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Segment Information and Geographic Data
 3 Months Ended
Mar. 26, 2022
Segment Reporting [Abstract]  
Segment Information and Geographic Data

4. Segment Information and Geographic Data

 

Garmin is organized in the six operating segments of fitness, outdoor, aviation, marine, consumer auto, and auto OEM. 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 the Company's reported segments.

 

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 manner appropriate to the specific facts and circumstances of the expenses being allocated.

 

As indicated in Note 1 to the condensed consolidated financial statements, in the first quarter of fiscal 2022 the methodology used to allocate certain selling, general, and administrative expenses to the segments was refined to allocate these expenses in a more direct manner to provide the Company’s CODM with a more meaningful representation of segment profit or loss. The Company’s composition of operating segments and reportable segments did not change. Results for the 13-week period ended March 27, 2021 have been recast below to conform with the current period presentation.

 

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 auto OEM and consumer auto operating segments that management believes is useful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto

 

 

 

 

 

 

Fitness

 

 

Outdoor

 

 

Aviation

 

 

Marine

 

 

Total
Auto

 

 

Consumer
Auto

 

 

Auto
OEM

 

 

Total

 

13-Weeks Ended March 26, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

220,896

 

 

$

384,604

 

 

$

174,766

 

 

$

254,069

 

 

$

138,327

 

 

$

65,130

 

 

$

73,197

 

 

$

1,172,662

 

Gross profit

 

 

106,189

 

 

 

247,495

 

 

 

127,543

 

 

 

128,581

 

 

 

52,671

 

 

 

30,960

 

 

 

21,711

 

 

 

662,479

 

Operating income (loss)

 

 

580

 

 

 

148,979

 

 

 

40,127

 

 

 

58,882

 

 

 

(20,012

)

 

 

3,831

 

 

 

(23,843

)

 

 

228,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13-Weeks Ended March 27, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

308,125

 

 

$

256,455

 

 

$

173,889

 

 

$

209,372

 

 

$

124,486

 

 

$

62,395

 

 

$

62,091

 

 

$

1,072,327

 

Gross profit

 

 

173,545

 

 

 

171,676

 

 

 

126,182

 

 

 

121,379

 

 

 

48,774

 

 

 

31,964

 

 

 

16,810

 

 

 

641,556

 

Operating income (loss)

 

 

70,682

 

 

 

92,011

 

 

 

45,014

 

 

 

62,906

 

 

 

(20,954

)

 

 

9,038

 

 

 

(29,992

)

 

 

249,659

 

 

Net sales to external customers by geographic region were as follows for the 13-week periods ended March 26, 2022 and March 27, 2021. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

 

 

 

13-Weeks Ended

 

 

 

March 26, 2022

 

 

March 27, 2021

 

Americas

 

$

570,634

 

 

$

503,691

 

EMEA

 

 

397,477

 

 

 

399,508

 

APAC

 

 

204,551

 

 

 

169,128

 

Net sales to external customers

 

$

1,172,662

 

 

$

1,072,327