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 other one-time items is an important measure. The majority of the Company’s consolidated foreign currency gain or loss results from transactions involving the Euro, the British Pound Sterling and the Taiwan Dollar at the end of each reporting period of the significant cash and marketable securities, receivables and payables held in U.S. dollars by the Company’s various 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. Accordingly, earnings per share before the impact of foreign currency translation gain or loss allow an assessment of the Company’s operating performance before the non-cash impact of the position of the U.S. Dollar versus other currencies, which permits a consistent comparison of results between periods. The 2008 gain on sale of TeleAtlas N.V. shares is also excluded below as a one-time item.
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)
|December 26,||December 27,||December 26,||December 27,|
|Net Income (GAAP)||$||278,408||$||157,733||$||703,950||$||732,848|
|Foreign currency (gain) / loss, net of tax effects||$||10,022||$||30,956||$||5,258||$||28,281|
|Gain on sale of equity securities, net of tax effects||-||-||-||($40,783||)|
|Net income (Pro Forma)||$||288,430||$||188,689||$||709,208||$||720,346|
|Net income per share (GAAP):|
|Net income per share (Pro Forma):|
|Weighted average common shares outstanding:|
|Note: Tax effects are based on respective periods' effective tax rate.|