The following table illustrates the effect of decreasing amounts of revenue and cost deferrals, and of increasing amortization of previous deferrals, associated with certain products bundled with content and services in the current quarter and year-to-date periods. These deferred revenues and costs are being amortized over the estimated economic lives of the products. Additional details will be available in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 and are available in the Annual Report on Form 10-K for the year ended December 31, 2011 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983).
| Garmin Ltd. And Subsidiaries | ||||||||||||||||||||||||||||
| Net Deferred Revenue Impact (Unaudited) | ||||||||||||||||||||||||||||
| (In thousands, except per share information) | ||||||||||||||||||||||||||||
| 13-Weeks Ended | 26-Weeks Ended | |||||||||||||||||||||||||||
| June 30, | June 25, | June 30, | June 25, | |||||||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||
| Net sales | $ | (15,947 | ) | $ | (61,701 | ) | $ | (15,225 | ) | $ | (83,527 | ) | ||||||||||||||||
| Cost of goods sold | (4,762 | ) | (10,652 | ) | (4,608 | ) | (14,557 | ) | ||||||||||||||||||||
| Gross profit | (11,185 | ) | (51,049 | ) | (10,617 | ) | (68,970 | ) | ||||||||||||||||||||
| Operating income | (11,185 | ) | (51,049 | ) | (10,617 | ) | (68,970 | ) | ||||||||||||||||||||
| Income tax provision based on normalized tax effects | (1,161 | ) | (7,068 | ) | (1,184 | ) | (5,862 | ) | ||||||||||||||||||||
| Net income | $ | (10,024 | ) | $ | (43,981 | ) | $ | (9,433 | ) | $ | (63,108 | ) | ||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||||||
| Basic | $ | (0.05 | ) | $ | (0.23 | ) | $ | (0.05 | ) | $ | (0.33 | ) | ||||||||||||||||
| Diluted | $ | (0.05 | ) | $ | (0.23 | ) | $ | (0.05 | ) | $ | (0.32 | ) | ||||||||||||||||
