Garmin Reports Second Quarter 2011 Results with Continued Strong Cash Flow Generation

Free cash flow

Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow less capital expenditures for property and equipment.

The following table contains a reconciliation of GAAP net cash provided by operating activities to free cash flow.

 
Garmin Ltd. And Subsidiaries
Free Cash Flow
(in thousands)
           
13-Weeks Ended 26-weeks Ended
June 25, June 26, June 25, June 26,
2011   2010 2011   2010
 
Net cash provided by operating activities $203,354 $181,736 $410,953 $381,867
Less: purchases of property and equipment (7,137)   (9,285) (14,315)   (13,220)
Free Cash Flow $196,217   $172,451 $396,638   $368,647
 

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