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Segment Information and Geographic Data
 12 Months Ended
Dec. 30, 2023
Segment Reporting [Abstract]  
Segment Information and Geographic Data

11. Segment Information and Geographic Data

Garmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM. These operating segments represent the Company's reportable segments.

The Company’s Chief Executive Officer, who has been identified as the CODM, primarily uses operating income as the measure of profit or loss 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 of the Notes to Consolidated Financial Statements, the Company announced an organization realignment in January 2023, which combined the consumer auto operating segment with the outdoor operating segment. As a result, the Company’s operating segments, which also represent its reportable segments, are fitness, outdoor, aviation, marine, and auto OEM. Results for the 53-week and 52-week periods ended December 31, 2022 and December 25, 2021, respectively, 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 reportable segments are presented below.

 

 

 

Fitness

 

 

Outdoor

 

 

Aviation

 

 

Marine

 

 

Auto OEM

 

 

Total

 

52-Weeks Ended December 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,344,637

 

 

$

1,697,151

 

 

$

846,329

 

 

$

916,911

 

 

$

423,224

 

 

$

5,228,252

 

Gross profit

 

 

716,906

 

 

 

1,072,861

 

 

 

625,988

 

 

 

491,261

 

 

 

97,939

 

 

 

3,004,955

 

Operating income (loss)

 

 

232,201

 

 

 

515,254

 

 

 

226,400

 

 

 

179,429

 

 

 

(61,124

)

 

 

1,092,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

53-Weeks Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,109,419

 

 

$

1,770,275

 

 

$

792,799

 

 

$

903,983

 

 

$

283,810

 

 

$

4,860,286

 

Gross profit

 

 

552,417

 

 

 

1,099,408

 

 

 

573,063

 

 

 

491,457

 

 

 

90,430

 

 

 

2,806,775

 

Operating income (loss)

 

 

104,738

 

 

 

573,281

 

 

 

213,186

 

 

 

215,304

 

 

 

(78,664

)

 

 

1,027,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

53-Weeks Ended December 25, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

1,533,788

 

 

$

1,606,664

 

 

$

712,468

 

 

$

875,151

 

 

$

254,724

 

 

$

4,982,795

 

Gross profit

 

 

813,325

 

 

 

988,662

 

 

 

519,821

 

 

 

495,310

 

 

 

73,341

 

 

 

2,890,459

 

Operating income (loss)

 

 

359,201

 

 

 

524,469

 

 

 

193,188

 

 

 

249,781

 

 

 

(108,019

)

 

 

1,218,620

 

 

Net sales, property and equipment, and net assets by geographic area are as shown below for the fiscal years ended December 30, 2023, December 31, 2022, and December 25, 2021. Note that APAC includes Asia Pacific and Australian Continent, and EMEA includes Europe, the Middle East and Africa.

 

 

 

Americas

 

 

EMEA

 

 

APAC

 

 

Total

 

December 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

2,614,358

 

 

$

1,775,965

 

 

$

837,929

 

 

$

5,228,252

 

Property and equipment, net

 

 

736,218

 

 

 

141,388

 

 

 

346,491

 

 

 

1,224,097

 

Net assets (2)

 

 

4,377,450

 

 

 

1,297,580

 

 

 

1,339,275

 

 

 

7,014,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(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.