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Segment Information and Geographic Data
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information and Geographic Data

11. Segment Information and Geographic Data

During 2022, 2021, and 2020, Garmin was 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 CODM, who allocates resources and assesses performance of each segment individually. The fitness, outdoor, aviation, and marine operating segments represented reportable segments during 2022, 2021, and 2020. The consumer auto and auto OEM operating segments, which serve the auto market, did 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 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.

As indicated in Note 1 to the 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 at that time. Results for the 52-week periods ended December 25, 2021 and December 26, 2020 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 consumer auto and auto OEM operating segments that management believes is useful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto

 

 

 

 

 

 

Fitness

 

 

Outdoor

 

 

Aviation

 

 

Marine

 

 

Total
Auto

 

 

Consumer
Auto

 

 

Auto
OEM

 

 

Total

 

53-Weeks Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,109,419

 

 

$

1,495,167

 

 

$

792,799

 

 

$

903,983

 

 

$

558,918

 

 

$

275,108

 

 

$

283,810

 

 

$

4,860,286

 

Gross profit

 

 

552,417

 

 

 

969,810

 

 

 

573,063

 

 

 

491,457

 

 

 

220,028

 

 

 

129,598

 

 

 

90,430

 

 

 

2,806,775

 

Operating income (loss)

 

 

104,738

 

 

 

556,448

 

 

 

213,186

 

 

 

215,304

 

 

 

(61,831

)

 

 

16,833

 

 

 

(78,664

)

 

 

1,027,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

359,201

 

 

 

476,122

 

 

 

193,188

 

 

 

249,781

 

 

 

(59,672

)

 

 

48,347

 

 

 

(108,019

)

 

 

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)

 

 

305,283

 

 

 

438,197

 

 

 

146,608

 

 

 

177,184

 

 

 

(13,032

)

 

 

45,033

 

 

 

(58,065

)

 

 

1,054,240

 

 

Net sales, property and equipment, and net assets by geographic area are as shown below for the fiscal years ended December 31, 2022, December 25, 2021, and December 26, 2020. Note that APAC includes Asia Pacific and Australian Continent, and EMEA includes Europe, the Middle East and Africa.

 

 

 

Americas

 

 

EMEA

 

 

APAC

 

 

Total

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

2,429,029

 

 

$

1,633,640

 

 

$

797,617

 

 

$

4,860,286

 

Property and equipment, net

 

 

676,855

 

 

 

121,920

 

 

 

348,230

 

 

 

1,147,005

 

Net assets (2)

 

 

3,717,198

 

 

 

1,210,461

 

 

 

1,276,681

 

 

 

6,204,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(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.