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 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. 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 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||52-weeks Ended|
|December 25,||December 26,||December 25,||December 26,|
|Net Income (GAAP)||$||132,907||$||278,408||$||584,603||$||703,950|
|Foreign currency (gain) / loss, net of normalized tax effects||$||28,687||$||10,022||$||74,383||$||5,258|
|One-time tax adjustment||-||-||($98,737||)||-|
|Net income (Pro Forma)||$||161,594||$||288,430||$||560,249||$||709,208|
|Net income per share (GAAP):|
|Net income per share (Pro Forma):|
|Weighted average common shares outstanding:|