Garmin did not purchase shares in the first quarter under the $300 million authorization approved by the Board of Directors on February 15. The repurchase authorization remains in effect and management intends to repurchase shares from time to time as conditions warrant.
As announced in February, the Board will recommend to the shareholders for approval at the annual meeting to be held on June 7, 2013 a cash dividend in the amount of $1.80 per share (subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting) payable in quarterly installments.
Non-GAAP Measures
Pro forma net income (earnings) per share
Management believes that net income per share before the impact of foreign currency translation gain or loss and income tax benefits due to completion of tax audits and/or expiration of statutes is an important measure. The majority of the Company’s consolidated foreign currency gain or a loss result from transactions involving the Euro, the British Pound Sterling and the Taiwan Dollar and from the exchange rate impact of the significant cash and marketable securities, receivables and payables held in U.S. dollars at the end of each reporting period by the Company’s various non U.S. subsidiaries. Such gain or loss is required under GAAP because the functional currency of the subsidiaries differs from the currency in which various assets and liabilities are held. However, there is minimal cash impact from such foreign currency gain or loss. The Company’s income tax expense is periodically impacted by material reserve releases related to completion of audits and/or the expiration of statutes effecting prior periods. This is not reflective of the current effective tax rate. Accordingly, earnings per share before the impact of foreign currency translation gain or loss and income tax benefits due to completion of tax audits and/or expiration of statutes permits a consistent comparison of the Company’s operating performance between periods.
The following table contains a reconciliation of GAAP net income per share to pro forma net income per share.
| Garmin Ltd. And Subsidiaries | |||||||
| Net income per share (Pro Forma) | |||||||
| (in thousands, except per share information) | |||||||
| 13-Weeks Ended | |||||||
| March 30, | March 31, | ||||||
| 2013 | 2012 | ||||||
| Net Income (GAAP) | $ | 88,666 | $ | 86,858 | |||
| Foreign currency loss, net of adjusted tax rate | $ | 7,377 | $ | 1,735 | |||
| Income tax benefit due to completion of tax audits and/or expiration of statutes | ($16,536 | ) | - | ||||
| Net income (Pro Forma) | $ | 79,507 | $ | 88,593 | |||
| Net income per share (GAAP): | |||||||
| Basic | $ | 0.45 | $ | 0.45 | |||
| Diluted | $ | 0.45 | $ | 0.44 | |||
| Net income per share (Pro Forma): | |||||||
| Basic | $ | 0.41 | $ | 0.45 | |||
| Diluted | $ | 0.40 | $ | 0.45 | |||
| Weighted average common shares outstanding: | |||||||
| Basic | 195,630 | 194,742 | |||||
| Diluted | 196,457 | 195,673 | |||||
