GPSMAP 5000 series (6 models)
These touch-screen multifunction displays for the Garmin Marine Network (a system that combines GPS, radar, XM WX Satellite Weather, sonar, and other data) offer ease of use and video-quality resolution and color. The 5212 and 5208 come pre-loaded with detailed U.S. coastal charts, including Explorer Charts, and are compatible with Garmins BlueChart g2 Vision charts (sold separately) which offer high-resolution satellite imagery, 3-D map perspective, aerial reference photos, and auto guidance. The 5215 and 5015 offer 15-inch diagonal sunlight-readable touchscreen displays.
GPSMAP 4000 series/ 4200 series (6 models)
These multifunction displays for the Garmin Marine Network offer ease of use and video-quality resolution and color. The 4212 and 4208 come pre-loaded with detailed U.S. coastal charts, including Explorer Charts, and are compatible with Garmins BlueChart g2 Vision charts (sold separately) which offer high-resolution satellite imagery, 3-D map perspective, aerial reference photos, and auto guidance. The 4210 and 4010 feature 10.4-inch diagonal sunlight- readable displays and Garmins new marine user interface.

GPSMAP 3000 (2 models)

These configurable chartplotter/multifunction displays (MFDs) are network-enabled and come in either a 10.4 or 6.4 display.
GPSMAP 4x0 and 5x0 and 7x0 series (5 models)
The 4x0 and 5x0 chartplotters and chartplotter/sonar units feature highly-detailed preloaded marine cartography and offer a wide variety of display sizes and networking options. All units are compatible with Garmins BlueChart g2 data cards. The 7x0 models are the newest in this family of products and are the first touchscreen controlled stand-alone marine chartplotters to offer radar capability and built-in sonar at an affordable price.
GPSMAP 5x6 and 5x1 series (6 models)
Building upon the success of the GPSMAP 400 and 500 series, the new chartplotters in the GPSMAP 5x6, 5x1 and 4x1 series come standard with an internal high-sensitivity GPS receiver that allows for faster acquisition times and better satellite tracking so that boaters are able to acquire and maintain a GPS fix more easily. In addition, these units boast an improved, high-speed digital design that will increase map drawing and panning speeds. Many of the new models in this series are also NMEA 2000 certified and can interface with Garmins full lineup of NMEA 2000 marine sensors and autopilots, as well as many other third-party sensors.

Marine Autopilot Systems (3 models)
The GHP 10s patented Shadow Drive technology automatically disengages the autopilot if the helm is turned, allowing the helmsman to maneuver the boat. The
autopilot automatically re-engages when a steady course is held by the helmsman. The TR-1 Gold Marine Autopilot offers worry-free remote steering and speed control to operators of small gasoline outboard motor boats up to 20 horsepower. Finally, the GHP 10V Autopilot System for Volvo Penta IPS and Sterndrive Joystick Systems is approved for use with boats that have an integrated Volvo Penta IPS steering and propulsion system and features Garmins proven and innovative Shadow Drive technology a patented capability that automatically disengages the autopilot if the helm is turned, allowing for quick and safe manual maneuvers without manually disengaging the autopilot.

Fishfinders (5 models)

Garmin offers five different fishfinder options spanning various price points. All models feature Garmins Ultrascroll technology, which allows boaters to get a faster refresh rate on their sonar display, and dual-beam transducer operation. Four of the models offer color displays. The Fishfinder 400C comes with dual beam or dual frequency transducers for easy adaptability to either freshwater or saltwater fishing. It also offers a new, easy-to-use interface and built in CANet connectivity to enable sonar data to be shared with compatible Garmin chartplotters.

Radar (11 models)

Garmin offers both radomes and open array radar products with compatibility to any network-compatible Garmin chartplotter so that the chartplotter can double as the radar screen. The GMR 18 and 24 models are digital radome products in various sizes and power specifications. The GMR 404 and 406 open array radar scanners provide even greater clarity and a 72 nautical mile range. The GMR 18 HD and GMR 24 HD radomes feature digital signal processing providing sharper radar imagery and improved target separation. The newest generation of open-array digital radar scanners and the GMR 1204/1206 xHD and the GMR 604/606 xHD models, which transmit with 12 and 6 kilowatts of power respectively. All four of these open-array scanners have a maximum effective range of 72 nautical miles and offer selectable rotation speeds from 24 RPM to 48 RPM for rapid target updates. These new xHD scanners provide up to eight times more sampling data than Garmins current open-array offerings,
Aviation Garmins product line includes GPS-enabled navigation, VHF communications transmitters/receivers, multi-function displays, electronic flight instrumentation systems (EFIS), traffic advisory systems and traffic collision avoidance systems, instrument landing system (ILS) receivers, surveillance products, marker beacon receivers and audio panels. Garmins aviation products have won prestigious awards throughout the industry for their innovative features and ease of use. The GNS 430/530W offers multiple features and capabilities integrated into a single product. This high level of integration minimizes the use of precious space in the cockpit, enhances the quality and safety of flight through the use of modern designs and components and reduces the cost of equipping an aircraft with modern electronics. The GNS 430 was recognized by Flying Magazine as the Editors Choice Product of the Year for 1998. In 1994, and again in 2000, Garmin earned recognition from the Aircraft Electronics Association for outstanding contribution to the general aviation electronics industry. The GPSMAP 295 won Aviation Consumer Magazines Gear of the Year award for best aviation portable product in 2000 and again in 2001. Flying Magazines editors awarded the GPSMAP 396 with a 2005 Editors Choice Award for outstanding achievements. The GPSMAP 496, introduced in 2006, won the 2006 Gear of the Year award from Aviation Consumer magazine. Flying Magazines editors awarded Garmin a 2007 Flying Editors Choice Award for making the safety and precision of

Competition

The market for navigation, communications and information products is highly competitive. Garmin believes the principal competitive factors impacting the market for its products are design, functionality, quality and reliability, customer service, brand, price, time-to-market and availability. Garmin believes that it generally competes favorably in each of these areas. Garmin believes that its principal competitors for portable automotive products are TomTom N.V. and MiTAC Digital Corporation (MiTAC) (which distributes products under the brand names of Magellan, Mio, and Navman) and Navigon AG. Garmin believes that its principal competitors for outdoor product lines are Magellan, a subsidiary of MiTAC, Lowrance Electronics, Inc., a subsidiary of Navico (Lowrance) and Delorme and that its principal competitors for fitness products are Nike, Inc., Polar Electro Oy, Suunto Oy and Timex Corp. For marine chartplotter products, Garmin believes that its principal competitors are Raymarine Ltd. (Raymarine), Furuno Electronic Company (Furuno), and Simrad and Lowrance (subsidiaries of Navico). For Garmins fishfinder/depth sounder product lines, Garmin believes that its principal competitors are Lowrance, Raymarine, the Hummingbird division of Johnson Outdoors, Inc., and Furuno. For Garmins general aviation product lines, Garmin considers its principal competitors to be Honeywell, Inc., Avidyne Corporation, L-3 Avionics Systems, Rockwell Collins, Inc., Universal Avionics Systems Corporation, Chelton Flight Systems, Aspen Avionics, and Free Flight Systems for panelmount GPS and display units. For Garmins Family Radio Service and General Mobile Radio Service product line, Garmin believes that its principal competitors are Motorola, Inc. (Motorola), Cobra Electronics Corporation and Midland Radio Corporation. Garmin believes that its principal competitors for smartphones are Apple, Inc., HTC Corporation, Nokia Oyj, Samsung Corporation, Sony Ericsson Mobile Communications AB, Google, Inc., Motorola, LG Electronics, Palm, Inc., and Research in Motion, Ltd.

We may have additional tax liabilities.
We are subject to income taxes in both the United States and numerous foreign jurisdictions. Significant judgment is required in determining our worldwide provision for income taxes. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are regularly under audit by tax authorities. Although we believe our tax estimates are reasonable, the final determination of tax audits and any related litigation could be materially different from our historical income tax provisions and accruals. The results of an audit or litigation could have a material effect on our income tax provision, net income or cash flows in the period or periods for which that determination is made.
Our shareholders may face difficulties in protecting their interests because we are incorporated under Cayman Islands law.
Our corporate affairs are governed by our Memorandum and Articles of Association, as amended, and by the Companies Law (2009 Revision) and the common law of the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are not as clearly established as under statutes or judicial precedent in existence in jurisdictions in the United States. Therefore, you may have more difficulty in protecting your interests in the face of actions by the management, directors or our controlling shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States, due to the comparatively less developed nature of Cayman Islands law in this area. Shareholders of Cayman Islands exempted companies such as Garmin have no general rights under Cayman Islands law to inspect corporate records and accounts or to obtain copies of lists of shareholders of the company. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest. Subject to limited exceptions, under Cayman Islands law, a minority shareholder may not bring a derivative action against the board of directors. Our Cayman Islands counsel has advised that they are not aware of any reported class action or derivative action having been brought in a Cayman Islands court.

A shut down of U.S. airspace or imposition of restrictions on general aviation would harm our business.
Following the September 11, 2001 terrorist attacks, the FAA ordered all aircraft operating in the U.S. to be grounded for several days. In addition to this shut down of U.S. airspace, the general aviation industry was further impacted by the additional restrictions implemented by the FAA on those flights that fly utilizing Visual Flight Rules (VFR). The FAA restricted VFR flight inside 30 enhanced Class B (a 20-25 mile radius around the 30 largest metropolitan areas in the USA) airspace areas. The Aircraft Owners and Pilots Association (AOPA) estimated that these restrictions affected approximately 41,800 general aviation aircraft based at 282 airports inside the 30 enhanced Class B airspace areas. The AOPA estimates that approximately 90% of all general aviation flights are conducted VFR, and that only 15% of general aviation pilots are current to fly utilizing Instrument Flight Rules (IFR). The shutdown of U.S. airspace following September 11, 2001 caused reduced sales of our general aviation products and delays in the shipment of our products manufactured in our Taiwan manufacturing facility to our distribution facility in Olathe, Kansas, thereby adversely affecting our ability to supply new and existing products to our dealers and distributors. Any future shut down of U.S. airspace or imposition of restrictions on general aviation could have a material adverse effect on our business and financial results.
Many of our products rely on the Global Positioning System
The Global Positioning System is a satellite-based navigation and positioning system consisting of a constellation of orbiting satellites. The satellites and their ground control and monitoring stations are maintained
and operated by the United States Department of Defense. The Department of Defense does not currently charge users for access to the satellite signals. These satellites and their ground support systems are complex electronic systems subject to electronic and mechanical failures and possible sabotage. The satellites were originally designed to have lives of 7.5 years and are subject to damage by the hostile space environment in which they operate. However, of the current deployment of satellites in place, some have been operating for more than 12 years. If a significant number of satellites were to become inoperable, unavailable or are not replaced, it would impair the current utility of our Global Positioning System products and would have a material negative effect on our business. In addition, there can be no assurance that the U.S. government will remain committed to the operation and maintenance of Global Positioning System satellites over a long period, or that the policies of the U.S. government that provide for the use of the Global Positioning System without charge and without accuracy degradation will remain unchanged. Because of the increasing commercial applications of the Global Positioning System, other U.S. government agencies may become involved in the administration or the regulation of the use of Global Positioning System signals. However, in a presidential policy statement issued in December 2004, the Bush administration indicated that the U.S. is committed to supporting and improving the Global Positioning System and will continue providing it free from direct user fees. Some of our products also use signals from systems that augment GPS, such as the Wide Area Augmentation System (WAAS). WAAS is operated by the FAA. Any curtailment of the operating capability of WAAS could result in decreased user capability for many of our aviation products, thereby impacting our markets. Any of the foregoing factors could affect the willingness of buyers of our products to select Global Positioning System-based products instead of products based on competing technologies.

Gain on sale of equity of securities of $50.9 million in 2008 was primarily generated from the sale of our equity interest in Tele Atlas N.V. which we acquired in 2007 in connection with our announced intent to make a cash offer for all outstanding shares, which was subsequently abandoned.

Income Tax Provision

Our fiscal 2009 earnings before taxes fell 11.6% when compared to 2008, while our income tax expense decreased 42.3%. Income taxes fell $76.8 million, to $104.7 million, for fiscal year 2009 from $181.5 million for fiscal year 2008, due to a lower effective tax rate and the reduced earnings before taxes. The effective tax rate was 12.9% for fiscal 2009 compared to 19.9% for fiscal 2008. The decrease in tax rate is due to the favorable mix of taxable income among the tax jurisdictions in which the Company operates and the release of income tax reserves for which the statute of limitations has expired.

Net Income

As a result of the various factors noted above, net income decreased 3.9% to $704.0 million for fiscal year 2009 compared to $732.8 million for fiscal year 2008.
Comparison of 52-Weeks Ended December 27, 2008 and December 29, 2007
52-weeks ended December 27, 2008 Net Sales % of Revenues $427,783 12.2% 204,477 5.9% 2,538,411 72.6% 323,406 9.3% $3,494,077 100.0% 52-weeks ended December 29, 2007 Net Sales % of Revenues $339,741 10.7% 203,399 6.4% 2,342,184 73.6% 294,995 9.3% $3,180,319 100.0% Year over Year $ Change % Change $88,042 25.9% 1,078 0.5% 196,227 8.4% 28,411 9.6% $313,758 9.9%
The increase in total net sales for 2008 was primarily driven by outdoor/fitness, automotive/mobile and aviation product offerings. Automotive/mobile revenue remains a significantly larger portion of our revenue mix, decreasing slightly from 73.6% in 2007 to 72.6% in 2008. Total unit sales increased 38% to 16.9 million in 2008 from 12.3 million in 2007. The higher unit sales volume in 2008 was primarily attributable to strong sales of automotive products, particularly in North America, and outdoor/fitness products. In general, management believes that continuous innovation and the introduction of new products are essential for future revenue growth. Automotive/mobile segment revenue grew 8.4% in 2008, on the strength of the nuvi series of personal navigation devices (PNDs), as well as increased consumer awareness of the capabilities and applications of GPS. On a percentage basis, revenues in our outdoor/fitness segment grew faster than any other segment from the year ago period due to the introduction of the Colorado series, the Oregon series, the Forerunner 405 and Edge 705 which offer enhanced form factors and cartography. Our aviation segment continued to grow on the strength of our G1000 cockpit as an OEM (original equipment manufacturer) solution. This growth slowed significantly in the second half of 2008 as the macroeconomic conditions influenced purchasing decisions and slowed OEM production schedules. Marine revenues were slightly higher than the prior year due to strong growth in the first quarter of 2008 offset by flat to declining revenue in the remainder of the year due to macroeconomic conditions and fuel prices.

/s/ Ernst & Young LLP
Kansas City, Missouri February 24, 2010
Garmin Ltd. And Subsidiaries Consolidated Balance Sheets (In thousands, except share information) December 26, 2009 Assets Current assets: Cash and cash equivalents Marketable securities ( Note 3) Accounts receivable, less allowance for doubtful accounts of $36,673 in 2009 and $42,409 in 2008 Inventories, net Deferred income taxes (Note 6) Prepaid expenses and other current assets Total current assets Property and equipment, net Land and improvements Building and improvements Office furniture and equipment Manufacturing equipment Engineering equipment Vehicles Accumulated depreciation 92,088 268,011 84,544 115,179 65,240 15,247 640,309 (198,971) 441,338 Restricted cash (Note 4) Marketable securities (Note 3) License agreements, net Noncurrent deferred income tax (Note 6) Other intangible assets Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Salaries and benefits payable Accrued warranty costs Accrued sales program costs Deferred revenue Accrued royalty costs Accrued advertising expense Other accrued expenses Income taxes payable Total current liabilities Deferred income taxes (Note 6) Non-current income taxes Non-current deferred revenue Other liabilities Stockholders' equity: Common stock, $0.005 par value, 1,000,000,000 shares authorized (Notes 9, 10, and 11) : Issued and outstanding shares - 200,274,000 in 2009, and 200,363,000 in 2008 Additional paid-in capital Retained earnings (Note 2) Accumulated other comprehensive gain/(loss) Total stockholders' equity Total liabilities and stockholders' equity 1,001 32,221 2,816,607 (13,382) 2,836,447 $3,825,874 1,002 2,262,503 (37,651) 2,225,854 $2,934,421 $203,388 45,236 87,424 119,150 27,910 103,195 34,146 40,373 22,846 683,668 10,170 255,748 38,574 1,267 $160,094 34,241 87,408 90,30,941 31,071 24,329 20,075 479,176 13,910 214,366 1,115 2,047 746,464 15,400 20,498 206,256 $3,825,874 88,272 244,804 72,665 113,956 59,009 14,698 593,404 (148,152) 445,252 1,941 262,009 16,013 9,840 214,941 $2,934,421 874,110 309,938 59,189 39,470 2,393,871 741,321 425,312 49,825 58,746 1,984,425 $1,091,581 19,583 $696,335 12,886 December 27, 2008

See accompanying notes.

Garmin Ltd. And Subsidiaries Consolidated Statements of Income (In Thousands, Except Per Share Information) Fiscal Year Ended December 26, 2009 Net sales Cost of goods sold Gross profit Advertising expense Selling, general and administrative expenses Research and development expense Operating income Other income (expense): Interest income Interest expense Foreign currency Gain on sale of equity securities Other Income before income taxes Income tax provision (benefit): (Note 6) Current Deferred Net income Basic net income per share (Note 10) Diluted net income per share (Note 10) 128,036 (23,335) 104,701 $703,950 $3.51 $3.50 136,252 45,266 181,518 $732,848 $3.51 $3.48 179,355 (56,093) 123,262 $855,011 $3.95 $3.89 (6,040) 2,741 2,421 22,641 808,651 23,519 35,535 (607) (35,286) 50,884 1,823 52,349 914,366 41,995 (207) 22,964 5,101 1,069 70,922 978,273 $2,946,440 1,502,329 1,444,111 155,521 264,202 238,378 658,101 786,010 $ December 27, 2008 3,494,077 1,940,562 1,553,515 208,177 277,212 206,109 691,498 862,017 December 29, 2007 $3,180,319 1,717,064 1,463,255 206,948 189,550 159,406 555,904 907,351

Garmin Ltd. And Subsidiaries Consolidated Statements of Stockholders' Equity (In Thousands, Except Share and Per Share Information)
Balance at December 30, 2006 Net income Translation adjustment Adjustment related to unrealized gains (losses) on available-for-sale securities, net of income tax effects of $31 Comprehensive income Dividends paid Tax benefit from exercise of employee stock options Issuance of common stock from exercise of stock options Stock appreciation rights Purchase and retirement of common stock Issuance of common stock through stock purchase plan Balance at December 29, 2007 Net income Translation adjustment Adjustment related to unrealized gains (losses) on available-for-sale securities, net of income tax effects of $150 Comprehensive income Dividends paid Tax benefit from exercise of employee stock options Issuance of common stock from exercise of stock options Stock appreciation rights Purchase and retirement of common stock Issuance of common stock through stock purchase plan Balance at December 27, 2008 Net income Translation adjustment Adjustment related to unrealized gains (losses) on available-for-sale securities, net of income tax effects of $150 Comprehensive income Dividends paid Tax benefit from exercise of employee stock options Issuance of common stock from exercise of stock options Stock appreciation rights Purchase and retirement of common stock Issuance of common stock through stock purchase plan Balance at December 26, 2009 See accompanying notes.
Common Stock Shares Dollars 216,098 $1,082
Additional Paid-In Capital $83,438
Accumulated Other Retained Comprehensive Earnings Gain/(Loss) $1,478,654 ($5,275) 855,011 992
Total $1,557,899 855,011 992

819 (57) 120 216,980

4 $1,086
17,434 11,278 22,164 (7,780) 5,730 $132,264 (3,053)
(162,531) $2,171,134 732,848 (1,595)
50,413 $46,130 (14,991)
50,413 906,415 (162,531) 17,434 11,282 22,164 (7,780) 5,730 $2,350,614 732,848 (19,639)

158 (17,138) 363 200,363

2 (86) $1,002
2,143 2,873 38,872 (182,128) 9,029 $0
(150,251) (489,633) $2,262,503 703,950
(68,790) ($37,651) 24,537
(68,790) 644,419 (150,251) 2,143 2,875 38,872 (671,847) 9,029 $2,225,854 703,950 24,537

409 (708) 210 200,274

3 (4) $1,001
1,366 3,781 43,616 (20,254) 3,712 $32,221

(149,846) $2,816,607

(268) ($13,382)
(268) 728,219 (149,846) 1,366 3,784 43,616 (20,258) 3,712 $2,836,447
Garmin Ltd. And Subsidiaries Consolidated Statements of Cash Flows (In Thousands) Fiscal Year Ended December 26, 2009 Operating Activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Amortization Loss on sale of property and equipment Provision for doubtful accounts Provision for obsolete and slow-moving inventories Unrealized foreign currency losses/(gains) Deferred income taxes Stock compensation Realized gains on marketable securities Changes in operating assets and liabilities, net of acquisition: Accounts receivable Inventories Prepaid expenses and other current assets License fees Accounts payable Other current and non-current liabilities Deferred revenue Income taxes payable Net cash provided by operating activities Investing activities: Purchases of property and equipment Proceeds from sale of property and equipment Purchase of intangible assets Purchase of marketable securities Redemption of marketable securities Acquistions, net of cash acquired Change in restricted cash Net cash used in investing activities Financing activities: Dividends Payment on long-term debt Proceeds from issuance of common stock through stock purchase plan Proceeds from issuance of common stock from exercise of stock options Tax benefit related to stock option exercise Purchase of common stock Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 3,783 1,366 (20,258) (161,243) 9,902 395,246 696,335 $1,091,581 2,875 2,143 (671,847) (808,051) (9,118) (11,354) 707,689 $696,335 11,278 17,434 (7,780) (136,117) 92 370,368 337,321 $707,689 3,712 9,029 5,730 (149,846) (150,251) (162,531) (248) (49,199) 5 (7,573) (776,966) 285,970 (106) (547,869) (119,623) 19 (6,971) (373,580) 504,324 (60,131) (387) (56,349) (156,777) 5 (2,918) (1,672,041) 1,784,816 (128,751) (29) (175,695) (131,978) 61,189 2,740 (13,735) 38,875 172,215 65,706 15,772 1,094,456 206,101 83,035 (4,356) (15,289) (236,287) (4,507) 680 (90,180) 862,164 (477,108) (224,180) 6,213 (23,569) 174,781 253,909 55,548 682,088 56,695 39,791 (14) (1,332) 61,323 7,480 (25,096) 43,616 (2,741) 46,910 31,32,355 24,461 15,887 50,887 38,872 (50,884) 35,524 28,3,617 34,975 (926) (57,843) 22,164 (5,101) $703,950 $732,848 $855,011 December 27, 2008 December 29, 2007

Buildings and improvements Office furniture and equipment Manufacturing and engineering equipment Vehicles

Long-Lived Assets

As required by the Property, Plant and Equipment topic of the FASB ASC, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. The Intangibles Goodwill and Other topic of the FASB ASC requires that goodwill and intangible assets with indefinite useful lives should not be amortized but rather be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that they may be impaired. The Company did not recognize any goodwill or intangible asset impairment charges in 2009, 2008, or 2007. The Company established reporting units based on its current reporting structure. For purposes of testing goodwill for impairment, goodwill has been allocated to these reporting units to the extent it relates to each reporting unit. The accounting guidance also requires that intangible assets with definite lives be amortized over their estimated useful lives and reviewed for impairment. The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 3 to 10 years.

Dividends

On July 30, 2009 the Board of Directors declared a dividend of $0.75 per share to be paid on December 15, 2009 to shareholders of record on December 1, 2009. The Company paid out a dividend in the amount of $149,846. The dividend has been reported as a reduction of retained earnings.
On June 6, 2008 the Board of Directors declared a dividend of $0.75 per share to be paid on December 15, 2008 to shareholders of record on December 1, 2008. The Company paid out a dividend in the amount of $150,251. The dividend has been reported as a reduction of retained earnings. On August 1, 2007 the Board of Directors declared a dividend of $0.75 per share to be paid on September 14, 2007 to shareholders of record on August 15, 2007. The Company paid out a dividend in the amount of $162,531. The dividend has been reported as a reduction of retained earnings. Approximately $199,549 and $186,383 of retained earnings are indefinitely restricted from distribution to stockholders pursuant to the laws of Taiwan at December 26, 2009 and December 27, 2008, respectively.

The Company adopted the applicable guidance included in the FASB ASC topic Income Taxes related to accounting for uncertainty in income taxes on December 31, 2006, the beginning of fiscal year 2007. The total amount of unrecognized tax benefits as of December 26, 2009 was $255.7 million including interest of $20.1 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits for years ending December 26, 2009 and December 27, 2008 is as follows (in $millions):
December 26, 2009 $214.4 14.2 (16.2) 63.1 (19.8) $255.7 December 27, 2008 $126.6 14.2 (4.6) 83.8 (5.6) $214.4
Balance at beginning of year Additions based on tax positions related to prior years Reductions based on tax positions related to prior years Additions based on tax positions related to current period Reductions based on tax positions related to current period Reductions related to settelements with tax authorities Expiration of statute of limitations Balance at end of year
The December 26, 2009 balance of $255.7 million of unrecognized tax benefits, if recognized, would reduce the effective tax rate. None of the unrecognized tax benefits are due to uncertainty in the timing of deductibility. Accounting guidance requires unrecognized tax benefits to be classified as non-current liabilities, except for the portion that is expected to be paid within one year of the balance sheet date. The entire $255.7 million and $214.4 million are required to be classified as non-current at December 26, 2009 and December 27, 2008, respectively. Interest expense and penalties, if any, accrued on the unrecognized tax benefits are reflected in income tax expense. At December 26, 2009 and December 27, 2008, the Company had accrued approximately $20.1 and $11.1 million respectively for interest. Interest expense included in income tax expense for the years ending December 26, 2009 and December 27, 2008 are $9.0 million and $6.4 million, respectively. The Company had no amounts accrued for penalties as the nature of the unrecognized tax benefits, if recognized, would not warrant the imposition of penalties. The Company files income tax returns in the U.S. federal jurisdiction, and various state, local and foreign jurisdictions. The Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for years prior to 2006. The Company is no longer subject to Taiwan income tax examinations by tax authorities for years prior to 2004. The Company is no longer subject to United Kingdom tax examinations by tax authorities for years prior to 2008. The Company believes that it is reasonably possible that approximately $30 million of its reserves for certain unrecognized tax benefits will decrease within the next 12 months as the result of the expiration of statute of limitations. This potential decrease in unrecognized tax benefits would impact the Companys effective tax rate within the next 12 months.

The income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before taxes. The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows:
December 26, 2009 Federal income tax expense at U.S. statutory rate State income tax expense, net of federal tax effect Foreign tax rate differential Taiwan tax holiday benefit Net change in uncertain tax postions Other foreign taxes less incentives and credits Other, net Income tax expense $287,228 2,604 (219,482) (18,556) 41,400 10,379 1,128 $104,701
Fiscal Year Ended December 27, 2008 $332,278 2,030 (233,928) (24,904) 87,800 20,428 (2,186) $181,518
December 29, 2007 $342,396 5,922 (230,243) (44,128) 56,100 (117) (6,668) $123,262
The Companys income before income taxes attributable to non-U.S. operations was $678,868, $823,364, and $850,102, for the years ended December 26, 2009, December 27, 2008, and December 29, 2007, respectively. The Taiwan tax holiday benefits included in the table above reflect $0.09, $0.12, and $0.20 per weighted-average common share outstanding for the years ended December 26, 2009, December 27, 2008, and December 29, 2007,
respectively. The Company currently expects to benefit from these Taiwan tax holidays through 2013, at which time these tax benefits expire. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Companys deferred tax assets and liabilities are as follows:
December 26, 2009 Deferred tax assets: Product warranty accruals Allowance for doubtful accounts Inventory reserves Sales program allowances Reserve for sales returns Other accruals Unrealized intercompany profit in inventory Unrealized foreign currency loss Stock option compensation Tax credit carryforwards, net Net operating losses of subsidiaries Other Valuation allowance related to loss carryforward and tax credits Deferred tax liabilities: Depreciation Prepaid expenses Unrealized foreign currency loss Book basis in excess of tax basis for acquired entities Unrealized investment gain Other Net deferred tax assets $1,642 15,346 10,145 12,902 5,414 12,31,034 36,834 3,480 3,211 (35,617) 97,606 13,839 2,014 11,202 28,089 $69,517 December 27, 2008 $1,696 15,098 5,331 14,471 2,914 5,411 3,601 20,375 36,406 2,809 5,022 (34,487) 78,647 12,872 3,15,378 32,892 $45,755 December 29, 2007 $18,975 2,430 7,699 42,832 5,565 3,911 30,006 8,887 15,198 1,800 4,649 (15,491) 126,461 9,209 6,14,254 31,020 $95,441

$144,740 168,528 1,371,240
$1,015,752 55,566 166,976
$3,494,077 445,252 2,225,854
$2,066,823 185,838 908,267
$144,155 143,181 1,309,783

$969,341 45,128 132,564

$3,180,319 374,147 2,350,614
Best Buy, a customer in the outdoor/fitness, marine, and auto/mobile segments, accounted for 13.4% and 12.0% of the Companys consolidated net sales in the year ended December 26, 2009 and December 27, 2008, respectively.
9. Stock Compensation Plans Accounting for Stock-Based Compensation
The various Company stock compensation plans are summarized below:
2005 Equity Incentive Plan
In June 2005, the shareholders adopted an equity incentive plan (the 2005 Plan) providing for grants of incentive and nonqualified stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and/or performance shares to employees of the Company and its subsidiaries, pursuant to which up to 10,000,000 common shares were available for issuance. The stock options and stock appreciation rights vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised. During 2009, 2008 and 2007, the Company granted 0, 1,454,050 and 2,838,200 stock appreciation rights, respectively. During 2009, 2008 and 2007, 470,950, 1,043,800, and 0 restricted stock units were granted under the 2005 Plan. In 2009, 2008, and 2007, 0, 30,000 and 0 performance shares were also granted under the 2005 Plan.
2000 Equity Incentive Plan
In October 2000, the shareholders adopted an equity incentive plan (the 2000 Plan) providing for grants of incentive and nonqualified stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and/or performance shares to employees of the Company and its subsidiaries, pursuant to which up to 7,000,000 common shares were available for issuance. The stock options and stock appreciation rights vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised. During 2009, 2008, and 2007, the Company granted 0, 0, and 20,000 stock appreciation rights.
2000 Non-employee Directors Option Plan
Also in October 2000, the stockholders adopted a stock option plan for non-employee directors (the Directors Plan) providing for grants of options for up to 100,000 common shares. The term of each award is ten years. All awards vest evenly over a three-year period. During 2009, 2008 and 2007, options to purchase 34,648, 15,696, and 5,562 shares, respectively, were granted under this plan. In 2009, the stockholders approved an additional 150,000 shares to the plan, making the total shares authorized under the plan 250,000.

Garmin Ltd. 2009 Cash Incentive Bonus Plan (incorporated by reference to Exhibit 10.18 of the Registrants Annual Report on Form 10-K filed on February 25, 2009). Vendor Agreement dated February 27, 2004 between Best Buy Purchasing LLC and Garmin USA, Inc. (incorporated by reference to Exhibit 10.19 of the Registrants Annual Report on Form 10-K filed on February 25, 2009). Best Buy Vendor Program Agreement dated February 29, 2008 (incorporated by reference to Exhibit 10.20 of the Registrants Annual Report on Form 10-K filed on February 25, 2009). Best Buy Vendor Program Agreement and Addendum thereto dated March 30, 2009 (incorporated by reference to Exhibit 10.1 of the Registrants Quarterly Report on Form 10-Q filed on August 5, 2009). Amended and Restated Garmin Ltd. Employee Stock Purchase Plan, effective January 1, 2010.
Form of Time Vested Restricted Stock Unit Award Agreement under the Garmin Ltd. 2005 Equity Incentive Plan, as revised by the Registrants Board of Directors on December 11, 2009. Form of Performance Shares Award Agreement under the Garmin Ltd. 2005 Equity Incentive Plan, as revised by the Registrants Board of Directors on December 11, 2009. Garmin Ltd. 2005 Equity Incentive Plan (as Amended and Restated Effective June 5, 2009) (incorporated by reference to Schedule 1 of the Registrants Proxy Statement on Schedule 14A filed on April 21, 2009). Garmin Ltd. Amended and Restated 2000 Non-Employee Directors Option Plan, Effective June 5, 2009 (incorporated by reference to Schedule 2 of the Registrants Proxy Statement on Schedule 14A filed on April 21, 2009). Code of Conduct of Garmin Ltd. and Subsidiaries (incorporated by reference to Exhibit 14.1 of the Registrants Annual Report on Form 10-K filed on February 25, 2009). List of subsidiaries Consent of Ernst & Young LLP Power of Attorney (included in signature page) Chief Executive Officers Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Chief Financial Officers Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Chief Executive Officers Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

21.1 23.1 24.1 31.1

Chief Financial Officers Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. XBRL Instance Document

Exhibit 101.INS

Exhibit 101.SCH XBRL Taxonomy Extension Schema Exhibit 101.CAL XBRL Taxonomy Extension Calculation Linkbase Exhibit 101.LAB XBRL Taxonomy Extension Label Linkbase Exhibit 101.PRE XBRL Taxonomy Extension Presentation Linkbase Exhibit 101.DEF XBRL Taxonomy Extension Definition Linkbase