Garmin Ltd. is a leading worldwide provider of wireless devices and applications designed for active lifestyles, many of which feature Global Positioning System (GPS) navigation **[0000950170-24-017559_grmn-20231230.htm:3]** **[0000950170-24-088230_grmn-20240629.htm:16]** **[0000950170-24-017559_grmn-20231230.htm:48]**. The company operates in five primary segments: fitness, outdoor, aviation, marine, and auto OEM, offering GPS-enabled devices and other navigation, communication, sensor-based, and information products **[0000950170-24-088230_grmn-20240629.htm:16]** **[0000950170-24-017559_grmn-20231230.htm:13]**. These products are sold through various indirect distribution channels, including independent retailers, dealers, distributors, and OEMs, as well as directly through their online webshop and retail stores **[0000950170-24-088230_grmn-20240629.htm:16]** **[0000950170-24-017559_grmn-20231230.htm:13]**.

1. **Fitness** - Offers advanced wearables and devices designed to enhance personal fitness and health tracking, experiencing significant growth due to strong demand **[0000950170-24-050880_grmn-ex99_1.htm:0]**.
2. **Auto OEM** - Provides automotive solutions, including integrated navigation and infotainment systems, reflecting substantial demand in the automotive sector **[0000950170-24-050880_grmn-ex99_1.htm:0]**.
3. **Marine** - Delivers navigation and communication devices for marine environments, supporting activities such as boating and fishing, with notable growth in demand **[0000950170-24-050880_grmn-ex99_1.htm:0]**.
4. **Aviation** - Supplies navigation, communication, and information systems for the aviation industry, contributing to modest growth **[0000950170-24-050880_grmn-ex99_1.htm:0]**.
5. **Outdoor** - Produces devices and applications for outdoor activities, such as hiking and camping, although experiencing a slight decrease in revenue **[GRMN_3374232_1]**.

cd500043329f1f971f3aba64760f4cbc8b3b5eb320ccc35abece84f924fa4e4f

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

30f3c49f6001c09d032a850c651134df6f4596211e5a7c27e3c56d44c2200e1d

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

SG&A [USD, Thousands]

R&D [USD, Thousands]

D&A [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

abc3f745020ed0aca3bf424b85fc2e8322922ef3e4c4cf3f108a544b9674686d

7ab752b7815ca67ccd8cd4f7d5e511dd9bdaf92d743c4f49763b4f103dc95cee

| Geographical Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Americas (USD million)** | N/A     | **611.7**  **[0000950170-23-016875_grmn-ex99_1.htm:5]**  | **641.8**  **[0000950170-23-036762_grmn-20230701.htm:14]**  | **628.157**  **[0000950170-23-057115_grmn-20230930.htm:15]**  | **732.6**  **[GRMN_3374232_4]** **[0000950170-24-017560_grmn-ex99_1.htm:7]**  | **716.1**  **[GRMN_3381821_3]** **[0000950170-24-050880_grmn-ex99_1.htm:5]**  | **740.6**  **[0000950170-24-088230_grmn-20240629.htm:15]**  | **724.6**  **[0000950170-24-118582_grmn-20240928.htm:15]**  |
| **EMEA (USD million)**     | N/A     | **355.9**  **[0000950170-23-016875_grmn-ex99_1.htm:5]**  | **457.6**  **[0000950170-23-036762_grmn-20230701.htm:14]**  | **439.123**  **[0000950170-23-057115_grmn-20230930.htm:15]**  | **523.4**  **[GRMN_3374232_4]** **[0000950170-24-017560_grmn-ex99_1.htm:7]**  | **463.4**  **[GRMN_3381821_3]** **[0000950170-24-050880_grmn-ex99_1.htm:5]**  | **542.0**  **[0000950170-24-088230_grmn-20240629.htm:15]**  | **612.7**  **[0000950170-24-118582_grmn-20240928.htm:15]**  |
| **APAC (USD million)**     | N/A     | **179.9**  **[0000950170-23-016875_grmn-ex99_1.htm:5]**  | **221.4**  **[0000950170-23-036762_grmn-20230701.htm:14]**  | **210.251**  **[0000950170-23-057115_grmn-20230930.htm:15]**  | **226.4**  **[GRMN_3374232_4]** **[0000950170-24-017560_grmn-ex99_1.htm:7]**  | **202.1**  **[GRMN_3381821_3]** **[0000950170-24-050880_grmn-ex99_1.htm:5]**  | **224.1**  **[0000950170-24-088230_grmn-20240629.htm:15]**  | **248.8**  **[0000950170-24-118582_grmn-20240928.htm:15]**  |

44b932d0a1d71fc5698f2fe879660f0003d30112765f185789b754edf0bb6c2e

| Segment/Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Fitness** ($ million) | **336.6**  **[0000950170-23-003567_grmn-ex99_1.htm:0]**  | **244.7**  **[0000950170-23-016875_grmn-ex99_1.htm:0]**  | **334.9**  **[GRMN_3301723_0]**  | **352.976**  **[GRMN_3363250_1]**  | **412.1**  **[0000950170-24-017560_grmn-ex99_1.htm:1]**  | **342.9**  **[0000950170-24-050880_grmn-ex99_1.htm:0]** **[0000950170-24-050879_grmn-20240330.htm:15]**  | **428.4**  **[GRMN_3395297_1]**  | **463.9**  **[0000950170-24-118579_grmn-ex99_1.htm:0]**  |
| **Outdoor** ($ million) | **388.3**  **[0000950170-23-003567_grmn-ex99_1.htm:0]**  | **328.7**  **[0000950170-23-016875_grmn-ex99_1.htm:0]**  | **448.1**  **[GRMN_3301723_0]**  | **433.997**  **[GRMN_3363250_1]**  | **486.4**  **[0000950170-24-017560_grmn-ex99_1.htm:1]**  | **366.2**  **[0000950170-24-050880_grmn-ex99_1.htm:0]** **[0000950170-24-050879_grmn-20240330.htm:15]**  | **439.9**  **[GRMN_3395297_1]**  | **526.6**  **[0000950170-24-118579_grmn-ex99_1.htm:0]**  |
| **Aviation** ($ million) | **225.3**  **[0000950170-23-003567_grmn-ex99_1.htm:0]**  | **213.6**  **[0000950170-23-016875_grmn-ex99_1.htm:0]**  | **217.5**  **[GRMN_3301723_0]**  | **198.160**  **[GRMN_3363250_1]**  | **217.1**  **[0000950170-24-017560_grmn-ex99_1.htm:1]**  | **216.9**  **[0000950170-24-050880_grmn-ex99_1.htm:0]** **[0000950170-24-050879_grmn-20240330.htm:15]**  | **218.3**  **[GRMN_3395297_1]**  | **204.6**  **[0000950170-24-118579_grmn-ex99_1.htm:0]**  |
| **Marine** ($ million) | **210.6**  **[0000950170-23-003567_grmn-ex99_1.htm:0]**  | **279.0**  **[0000950170-23-016875_grmn-ex99_1.htm:0]**  | **215.8**  **[GRMN_3301723_0]**  | **182.248**  **[GRMN_3363250_1]**  | **239.9**  **[0000950170-24-017560_grmn-ex99_1.htm:1]**  | **326.7**  **[0000950170-24-050880_grmn-ex99_1.htm:0]** **[0000950170-24-050879_grmn-20240330.htm:15]**  | **273.0**  **[GRMN_3395297_1]**  | **222.2**  **[0000950170-24-118579_grmn-ex99_1.htm:0]**  |
| **Auto OEM** ($ million) | **145.7**  **[0000950170-23-003567_grmn-ex99_1.htm:0]**  | **81.5**  **[0000950170-23-016875_grmn-ex99_1.htm:0]**  | **104.6**  **[GRMN_3301723_0]**  | **110.150**  **[GRMN_3363250_1]**  | **127.0**  **[0000950170-24-017560_grmn-ex99_1.htm:1]**  | **129.0**  **[0000950170-24-050880_grmn-ex99_1.htm:0]** **[0000950170-24-050879_grmn-20240330.htm:15]**  | **147.2**  **[GRMN_3395297_1]**  | **168.7**  **[0000950170-24-118579_grmn-ex99_1.htm:0]**  |

910b4f2a62ac87bc2cd1dfdda756f0c2033bb4f6c1b636b75147de4d795551c1

1. Given the significant increase in inventory levels to $1.5 billion ahead of the holiday season, how confident are you that demand will match your expectations, and what measures are in place to mitigate risks if sell-through does not meet projections?

2. Your Fitness and Outdoor segments have posted unprecedented gross and operating margins this quarter; excluding the impact of cost reductions, how sustainable are these elevated margins as new product launches taper off?

3. Considering the current softness in the auto industry, do you still anticipate achieving your previously stated $800 million Auto OEM revenue target by 2025, or should we expect revisions to this goal?

4. With the dashcam market being highly mature, what strategies do you have to drive significant growth in this segment, and how do you plan to differentiate your products in an increasingly commoditized market?

5. As you gain market share in the marine segment, capturing additional share becomes more challenging; in a stable market environment, how do you plan to continue driving growth and outperforming your competitors?

ec633191bc3cf465927168221a4b398b595ebd3508ed0e4d91f5a66051fd967d

Americas

EMEA

APAC

Total Revenue

d396755bca0402e2d045e1b58739389333194d9b2663161b01dee032ca242bcb

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Revenue**: Approximately **$6.12 billion**  **[GRMN_3404661_4]** .
  - **Gross Margin**: Approximately **58.5%**  **[GRMN_3404661_4]** .
  - **Operating Margin**: Approximately **24%**  **[GRMN_3404661_4]** .
  - **Pro Forma Effective Tax Rate**: **16.5%**  **[GRMN_3404661_4]** .
  - **Pro Forma Earnings Per Share (EPS)**: Approximately **$6.85**  **[GRMN_3404661_4]** .
  - **Free Cash Flow**: Approximately **$1.1 billion**  **[GRMN_3404661_4]** .
  - **Capital Expenditures**: Approximately **$250 million**  **[GRMN_3404661_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Revenue**: Approximately **$5.95 billion**  **[GRMN_3395297_3]** .
  - **Gross Margin**: Approximately **57%**  **[GRMN_3395297_3]** .
  - **Operating Margin**: Approximately **21.3%**  **[GRMN_3395297_3]** .
  - **Pro Forma Effective Tax Rate**: **16%**  **[GRMN_3395297_3]** .
  - **Pro Forma Earnings Per Share (EPS)**: Approximately **$6**  **[GRMN_3395297_3]** .
  - **Free Cash Flow**: Approximately **$900 million**  **[GRMN_3395297_3]** .
  - **Capital Expenditures**: Approximately **$350 million**  **[GRMN_3395297_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**: Garmin did not update their guidance in Q1 2024. They mentioned that they are not updating the revenue guidance since it is early in the year and did not provide specific guidance for free cash flow or capital expenditures  **[GRMN_3381821_7]** **[GRMN_3381821_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Revenue**: Approximately **$5.75 billion**  **[GRMN_3374232_5]** .
  - **Gross Margin**: Approximately **56.5%**  **[GRMN_3374232_5]** .
  - **Operating Margin**: Approximately **20%**  **[GRMN_3374232_5]** .
  - **Pro Forma Effective Tax Rate**: **15.5%**  **[GRMN_3374232_5]** .
  - **Pro Forma Earnings Per Share (EPS)**: Approximately **$5.40**  **[GRMN_3374232_5]** .
  - **Free Cash Flow**: Approximately **$750 million**  **[GRMN_3374232_4]** .
  - **Capital Expenditures**: Approximately **$375 million**  **[GRMN_3374232_4]** .
  - **Dividend**: Proposal for an annual dividend of **$3 per share**  **[GRMN_3374232_4]** .

233b49d95a65329b5e4b249e1fef9fcadc994b25a16fad0fe66dd678894617f8

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

**Annual guidance for FY 2024:**
- **Revenue**: $6.12 billion  **[GRMN_3404661_4]**  (raised from $5.95 billion  **[GRMN_3395297_3]** )  
- **Gross Margin**: 58.5%  **[GRMN_3404661_4]**  (raised from 57%  **[GRMN_3395297_3]** )  
- **Operating Margin**: 24%  **[GRMN_3404661_4]**  (raised from 21.3%  **[GRMN_3395297_3]** )  
- **Pro Forma Effective Tax Rate**: 16.5%  **[GRMN_3404661_4]**  (raised from 16%  **[GRMN_3395297_3]** )  
- **Pro Forma Earnings Per Share (EPS)**: $6.85  **[GRMN_3404661_4]**  (raised from $6  **[GRMN_3395297_3]** )  
- **Free Cash Flow**: $1.1 billion  **[GRMN_3404661_4]**  (raised from $900 million  **[GRMN_3395297_3]** )  
- **Capital Expenditures**: $250 million  **[GRMN_3404661_4]**  (lowered from $350 million  **[GRMN_3395297_3]** )  

2431d8ef5fe41c7d2930b77c099a912e86791c62b31eed7a2a5ab122226aefaa

- Apple: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Bryton: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Coros: Competitor for fitness and outdoor products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Elite: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Fitbit (Google): Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Huawei: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Polar: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Samsung: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- SRAM: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Suunto: Competitor for fitness and outdoor products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Wahoo Fitness: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Whoop: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Xiaomi: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Zepp Health: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Zwift: Competitor for fitness products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Casio: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Dogtra: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Globalstar: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Rand McNally: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Shearwater Research: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- SportDOG: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- TAG Heuer: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Tissot: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- TomTom: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Trackman: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Vista Outdoor: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Zoleo: Competitor for outdoor product lines  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Aspen Avionics: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Avidyne: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Dynon Avionics: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- ForeFlight: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Genesys Aerosystems: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Honeywell Aerospace & Defense: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Innovative Solutions and Support Inc.: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Jeppesen (Boeing): Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- L-3 Avionics Systems: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Collins Aerospace (Raytheon): Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Safran: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Thales: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Universal Avionics Systems Corporation: Competitor for avionics  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Furuno: Competitor for marine products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Johnson Outdoors: Competitor for marine products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Navico (Brunswick): Competitor for marine products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Raymarine (Teledyne): Competitor for marine products  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Alpine Electronics: Competitor for auto OEM infotainment solutions  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Aptiv: Competitor for auto OEM infotainment solutions  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Bosch: Competitor for auto OEM infotainment solutions  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Continental: Competitor for auto OEM infotainment solutions  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Harman (Samsung): Competitor for auto OEM infotainment solutions  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Panasonic: Competitor for auto OEM infotainment solutions  **[0000950170-24-017559_grmn-20231230.htm:13]** 
- Visteon: Competitor for auto OEM infotainment solutions  **[0000950170-24-017559_grmn-20231230.htm:13]** 

127396b28abdc9bd221e1d7a8b60c4d237db932ebef260a74a79a47ed1d2e44c

| Name               | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|--------------------|-----------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Dr. Min Kao        | Executive Chairman                            | January 2013       | Dr. Min H. Kao is the Executive Chairman of Garmin Ltd. He co-founded Garmin and has been involved since its inception. He previously served as Chairman and CEO  **[0000950170-24-017559_grmn-20231230.htm:43]** **[0001308179-24-000479_lgrmn2024_pre14a.htm:17]** **[0001308179-24-000568_lgrmn2024_def14a.htm:18]** .                                |
| Clifton A. Pemble  | President and Chief Executive Officer         | January 2013       | Clifton A. Pemble has been President and CEO since January 2013. He joined Garmin in October 1989 as a Software Engineer and has held various positions, including President and COO  **[0000950170-24-017559_grmn-20231230.htm:43]** **[0001308179-24-000568_lgrmn2024_def14a.htm:19]** .               |
| Douglas G. Boessen | Chief Financial Officer and Treasurer         | July 2014          | Douglas G. Boessen has served as CFO and Treasurer since July 2014. He also serves as a director and officer of various Garmin subsidiaries  **[0000950170-24-017559_grmn-20231230.htm:43]** .                                                          |
| Andrew R. Etkind   | Vice President, General Counsel and Secretary | June 2009          | Andrew R. Etkind has served as Vice President, General Counsel, and Secretary since June 2009. He joined Garmin in February 1998 as General Counsel of Garmin International, Inc.  **[0000950170-24-017559_grmn-20231230.htm:43]** **[0000950170-23-003566_grmn-20221231.htm:42]** .                 |
| Patrick Desbois    | Executive Vice President, Operations          | February 2017      | Patrick Desbois has served as Executive Vice President, Operations since February 2017. He joined Garmin in November 2011 as Vice President, Executive Office  **[0000950170-24-017559_grmn-20231230.htm:43]** .                                        |
| Philip Straub      | Executive Vice President, Managing Director – Aviation | February 2017 | Philip Straub has served as Executive Vice President, Managing Director - Aviation since February 2017. He joined Garmin in July 1993 as a Software Engineer  **[0000950170-24-017559_grmn-20231230.htm:43]** .                                         |
| Danny Bartel       | Vice President, Worldwide Sales               | October 2006       | Danny Bartel has served as Vice President, Worldwide Sales since October 2006. He joined Garmin in November 1992 as a Sales Manager  **[0000950170-24-017559_grmn-20231230.htm:43]** .                                                                  |
| Sean Biddlecombe   | Managing Director, EMEA                       | February 2011      | Sean Biddlecombe has served as Managing Director, EMEA since February 2011. He joined Garmin in February 1994 as General Manager of Garmin (Europe) Ltd.  **[0000950170-24-017559_grmn-20231230.htm:43]** .                                             |
| Susan Lyman        | Vice President, Global Consumer Marketing     | June 2016          | Susan Lyman has served as Vice President, Global Consumer Marketing since June 2016. She rejoined Garmin in 2010 and has held various marketing positions  **[0000950170-24-017559_grmn-20231230.htm:43]** .                                            |
| Laurie Minard      | Vice President, Human Resources               | July 2007          | Laurie Minard has served as Vice President, Human Resources since July 2007. She joined Garmin in March 1996  **[0000950170-24-017559_grmn-20231230.htm:44]** .                                                                                         |
| Matthew Munn       | Vice President, Managing Director – Auto OEM  | May 2011           | Matthew Munn has served as Vice President, Managing Director – Auto OEM since May 2011  **[0000950170-24-017559_grmn-20231230.htm:44]** .                                                                                                              |
| Wang Cheng-Wei     | General Manager of Garmin Corporation         | April 2019         | Wang Cheng-Wei has served as General Manager of Garmin Corporation since April 2019. He joined Garmin in July 1992  **[0000950170-24-017559_grmn-20231230.htm:44]** .                                                                                   |
| Brad Trenkle       | Co-Chief Operating Officer                    | July 1, 2024       | Bradley C. Trenkle serves as Co-Chief Operating Officer. He filed an initial statement of beneficial ownership of securities on July 1, 2024, indicating his role as Co-COO at that time  **[0000950170-24-080043_xslF345X02/ownership.xml:0]** .              |

750f7a0377f4fcd0efeaecc5238f3e010b86a46d0227613808a1d170323859a4

Fitness

Outdoor

Aviation

Marine

Auto OEM

Auto

- Auto OEM

- Consumer Auto

5ee289135143913b75b2882b0e24bb25e74f144da5a9c63c0195122846ad0d03

| Program Details          | Program 1       | Program 2       |
|--------------------------|-----------------|-----------------|
| Approval Date            | April 22, 2022  **[0000950170-24-118582_grmn-20240928.htm:14]**  | February 16, 2024  **[0000950170-24-118582_grmn-20240928.htm:14]**  |
| End Date/Duration        | December 29, 2023  **[0000950170-24-118582_grmn-20240928.htm:14]**  | December 26, 2026  **[0000950170-24-118582_grmn-20240928.htm:14]**  |
| Total additional amount  | $300,000  **[0000950170-24-118582_grmn-20240928.htm:14]**     | $300,000  **[0000950170-24-118582_grmn-20240928.htm:14]**     |
| Remaining authorization amount | $0  **[0000950170-24-118582_grmn-20240928.htm:14]**          | **$270,198**  **[0000950170-24-118582_grmn-20240928.htm:14]**  |
| Details                  | Entire amount used  **[0000950170-24-118582_grmn-20240928.htm:14]**  | Program ongoing, flexible repurchase  **[0000950170-24-118582_grmn-20240928.htm:14]**  |

8fcec662b289bf60a29ecc61fc022eceecb9d11794baef9b2fda7e73d562c166

| Name               | Start Date       | End Date | Reason for Change                                                                 |
|--------------------|------------------|----------|-----------------------------------------------------------------------------------|
| Ernst & Young LLP  | N/A              | Present  | Current auditor.                                                                  |
| RubinBrown LLP     | October 27, 2014  **[0001144204-14-063970_v392453_8k.htm:1]**  | N/A      | N/A                                                                               |
| Mayer Hoffman McCann P.C. | N/A              | July 21, 2014  **[0001144204-14-044890_v384737_8k.htm:1]**  | The dismissal was approved by Garmin Ltd.'s audit committee. No disagreements or reportable events were noted during their tenure.  **[0001144204-14-044890_v384737_8k.htm:1]**  |

a76de83a93785d17636f03cc075dac3da21ca6b81d4de3cc837e811382141484

f8769f3587d5a85108a9d08faf51b40cb71dc60f597a25e9c54afe7f76ee1303

- Total Revenue: $1,586.0 million (+24% YoY)  **[0000950170-24-118582_grmn-20240928.htm:17]**   
- Automotive OEM: $168.7 million (+**53%** YoY)  **[0000950170-24-118582_grmn-20240928.htm:17]**   
- Fitness: $463.9 million (+31% YoY)  **[0000950170-24-118582_grmn-20240928.htm:17]**   
- Outdoor: $526.6 million (+21% YoY)  **[0000950170-24-118582_grmn-20240928.htm:17]**   
- Marine: $222.2 million (+22% YoY)  **[0000950170-24-118582_grmn-20240928.htm:17]**   
- EMEA: $612.658 million (+**40%** YoY)  **[0000950170-24-118582_grmn-20240928.htm:15]**   
- Operating Income: $437.476 million (+**62%** YoY)  **[0000950170-24-118582_grmn-20240928.htm:1]**   
- Net Income: $399.112 million (+55% YoY)  **[0000950170-24-118582_grmn-20240928.htm:1]**   
- EPS (Diluted): $2.07 (+53% YoY)  **[0000950170-24-118582_grmn-20240928.htm:1]**   

f51055a46a01fa67b82b3492e6f49a28704ae249fe0143a65102534c27f703b2

2c7503f3f019d812659d2868d4dd6b4980b78790f0fac47cf56d94d86bde96c7

603aceeddd7d157ecbeda91eebf4a5a0f40e77b2b5508ffd7ccf4c3767b4a4cc

61422a72d51837808d11f4162ccc51e511af995d0cb5c9fc25f3f1efbef7af12

Total unit sales (units)

e60a354acc9156e8d84e19b9db5773db2a19069eb24d92404797d746cb383a3b

1. **Sustainability of High Margins**  
   **Q:** Can you sustain current high margins in Fitness and Outdoor?  
   **A:** Management acknowledges that sustaining these unusually high margins is challenging but emphasizes focusing on creating unique products with premium pricing to maintain them going forward.  **[GRMN_3404661_8]** 

2. **Guidance Confidence into Q4**  
   **Q:** What gives you more confidence in Q4 guidance now?  
   **A:** As the year progresses, Garmin gains more confidence due to better visibility into retailer plans, which materialize in Q2 or Q3, allowing for a more complete picture and confidence in the fourth quarter.  **[GRMN_3404661_12]** 

3. **Auto OEM Market Outlook**  
   **Q:** Does OEM softness impact the $800 million 2025 target?  
   **A:** Trends in the car industry are softer, and Garmin isn't ready to comment but will provide an update in its 2025 outlook. Some programs roll out beyond 2025 and may improve as the economy evolves with lower interest rates.  **[GRMN_3404661_9]** 

4. **Inventory and Sell-Through Dynamics**  
   **Q:** Why has inventory increased, and how is sell-through vs. sell-in?  
   **A:** Inventory increased to prepare for higher Q4 sales; Garmin's inventory is not related to channel inventory. Sell-through is strong with very strong registration rates for new and existing products like **fenix 8**, **400**, **265**, **965**, **Vivoactive**, and **Venu** series.  **[GRMN_3404661_15]** 

5. **Wearables Growth Drivers**  
   **Q:** What are the drivers within wearables and recent launches?  
   **A:** Garmin's diverse products resonate with customers' lifestyles, leading to success across the market. The majority of users are new to Garmin, indicating growth in the installed base. The **fenix 8** series was well received, and demand continues as it rolls out across retail channels.  **[GRMN_3404661_5]** 

6. **Marine Market Share Gains**  
   **Q:** What underpins confidence in marine market share gains?  
   **A:** The marine market is stable, and as the economy and interest rates improve, boat purchases may increase. Garmin is thrilled with market share gains, especially with new categories like trolling motors, but acknowledges that gaining more share becomes harder as share grows.  **[GRMN_3404661_15]** 

7. **Lumishore Business Impact**  
   **Q:** How significant is the Lumishore acquisition?  
   **A:** Lumishore and marine lighting are incremental to the Marine segment, important as another component boat owners want, integrating with Garmin's chartplotter systems.  **[GRMN_3404661_14]** 

8. **Uptake of Paid Apps and Subscriptions**  
   **Q:** What uptake are you seeing with paid apps and subscriptions?  
   **A:** Paid apps are incremental, bringing value to customers and enhancing revenue and margins. The expanded **inReach** offers higher bandwidth messaging, which is completely incremental, though early with few results to share. The **messenger** product is new and starting to roll out to customers.  **[GRMN_3404661_10]** 

9. **New Dash Cams Reception**  
   **Q:** What reception have new dash cams received?  
   **A:** Despite a mature market, the new dash cams were well received. Garmin focuses on superior functionality, quality optics, and broad use cases from daytime to nighttime, leading to favorable market response.  **[GRMN_3404661_11]** 

10. **Impact of Textron Strike on Aero**  
    **Q:** Has Textron's strike impacted the aero segment?  
    **A:** The strike had small near-term effects as Textron couldn't deliver planned aircraft, but they are working hard to return to normal. No long-term effects are anticipated.  **[GRMN_3404661_12]** 

11. **Product Costs and Gross Margins**  
    **Q:** What's driving stronger gross margins from lower product costs?  
    **A:** Benefits come from lower material costs due to scale, favorable currency movements with the Taiwan dollar, and efficiencies in factory operations from increased scale.  **[GRMN_3404661_6]** 

12. **Retailer Inventory for Holidays**  
    **Q:** How are retailers' inventory commitments for holidays?  
    **A:** Retailers are eager to take in Garmin's products and are planning promotions. The retail channel appears very clean, especially with transitions like the **fenix 8**, positioning Garmin well for the holidays.  **[GRMN_3404661_7]** 

13. **Auto OEM Margin Outlook**  
    **Q:** Does OEM softness affect Auto OEM margin outlook?  
    **A:** Gross margin likely remains in the **high teens to 20%** range, though product mix could affect it. Lower sales may impact the ability to cover expenses due to lower sales volume, driven by the automakers' outlook.  **[GRMN_3404661_15]** 

6e37dedcf76413fd1bd00e541a85415509d252ed1ebbb548b53784ffd6583325

- **Garmin is experiencing economic challenges in key Asian markets, particularly China, where performance has been only "okay" due to the challenging economic situation; in India, the market is small, and efforts to reset their approach are just beginning.**  **[GRMN_3374232_18]**
- **Garmin's fastest-growing segment, the Auto OEM business, is also its lowest gross margin segment, which may lead to overall margin compression as this segment grows larger; this shift could impact the company's profitability.**  **[GRMN_3374232_12]**
- **The marine market declined by approximately 10% in 2023, and Garmin acknowledges continued softness in the market; although they expect to outperform competitors, reliance on a declining market could present risks to growth.**  **[GRMN_3374232_14]**

b2ce132801b110403e64438d76578621393b4305afd0b21aef6d8e6012f47412

- **Future growth may slow due to tougher year-over-year comparisons**, as the company acknowledges that **Q1 was probably the most easy comp**, and is now anniversarying some of the strong product releases from last year.  **[GRMN_3381821_4]**
- **Auto OEM segment operates at lower margins**, with expectations of **gross margin in the high teens and operating margin in the mid-single digits**, potentially pressuring overall margins as the segment grows.  **[GRMN_3381821_9]**
- **Company expects inventory to increase by the end of the year**, which could lead to higher inventory levels if sales do not keep up, potentially impacting cash flow and margins.  **[GRMN_3381821_6]**

1e5cfebf328fe3e844c14e9bb0dcb2bd2b9ff26aa3c562f1396a042d8740e28a

- **Garmin's Fitness segment is showing remarkable performance, with success across the range of products from high-end to low-end, driven by both new customers and existing customers upgrading every 2 to 3 years**. This indicates sustained demand for their innovative wearables and contributes to share gains in a stable but huge market.  **[GRMN_3395297_14]** ,  **[GRMN_3395297_19]**
- **Garmin is outperforming the market in the Marine segment, gaining market share through innovative and broad product offerings, including chartplotters, sonar systems, radar, autopilots, and trolling motors**, leading to strong organic revenue growth of **up 7% excluding acquisitions**, which is better than overall market trends.  **[GRMN_3395297_5]** ,  **[GRMN_3395297_12]**
- **Garmin's products are resilient to consumer spending weakness, with customers appreciating their premium offerings, leading to strong demand even in potentially challenging markets**, and growth is driven by new customers entering their ecosystem.  **[GRMN_3395297_19]** ,  **[GRMN_3395297_14]**

8629e88f8efde72dfac5920ba9773ba9b8bcc16e4ec8e215e6487734f150da4f

1. **Gross Margin Improvement**  
   **Q:** What's driving gross margin improvement in Outdoor and Fitness?  
   **A:** Gross margins in both Fitness and Outdoor segments improved year-over-year due to a favorable product mix, with newer products carrying higher margins. Additionally, lower freight costs and reduced component and production costs contributed to the margin expansion.  **[GRMN_3381821_8]** 

2. **Inventory Levels and Outlook**  
   **Q:** What's your outlook on inventory levels for the year?  
   **A:** Inventory levels decreased year-over-year due to strong sales. By year-end, we expect inventories to increase in line with sales to ensure we meet demand. Channel inventories are healthy, with retailers buying based on customer demand rather than building up stock.  **[GRMN_3381821_6]** **[GRMN_3381821_12]** 

3. **Revenue Seasonality and Guidance**  
   **Q:** Any updates on revenue seasonality and guidance?  
   **A:** We're not updating guidance at this time. Q1 benefited from easier year-over-year comparisons and timing of new product releases. The rest of the year will reflect anniversaries of last year's product launches and the timing of new introductions this year, which may affect quarterly seasonality.  **[GRMN_3381821_4]** **[GRMN_3381821_7]** **[GRMN_3381821_10]** 

4. **Cash Allocation and Share Buybacks**  
   **Q:** Why not use cash for buybacks or investments?  
   **A:** Our cash priorities remain consistent: reliable dividends, investing in business growth, strategic acquisitions like JL Audio, and share repurchases subject to market conditions. We were in a blackout period for most of Q1, limiting buybacks.  **[GRMN_3381821_11]** 

5. **Consumer Demand and Product Mix**  
   **Q:** Are you seeing consumers trading down due to confidence?  
   **A:** We haven't observed significant evidence of consumers mixing down. Our innovative, high-end products continue to see strong demand, with customers less affected by broad economic sentiment. Sales are driven by needs rather than price sensitivity.   

6. **Auto Segment Margin Trajectory**  
   **Q:** What's the margin outlook for the Auto segment?  
   **A:** We expect the Auto segment's gross margin to settle in the high teens and operating margin in the mid-single digits, typical for the industry. As we shift towards domain controllers and scale up, margins will adjust accordingly. Significant new business volumes are contributing to revenue growth.  **[GRMN_3381821_9]** 

7. **Marine Segment and JL Audio Acquisition**  
   **Q:** How is JL Audio performing post-acquisition?  
   **A:** JL Audio's performance is in line with expectations, contributing about **15%** of total marine revenue for the year. The marine market has stabilized, and despite some industry concerns about boat inventories, we've not been significantly impacted.  **[GRMN_3381821_17]** 

8. **Growth Driven by Units vs. Pricing**  
   **Q:** Is growth driven by unit volumes or pricing?  
   **A:** Growth is mostly driven by higher unit volumes across our segments, rather than price increases.  **[GRMN_3381821_14]** 

9. **European and Asian Market Performance**  
   **Q:** Do you expect strong growth in Europe and Asia to continue?  
   **A:** Europe's growth benefits from higher Auto OEM volumes, especially domain controllers. Wearable products also perform well there. Asia experiences both tailwinds from Auto OEM and headwinds from currency issues. Overall, various factors influence these markets, making it hard to draw a single conclusion.  **[GRMN_3381821_16]** 

c5abc1465156718d9665107bed966a005f15cfea36a318bc57f311819cf8f985

1. **Guidance and Margin Outlook**  
   **Q:** What's driving lower margins in H2?  **[GRMN_3395297_4]**   
   **A:** Management expects gross margins to decrease in the second half due to **segment mix impacts**, which will reduce gross margin. They will also continue **investing in R&D** to support innovation, affecting expenses.  **[GRMN_3395297_4]** 

2. **Guidance Increase Factors**  
   **Q:** Is guidance raise due to H1 performance or sustained trends?  **[GRMN_3395297_6]**   
   **A:** The guidance increase reflects both strong first-half results and some sustained optimism into the second half, particularly in **Fitness**, where performance is encouraging. In **Marine**, they are cautious as the market stabilizes, while other segments align with prior expectations.  **[GRMN_3395297_6]** 

3. **Free Cash Flow Outlook**  
   **Q:** Why is H2 free cash flow expected to be weaker?  **[GRMN_3395297_7]**   
   **A:** Working capital needs, especially **inventory investment**, will use cash in the second half. Unlike last year, when inventory reductions benefited cash flow, this year they expect to **increase inventory**, impacting free cash flow seasonality.  **[GRMN_3395297_7]** 

4. **Capital Allocation and CapEx**  
   **Q:** How are you approaching capital allocation and CapEx?  **[GRMN_3395297_8]**   
   **A:** Priorities remain reliable **dividends**, business investment through **CapEx**, acquisitions like **JL Audio**, and **share buybacks** depending on market conditions. Elevated CapEx in H2 will fund **manufacturing facilities**, **IT security enhancements**, and **facility renovations** in Kansas.  **[GRMN_3395297_8]** 

5. **Auto OEM Margins**  
   **Q:** Will scale improve Auto OEM margins over time?  **[GRMN_3395297_10]**   
   **A:** The shift to **domain controller products** with **mid-teens gross margins** has impacted overall margins. Although expenses have decreased and losses narrowed, allocated costs affect margins. They expect **efficiency gains** and leverage as volumes increase, but current margins reflect the nature of the products.  **[GRMN_3395297_10]** 

6. **Fitness Segment Performance**  
   **Q:** What drives the strong results in Fitness?  **[GRMN_3395297_14]**   
   **A:** Strong year-to-date performance is credited to a robust product line, including popular models like **Forerunner 965**, **265**, **vivoactive 5**, and **Venu 3** series. Success spans from high-end to low-end products. The market is stable, and **share gains** are driving growth. **Refresh cycles** every 2–3 years among existing customers also contribute.  **[GRMN_3395297_14]** 

7. **Consumer Spending Trends**  
   **Q:** Are you seeing any impact from consumer spending weakness?  **[GRMN_3395297_19]**   
   **A:** There is no significant evidence that spending patterns for their products are impacted. They target a customer base not focused on low-end commodities but on **premium products** with clear differentiators, which customers appreciate and are willing to purchase.  **[GRMN_3395297_19]** 

8. **Marine Segment Growth Drivers**  
   **Q:** What's driving Marine outperformance and sustainability?  **[GRMN_3395297_5]**   
   **A:** The Marine segment outperforms the market due to highly **innovative and broad product lines**. Success in **chartplotters**, **mapping and sonar systems**, **radar**, **autopilots**, and expansion into **trolling motors** helps gain market share. Both aftermarket and OEM channels are performing better than the overall market.  **[GRMN_3395297_5]** 

9. **AI Opportunities**  
   **Q:** How are you leveraging AI opportunities?  **[GRMN_3395297_15]**   
   **A:** Garmin views AI as a potential business tool and is exploring its use internally and in customer-facing features. While cautious about unproven claims, they are interested in **constrained models** around customer data and trends, potentially driving future product features.  **[GRMN_3395297_15]** 

10. **Retail Inventories**  
    **Q:** What's the state of retail inventories?  **[GRMN_3395297_11]**   
    **A:** The channel is very **clean**, with sell-in matching registrations. Products are selling through consistently, indicating healthy retail conditions.  **[GRMN_3395297_11]** 

11. **Smart Rings and Product Expansion**  
    **Q:** Interested in launching smart rings?  **[GRMN_3395297_13]**   
    **A:** Garmin is open to exploring all product categories, including **smart rings**. While wearables currently offer the most utility, they recognize some customers prefer different form factors and remain open to possibilities.  **[GRMN_3395297_13]** 

12. **Auto OEM New Wins**  
    **Q:** Update on new Auto OEM infotainment wins?  **[GRMN_3395297_9]**   
    **A:** Additional awards announced last quarter are progressing, with products launching in **2026**. These remain domain controller products with **mid-teens gross margins**, consistent with the current Auto OEM revenue structure.  **[GRMN_3395297_9]** 

13. **Fitness vs. Outdoor Wearables**  
    **Q:** Why is Fitness strong but Outdoor declining?  **[GRMN_3395297_16]**   
    **A:** The decline in Outdoor wearables is due to the **pipeline fill** of **fenix** and **epix Pro** releases from last year. They anticipate growth as new product releases are introduced later this year. Fitness strength is driven by a range of popular wearable products.  **[GRMN_3395297_16]** 

14. **Marine Margins Outlook**  
    **Q:** How do you view Marine margins long-term?  **[GRMN_3395297_18]**   
    **A:** Despite a choppy industry, they expect Marine margins to remain in historically consistent ranges. The addition of **JL Audio**, while **dilutive** to margins, doesn't change the overall margin structure. The segment is expected to perform steadily as the market stabilizes.  **[GRMN_3395297_18]** 

15. **Garmin Connect User Growth**  
    **Q:** Is MAU growth from new or existing users?  **[GRMN_3395297_20]**   
    **A:** Most growth in **Garmin Connect** comes from **new customers**. There's also a healthy **secondhand market** where existing users upgrade, and new users join via used devices. Overall, it's a healthy environment with engagement from both new and existing customers.  **[GRMN_3395297_20]** 

16. **Promotional Activity**  
    **Q:** Are promotions increasing?  **[GRMN_3395297_13]**   
    **A:** Promotional activity is not materially different from typical patterns. There is a yearly cadence around retailer events, like **Prime Day**. Product mix variations can affect promotional levels, but overall, it's shaping up to be a typical year.  **[GRMN_3395297_13]** 

17. **Marine Organic Growth**  
    **Q:** What's the organic growth in Marine excluding JL Audio?  **[GRMN_3395297_12]**   
    **A:** Organic growth in the Marine segment, excluding JL Audio, was up **7%**.  **[GRMN_3395297_12]** 

18. **Sensor Technology Advancements**  
    **Q:** Are new health metrics driving upgrades?  **[GRMN_3395297_17]**   
    **A:** Garmin has been a pioneer in sensor measurements like **HRV**, which drives metrics from performance condition to sleep quality. As they invent new features, they **roll them across product lines** to expand functionality and make them available to more users.  **[GRMN_3395297_17]** 

35f06491e400e0800a9960f7ca3b5e2bcc1d03b30c59d32ebe50453165ba890d

- **Guidance for the second half of the year implies lower margins due to segment mix and continued expenses**, leading to a more muted revenue flow-through to earnings than usual.  **[GRMN_3395297_4]**
- **Free cash flow is expected to be lower in the second half**, due to working capital considerations such as inventory increases, which deviates from historical patterns.  **[GRMN_3395297_7]**
- In the **Auto OEM segment, margins are impacted by a shift towards lower-margin domain controllers**, and operational leverage is behind expectations, potentially affecting profitability.  **[GRMN_3395297_10]**

dff0230c3252bf80ec7d9b620066b5a35b0b58a5d19c85dc737a1dbca829338b

- **Softened demand and lowered guidance from customers in the Auto OEM segment may negatively impact Garmin's medium-term outlook and margin profile.**  **[GRMN_3404661_15]**
- **Lower sales volumes in the Auto OEM segment raise concerns about covering expenses, potentially affecting profitability and operating margins.**  **[GRMN_3404661_15]**
- **Softer trends in the car industry create uncertainty around Garmin's ability to achieve its $800 million Auto OEM revenue target for 2025.**  **[GRMN_3404661_9]**

ffdd4aeb3d2bf5da0b8c0f0eabeab552b76762dc2121e19b70c882aba0e2c484

- **Garmin is experiencing strong momentum in its outdoor and fitness segments**, with an incrementally more positive outlook due to their current product lineup and roadmap.  **[GRMN_3374232_9]**
- **Garmin's auto OEM business is growing significantly**, with expected revenue expansion and a target of **$800 million by 2025**. The company is leveraging its strengths and investments to achieve this growth.  **[GRMN_3374232_6]**
- **Garmin is outperforming in the marine segment despite a softer market**, gaining market share, and expects to continue outperforming in 2024, with new revenue from JL Audio expected to contribute about **15% of segment revenue**.  **[GRMN_3374232_14]**

9a383f2ffa169a205f2fbb33d30bf53254a258f8bf7d39aae12134cf23220184

- Garmin's **fitness and outdoor segments experienced strong gross margin improvements**, driven by higher sales of new, higher-margin products and lower costs.  **[GRMN_3381821_8]**
- The company secured **significant new business in the auto OEM segment**, adding substantial volume and revenue opportunities, with a **sizable amount of awarded business ahead**.  **[GRMN_3381821_9]**
- **Strong customer demand** for Garmin's **unique and highly differentiated products**, particularly in the high-end market, with the **majority of users being new customers**, indicating market expansion.  **[GRMN_3381821_17]** **[GRMN_3381821_5]**

33d38d4bacad35e2d3f6a1f95ef18c4593dde95b6804653bddfccc52e9a8f895

- **Strong Growth in Wearables with Increasing New User Base:** Garmin is experiencing growth in its installed base, with the majority of new users being new to Garmin. Recent launches like the **fenix 8 series** have been very well received, and the company continues to fill demand across all retail channels.  **[GRMN_3404661_5]** ,  **[GRMN_3404661_14]**
- **Sustainable High Margins through Unique Differentiators and Cost Efficiency:** Garmin focuses on creating products with unique differentiators that allow for premium pricing and offer things competitors don't. This strategy, along with efforts to improve design efficiency and reduce component costs, has led to unprecedented margins in the **Fitness and Outdoor** segments.  **[GRMN_3404661_8]** ,  **[GRMN_3404661_6]**
- **Successful New Product Releases Enhancing Revenue and Margins:** New offerings such as the **expanded inReach** with higher bandwidth messaging and the **new dash cams** have been received very well by the market. These products bring incremental revenue and enhance the overall revenue and margin structure.  **[GRMN_3404661_10]** ,  **[GRMN_3404661_11]**

ce6ccc35dbbcdb410ac58dcca15919c1cef9b821366d1a4ce934f57874194fe0

1. **Auto OEM Revenue and Margin Outlook**  
   **Q:** Can you overachieve on $800M auto OEM target?  
   **A:** We rely on manufacturers' forecasts, which can vary as production dates approach, so we don’t project that far out. Our auto OEM margins are expected to continue declining, targeting a **mid-20% margin range** for the segment, based on a mix of high-volume, lower-margin products and lower-volume, higher-margin speculative products.  **[GRMN_3374232_6]** 

2. **Automotive Profitability Timeline**  
   **Q:** When will automotive segment reach profitability?  
   **A:** We expect to turn profitable in the second half on a quarterly basis, exiting with **gross margins in the mid-to-upper teens** and **operating margins in the mid-single digits**. However, we don’t expect full-year profitability in 2024 but will work towards it in 2025.  **[GRMN_3374232_11]** 

3. **Capital Return Strategy**  
   **Q:** Will you front-load the new $300M buyback?  
   **A:** We completed our previous $300 million authorization, and the Board has authorized an additional **$300 million over the next 3 years**. The cadence of share repurchases will depend on market and business conditions at the time.  **[GRMN_3374232_8]** 

4. **Outdoor and Fitness Outlook**  
   **Q:** Any changes in outlook for outdoor and fitness?  
   **A:** We demonstrated good momentum in Q4 and the back half of 2023 in both outdoor and fitness. We are now incrementally more positive on these segments, considering our current product lineup and the roadmap ahead.  **[GRMN_3374232_9]** 

5. **Marine Segment Dynamics**  
   **Q:** How are marine end markets and OEM vs. aftermarket?  
   **A:** The marine market declined about **10% in 2023**, but we outperformed with market share gains. In 2024, we expect to continue outperforming the market. Aftermarket remains the larger portion, influencing us more. Any softness should be offset by new revenue from **JL Audio**, expected to be about **15% of segment revenue** for the year.  **[GRMN_3374232_15]** 

6. **Consumer Demand and Holiday Sales**  
   **Q:** How was the consumer response during holidays?  
   **A:** Consumer response was better than expected and seemed quite strong. Our sell-through was very good, driving increased production in Q3 and Q4 to meet demand.  **[GRMN_3374232_10]** 

7. **Market Share in Smart Wearables**  
   **Q:** Did competitor issues boost Garmin wearables?  
   **A:** While we're unsure if competitor issues were a major driver, our products are performing well due to their strong features, including health and wellness monitoring and activity performance. We may also be gaining market share in wearables.  **[GRMN_3374232_19]** 

8. **Aviation Aftermarket Decline**  
   **Q:** What caused lower aviation aftermarket revenue?  
   **A:** The aviation aftermarket has a narrow distribution through specialty installers. Following supply chain challenges in 2022, dealers increased inventory. In 2023, they began reducing inventory levels, which we expect to continue into 2024.  **[GRMN_3374232_12]** 

9. **Monetizing Connect App**  
   **Q:** Will you offer premium tiers for the Connect app?  
   **A:** We're exploring options to monetize our app base cautiously, respecting users' trust in our data security and privacy. Premium features could lead to premium tiers in some apps, similar to what we've done in golfing.  **[GRMN_3374232_20]** 

10. **Switzerland Tax Rate Increase**  
    **Q:** When does the tax rate change to 15.5%?  
    **A:** Switzerland passed legislation increasing the combined tax rate to **15%**, effective beginning of 2024. We've guided to a **15.5% pro forma tax rate** for the full year, reflecting this change and global minimum taxes.  **[GRMN_3374232_16]** 

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Garmin Ltd (GRMN)

Financials