultimately proves not to be required, the reversal of the liabilities would result in tax benefits being recognized in the period
when the Company determines the liabilities are no longer necessary. If the Company’s estimate of tax liabilities proves
to be less than the ultimate assessment, a further charge to expense would result.

Income taxes are discussed
in detail in Note 6 of the Notes to Consolidated Financial Statements.

Revenue Recognition

The Company recognizes
revenue upon the transfer of control of promised products or services to the customer in an amount that depicts the consideration
the Company expects to be entitled to for the related products or services.   For the large majority of the Company’s
sales, transfer of control occurs once product has shipped and title and risk of loss have transferred to the customer. The Company
offers certain tangible products with ongoing services promised over a period of time, typically the useful life of the related
tangible product. When we have identified such services as both capable of being distinct and separately identifiable from the
related tangible product, the associated revenue allocated to such services is recognized over time.  The Company generally
does not offer specified or unspecified upgrade rights to its customers in connection with software sales.

For products that
include tangible hardware that contains software essential to the tangible product’s functionality and ongoing services
identified as separately identifiable performance obligations, the Company allocates revenue to all performance obligations based
on their relative standalone selling prices (“SSP”), with the amounts allocated to ongoing services deferred and recognized
over a period of time. These ongoing services primarily consist of the Company’s contractual promises to provide personal
navigation device (PND) users with lifetime map updates (LMU) and server-based traffic services. In addition, we provide map update
services (map care) over a contractual period in certain hardware and software contracts with original equipment manufacturers
(OEMs). The Company has determined that directly observable prices do not exist for LMU, map care, or server-based traffic, as
stand-alone and unbundled unit sales do not occur on more than a limited basis. Therefore, the Company uses the expected cost
plus a margin as the primary indicator to calculate relative SSP of the LMU, map care, and traffic performance obligations. la
revenue and associated costs allocated to the LMU, map care, and/or the server-based traffic service are deferred and recognized
ratably over the estimated life of the products of approximately 3 years for PNDs, or the estimated map care period in OEM contracts
of 3-10 years as we believe our efforts related to providing these services are spread evenly throughout the performance period.
In addition to the products listed above, the Company has offered certain other products with ongoing performance obligations
including mobile applications, incremental navigation and/or communication service subscriptions, aviation database subscriptions,
and extended warranties that are individually immaterial.

The Company records
revenue net of sales tax and variable consideration such as trade discounts and customer returns.  Payment is due typically
within 90 days or less of shipment of product, or upon the grant of a given software license (as applicable). The Company records
estimated reductions to revenue in the form of variable consideration for customer sales programs, returns, and incentive offerings
including rebates, price protection (product discounts offered to retailers to assist in clearing older products from their inventories
in advance of new product releases), promotions, and other volume-based incentives.  Cooperative advertising incentives payable
to dealers and distributors are recorded as reductions of revenue unless we obtain proof of a distinct advertising service, in
which case we record the incentive as advertising expense. The reductions to revenue are based on estimates and judgments using
historical experience and expectation of future conditions.  Changes in these estimates could negatively affect the Company’s
operating results.  These incentives are reviewed periodically and, with the exceptions of price protection and certain
other promotions, typically accrued for on a percentage of sales basis.

Deferred Revenues and Costs

At December 29, 2018
and December 30, 2017, the Company had deferred revenues totaling $172,938 and $190,200, respectively, and related deferred costs
totaling $57,935 and $63,554, respectively.

Deferred revenue consists
primarily of the transaction price allocated to performance obligations that are recognized over a period of time basis as discussed
ban,-ben Revenue Recognition portion of this footnote. Billings associated with such items are typically completed upon the
transfer of control of promised products or services to the customer and recorded to accounts receivable until payment is received.
Deferred costs primarily refer to the royalties incurred by the Company associated with the aforementioned unsatisfied performance
obligations, which are amortized over the same period as the revenue is recognized. The Company typically pays the associated royalties
either monthly or quarterly in arrears, on a per item shipped or installed basis.

The Company applies
a practical expedient, as permitted within ASC 340, to expense as incurred the incremental costs to obtain a contract when the
amortization period of the asset that would have otherwise been recognized is one year or less.

Shipping and Handling Costs

Shipping and handling
activities are typically performed before the customer obtains control of the good, and the related costs are therefore expensed
as incurred. Shipping and handling costs are included in cost of goods sold in the accompanying consolidated financial statements.

Product Warranty

la
Company accrues for estimated future warranty costs at the time products are sold.  The Company’s standard
warranty obligation to retail partners generally provides for a right of return of any product for a full refund in the event
that such product is not merchantable, is damaged, or is defective.  The Company’s historical experience is that
these types of warranty obligations are generally fulfilled within 5 months from time of sale.  The Company’s
standard warranty obligation to its end-users provides for a period of one to two years from date of shipment while certain
aviation, marine, and auto OEM products have a warranty period of two years or more from the date of installation. la
Company’s estimates of costs to service its warranty obligations are based on historical experience and
management’s expectations and judgments of future conditions.  To the extent the Company experiences increased
warranty claim activity or increased costs associated with servicing those claims, its warranty accrual will increase,
resulting in decreased gross profit. The following reconciliation provides an illustration of changes in the aggregate
warranty accrual:

Fiscal Year Ended
December 29, December 30, December 31,
2018 2017 2016
Balance – beginning of period $ 36,827 $ 37,233 $ 30,449
Accrual for products sold(1) 59,374 56,360 61,578
Expenditures (57,925 ) (56,766 ) (54,794 )
Balance – end of period $ 38,276 $ 36,827 $ 37,233

(1) Changes in cost estimates related to pre-existing warranties are not material
and aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line.

Advertising Costs

The Company expenses
advertising costs as incurred. Advertising expense amounted to approximately $155,394, $164,693, and $177,143 for the years ended
December 29, 2018, December 30, 2017, and December 31, 2016, respectively.

Research and Development

A majority of the Company’s
research and development is performed in the United States. Research and development costs, which are typically expensed as incurred,
amounted to approximately $567,805, $511,634, and $467,960 for the years ended December 29, 2018, December 30, 2017, and December
31, 2016, respectively.

Customer Service and Technical Support

Customer service and
technical support costs are included as selling, general and administrative expenses in the accompanying consolidated statements
of income. Customer service and technical support costs include costs associated with performing order processing, answering customer
inquiries by telephone and through websites, e-mail and other electronic means, and providing free technical support assistance
to customers. The technical support is typically provided within one year after the associated revenue is recognized. The related
cost of providing this free support is not material.

Software Development Costs

The FASB ASC topic
jogosult Software requires companies to expense software development costs as they incur them until technological feasibility
has been established, at which time those costs are capitalized until the product is available for general release to customers.
The Company’s capitalized software development costs are not significant as the time elapsed from working model to release
is typically short. As required by the Research and Development topic of the FASB ASC, costs incurred to enhance our existing products
or after the general release of the service using the product are expensed in the period they are incurred and included in research
and development costs in the accompanying consolidated statements of income.

Accounting for Stock-Based Compensation

The Company currently sponsors four stock-based employee compensation plans. The FASB ASC topic entitled Compensation –
Stock Compensation
requires the measurement and recognition of compensation expenses for all share-based payment awards made
to employees and directors, including employee stock options and restricted stock, based on estimated fair values.

Accounting guidance
requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model.
The value of the portion of the award that is ultimately expected to vest is recognized as stock-based compensation expense over
the requisite service period in the Company’s consolidated financial statements.

As stock-based compensation
expenses recognized in the accompanying consolidated statements of income are based on awards ultimately expected to vest, they
have been reduced for estimated forfeitures. Accounting guidance requires forfeitures to be estimated at the time of grant and
revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based
on historical experience and management’s estimates.

In March 2016, the
Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-09, Compensation—Stock
Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended
to simplify the accounting for share-based payment awards. The Company adopted ASU 2016-09 on a prospective basis during the quarter
ended April 1, 2017. ASU 2016-09 requires excess tax benefits or deficiencies from stock-based compensation to be recognized in
the income tax provision. The Company previously recorded these amounts to additional paid-in capital. Additionally, under ASU
2016-09, excess tax benefits and deficiencies are not estimated in the effective tax rate, rather, they are recorded as discrete
tax items in the period in which they occur. Excess income tax benefits from stock-based compensation arrangements are classified
as a cash flow from operations under ASU 2016-09, rather than as a cash flow from financing activities.

Stock compensation
plans are discussed in detail in Note 9 of the Notes to Consolidated Financial Statements.

Recently Adopted Accounting Standards

Revenue from Contracts with Customers

In May 2014, the FASB
issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes previous
revenue recognition guidance. The FASB issued several updates amending or relating to ASU 2014-09 (collectively, the “new
revenue standard”). The Company has adopted the new revenue standard effective beginning in the 2018 fiscal year using the
full retrospective method, which requires the Company to restate each prior reporting period presented in future financial statement
issuances. The impacts of adopting the new revenue standard relate to our accounting for certain arrangements within the auto segment.

A portion of the Company’s
auto segment contracts have historically been accounted for under Accounting Standards Codification (ASC) Topic 985-605 Software-Revenue
Recognition (Topic 985-605). Under Topic 985-605, the Company deferred revenue and associated costs of all elements of multiple-element
software arrangements if vendor-specific objective evidence of fair value (VSOE) could not be established for an undelivered element
(e.g. map updates). In applying the new revenue standard to certain contracts that include both software licenses and map updates,
we now recognize the portion of revenue and costs related to the software license at the time of delivery rather than ratably over
the map update period.

Additionally, for certain
multiple-element arrangements within the Company’s auto segment, the Company’s policy had been to allocate consideration
to traffic services and recognize the revenue and associated cost of royalties ratably over the estimated life of the underlying
product. Under the new revenue standard, we recognize revenue and associated costs of royalties related to certain broadcast traffic
services at the time of hardware and/or software delivery. Specifically, the new revenue standard emphasizes the timing of the
Company’s performance, and upon delivery of the navigation device and/or software, the Company has fully performed its obligation
with respect to the design and production of the product to receive and interpret the broadcast traffic signal for the benefit
of the end user.

The changes in accounting
policy described above collectively result in reductions to deferred costs (asset) and deferred revenue (liability) balances, and
accelerate the recognition of revenue and deferred costs in the auto segment going forward.

Summarized financial
information depicting the impact of the new revenue standard is presented below. The Company’s historical net cash flows
provided by or used in operating, investing, and financing activities are not impacted by adoption of the new revenue standard.

December 30, 2017 December 31, 2016
As reported Restated(1) Impact As reported Restated(1) Impact
Current assets:
Deferred costs $ 48,312 $ 30,525 $ (17,787 ) $ 47,395 $ 34,665 $ (12,730 )
Total current assets 2,363,925 2,346,138 (17,787 ) 2,263,016 2,250,286 (12,730 )
Deferred income taxes 199,343 195,981 (3,362 ) 110,293 107,655 (2,638 )
Noncurrent deferred costs 73,851 33,029 (40,822 ) 56,151 30,934 (25,217 )
Total assets $ 5,010,260 $ 4,948,289 $ (61,971 ) $ 4,525,133 $ 4,484,549 $ (40,584 )
Current liabilities:
Deferred revenue 139,681 103,140 (36,541 ) 146,564 118,496 (28,068 )
Total current liabilities 828,656 792,115 (36,541 ) 782,735 754,667 (28,068 )
Deferred income taxes 75,215 76,612 1,397 61,220 62,617 1,397
Non-current deferred revenue 163,840 87,060 (76,780 ) 140,407 91,238 (49,169 )
Retained earnings 2,368,874 2,418,444 49,570 2,056,702 2,092,221 35,519
Accumulated other comprehensive income 56,045 56,428 383 (36,761 ) (37,024 ) (263 )
Total stockholders’ equity 3,802,466 3,852,419 49,953 3,418,003 3,453,259 35,256
Total liabilities and stockholders’ equity $ 5,010,260 $ 4,948,289 $ (61,971 ) $ 4,525,133 $ 4,484,549 $ (40,584 )

52-Weeks Ended December 30, 2017 53-Weeks Ended December 31, 2016
As reported Restated(1) Impact As reported Restated(1) Impact
Net sales $ 3,087,004 $ 3,121,560 $ 34,556 $ 3,018,665 $ 3,045,797 $ 27,132
Gross profit 1,783,164 1,797,941 14,777 1,679,570 1,688,525 8,955
Operating income 668,860 683,637 14,777 623,909 632,864 8,955
Income tax (benefit) provision (12,661 ) (11,936 ) 725 118,856 120,901 2,045
Net income $ 694,955 $ 709,007 $ 14,052 $ 510,814 $ 517,724 $ 6,910
Diluted net income per share $ 3.68 $ 3.76 $ 0.08 $ 2.70 $ 2.73 $ 0.03

(1) The Restated results presented above are restated under
ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated
adoption impact in Note 2, Summary of Significant Accounting Policies, in the notes to the consolidated financial statements of
our fiscal 2017 Annual Report on Form 10-K filed with the SEC on February 21, 2018 have been revised in this Note by immaterial
amounts in connection with our adoption of ASC Topic 606.

Financial Instruments – Recognition,
Measurement, Presentation, and Disclosure

In January 2016, the
FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement
of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition,
measurement, presentation, and disclosure of financial instruments. The Company has adopted the new standard effective beginning
in the 2018 fiscal year. The adoption did not have a material impact on the Company’s financial position or results of operations.

Statement of Cash Flows

In August 2016, the
FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts
and Cash Payments (“ASU 2016-15”), which adds or clarifies guidance on the classification of certain cash receipts
and payments in the statement of cash flows. The standard addresses eight specific cash flow issues with the objective of reducing
diversity in practice. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic
230): Restricted Cash (“ASU 2016-18”), which requires restricted cash and restricted cash equivalents to be included
with cash and cash equivalents when reconciling changes in the total amounts within the statement of cash flows. The Company has
adopted the new standards effective beginning in the 2018 fiscal year. The adoption of ASU 2016-15 did not have a material impact
to the Company’s statements of cash flows. The amendments of ASU 2016-18 were applied using a retrospective transition method,
resulting in immaterial changes to the presentation of the Company’s statements of cash flows.

Income Taxes

In October 2016, the
FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory
(“ASU 2016-16”), which requires recognition of the income tax consequences of an intra-entity transfer of an asset
other than inventory when the transfer occurs. The Company has adopted the new standard effective beginning in the 2018 fiscal
year, which resulted in a reclassification of approximately $1,700 of certain prepaid tax balances in a cumulative effect to retained
earnings as of the date of adoption.

Income Statement – Reporting Comprehensive
Income

In February 2018, the
FASB issued Accounting Standards Update No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification
of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which allows for stranded tax effects
in accumulated other comprehensive income resulting from the U.S. Tax Cuts and Jobs Act to be reclassified to retained earnings.
The Company has elected to early adopt the new standard effective beginning in the 2018 fiscal year, resulting in reclassification
of approximately $452 from accumulated other comprehensive income into retained earnings. The tax effects that were reclassified
only relate to amounts resulting from the U.S. Tax Cuts and Jobs Act.

3. Marketable Securities

The FASB ASC topic
jogosult Fair Value Measurements and Disclosures defines fair value as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). la
accounting guidance classifies the inputs used to measure fair value into the following hierarchy:

Level 1 Unadjusted quoted prices in active markets for identical
assets or liability

Level 2 Observable inputs for the asset or liability, either
directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical
or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the
asset or liability

Level 3 Unobservable inputs for the asset or liability

The Company endeavors
to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety
based on the lowest level of input that is significant to the fair value measurement. Valuation is based on prices obtained from
an independent pricing vendor using both market and income approaches. The primary inputs to the valuation include quoted prices
for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, contractual
cash flows, benchmark yields, and credit spreads.

The method described
above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.
Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the
use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different
fair value measurement at the reporting date.

Available-for-sale
securities measured at fair value on a recurring basis are summarized below:

Fair Value Measurements as
of December 29, 2018
Total Level 1 Level 2 Level 3
U.S. Treasury securities $ 22,128 $ $ 22,128 $
Agency securities 59,116 59,116
Mortgage-backed securities 135,865 135,865
Corporate securities 980,524 980,524
Municipal securities 173,137 173,137
Other 142,342 142,342
Total $ 1,513,112 $ $ 1,513,112 $

Fair Value Measurements as
of December 30, 2017
Total Level 1 Level 2 Level 3
U.S. Treasury securities $ 19,337 $ $ 19,337 $
Agency securities 43,361 43,361
Mortgage-backed securities 174,615 174,615
Corporate securities 816,793 816,793
Municipal securities 186,105 186,105
Other 181,509 181,509
Total $ 1,421,720 $ $ 1,421,720 $

Marketable securities
classified as available-for-sale securities are summarized below:

Available-For-Sale Securities as
of December 29, 2018
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
U.S. Treasury securities $ 22,485 $ $ (357 ) $ 22,128
Agency securities 60,088 28 (1,000 ) 59,116
Mortgage-backed securities 142,176 1 (6,312 ) 135,865
Corporate securities 1,010,590 33 (30,099 ) 980,524
Municipal securities 175,630 73 (2,566 ) 173,137
Other 144,606 0 (2,264 ) 142,342
Total $ 1,555,575 $ 135 $ (42,598 ) $ 1,513,112

Available-For-Sale Securities as
of December 30, 2017
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
U.S. Treasury securities $ 19,591 $ $ (254 ) $ 19,337
Agency securities 44,191 1 (831 ) 43,361
Mortgage-backed securities 180,470 13 (5,868 ) 174,615
Corporate securities 830,447 136 (13,790 ) 816,793
Municipal securities 187,999 110 (2,004 ) 186,105
Other 183,730 2 (2,223 ) 181,509
Total $ 1,446,428 $ 262 $ (24,970 ) $ 1,421,720

The Company’s
investment policy targets low risk investments with the objective of minimizing the potential risk of principal loss. The fair
value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral
and in the credit performance of the underlying issuer, among other factors. The Company does not intend to sell the securities
that have an unrealized loss shown in the table above, and it is not more likely than not that the Company will be required to
sell a security before recovery of its amortized cost basis, which may be maturity.

The Company recognizes
the credit component of other-than-temporary impairments of debt securities in “Other Income” and the noncredit component
in “Other comprehensive income” for those securities that we do not intend to sell and for which it is not more likely
than not that we will be required to sell before recovery.  During 2018 and 2017, the Company did not record any material
impairment charges on its outstanding securities.

The amortized cost
and fair value of the securities at an unrealized loss position at December 29, 2018 were $1,488,514 and $1,445,916 respectively.
Approximately 86% of securities in our portfolio were at an unrealized loss position at December 29, 2018. We have the ability
to hold these securities until maturity or their value is recovered. We do not consider these unrealized losses to be other than
temporary credit losses because there has been no material deterioration in credit quality and no change in the cash flows of the
underlying securities. We do not intend to sell the securities and it is not more likely than not that we will be required to sell
the securities; therefore, no material impairment has been recorded in the accompanying consolidated statement of income.

The cost of securities
sold is based on the specific identification method.

The following tables
display additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities
in an unrealized loss position as of December 29, 2018 and December 30, 2017.

As of December 29, 2018
Less than 12 Consecutive Months 12 Consecutive Months or Longer
Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value
U.S. Treasury securities $ (3 ) $ 3,975 $ (354 ) $ 18,153
Agency securities (5 ) 4,656 (995 ) 40,508
Mortgage-backed securities (1 ) 361 (6,311 ) 135,323
Corporate securities (4,028 ) 323,633 (26,071 ) 640,439
Municipal securities (454 ) 38,371 (2,112 ) 118,362
Other (102 ) 8,015 (2,162 ) 114,120
Total $ (4,593 ) $ 379,011 $ (38,005 ) $ 1,066,905

As of December 30, 2017
Less than 12 Consecutive Months 12 Consecutive Months or Longer
Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value
U.S. Treasury securities $ (111 ) $ 12,966 $ (143 ) $ 6,371
Agency securities (168 ) 16,097 (663 ) 25,972
Mortgage-backed securities (503 ) 19,628 (5,365 ) 153,835
Corporate securities (4,562 ) 439,174 (9,228 ) 347,052
Municipal securities (1,027 ) 125,819 (977 ) 38,167
Other (2,219 ) 136,147 (4 ) 2,579
Total $ (8,590 ) $ 749,831 $ (16,38