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Segment Information and Geographic Data
 6 Months Ended
Jun. 25, 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 and 26-week periods ended June 26, 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 June 25, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

272,095

 

 

$

381,915

 

 

$

204,739

 

 

$

242,794

 

 

$

139,290

 

 

$

80,328

 

 

$

58,962

 

 

$

1,240,833

 

Gross profit

 

 

134,016

 

 

 

253,255

 

 

 

147,931

 

 

 

137,406

 

 

 

56,218

 

 

 

37,253

 

 

 

18,965

 

 

 

728,826

 

Operating income (loss)

 

 

23,462

 

 

 

154,250

 

 

 

61,745

 

 

 

68,619

 

 

 

(15,336

)

 

 

9,121

 

 

 

(24,457

)

 

 

292,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13-Weeks Ended June 26, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

413,201

 

 

$

323,405

 

 

$

180,832

 

 

$

261,790

 

 

$

147,677

 

 

$

86,278

 

 

$

61,399

 

 

$

1,326,905

 

Gross profit

 

 

225,192

 

 

 

208,158

 

 

 

131,934

 

 

 

152,609

 

 

 

62,958

 

 

 

42,261

 

 

 

20,697

 

 

 

780,851

 

Operating income (loss)

 

 

113,733

 

 

 

120,843

 

 

 

51,126

 

 

 

91,091

 

 

 

(5,621

)

 

 

16,355

 

 

 

(21,976

)

 

 

371,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26-Weeks Ended June 25, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

492,992

 

 

$

766,519

 

 

$

379,505

 

 

$

496,863

 

 

$

277,617

 

 

$

145,458

 

 

$

132,159

 

 

$

2,413,496

 

Gross profit

 

 

240,205

 

 

 

500,751

 

 

 

275,474

 

 

 

265,987

 

 

 

108,889

 

 

 

68,213

 

 

 

40,676

 

 

 

1,391,306

 

Operating income (loss)

 

 

24,043

 

 

 

303,229

 

 

 

101,871

 

 

 

127,501

 

 

 

(35,347

)

 

 

12,953

 

 

 

(48,300

)

 

 

521,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26-Weeks Ended June 26, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

721,326

 

 

$

579,859

 

 

$

354,721

 

 

$

471,163

 

 

$

272,163

 

 

$

148,673

 

 

$

123,490

 

 

$

2,399,232

 

Gross profit

 

 

398,737

 

 

 

379,833

 

 

 

258,116

 

 

 

273,989

 

 

 

111,732

 

 

 

74,225

 

 

 

37,507

 

 

 

1,422,407

 

Operating income (loss)

 

 

184,415

 

 

 

212,854

 

 

 

96,140

 

 

 

153,997

 

 

 

(26,575

)

 

 

25,393

 

 

 

(51,968

)

 

 

620,831

 

 

Net sales to external customers by geographic region were as follows for the 13-week and 26-week periods ended June 25, 2022 and June 26, 2021. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:

 

 

 

13-Weeks Ended

 

 

26-Weeks Ended

 

 

 

June 25, 2022

 

 

June 26, 2021

 

 

June 25, 2022

 

 

June 26, 2021

 

Americas

 

$

646,172

 

 

$

646,393

 

 

$

1,216,807

 

 

$

1,150,085

 

EMEA

 

 

412,550

 

 

 

488,724

 

 

 

810,027

 

 

 

888,232

 

APAC

 

 

182,111

 

 

 

191,788

 

 

 

386,662

 

 

 

360,915

 

Net sales to external customers

 

$

1,240,833

 

 

$

1,326,905

 

 

$

2,413,496

 

 

$

2,399,232