GARMIN LTD
For the period ended Jun 29, 2024. Filed Jul 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2024 · Filed Jul 31, 2024
GRMN$285.57-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-30; filed 2024-05-01.
0000950170-24-050879
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-29; filed 2024-07-31.
0000950170-24-088230
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 50 previous paragraphs and 72 current paragraphs.
26 unchanged; 24 reworded; 12 added; 0 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 5 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
The $4.8 million currency loss recognized in the second quarter of 2024 was primarily due to the U.S. Dollar strengthening against the Euro and Polish Zloty, offset by the U.S. Dollar strengthening against the Taiwan Dollar, within the 13-week period ended June 29, 2024. During this period, the U.S. Dollar strengthened 0.7% against the Euro and 0.8% against the Polish Zloty, resulting in losses of $3.3 million and $1.7 million, respectively, while the U.S. Dollar strengthened 1.7% against the Taiwan Dollar, resulting in a gain of $8.4 million. The remaining net currency loss of $8.2 million was related to the impacts of other drivers, each of which was individually immaterial.
Current report
Comparison of 26-Weeks Ended June 29, 2024 and July 1, 2023
Current report
Net Sales
Current report
Gross Profit
Current report
Operating Expense
Current report
Total operating expense in the first half of 2024 increased 10% in absolute dollars and decreased 220 basis points as a percent of revenue when compared to the year-ago period.
Current report
Operating Income
Current report
Other Income (Expense)
Current report
The average interest returns on cash and investments during the 26-week periods ended June 29, 2024 and July 1, 2023 were 3.3% and 2.5%, respectively.
Current report
The $2.5 million currency loss recognized in the 26-week period ended June 29, 2024 was primarily due to the U.S. Dollar strengthening against the Polish Zloty, Euro, and Australian Dollar, offset by the U.S. Dollar strengthening against the Taiwan Dollar, within the 26-week period ended June 29, 2024. During this period, the U.S. Dollar strengthened 2.6% against the Polish Zloty, 2.9% against the Euro, and 2.7% against the Australian Dollar, resulting in losses of $8.5 million, $6.2 million, and $2.9 million, respectively, while the U.S. Dollar strengthened 5.6% against the Taiwan Dollar, resulting in a gain of $30.0 million. The remaining net currency loss of $14.9 million was related to the impacts of other drivers, each of which was individually immaterial.
Current report
Income Tax Provision
Reworded paragraphs (24)
Previous wording
The discussion set forth below, as well as other portions of this Quarterly Report, contain statements concerning potential future events. Such forward-looking statements are based upon assumptions by management, as of the date of this Quarterly Report, including assumptions about risks and uncertainties faced by the Company. Readers can identify these forward-looking statements by their use of such words as "future", "expects", "anticipates", "believes", “estimates”, “would”, “could”, “can”, “may,” or other similar words or other comparable terms. If any of the Company’s assumptions prove incorrect or should unanticipated circumstances arise, actual results could materially differ from those anticipated by such forward-looking statements. The differences could be caused by a number of factors or combination of factors including, but not limited to, those factors identified in Part II, Item 1A of this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023. Readers are strongly encouraged to consider those factors when evaluating any forward-looking statement concerning the Company. These forward-looking statements are made as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements in this Quarterly Report to reflect future events or developments, except as required by law.
Current wording
The discussion set forth below, as well as other portions of this Quarterly Report on Form 10-Q, contain statements concerning potential future events. Such forward-looking statements are based upon assumptions by management, as of the date of this Quarterly Report on Form 10-Q, including assumptions about risks and uncertainties faced by the Company. Readers can identify these forward-looking statements by their use of such words as "future", "expects", "anticipates", "believes", “estimates”, “would”, “could”, “can”, “may,” or other similar words or other comparable terms. If any of the Company’s assumptions prove incorrect or should unanticipated circumstances arise, actual results could materially differ from those anticipated by such forward-looking statements. The differences could be caused by a number of factors or combination of factors including, but not limited to, those factors identified in Part II, Item 1A of this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023. Readers are strongly encouraged to consider those factors when evaluating any forward-looking statement concerning the Company. These forward-looking statements are made as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements in this Quarterly Report on Form 10-Q to reflect future events or developments, except as required by law.
Previous wording
The information contained in this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and Notes thereto included in this Form 10-Q and the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023. Unless the context otherwise requires, references in this document to "we", "us", "our", the "Company" and similar terms refer to Garmin Ltd. and its subsidiaries.
Current wording
The information contained in this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and Notes thereto included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 30, 2023. Unless the context otherwise requires, references in this document to "we", "us", "our", the "Company" and similar terms refer to Garmin Ltd. and its subsidiaries.
Previous wording
This change in presentation had no effect on the Company's consolidated operating or net income. The amounts presented below for selling, general and administrative expenses for the 13-week period ended April 1, 2023 have been recast to conform with the current period presentation.
Current wording
This change in presentation had no effect on the Company's consolidated operating or net income. The amounts presented below for selling, general and administrative expenses for the 13-week and 26-week periods ended July 1, 2023 have been recast to conform with the current period presentation.
Previous wording
Net sales increased 20% for the 13-week period ended March 30, 2024 when compared to the year-ago quarter. Total unit sales in the first quarter of 2024 increased to 3,890 when compared to total unit sales of 3,210 in the first quarter of 2023, which differs from the percent increase in revenue primarily due to shifts in segment and product mix. Outdoor was the largest portion of our revenue mix at 26% in the first quarter of 2024 compared to 29% in the first quarter of 2023.
Current wording
Net sales increased 14% for the 13-week period ended June 29, 2024 when compared to the year-ago quarter. Total unit sales in the second quarter of 2024 increased to 4,655 when compared to total unit sales of 4,162 in the second quarter of 2023, which differs from the percent increase in revenue primarily due to shifts in segment and product mix. Outdoor was the largest portion of our revenue mix at 29% in the second quarter of 2024 compared to 34% in the second quarter of 2023.
Previous wording
Gross profit dollars in the first quarter of 2024 increased 23%, primarily due to the increase in net sales when compared to the year-ago quarter, as described above. Consolidated gross margin increased 120 basis points when compared to the year-ago quarter primarily due to favorable product mix within certain segments, partially offset by unfavorable segment mix.
Current wording
Gross profit dollars in the second quarter of 2024 increased 14%, primarily due to the increase in net sales when compared to the year-ago quarter, as described above. Consolidated gross margin was relatively flat as unfavorable segment mix was offset by favorable product mix within certain segments.
Previous wording
Total operating expense in the first quarter of 2024 increased 11% in absolute dollars and decreased 330 basis points as a percent of revenue when compared to the year-ago quarter.
Current wording
Total operating expense in the second quarter of 2024 increased 10% in absolute dollars and decreased 140 basis points as a percent of revenue when compared to the year-ago quarter.
Previous wording
Selling, general and administrative expenses increased 11% in absolute dollars and decreased 150 basis points as a percent of revenue when compared to the year-ago quarter. The absolute dollar expense increase was primarily attributable to increased personnel-related expenses, including the impact of the Company's acquisition of JL Audio.
Current wording
Selling, general and administrative expenses increased 11% in absolute dollars and was relatively flat as a percent of revenue when compared to the year-ago quarter. The absolute dollar expense increase was primarily attributable to increased personnel-related expenses, including the impact of the Company's acquisition of JL Audio.
Previous wording
Total operating income in the first quarter of 2024 increased 51% in absolute dollars and increased 440 basis points as a percent of revenue when compared to the year-ago quarter. The increase in operating income was driven by the increase in sales, increase in gross margin, and lower operating expenses as a percent of revenue, as described above. The improved performance in fitness, outdoor, marine, and auto OEM was partially offset by a decrease in aviation.
Current wording
Total operating income in the second quarter of 2024 increased 20% in absolute dollars and increased 120 basis points as a percent of revenue when compared to the year-ago quarter. The increase in operating income as a percent of revenue was driven by increased sales and lower operating expenses as a percent of revenue, as described above. The improved operating income dollar performance in fitness, marine, and auto OEM was partially offset by decreases in outdoor and aviation.
Previous wording
The average interest rate return on cash and investments during the first quarter of 2024 was 3.1%, compared to 2.4% during the same quarter of 2023.
Current wording
The average interest rate return on cash and investments during the second quarter of 2024 was 3.4%, compared to 2.7% during the same quarter of 2023.
Previous wording
The $7.7 million currency gain recognized in the first quarter of 2023 was primarily due to the U.S. Dollar weakening against the Polish Zloty, British Pound Sterling, Chinese Yuan, and Euro, partially offset by the U.S. Dollar weakening against the Taiwan Dollar, within the 13-week period ended April 1, 2023. During this period, the U.S. Dollar weakened 2.7% against the Polish Zloty, 2.0% against the British Pound Sterling, 1.3% against the Chinese Yuan, and 1.3% against the Euro, resulting in gains of $4.5 million, $1.3 million, $0.7 million, and $0.5 million respectively, while the U.S. Dollar weakened 0.4% against the Taiwan Dollar, resulting in a loss of $1.1 million. The remaining net currency gain of $1.8 million was related to the impacts of other currencies, each of which was individually immaterial.
Current wording
The $10.8 million currency gain recognized in the second quarter of 2023 was primarily due to the U.S. Dollar weakening against the Polish Zloty, British Pound Sterling, and Euro, and strengthening against the Taiwan Dollar, partially offset by the U.S. Dollar strengthening against the Chinese Yuan, Japanese Yen, and Australian Dollar, within the 13-week period ended July 1, 2023. During this period, the U.S. Dollar weakened 4.7% against the Polish Zloty, 3.0% against the British Pound Sterling, 0.7% against the Euro, and strengthened 2.0% against the Taiwan Dollar, resulting in gains of $9.4 million, $1.4 million, $0.9 million, and $7.1 million, respectively, partially offset by the U.S. Dollar strengthening 5.3% against the Chinese Yuan, 8.0% against the Japanese Yen, and 1.4% against the Australian Dollar, resulting in losses of $3.1 million, $2.1 million, and $0.8 million, respectively. The remaining net currency loss of $2.0 million was related to the impacts of other currencies, each of which was individually immaterial.
Previous wording
The Company recorded income tax expense of $51.1 million in the 13-week period ended March 30, 2024, compared to income tax expense of $19.4 million in the 13-week period ended April 1, 2023. The effective tax rate was 15.6% in the first quarter of 2024, compared to 8.8% in the first quarter of 2023. The increase in effective tax rate between comparative periods was primarily due to the increase in the combined federal and cantonal Switzerland statutory tax rate in response to the implementation of global minimum tax requirements.
Current wording
The Company recorded income tax expense of $65.3 million in the 13-week period ended June 29, 2024, compared to income tax expense of $28.0 million in the 13-week period ended July 1, 2023. The effective tax rate was 17.9% in the second quarter of 2024, compared to 8.9% in the second quarter of 2023. The increase in effective tax rate between comparative periods was primarily due to the increase in the combined federal and cantonal Switzerland statutory tax rate in response to the implementation of global minimum tax requirements.
Previous wording
As a result of the above, net income for the 13-week period ended March 30, 2024 was $276.0 million compared to $202.3 million for the 13-week period ended April 1, 2023, an increase of $73.7 million.
Current wording
As a result of the above, net income for the 13-week period ended June 29, 2024 was $300.6 million compared to $287.9 million for the 13-week period ended July 1, 2023, an increase of $12.7 million.
Previous wording
The increase in fitness revenue was driven by sales growth across all categories, led by strong demand for advanced wearables. Outdoor revenue increased primarily due to growth in wearable products. Aviation revenue increased due to growth in OEM product categories. The increase in marine revenue was primarily driven by contributions from the Company's acquisition of JL Audio. Auto OEM revenue increased primarily due to increased shipments of domain controllers.
Current wording
The increase in fitness revenue was driven by sales growth across all categories, led by strong demand for advanced wearables. Outdoor revenue increased primarily due to growth in sportsman products. Aviation revenue increased due to growth in OEM product categories, partially offset by declines in aftermarket categories. Marine revenue increased primarily driven by contributions from the Company's acquisition of JL Audio. Auto OEM revenue increased primarily due to growth in domain controllers.
Previous wording
The fitness, outdoor, and marine gross margin increases of 740 basis points, 390 basis points, and 120 basis points respectively, were primarily attributable to favorable product mix within those segments. The aviation gross margin increase of 270 basis points was primarily attributable to lower warranty costs. The auto OEM gross margin decrease of 1,040 basis points was primarily attributable to unfavorable product mix.
Current wording
The fitness and outdoor gross margin increases of 630 and 290 basis points, respectively, were primarily attributable to favorable product mix. The aviation gross margin increase of 130 basis points was primarily attributable to lower warranty costs. The marine gross margin was relatively flat when compared to the year-ago period. The auto OEM gross margin decrease of 870 basis points was primarily attributable to unfavorable product mix.
Previous wording
Research and development expense increased 10% in absolute dollars and decreased 180 basis points as a percent of revenue when compared to the year-ago quarter. The absolute dollar expense increase was primarily due to higher engineering personnel costs.
Current wording
Research and development expense increased 9% in absolute dollars and decreased 130 basis points as a percent of revenue when compared to the year-ago period. The absolute dollar expense increase was primarily due to higher engineering personnel costs.
Previous wording
The $2.3 million currency gain recognized in the first quarter of 2024 was primarily due to the U.S. Dollar strengthening against the Taiwan Dollar, partially offset by the U.S. Dollar strengthening against the Polish Zloty, Australian Dollar, and Euro within the 13-week period ended March 30, 2024. During this period, the U.S. Dollar strengthened 3.9% against the Taiwan Dollar, resulting in a gain of $21.6 million, while the U.S. Dollar strengthened 1.8% against the Polish Zloty, 4.6% against the Australian Dollar, and 2.2% against the Euro, resulting in losses of $6.8 million, $3.3 million, and $3.0 million, respectively. The remaining net currency loss of $6.2 million was related to the impacts of other currencies, each of which was individually immaterial.
Current wording
The $18.5 million currency gain recognized in the 26-week period ended July 1, 2023 was primarily due to the U.S. Dollar weakening against the Polish Zloty, British Pound Sterling, and Euro, and strengthening against the Taiwan Dollar, partially offset by the U.S. Dollar strengthening against the Chinese Yuan, Japanese Yen, and Australian Dollar, within the 26-week period ended July 1, 2023. During this period, the U.S. Dollar weakened 7.5% against the Polish Zloty, 5.0% against the British Pound Sterling, 1.9% against the Euro, and strengthened 1.6% against the Taiwan Dollar, resulting in gains of $13.9 million, $2.7 million, $1.4 million, and $5.9 million, respectively, partially offset by the U.S. Dollar strengthening 4.0% against the Chinese Yuan, 9.1% against the Japanese Yen, and 2.4% against the Australian Dollar, resulting in losses of $2.4 million, $2.0 million, and $0.5 million, respectively. The remaining net currency loss of $0.5 million was related to the impacts of other currencies, each of which was individually immaterial.
Previous wording
As of March 30, 2024, we had approximately $3.3 billion of cash, cash equivalents and marketable securities. Management invests idle or surplus cash in accordance with the Company's investment policy, which has been approved by the Company’s Board of Directors. The investment policy’s primary objectives are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk. Garmin’s average interest rate returns on cash and investments during the first quarter of 2024 and 2023 were 3.1% and 2.4%, respectively. The fair value of our securities varies from period to period due to changes in interest rates, the performance of the underlying collateral, and the credit performance of the underlying issuer, among other factors. See Note 4 for additional information regarding marketable securities.
Current wording
As of June 29, 2024, we had approximately $3.4 billion of cash, cash equivalents and marketable securities. Management invests idle or surplus cash in accordance with the Company's investment policy, which has been approved by the Company’s Board of Directors. The investment policy’s primary objectives are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk. Garmin’s average interest rate returns on cash and investments during the first halves of 2024 and 2023 were 3.3% and 2.5%, respectively. The fair value of our securities varies from period to period due to changes in interest rates, the performance of the underlying collateral, and the credit performance of the underlying issuer, among other factors. See Note 4 in the Notes to the Condensed Consolidated Financial Statements for additional information regarding marketable securities.
Previous wording
Cash provided by operating activities totaled $435.3 million for the first quarter of 2024, compared to $279.2 million for the first quarter of 2023. The increase was primarily due to an increase in cash received from customers primarily driven by higher net sales, partially offset by increases in cash paid for cost of goods sold and operating expenses in the first quarter of 2024 compared to the first quarter of 2023.
Current wording
Cash provided by operating activities totaled $690.6 million for the first half of 2024, compared to $552.9 million for the first half of 2023. The increase was primarily due to an increase in cash received from customers primarily driven by higher net sales as well as less cash paid for income taxes, partially offset by increases in cash paid for cost of goods sold and operating expenses in the first half of 2024 compared to the first half of 2023.
Previous wording
Cash used in investing activities totaled $36.9 million for the first quarter of 2024, compared to $7.9 million for the first quarter of 2023. The increase was primarily due to net purchases of marketable securities in the first quarter of 2024, compared to the net redemptions of marketable securities in the first quarter of 2023, partially offset by a decrease in purchases of property and equipment.
Current wording
Cash used in investing activities totaled $143.2 million for the first half of 2024, compared to $70.1 million for the first half of 2023. The increase was primarily due to net purchases of marketable securities in the first half of 2024, compared to the net redemptions of marketable securities in the first half of 2023, partially offset by a decrease in purchases of property and equipment.
Previous wording
Cash used in financing activities totaled $156.2 million for the first quarter of 2024, compared to $192.3 million for the first quarter of 2023. This decrease was primarily due to lower purchases of treasury shares under the share repurchase plan and partially offset by an increase in the purchase of treasury shares related to equity awards in the first quarter of 2024 compared to the first quarter of 2023.
Current wording
Cash used in financing activities totaled $285.7 million for the first half of 2024, compared to $337.1 million for the first half of 2023. This decrease was primarily due to lower purchases of treasury shares under share repurchase plans and partially offset by an increase in the purchase of treasury shares related to equity awards in the first half of 2024 compared to the first half of 2023.
Previous wording
The Company has lease arrangements for certain real estate properties, vehicles, and equipment. Leased properties are typically used for office space, distribution, and retail. As of March 30, 2024, the Company had fixed lease payment obligations of $155.7 million, with $34.5 million payable within 12 months.
Current wording
The Company has lease arrangements for certain real estate properties, vehicles, and equipment. Leased properties are typically used for office space, distribution, and retail. As of June 29, 2024, the Company had fixed lease payment obligations of $147.7 million, with $32.5 million payable within 12 months.
Previous wording
The Company obtains various raw materials and components for its products from a variety of third party suppliers. The Company’s inventory purchase obligations are primarily noncancelable. As of March 30, 2024, the Company had inventory purchase obligations of $773.5 million, with $623.1 million payable within 12 months.
Current wording
The Company obtains various raw materials and components for its products from a variety of third party suppliers. The Company’s inventory purchase obligations are primarily noncancelable. As of June 29, 2024, the Company had inventory purchase obligations of $862.7 million, with $685.2 million payable within 12 months.
Previous wording
The Company’s other purchase obligations primarily consist of noncancelable commitments for capital expenditures and other indirect purchases in connection with conducting our business. As of March 30, 2024, the Company had other purchase obligations of $396.8 million, with $210.2 million payable within 12 months.
Current wording
The Company’s other purchase obligations primarily consist of noncancelable commitments for capital expenditures and other indirect purchases in connection with conducting our business. As of June 29, 2024, the Company had other purchase obligations of $373.7 million, with $170.5 million payable within 12 months.
Previous wording
For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 1, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 and “Critical Accounting Policies and Estimates” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There were no significant changes to the Company’s critical accounting policies and estimates in the 13-week period ended March 30, 2024.
Current wording
For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 1, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 and “Critical Accounting Policies and Estimates” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There were no significant changes to the Company’s critical accounting policies and estimates in the 13-week and 26-week periods ended June 29, 2024.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The increase in fitness revenue was primarily driven by sales growth in wearables. The increase in marine revenue was primarily driven by contributions from the Company's acquisition of JL Audio. Auto OEM revenue increased primarily due to growth in domain controllers. Aviation revenue was relatively flat as growth in OEM product categories was offset by declines in aftermarket product categories. Outdoor revenue decreased primarily due to declines in adventure watches.
Current report — wording carried from elsewhere
The fitness and outdoor gross margin increases of 550 basis points and 210 basis points, respectively, were primarily attributable to favorable product mix. The aviation gross margin was relatively flat when compared to the year-ago quarter. The marine and auto OEM gross margin decreases of 160 basis points and 730 basis points, respectively, were primarily attributable to unfavorable product mix.
Current report — wording carried from elsewhere
Research and development expense increased 8% in absolute dollars and was relatively flat as a percent of revenue when compared to the year-ago quarter. The absolute dollar expense increase was primarily due to higher engineering personnel costs.
Current report — wording carried from elsewhere
Net sales increased 17% for the 26-week period ended June 29, 2024 when compared to the year-ago period. Total unit sales in the first half of 2024 increased to 8,545 when compared to total unit sales of 7,372 in the first half of 2023, which differs from the percent increase in revenue primarily due to shifts in segment and product mix. Outdoor was the largest portion of our revenue mix at 28% in the first half of 2024 compared to 31% in the first half of 2023.
Current report — wording carried from elsewhere
Gross profit dollars in the first half of 2024 increased 18%, primarily due to the increase in net sales when compared to the year-ago period, as described above. Consolidated gross margin was relatively flat when compared to the year-ago period.
Current report — wording carried from elsewhere
Selling, general and administrative expense increased 11% in absolute dollars and decreased 100 basis points as a percent of revenue compared to the year-ago period. The absolute dollar expense increase was primarily attributable to increased personnel-related expenses, including the impact of the Company's acquisition of JL Audio.
Current report — wording carried from elsewhere
Total operating income in the first half of 2024 increased 33% in absolute dollars and 270 basis points as a percent of revenue when compared to the year-ago period. The increase as a percent of revenue was primarily due to increased sales and lower operating expenses as a percent of revenue, as described above. The improved operating income dollar performance in fitness, outdoor, marine, and auto OEM was partially offset by a decrease in aviation.
Current report — wording carried from elsewhere
Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar. The Taiwan Dollar is the functional currency of Garmin Corporation, the Euro is the functional currency of several subsidiaries, and the U.S. Dollar is the functional currency of Garmin (Europe) Ltd., although some transactions and balances are denominated in British Pounds. Other notable currency exposures include the Australian Dollar, Chinese Yuan, Japanese Yen, and Polish Zloty. The majority of the Company’s consolidated foreign currency gain or loss is typically driven by the significant cash and marketable securities, receivables and payables held in a currency other than the functional currency at a given legal entity.
Current report — wording carried from elsewhere
The Company recorded income tax expense of $116.4 million in the first half of 2024, compared to income tax expense of $47.5 million in the first half of 2023. The effective tax rate was 16.8% in the first half of 2024, compared to 8.8% in the first half of 2023. The increase in effective tax rate between comparative periods was primarily due to the increase in the combined federal and cantonal Switzerland statutory tax rate in response to the implementation of global minimum tax requirements.
Current report — wording carried from elsewhere
As a result of the above, net income for the 26-week period ended June 29, 2024 was $576.6 million compared to $490.3 million for the 26-week period ended July 1, 2023, an increase of $86.3 million.