Document and Entity Information
Document and Entity Information - shares shares in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Oct. 29, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | GARMIN LTD | |
Entity Central Index Key | 1,121,788 | |
Document Type | 10-Q | |
Trading Symbol | GRMN | |
Document Period End Date | Sep. 29, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-29 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 198,077,418 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,056,397 | $ 891,488 |
Marketable securities | 173,697 | 161,687 |
Accounts receivable, net | 467,784 | 590,882 |
Inventories | 556,640 | 517,644 |
Deferred costs | 28,235 | 30,525 |
Prepaid expenses and other current assets | 117,866 | 153,912 |
Total current assets | 2,400,619 | 2,346,138 |
Property and equipment, net | 650,805 | 595,684 |
Restricted cash | 145 | 271 |
Marketable securities | 1,301,111 | 1,260,033 |
Deferred income taxes | 186,445 | 195,981 |
Noncurrent deferred costs | 29,732 | 33,029 |
Intangible assets, net | 424,776 | 409,801 |
Other assets | 102,334 | 107,352 |
Total assets | 5,095,967 | 4,948,289 |
Current liabilities: | ||
Accounts payable | 197,069 | 169,640 |
Salaries and benefits payable | 101,190 | 102,802 |
Accrued warranty costs | 35,960 | 36,827 |
Accrued sales program costs | 59,708 | 93,250 |
Deferred revenue | 97,604 | 103,140 |
Accrued royalty costs | 27,213 | 32,204 |
Accrued advertising expense | 24,213 | 30,987 |
Other accrued expenses | 67,426 | 93,652 |
Income taxes payable | 43,519 | 33,638 |
Dividend payable | 200,124 | 95,975 |
Total current liabilities | 854,026 | 792,115 |
Deferred income taxes | 82,846 | 76,612 |
Noncurrent income taxes | 126,893 | 138,295 |
Noncurrent deferred revenue | 77,634 | 87,060 |
Other liabilities | 1,860 | 1,788 |
Stockholders' equity: | ||
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 188,809 shares outstanding at September 29, 2018; and 188,189 shares outstanding at December 30, 2017; | 17,979 | 17,979 |
Additional paid-in capital | 1,842,551 | 1,828,386 |
Treasury stock | (433,274) | (468,818) |
Retained earnings | 2,520,828 | 2,418,444 |
Accumulated other comprehensive income | 4,624 | 56,428 |
Total stockholders' equity | 3,952,708 | 3,852,419 |
Total liabilities and stockholders' equity | $ 5,095,967 | $ 4,948,289 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - SFr / shares shares in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Common shares, authorized | 198,077 | 198,077 |
Common shares, issued | 198,077 | 198,077 |
Common shares, outstanding | 188,809 | 188,189 |
CHF [Member] | ||
Common shares, par value (in swiss francs per share) | SFr 0.10 | SFr 0.10 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 810,011 | $ 751,244 | $ 2,415,336 | $ 2,224,241 |
Cost of goods sold | 329,264 | 313,721 | 984,783 | 929,782 |
Gross profit | 480,747 | 437,523 | 1,430,553 | 1,294,459 |
Advertising expense | 31,140 | 32,449 | 100,000 | 105,983 |
Selling, general and administrative expense | 114,669 | 101,794 | 352,234 | 309,095 |
Research and development expense | 138,979 | 129,632 | 422,649 | 379,083 |
Total operating expense | 284,788 | 263,875 | 874,883 | 794,161 |
Operating income | 195,959 | 173,648 | 555,670 | 500,298 |
Other income (expense): | ||||
Interest income | 11,089 | 9,207 | 32,310 | 26,931 |
Foreign currency (losses) gains | (6,868) | 8,579 | (3,405) | (13,808) |
Other income (expense) | 1,147 | (1,520) | 6,800 | (805) |
Total other income (expense) | 5,368 | 16,266 | 35,705 | 12,318 |
Income before income taxes | 201,327 | 189,914 | 591,375 | 512,616 |
Income tax provision (benefit) | 17,113 | 38,840 | 87,445 | (53,840) |
Net income | $ 184,214 | $ 151,074 | $ 503,930 | $ 566,456 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.98 | $ 0.81 | $ 2.67 | $ 3.01 |
Diluted (in dollars per share) | $ 0.97 | $ 0.80 | $ 2.66 | $ 3 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 188,799 | 187,616 | 188,554 | 187,902 |
Diluted (in shares) | 190,005 | 188,490 | 189,586 | 188,671 |
Dividends declared per share (in dollars per share) | $ 2.12 | $ 2.04 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 184,214 | $ 151,074 | $ 503,930 | $ 566,456 |
Foreign currency translation adjustment | (3,940) | 5,689 | (30,308) | 71,591 |
Change in fair value of available-for-sale marketable securities, net of deferred taxes | (1,168) | 536 | (21,044) | 11,938 |
Comprehensive income | $ 179,106 | $ 157,299 | $ 452,578 | $ 649,985 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | |
Operating activities: | |||||
Net income | $ 184,214 | $ 151,074 | $ 503,930 | $ 566,456 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 47,902 | 44,011 | |||
Amortization | 23,574 | 19,688 | |||
Gain on sale or disposal of property and equipment | (491) | (184) | |||
Provision for doubtful accounts | 1,265 | 551 | |||
Provision for obsolete and slow moving inventories | 17,719 | 16,504 | |||
Unrealized foreign currency loss | 4,158 | 17,786 | |||
Deferred income taxes | 20,177 | (143,314) | |||
Stock compensation expense | 42,094 | 32,441 | |||
Realized losses on marketable securities | 481 | 594 | |||
Changes in operating assets and liabilities, net of acquisitions: | |||||
Accounts receivable | 111,955 | 84,982 | |||
Inventories | (69,139) | (86,631) | |||
Other current and non-current assets | 5,102 | (9,635) | |||
Accounts payable | 32,601 | (24,526) | |||
Other current and non-current liabilities | (57,245) | (37,403) | |||
Deferred revenue | (14,923) | (21,478) | |||
Deferred costs | 5,581 | 3,459 | |||
Income taxes payable | 27,041 | (724) | |||
Net cash provided by operating activities | 701,782 | 462,577 | |||
Investing activities: | |||||
Purchases of property and equipment | (122,846) | (85,211) | |||
Proceeds from sale of property and equipment | 1,296 | 264 | |||
Purchase of intangible assets | (2,982) | (9,069) | |||
Purchase of marketable securities | (314,179) | (438,046) | |||
Redemption of marketable securities | 229,066 | 455,376 | |||
Acquisitions, net of cash acquired | (29,170) | (12,400) | |||
Net cash used in investing activities | (238,815) | (89,086) | |||
Financing activities: | |||||
Dividends | (296,149) | (287,318) | |||
Proceeds from issuance of treasury stock related to equity awards | 14,524 | 10,316 | |||
Purchase of treasury stock related to equity awards | (6,909) | (3,587) | |||
Purchase of treasury stock under share repurchase plan | (74,523) | ||||
Net cash used in financing activities | (288,534) | (355,112) | |||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (9,650) | 26,021 | |||
Net increase in cash, cash equivalents, and restricted cash | 164,783 | 44,400 | |||
Cash, cash equivalents, and restricted cash at beginning of period | 891,759 | 846,996 | $ 846,996 | ||
Cash, cash equivalents, and restricted cash at end of period | $ 1,056,542 | $ 891,396 | $ 1,056,542 | $ 891,396 | $ 891,759 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | 1. Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Additionally, the condensed consolidated financial statements should be read in conjunction with Item 2 of Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in this Form 10-Q. Operating results for the 13-week and 39-week periods ended September 29, 2018 are not necessarily indicative of the results that may be expected for the year ending December 29, 2018. The condensed consolidated balance sheet at December 30, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 30, 2017. The Company’s fiscal year is based on a 52-53 week period ending on the last Saturday of the calendar year. Therefore, the financial results of certain 53-week fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. The quarters ended September 29, 2018 and September 30, 2017 both contain operating results for 13 weeks. 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-Q 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. 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 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 will 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 has 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 will recognize revenue and associated costs of royalties related to certain 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. 13-Weeks Ended September 30, 2017 39-Weeks Ended September 30, 2017 As reported Restated (1) Impact As reported Restated (1) Impact Net sales $ 743,077 $ 751,244 $ 8,167 $ 2,198,508 $ 2,224,241 $ 25,733 Gross profit 433,665 437,523 3,858 1,283,646 1,294,459 10,813 Operating income 169,790 173,648 3,858 489,485 500,298 10,813 Income tax provision (benefit) 38,643 38,840 197 (54,372 ) (53,840 ) 532 Net income $ 147,413 $ 151,074 $ 3,661 $ 556,175 $ 566,456 $ 10,281 Diluted net income per share $ 0.78 $ 0.80 $ 0.02 $ 2.95 $ 3.00 $ 0.05 (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 our press release attached as Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606. December 30, 2017 December 31, 2016 As reported Restated (2) Impact As reported Restated (2) 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 (2) Impact As reported Restated (2) 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 (2) 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. The total of cash and cash equivalents and restricted cash balances presented on the condensed consolidated balance sheet reconciles to the total cash, cash equivalents, and restricted cash shown in the condensed consolidated 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. Significant Accounting Policies For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 2, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017. Other than the policies discussed below, there were no material changes to the Company’s significant accounting policies during the 39-week period ended September 29, 2018. 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. The 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 as it relates 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. 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 Revenue and Costs Deferred revenue consists primarily of the transaction price allocated to performance obligations that are recognized over a period of time basis as discussed in the Revenue Recognition 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 condensed consolidated financial statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories The components of inventories consist of the following: September 29, December 30, 2018 2017 Raw materials $ 203,472 $ 179,659 Work-in-process 92,050 75,754 Finished goods 261,118 262,231 Inventories $ 556,640 $ 517,644 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 29, 2018 | |
Net income per share: | |
Earnings Per Share | 3. Earnings Per Share The following table sets forth the computation of basic and diluted net income per share: 13-Weeks Ended September 29, September 30, 2018 2017 Numerator: Numerator for basic and diluted net income per share - net income $ 184,214 $ 151,074 Denominator: Denominator for basic net income per share – weighted-average common shares 188,799 187,616 Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units 1,206 874 Denominator for diluted net income per share – adjusted weighted-average common shares 190,005 188,490 Basic net income per share $ 0.98 $ 0.81 Diluted net income per share $ 0.97 $ 0.80 39-Weeks Ended September 29, September 30, 2018 2017 Numerator: Numerator for basic and diluted net income per share - net income $ 503,930 $ 566,456 Denominator: Denominator for basic net income per share – weighted-average common shares 188,554 187,902 Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units 1,032 769 Denominator for diluted net income per share – adjusted weighted-average common shares 189,586 188,671 Basic net income per share $ 2.67 $ 3.01 Diluted net income per share $ 2.66 $ 3.00 There were no anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) outstanding during the 13-week period ended September 29, 2018 and 1,051 anti-dilutive equity awards outstanding during the 13-week period ended September 30, 2017. There were no anti-dilutive equity awards outstanding during the 39-week period ended September 29, 2018 and 1,567 anti-dilutive equity awards outstanding during the 39-week period ended September 30, 2017. There were 12 and 2 net shares issued as a result of exercises and releases of equity awards for the 13-week periods ended September 29, 2018 and September 30, 2017, respectively. There were 390 and 161 net shares issued as a result of exercises and releases of equity awards for the 39-week periods ended September 29, 2018 and September 30, 2017, respectively. There were 230 employee stock purchase plan (ESPP) shares issued from outstanding Treasury stock during the 39-week period ended September 29, 2018. There were 248 ESPP shares issued from outstanding Treasury stock during the 39-week period ended September 30, 2017. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 4. Segment Information The Company has identified five reportable segments – auto, aviation, marine, outdoor and fitness. Net sales (“revenue”), gross profit, and operating income for each of the Company’s reportable segments are presented below. Reportable Segments Outdoor Fitness Marine Auto Aviation Total 13-Weeks Ended September 29, 2018 Net sales $ 209,415 $ 190,185 $ 98,770 $ 165,214 $ 146,427 $ 810,011 Gross profit 136,671 103,441 58,508 70,925 111,202 480,747 Operating income 78,972 37,378 13,908 15,032 50,669 195,959 13-Weeks Ended September 30, 2017 Net sales $ 184,937 $ 167,147 $ 77,312 $ 197,220 $ 124,628 $ 751,244 Gross profit 118,175 96,135 44,574 87,819 90,820 437,523 Operating income 67,810 33,492 18,420 19,829 34,097 173,648 39-Weeks Ended September 29, 2018 Net sales $ 555,314 $ 581,315 $ 346,908 $ 486,653 $ 445,146 $ 2,415,336 Gross profit 358,829 326,473 203,976 207,389 333,886 1,430,553 Operating income 194,711 123,299 54,806 31,113 151,741 555,670 39-Weeks Ended September 30, 2017 Net sales $ 495,589 $ 485,999 $ 290,302 $ 580,792 $ 371,559 $ 2,224,241 Gross profit 319,457 276,014 166,690 257,744 274,554 1,294,459 Operating income 176,544 89,452 60,860 61,379 112,063 500,298 Allocation of certain research and development expenses, and selling, general, and administrative expenses are made to each segment on a percent of revenue basis. Net sales to external customers by geographic region were as follows for the 13-week and 39-week periods ended September 29, 2018 and September 30, 2017. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa: 13-Weeks Ended 39-Weeks Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Americas $ 370,239 $ 346,208 $ 1,153,330 $ 1,072,247 EMEA 307,087 291,703 862,116 831,687 APAC 132,685 113,333 399,890 320,307 Net sales to external customers $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241 Net property and equipment by geographic region as of September 29, 2018 and September 30, 2017 are presented below. Americas APAC EMEA Total September 29, 2018 Property and equipment, net $ 403,556 $ 202,790 $ 44,459 $ 650,805 September 30, 2017 Property and equipment, net $ 356,351 $ 160,360 $ 37,730 $ 554,441 |
Warranty Reserves
Warranty Reserves | 9 Months Ended |
Sep. 29, 2018 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserves | 5. Warranty Reserves The Company’s products sold are generally covered by a standard warranty for periods ranging from one to three years. The Company’s estimate of costs to service its warranty obligations are based on historical experience and expectation of future conditions and are recorded as a liability on the balance sheet. The following reconciliation provides an illustration of changes in the aggregate warranty reserve. 13-Weeks Ended September 29, September 30, 2018 2017 Balance - beginning of period $ 38,429 $ 37,012 Accrual for products sold during the period 13,558 16,903 Expenditures (16,027 ) (18,246 ) Balance - end of period $ 35,960 $ 35,669 39-Weeks Ended September 29, September 30, 2018 2017 Balance - beginning of period $ 36,827 $ 37,233 Accrual for products sold during the period 40,682 40,850 Expenditures (41,549 ) (42,414 ) Balance - end of period $ 35,960 $ 35,669 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Commitments The Company is party to certain 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 September 29, 2018 was approximately $346,000. 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. Contingencies In the normal course of business, the Company and its subsidiaries are parties to various legal claims, investigations and complaints, including matters alleging patent infringement and other intellectual property claims. The Company evaluates, on a quarterly and annual basis, developments in legal proceedings, investigations, claims, and other loss contingencies that could affect any required accrual or disclosure or estimate of reasonably possible loss or range of loss. An estimated loss from a loss contingency is accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, the Company accrues the minimum amount in the range. If an outcome unfavorable to the Company is determined to be probable, but the amount of loss cannot be reasonably estimated or is determined to be reasonably possible, but not probable, we disclose the nature of the contingency and an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company’s aggregate range of reasonably possible losses includes (1) matters where a liability has been accrued and there is a reasonably possible loss in excess of the amount accrued for that liability, and (2) matters where a loss is believed to be reasonably possible, but not probable, and a liability therefore has not been accrued. This aggregate range only represents the Company’s estimate of reasonably possible losses and does not represent the Company’s maximum loss exposure. The assessment regarding whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. In assessing the probability of an outcome in a lawsuit, claim or assessment that could be unfavorable to the Company, we consider the following factors, among others: a) the nature of the litigation, claim, or assessment; b) the progress of the case; c) the opinions or views of legal counsel and other advisers; d) our experience in similar cases; e) the experience of other entities in similar cases; and f) how we intend to respond to the lawsuit, claim, or assessment. Costs incurred in defending lawsuits, claims or assessments are expensed as incurred. Management of the Company currently does not believe it is reasonably possible that the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies in the aggregate, for the fiscal quarter ended September 29, 2018. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. An adverse resolution of one or more of such matters in excess of management’s expectations could have a material adverse effect in the particular quarter or fiscal year in which a loss is recorded, but based on information currently known, the Company does not believe it is likely that losses from such matters would have a material adverse effect on the Company’s business or its consolidated financial position, results of operations or cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The Company recorded income tax expense of $17,113 in the 13-week period ended September 29, 2018, compared to income tax expense of $38,840 in the 13-week period ended September 30, 2017. The effective tax rate was 8.5% in the third quarter of 2018, compared to 20.5% in the third quarter of 2017. The 1,200 basis points decrease to the third quarter of 2018 effective tax rate compared to the prior year quarter is primarily due to the reduction of the U.S. corporate tax rate and increased benefit from U.S. research and development tax credits. The Company recorded income tax expense of $87,445 in the first three quarters of 2018, compared to an income tax benefit of $53,840 in the first three quarters of 2017, which included tax expense of $7,275 associated with the expiration of share-based awards and an income tax benefit of $168,755 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. The effective tax rate was 14.8% in the first three quarters of 2018, compared to (10.5%) in the first three quarters of 2017. Excluding the income tax benefit of $168,755 primarily related to the revaluation of Switzerland deferred tax assets, and the $7,275 tax expense due to the expiration of share-based awards, the effective tax rate for the first three quarters of 2018 decreased 620 basis points compared to the effective tax rate in the first three quarters of 2017 primarily due to the reduction of the U.S. corporate tax rate and increased benefit from U.S. research and development tax credits. On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law in the United States. Due to the complexities of the new tax legislations, the SEC has issued Staff Accounting Bulletin No. 118 (“SAB 118”) which allows for the recognition of provisional amounts during a measurement period. The Company recorded a provisional re-measurement of its deferred tax assets and liabilities in the fourth quarter of 2017. The Company filed its U.S. federal income tax return during the third quarter of 2018 which did not result in an adjustment of its provisional re-measurement of its deferred tax assets and liabilities. Income tax expense recorded in the third quarter of 2018 includes the impact of the new tax legislation as currently interpreted by the Company. The Company will continue to assess the impact of the new tax legislation, including any state tax impact or any related future regulations and rules, and will record any additional impacts as identified during the measurement period, if necessary. The Company does not expect such potential adjustments in the future periods will materially impact the Company’s financial condition or result of operations. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 29, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | 8. Marketable Securities The Financial Accounting Standards Board (“FASB”) ASC topic entitled 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). The accounting guidance classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for the identical asset 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 Total Level 1 Level 2 Level 3 U.S. Treasury securities $ 25,040 $ — $ 25,040 $ — Agency securities 46,291 — 46,291 — Mortgage-backed securities 140,318 — 140,318 — Corporate securities 942,532 — 942,532 — Municipal securities 168,588 — 168,588 — Other 152,039 — 152,039 — Total $ 1,474,808 $ — $ 1,474,808 $ — Fair Value Measurements as 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 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 25,499 $ — $ (459 ) $ 25,040 Agency securities 47,653 — (1,362 ) 46,291 Mortgage-backed securities 148,837 3 (8,522 ) 140,318 Corporate securities 974,227 47 (31,742 ) 942,532 Municipal securities 172,157 3 (3,572 ) 168,588 Other 155,200 0 (3,161 ) 152,039 Total $ 1,523,573 $ 53 $ (48,818 ) $ 1,474,808 Available-For-Sale Securities as 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 costs 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 (loss)” 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 fiscal 2017 and the 39-week period ended September 29, 2018, 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 as of September 29, 2018 were $1,480,955 and $1,432,137, respectively. Approximately 85% of securities in our portfolio were at an unrealized loss position as of September 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 condensed 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 September 29, 2018 and December 30, 2017. As of September 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 $ (90 ) $ 11,405 $ (369 ) $ 13,635 Agency securities (48 ) 7,700 (1,314 ) 38,591 Mortgage-backed securities (9 ) 513 (8,513 ) 139,339 Corporate securities (9,256 ) 477,194 (22,486 ) 449,488 Municipal securities (1,766 ) 106,380 (1,806 ) 60,281 Other (830 ) 37,869 (2,331 ) 89,742 Total $ (11,999 ) $ 641,061 $ (36,819 ) $ 791,076 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 $ (16,380 ) $ 573,976 The amortized cost and fair value of marketable securities at September 29, 2018, by maturity, are shown below. Amortized Cost Fair Value Due in one year or less $ 174,578 $ 173,697 Due after one year through five years 1,228,112 1,189,069 Due after five years through ten years 120,883 112,042 $ 1,523,573 $ 1,474,808 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income | 9. Accumulated Other Comprehensive Income The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week and 39-week periods ended September 29, 2018: 13-Weeks Ended September 29, 2018 Foreign Currency Translation Adjustment Net unrealized gains (losses) on available-for-sale securities Total Beginning Balance $ 52,924 $ (43,192 ) $ 9,732 Other comprehensive income before reclassification, net of income tax benefit of $107 (3,940 ) (1,353 ) (5,293 ) Amounts reclassified from accumulated other comprehensive income — 185 185 Net current-period other comprehensive income (3,940 ) (1,168 ) (5,108 ) Reclassification of tax effects due to adoption of ASU 2018-02 — — — Ending Balance $ 48,984 $ (44,360 ) $ 4,624 39-Weeks Ended September 29, 2018 Foreign Currency Translation Adjustment Net unrealized gains (losses) on available-for-sale securities Total Beginning Balance $ 79,292 $ (22,864 ) $ 56,428 Other comprehensive income before reclassification, net of income tax benefit of $3,014 (30,308 ) (21,490 ) (51,798 ) Amounts reclassified from accumulated other comprehensive income — 446 446 Net current-period other comprehensive income (30,308 ) (21,044 ) (51,352 ) Reclassification of tax effects due to adoption of ASU 2018-02 — (452 ) (452 ) Ending Balance $ 48,984 $ (44,360 ) $ 4,624 The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 39-week periods ended September 29, 2018: 13-Weeks Ended September 29, 2018 Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented Unrealized gains (losses) on available-for-sale securities $ (250 ) Other income (expense) 65 Income tax benefit (provision) $ (185 ) Net of tax 39-Weeks Ended September 29, 2018 Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented Unrealized gains (losses) on available-for-sale securities $ (481 ) Other income (expense) 35 Income tax benefit (provision) $ (446 ) Net of tax |
Revenue
Revenue | 9 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 10. Revenue In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, we disaggregate revenue (or “net sales”) by geographic region, major product category, and pattern of recognition. Disaggregated revenue by geographic region (Americas, APAC, and EMEA) is presented in Note 4 – Segment Information. The Company has identified six major product categories – aviation, marine, outdoor, fitness, auto PND, and auto OEM. Note 4 also contains disaggregated revenue information of the aviation, marine, outdoor and fitness major product categories. Auto segment revenue presented in Note 4 is comprised of the auto PND and auto OEM major product categories as depicted below. Auto Revenue by Major Product Category 13-Weeks Ended 39-Weeks Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Auto PND 64 % 70 % 66 % 69 % Auto OEM 36 % 30 % 34 % 31 % A large majority of the Company’s sales are recognized on a point in time basis, usually once the product is shipped and title and risk of loss have transferred to the customer. Sales recognized over a period of time are primarily within the auto segment and relate to performance obligations that are satisfied over the life of the product or contractual service period. Revenue disaggregated by the timing of transfer of the goods or services is presented in the table below: 13-Weeks Ended 39-Weeks Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Point in time $ 761,216 $ 708,854 $ 2,286,740 $ 2,098,468 Over time 48,795 42,390 128,596 125,773 Net sales $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241 Transaction price and costs associated with the Company’s unsatisfied performance obligations are reflected as deferred revenue and deferred costs, respectively, on the Company’s Condensed Consolidated Balance Sheets. Such amounts are recognized ratably over the applicable service period or estimated useful life. Changes in deferred revenue and costs during the 39-weeks ended September 29, 2018 are presented below: 39-Weeks Ended September 29, 2018 Deferred Revenue (1) Deferred Costs (2) Balance, beginning of period $ 190,200 $ 63,554 Deferrals in period 113,634 27,445 Recognition of deferrals in period (128,596 ) (33,032 ) Balance, end of period $ 175,238 $ 57,967 (1) (2) Of the $128,596 of deferred revenue recognized in the 39-weeks ended September 29, 2018, $88,775 was deferred as of the beginning of the period. Approximately two-thirds of the $175,238 of deferred revenue at the end of the period, September 29, 2018, is recognized ratably over a period of three years or less. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements Not Yet Adopted | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements Not Yet Adopted | 11. Recently Issued Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The FASB subsequently issued Accounting Standards Update No. 2018-10 and Accounting Standards Update No. 2018-11 in July 2018, which provide clarifications and improvements to ASU 2016-02 (collectively, the “new lease standard”). Accounting Standards Update No. 2018-11 also provides the optional transition method which allows companies to apply the new lease standard at the adoption date instead of at the earliest comparative period presented. The new lease standard requires lessees to present a right-of-use asset and a corresponding lease liability on the balance sheet. Lessor accounting is substantially unchanged compared to the current accounting guidance. Additional footnote disclosures related to leases will also be required. The new lease standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company will adopt the new lease standard at the beginning of the 2019 fiscal year using the optional transition method. The Company plans on electing the package of transitional practical expedients upon adoption which, among other provisions, allows the Company to carry forward historical lease classification. The new lease standard will result in increases to the assets and liabilities on the Company’s consolidated balance sheets, as the majority of the Company’s leases are classified as operating leases. The Company continues to evaluate the full quantitative impact of adopting the new lease standard. The Company is also in the process of implementing changes to accounting policies, processes, systems, and internal controls in conjunction with adopting the new lease standard. Receivables – Nonrefundable Fees and Other Costs In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”), which shortens the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. Callable debt securities held at a discount continue to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Additionally, the condensed consolidated financial statements should be read in conjunction with Item 2 of Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in this Form 10-Q. Operating results for the 13-week and 39-week periods ended September 29, 2018 are not necessarily indicative of the results that may be expected for the year ending December 29, 2018. The condensed consolidated balance sheet at December 30, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 30, 2017. The Company’s fiscal year is based on a 52-53 week period ending on the last Saturday of the calendar year. Therefore, the financial results of certain 53-week fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. The quarters ended September 29, 2018 and September 30, 2017 both contain operating results for 13 weeks. 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-Q 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. |
Recently Adopted Accounting Standards | 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 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 will 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 has 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 will recognize revenue and associated costs of royalties related to certain 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. 13-Weeks Ended September 30, 2017 39-Weeks Ended September 30, 2017 As reported Restated (1) Impact As reported Restated (1) Impact Net sales $ 743,077 $ 751,244 $ 8,167 $ 2,198,508 $ 2,224,241 $ 25,733 Gross profit 433,665 437,523 3,858 1,283,646 1,294,459 10,813 Operating income 169,790 173,648 3,858 489,485 500,298 10,813 Income tax provision (benefit) 38,643 38,840 197 (54,372 ) (53,840 ) 532 Net income $ 147,413 $ 151,074 $ 3,661 $ 556,175 $ 566,456 $ 10,281 Diluted net income per share $ 0.78 $ 0.80 $ 0.02 $ 2.95 $ 3.00 $ 0.05 (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 our press release attached as Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606. December 30, 2017 December 31, 2016 As reported Restated (2) Impact As reported Restated (2) 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 (2) Impact As reported Restated (2) 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 (2) 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. The total of cash and cash equivalents and restricted cash balances presented on the condensed consolidated balance sheet reconciles to the total cash, cash equivalents, and restricted cash shown in the condensed consolidated 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. |
Revenue Recognition | 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. The 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 contractual map care period in OEM contracts of 3-10 years as we believe our efforts as it relates 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. 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 | Deferred Revenues and Costs Deferred revenue consists primarily of the transaction price allocated to performance obligations that are recognized over a period of time basis as discussed in the Revenue Recognition 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 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 condensed consolidated financial statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of financial information depicting the impact of the new revenue standard | 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. 13-Weeks Ended September 30, 2017 39-Weeks Ended September 30, 2017 As reported Restated (1) Impact As reported Restated (1) Impact Net sales $ 743,077 $ 751,244 $ 8,167 $ 2,198,508 $ 2,224,241 $ 25,733 Gross profit 433,665 437,523 3,858 1,283,646 1,294,459 10,813 Operating income 169,790 173,648 3,858 489,485 500,298 10,813 Income tax provision (benefit) 38,643 38,840 197 (54,372 ) (53,840 ) 532 Net income $ 147,413 $ 151,074 $ 3,661 $ 556,175 $ 566,456 $ 10,281 Diluted net income per share $ 0.78 $ 0.80 $ 0.02 $ 2.95 $ 3.00 $ 0.05 (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 our press release attached as Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606. December 30, 2017 December 31, 2016 As reported Restated (2) Impact As reported Restated (2) 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 (2) Impact As reported Restated (2) 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 (2) 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. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The components of inventories consist of the following: September 29, December 30, 2018 2017 Raw materials $ 203,472 $ 179,659 Work-in-process 92,050 75,754 Finished goods 261,118 262,231 Inventories $ 556,640 $ 517,644 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Net income per share: | |
Schedule of computation of basic and diluted net income per share | The following table sets forth the computation of basic and diluted net income per share: 13-Weeks Ended September 29, September 30, 2018 2017 Numerator: Numerator for basic and diluted net income per share - net income $ 184,214 $ 151,074 Denominator: Denominator for basic net income per share – weighted-average common shares 188,799 187,616 Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units 1,206 874 Denominator for diluted net income per share – adjusted weighted-average common shares 190,005 188,490 Basic net income per share $ 0.98 $ 0.81 Diluted net income per share $ 0.97 $ 0.80 39-Weeks Ended September 29, September 30, 2018 2017 Numerator: Numerator for basic and diluted net income per share - net income $ 503,930 $ 566,456 Denominator: Denominator for basic net income per share – weighted-average common shares 188,554 187,902 Effect of dilutive securities – stock options, stock appreciation rights and restricted stock units 1,032 769 Denominator for diluted net income per share – adjusted weighted-average common shares 189,586 188,671 Basic net income per share $ 2.67 $ 3.01 Diluted net income per share $ 2.66 $ 3.00 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of net sales ("revenue"), gross profit, and operating income | The Company has identified five reportable segments – auto, aviation, marine, outdoor and fitness. Net sales (“revenue”), gross profit, and operating income for each of the Company’s reportable segments are presented below. Reportable Segments Outdoor Fitness Marine Auto Aviation Total 13-Weeks Ended September 29, 2018 Net sales $ 209,415 $ 190,185 $ 98,770 $ 165,214 $ 146,427 $ 810,011 Gross profit 136,671 103,441 58,508 70,925 111,202 480,747 Operating income 78,972 37,378 13,908 15,032 50,669 195,959 13-Weeks Ended September 30, 2017 Net sales $ 184,937 $ 167,147 $ 77,312 $ 197,220 $ 124,628 $ 751,244 Gross profit 118,175 96,135 44,574 87,819 90,820 437,523 Operating income 67,810 33,492 18,420 19,829 34,097 173,648 39-Weeks Ended September 29, 2018 Net sales $ 555,314 $ 581,315 $ 346,908 $ 486,653 $ 445,146 $ 2,415,336 Gross profit 358,829 326,473 203,976 207,389 333,886 1,430,553 Operating income 194,711 123,299 54,806 31,113 151,741 555,670 39-Weeks Ended September 30, 2017 Net sales $ 495,589 $ 485,999 $ 290,302 $ 580,792 $ 371,559 $ 2,224,241 Gross profit 319,457 276,014 166,690 257,744 274,554 1,294,459 Operating income 176,544 89,452 60,860 61,379 112,063 500,298 |
Schedule of net sales and property and equipment, net by geographic area | Net sales to external customers by geographic region were as follows for the 13-week and 39-week periods ended September 29, 2018 and September 30, 2017. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa: 13-Weeks Ended 39-Weeks Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Americas $ 370,239 $ 346,208 $ 1,153,330 $ 1,072,247 EMEA 307,087 291,703 862,116 831,687 APAC 132,685 113,333 399,890 320,307 Net sales to external customers $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241 Net property and equipment by geographic region as of September 29, 2018 and September 30, 2017 are presented below. Americas APAC EMEA Total September 29, 2018 Property and equipment, net $ 403,556 $ 202,790 $ 44,459 $ 650,805 September 30, 2017 Property and equipment, net $ 356,351 $ 160,360 $ 37,730 $ 554,441 |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in the aggregate warranty reserve | The following reconciliation provides an illustration of changes in the aggregate warranty reserve. 13-Weeks Ended September 29, September 30, 2018 2017 Balance - beginning of period $ 38,429 $ 37,012 Accrual for products sold during the period 13,558 16,903 Expenditures (16,027 ) (18,246 ) Balance - end of period $ 35,960 $ 35,669 39-Weeks Ended September 29, September 30, 2018 2017 Balance - beginning of period $ 36,827 $ 37,233 Accrual for products sold during the period 40,682 40,850 Expenditures (41,549 ) (42,414 ) Balance - end of period $ 35,960 $ 35,669 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Marketable Securities [Abstract] | |
Schedule of available-for-sale securities | Available-for-sale securities measured at fair value on a recurring basis are summarized below: Fair Value Measurements as of September 29, 2018 Total Level 1 Level 2 Level 3 U.S. Treasury securities $ 25,040 $ — $ 25,040 $ — Agency securities 46,291 — 46,291 — Mortgage-backed securities 140,318 — 140,318 — Corporate securities 942,532 — 942,532 — Municipal securities 168,588 — 168,588 — Other 152,039 — 152,039 — Total $ 1,474,808 $ — $ 1,474,808 $ — 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 $ — |
Schedule of marketable securities classified as available-for-sale securities | Marketable securities classified as available-for-sale securities are summarized below: Available-For-Sale Securities as of September 29, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 25,499 $ — $ (459 ) $ 25,040 Agency securities 47,653 — (1,362 ) 46,291 Mortgage-backed securities 148,837 3 (8,522 ) 140,318 Corporate securities 974,227 47 (31,742 ) 942,532 Municipal securities 172,157 3 (3,572 ) 168,588 Other 155,200 0 (3,161 ) 152,039 Total $ 1,523,573 $ 53 $ (48,818 ) $ 1,474,808 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 |
Schedule of gross unrealized losses and fair value by major security type | 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 September 29, 2018 and December 30, 2017. As of September 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 $ (90 ) $ 11,405 $ (369 ) $ 13,635 Agency securities (48 ) 7,700 (1,314 ) 38,591 Mortgage-backed securities (9 ) 513 (8,513 ) 139,339 Corporate securities (9,256 ) 477,194 (22,486 ) 449,488 Municipal securities (1,766 ) 106,380 (1,806 ) 60,281 Other (830 ) 37,869 (2,331 ) 89,742 Total $ (11,999 ) $ 641,061 $ (36,819 ) $ 791,076 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 $ (16,380 ) $ 573,976 |
Schedule of amortized cost and estimated fair value of marketable securities by contractual maturity | The amortized cost and fair value of marketable securities at September 29, 2018, by maturity, are shown below. Amortized Cost Fair Value Due in one year or less $ 174,578 $ 173,697 Due after one year through five years 1,228,112 1,189,069 Due after five years through ten years 120,883 112,042 $ 1,523,573 $ 1,474,808 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in accumulated other comprehensive income (AOCI) | The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week and 39-week periods ended September 29, 2018: 13-Weeks Ended September 29, 2018 Foreign Currency Translation Adjustment Net unrealized gains (losses) on available-for-sale securities Total Beginning Balance $ 52,924 $ (43,192 ) $ 9,732 Other comprehensive income before reclassification, net of income tax benefit of $107 (3,940 ) (1,353 ) (5,293 ) Amounts reclassified from accumulated other comprehensive income — 185 185 Net current-period other comprehensive income (3,940 ) (1,168 ) (5,108 ) Reclassification of tax effects due to adoption of ASU 2018-02 — — — Ending Balance $ 48,984 $ (44,360 ) $ 4,624 39-Weeks Ended September 29, 2018 Foreign Currency Translation Adjustment Net unrealized gains (losses) on available-for-sale securities Total Beginning Balance $ 79,292 $ (22,864 ) $ 56,428 Other comprehensive income before reclassification, net of income tax benefit of $3,014 (30,308 ) (21,490 ) (51,798 ) Amounts reclassified from accumulated other comprehensive income — 446 446 Net current-period other comprehensive income (30,308 ) (21,044 ) (51,352 ) Reclassification of tax effects due to adoption of ASU 2018-02 — (452 ) (452 ) Ending Balance $ 48,984 $ (44,360 ) $ 4,624 |
Schedule of reporting reclassifications out of AOCI | The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week and 39-week periods ended September 29, 2018: 13-Weeks Ended September 29, 2018 Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented Unrealized gains (losses) on available-for-sale securities $ (250 ) Other income (expense) 65 Income tax benefit (provision) $ (185 ) Net of tax 39-Weeks Ended September 29, 2018 Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented Unrealized gains (losses) on available-for-sale securities $ (481 ) Other income (expense) 35 Income tax benefit (provision) $ (446 ) Net of tax |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue by geographic region | Auto segment revenue presented in Note 4 is comprised of the auto PND and auto OEM major product categories as depicted below. Auto Revenue by Major Product Category 13-Weeks Ended 39-Weeks Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Auto PND 64 % 70 % 66 % 69 % Auto OEM 36 % 30 % 34 % 31 % |
Schedule of revenue disaggregated | Revenue disaggregated by the timing of transfer of the goods or services is presented in the table below: 13-Weeks Ended 39-Weeks Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Point in time $ 761,216 $ 708,854 $ 2,286,740 $ 2,098,468 Over time 48,795 42,390 128,596 125,773 Net sales $ 810,011 $ 751,244 $ 2,415,336 $ 2,224,241 |
Schedule of deferred revenue and costs | Transaction price and costs associated with the Company’s unsatisfied performance obligations are reflected as deferred revenue and deferred costs, respectively, on the Company’s Condensed Consolidated Balance Sheets. Such amounts are recognized ratably over the applicable service period or estimated useful life. Changes in deferred revenue and costs during the 39-weeks ended September 29, 2018 are presented below: 39-Weeks Ended September 29, 2018 Deferred Revenue (1) Deferred Costs (2) Balance, beginning of period $ 190,200 $ 63,554 Deferrals in period 113,634 27,445 Recognition of deferrals in period (128,596 ) (33,032 ) Balance, end of period $ 175,238 $ 57,967 (1) (2) Of the $128,596 of deferred revenue recognized in the 39-weeks ended September 29, 2018, $88,775 was deferred as of the beginning of the period. Approximately two-thirds of the $175,238 of deferred revenue at the end of the period, September 29, 2018, is recognized ratably over a period of three years or less. |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | ||||||
Net sales | $ 810,011 | $ 751,244 | $ 2,415,336 | $ 2,224,241 | ||||||||
Gross profit | 480,747 | 437,523 | 1,430,553 | 1,294,459 | ||||||||
Operating income | 195,959 | 173,648 | 555,670 | 500,298 | ||||||||
Income tax provision (benefit) | 17,113 | 38,840 | 87,445 | (53,840) | ||||||||
Net income | $ 184,214 | $ 151,074 | $ 503,930 | $ 566,456 | ||||||||
Diluted net income per share (in dollars per share) | $ 0.97 | $ 0.80 | $ 2.66 | $ 3 | ||||||||
Current assets: | ||||||||||||
Deferred costs | $ 28,235 | $ 28,235 | $ 30,525 | |||||||||
Total current assets | 2,400,619 | 2,400,619 | 2,346,138 | |||||||||
Deferred income taxes | 186,445 | 186,445 | 195,981 | |||||||||
Noncurrent deferred costs | 29,732 | 29,732 | 33,029 | |||||||||
Total assets | 5,095,967 | 5,095,967 | 4,948,289 | |||||||||
Current liabilities: | ||||||||||||
Deferred revenue | 97,604 | 97,604 | 103,140 | |||||||||
Total current liabilities | 854,026 | 854,026 | 792,115 | |||||||||
Deferred income taxes | 82,846 | 82,846 | 76,612 | |||||||||
Non-current deferred revenue | 77,634 | 77,634 | 87,060 | |||||||||
Retained earnings | 2,520,828 | 2,520,828 | 2,418,444 | |||||||||
Accumulated other comprehensive income | 4,624 | 4,624 | 56,428 | $ 9,732 | ||||||||
Total stockholders' equity | 3,952,708 | 3,952,708 | 3,852,419 | |||||||||
Total liabilities and stockholders' equity | $ 5,095,967 | $ 5,095,967 | 4,948,289 | |||||||||
As Reported [Member] | ||||||||||||
Net sales | $ 743,077 | $ 2,198,508 | 3,087,004 | $ 3,018,665 | ||||||||
Gross profit | 433,665 | 1,283,646 | 1,783,164 | 1,679,570 | ||||||||
Operating income | 169,790 | 489,485 | 668,860 | 623,909 | ||||||||
Income tax provision (benefit) | 38,643 | (54,372) | (12,661) | 118,856 | ||||||||
Net income | $ 147,413 | $ 556,175 | $ 694,955 | $ 510,814 | ||||||||
Diluted net income per share (in dollars per share) | $ 0.78 | $ 2.95 | $ 3.68 | $ 2.7 | ||||||||
Current assets: | ||||||||||||
Deferred costs | $ 48,312 | $ 47,395 | ||||||||||
Total current assets | 2,363,925 | 2,263,016 | ||||||||||
Deferred income taxes | 199,343 | 110,293 | ||||||||||
Noncurrent deferred costs | 73,851 | 56,151 | ||||||||||
Total assets | 5,010,260 | 4,525,133 | ||||||||||
Current liabilities: | ||||||||||||
Deferred revenue | 139,681 | 146,564 | ||||||||||
Total current liabilities | 828,656 | 782,735 | ||||||||||
Deferred income taxes | 75,215 | 61,220 | ||||||||||
Non-current deferred revenue | 163,840 | 140,407 | ||||||||||
Retained earnings | 2,368,874 | 2,056,702 | ||||||||||
Accumulated other comprehensive income | 56,045 | (36,761) | ||||||||||
Total stockholders' equity | 3,802,466 | 3,418,003 | ||||||||||
Total liabilities and stockholders' equity | 5,010,260 | 4,525,133 | ||||||||||
Restatement [Member] | ||||||||||||
Net sales | $ 751,244 | [1] | $ 2,224,241 | [1] | 3,121,560 | [2] | 3,045,797 | [2] | ||||
Gross profit | 437,523 | [1] | 1,294,459 | [1] | 1,797,941 | [2] | 1,688,525 | [2] | ||||
Operating income | 173,648 | [1] | 500,298 | [1] | 683,637 | [2] | 632,864 | [2] | ||||
Income tax provision (benefit) | 38,840 | [1] | (53,840) | [1] | (11,936) | [2] | 120,901 | [2] | ||||
Net income | $ 151,074 | [1] | $ 566,456 | [1] | $ 709,007 | [2] | $ 517,724 | [2] | ||||
Diluted net income per share (in dollars per share) | $ 0.80 | [1] | $ 3 | [1] | $ 3.76 | [2] | $ 2.73 | [2] | ||||
Current assets: | ||||||||||||
Deferred costs | [2] | $ 30,525 | $ 34,665 | |||||||||
Total current assets | [2] | 2,346,138 | 2,250,286 | |||||||||
Deferred income taxes | [2] | 195,981 | 107,655 | |||||||||
Noncurrent deferred costs | [2] | 33,029 | 30,934 | |||||||||
Total assets | [2] | 4,948,289 | 4,484,549 | |||||||||
Current liabilities: | ||||||||||||
Deferred revenue | [2] | 103,140 | 118,496 | |||||||||
Total current liabilities | [2] | 792,115 | 754,667 | |||||||||
Deferred income taxes | [2] | 76,612 | 62,617 | |||||||||
Non-current deferred revenue | [2] | 87,060 | 91,238 | |||||||||
Retained earnings | [2] | 2,418,444 | 2,092,221 | |||||||||
Accumulated other comprehensive income | [2] | 56,428 | (37,024) | |||||||||
Total stockholders' equity | [2] | 3,852,419 | 3,453,259 | |||||||||
Total liabilities and stockholders' equity | [2] | 4,948,289 | 4,484,549 | |||||||||
Impact [Member] | ||||||||||||
Net sales | $ 8,167 | $ 25,733 | 34,556 | 27,132 | ||||||||
Gross profit | 3,858 | 10,813 | 14,777 | 8,955 | ||||||||
Operating income | 3,858 | 10,813 | 14,777 | 8,955 | ||||||||
Income tax provision (benefit) | 197 | 532 | 725 | 2,045 | ||||||||
Net income | $ 3,661 | $ 10,281 | $ 14,052 | $ 6,910 | ||||||||
Diluted net income per share (in dollars per share) | $ 0.02 | $ 0.05 | $ 0.08 | $ 0.03 | ||||||||
Current assets: | ||||||||||||
Deferred costs | $ (17,787) | $ (12,730) | ||||||||||
Total current assets | (17,787) | (12,730) | ||||||||||
Deferred income taxes | (3,362) | (2,638) | ||||||||||
Noncurrent deferred costs | (40,822) | (25,217) | ||||||||||
Total assets | (61,971) | (40,584) | ||||||||||
Current liabilities: | ||||||||||||
Deferred revenue | (36,541) | (28,068) | ||||||||||
Total current liabilities | (36,541) | (28,068) | ||||||||||
Deferred income taxes | 1,397 | 1,397 | ||||||||||
Non-current deferred revenue | (76,780) | (49,169) | ||||||||||
Retained earnings | 49,570 | 35,519 | ||||||||||
Accumulated other comprehensive income | 383 | (263) | ||||||||||
Total stockholders' equity | 49,953 | 35,256 | ||||||||||
Total liabilities and stockholders' equity | $ (61,971) | $ (40,584) | ||||||||||
[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 our press release attached as Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in this Note by immaterial amounts in connection with our adoption of ASC Topic 606. | |||||||||||
[2] | 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. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 203,472 | $ 179,659 |
Work-in-process | 92,050 | 75,754 |
Finished goods | 261,118 | 262,231 |
Inventories | $ 556,640 | $ 517,644 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Numerator for basic and diluted net income per share - net income | $ 184,214 | $ 151,074 | $ 503,930 | $ 566,456 |
Denominator: | ||||
Denominator for basic net income per share - weighted-average common shares | 188,799 | 187,616 | 188,554 | 187,902 |
Effect of dilutive securities - stock options, stock appreciation rights and restricted stock units | 1,206 | 874 | 1,032 | 769 |
Denominator for diluted net income per share - adjusted weighted-average common shares | 190,005 | 188,490 | 189,586 | 188,671 |
Basic net income per share (in dollars per share) | $ 0.98 | $ 0.81 | $ 2.67 | $ 3.01 |
Diluted net income per share (in dollars per share) | $ 0.97 | $ 0.80 | $ 2.66 | $ 3 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net income per share: | ||||
Anti-dilutive stock options, stock appreciation rights and restricted stock units | 0 | 1,051 | 0 | 1,567 |
Shares issued as a result of exercises and releases of equity awards | 12 | 2 | 390 | 161 |
Employee stock purchase plan for treasury stock | 230 | 248 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net sales | $ 810,011 | $ 751,244 | $ 2,415,336 | $ 2,224,241 |
Gross profit | 480,747 | 437,523 | 1,430,553 | 1,294,459 |
Operating income | 195,959 | 173,648 | 555,670 | 500,298 |
Outdoor [Member] | ||||
Net sales | 209,415 | 184,937 | 555,314 | 495,589 |
Gross profit | 136,671 | 118,175 | 358,829 | 319,457 |
Operating income | 78,972 | 67,810 | 194,711 | 176,544 |
Fitness [Member] | ||||
Net sales | 190,185 | 167,147 | 581,315 | 485,999 |
Gross profit | 103,441 | 96,135 | 326,473 | 276,014 |
Operating income | 37,378 | 33,492 | 123,299 | 89,452 |
Marine [Member] | ||||
Net sales | 98,770 | 77,312 | 346,908 | 290,302 |
Gross profit | 58,508 | 44,574 | 203,976 | 166,690 |
Operating income | 13,908 | 18,420 | 54,806 | 60,860 |
Auto [Member] | ||||
Net sales | 165,214 | 197,220 | 486,653 | 580,792 |
Gross profit | 70,925 | 87,819 | 207,389 | 257,744 |
Operating income | 15,032 | 19,829 | 31,113 | 61,379 |
Aviation [Member] | ||||
Net sales | 146,427 | 124,628 | 445,146 | 371,559 |
Gross profit | 111,202 | 90,820 | 333,886 | 274,554 |
Operating income | $ 50,669 | $ 34,097 | $ 151,741 | $ 112,063 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net sales to external customers | $ 810,011 | $ 751,244 | $ 2,415,336 | $ 2,224,241 |
Americas [Member] | ||||
Net sales to external customers | 370,239 | 346,208 | 1,153,330 | 1,072,247 |
EMEA [Member] | ||||
Net sales to external customers | 307,087 | 291,703 | 862,116 | 831,687 |
APAC [Member] | ||||
Net sales to external customers | $ 132,685 | $ 113,333 | $ 399,890 | $ 320,307 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2017 |
Property and equipment, net | $ 650,805 | $ 595,684 | $ 554,441 |
Americas [Member] | |||
Property and equipment, net | 403,556 | 356,351 | |
APAC [Member] | |||
Property and equipment, net | 202,790 | 160,360 | |
EMEA [Member] | |||
Property and equipment, net | $ 44,459 | $ 37,730 |
Segment Information (Details Na
Segment Information (Details Narrative) | 9 Months Ended |
Sep. 29, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Warranty Reserves (Details)
Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance - beginning of period | $ 38,429 | $ 37,012 | $ 36,827 | $ 37,233 |
Accrual for products sold during the period | 13,558 | 16,903 | 40,682 | 40,850 |
Expenditures | (16,027) | (18,246) | (41,549) | (42,414) |
Balance - end of period | $ 35,960 | $ 35,669 | $ 35,960 | $ 35,669 |
Warranty Reserves (Details Narr
Warranty Reserves (Details Narrative) | 9 Months Ended |
Sep. 29, 2018 | |
Minimum [Member] | |
Product warranty term | 1 year |
Maximum [Member] | |
Product warranty term | 3 years |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) $ in Thousands | Sep. 29, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate amount of purchase orders and other commitments | $ 346,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 17,113 | $ 38,840 | $ 87,445 | $ (53,840) |
Effective income tax rate | 8.50% | 20.50% | 14.80% | 10.50% |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | $ 1,474,808 | $ 1,421,720 |
U.S.Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 25,040 | 19,337 |
Agency Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 46,291 | 43,361 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 140,318 | 174,615 |
Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 168,588 | 186,105 |
Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 152,039 | 181,509 |
Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 942,532 | 816,793 |
Recurring Basis [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 1,474,808 | 1,421,720 |
Recurring Basis [Member] | U.S.Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 25,040 | 19,337 |
Recurring Basis [Member] | Agency Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 46,291 | 43,361 |
Recurring Basis [Member] | Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 140,318 | 174,615 |
Recurring Basis [Member] | Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 168,588 | 186,105 |
Recurring Basis [Member] | Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 152,039 | 181,509 |
Recurring Basis [Member] | Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 942,532 | 816,793 |
Recurring Basis [Member] | Level 1 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 1 [Member] | U.S.Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 1 [Member] | Agency Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 1 [Member] | Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 1 [Member] | Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 1 [Member] | Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 1 [Member] | Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 2 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 1,474,808 | 1,421,720 |
Recurring Basis [Member] | Level 2 [Member] | U.S.Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 25,040 | 19,337 |
Recurring Basis [Member] | Level 2 [Member] | Agency Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 46,291 | 43,361 |
Recurring Basis [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 140,318 | 174,615 |
Recurring Basis [Member] | Level 2 [Member] | Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 168,588 | 186,105 |
Recurring Basis [Member] | Level 2 [Member] | Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 152,039 | 181,509 |
Recurring Basis [Member] | Level 2 [Member] | Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | 942,532 | 816,793 |
Recurring Basis [Member] | Level 3 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 3 [Member] | U.S.Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 3 [Member] | Agency Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 3 [Member] | Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 3 [Member] | Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 3 [Member] | Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total | ||
Recurring Basis [Member] | Level 3 [Member] | Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, total |
Marketable Securities (Details
Marketable Securities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 29, 2018 | Dec. 30, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 1,523,573 | $ 1,446,428 |
Gross Unrealized Gains | 53 | 262 |
Gross Unrealized Losses | (48,818) | (24,970) |
Fair Value | 1,474,808 | 1,421,720 |
U.S.Treasury Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 25,499 | 19,591 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (459) | (254) |
Fair Value | 25,040 | 19,337 |
Agency Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 47,653 | 44,191 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (1,362) | (831) |
Fair Value | 46,291 | 43,361 |
Mortgage-Backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 148,837 | 180,470 |
Gross Unrealized Gains | 3 | 13 |
Gross Unrealized Losses | (8,522) | (5,868) |
Fair Value | 140,318 | 174,615 |
Corporate Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 974,227 | 830,447 |
Gross Unrealized Gains | 47 | 136 |
Gross Unrealized Losses | (31,742) | (13,790) |
Fair Value | 942,532 | 816,793 |
Municipal Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 172,157 | 187,999 |
Gross Unrealized Gains | 3 | 110 |
Gross Unrealized Losses | (3,572) | (2,004) |
Fair Value | 168,588 | 186,105 |
Other [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 155,200 | 183,730 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (3,161) | (2,223) |
Fair Value | $ 152,039 | $ 181,509 |
Marketable Securities (Detail_2
Marketable Securities (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 29, 2018 | Dec. 30, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | $ (11,999) | $ (8,590) |
Fair Value Less than 12 Consecutive Months | 641,061 | 749,831 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (36,819) | (16,380) |
Fair Value 12 Consecutive Months or Longer | 791,076 | 573,976 |
U.S.Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (90) | (111) |
Fair Value Less than 12 Consecutive Months | 11,405 | 12,966 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (369) | (143) |
Fair Value 12 Consecutive Months or Longer | 13,635 | 6,371 |
Agency Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (48) | (168) |
Fair Value Less than 12 Consecutive Months | 7,700 | 16,097 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (1,314) | (663) |
Fair Value 12 Consecutive Months or Longer | 38,591 | 25,972 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (9) | (503) |
Fair Value Less than 12 Consecutive Months | 513 | 19,628 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (8,513) | (5,365) |
Fair Value 12 Consecutive Months or Longer | 139,339 | 153,835 |
Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (9,256) | (4,562) |
Fair Value Less than 12 Consecutive Months | 477,194 | 439,174 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (22,486) | (9,228) |
Fair Value 12 Consecutive Months or Longer | 449,488 | 347,052 |
Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (1,766) | (1,027) |
Fair Value Less than 12 Consecutive Months | 106,380 | 125,819 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (1,806) | (977) |
Fair Value 12 Consecutive Months or Longer | 60,281 | 38,167 |
Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (830) | (2,219) |
Fair Value Less than 12 Consecutive Months | 37,869 | 136,147 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (2,331) | (4) |
Fair Value 12 Consecutive Months or Longer | $ 89,742 | $ 2,579 |
Marketable Securities (Detail_3
Marketable Securities (Details 3) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Amortized Cost | ||
Due in one year or less | $ 174,578 | |
Due after one year through five years | 1,228,112 | |
Due after five years through ten years | 120,883 | |
Total | 1,523,573 | $ 1,446,428 |
Fair Value | ||
Due in one year or less | 173,697 | |
Due after one year through five years | 1,189,069 | |
Due after five years through ten years | 112,042 | |
Total | $ 1,474,808 | $ 1,421,720 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2018 | Sep. 29, 2018 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward] | ||
Beginning Balance | $ 52,924 | $ 79,292 |
Other comprehensive income before reclassification, net of income tax benefit | (3,940) | (30,308) |
Amounts reclassified from accumulated other comprehensive income | ||
Net current-period other comprehensive income | (3,940) | (30,308) |
Ending Balance | 48,984 | 48,984 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Roll Forward] | ||
Beginning Balance | (43,192) | (22,864) |
Other comprehensive income before reclassification, net of income tax benefit | (1,353) | (21,490) |
Amounts reclassified from accumulated other comprehensive income | 185 | 446 |
Net current-period other comprehensive income | (1,168) | (21,044) |
Reclassification of tax effects due to adoption of ASU 2018-02 | (452) | |
Ending Balance | (44,360) | (44,360) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 9,732 | 56,428 |
Other comprehensive income before reclassification, net of income tax benefit | (5,293) | (51,798) |
Amounts reclassified from accumulated other comprehensive income | 185 | 446 |
Net current-period other comprehensive income | (5,108) | (51,352) |
Reclassification of tax effects due to adoption of ASU 2018-02 | (452) | |
Ending Balance | $ 4,624 | $ 4,624 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Other income (expense) | $ 5,368 | $ 16,266 | $ 35,705 | $ 12,318 |
Income tax benefit (provision) | (17,113) | $ (38,840) | (87,445) | $ 53,840 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification From Accumulated Other Comprehensive Income [Member] | ||||
Other income (expense) | (250) | (481) | ||
Income tax benefit (provision) | 65 | 35 | ||
Net of tax | $ (185) | $ (446) |
Revenue (Details)
Revenue (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Auto PND [Member] | ||||
Percentage of auto revenue | 64.00% | 70.00% | 66.00% | 69.00% |
Auto OEM [Member] | ||||
Percentage of auto revenue | 36.00% | 30.00% | 34.00% | 31.00% |
Revenue (Details 1)
Revenue (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net sales | $ 810,011 | $ 751,244 | $ 2,415,336 | $ 2,224,241 |
Point in Time [Member] | ||||
Net sales | 761,216 | 708,854 | 2,286,740 | 2,098,468 |
Over Time [Member] | ||||
Net sales | $ 48,795 | $ 42,390 | $ 128,596 | $ 125,773 |
Revenue (Details 2)
Revenue (Details 2) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018USD ($) | ||
Movement in Deferred Revenue [Roll Forward] | ||
Balance, beginning of period | $ 190,200 | [1] |
Deferrals in period | 113,634 | [1] |
Recognition of deferrals in period | (128,596) | [1] |
Balance, end of period | 175,238 | [1] |
Movement in Deferred Costs [Roll Forward] | ||
Balance, beginning of period | 63,554 | [2] |
Deferrals in period | 27,445 | [2] |
Recognition of deferrals in period | (33,032) | [2] |
Balance, end of period | $ 57,967 | [2] |
[1] | Deferred costs are comprised of both Deferred costs and Noncurrent deferred costs per the Condensed Consolidated Balance Sheets. | |
[2] | Deferred revenue is comprised of both Deferred revenue and Noncurrent deferred revenue per the Condensed Consolidated Balance Sheets |