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Segment Information
 12 Months Ended
Dec. 25, 2021
Segment Reporting [Abstract]  
Segment Information

8. Segment Information

Garmin is organized in the six operating segments of fitness, outdoor, aviation, marine, consumer auto, and auto OEM. Each operating segment is individually reviewed and evaluated by the Chief Operating Decision Maker (CODM), who allocates resources and assesses performance of each segment individually. The fitness, outdoor, aviation, and marine operating segments represent reportable segments. The consumer auto and auto OEM operating segments, which serve the auto market, do not meet the quantitative thresholds to separately qualify as reportable segments, and they are therefore reported together in an “all other” category captioned as auto. Fitness, outdoor, aviation, marine, and auto are collectively referred to as our reported segments.

The products of the Company’s segments are sold through the Company’s network of independent dealers and distributors, our own webshop, as well as through various aviation, marine, and auto OEMs. However, the nature of products and types of customers for the segments vary.

The Company’s Chief Executive Officer, who has been identified as the CODM, uses operating income as the measure of profit or loss, combined with other measures, to assess segment performance and allocate resources. Operating income represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment. Most costs of goods sold and the majority of operating expenses are also directly attributed to each segment, while certain other costs of goods sold and operating expenses are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. There are no inter-segment sales or transfers.

The Company’s segments share many common resources, infrastructures and assets in the normal course of business. Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, or capital expenditures by segment to the CODM.

Net sales (“revenue”), gross profit, and operating income for each of the Company’s five reported segments are presented below, along with supplemental financial information for the consumer auto and auto OEM operating segments that management believes is useful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto

 

 

 

 

 

 

Fitness

 

 

Outdoor

 

 

Aviation

 

 

Marine

 

 

Total
Auto

 

 

Consumer
Auto

 

 

Auto
OEM

 

 

Total

 

52-Weeks Ended December 25, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,533,788

 

 

$

1,281,933

 

 

$

712,468

 

 

$

875,151

 

 

$

579,455

 

 

$

324,731

 

 

$

254,724

 

 

$

4,982,795

 

Gross profit

 

 

813,325

 

 

 

834,837

 

 

 

519,821

 

 

 

495,310

 

 

 

227,166

 

 

 

153,825

 

 

 

73,341

 

 

 

2,890,459

 

Operating income (loss)

 

 

372,575

 

 

 

480,777

 

 

 

191,775

 

 

 

244,199

 

 

 

(70,706

)

 

 

45,603

 

 

 

(116,309

)

 

 

1,218,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52-Weeks Ended December 26, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,317,498

 

 

$

1,128,081

 

 

$

622,820

 

 

$

657,848

 

 

$

460,326

 

 

$

275,493

 

 

$

184,833

 

 

$

4,186,573

 

Gross profit

 

 

697,539

 

 

 

739,777

 

 

 

453,008

 

 

 

384,450

 

 

 

206,562

 

 

 

139,864

 

 

 

66,698

 

 

 

2,481,336

 

Operating income (loss)

 

 

318,884

 

 

 

441,085

 

 

 

137,203

 

 

 

175,724

 

 

 

(18,656

)

 

 

41,464

 

 

 

(60,120

)

 

 

1,054,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52-Weeks Ended December 28, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,047,527

 

 

$

917,567

 

 

$

735,458

 

 

$

508,850

 

 

$

548,103

 

 

$

365,511

 

 

$

182,592

 

 

$

3,757,505

 

Gross profit

 

 

532,604

 

 

 

598,443

 

 

 

543,385

 

 

 

302,949

 

 

 

256,595

 

 

 

172,218

 

 

 

84,377

 

 

 

2,233,976

 

Operating income (loss)

 

 

191,858

 

 

 

334,041

 

 

 

252,943

 

 

 

109,876

 

 

 

56,868

 

 

 

63,299

 

 

 

(6,431

)

 

 

945,586

 

 

Net sales, property and equipment, and net assets by geographic area are as shown below for the years ended December 25, 2021, December 26, 2020, and December 28, 2019. Note that APAC includes Asia Pacific and Australian Continent, and EMEA includes Europe, the Middle East and Africa.

 

 

 

Americas

 

 

EMEA

 

 

APAC

 

 

Total

 

December 25, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

2,349,514

 

 

$

1,858,908

 

 

$

774,373

 

 

$

4,982,795

 

Property and equipment, net

 

 

576,481

 

 

 

120,004

 

 

 

370,993

 

 

 

1,067,478

 

Net assets (2)

 

 

3,745,120

 

 

 

1,227,928

 

 

 

1,141,111

 

 

 

6,114,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 26, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

1,968,080

 

 

$

1,579,749

 

 

$

638,744

 

 

$

4,186,573

 

Property and equipment, net

 

 

467,269

 

 

 

114,313

 

 

 

273,957

 

 

 

855,539

 

Net assets (2)

 

 

3,327,748

 

 

 

1,163,127

 

 

 

1,025,241

 

 

 

5,516,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 28, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

1,817,770

 

 

$

1,350,533

 

 

$

589,202

 

 

$

3,757,505

 

Property and equipment, net

 

 

435,503

 

 

 

65,323

 

 

 

228,095

 

 

 

728,921

 

Net assets (2)

 

 

3,074,155

 

 

 

714,602

 

 

 

1,004,739

 

 

 

4,793,496

 

 

(1) The United States is the only country which constitutes greater than 10% of net sales to external customers.

(2) Americas and APAC net assets are primarily held in the United States and Taiwan, respectively.