# UNITED	STATES

# SECURITIES	AND	EXCHANGE	COMMISSION

x ANNUAL	REPORT	PURSUANT	TO	SECTION	13	OR	15(d)	OF	THE	SECURITIES	EXCHANGE	ACT	OF	1934

For	the	fiscal	year	ended	December	27,	2008

¨ TRANSITION	REPORT	PURSUANT	TO	SECTION	13	OR	15(d)	OF	THE	SECURITIES	EXCHANGE	ACT	OF	1934

Commission	file	number	0-31983

# GARMIN	LTD.

(Exact	name	of	registrant	as	specified	in	its	charter)

# Cayman	Islands

(State	or	other	jurisdiction of	incorporation	or	organization)

	(I.R.S.	Employer	Identification	No.)

Suite	3206B,	45	Market	Street,	Gardenia	Court

Camana	Bay,	Cayman	Islands

	(Address	of	principal	executive	offices)

# Common	Shares,	$0.005	Per	Share	Par	Value

(Title	of	each	class)

(Zip	Code)

Securities	registered	pursuant	to	Section	12(b)	of	the	Act:

# NASDAQ	Global	Select	Market

(Name	of	each	exchange	on	which	registered)

Securities	registered	pursuant	to	Section	12(g)	of	the	Act:		None

Indicate	by	check	mark	if	the	registrant	is	a	well-known	seasoned	issuer,	as	defined	in	Rule	405	of	the	Securities	Act.	YES	þ	NO	¨

Indicate	by	check	mark	if	the	registrant	is	not	required	to	file	reports	pursuant	to	Section	13	or	Section	15(d)	of	the	Act.	YES	¨			NO	þ

Indicate	by	check	mark	whether	the	registrant	(1)	has	filed	all	reports	required	to	be	filed	by	Section	13	or	15(d)	of	the	Securities	Exchange	Act	of	1934	during	the	preceding 12	months	(or	for	such	shorter	period	that	the	registrant	was	required	to	file	such	reports),	and	(2)	has	been	subject	to	such	filing	requirements	for	the	past	90	days.	YES	þ NO	¨

Indicate	by	check	mark	if	disclosure	of	delinquent	filers	pursuant	to	Item	405	of	Regulation	S-K	is	not	contained	herein,	and	will	not	be	contained,	to	the	best	of	registrant's knowledge,	in	definitive	proxy	or	information	statements	incorporated	by	reference	in	Part	III	of	this	Form	10-K	or	any	amendment	to	this	Form	10-K.	þ

Indicate	by	check	mark	whether	the	registrant	is	a	large	accelerated	filer,	an	accelerated	filer,	a	non-accelerated	filer,	or	a	smaller	reporting	company.		See	the	definitions	of "large	accelerated	filer",	"accelerated	filer"	and	"smaller	reporting	company"	in	Rule	12b-2	of	the	Exchange	Act.

Large	Accelerated	Filer		þ

Non-accelerated	Filer	¨

	Accelerated	Filer	¨

Smaller	reporting	company	¨

(Do	not	check	if	a	smaller	reporting	company)

Indicate	by	check	mark	whether	the	registrant	is	a	shell	company	(as	defined	in	Rule	12b-2	of	the	Exchange	Act).

Aggregate	market	value	of	the	common	shares	held	by	non-affiliates	of	the	registrant	as	of	June	28,	2008	(based	on	the	closing	price	of	the	registrant's	common	shares	on	the Nasdaq	Stock	Market	for	that	date)	was	$6,026,179,129.

Number	of	shares	outstanding	of	the	registrant's	common	shares	as	of	February	20,	2009:

# Documents	incorporated	by	reference:

Portions	of	the	following	document	are	incorporated	herein	by	reference	into	Part	III	of	the	Form	10-K	as	indicated:

Company's	Definitive	Proxy	Statement	for	the	2009	Annual	Meeting	of	Shareholders	which	will	be	filed	no	later	than	120	days after	December	27,	2008. Part	III

# Table	of	Contents

|  | Cautionary	Statement	With	Respect	To	Forward-Looking	Comments | 3 |
| :--- | :--- | :--- |
|  | Part\tI |  |
| Item\t1. | Business | 3 |
| Item\t1A. | Risk\tFactors | 18 |
| Item\t1B. | Unresolved\tStaff\tComments | \t28 |
| Item\t2. | Properties | 28 |
| Item\t3. | Legal\tProceedings | 29 |
| Item\t4. | Submission\tof\tMatters\tto\ta\tVote\tof\tSecurity\tHolders | 30 |
|  | Executive\tOfficers\tof\tthe\tRegistrant | 30 |
|  | Part\tII |  |
| Item\t5. | Market\tfor\tRegistrant's\tCommon\tEquity,\tRelated\tStockholder\tMatters\tand\tIssuer\tPurchases\tof\tEquity\tSecurities | 32 |
| Item\t6. | Selected\tFinancial\tData | 34 |
| Item\t7. | Management's\tDiscussion\tand\tAnalysis\tof\tFinancial\tCondition\tand\tResults\tof\tOperations | 36 |
| Item\t7A. | Quantitative\tand\tQualitative\tDisclosures\tAbout\tMarket\tRisk | 50 |
| Item\t8. | Financial\tStatements\tand\tSupplementary\tData | 52 |
| Item\t9. | Changes\tin\tand\tDisagreements\twith\tAccountants\ton\tAccounting\tand\tFinancial\tDisclosure | 78 |
| Item\t9A. | Controls\tand\tProcedures | 79 |
| Item\t9B. | Other\tInformation | 81 |
|  | Part\tIII |  |
| Item\t10. | Directors,\tExecutive\tOfficers\tand\tCorporate\tGovernance | 82 |
| Item\t11. | Executive\tCompensation | 83 |
| Item\t12. | Security\tOwnership\tof\tCertain\tBeneficial\tOwners\tand\tManagement\tand\tRelated\tStockholder\tMatters | 83 |
| Item\t13. | Certain\tRelationships\tand\tRelated\tTransactions,\tand\tDirector\tIndependence | 84 |
| Item\t14. | Principal\tAccounting\tFees\tand\tServices | 84 |
|  | Part\tIV |  |
| Item\t15. | Exhibits\tand\tFinancial\tStatement\tSchedules | 85 |
|  | Signatures | 89 |

# CAUTIONARY	STATEMENT	WITH	RESPECT	TO	FORWARD-LOOKING	COMMENTS

The	discussions	set	forth	in	this	Annual	Report	on	Form	10-K	contain	statements	concerning	potential	future	events.		Such	forward-looking	statements	are	based	upon assumptions	by	the	Company's	management,	as	of	the	date	of	this	Annual	Report,	including	assumptions	about	risks	and	uncertainties	faced	by	the	Company.	In	addition, management	may	make	forward-looking	statements	orally	or	in	other	writings,	including,	but	not	limited	to,	in	press	releases,	in	the	annual	report	to	shareholders	and	in	the Company's	other	filings	with	the	Securities	and	Exchange	Commission.	Readers	can	identify	these	forward-looking	statements	by	their	use	of	such	verbs	as	"expects," "anticipates,"	"believes"	or	similar	verbs	or	conjugations	of	such	verbs.	Forward-looking	statements	include	any	discussion	of	the	trends	and	other	factors	that	drive	our business	and	future	results	in	"Item	7.		Management's	Discussion	and	Analysis	of	Financial	Conditions	and	Results	of	Operations."			Readers	are	cautioned	not	to	place undue	reliance	on	these	forward-looking	statements,	which	speak	only	as	of	their	date.	If	any	of	management's	assumptions	prove	incorrect	or	should	unanticipated circumstances	arise,	the	Company's	actual	results	could	materially	differ	from	those	anticipated	by	such	forward-looking	statements.		The	differences	could	be	caused	by	a number	of	factors	or	combination	of	factors	including,	but	not	limited	to,	those	factors	identified	under	Item	1A	"Risk	Factors."		Readers	are	strongly	encouraged	to consider	 those	factors	when	evaluating	any	forward-looking	statements	concerning	 the	Company.	 	The	Company	does	not	undertake	 to	update	any	forward-looking statements	in	this	Annual	Report	to	reflect	future	events	or	developments.

# Part	I

# Item	1.			Business

This	discussion	of	the	business	of	Garmin	Ltd.	("Garmin"	or	the	"Company")	should	be	read	in	conjunction	with,	and	is	qualified	by	reference	to,	"Management's Discussion	and	Analysis	of	Financial	Condition	and	Results	of	Operations"	under	Item	7	herein	and	the	information	set	forth	in	response	to	Item	101	of	Regulation	S-K	in such	Item	7	is	incorporated	herein	by	reference	in	partial	response	to	this	Item	1.		Garmin	has	four	business	segments:	Marine,	Automotive/Mobile,	Outdoor/Fitness,	and Aviation.			The	segment	and	geographic	information	included	in	Item	8,	"Financial	Statements	and	Supplementary	Data,"	under	Note	8	is	incorporated	herein	by	reference in	partial	response	to	this	Item	1.

Garmin	was	incorporated	in	the	Cayman	Islands	on	July	24,	2000	as	a	holding	company	for	Garmin	Corporation,	a	Taiwan	corporation,	in	order	to	facilitate	a public	offering	of	Garmin	shares	in	the	United	States.	Garmin	owns,	directly	or	indirectly,	all	of	the	operating	companies	in	the	Garmin	group.

Garmin's	annual	report	on	Form	10-K,	quarterly	reports	on	Form	10-Q,	current	reports	on	Form	8-K,	proxy	statement	and	Forms	3,	4	and	5	filed	by	Garmin's directors	and	executive	officers	and	all	amendments	to	those	reports	will	be	made	available	free	of	charge	through	the	Investor	Relations	section	of	Garmin's	Internet website	(http://www.garmin.com)	as	soon	as	reasonably	practicable	after	such	material	is	electronically	filed	with,	or	furnished	to,	the	Securities	and	Exchange	Commission.

The	reference	to	Garmin's	website	address	does	not	constitute	incorporation	by	reference	of	the	information	contained	on	this	website,	and	such	information	should not	be	considered	part	of	this	report	on	Form			10-K.

# Company	Overview

Garmin	is	a	leading,	worldwide	provider	of	navigation,	communication	and	information	devices	and	applications,	most	of	which	are	enabled	by	Global	Positioning System	("GPS")	technology.	Garmin	designs,	develops,	manufactures	and	markets	a	diverse	family	of	hand-held,	portable	and	fixed-mount	GPS-enabled	products	and	other navigation,	communications	and	information	products	for	the	automotive/mobile,	outdoor/fitness,	marine,	and	general	aviation	markets.

# Overview	of	the	Global	Positioning	System

The	Global	Positioning	System	 is	a	worldwide	navigation	system	which	enables	 the	precise	determination	of	geographic	 location	using	established	satellite technology.	The	system	consists	of	a	constellation	of	orbiting	satellites.	The	satellites	and	their	ground	control	and	monitoring	stations	are	maintained	and	operated	by	the United	States	Department	of	Defense,	which	maintains	an	ongoing	satellite	replenishment	program	to	ensure	continuous	global	system	coverage.			Access	to	the	system	is provided	free	of	charge	by	the	U.S.	government.

Prior	to	May	2000,	the	U.S.	Department	of	Defense	intentionally	degraded	the	accuracy	of	civilian	GPS	signals	in	a	process	known	as	Selective	Availability (''SA'')	for	national	security	purposes.	SA	variably	degraded	GPS	position	accuracy	 to	a	radius	of	100	meters.	On	May	2,	2000,	 the	U.S.	Department	of	Defense discontinued	SA.	In	a	presidential	policy	statement	issued	in	December	2004,	the	Bush	administration	indicated	that	the	U.S.	does	not	intend	to	implement	SA	again	and	is committed	to	preventing	hostile	use	of	GPS	through	regional	denial	of	service,	minimizing	the	impact	to	peaceful	users.	With	SA	removed,	a	GPS	receiver	can	calculate	its position	to	an	accuracy	of	approximately	10	meters	or	less,	enhancing	the	utility	of	GPS	for	most	applications.

The	accuracy	and	utility	of	GPS	can	be	enhanced	 through	augmentation	 techniques	which	compute	any	remaining	errors	 in	 the	signal	and	broadcast	 these corrections	to	a	GPS	device.	The	Federal	Aviation	Administration	("FAA")	has	developed	a	Wide	Area	Augmentation	System	(''WAAS'')	comprising	ground	reference stations	and	additional	satellites	that	improve	the	accuracy	of	GPS	positioning	available	in	the	United	States	and	portions	of	Canada	and	Mexico	to	approximately	3	meters. WAAS	supports	the	use	of	GPS	as	the	primary	means	of	enroute,	terminal	and	approach	navigation	for	aviation	in	the	United	States.	The	increased	accuracy	offered	by WAAS	also	enhances	the	utility	of	WAAS-enabled	GPS	receivers	for	consumer	applications.	The	FAA	announced	on	July	11,	2003	that	the	WAAS	system	had	achieved initial	operating	capability	and	that	the	system	was	available	for	instrument	flight	use	with	appropriately	certified	avionics	equipment.	Since	that	time,	the	FAA	has	installed additional	ground	reference	stations	and	has	launched	additional	WAAS	satellites.

# Recent	Developments	in	the	Company's	Business

Since	the	inception	of	its	business,	Garmin	has	delivered	over	48	million	products,	which	includes	the	delivery	of	16.9	million	products	during	2008.

# 	Automotive/Mobile	Product	Introductions

Garmin	introduced	a	number	of	new	versions	of	Garmin's	popular	nüvi ®	personal	navigation	device	(PND)	product	line	in	2008,	including	the	nüvi	880,	a	premium PND	which	features	speech	recognition	and	MSN ®	Direct	services,	the	nüvi	780	with	MSN ®	Direct	services,	the	nüvi	260W	a	value-priced	PND	that	speaks	street	names and		has	a	4.3"	wide	screen,	the	nüvi	2x5	series	with	Bluetooth®	wireless	technology	for	hands-free	calling	and	a	bundled	subscription	to	traffic	alerts	and	the	nüvi	7x5 series	with	Lane	Assist	which	depicts	road	signs	and	provides	guidance	to	the	correct	lane	for	an	approaching	turn	or	exit.	Also	in	2008,	Garmin	introduced	the	multi-mode nüvi	500	series	that	combine	PND	functionality	with	outdoor	and	marine	navigation	capabilities.

Also	in	2008,	Garmin	announced	the	nüvifone TM a	touchscreen	smartphone	that	integrates	a	mobile	phone,	web	browser	and	PND.	The	nüvifone	is	expected	to	be released	in	the	first	half	of	2009.

# Outdoor/	Fitness	Product	Introductions

Garmin	expanded	its	Forerunner®	line	of	products	for	the	fitness	market	with	the	Forerunner	405,	a	compact-sized,	wrist-worn	GPS-enabled	fitness	device	that	allows runners	to	track	their	speed,	distance,	heart	rate	and	location,	access	their	training	history	or	challenge	a	Virtual	Partner™	and	automatically	upload	their	data	wirelessly	to	a personal	computer.		To	help	promote	its	full	line	of	fitness	products,	Garmin	entered	into	a	sponsorship	agreement	with	the	Slipstream	Sports	cycling	team	to	become	the lead	sponsor	of	the	team,	which	is	now	known	as	Team	Garmin-Slipstream.

Garmin	also	introduced	the	Oregon TM 	series	of	rugged,	color	touchscreen	handheld	GPS	devices	and	the	Colorado TM series	of	handheld	GPS	devices	with	color displays.	Both	the	Oregon	and	Colorado	series	are	available	with	a	variety	of	mapping	options	suitable	for	outdoor	and	marine	applications.

# 	Marine	Product	Introductions

In	September	2008	Garmin	introduced	a	new	line	of	VHF	marine	communication	radios,	the	VHF	100	and	VHF	200.	In	October	2008	Garmin	announced	the GPSMAP	600	series	of	portable	and	rugged	touchscreen	marine	chartplotters	that	also	function	as	automotive	navigators	with	voice-prompted	turn-by-turn	directions.

# 	Aviation	Product	Introductions	and	Certifications

In	April	2008	Garmin	received	Federal	Aviation	Administration	(FAA)	Supplemental	Type	Certification	(STC)	for	Garmin	Synthetic	Vision	Technology	(SVT™), which	is	designed	to	integrate	with	Garmin's	G1000	avionics	suite.	Garmin's	SVT	presents	a	3-D	depiction	of	terrain,	obstacles	and	traffic	on	the	G1000's	primary	flight- display	so	that	the	avionics	panel	replicates	what	pilots	would	see	outside	the	cockpit	on	a	clear	day.

In	April	2008	Garmin	also	announced	the	G950	avionics	suite,	an	all-glass	avionics	suite	designed	for	aircraft	manufacturers	who	want	a	standardized	avionics configuration	and	will	complete	certification	of	their	airframe's	avionics	panel	on	their	own.

In	July	2008	Garmin	received	FAA	Approved	Model	List	Supplemental	Type	Certification	with	an	Approved	Model	List	(AML	STC)	for	the	G600,	a	new	avionics suite	designed	for	the	retrofit	and	forward	fit	avionics	market.

Also	in	2008,	Garmin	introduced	several	new	portable	aviation	navigators,	including	the	GPSMAP	696,	a	tablet-styled	GPS	navigator	with	a	7-inch	screen,	detailed electronic	charts,	real-time	weather	and	high	resolution	terrain	display.

# Acquisitions

During	2008	Garmin	acquired	its	independent	distributors	in	Austria,	Belgium,	Denmark,	Finland,	Portugal	and	Sweden	to	strengthen	its	presence	and	capabilities	in	the European	market.

# Gain	on	Sale/Tender	of	Tele	Atlas	N.V.	Shares

Garmin	realized	a	gain	of	$72.4	million	during	2008	following	the	sales	and	tender	to	TomTom	N.V.	of	the	shares	of	Tele	Atlas	N.V.	that	were	acquired	by Garmin	in	2007	in	connection	with	its	announced	intent	to	make	a	cash	offer	for	all	outstanding	shares	of	Tele	Atlas	N.V.,	which	was	subsequently	abandoned.	This	gain includes	$21.5	million	of	foreign	currency	gain	due	to	the	strengthening	of	the	Euro.

# Products

Garmin	has	achieved	a	leading	market	position	and	a	history	of	consistent	growth	in	revenues	and	profits	by	offering	ergonomically	designed,	user-friendly products	with	innovative	features	and	designs	covering	a	broad	range	of	applications	and	price	points.		Garmin's	target	markets	are	currently	broken	down	into	four	main segments	–	automotive/mobile,	outdoor/fitness,	marine	and	aviation.

# Automotive/Mobile

Garmin	offers	a	broad	range	of	automotive	navigation	products,	as	well	as	a	variety	of	products	and	applications	designed	for	the	mobile	GPS	market.		Garmin	believes	that its	products	are	known	for	their	value,	high	performance,	ease	of	use,	innovation,	and	ergonomics.		The	table	below	includes	a	sampling	of	the	automotive	and	mobile products	that	Garmin	currently	offers	to	consumers	around	the	world.

(27	models) The	nüvi	is	Garmin's	popular	thin-profile	personal	navigation	device	(PND).		All	nüvi	models	combine	a	full-featured	GPS	navigator	(with	built- in	maps)	with	a	currency	and	measurement	converter,	world	clock	and	digital	photo	organizer.			Different	nüvi	models	and	optional	add-ons offer	different	feature	sets,	including	a	wide	screen	display,	integrated	traffic	receiver	for	traffic	data,	spoken	street	names,		speech	recognition, speed	limit	indication,	lane	assist,	3-D	building	view,	MSN	Direct	content,	Bluetooth®	hands-free	capability,	MP3	player,	language	translator, audio	book	player,	FM	transmitter,	built-in	maps	of	Europe,	and	the	ability	to	add	custom	points	of	interest.		Users	can	also	choose	to	purchase	a travel	assistant	that	provides	reviews	and	recommendations	for	restaurants,	hotels,	shopping,	night	life,	sporting	events,	tourist	attractions,	and more	(Garmin	Travel	Guide™).	In	fiscal	years	2008,	2007,	and	2006,	the	nüvi	class	of	products	represented	approximately	64%,	52%	and	28% respectively	of	Garmin's	total	consolidated	revenues.

(2	models) Motorcycle-specific	navigators	with	features	 including	a	glove-friendly	 touch	screen	with	high	bright	sunlight-readable	display,	motorcycle mount,	vibration-tested	design,	and	Bluetooth	wireless	technology.		An	SD	(secure	digital)	card	slot	allows	riders	to	share	their	favorite	places and	rides	with	fellow	zūmo	riders.		The	zūmo	660	features	3-D	building	view	and	lane	assist	and	a	digital	fuel	gauge.

Garmin	Mobile™ Garmin	Mobile	is	a	subscription-based	software	application	that	lets	compatible	cell	phones	function	as	versatile	GPS	navigators.

Garmin	Mobile™	XT Garmin	Mobile	XT	is	a	data	card	that	turns	many	smartphones	into	full-featured	navigators.		Users	can	simply	plug	the	microSD	card	into	a compatible	phone	and	begin	navigating.		No	network	coverage	or	subscription	is	required.

# Outdoor/Fitness

# Forerunner®

(8	models) Compact,	lightweight	training	assistants	for	athletes	with	integrated	GPS	sensor	(except	for	Forerunner	50	and	FR60)	that	provide	time,	speed, distance,	pace	and	other	data.	Some	models	also	offer	a	heart	rate	monitoring	function.				The	Forerunner	50	is	an	entry-level	advanced	fitness watch	that	allows	runners	and	walkers	to	track	their	workouts	and	automatically	upload	their	data	(via	a	wireless	USB	ANT™	Stick)	to	a personal	computer.		The	Forerunner	405	is	a	compact-sized,	wrist-worn	GPS-enabled	device	that	allows	runners	and	joggers	to	track	their	speed, distance,	heart	rate	and	location,	access	their	training	history	or	challenge	a	Virtual	Partner™	and	automatically	upload	their	data	wirelessly	to	a personal	computer.

# Edge®

Integrated	personal	training	systems	designed	for	cyclists.	The	Edge	205	measures	speed,	distance,	time,	calories	burned,	climb	and	descent, altitude	 and	more.		The	Edge	305	adds	a	heart	rate	monitor	and/or	wireless	speed/pedaling	cadence	sensor.		The	Edge	605	and	705	provide mapping	capabilities	(including	street	navigation)	and	a	2.2"	color	display	in	addition	to	tracking	vertical	profiles,	climb	and	descent,	altitude, speed,	distance,	and	time.

# Colorado™

(4	models) The	Colorado	series	features	Garmin's		Rock	'n	Roller™	wheel,	which	allows	the	user	to	operate	many	of	the	units'	features	with	the	user's thumb.		The	Colorado	300	features	a	worldwide	basemap	with	shaded	relief.		The	Colorado	400c	provides	marine	chart	coverage	for	the	coastal U.S.	and	Bahamas.		The	Colorado	400i	offers	shoreline	details,	depth	contours	and	boat	ramps	for	U.S.	inland	lakes	and	rivers.	The	Colorado 400t	gives	hikers	3-D	elevation	perspective	and	preloaded	U.S.	topographic	maps.	All	Colorado	models	are	equipped	with	a	barometric	altimeter and	electronic	compass.

# Oregon™

(5	models) The	Oregon	series	combines	a	bright	3	inch	color	touchscreen,	rugged	design	and	a	variety	of	preloaded	mapping	options.	The	Oregon	400t	gives hikers	preloaded	U.S.	topographic	maps	with	3-D	elevation	perspective.	The	Oregon	400i	offers	shoreline	details,	depth	contours	and	boat	ramps for	U.S.	inland	lakes	and	navigable	rivers.	The	Oregon	400c	features	chart	coverage	for	the	coastal	U.S.	and	Bahamas.	The	Oregon	300	features	a worldwide	basemap	with	shaded	relief.	The	Oregon	400t,	400c,	400i	and	300	are	equipped	with	a	barometric	altimeter	and	electronic	compass and	are	compatible	with	Garmin's	heart-rate	monitors	and	speed/cadence	sensors.

# eTrex	®

(8	models) Compact	handheld	GPS	units	for	outdoor	enthusiasts.	All	models	are	waterproof	and	have	rugged	designs.

(4	models) The	GPS	60	is	a	basic	GPS	without	mapping	while	the	GPSMAP	60	offers	a	monochrome	display	and	24	MB	of	downloadable	memory.		The GPSMAP	60Cx	and	the	GPSMAP	60CSx	feature	a	high	sensitivity	GPS	receiver	and	a	slot	for	a	removable	microSD	memory,	along	with	a 64mb	microSD	card.

(5	models) Handheld	GPS	with	large	display	and	a	waterproof	case	which	floats	in	water.		Preloaded	with	U.S.	tidal	data,	the	GPS	76	is	a	basic	GPS	without a	basemap.	The	GPSMAP	76	has	an	internal	basemap	and	MapSource®	compatibility	for	street	level	mapping	and	detailed	marine	charts.	The GPSMAP	76S	additionally	features	a	barometric	altimeter	and	an	electronic	compass.		The	GPSMAP	76Cx	and	the	GPSMAP	76CSx	each feature	a	high	sensitivity	GPS	receiver	and	a	slot	for	a	removable	microSD	memory,	along	with	a	128mb	microSD	card,	all	in	the	same	rugged and	waterproof	housing	that	floats	in	water.

# Rino®

(5	models) Handheld	two-way	 Family	 Radio	 Service	 (FRS)	 and	 General	 Mobile	 Radio	 Service	 (GMRS)	radios	 that	 integrate	 two-way	 voice communications	with	GPS	navigation.		Features	include	patented	"peer-to-peer	position	reporting"	so	you	can	transmit	your	location	to	another Rino	radio.		The	Rino	120	has	an	internal	basemap	and	MapSource	compatibility	for	street-level	mapping.		The	Rino	130	has	24	MB	of	internal memory,	 built-in	 electronic	 compass,	 barometric	 sensor,	 and	National	 Oceanic	 and	 Atmospheric	 Administration	 (NOAA)	 weather	 radio receiver.		The	Rino	520HCx	has	a	high	sensitivity	GPS	receiver,	5	watts	of	transmit	power,	color	display,	mini-USB	interface,	and	a	turn-by	turn automatic	route	calculation	for	use	in	automobiles.		The	Rino	530HCx	has	all	of	the	features	of	the	Rino	520HCx,	plus	a	seven-channel	weather receiver,	electronic	compass,	and	barometric	altimeter.

Approach™	G5

Announced	in	January	2009	with	expected	availability	in	the	second	quarter	of	2009,	the	Approach	G5	is	a	rugged,	waterproof,	touchscreen, handheld	GPS	for	golfers	that	features	thousands	of	preloaded	golf	course	maps.	Approach	G5	uses	a	high-sensitivity	GPS	receiver	to	measure individual	shot	distances	and	show	the	exact	yardage	to	fairways,	hazards	and	greens.

Astro® High	sensitivity	GPS-enabled	dog	tracking	system.		The	Astro	is	designed	to	pinpoint	up	to	ten	dogs'	positions	at	one	time	through	all-weather collars	and	a	handheld	system.		The	system	also	provides	a	Dog	Tracker	page	and	a	Covey	Counter tm to	assist	the	hunter.		It	is	loaded	with	many of	 the	features	of	our	outdoor	devices	including:	 	barometric	altimeter,	electronic	compass,	microSD	slot,	area	calculator	and	a	waterproof exterior.

# Marine

Garmin's	marine	lineup	includes	network	products	and	multifunction	displays,	fixed-mount	GPS/chartplotter	products,	instruments,	radar,	autopilots,	and	sounder products.				The	table	below	includes	a	sampling	of	some	of	the	marine	products	that	Garmin	currently	offers	to	consumers.

# Marine	Chartplotters	and	Networking	Products

GPSMAP ®	5000	series (6	models) These	touch-	screen	multifunction	displays	for	the	Garmin	Marine	Network	(a	system	that	combines	GPS,	radar,	XM	WX	Satellite	Weather, sonar,	and	other	data)	offer	ease	of	use	and	video-quality	resolution	and	color.		The	5212	and	5208	come	pre-loaded	with	detailed	U.S.	coastal charts,	 including	 Explorer	 Charts,	 and	 are	 compatible	 with	Garmin's	 BlueChart®	 g2	 Vision™	 charts	 which	 offer	 high-resolution	satellite imagery,	 3-D	 map	 perspective,	 aerial	 reference	 photos,	 and	 auto	guidance.	 	 The	 5215	 and	 5015	 offer	 15-inch	 diagonal	sunlight-readable touchcreen	displays.

4200	series	(6	models) These	multifunction	displays	for	the	Garmin	Marine	Network	(a	system	that	combines	GPS,	radar,	XM	WX	Satellite	Weather,	sonar,	and	other data)	offer	ease	of	use	and	video-quality	resolution	and	color.		The	4212	and	4208	come	pre-loaded	with	detailed	U.S.	coastal	charts,	including Explorer	Charts,	and	are	compatible	with	Garmin's	BlueChart®	g2	Vision™	charts	which	offer	high-resolution	satellite	imagery,	3-D	map perspective,	aerial	reference	photos,	and	auto	guidance.		The	4210	and	4010	feature	10.4-inch	diagonal	sunlight-	readable	displays	and	Garmin's new	marine	user	interface.

3200	series	(6	models) These	configurable	 chartplotter/multifunction	 displays	 (MFDs)	 are	 all	network-enabled	 and	 come	 in	 either	 a	 10",	 6"	 or	 5"	 display.	 	 The GPSMAP	3200	series	of	multifunction	displays	for	the	Garmin	Marine	Network	feature	pre-loaded	Marine	Detail	Charts	of	the	U.S.	coastline, including	Alaska	and	Hawaii.

The	4x0	and	5x0	chartplotters	and	chartplotter/sonar	units	feature	new,	highly-detailed	pre-loaded	marine	cartography	and	offer	a	wide	variety	of display	sizes	and	networking	options.		All	units	are	compatible	with	Garmin's	BlueChart®	g2™	data	cards.

# Fishfinders

(5	models) Garmin	offers	five	different	fishfinder	options	spanning	various	price	points.			All	models	feature	Garmin's	Ultrascroll™	technology,	which allows	 boaters	 to	 get	 a	 faster	 refresh	 rate	 on	 their	sonar	 display,	 and	 dual-beam	 transducer	 operation.	 	 Four	of	 the	 models	 offer	 color displays.	 	The	Fishfinder	400C	comes	with	dual	beam	or	dual	frequency	transducers	for	easy	adaptability	to	either	freshwater	or	saltwater fishing.		It	also	offers	a	new,	easy-to-use	interface	and	built	in	CANet	connectivity	to	enable	sonar	data	to	be	shared	with	compatible	Garmin chartplotters.

# Radar

(6	models) Garmin	offers	 both	 radomes	 and	 open	 array	 radar	 products	 with	 compatibility	 to	any	 network-compatible	 Garmin	 chartplotter	 so	 that	 the chartplotter	 can	double	 as	 the	 radar	 screen.	 	 The	 GMR™	 18	 and	 21	 models	 are	digital	 radome	 products	 in	 various	 sizes	 and	 power specifications.		The	GMR	404	and	406	open	array	radar	scanners	provide	even	greater	clarity	and	a	72	nautical	mile	range.		The	GMR	18	HD and	GMR	24	HD	radomes	feature	digital	signal	processing	providing	sharper	radar	imagery	and	improved	target	separation.

# Aviation

Garmin's	panel-mounted	product	line	includes	GPS-enabled	navigation,	VHF	communications	transmitters/receivers,	multi-function	displays,	receivers,	instrument landing	system	(ILS)	receivers,	digital	transponders	(which	transmit	an	aircraft's	altitude	and	its	flight	identification	number	in	response	to	requests	transmitted	by	ground- based	air	traffic	control	radar	systems	or	collision	avoidance	devices	on	other	aircraft),	marker	beacon	receivers	and	audio	panels.

Garmin's	aviation	products	have	won	prestigious	awards	throughout	the	industry	for	their	innovative	features	and	ease	of	use.		The	GNS	430/530	offers	multiple features	and	capabilities	integrated	into	a	single	product.	This	high	level	of	integration	minimizes	the	use	of	precious	space	in	the	cockpit,	enhances	the	quality	and	safety	of flight	through	the	use	of	modern	designs	and	components	and	reduces	the	cost	of	equipping	an	aircraft	with	modern	electronics.		The	GNS	430	was	recognized	by	Flying Magazine	as	the	Editor's	Choice	Product	of	the	Year	for	1998.		In	1994,	and	again	in	2000,	Garmin	earned	recognition	from	the	Aircraft	Electronics	Association	for outstanding	contribution	to	the	general	aviation	electronics	industry.		The	GPSMAP	295	won	Aviation	Consumer	Magazine's	Gear	of	the	Year	award	for	best	aviation portable	product	in	2000	and	again	in	2001.	Flying	Magazine's	editors	awarded	the	GPSMAP	396	with	a	2005	Editors'	Choice	Award	for	outstanding	achievements.		The GPSMAP	496,	introduced	in	2006,	won	the	"2006	Gear	of	the	Year"	award	from	Aviation	Consumer	magazine.		Flying	Magazine's	editors	awarded	Garmin	a	2007	Flying Editors'	Choice	Award	for	making	the	safety	and	precision	of	WAAS	(Wide	Area	Augmentation	System)	available	in	its	GPS	navigation	systems.		Garmin	was	ranked	No. 1	among	aviation	electronics	manufacturers	for	operation,	presentation,	technical	advancement,	information,	construction	and	satisfaction	in	Professional	Pilot	magazine's survey	of	its	readers	in	2003,	2004	and	2005	and	was	ranked	No.	2	in	2006	and	2007.	Garmin	has	been	ranked	No.	1	among	avionics	manufacturers	for	avionics	product support	in	Professional	Pilot	magazine's	survey	of	its	readers	in	each	of	the	last	five	survey	years.		Aviation	International	News	also	ranked	Garmin	No.	1	in	avionics product	support	in	2008,	making	it	the	fifth	consecutive	year	that	Garmin	has	earned	that	No.	1	ranking.		Garmin	received	the	Airline	Technology	Achievement	Award	from Air	Transport	World	Magazine	in	January	2005	for	championing	the	development	of	Automatic	Dependent	Surveillance-Broadcast	(ADS-B)	technology,	an	enabling technology	for	air	traffic	management.

Garmin's	panel-mounted	aviation	products	are	sold	in	both	new	aircraft	and	the	retrofit	market	where	existing	aircraft	are	fitted	with	the	latest	electronics	from Garmin's	broad	product	line.

Garmin	has	also	expanded	its	range	of	avionics	offerings	to	leading	General	Aviation	aircraft	manufacturers	such	as	the	Cessna	Aircraft	Company,	Cirrus	Design Corporation,	Hawker	Beechcraft	Corporation,	Diamond	Aircraft	Industries,	Mooney	Airplane	Company,	Piper	Aircraft,	Inc.	and	EADS	SOCATA		through	the	installation of	 the	G1000	 integrated	flight	deck	as	original	equipment	aboard	new	aircraft.	This	system	 integrates	attitude,	heading,	air	data,	navigation,	communication,	engine monitoring,	and	other	aircraft	functions	into	a	single	cohesive	system	which	interfaces	with	the	flight	crew	using	a	set	of	large,	bright	TFT	displays.		The	G1000	also	comes with	an	optional	integrated	autopilot	–	the	GFC70.		Garmin	also	has	expanded	its	G1000	sales	to	the	business	jet	segment,	such	as	Cessna	with	its	Citation	Mustang	jet	and Embraer	which	has	selected	Garmin's	G1000	integrated	flight	deck	for	Embraer's	new	Phenom	100	(very	light	jet)	and	Phenom	300	(light	jet)	programs.

The	table	below	includes	a	sampling	of	some	of	the	aviation	products	currently	offered	by	Garmin:

# Handheld	and	portable	aviation	products:

The	GPSMAP	696	expands	on	the	features	of	the	GPSMAP	496	by	adding	a	7	inch	screen,	preloaded	detailed	electronic	charts, preloaded	airways	and	IFR	map	mode.	The	GPSMAP	696	has	a	receiver	for	XM	radio	and	XM	WX	Satellite	Weather	(U.S. customers	only)	that	gives	next	generation	radar	(NEXRAD),	aviation	routine	weather	reports	(METARs),	terminal	aerodrome forecasts	(TAFs),	temporary	flight	restrictions	(TFRs),	lightning,	winds	aloft,	turbulence	forecasts,	and	several	other	important weather	products.	The	GPSMAP	695	has	the	same	features	except	for	XM	radio	and	weather.

# Integrated	avionics	systems:

G1000® The	G1000	integrates	navigation,	communication,	attitude,	weather,	terrain,	traffic,	surveillance	and	engine	information	on	large high-resolution	color	displays.	The	G1000	offers	general	aviation	airplane	manufacturers	an	easy-to-install	solution	for	flight displays	and	provides	the	aircraft	owner	the	benefits	of	a	state-of-the-art	avionics	system	which	relies	on	modern	technologies such	as	solid	state	components	and	bright,	sunlight-readable	TFT	displays.

G600™ The	G600	brings	the	style	and	function	of	an	all-glass	integrated	avionics	suite	to	the	retrofit	market.		The	G600	incorporates	two individual	displays	–	a	PFD	and	MFD	–	in	a	customized	package	specifically	designed	for	easy	retrofit	installation.	The	G600	is designed	to	communicate	and	integrate	with	Garmin's	WAAS	enabled	panel	mount	products,	and	provides	essential	information such	as	attitude,	air	data,	weather,	terrain	and	traffic.		Garmin	has	received	the	FAA's	Approved	 Model	List	Supplemental	Type Certification	(AML	STC)	for	the	G600,	which	will	simplify	certification	for	over	300	different	aircraft	models.

G900X™ An	all-glass	integrated	avionics	system	specifically	designed	for	kitplane	builders	of	the	Lancair	and	Van's	RV-series	aircraft. GDU	370/375 Multifunction	displays	for	the	light	sport	retrofit	and	experimental	aircraft	markets	(expected	to	be	available	in	the	second	quarter of	2009).

# Panel-mount	aviation	products:

The	GNS 430 was	 the	 world's	 first	 ''all-in-one''	 IFR	 certified	 GPS	 navigation	 receiver/traditional	 VHF	 navigation receiver/instrument	landing	systems	receiver	and	VHF	communication	transmitter/receiver.	Features	available	in	different	400 series	models	include	4-color	map	graphics,	GPS,	communication	and	navigation	capabilities.		The	430	Series	units	may	now	be ordered	with	or	upgraded	to	Wide	Area	Augmentation	System	(WAAS)	capability.

(2	models) These	units	combine	the	features	of	the	400	series	along	with	a	larger	5"	color	display.		The	530	Series	units	may	now	be	ordered with	or	upgraded	to	Class	B	Terrain	Awareness	and	Warning	System	(TAWS-B)	and	Wide	 Area	Augmentation	System	(WAAS) capability.

GI-102A	&	106A Course	deviation	indicators	(CDIs).	The	GI-106A	features	an	instrument	landing	system	receiver	to	aid	in	landing.

GTX	320A,327	&	328 FAA-certified	transponders	which	transmit	altitude	or	flight	identification	to	air	traffic	control	radar	systems	or	other	aircraft's	air traffic	avoidance	devices	and	feature	solid-state	construction	for	longer	life.		The	GTX	327	offers	a	digital	display	with	timing functions.		The	328	is	designed	exclusively	for	Europe	and	satisfies	the	European	requirement	for	a	Mode	S	solution	that	meets the	reduced	certification	requirements	for	the	VFR	Mode	S	mandate.

GWX™	68 The	GWX	 68 is	 an	 all-in-one	 antenna/receiver/transmitter that	 brings real-time	weather to	 Garmin's	 newest	 multi-function displays.

# Sales	and	Marketing

Garmin's	non-aviation	products	are	sold	through	a	worldwide	network	of	approximately	3,000	independent	dealers	and	distributors	in	approximately	100	countries who	meet	our	sales	and	customer	service	qualifications.	Best	Buy	was	the	only	customer	whose	purchases	represented	10%	or	more	of	Garmin's	consolidated	revenues	in	the fiscal	year	ended	December	27,	2008	(Best	Buy's	purchases	totaled	12.0%	of	Garmin's	2008	consolidated	revenues).	Marketing	support	is	provided	geographically	from Garmin's	offices	in	Olathe,	Kansas	(North,	South	and	Central	America),	Southampton,	U.K.	(Europe,	Middle	East	and	Africa)	and	Shijr,	Taiwan	(Asia,	Australia	and	New Zealand).		Garmin's	distribution	strategy	is	intended	to	increase	Garmin's	global	penetration	and	presence	while	maintaining	high	quality	standards	to	ensure	end-user satisfaction.

Garmin's	U.S.	consumer	product	sales	are	handled	through	its	network	of	dealers	and	distributors	who	are	serviced	by	a	staff	of	regional	sales	managers	and	in- house	sales	associates.	Some	of	Garmin's	larger	consumer	products	dealers	and	distributors	include:

·  Best	Buy—one	of	the	largest	U.S.	and	Canadian	electronics	retailers;

·  Amazon.com—internet	retailer;

·  Costco—an	international	chain	of	membership	warehouses	that	carry	quality,	brand	name	merchandise;

·  Halford's—a	large	European	retailer	specializing	in	car	parts	and	accessories;

·  Petra—a	large	distributor	who	sells	to	such	dealers	as	Costco	and	Amazon.com;

·  Target—	one	of	the	nation's	largest	general	merchandise	retailers;

·  Wal-Mart—the	world's	largest	mass	retailer;	and

·  Wynit—a	large	distributor	who	sells	to	such	dealers	as	Radio	Shack	and	Amazon.com.

Garmin's	Europe,	Middle	East	and	Africa	consumer	product	sales	are	handled	through	our	in-country	subsidiaries	or	local	distributors	who	resell	to	dealers. Working	closely	with	Garmin's	in-house	sales	and	marketing	staff	in	the	U.K.,	these	in-country	subsidiaries	or	independent	distributors	are	responsible	for	inventory	levels and	staff	training	requirements	at	each	retail	location.	Garmin's	Taiwan-based	marketing	team	handles	the	Company's	Asia	sales	and	marketing	effort.

Garmin's	panel-mount	aviation	products	are	sold	through	aviation	distributors	around	the	world.	Garmin's	largest	aviation	distributors	include	Sportsman's	Market, Aircraft	Spruce	and	Specialty	Co.,	Gulf	Coast	Avionics,	Pacific	Coast	Avionics,	and	Sarasota	Avionics.	These	distributors	have	the	training,	equipment	and	certified	staff required	for	at-airport	installation	of	Garmin's	avionics	equipment.	Garmin's	portable	aviation	products	are	sold	through	distributors	and	through	catalogs.

In	addition	to	the	traditional	distribution	channels	mentioned,	Garmin	has	many	relationships	with	original	equipment	manufacturers	(OEMs).		In	the	consumer market,	Garmin's	products	are	sold	to	certain	automotive	and	motorcycle	OEMs	such	as	Chrysler/Mopar,	Toyota,	Suzuki,	Harley-Davidson,	Ford,	BMW	and	BMW Motorrad,	Honda	Access,	Mercedes	Benz,	Smart	Car,	Peugeot,	Hyundai,	Mazda,	Nissan,	Volvo,	Bombardier,	and	Polaris,	for	dealer-installed	aftermarket	accessory programs.		Garmin	also	has	a	factory-installed	program	with	Honda	Motorcycles	and	also	delivered	to	Suzuki	a	factory-integrated	PND	product	in	2008	for	Suzuki's	SX4 vehicle	in	North	America.	 	In	addition,	Garmin	also	sells	products	and	applications	to	Kenwood	for	bundling	with	Kenwood's	OEM	products,	and	in	2008	Garmin announced	a	relationship	with	Panasonic	Automotive	Systems	to	supply	products	and	applications	to	Panasonic	for	automotive	OEM	sales.		Garmin	also	has	relationships with	certain	rental	car	companies	including	Dollar/Thrifty,	Enterprise,	Avis,	Budget,	National,	Europcar,	and	Alamo.		Garmin	has	also	developed	promotional	relationships with	certain	automotive	dealerships	in	certain	countries	including	BMW,	Southeast	Toyota,	Penske,	Mazda,	Saab	and	Ford.		Garmin's	products	are	also	standard	equipment on	various	models	of	boats	manufactured	by	Edgewater	Boats,	Bennington	Marine,	Cigarette	Racing	Team,	Inc.,	Cobalt	Boats,	G3	Boats,	and	are	optional	equipment	on boats	manufactured	by	Chaparral	Boats,	Inc.,	Formula	Boats,	Fountain	Powerboats,	Mainship	(Luhrs	Corp.),	and	Pro-Line	Boats.		In	the	aviation	market,	Garmin's	avionics are	 standard	 equipment	 on	 various	 models	 of	 aircraft	 built	 by	 Cessna	Aircraft	 Company,	 Embraer,	 Cirrus	 Design	 Corporation,	 Diamond	Aircraft	 Industries,	 EADS SOCATA,	 Eurocopter,	 Mooney	Aircraft	 Corporation,	 Hawker	 Beechcraft	Aircraft	 Company,	 Robinson	 Helicopter,	 and	 the	 Piper	Aircraft	 Company.	 	 Other	 aircraft manufacturers	offer	Garmin's	products	as	optional	equipment.

# Competition

The	market	for	navigation,	communications	and	information	products	is	highly	competitive.		Garmin	believes	the	principal	competitive	factors	impacting	the market	for	its	products	are	design,	functionality,	quality	and	reliability,	customer	service,	brand,	price,	time-to-market	and	availability.		Garmin	believes	that	it	generally competes	favorably	in	each	of	these	areas.

Garmin	believes	that	its	principal	competitors	for	portable	automotive	products	are	TomTom	N.V.	and		MiTAC	Digital	Corporation	(which	distributes	products under	the	brand	names	of	Magellan,	Mio,	and	Navman).	and	Navigon	AG.		Garmin	believes	that	its	principal	competitors	for	outdoor	product	lines	are	Magellan	and Lowrance	 Electronics,	 Inc.,	 a	 subsidiary	 of	 Navico	 Holding	AS,	 ("Lowrance")	 For	 marine	 chartplotter	 products,	 Garmin	 believes	 that	 its	 principal	 competitors	 are Raymarine	Ltd.	("Raymarine"),	Furuno	Electronic	Company	("Furuno"),		Lowrance	and	Simrad	Yachting	AS	("Simrad").		For	Garmin's	fishfinder/depth	sounder	product lines,	Garmin	believes	that	its	principal	competitors	are	Lowrance,	Raymarine,	the	Humminbird	division	of	Johnson	Outdoors,	Inc.,	Simrad	and	Furuno.	For	Garmin's general	aviation	product	lines,	Garmin	considers	its	principal	competitors	to	be	Lowrance	(for	portable	GPS	units),	and	Honeywell,	Inc.,	Avidyne	Corporation,	L-3	Avionics Systems,	Rockwell	Collins,	Inc.,	Universal	Avionics	Systems	Corporation,	Chelton	Flight	Systems,	Aspen	Avionics,	and	Free	Flight	Systems	for	panel-mount	GPS	and display	units.		For	Garmin's	Family	Radio	Service	and	General	Mobile	Radio	Service	product	line,	Garmin	believes	that	its	principal	competitors	are	Motorola,	Inc. ("Motorola"),	Cobra	Electronics	Corporation	and	Midland	Radio	Corporation.	 	Garmin	believes	 that	 its	principal	competitors	for	smartphones	are	Apple,	Inc.,	HTC Corporation,	Nokia	Oyj,	Samsung	Corporation	and	Sony	Ericsson	Mobile	Communications	AB.

# Research	and	Development

Garmin's	product	 innovations	are	driven	by	 its	strong	emphasis	on	research	and	development	and	 the	close	partnership	between	Garmin's	engineering	and manufacturing	 teams.	 	 Garmin's	 products	 are	 created	 by	 its	 engineering	 and	 development	 staff,	 which	 numbered	 1,738	 people	 worldwide	 as	 of	 December	 27, 2008.	 	 Garmin's	 manufacturing	 staff	 includes	 manufacturing	 process	 engineers	 who	 work	 closely	 with	 Garmin's	 design	 engineers	 to	 ensure	 manufacturability	 and manufacturing	cost	control	for	 its	products.	Garmin's	development	staff	 includes	 industrial	designers,	as	well	as	software	engineers,	electrical	engineers,	mechanical engineers	and	cartographic	engineers.		Garmin	believes	the	industrial	design	of	its	products	has	played	an	important	role	in	Garmin's	success.		Once	a	development	project	is initiated	and	approved,	a	multi-disciplinary	team	is	created	to	design	the	product	and	transition	it	into	manufacturing.

Below	is	a	table	of	Garmin's	expenditures	on	research	and	development	over	the	last	three	fiscal	years.

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| ($'s\tin\tthousands) |  |  |  |
| Research\tand\tdevelopment | \t$206,109 | \t$159,406 | \t$113,314 |
| Percent\tof\tnet\tsales | 5.9% | 5.0% | 6.4% |

# Manufacturing	and	Operations

Garmin	believes	that	one	of	its	core	competencies	is	its	manufacturing	capability	at	its	Shijr,	Jhongli	and	LinKou,	Taiwan	facilities,	its	Olathe,	Kansas	facility,	and its	Salem,	Oregon	facility.		Garmin	believes	that	its	vertically	integrated	approach	has	provided	it	the	following	benefits:

Reduced time-to-market.	Utilizing	concurrent	engineering	techniques,	Garmin's	products	are	introduced	to	production	at	an	early	development	stage	and	the feedback	provided	by	manufacturing	is	incorporated	into	the	design	before	mass	production	begins.		In	this	manner,	Garmin	attempts	to	reduce	the	time	required	to	move	a product	from	its	design	phase	to	mass	production	deliveries,	with	improved	quality	and	yields.

Design	and	process	optimization.		Garmin	uses	its	manufacturing	resources	to	rapidly	prototype	design	concepts,	products	and	processes	in	order	to	achieve	higher efficiency,	lower	cost	and	better	value	for	customers.		Garmin's	ability	to	fully	explore	product	design	and	manufacturing	process	concepts	has	enabled	it	to	optimize	its designs	to	minimize	size	and	weight	in	GPS	devices	that	are	functional,	waterproof,	and	rugged.

Logistical agility.			Operating	its	own	manufacturing	facilities	helps	Garmin	minimize	problems,	such	as	component	shortages	and	long	component	lead	times which	are	common	in	the	electronics	industry.		Many	products	can	be	re-engineered	to	bypass	component	shortages	or	reduce	cost	and	the	new	designs	can	be	delivered	to market	quickly.		Garmin	reacts	rapidly	to	changes	in	market	demand	by	striving	to	maintain	a	safety	stock	of	long-lead	components	and	by	rescheduling	components	from one	product	line	to	another.

Garmin's	design,	manufacturing,	distribution,	and	servicing	processes	in	our	US,	Taiwan,	and	UK	facilities	are	certified	to	ISO	9001,	an	international	quality standard	developed	by	the	International	Organization	for	Standardization.	Garmin's	Taiwan	manufacturing	facilities	have	also	achieved	TS	16949	certification,	a	quality standard	for	automotive	suppliers.		In	addition,	Garmin's	aviation	operations	have	achieved	certification	to	AS9100,	the	quality	standard	for	the	aviation	industry.

	Garmin	(Europe)	Ltd	and	Garmin	Corporation	have	also	achieved	certification	of	their	environmental	management	systems	to	the	ISO14001	standard.		This certification	recognizes	that	Garmin's	UK	and	Taiwan	subsidiaries	have	systems	and	processes	in	place	to	minimize	or	prevent	harmful	effects	on	the	environment	and	to strive	continually	to	improve	its	environmental	performance.

# Materials

Garmin	purchases	components	for	its	products	from	a	number	of	suppliers	around	the	world.		For	certain	components,	Garmin	relies	on	sole	source	suppliers.		The	failure	of our	suppliers	to	deliver	components	in	sufficient	quantities	and	in	a	timely	manner	could	adversely	affect	our	business.

# Seasonality

Our	sales	are	subject	to	significant	seasonal	fluctuation.		Sales	of	our	consumer	products	are	generally	significantly	higher	in	the	fourth	quarter,	due	to	increased	demand	for automotive/mobile	products	during	the	holiday	buying	season,	and,	to	a	lesser	extent,	the	second	quarter,	due	to	increased	demand	during	the	spring	and	summer	marine season	and	the	Father's	Day/graduation	buying	season.		Sales	of	consumer	products	are	also	influenced	by	the	timing	of	the	release	of	new	products.		Our	aviation	products do	not	experience	much	seasonal	variation,	but	are	more	influenced	by	the	timing	of	the	release	of	new	products	when	the	initial	demand	is	typically	the	strongest.

# Backlog

Our	sales	are	generally	of	a	consumer	nature	and	there	is	a	relatively	short	cycle	between	order	and	shipment.		Therefore,	we	believe	that	backlog	information	is	not	material to	the	understanding	of	our	business.		We	typically	ship	most	orders	within	72	hours	of	receipt.

# Intellectual	Property

Our	success	and	ability	to	compete	is	dependent	in	part	on	our	proprietary	technology.		We	rely	on	a	combination	of	patent,	copyright,	trademark	and	trade	secret laws,	as	well	as	confidentiality	agreements,	to	establish	and	protect	our	proprietary	rights.		As	of	January	27,	2009,	we	held	307	U.S.	utility	patents,	77	U.S.	design	patents, 16	foreign	patents	and	26	foreign	registered	designs.			As	of	January	27,	2009,	we	held	127	U.S.	utility	patent	applications,	16	U.S.	design	patent	applications,	33	foreign patent	applications,	and	3	foreign	design	applications	pending.				In	addition,	Garmin	often	relies	on	licenses	of	intellectual	property	for	use	in	its	business.		For	example, Garmin	obtains	licenses	for	digital	cartography	technology	for	use	in	our	products	from	various	sources.	As	of	January	27,	2009,	we	held	96	U.S.	trademark	registrations and	191	foreign	trademark	registrations.				As	of	January	27,	2009,	we	had	11	U.S.	trademark	applications	and	46	foreign	trademark	applications	pending.

We	believe	that	our	continued	success	depends	on	the	intellectual	skills	of	our	employees	and	their	ability	to	continue	to	innovate.		Garmin	will	continue	to	file	and prosecute	patent	applications	when	appropriate	to	attempt	to	protect	Garmin's	rights	in	its	proprietary	technologies.		Garmin	was	selected	as	a	constituent	of	the	Ocean Tomo®	300	Patent	Index	and	The	Ocean	Tomo®	300	Patent	Growth	Index,	which	are	indices	that	recognize	companies	with	high	intellectual	property	value.

There	is	no	assurance	that	our	current	patents,	or	patents	which	we	may	later	acquire,	may	successfully	withstand	any	challenge,	in	whole	or	in	part.	It	is	also possible	that	any	patent	issued	to	us	may	not	provide	us	with	any	competitive	advantages,	or	that	the	patents	of	others	will	preclude	us	from	manufacturing	and	marketing certain	products.	Despite	our	efforts	to	protect	our	proprietary	rights,	unauthorized	parties	may	attempt	to	copy	aspects	of	our	products	or	to	obtain	and	use	information	that we	regard	as	proprietary.		Litigation	may	be	necessary	in	the	future	to	enforce	our	intellectual	property	rights,	to	protect	our	trade	secrets,	to	determine	the	validity	and	scope of	the	proprietary	rights	of	others	or	to	defend	against	claims	of	infringement	or	invalidity.

# Regulations

The	telecommunications	industry	is	highly	regulated,	and	the	regulatory	environment	in	which	Garmin	operates	is	subject	to	change.		In	accordance	with	Federal Communications	Commission	("FCC")	rules	and	regulations,	wireless	transceiver	and	cellular	handset	products	are	required	to	be	certified	by	the	FCC	and	comparable authorities	in	foreign	countries	where	they	are	sold.		Garmin's	products	sold	in	Europe	are	required	to	comply	with	relevant	directives	of	the	European	Commission.		A delay	in	receiving	required	certifications	for	new	products,	or	enhancements	to	Garmin's	products,	or	losing	certification	for	Garmin's	existing	products	could	adversely affect	our	business.				In	addition,	aviation	products	that	are	intended	for	installation	in	"type	certificated	aircraft"	are	required	to	be	certified	by	the	FAA,	its	European counterpart,	the	European	Aviation	Safety	Agency,	and	other	comparable	organizations	before	they	can	be	used	in	an	aircraft.

Because	Garmin	Corporation,	one	of	the	Company's	principal	subsidiaries,	is	located	in	Taiwan,	foreign	exchange	control	laws	and	regulations	of	Taiwan	with respect	to	remittances	into	and	out	of	Taiwan	may	have	an	impact	on	Garmin's	operations.		The	Taiwan	Foreign	Exchange	Control	Statute,	and	regulations	thereunder, provide	that	all	foreign	exchange	transactions	must	be	executed	by	banks	designated	to	handle	such	business	by	the	Ministry	of	Finance	of	Taiwan	and	by	the	Central	Bank of	the	Republic	of	China	(Taiwan),	also	referred	to	as	the	CBC.		Current	regulations	favor	trade-related	foreign	exchange	transactions.	Consequently,	foreign	currency earned	from	exports	of	merchandise	and	services	may	now	be	retained	and	used	freely	by	exporters,	while	all	foreign	currency	needed	for	the	import	of	merchandise	and services	may	be	purchased	freely	from	the	designated	foreign	exchange	banks.		Aside	from	trade-related	foreign	exchange	transactions,	Taiwan	companies	and	residents may,	without	foreign	exchange	approval,	remit	outside	and	into	Taiwan	foreign	currencies	of	up	to	$50	million	and	$5	million	respectively,	or	their	equivalent,	each calendar	year.		Currency	conversions	within	the	limits	are	processed	by	the	designated	banks	and	do	not	have	to	be	reviewed	and	approved	by	the	CBC.		The	above	limits apply	to	remittances	involving	a	conversion	between	New	Taiwan	Dollars	and	U.S.	Dollars	or	other	foreign	currencies.		The	CBC	typically	approves	foreign	exchange	in excess	of	the	limits	if	a	party	applies	with	the	CBC	for	review	and	presents	legitimate	business	reasons	justifying	the	currency	conversion.		A	requirement	is	also	imposed	on all	enterprises	to	register	all	medium	and	long-term	foreign	debt	with	the	CBC.

# Environmental	Matters

The	European	Union	("EU")	enacted	the	Restriction	of	the	Use	of	Certain	Hazardous	Substances	in	Electrical	and	Electronic	Equipment	Directive	("RoHS Directive")	and	the	Waste	Electrical	and	Electronic	Equipment	Directive	("WEEE	Directive").	The	RoHS	Directive	requires	EU	member	states	to	enact	laws	prohibiting	the use	of	certain	substances,	including	lead,	mercury,	cadmium	and	hexavalent	chromium,	in	certain	electronic	products	put	on	the	market	after	July	1,	2006.	The	WEEE Directive	requires	EU	member	states	to	enact	laws	that	were	to	go	into	effect	by	August	13,	2005	regulating	the	collection,	recovery	and	recycling	of	waste	from	certain electronic	products.	We	modified	the	design	of	our	products	and	our	manufacturing	processes	in	order	to	comply	with	such	laws	and	regulations.

The	EU	has	also	enacted	the	Registration,	Evaluation,	and	Authorization	of	Chemicals	("REACH")	regulation.		REACH	requires	manufacturers	and	importers	of articles	to	register	the	substances	contained	in	the	articles	if	the	substances	are	intended	to	be	released	under	normal	or	reasonably	foreseeable	conditions	of	use.		Because the	substances	contained	in	our	products	are	not	intended	to	be	released	under	normal	or	reasonably	foreseeable	conditions	of	use,	we	do	not	believe	we	or	the	importers	of our	products	have	an	obligation	under	REACH	to	register	those	substances.		It	is	possible,	however,	that	Garmin	could	participate	in	the	REACH	regulations	as	necessary	to support	possible	REACH	registration	requirements	of	the	recyclers	of	our	products.		REACH	also	imposes	notification	requirements	on	manufacturers	and	importers	of articles	if	the	articles	contain	"substances	of	very	high	concern."		We	have	established	a	program	in	order	to	comply	when	and	to	the	extent	necessary.

Portable	Garmin	products	which	use	AC/DC	adapters	as	an	option	for	battery	charging	would	require	submissions	of	energy-use	profiles	if	and	when	the	future implementing	measures	resulting	from	the	EU	EuP	(Energy	Using	Products)	Directive	define	such	products	as	being	within	their	scope.

Garmin	products	may	also	become	subject	to	further	energy	efficiency	requirements	if	and	when	required	under	U.S.	Federal	climate	change	legislation.

The	People's	Republic	of	China	has	enacted	legislation	which	is	widely	known	as	"China	RoHS".		The	first	phase	of	China	RoHS	took	effect	on	March	1,	2007 and	requires	the	disclosure	and	marking	of	certain	substances,	including	lead,	mercury,	cadmium	and	hexavalent	chromium	in	certain	electronic	products.	 	We	have established	a	program	in	order	to	comply	with	the	first	phase	of	China	RoHS.

Other	states	and	countries	have	promulgated	or	proposed	legislation	similar	to	the	RoHS	Directive	and/or	the	WEEE	Directive.		The	need	for	and	cost	of	our compliance	with	such	legislation	cannot	yet	be	determined	but	the	cost	could	be	substantial.

Several	states	have	enacted	laws	pertaining	to	the	reduction	of	mercury	in	products	and	the	labeling	of	mercury-containing	products,	including	the	member	states	of the	Interstate	Mercury	Education	and	Reduction	Clearinghouse	(IMERC).		Some	of	these	laws,	including	those	in	Connecticut,	New	York,	Vermont	and	Louisiana,	are applicable	to	certain	of	Garmin's	GPS	products.		We	have	established	an	ongoing	compliance	program	to	ensure	that	we	are	fulfilling	the	notice	and	labeling	requirements set	forth	in	the	relevant	mercury	legislation.

Garmin	has	implemented	multiple	Environmental	Management	System	("EMS")	policies	in	accordance	with	the	International	Organization	for	Standardization (ISO)	14001	standard	for	Environmental	Health	and	Safety	Management.		Garmin's	EMS	policies	set	forth	practices,	standards,	and	procedures	to	ensure	compliance	with applicable	environmental	laws	and	regulations	at	Garmin's	Kansas	headquarters	facility,	Garmin's	European	headquarters	facility,	and	Garmin's	Taiwan	manufacturing facility.

# Employees

As	of	December	31,	2008,	Garmin	had	8,919	full	and	part-time	employees	worldwide,	of	whom	2,896	were	in	the	United	States,	76	were	in	Canada,	5,253	were	in	Taiwan, 644	were	in	Europe,	and	50	were	in	other	global	locations.			Except	for	some	of	Garmin's	employees	in	Brazil,	Iceland	and	Sweden,	none	of	Garmin's	employees	are represented	by	a	labor	union	and	none	of	Garmin's	North	American	or	Taiwan	employees	are	covered	by	a	collective	bargaining	agreement.		Garmin	considers	its	employee relations	to	be	good.

# Item	1A.		Risk	Factors

The	risks	described	below	are	not	the	only	ones	facing	our	company.		Additional	risks	and	uncertainties	not	presently	known	to	us	or	that	we	currently	believe	to	be immaterial	may	also	impair	our	business	operations.		If	any	of	the	following	risks	occur,	our	business,	financial	condition	or	operating	results	could	be	materially	adversely affected.

# Risks	Related	to	the	Company

# Economic	conditions	and	uncertainty	could	adversely	affect	our	revenue	and	margins

								Global	financial	market	downturns	increased	significantly	during	the	fourth	quarter	of	2008.		Falling	equity	market	values,	depressed	housing	markets,	credit	market constraints,	weakened	consumer	confidence	and	increased	unemployment	have	created	fears	of	a	severe	recession.		Our	revenue	and	margins	depend	significantly	on	general economic	conditions	and	the	demand	for	products	in	the	markets	in	which	we	compete.		The	current	economic	weakness	and	constrained	consumer	and	business	spending has	resulted,	and	may	result	in	the	future,	in	decreased	revenue,	margins,	earnings	or	growth	rates	and	problems	with	our	ability	to	manage	inventory	levels	and	collect customer	receivables.	In	addition,	financial	difficulties	experienced	by	our	retailer	and	OEM	customers	have	resulted,	and	could	result	in	the	future,	in	significant	bad	debt write-offs	and	additions	to	reserves	in	our	receivables	and	could	have	an	adverse	affect	on	our	results	of	operations.		The	current	economic	recession	also	may	lead	to restructuring	actions	and	associated	expenses.

# Our	financial	results	are	highly	dependent	on	the	automotive/mobile	segment,	which	now	represents	over	70%	of	our	revenues	and	may	be	maturing	leading	to lesser	growth	than	we	have	experienced	in	the	past.

																We	have	experienced	substantial	growth	in	the	automotive/mobile	segment	of	our	business	in	recent	years	as	the	products	have	become	mass-market	consumer electronics	in	both	Europe	and	North	America.		This	market	growth	may	now	be	slowing	as	penetration	rates	increase	and	competing	technologies	emerge.		Slowing growth,	along	with	the	significant	price	reductions	that	have	occurred	during	the	past	two	years,	could	result	in	lower	revenues.		As	margins	have	also	declined	in	this segment,	slowing	growth	may	also	result	in	lower	earnings	per	share.

# The	demand	for	personal	navigation	devices	(PNDs)	may	be	eroded	by	replacement	technologies	becoming	available	on	mobile	handsets	and	factory-installed systems	in	new	autos.

																We	have	experienced	substantial	growth	in	the	automotive/mobile	segment	which	has	resulted	in	GPS/navigation	technologies	being	incorporated	into	competing devices	such	as	mobile	handsets	and	new	automobiles	through	factory-installed	systems.		Mobile	handsets	are	frequently	GPS-enabled	and	many	companies	are	now offering	navigation	software	for	mobile	devices.		The	acceptance	of	this	technology	by	consumers	could	slow	our	growth	and	further	reduce	margins.		Navigation	systems are	becoming	more	prevalent	as	optional	equipment	on	new	automobiles.		Increased	navigation	penetration	on	new	automobiles	could	slow	our	growth	and	further	reduce margins.

# Best	Buy	is	a	significant	customer,	representing	over	10%	of	net	sales.		Accordingly,	our	revenues	and	profitability	will	be	adversely	impacted	if	Best	Buy's business	declines	or	if	Best	Buy	is	unable	to	pay	timely.

Best	Buy	is	our	largest	customer	and	accounted	for	12.0%	of	our	total	net	sales	in	2008.		If	Best	Buy's	business	declines	due	to	the	economic	conditions,	market share	losses	or	other	factors,	our	revenues	and	profitability	will	be	adversely	impacted.		In	addition,	if	Best	Buy's	liquidity	erodes	for	any	of	the	reasons	discussed	above	or	a tightening	in	the	credit	markets	and	they	are	unwilling	or	unable	to	pay	timely,	our	profitability	will	be	adversely	impacted.

# Many	of	our	Products	Rely	on	the	Global	Positioning	System

The	Global	Positioning	System	is	a	satellite-based	navigation	and	positioning	system	consisting	of	a	constellation	of	orbiting	satellites.		The	satellites	and	their ground	control	and	monitoring	stations	are	maintained	and	operated	by	the	United	States	Department	of	Defense.		The	Department	of	Defense	does	not	currently	charge users	for	access	to	the	satellite	signals.		These	satellites	and	their	ground	support	systems	are	complex	electronic	systems	subject	to	electronic	and	mechanical	failures	and possible	 sabotage.	 The	 satellites	 were	 originally	 designed	 to	 have	 lives	 of	 7.5	 years	 and	 are	 subject	 to	 damage	 by	 the	 hostile	 space	 environment	 in	 which	 they operate.		However,	of	the	current	deployment	of	satellites	in	place,	some	have	been	operating	for	more	than	13	years.

If	a	significant	number	of	satellites	were	to	become	inoperable,	unavailable	or	are	not	replaced,	it	would	impair	the	current	utility	of	our	Global	Positioning	System products	and	would	have	a	material	negative	effect	on	our	business.		In	addition,	there	can	be	no	assurance	that	the	U.S.	government	will	remain	committed	to	the	operation and	maintenance	of	Global	Positioning	System	satellites	over	a	long	period,	or	that	the	policies	of	the	U.S.	government	that	provide	for	the	use	of	the	Global	Positioning System	without	charge	and	without	accuracy	degradation	will	remain	unchanged.		Because	of	the	increasing	commercial	applications	of	the	Global	Positioning	System, other	U.S.	government	agencies	may	become	involved	in	the	administration	or	the	regulation	of	the	use	of	Global	Positioning	System	signals.				However,	in	a	presidential policy	statement	issued	in	December	2004,	the	Bush	administration	indicated	that	the	U.S.	is	committed	to	supporting	and	improving	the	Global	Positioning	System	and	will continue	providing	it	free	from	direct	user	fees.

Some	of	our	products	also	use	signals	from	systems	that	augment	GPS,	such	as	the	Wide	Area	Augmentation	System	(WAAS).		WAAS	is	operated	by	the	FAA. Any	curtailment	of	the	operating	capability	of	WAAS	could	result	in	decreased	user	capability	for	many	of	our	aviation	products,	thereby	impacting	our	markets.

Any	of	the	foregoing	factors	could	affect	the	willingness	of	buyers	of	our	products	to	select	Global	Positioning	System-based	products	instead	of	products	based	on competing	technologies.

# A	shut	down	of	U.S.	airspace	or	imposition	of	restrictions	on	general	aviation	would	harm	our	business.

Following	the	September	11,	2001	terrorist	attacks,	the	FAA	ordered	all	aircraft	operating	in	the	U.S.	to	be	grounded	for	several	days.		In	addition	to	this	shut	down	of	U.S. airspace,	the	general	aviation	industry	was	further	impacted	by	the	additional	restrictions	implemented	by	the	FAA	on	those	flights	that	fly	utilizing	Visual	Flight	Rules (VFR).		The	FAA	restricted	VFR	flight	inside	30	enhanced	Class	B	(a	20-25	mile	radius	around	the	30	largest	metropolitan	areas	in	the	USA)	airspace	areas.		The	Aircraft Owners	and	Pilots	Association	(AOPA)	estimated	that	these	restrictions	affected	approximately	41,800	general	aviation	aircraft	based	at	282	airports	inside	the	30	enhanced Class	B	airspace	areas.		The	AOPA	estimates	that	approximately	90%	of	all	general	aviation	flights	are	conducted	VFR,	and	that	only	15%	of	general	aviation	pilots	are current	to	fly	utilizing	Instrument	Flight	Rules	(IFR).

The	 shut	 down	 of	 U.S.	 airspace	 following	 September	 11,	 2001	 caused	 reduced	 sales	 of	 our	 general	 aviation	 products	 and	 delays	 in	 the	 shipment	 of	 our	 products manufactured	in	our	Taiwan	manufacturing	facility	to	our	distribution	facility	in	Olathe,	Kansas,	thereby	adversely	affecting	our	ability	to	supply	new	and	existing	products to	our	dealers	and	distributors.

Any	future	shut	down	of	U.S.	airspace	or	imposition	of	restrictions	on	general	aviation	could	have	a	material	adverse	effect	on	our	business	and	financial	results.

# Any	reallocation	of	radio	frequency	spectrum	could	cause	interference	with	the	reception	of	Global	Positioning	System	signals.	This	interference	could	harm	our business.

Our	 Global	 Positioning	 System	 technology	 is	 dependent	 on	 the	 use	 of	 the	 Standard	 Positioning	 Service	 (SPS)	 provided	 by	 the	 U.S.	 Government's	 Global Positioning	System	satellites.		The	Global	Positioning	System	operates	in	radio	frequency	bands	that	are	globally	allocated	for	radio	navigation	satellite	services.		The assignment	of	spectrum	is	controlled	by	an	international	organization	known	as	the	International	Telecommunications	Union	(''ITU'').		The	Federal	Communications Commission	(''FCC'')	is	responsible	for	the	assignment	of	spectrum	for	non-government	use	in	the	United	States	in	accordance	with	ITU	regulations.		Any	ITU	or	FCC reallocation	of	radio	frequency	spectrum,	including	frequency	band	segmentation	or	sharing	of	spectrum,	could	cause	interference	with	the	reception	of	Global	Positioning System	signals	and	may	materially	and	adversely	affect	the	utility	and	reliability	of	our	products,	which	would,	in	turn,	have	a	material	adverse	effect	on	our	operating results.		In	addition,	emissions	from	mobile	satellite	service	and	other	equipment	operating	in	adjacent	frequency	bands	or	inband	may	materially	and	adversely	affect	the utility	and	reliability	of	our	products,	which	could	result	in	a	material	adverse	effect	on	our	operating	results.	The		FCC		continually		receives		proposals		for		new technologies	and	services,	such	as	ultra-wideband	 	technologies,	 	which	may	seek	to	operate	in,	or	across,	 	the	radio	 	frequency	 	bands	currently	used	by	the	GPS SPS.		Adverse		decisions	by	the	FCC	that	result	in	harmful	interference	to	the	delivery	of	the	GPS	SPS	may		materially		and		adversely		affect	the	utility		and		reliability		of our		products,		which		could		result	in	a	material	adverse	effect	on	our	business	and	financial	condition.

# If	we	are	not	successful	in	the	continued	development,	introduction	or	timely	manufacture	of	new	products,	demand	for	our	products	could	decrease.

We	expect	that	a	significant	portion	of	our	future	revenue	will	continue	to	be	derived	from	sales	of	newly	introduced	products.		The	market	for	our	products	is characterized	by	rapidly	changing	technology,	evolving	industry	standards	and	changes	in	customer	needs.		If	we	fail	to	introduce	new	products,	or	to	modify	or	improve	our existing	products,	in	response	to	changes	in	technology,	industry	standards	or	customer	needs,	our	products	could	rapidly	become	less	competitive	or	obsolete.		We	must continue	 to	make	significant	 investments	 in	research	and	development	 in	order	 to	continue	 to	develop	new	products,	enhance	existing	products	and	achieve	market acceptance	for	such	products.		However,	there	can	be	no	assurance	that	development	stage	products	will	be	successfully	completed	or,	if	developed,	will	achieve	significant customer	acceptance.

If	we	are	unable	to	successfully	develop	and	introduce	competitive	new	products,	and	enhance	our	existing	products,	our	future	results	of	operations	would	be adversely	affected.		Our	pursuit	of	necessary	technology	may	require	substantial	time	and	expense.		We	may	need	to	license	new	technologies	to	respond	to	technological change.		These	licenses	may	not	be	available	to	us	on	terms	that	we	can	accept	or	may	materially	change	the	gross	profits	that	we	are	able	to	obtain	on	our	products.	We	may not	succeed	in	adapting	our	products	to	new	technologies	as	they	emerge.		Development	and	manufacturing	schedules	for	technology	products	are	difficult	to	predict,	and there	can	be	no	assurance	that	we	will	achieve	timely	initial	customer	shipments	of	new	products.		The	timely	availability	of	these	products	in	volume	and	their	acceptance by	customers	are	important	to	our	future	success.		From	time	to	time	we	have	experienced	delays	in	shipping	certain	of	our	new	products	and	any	future	delays,	whether	due to	product	development	delays,	manufacturing	delays,	lack	of	market	acceptance,	delays	in	regulatory	approval,	or	otherwise,	could	have	a	material	adverse	effect	on	our results	of	operations.

# If	we	do	not	correctly	anticipate	demand	for	our	products,	we	may	not	be	able	to	secure	sufficient	quantities	or	cost-effective	production	of	our	products	or	we could	have	costly	excess	production	or	inventories.

We	have	generally	been	able	to	increase	production	to	meet	this	increasing	demand.		However,	the	demand	for	our	products	depends	on	many	factors	and	will	be difficult	to	forecast.		We	expect	that	it	will	become	more	difficult	to	forecast	demand	as	we	introduce	and	support	multiple	products,	as	competition	in	the	market	for	our products	intensifies	and	as	the	markets	for	some	of	our	products	mature	to	the	mass	market	category.		Significant	unanticipated	fluctuations	in	demand	could	cause	the following	problems	in	our	operations:

· If	demand	increases	beyond	what	we	forecast,	we	would	have	to	rapidly	increase	production.	We	would	depend	on	suppliers	to	provide	additional	volumes	of components	and	those	suppliers	might	not	be	able	to	increase	production	rapidly	enough	to	meet	unexpected	demand.

· Rapid	increases	 in	 production	 levels	 to	 meet	 unanticipated	 demand	 could	 result	in	higher	costs	for	manufacturing	and	supply	of	components	and	other expenses.		These	higher	costs	could	lower	our	profit	margins.		Further,	if	production	is	increased	rapidly,	manufacturing	quality	could	decline,	which	may	also lower	our	margins	and	reduce	customer	satisfaction.

· If	forecasted	demand	does	not	develop,	we	could	have	excess	production	resulting	in	higher	inventories	of	finished	products	and	components,	which	would	use cash	and	could	lead	to	write-offs	of	some	or	all	of	the	excess	inventories.		Lower	than	forecasted	demand	could	also	result	in	excess	manufacturing	capacity	or reduced	manufacturing	efficiencies	at	our	facilities,	which	could	result	in	lower	margins.

# We	may	become	subject	to	significant	product	liability	costs.

If	our	aviation	products	malfunction	or	contain	errors	or	defects,	airplane	collisions	or	crashes	could	occur	resulting	in	property	damage,	personal	injury	or death.		Malfunctions	or	errors	or	defects	in	our	marine	navigational	products	could	cause	boats	to	run	aground	or	cause	other	wreckage,	personal	injury	or	death.		If	our automotive	or	marine	products	contain	defects	or	errors	in	the	mapping	supplied	by	third-party	map	providers	or	if	our	users	do	not	heed	our	warnings	about	the	proper	use of	these	products,	collisions	or	accidents	could	occur	resulting	in	property	damage,	personal	injury	or	death.		If	any	of	these	events	occurs,	we	could	be	subject	to	significant liability	for	personal	injury	and	property	damage	and	under	certain	circumstances	could	be	subject	to	a	judgment	for	punitive	damages.		We	maintain	insurance	against accident-related	risks	involving	our	products.		However,	there	can	be	no	assurance	that	such	insurance	would	be	sufficient	to	cover	the	cost	of	damages	to	others	or	that	such insurance	will	continue	to	be	available	at	commercially	reasonable	rates.		In	addition,	insurance	coverage	generally	will	not	cover	awards	of	punitive	damages	and	may	not cover	the	cost	of	associated	legal	fees	and	defense	costs,	which	could	result	in	lower	margins.		If	we	are	unable	to	maintain	sufficient	insurance	to	cover	product	liability costs	or	if	our	insurance	coverage	does	not	cover	the	award,	this	could	have	a	materially	adverse	impact	on	our	business,	financial	condition	and	results	of	operations.

We	depend	on	our	suppliers,	some	of	which	are	the	sole	source	for	specific	components,	and	our	production	would	be	seriously	harmed	if	these	suppliers	are	not able	to	meet	our	demand	and	alternative	sources	are	not	available,	or	if	the	costs	of	components	rise.

We	are	dependent	on	third	party	suppliers	for	various	components	used	in	our	current	products.		Some	of	the	components	that	we	procure	from	third	party	suppliers include	 semiconductors	 and	 electroluminescent	 panels,	 liquid	 crystal	 displays,	 memory	 chips,	 batteries	 and	 microprocessors.	 	 The	 cost,	 quality	 and	 availability	 of components	are	essential	to	the	successful	production	and	sale	of	our	products.		Some	components	we	use	are	from	sole	source	suppliers.	Certain	application-specific integrated	circuits	incorporating	our	proprietary	designs	are	manufactured	for	us	by	sole	source	suppliers.		Alternative	sources	may	not	be	currently	available	for	these	sole source	components.

In	the	past	we	have	experienced	shortages	of	liquid	crystal	displays	and	other	components.		In	addition,	if	there	are	shortages	in	supply	of	components,	the	costs	of such	components	may	rise.	If	suppliers	are	unable	to	meet	our	demand	for	components	on	a	timely	basis	and	if	we	are	unable	to	obtain	an	alternative	source	or	if	the	price	of the	alternative	source	is	prohibitive,	or	if	the	costs	of	components	rise,	our	ability	to	maintain	timely	and	cost-effective	production	of	our	products	would	be	seriously harmed.

# We	depend	on	third	party	licensors	for	the	digital	map	data	contained	in	our	automotive/mobile	products,	and	our	business	and/or	gross	margins	could	be harmed	if	we	become	unable	to	continue	licensing	such	mapping	data	or	if	the	royalty	costs	for	such	data	rise.

We	license	digital	mapping	data	for	use	in	our	products	from	various	sources.		There	are	only	a	limited	number	of	suppliers	of	mapping	data	for	each	geographical region.		The	two	largest	digital	map	suppliers	are	NAVTEQ	Corporation	and	Tele	Atlas	N.V.		NAVTEQ	Corporation	is	owned	by	Nokia	Oyj	and	Tele	Atlas	N.V.	is	owned by	TomTom	N.V.		Nokia	and	TomTom	are	both	competitors	of	Garmin.

	Although	we	do	not	foresee	difficulty	in	continuing	to	license	data	at	favorable	pricing	due	to	the	long	term	license	extension	signed	between	Garmin	and NAVTEQ	in	November	2007	(extending	our	NAVTEQ	license	agreement	through	2015	with	an	option	to	extend	through	2019),	if	we	are	unable	to	continue	licensing	such mapping	data	and	are	unable	to	obtain	an	alternative	source,	or	if	the	nature	of	our	relationships	with	NAVTEQ	changes	detrimentally,	our	ability	to	supply	mapping	data for	use	in	our	products	would	be	seriously	harmed.

# We	rely	on	independent	dealers	and	distributors	to	sell	our	products,	and	disruption	to	these	channels	would	harm	our	business.

Because	we	sell	a	majority	of	our	products	to	independent	dealers	and	distributors,	we	are	subject	to	many	risks,	including	risks	related	to	their	inventory	levels	and support	for	our	products.		In	particular,	our	dealers	and	distributors	maintain	significant	levels	of	our	products	in	their	inventories.		If	dealers	and	distributors	attempt	to reduce	their	levels	of	inventory	or	if	they	do	not	maintain	sufficient	levels	to	meet	customer	demand,	our	sales	could	be	negatively	impacted.

Many	of	our	dealers	and	distributors	also	sell	products	offered	by	our	competitors.		If	our	competitors	offer	our	dealers	and	distributors	more	favorable	terms,	those dealers	and	distributors	may	de-emphasize	or	decline	to	carry	our	products.	In	the	future,	we	may	not	be	able	to	retain	or	attract	a	sufficient	number	of	qualified	dealers	and distributors.		If	we	are	unable	to	maintain	successful	relationships	with	dealers	and	distributors	or	to	expand	our	distribution	channels,	our	business	will	suffer.

# Failure	to	manage	our	growth	and	expansion	effectively	could	adversely	impact	our	business.

Our	ability	to	successfully	offer	our	products	and	implement	our	business	plan	in	a	rapidly	evolving	market	requires	an	effective	planning	and	management process.		We	continue	to	increase	the	scope	of	our	operations	domestically	and	internationally	and	have	grown	our	shipments	and	headcount	substantially.		This	growth	has placed,	and	our	anticipated	growth	in	future	operations	will	continue	to	place,	a	significant	strain	on	our	management	systems	and	resources.

# Our	business	may	suffer	if	we	are	not	able	to	hire	and	retain	sufficient	qualified	personnel	or	if	we	lose	our	key	personnel.

Our	 future	 success	 depends	 partly	 on	 the	 continued	 contribution	 of	 our	 key	 executive,	 engineering,	 sales,	 marketing,	 manufacturing	 and	 administrative personnel.		We	currently	do	not	have	employment	agreements	with	any	of	our	key	executive	officers.		We	do	not	have	key	man	life	insurance	on	any	of	our	key	executive officers	and	do	not	currently	intend	to	obtain	such	insurance.		The	loss	of	the	services	of	any	of	our	senior	level	management,	or	other	key	employees,	could	harm	our business.		Recruiting	and	retaining	the	skilled	personnel	we	require	to	maintain	and	grow	our	market	position	may	be	difficult.		For	example,	in	some	recent	years	there	has been	a	nationwide	shortage	of	qualified	electrical	engineers	and	software	engineers	who	are	necessary	for	us	to	design	and	develop	new	products,	and	therefore,	it	has sometimes	been	challenging	to	recruit	such	personnel.		If	we	fail	to	hire	and	retain	qualified	employees,	we	may	not	be	able	to	maintain	and	expand	our	business.

# Gross	margins	for	our	products	may	fluctuate	or	erode.

Gross	margins	on	our	automotive/mobile	products	have	been	declining	due	to	price	reductions	in	the	increasingly	competitive	market	for	personal	navigation devices	(PNDs).	We	expect	that	gross	margins	on	automotive/mobile	products	will	continue	to	erode.		In	addition,	our	overall	gross	margin	may	fluctuate	from	period	to period	due	to	a	number	of	factors,	including	product	mix,	competition	and	unit	volumes.		In	particular,	the	average	selling	prices	of	a	specific	product	tend	to	decrease	over that	product's	life.		To	offset	such	decreases,	we	intend	to	rely	primarily	on	component	cost	reduction,	obtaining	yield	improvements	and	corresponding	cost	reductions	in the	 manufacture	 of	 existing	 products	 and	 on	 introducing	 new	 products	 that	 incorporate	 advanced	 features	 and	 therefore	 can	 be	 sold	 at	 higher	 average	 selling prices.		However,	there	can	be	no	assurance	that	we	will	be	able	to	obtain	any	such	yield	improvements	or	cost	reductions	or	introduce	any	such	new	products	in	the future.		To	the	extent	that	such	cost	reductions	and	new	product	introductions	do	not	occur	in	a	timely	manner	or	our	products	do	not	achieve	market	acceptance,	our business,	financial	condition	and	results	of	operations	could	be	materially	adversely	affected.

# Our	quarterly	operating	results	are	subject	to	fluctuations	and	seasonality.

Our	operating	results	are	difficult	to	predict.	Our	future	quarterly	operating	results	may	fluctuate	significantly.		If	such	operating	results	decline,	the	price	of	our stock	would	likely	decline.		As	we	expand	our	operations,	our	operating	expenses,	particularly	our	advertising	and	research	and	development	costs,	may	increase	as	a percentage	of	our	sales.		If	revenues	decrease	and	we	are	unable	to	reduce	those	costs	rapidly,	our	operating	results	would	be	negatively	affected.

Historically,	our	revenues	have	usually	been	weaker	in	the	first	and	third	quarters	of	each	fiscal	year	and	have,	from	time	to	time,	been	lower	than	the	preceding quarter.		Our	devices	are	highly	consumer-oriented,	and	consumer	buying	is	traditionally	lower	in	these	quarters.		Sales	of	certain	of	our	marine	and	automotive	products tend	to	be	higher	in	our	second	fiscal	quarter	due	to	increased	consumer	spending	for	such	products	during	the	recreational	marine,	fishing,	and	travel	season.		Sales	of	our automotive/mobile	products	also	have	been	higher	in	our	fourth	fiscal	quarter	due	to	increased	consumer	spending	patterns	on	electronic	devices	during	the	holiday season.	In	addition,	we	attempt	to	time	our	new	product	releases	to	coincide	with	relatively	higher	consumer	spending	in	the	second	and	fourth	fiscal	quarters,	which contributes	to	these	seasonal	variations.

# Adverse	economic	conditions	may	harm	our	investments.

Inflation	or	other	changes	in	general	economic	conditions	could	adversely	affect	our	investment	portfolio.

# Our	quarterly	financial	statements	will	reflect	fluctuations	in	foreign	currency	translation.

Our	Taiwan	subsidiary	holds,	and	is	expected	to	continue	to	hold,	significant	cash,	cash	equivalents,	and	marketable	securities	and	receivables	denominated	in	U.S. Dollars.		Because	the	U.S.	Dollar	is	the	primary	currency	for	our	business	and	in	order	to	substantially	reduce	the	economic	consequence	of	any	variation	in	the	exchange rate	for	the	U.S.	Dollar	and	the	Taiwan	Dollar	on	these	assets,	management	expects	that	the	Taiwan	subsidiary	will	continue	to	hold	the	majority	of	these	assets	in	U.S. Dollar	or	U.S.	Dollar	denominated	instruments.		Nonetheless,	U.S.	GAAP	requires	the	Company	at	the	end	of	each	accounting	period	to	translate	into	Taiwan	Dollars	all such	 U.S.	 Dollar	 denominated	 assets	 held	 by	 our	 Taiwan	 subsidiary.	 	 This	 translation	 is	 required	 because	 the	 Taiwan	 Dollar	 is	 the	 functional	 currency	 of	 the subsidiary.		This	U.S.	GAAP-mandated	translation	will	cause	us	to	recognize	gain	or	loss	on	our	financial	statements	as	the	Taiwan	Dollar/U.S.	Dollar	exchange	rate varies.		Such	gain	or	loss	will	create	variations	in	our	earnings	per	share.		Because	there	is	minimal	cash	impact	caused	by	such	exchange	rate	variations,	management	will continue	to	focus	on	the	Company's	operating	performance	before	the	impact	of	the	foreign	currency	translation.

# If	we	are	unable	to	compete	effectively	with	existing	or	new	competitors,	our	resulting	loss	of	competitive	position	could	result	in	price	reductions,	fewer	customer orders,	reduced	margins	and	loss	of	market	share.

The	markets	for	our	products	are	highly	competitive,	and	we	expect	competition	to	increase	in	the	future.	Some	of	our	competitors	have	significantly	greater financial,	technical	and	marketing	resources	than	we	do.		These	competitors	may	be	able	to	respond	more	rapidly	to	new	or	emerging	technologies	or	changes	in	customer requirements.		They	may	also	be	able	to	devote	greater	resources	to	the	development,	promotion	and	sale	of	their	products.		Increased	competition	could	result	in	price reductions,	fewer	customer	orders,	reduced	margins	and	loss	of	market	share.		Our	failure	to	compete	successfully	against	current	or	future	competitors	could	seriously	harm our	business,	financial	condition	and	results	of	operations.

# Our	intellectual	property	rights	are	important	to	our	operations,	and	we	could	suffer	loss	if	they	infringe	upon	other's	rights	or	are	infringed	upon	by	others.

We	rely	on	a	combination	of	patents,	copyrights,	trademarks	and	trade	secrets,	confidentiality	provisions	and	licensing	arrangements	to	establish	and	protect	our proprietary	rights.		To	this	end,	we	hold	rights	to	a	number	of	patents	and	registered	trademarks	and	regularly	file	applications	to	attempt	to	protect	our	rights	in	new technology	and	trademarks.	 	However,	there	is	no	guarantee	that	our	patent	applications	will	become	issued	patents,	or	that	our	trademark	applications	will	become registered	trademarks.		Moreover,	even	if	approved,	our	patents	or	trademarks	may	thereafter	be	successfully	challenged	by	others	or	otherwise	become	invalidated	for	a variety	of	reasons.			Thus,	any	patents	or	trademarks	we	currently	have	or	may	later	acquire	may	not	provide	us	a	significant	competitive	advantage.

Third	parties	may	claim	that	we	are	infringing	their	intellectual	property	rights.		Such	claims	could	have	a	material	adverse	effect	on	our	business	and	financial condition.		From	time	to	time	we	receive	letters	alleging	infringement	of	patents,	trademarks	or	other	intellectual	property	rights.		Litigation	concerning	patents	or	other intellectual	property	 is	 costly	 and	 time	 consuming.	 	We	 may	 seek	 licenses	 from	 such	 parties,	 but	 they	 could	 refuse	 to	 grant	 us	 a	 license	 or	 demand	 commercially unreasonable	terms.		We	might	not	have	sufficient	resources	to	pay	for	the	licenses.		Such	infringement	claims	could	also	cause	us	to	incur	substantial	liabilities	and	to suspend	or	permanently	cease	the	use	of	critical	technologies	or	processes	or	the	production	or	sale	of	major	products.

# Failure	to	obtain	required	certifications	of	our	products	on	a	timely	basis	could	harm	our	business.

We	have	certain	products,	especially	in	our	aviation	segment,	that	are	subject	to	governmental	and	similar	certifications	before	they	can	be	sold.		For	example, FAA	certification	is	required	for	all	of	our	aviation	products	that	are	intended	for	installation	in	type	certificated	aircraft.	 	To	the	extent	required,	certification	is	an expensive	and	time-consuming	process	that	requires	significant	focus	and	resources.		An	inability	to	obtain,	or	excessive	delay	in	obtaining,	such	certifications	could	have an	adverse	effect	on	our	ability	to	introduce	new	products	and,	for	certain	aviation	OEM	products,	our	customers'	ability	to	sell	airplanes.		Therefore,	such	inabilities	or delays	could	adversely	affect	our	operating	results.		In	addition,	we	cannot	assure	you	that	our	certified	products	will	not	be	decertified.		Any	such	decertification	could	have an	adverse	effect	on	our	operating	results.

# Our	business	is	subject	to	economic,	political	and	other	risks	associated	with	international	sales	and	operations.

Our	business	is	subject	to	risks	associated	with	doing	business	internationally.		We	estimate	that	approximately	39%	of	our	net	sales	in	the	fiscal	year	ended December	27,	2008	represented	products	shipped	to	international	destinations.		Accordingly,	our	business,	financial	condition	and	results	of	operations	could	be	harmed	by	a variety	of	international	factors,	including:

· changes	in	foreign	currency	exchange	rates;

· changes	in	a	specific	country's	or	region's	political	or	economic	conditions,	particularly	in	emerging	markets;

· trade	protection	measures	and	import	or	export	licensing	requirements;

· potentially	negative	consequences	from	changes	in	tax	laws;

· difficulty	in	managing	widespread	sales	and	manufacturing	operations;

· acts	of	war,	terrorism,	or	political	unrest;	and

· less	effective	protection	of	intellectual	property.

# We	may	experience	unique	economic	and	political	risks	associated	with	companies	that	operate	in	Taiwan.

Relations	between	Taiwan	and	the	People's	Republic	of	China,	also	referred	to	as	the	PRC,	and	other	factors	affecting	the	political	or	economic	conditions	of Taiwan	in	the	future	could	materially	adversely	affect	our	business,	financial	condition	and	results	of	operations	and	the	market	price	and	the	liquidity	of	our	shares.		Our principal	manufacturing	facilities	where	we	manufacture	all	of	our	products,	except	our	panel-mounted	aviation	products,	are	located	in	Taiwan.

Taiwan	has	a	unique	international	political	status.		The	PRC	asserts	sovereignty	over	all	of	China,	including	Taiwan,	certain	other	islands	and	all	of	mainland China.		The	PRC	government	does	not	recognize	the	legitimacy	of	the	Taiwan	government.		Although	significant	economic	and	cultural	relations	have	been	established during	recent	years	between	Taiwan	and	the	PRC,	the	PRC	government	has	indicated	that	it	may	use	military	force	to	gain	control	over	Taiwan	in	certain	circumstances, such	as	the	declaration	of	independence	by	Taiwan.		Relations	between	Taiwan	and	the	PRC	have	on	occasion	adversely	affected	the	market	value	of	Taiwanese	companies and	could	negatively	affect	our	operations	in	Taiwan	in	the	future.

# There	is	uncertainty	as	to	our	shareholders'	ability	to	enforce	certain	foreign	civil	liabilities	in	the	Cayman	Islands	and	Taiwan.

We	are	a	Cayman	Islands	company	and	a	substantial	portion	of	our	assets	are	located	outside	the	United	States,	particularly	in	Taiwan.		As	a	result,	it	may	be difficult	to	effect	service	of	process	within	the	United	States	upon	us.		In	addition,	there	is	uncertainty	as	to	whether	the	courts	of	the	Cayman	Islands	or	Taiwan	would recognize	or	enforce	judgments	of	United	States	courts	obtained	against	us	predicated	upon	the	civil	liability	provisions	of	the	securities	laws	of	the	United	States	or	any state	thereof,	or	be	competent	to	hear	original	actions	brought	in	the	Cayman	Islands	or	Taiwan	against	us	predicated	upon	the	securities	laws	of	the	United	States	or	any state	thereof.

# Our	shareholders	may	face	difficulties	in	protecting	their	interests	because	we	are	incorporated	under	Cayman	Islands	law.

Our	corporate	affairs	are	governed	by	our	Memorandum	and	Articles	of	Association,	as	amended,	and	by	the	Companies	Law	(2007	Revision)	and	the	common law	of	the	Cayman	Islands.		The	rights	of	our	shareholders	and	the	fiduciary	responsibilities	of	our	directors	under	Cayman	Islands	law	are	not	as	clearly	established	as under	statutes	or	judicial	precedent	in	existence	in	jurisdictions	in	the	United	States.		Therefore,	you	may	have	more	difficulty	in	protecting	your	interests	in	the	face	of actions	by	the	management,	directors	or	our	controlling	shareholders	than	would	shareholders	of	a	corporation	incorporated	in	a	jurisdiction	in	the	United	States,	due	to	the comparatively	less	developed	nature	of	Cayman	Islands	law	in	this	area.

Unlike	many	jurisdictions	in	the	United	States,	Cayman	Islands	law	does	not	specifically	provide	for	shareholder	appraisal	rights	on	a	merger	or	consolidation	of	a company.	This	may	make	it	more	difficult	for	you	to	assess	the	value	of	any	consideration	you	may	receive	in	a	merger	or	consolidation	or	to	require	that	the	offeror	give you	additional	consideration	if	you	believe	the	consideration	offered	is	insufficient.

Shareholders	of	Cayman	Islands	exempted	companies	such	as	Garmin	have	no	general	rights	under	Cayman	Islands	law	to	inspect	corporate	records	and	accounts or	to	obtain	copies	of	lists	of	shareholders	of	the	company.	This	may	make	it	more	difficult	for	you	to	obtain	the	information	needed	to	establish	any	facts	necessary	for	a shareholder	motion	or	to	solicit	proxies	from	other	shareholders	in	connection	with	a	proxy	contest.

Subject	to	limited	exceptions,	under	Cayman	Islands	law,	a	minority	shareholder	may	not	bring	a	derivative	action	against	the	board	of	directors.	Our	Cayman Islands	counsel	has	advised	that	they	are	not	aware	of	any	reported	class	action	or	derivative	action	having	been	brought	in	a	Cayman	Islands	court.

# We	may	pursue	strategic	acquisitions,	investments,	strategic	partnerships	or	other	ventures,	and	our	business	could	be	materially	harmed	if	we	fail	to	successfully identify,	complete	and	integrate	such	transactions.

We	intend	to	evaluate	acquisition	opportunities	and	opportunities	to	make	investments	in	complementary	businesses,	technologies,	services	or	products,	or	to	enter into	strategic	partnerships	with	parties	who	can	provide	access	to	those	assets,	additional	product	or	services	offerings,	additional	distribution	or	marketing	synergies	or additional	industry	expertise.		In	2008,	we	acquired	our	distributors	in	Austria,	Belgium,	Denmark,	Finland,	Portugal	and	Sweden	to	strengthen	its	presence	and	capabilities in	the	European	market.			We	may	not	be	able	to	identify	suitable	acquisition,	investment	or	strategic	partnership	candidates,	or	if	we	do	identify	suitable	candidates	in	the future,	we	may	not	be	able	to	complete	those	transactions	on	commercially	favorable	terms,	or	at	all.

Any	 past	 or	 future	 acquisitions	 could	 also	 result	 in	 difficulties	 assimilating	 acquired	 employees	 (including	 cultural	 differences	 with	 foreign	 acquisitions), operations,	and	products	and	diversion	of	capital	and	management's	attention	away	from	other	business	issues	and	opportunities.		Integration	of	acquired	companies	may result	in	problems	related	to	integration	of	technology	and	inexperienced	management	teams.	In	addition,	the	key	personnel	of	the	acquired	company	may	decide	not	to work	for	us.		Our	management	has	had	limited	experience	in	assimilating	acquired	organizations	and	products	into	our	operations.		We	may	not	successfully	integrate internal	controls,	compliance	under	the	Sarbanes-Oxley	Act	of	2002	and	other	corporate	governance	matters,	operations,	personnel	or	products	related	to	acquisitions	we made	in	2008	or	may	make	in	the	future.		If	we	fail	to	successfully	integrate	such	transactions,	our	business	could	be	materially	harmed.

# We	have	benefited	in	the	past	from	Taiwan	government	tax	incentives	offered	on	certain	high	technology	capital	investments	that	may	not	always	be	available.

Our	effective	tax	rate	is	lower	than	the	U.S.	federal	statutory	rate,	because	we	have	benefited	from	incentives	offered	in	Taiwan	related	to	our	high	technology investments	in	Taiwan.		The	loss	of	these	tax	benefits	could	have	a	significant	effect	on	our	financial	results	in	the	future.

# Changes	in	our	United	States	federal	income	tax	classification	or	in	applicable	tax	law	could	result	in	adverse	tax	consequences	to	our	shareholders.

We	do	not	believe	that	we	(or	any	of	our	non-United	States	subsidiaries)	are	currently	a	''passive	foreign	investment	company''	for	United	States	federal	income tax	purposes.		We	do	not	expect	to	become	a	passive	foreign	investment	company.		However,	because	the	passive	foreign	investment	company	determination	is	made annually	based	on	whether	the	company's	income	or	assets	meet	certain	thresholds	as	determined	under	United	States	federal	tax	principles	which	are	based	on	facts	and circumstances	that	may	be	beyond	our	control,	we	cannot	assure	that	we	will	not	become	a	passive	foreign	investment	company	in	the	future.		If	we	are	a	passive	foreign investment	company	in	any	year,	then	any	of	our	shareholders	that	is	a	United	States	person	could	be	liable	to	pay	tax	on	their	pro	rata	share	of	our	income	plus	an	interest charge	upon	some	distributions	by	us	or	when	that	shareholder	sells	our	common	shares	at	a	gain.		Further,	if	we	are	classified	as	a	passive	foreign	investment	company	in any	year	in	which	a	United	States	person	is	a	shareholder,	we	generally	will	continue	to	be	treated	as	a	passive	foreign	investment	company	with	respect	to	such	shareholder in	all	succeeding	years,	regardless	of	whether	we	continue	to	satisfy	the	income	or	asset	tests	mentioned	above.

We	do	not	believe	that	we	(or	any	of	our	non-United	States	subsidiaries)	are	currently	a	Controlled	Foreign	Corporation	(CFC)	for	United	States	federal	income	tax purposes.		We	do	not	expect	to	become	a	CFC.		The	CFC	determination	is	made	daily	based	on	whether	the	United	States	shareholders	own	more	than	fifty	percent	of	the voting	power	or	value	of	the	Company.		Only	United	States	persons	that	own	ten	percent	or	more	of	the	voting	power	of	the	Company's	shares	qualify	as	United	States shareholders.		If	the	Company	were	to	be	classified	as	a	CFC	for	an	uninterrupted	thirty	day	period	in	any	year,	the	Company's	shareholders	that	qualify	as	United	States shareholders	could	be	liable	to	pay	US	income	tax	at	ordinary	income	tax	rates	on	their	pro-rata	share	of	certain	categories	of	the	Company's	income	for	the	period	in	which the	Company	is	classified	as	a	CFC.	As	the	Company	cannot	control	the	ownership	of	the	Company's	stock	nor	can	the	Company	control	which	shareholders	participate	in the	Company's	stock	buyback	program,	ownership	changes	could	result	that	create	United	States	shareholders	which	increase	the	risk	of	Garmin	being	treated	as	a	CFC.

# We	may	have	additional	tax	liabilities.

We	are	subject	to	income	taxes	in	both	the	United	States	and	numerous	foreign	jurisdictions.	Significant	judgment	is	required	in	determining	our	worldwide provision	for	income	taxes.	In	the	ordinary	course	of	our	business,	there	are	many	transactions	and	calculations	where	the	ultimate	tax	determination	is	uncertain.	We	are regularly	under	audit	by	tax	authorities.	Although	we	believe	our	tax	estimates	are	reasonable,	the	final	determination	of	tax	audits	and	any	related	litigation	could	be materially	different	from	our	historical	income	tax	provisions	and	accruals.	The	results	of	an	audit	or	litigation	could	have	a	material	effect	on	our	income	tax	provision, net	income	or	cash	flows	in	the	period	or	periods	for	which	that	determination	is	made.

# Risks	Relating	to	Our	Shares

# The	volatility	of	our	stock	price	could	adversely	affect	investment	in	our	common	shares.

The	market	price	of	our	common	shares	has	been,	and	may	continue	to	be,	highly	volatile.		During	2008,	the	price	of	our	common	shares	ranged	from	a	low	of $14.40	to	a	high	of	$95.58.	A	variety	of	factors	could	cause	the	price	of	our	common	shares	to	fluctuate,	perhaps	substantially,	including:

· announcements	and	rumors	of	developments	related	to	our	business,	our	competitors,	our	suppliers	or	the	markets	in	which	we	compete;

· quarterly	fluctuations	in	our	actual	or	anticipated	operating	results;

· the	availability,	pricing	and	timeliness	of	delivery	of	components,	such	as	flash	memory	and	liquid	crystal	displays,	used	in	our		products;

· general	conditions	in	the	worldwide	economy,	including	fluctuations	in	interest	rates;

· announcements	of	technological	innovations;

· new	products	or	product	enhancements	by	us	or	our	competitors;

· product	obsolescence	and	our	ability	to	manage	product	transitions;

· developments	in	patents	or	other	intellectual	property	rights	and	litigation;

· developments	in	our	relationships	with	our	customers	and	suppliers;

· research	reports	or	opinions	issued	by	securities	analysts	or	brokerage	houses	related	to	Garmin,	our	competitors,	our	suppliers	or	our	customers;	and

· any	significant	acts	of	terrorism	against	the	United	States,	Taiwan	or	significant	markets	where	we	sell	our	products.

In	addition,	 in	recent	years	 the	stock	market	 in	general	and	 the	markets	for	shares	of	 technology	companies	 in	particular,	have	experienced	extreme	price fluctuations	which	have	often	been	unrelated	to	the	operating	performance	of	affected	companies.		Any	such	fluctuations	in	the	future	could	adversely	affect	the	market	price of	our	common	shares,	and	the	market	price	of	our	common	shares	may	decline.

# Our	officers	and	directors	exert	substantial	influence	over	us.

As	of	February	4,	2009	members	and	former	members	of	our	Board	of	Directors	and	our	executive	officers,	together	with	members	of	their	families	and	entities that	may	be	deemed	affiliates	of	or	related	to	such	persons	or	entities,	beneficially	owned	approximately	43.7%	of	our	outstanding	common	shares.		Accordingly,	these shareholders	may	be	able	to	determine	the	outcome	of	corporate	actions	requiring	shareholder	approval,	such	as	mergers	and	acquisitions.		This	level	of	ownership	may have	a	significant	effect	in	delaying,	deferring	or	preventing	a	change	in	control	of	Garmin	and	may	adversely	affect	the	voting	and	other	rights	of	other	holders	of	our common	shares.

# Provisions	 in	our	shareholder	rights	plan	and	our	charter	documents	might	deter,	delay	or	prevent	a	third	party	from	acquiring	us	and	Cayman	Islands corporate	law	may	impede	a	takeover,	which	could	decrease	the	value	of	our	shares.

Our	Board	of	Directors	has	the	authority	to	issue	up	to	1,000,000	preferred	shares	and	to	determine	the	price,	rights,	preferences,	privileges	and	restrictions, including	voting	rights,	of	those	shares	without	any	further	vote	or	action	by	the	shareholders.		This	could	have	an	adverse	impact	on	the	market	price	of	our	common shares.		We	have	no	present	plans	to	issue	any	preferred	shares,	but	we	may	do	so.		The	rights	of	the	holders	of	common	shares	may	be	subject	to,	and	adversely	affected by,	the	rights	of	the	holders	of	any	preferred	shares	that	may	be	issued	in	the	future.		In	addition,	we	have	adopted	a	classified	board	of	directors.		Our	shareholders	are unable	to	remove	any	director	or	the	entire	board	of	directors	without	a	super	majority	vote.		In	addition,	a	super	majority	vote	is	required	to	approve	transactions	with interested	shareholders.		Shareholders	do	not	have	the	right	to	call	a	shareholders	meeting.		We	have	adopted	a	shareholders'	rights	plan	which	under	certain	circumstances would	significantly	impair	the	ability	of	third	parties	to	acquire	control	of	us	without	prior	approval	of	our	Board	of	Directors.		This	shareholders'	rights	plan	and	the provisions	in	our	charter	documents	could	make	it	more	difficult	for	a	third	party	to	acquire	us,	even	if	doing	so	would	benefit	our	shareholders.

Unlike	many	jurisdictions	in	the	United	States,	Cayman	Islands	law	does	not	currently	provide	for	mergers	as	that	expression	is	understood	under	corporate	law	in the	United	States.	While	Cayman	Islands	law	does	have	statutory	provisions	that	provide	for	the	reconstruction	and	amalgamation	of	companies,	which	are	commonly referred	to	in	the	Cayman	Islands	as	a	"scheme	of	arrangement,"	the	procedural	and	legal	requirements	necessary	to	consummate	these	transactions	are	more	rigorous	and take	 longer	 to	complete	 than	 the	procedures	 typically	required	 to	consummate	a	merger	 in	 the	United	States.	Under	Cayman	Islands	 law	and	practice,	a	scheme	of arrangement	in	relation	to	a	solvent	Cayman	Islands	exempted	company	must	be	approved	at	a	shareholders'	meeting	by	a	majority	of	the	company's	shareholders	who	are present	and	voting	(either	in	person	or	by	proxy)	at	such	meeting.	The	shares	voted	in	favor	of	the	scheme	of	arrangement	must	also	represent	at	least	75%	of	the	value	of each	class	of	the	company's	shareholders	(excluding	the	shares	owned	by	the	parties	to	the	scheme	of	arrangement)	present	and	voting	at	the	meeting.	The	Grand	Court	of the	Cayman	Islands	must	also	sanction	the	convening	of	these	meetings	and	the	terms	of	the	amalgamation.	Although	there	is	no	requirement	to	seek	the	consent	of	the creditors	of	the	parties	involved	in	the	scheme	of	arrangement,	the	Grand	Court	typically	seeks	to	ensure	that	the	creditors	have	consented	to	the	transfer	of	their	liabilities	to the	surviving	entity	or	that	the	scheme	of	arrangement	does	not	otherwise	materially	adversely	affect	the	creditors'	interests.	Furthermore,	the	Grand	Court	will	only	approve a	scheme	of	arrangement	if	it	is	satisfied	that:

•	the	statutory	provisions	as	to	majority	vote	have	been	complied	with;

•	the	shareholders	have	been	fairly	represented	at	the	meeting	in	question;

•	the	scheme	of	arrangement	is	such	as	a	businessman	would	reasonably	approve;	and

•	the	scheme	of	arrangement	is	not	one	that	would	more	properly	be	sanctioned	under	some	otherprovision	of	the	Companies	Law.

There	are	proposals	to	amend	the	Companies	Law	to	permit	companies	to	merge	in	a	manner	broadly	similar	to	the	mergers	provisions	in	the	State	of	Delaware.		Those proposals	were	released	by	the	Cayman	Islands	government	for	comment	on	January	20,	2009.		Although	the	period	for	comments	has	now	expired,	a	final	draft	bill	has	not been	released	and,	therefore,	it	is	not	possible	to	specify	the	final	form	of	the	proposals	or	an	anticipated	date	for	such	legislation	to	be	adopted.

# Item	1B.		Unresolved	Staff	Comments

None.

# Item	2.		Properties

The	following	are	the	principal	properties	owned	or	leased	by	the	Company	and	its	subsidiaries:

Garmin	International,	Inc.	and	Garmin	USA,	Inc.	occupy	a	facility	of	approximately	995,000	square	feet	on	42	acres	in	Olathe,	Kansas,	where	the	majority	of product	design	and	development	work	 is	conducted,	 the	majority	of	aviation	panel-mount	products	are	manufactured	and	products	are	warehoused,	distributed,	and supported	for	North,	Central	and	South	America.		An	additional	approximately	125,000	square	foot	expansion	to	the	main	Olathe	facility	is	in	process	for	additional development	and/or	aviation	manufacturing	space	(expected	completion	June	2009),	which	will	bring	the	total	size	of	the	main	Olathe	facility	to	1,120,000	square	feet	when complete.		Garmin's	subsidiary,	Garmin	Realty,	LLC	also	owns	an	additional	46	acres	of	land	on	the	Olathe	site	for	future	expansion.		In	connection	with	the	bond financings	for	the	facility	in	Olathe	and	the	expansion	of	that	facility,	the	City	of	Olathe	holds	the	legal	title	to	the	Olathe	facility	which	is	leased	to	Garmin's	subsidiaries	by the	City.		Upon	the	payment	in	full	of	the	outstanding	bonds,	the	City	of	Olathe	is	obligated	to	transfer	title	to	Garmin's	subsidiaries	for	the	aggregate	sum	of	$200.		Garmin International,	Inc.	has	purchased	all	the	outstanding	bonds	and	continues	to	hold	the	bonds	until	maturity	in	order	to	benefit	from	property	tax	abatement.

Garmin	Corporation	owns	and	occupies	a	249,326	square	foot	facility	in	Shijr,	Taipei	County,	Taiwan,	a	223,469	square	foot	facility	in	Jhongli,	Tao-Yang	County, Taiwan,	and	an	approximately	580,000	square	foot	facility	in	LinKou,	Tao-Yang	County,	Taiwan.	In	these	three	facilities	Garmin	Corporation	manufactures	all	of	Garmin's consumer	and	portable	aviation	products	and	warehouses,	markets	and	supports	products	for	the	Pacific	Rim	countries.

Garmin	AT,	Inc.	leases	approximately	15	acres	of	land	in	Salem,	Oregon	under	a	ground	lease.		This	ground	lease	expires	in	2030	but	Garmin	AT	has	the	option	to extend	the	ground	lease	until	2050.		Garmin	AT,	Inc.	owns	and	occupies	a	115,000	square	foot	facility	for	office,	development	and	manufacturing	use	and	a	33,000	square foot	aircraft	hangar,	flight	test	and	certification	facility	on	this	land.

Garmin	International,	Inc.	leases	148,320	square	feet	of	land	at	New	Century	Airport	in	Gardner,	Kansas	under	a	ground	lease	which	expires	in	2026.		Garmin International,	Inc.	owns	and	occupies	a	47,254	square	foot	aircraft	hangar,	flight	test	and	certification	facility	on	this	land	which	is	used	in	development	and	certification	of aviation	products.

Garmin	International,	Inc.	leases	approximately	15,000	square	feet	of	space	at	669	North	Michigan	Avenue	in	Chicago,	Illinois	which	is	used	as	a	retail	store	and showroom	for	Garmin	products.			This	lease	expires	in	November	2016.

Garmin	International,	Inc.	also	leases	an	additional:	(i)	18,392	square	feet	of	office	space	in	Kansas	City,	Missouri	for	a	call	center	operation;	(ii)	48,625	square feet	of	office	space	in	Olathe,	Kansas	for	a	call	center	operation;	(iii)	15,096	square	feet	of	aggregate	office	space	in	two	buildings	in	Tempe,	Arizona	for	software development;	(iv)	5,509	square	feet	of	office	space	in	San	Francisco,	CA	for	its	Garmin	Connect	division;	(v)	8,183	square	feet	of	office	space	in	Diamond	Bar,	California for	software	development;	(vi)	5,952	square	feet	of	office	space	(and	17,536	square	feet	of	land	on	which	the	premises	sits)	in	Wichita,	Kansas	for	aviation	development	and support;	and	(vii)	11,857	aggregate	square	feet	in	two	buildings	in	South	Beach,	Oregon	for	the	former	Nautamatic	(now	TR-1)	marine	autopilot	operations.

Garmin	(Europe)	Ltd.	owns	and	occupies	a	155,000	square	foot	building	located	in	Totton,	Southampton,	England.

# Item	3.		Legal	Proceedings

Encyclopaedia	Britannica,	Inc.	v.	Alpine	Electronics	of	America,	Inc.,	Alpine	Electronics,	Inc.,	Denso	Corporation,	Toyota	Motor	Sales,	U.S.A.,	Inc.,	American Honda	Motor	Co.,	Inc.,	and	Garmin	International,	Inc.

On	May	16,	2005,	Encyclopaedia	Britannica,	Inc.	("Encyclopaedia	Britannica")	filed	suit	in	the	United	States	District	Court	for	the	Western	District	of	Texas, Austin	Division,	against	Garmin	International,	Inc.	and	five	other	unrelated	companies,	alleging	infringement	of	U.S.	Patent	No.	5,241,671	("the	'671	patent").	 	On December	30,	2005,	Garmin	International	filed	a	Motion	for	Summary	Judgment	for	Claim	Invalidity	Based	on	Indefiniteness.		On	September	30,	2008,	the	court	issued	a Memorandum	Opinion	and	Order	granting	Garmin	International's	Motion	for	Summary	Judgment	for	Claim	Invalidity	Based	on	Indefiniteness	with	respect	to	the	'671 patent.		On	October	8,	2008,	the	court	issued	an	Amended	Final	Judgment	ordering	that	Encyclopaedia	Britannica	take	nothing	from	its	action	against	Garmin	International with	respect	to	the	'671	patent	and	closed	that	case.

On	May	23,	2006,	Encyclopaedia	Britannica	filed	an	amended	complaint	claiming	that	Garmin	International	and	the	other	defendants	also	infringe	U.S.	Patent	No. 7,051,018	("the	'018	patent"),	a	continuation	patent	of	the	'671	patent,	which	issued	on	May	23,	2006.		Garmin	International	believes	that	it	should	not	be	found	liable	for infringement	of	the	'018	patent	and	additionally	that	the	'018	patent	is	invalid.		On	July	25,	2006,	Encyclopaedia	Britannica	filed	a	new	complaint	claiming	that	Garmin International	and	the	other	defendants	also	infringe	U.S.	Patent	No.	7,082,437	("the	'437	patent"),	a	continuation	patent	of	the	'671	patent,	which	issued	on	July	25, 2006.		Garmin	International	believes	that	it	should	not	be	found	liable	for	infringement	of	the	'437	patent	and	additionally	that	the	'437	patent	is	invalid.		Encyclopaedia Britannica	has	asserted	the	'018	and	'437	patents	against	other	parties	in	Encyclopaedia	Britannica	v.	Magellan	Navigation,	Inc.,	et	al.,	Case	No.	07-CA-787	(LY)(W.D. Tex).		On	October	5,	2007,	the	defendants	in	that	case	filed	a	Motion	for	Summary	Judgment	of	Invalidity	of	the	'018	and	'437	patents	and	the	parties	await	a	hearing	and/or the	court's	ruling	on	that	motion.	On	February	6,	2009,	the	court	entered	a	scheduling	order	enabling	all	defendants	in	these	cases	to	file	a	consolidated	Joint	Motion	for Summary	Judgment	of	Invalidity	of	the	'018	and	'437	patents	and	stayed	all	proceedings	pending	the	court's	ruling	on	the	joint	motion	for	summary	judgment.	Although there	can	be	no	assurance	that	an	unfavorable	outcome	of	this	litigation	would	not	have	a	material	adverse	effect	on	our	operating	results,	liquidity	or	financial	position, Garmin	International	believes	that	the	claims	are	without	merit	and	intends	to	vigorously	defend	these	actions.

# SP	Technologies,	LLC	v.	Garmin	Ltd.,	Garmin	International,	Inc.,	TomTom,	Inc.,	and	Magellan	Navigation,	Inc.

On	June	5,	2008,	SP	Technologies,	LLC	filed	suit	in	the	United	States	District	Court	for	the	Northern	District	of	Illinois	against	Garmin	Ltd.	and	Garmin International,	Inc.	alleging	infringement	of	U.S.	Patent	No.	6,784,873	("the	'873	patent").		On	July	7,	2008,	SP	Technologies,	LLC	filed	an	amended	complaint	alleging infringement	of	 the	'873	patent	against	additional	defendants	TomTom,	Inc.	and	Magellan	Navigation,	Inc.	 	Garmin	believes	 that	 it	should	not	be	found	 liable	for infringement	of	the	'873	patent	and	additionally	that	the	'873	patent	is	invalid.		Garmin	intends	to	vigorously	defend	this	lawsuit

On	August	18,	2008,	Garmin	filed	its	answer	to	the	amended	complaint	along	with	a	motion	for	dismissal	of	SP	Technologies,	LLC's	claims	of	willful	and inducement	infringement	of	the	'873	patent.		On	October	16,	2008,	the	court	granted	Garmin's	motion	for	partial	dismissal,	striking	the	willful	and	inducement	infringement allegations	from	the	amended	complaint.

On	January	7,	2009,	Garmin	filed	an	Amended	Answer	and	Counterclaims	asserting	the	'873	patent	is	not	infringed,	is	invalid,	and	that	the	plaintiff	committed inequitable	conduct	resulting	in	unenforceability	of	the	'873	patent.		On	February	2,	2009,	codefendant	TomTom	filed	a	Motion	for	Summary	Judgment	of	Unenforceability of	the	'873	Patent	Due	to	Inequitable	Conduct.		The	parties	await	a	hearing	or	the	Court's	ruling	on	this	summary	judgment	motion.

Scott	C.	Harris	and	Memory	Control	Enterprise,	LLC	v.	Dash	Navigation,	Inc.,	Garmin	International,	Inc.,	Lowrance	Electronics,	Inc.,	Magellan	Navigation,	Inc., Mio	Technology	USA,	Navigon	Inc.,	Netropa	Corporation,	and	Sony	Electronics,	Inc.

On	September	4,	2008,	Scott	C.	Harris	and	Memory	Control	Enterprise,	LLC	filed	suit	in	the	United	States	District	Court	for	the	Northern	District	of	Illinois against	Garmin	International,	Inc.,	along	with	Dash	Navigation,	Inc.,	Lowrance	Electronics,	Inc.,	Magellan	Navigation,	Inc.,	Mio	Technology	USA,	Navigon	Inc.,	Netropa Corporation,	and	Sony	Electronics,	Inc.	The	complaint	against	Garmin	International,	Inc.	alleges	infringement	of	U.S.	Patent	No.	6,892,136	("the	'136	patent").	Garmin believes	that	it	should	not	be	found	liable	of	infringement	of	the	'136	patent	and	additionally	that	the	'136	patent	is	invalid.		Garmin	intends	to	vigorously	defend	this lawsuit.

From	time	to	time	Garmin	is	involved	in	other	legal	actions	arising	in	the	ordinary	course	of	our	business.		We	believe	that	the	ultimate	outcome	of	these	actions will	not	have	a	material	adverse	effect	on	our	business,	financial	condition	and	results	of	operations.

# Item	4.		Submission	of	Matters	to	a	Vote	of	Security	Holders

No	matters	were	submitted	to	a	vote	of	shareholders	of	Garmin	during	the	fourth	fiscal	quarter	of	2008.

# Executive	Officers	of	the	Registrant

Pursuant	to	General	Instruction	G(3)	of	Form	10-K	and	instruction	3	to	paragraph	(b)	of	Item	401	of	Regulation	S-K,	the	following	list	is	included	as	an	unnumbered	Item	in Part	I	of	this	Annual	Report	on	Form	10-K	in	lieu	of	being	included	in	the	Company's	Definitive	Proxy	Statement	in	connection	with	its	annual	meeting	of	shareholders scheduled	for	June	5,	2009.

Dr.	Min	H.	Kao,	age	60,	has	served	as	Chairman	of	Garmin	Ltd.	since	August	2004	and	was	previously	Co-Chairman	of	Garmin	Ltd.	from	August	2000	to	August 2004.		He	has	served	as	Chief	Executive	Officer	of	Garmin	Ltd.	since	August	2002	and	previously	served	as	Co-Chief	Executive	Officer	from	August	2000	to	August 2002.	 	Dr.	Kao	has	served	as	a	director	and	officer	of	various	subsidiaries	of	the	Company	since	August	1990.	 	Dr.	Kao	holds	Ph.D.	and	MS	degrees	in	Electrical Engineering	from	the	University	of	Tennessee	and	a	BS	degree	in	Electrical	Engineering	from	National	Taiwan	University.

Clifton	A.	Pemble,	age	43,	has	served	as	a	director	of	Garmin	Ltd.	since	August	2004,	and	as	President	and	Chief	Operating	Officer	of	Garmin	Ltd.	since	October 2007.	Mr.	Pemble	has	served	as	a	director	and	officer	of	various	Garmin	subsidiaries	since	August	2003.	Previously,	he	was	Vice	President,	Engineering	of	Garmin International,	Inc.	from	2005	to	October	2007,	Director	of	Engineering	of	Garmin	International,	Inc.	from	2003	to	2005,	and	Software	Engineering	Manager	of	Garmin International,	Inc.	from	1995	to	2002	and	a	Software	Engineer	with	Garmin	International,	Inc.	from	1989	to	1995.		Mr.	Pemble	holds	BA	degrees	in	Mathematics	and Computer	Science	from	MidAmerica	Nazarene	University.

Kevin	S.	Rauckman,	age	46,	has	served	as	Chief	Financial	Officer	and	Treasurer	of	Garmin	Ltd.	since	August	2000.		He	previously	served	as	Director	of	Finance and	Treasurer	of	Garmin	International,	Inc.	since	January	1999	and	has	served	as	a	director	and	officer	of	various	subsidiaries	of	the	Company	since	April	2001.	Mr. Rauckman	holds	BS	and	MBA	degrees	in	Business	from	the	University	of	Kansas.

Andrew	R.	Etkind,	age	53,	has	served	as	Vice	President,	General	Counsel	and	Secretary	of	Garmin	Ltd.	since	June	2008.	He	was	previously	General	Counsel	and Secretary	of	Garmin	Ltd.	from	August	2000	to	June	2008.		He	has	been	Vice	President	and	General	Counsel	of	Garmin	International,	Inc.	since	July	2007,	General	Counsel since	February	1998,	and	Secretary	since	October	1998.	Mr.	Etkind	has	served	as	a	director	and	officer	of	various	Garmin	subsidiaries	since	December	2001.		Mr.	Etkind holds	BA,	MA	and	LLM	degrees	from	Cambridge	University,	England	and	a	JD	degree	from	the	University	of	Michigan	Law	School.

Brian	J.	Pokorny,	age	45,	has	been	Vice	President,	Operations	of	Garmin	International,	Inc.	since	2005.	Previously,	he	was	Director	of	Operations	of	Garmin International,	Inc.	from	1997	to	2005	and	Production	Planning	Manager	of	Garmin	International,	Inc.	from	1995	to	1997.		Mr.	Pokorny	holds	a	BS	degree	in	Business Management	and	a	MBA	from	the	University	of	Nebraska	-	Lincoln	and	holds	the	professional	certification	of	CPIM	(Certified	in	Production	and	Inventory	Management).

Danny	J.	Bartel,	age	59,	has	been	Vice	President,	Worldwide	Sales	of	Garmin	International,	Inc.	since	2006.	 	Previously,	he	was	Technical/Survey	Sales Manager	of	Garmin	International,	Inc.	from	1992	to	1993,	Director,	Europe,	Middle	East	and	Africa	of	Garmin	(Europe)	Ltd.	from	1994	to	1999,	and	Director	of	Consumer Electronic	Sales	of	Garmin	International,	Inc.	from	1999	to	2006.	He	has	been	a	director	of	Garmin	(Europe)	Ltd.	since	July	2004.		Mr.	Bartel	holds	a	B.S.	in	Electrical Engineering	from	South	Dakota	State	University	and	a	B.A.	in	Management	from	Central	Michigan	University.

Gary	V.	Kelley,	age	62,	has	been	Vice	President,	Marketing	of	Garmin	International,	Inc.	since	2005.	Previously,	he	was	Director	of	Marketing	of	Garmin International,	Inc.	from	1992	to	2005.	He	has	also	been	Director	of	Marketing	of	Garmin	USA,	Inc.	since	January	2002.	Mr.	Kelley	was	a	director	of	Garmin	(Europe)	Ltd. from	1993	to	2004.			Mr.	Kelley	holds	a	BBA	degree	from	Baker	University.		He	also	holds	a	commercial	pilot	license	with	instrument	and	flight	instructor	ratings.

All	executive	officers	are	elected	by	and	serve	at	the	discretion	of	the	Company's	Board	of	Directors.		None	of	the	executive	officers	has	an	employment	agreement	with	the Company.		There	are	no	arrangements	or	understandings	between	the	executive	officers	and	any	other	person	pursuant	to	which	he	or	she	was	or	is	to	be	selected	as	an officer.	There	is	no	family	relationship	among	any	of	the	executive	officers.		Dr.	Min	H.	Kao	is	the	brother	of	Ruey-Jeng	Kao,	who	is	a	supervisor	of	Garmin	Corporation, Garmin's	Taiwan	subsidiary,	who	serves	as	an	ex-officio	member	of	Garmin	Corporation's	Board	of	Directors.

# PART	II

# Item	5.		Market	for	the	Company's	Common	Shares,	Related	Shareholder	Matters	and	Issuer	Purchases	of	Equity	Securities

Garmin's	common	shares	have	traded	on	the	Nasdaq	National	Market	under	the	symbol	"GRMN"	since	its	initial	public	offering	on	December	8,	2000	(the	"IPO").		As	of February	8,	2009,	there	were	280	shareholders	of	record.

The	range	of	high	and	low	closing	sales	prices	of	Garmin's	common	shares	as	reported	on	the	Nasdaq	Stock	Market	for	each	fiscal	quarter	of	fiscal	years	2008	and	2007	was as	follows:

|  | December	27,	2008 | December	27,	2008 | December	29,	2007 | December	29,	2007 |
| :--- | :--- | :--- | :--- | :--- |
|  | High | Low | High | Low |
| First\tQuarter | \t$97.00 | \t$53.10 | \t$57.66 | \t$49.19 |
| Second\tQuarter | \t$56.41 | \t$40.90 | \t$75.03 | \t$52.69 |
| Third\tQuarter | \t$48.70 | \t$32.11 | \t$121.14 | \t$75.18 |
| Fourth\tQuarter | \t$34.34 | \t$15.22 | \t$123.80 | \t$82.32 |

The	Board	of	Directors	declared	a	cash	dividend	of	$0.75	per	common	share	to	shareholders	of	record	on	December	1,	2008	which	was	paid	on	December	15,	2008.	The Board	of	Directors	declared	a	cash	dividend	of	$0.75	per	common	share	to	shareholders	of	record	on	August	15,	2007	which	was	paid	on	September	14,	2007.			Garmin currently	expects	to	pay	a	cash	dividend	in	December	2009.	The	decision	whether	to	pay	a	dividend	and	the	amount	of	the	dividend	will	be	made	closer	to	the	payment	date based	on		the	Company's	cash	balance,	cash	requirements	and	cash	flow	generation..

The	Board	of	Directors	approved	a	share	repurchase	program	on	February	4,	2008,	authorizing	the	Company	to	repurchase	up	to	5.0	million	shares	of	the Company	as	market	and	business	conditions	warrant.		This	share	repurchase	program	was	completed	in	second	quarter	2008.

The	Board	of	Directors	approved	a	share	repurchase	program	on	June	6,	2008,	authorizing	the	Company	to	repurchase	up	to	10.0	million	shares	of	the	Company	as market	and	business	conditions	warrant.		This	share	repurchase	program	was	completed	in	fourth	quarter	2008.

The	Board	of	Directors	approved	a	share	repurchase	program	on	October	22,	2008,	authorizing	the	Company	to	repurchase	up	to	$300	million	of	the	Company's shares	as	market	and	business	conditions	warrant.		Approximately	$258	million	of	this	plan	remains	outstanding.		The	share	repurchase	authorization	expires	on	December 31,	2009.

| Period | Total	#	of<br>Shares	Purchased | Average	Price<br>Paid	Per	Share | in	Thousands)	That	May	Yet	Be<br>	 Purchased	Under	the	Plans	or	Programs |
| :--- | :--- | :--- | :--- |
| October\t2008 | 242,445 | \t $22.58 | $300,000 |
| November\t2008 | 1,962,081 | \t $19.83 | $261,096 |
| December\t2008 | 175,258 | \t $15.86 | $258,317 |
| Total | 2,379,784 | \t $19.82 | $258,317 |

We	refer	you	to	Item	12	of	this	report	under	the	caption	"Equity	Compensation	Plan	Information"	for	certain	equity	plan	information	required	to	be	disclosed	by Item	201(d)	of	Regulation	S-K.

# Stock	Performance	Graph

This	performance	graph	shall	not	be	deemed	''filed''	with	the	SEC	or	subject	to Section	18	of	the	Securities	Exchange	Act	of	1934,	nor	shall	it	be	deemed	incorporated by	reference	in	any	of	our	filings	under	the	Securities	Act	of	1933,	as	amended.

The	following	graph	illustrates	the	cumulative	total	shareholder	return	(rounded	to	the	nearest	whole	dollar)	of	Garmin	common	shares	during	the	period	from December	31,	2003	through	December	31,	2008,	and	compares	it	to	the	cumulative	total	return	on	the	NASDAQ	Composite	Index	and	the	NASDAQ	100	Index.		Garmin	is one	of	the	constituent	companies	of	the	NASDAQ	100	Index.	The	comparison	assumes	a	$100	investment	on	December	31,	2003,	in	Garmin	common	shares	and	in	each	of the	foregoing	indexes	and	assumes	reinvestment	of	dividends.

|  | 12/03 | 12/04 | 12/05 | 12/06 | 12/07 | 12/08 |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Garmin\tLtd. | 100.00 | 112.63 | 123.94 | 210.00 | 368.72 | 76.08 |
| NASDAQ\tComposite | 100.00 | 110.08 | 112.88 | 126.51 | 138.13 | 80.47 |
| NASDAQ-100 | 100.00 | 109.73 | 112.30 | 123.84 | 145.65 | 86.63 |

The	stock	price	performance	included	in	this	graph	is	not	necessarily	indicative	of	future	stock	price	performance.

# Item	6.		Selected	Financial	Data

											The	following	table	sets	forth	selected	consolidated	financial	data	of	the	Company.		The	selected	consolidated	balance	sheet	data	as	of	December	27,	2008	and December	29,	2007	and	the	selected	consolidated	statement	of	income	data	for	the	years	ended	December	27,	2008,	December	29,	2007,	and	December	30,	2006	were derived	from	the	Company's	audited	consolidated	financial	statements	and	the	related	notes	thereto	which	are	included	in	Item	8	of	this	annual	report	on	Form	10-K.		The selected	consolidated	balance	sheet	data	as	of		December	30,	2006,	December	31,	2005,	and	December	25,	2004	and	the	selected	consolidated	statement	of	income	data	for the	years	ended	December	31,	2005	and	December	25,	2004	were	derived	from	the	Company's	audited	consolidated	financial	statements,	not	included	herein.

											The	information	set	forth	below	is	not	necessarily	indicative	of	the	results	of	future	operations	and	should	be	read	together	with	"Management's	Discussion	and Analysis	of	Financial	Condition	and	Results	of	Operations"	and	the	consolidated	financial	statements	and	notes	to	those	statements	included	in	Items	7	and	8	in	Part	II	of this	Form	10-K.

|  | Dec.	27, | Dec.	29, | Dec.	30, | Dec.	31, | Dec.	25, |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | 2008 | 2007 | 2006 | 2005 | 2004 |
|  |  | (in\tthousands,\texcept\tper\tshare\tdata) | (in\tthousands,\texcept\tper\tshare\tdata) |  |  |
| Consolidated\tStatements\tof\tIncome\tData: |  |  |  |  |  |
| Net\tsales | $3,494,077 | $3,180,319 | $1,774,000 | $1,027,773 | $762,549 |
| Cost\tof\tgoods\tsold | 1,940,562 | 1,717,064 | 891,614 | 492,703 | 351,310 |
| Gross\tprofit | 1,553,515 | 1,463,255 | 882,386 | 535,070 | 411,239 |
| Operating\texpenses: |  |  |  |  |  |
| Selling,\tgeneral\tand\tadministrative | 485,389 | 396,498 | 214,513 | 122,021 | 78,991 |
| Research\tand\tdevelopment | 206,109 | 159,406 | 113,314 | 74,879 | 61,580 |
| Total\toperating\texpenses | 691,498 | 555,904 | 327,827 | 196,900 | 140,571 |
| Operating\tincome | 862,017 | 907,351 | 554,559 | 338,170 | 270,668 |
| Other\tincome/(expense),\tnet\t(2),\t(3),\t(4) | 52,349 | 70,922 | 39,995 | 34,430 | (15,457) |
| Income\tbefore\tincome\ttaxes | 914,366 | 978,273 | 594,554 | 372,600 | 255,211 |
| Income\ttax\tprovision | 181,518 | 123,262 | 80,431 | 61,381 | 49,511 |
| Net\tincome | $732,848 | $855,011 | $514,123 | $311,219 | $205,700 |
| Net\tincome\tper\tshare:\t(5) |  |  |  |  |  |
| Basic | $3.51 | $3.95 | $2.38 | $1.44 | $0.95 |
| Diluted | $3.48 | $3.89 | $2.35 | $1.43 | $0.94 |
| Weighted\taverage\tcommon\tshares\toutstanding:\t(5) |  |  |  |  |  |
| Basic | 208,993 | 216,524 | 216,340 | 216,294 | 216,322 |
| Diluted | 210,680 | 219,875 | 218,845 | 218,236 | 218,060 |
| Cash\tdividends\tper\tshare\t(5) | $0.75 | $0.75 | $0.50 | $0.25 | $0.25 |
| Balance\tSheet\tData\t(at\tend\tof\t\tPeriod): |  |  |  |  |  |
| Cash\tand\tcash\tequivalents | $696,335 | $707,689 | $337,321 | $334,352 | $249,909 |
| Marketable\tsecurities | 274,895 | 424,505 | 480,876 | 376,723 | 322,215 |
| Total\tassets | 2,924,581 | 3,291,460 | 1,897,020 | 1,362,235 | 1,117,391 |
| Total\tdebt\t(6) | - | - | 248 | - | - |
| Total\tstockholders'\tequity | 2,225,854 | 2,350,614 | 1,557,899 | 1,157,264 | 935,857 |

(1) Our	fiscal	year-end	is	the	last	Saturday	of	the	calendar	year	and	does	not	always	fall	on	December	31.

(2) Other	income/(expense),	net	mainly	consists	of	gain	on	sale	of	equity	securities,	interest	income,	interest	expense,	andforeign	currency	gain	(loss)

(4) Includes	a	$50.9	million	gain	on	sale	of	equity	securities	primarily	related	to	the	sale	of	our	equity	interest	in	Tele	Atlas	N.V.

(5) All	prior	period	common	stock	and	applicable	share	and	per	share	amounts	have	been	retroactively	adjustedto	reflect	a	2-for-1	split	of	the	Company's	common	stock effective	August	15,	2006.

(6) Total	debt	consists	of	notes	payable	and	long-term	debt.

# Item	7.		Management's	Discussion	and	Analysis	of	Financial	Condition	and	Results	of	Operations

The	following	discussion	and	analysis	of	our	financial	condition	and	results	of	operations	focuses	on	and	is	intended	to	clarify	the	results	of	our	operations,	certain changes	in	our	financial	position,	liquidity,	capital	structure	and	business	developments	for	the	periods	covered	by	the	consolidated	financial	statements	included	in	this Form	10-K.		This	discussion	should	be	read	in	conjunction	with,	and	is	qualified	by	reference	to,	the	other	related	information	including,	but	not	limited	to,	the	audited consolidated	financial	statements	(including	the	notes	thereto),	the	description	of	our	business,	all	as	set	forth	in	this	Form	10-K,	as	well	as	the	risk	factors	discussed	above in	Item	1A.

As	previously	noted,	the	discussion	set	forth	below,	as	well	as	other	portions	of	this	Form	10-K,	contain	statements	concerning	potential	future	events.		Readers	can identify	these	forward-looking	statements	by	their	use	of	such	verbs	as	"expects,"	"anticipates,"	"believes"	or	similar	verbs	or	conjugations	of	such	verbs.		If	any	of	our assumptions	on	which	the	statements	are	based	prove	incorrect	or	should	unanticipated	circumstances	arise,	our	actual	results	could	materially	differ	from	those	anticipated by	such	forward-looking	statements.		The	differences	could	be	caused	by	a	number	of	factors	or	combination	of	factors	including,	but	not	limited	to,	those	discussed	above in	Item	1A.		Readers	are	strongly	encouraged	to	consider	those	factors	when	evaluating	any	such	forward-looking	statement.		We	do	not	undertake	to	update	any	forward- looking	statements	in	this	Form	10-K.

Garmin's	fiscal	year	is	a	52-53	week	period	ending	on	the	last	Saturday	of	the	calendar	year.		Fiscal	year	2005	contained	53	weeks	compared	to	52	weeks	for	fiscal	years 2008,	2007,	2006,	and	2004.		Unless	otherwise	stated,	all	years	and	dates	refer	to	the	Company's	fiscal	year	and	fiscal	periods.		Unless	the	context	otherwise	requires, references	in	this	document	to	"we,"	"us,"	"our"	and	similar	terms	refer	to	Garmin	Ltd.	and	its	subsidiaries.

Unless	otherwise	indicated,	dollar	amounts	set	forth	in	the	tables	are	in	thousands,	except	per	share	data.

# Overview

We	 are	 a	 leading	 worldwide	 provider	 of	 navigation,	 communications	 and	 information	 devices,	 most	 of	 which	 are	 enabled	 by	 Global	 Positioning	 System,	 or	 GPS, technology.		We	operate	in	four	business	segments,	which	serve	the	marine,	outdoor/fitness,	automotive/mobile,	and	aviation	markets.		Our	segments	offer	products	through our	network	of	subsidiary	distributors	and	independent	dealers	and	distributors.		However,	the	nature	of	products	and	types	of	customers	for	the	four	segments	can	vary significantly.		As	such,	the	segments	are	managed	separately.		Our	portable	GPS	receivers	and	accessories	for	marine,	recreation/fitness	and	automotive/mobile	segments	are sold	primarily	to	retail	outlets.		Our	aviation	products	are	portable	and	panel-mount	avionics	for	Visual	Flight	Rules	and	Instrument	Flight	Rules	navigation	and	are	sold primarily	to	retail	outlets	and	certain	aircraft	manufacturers.

Since	our	first	products	were	delivered	in	1991,	we	have	generated	positive	income	from	operations	each	year	and	have	funded	our	growth	from	these	profits.		Our	sales have	increased	at	a	compounded	annual	growth	rate	of	46%	since	2004	and	our	net	income	has	increased	at	a	compounded	annual	growth	rate	of	37%	since	2004.		The	vast majority	of	this	growth	has	been	organic;	only	a	very	small	amount	of	new	revenue	occurred	as	a	result	of	the	acquisition	of	MotionBased	Technologies	LLC	in	2005, Dynastream	Innovations	Inc.	 in	2006,	Digital	Cyclone,	Inc.	and	 the	assets	of	Nautamatic	Marine	Systems,	Inc.	 in	2007,	and	 ten	European	distributors	 in	2007	and 2008.		These	acquisitions	had	no	significant	impact	on	net	income	for	those	years.

Since	our	principal	locations	are	in	the	United	States,	Taiwan	and	the	U.K.,	we	experience	some	foreign	currency	fluctuations	in	our	operating	results.		The	functional currency	of	our	European	operations	 is	 the	Euro	(effective	July	2007)	and	 the	functional	currency	of	Garmin	Corporation,	headquartered	 in	Taiwan,	 is	 the	Taiwan Dollar.		Approximately	76%	of	sales	by	our	European	subsidiaries	are	now	denominated	in	British	Pounds	Sterling	or	the	Euro.		We	experienced	($35.3)	million,	$23.0 million,	$0.6	million,	$15.3	million,	and	($24.8)	million	in	foreign	currency	gains	(losses)	during	fiscal	years	2008,	2007,	2006,	2005,	and	2004,	respectively.		The	2008 foreign	currency	loss	includes	a	realized	gain	of	$21.5	million	due	to	the	strengthening	of	the	Euro	between	the	date	we	purchased	shares	in	Tele	Atlas	N.V.	in	October 2007	and	the	tender	of	shares	in	February,	March,	and	June	2008.		To	date,	we	have	not	entered	into	hedging	transactions	with	the	Euro,	the	British	Pound	Sterling,	or	the Taiwan	Dollar,	and	we	do	not	currently	plan	to	utilize	hedging	transactions	in	the	future.

# Critical	Accounting	Policies	and	Estimates

# General

Garmin's	discussion	and	analysis	of	its	financial	condition	and	results	of	operations	are	based	upon	Garmin's	consolidated	financial	statements,	which	have	been	prepared	in accordance	with	accounting	principles	generally	accepted	in	the	United	States.		The	presentation	of	these	financial	statements	requires	Garmin	to	make	estimates	and judgments	that	affect	the	reported	amounts	of	assets,	liabilities,	revenues	and	expenses,	and	related	disclosure	of	contingent	assets	and	liabilities.		On	an	on-going	basis, Garmin	evaluates	its	estimates,	including	those	related	to	customer	sales	programs	and	incentives,	product	returns,	bad	debts,	inventories,	investments,	intangible	assets, income	taxes,	warranty	obligations,	and	contingencies	and	litigation.		Garmin	bases	its	estimates	on	historical	experience	and	on	various	other	assumptions	that	are	believed to	be	reasonable	under	the	circumstances,	the	results	of	which	form	the	basis	for	making	judgments	about	the	carrying	value	of	assets	and	liabilities	that	are	not	readily apparent	from	other	sources.		Actual	results	may	differ	from	these	estimates	under	different	assumptions	or	conditions.

# Revenue	Recognition

Garmin	records	estimated	reductions	to	revenue	for	customer	sales	programs	returns	and	incentive	offerings	including	rebates,	price	protection	(product	discounts	offered	to retailers	to	assist	in	clearing	older	products	from	their	inventories	in	advance	of	new	product	releases),	promotions	and	other	volume-based	incentives.			The	reductions	to revenue	are	based	on	estimates	and	judgments	using	historical	experience	and	expectation	of	future	conditions.			Changes	in	these	estimates	could	negatively	affect	Garmin's operating	results.			These	incentives	are	reviewed	periodically	and,	with	the	exceptions	of	price	protection	and	certain	other	promotions,	are	accrued	for	on	a	percentage	of sales	basis.			If	market	conditions	were	to	decline,	Garmin	may	take	actions	to	increase	customer	incentive	offerings	possibly	resulting	in	an	incremental	reduction	of revenue	at	the	time	the	incentive	is	offered.

# Trade	Accounts	Receivable

We	sell	our	products	to	retailers,	wholesalers,	and	other	customers	and	extend	credit	based	on	our	evaluation	of	the	customer's	financial	condition.		Potential	losses on	receivables	are	dependent	on	each	individual	customer's	financial	condition.	We	carry	our	trade	accounts	receivable	at	net	realizable	value.	Typically,	our	accounts receivable	are	collected	within	60	days	and	do	not	bear	 interest.	We	monitor	our	exposure	 to	 losses	on	receivables	and	maintain	allowances	for	potential	 losses	or adjustments.	We	determine	these	allowances	by	(1)	evaluating	the	aging	of	our	receivables;	and	(2)	reviewing	our	high-risk	customers.	Past	due	receivable	balances	are written	off	when	our	internal	collection	efforts	have	been	unsuccessful	in	collecting	the	amount	due.

# Warranties

Garmin's	products	sold	are	generally	covered	by	a	warranty	for	periods	ranging	from	one	to	two	years.	Garmin	accrues	a	warranty	reserve	for	estimated	costs	to	provide warranty	services.		Garmin's	estimate	of	costs	to	service	its	warranty	obligations	is	based	on	historical	experience	and	expectation	of	future	conditions.		To	the	extent Garmin	experiences	increased	warranty	claim	activity	or	increased	costs	associated	with	servicing	those	claims,	its	warranty	accrual	will	increase,	resulting	in	decreased gross	profit.

# Inventory

Garmin	writes	down	its	inventory	for	estimated	obsolescence	or	unmarketable	inventory	equal	to	the	difference	between	the	cost	of	inventory	and	the	estimated	market	value based	upon	assumptions	about	future	demand	and	market	conditions.	 	If	actual	market	conditions	are	less	favorable	than	those	projected	by	management,	additional inventory	write-downs	may	be	required.

# Investments

Investments	 are	 classified	 as	 available	 for	 sale	 and	 recorded	 at	 fair	 value,	 and	 unrealized	 investment	 gains	 and	 losses	 are	 reflected	 in	 stockholders' equity.			Investment	income	is	recorded	when	earned,	and	capital	gains	and	losses	are	recognized	when	investments	are	sold.			Fair	value	of	investments	in	auction	rate securities	are	valued	using	third	party	estimates	which	followed	an	income	approach	valuation	methodology.		Investments	are	reviewed	periodically	to	determine	if	they have	suffered	an	impairment	of	value	that	is	considered	other	than	temporary.			If	investments	are	determined	to	be	impaired,	a	capital	loss	is	recognized	at	the	date	of determination.

Testing	for	impairment	of	investments	also	requires	significant	management	judgment.			The	identification	of	potentially	impaired	investments,	the	determination of	their	fair	value	and	the	assessment	of	whether	any	decline	in	value	is	other	than	temporary	are	the	key	judgment	elements.			The	discovery	of	new	information	and	the passage	of	time	can	significantly	change	these	judgments.				Revisions	of	impairment	judgments	are	made	when	new	information	becomes	known,	and	any	resulting impairment	adjustments	are	made	at	that	time.		The	economic	environment	and	volatility	of	securities	markets	increase	the	difficulty	of	determining	fair	value	and	assessing investment	impairment.

# Income	Taxes

Garmin	provides	deferred	tax	assets	and	liabilities	based	on	the	difference	between	the	tax	basis	of	assets	and	liabilities	and	their	carrying	amount	for	financial	reporting purposes	as	measured	by	the	enacted	tax	rates	and	laws	that	will	be	in	effect	when	the	differences	are	expected	to	reverse.				While	no	valuation	allowance	has	been recorded,	it	is	Garmin's	policy	to	record	a	valuation	allowance	to	reduce	its	deferred	tax	assets	to	an	amount	that	it	believes	is	more	likely	than	not	to	be	realized.		While Garmin	has	considered	future	taxable	income	and	ongoing	prudent	and	feasible	tax	planning	strategies	in	assessing	the	need	for	the	valuation	allowance,	in	the	event Garmin	were	to	determine	that	it	would	not	be	able	to	realize	all	or	part	of	its	net	deferred	tax	assets	in	the	future,	an	adjustment	to	the	deferred	tax	assets	would	be	charged to	income	in	the	period	such	determination	is	made.		Likewise,	should	Garmin	determine	that	it	would	be	able	to	realize	its	deferred	tax	assets	in	the	future	in	excess	of	its net	recorded	amount,	an	adjustment	to	the	deferred	tax	assets	would	increase	income	in	the	period	such	determination	is	made.

In	addition,	the	calculation	of	our	tax	liabilities	involves	dealing	with	uncertainties	in	the	application	of	complex	tax	regulations.		We	recognize	liabilities	for	tax	audit	issues in	the	U.S.	and	other	tax	jurisdictions	based	on	our	estimate	of	whether,	and	the	extent	to	which,	additional	taxes	will	be	due.		If	payment	of	these	amounts	ultimately	proves to	be	unnecessary,	the	reversal	of	the	liabilities	would	result	in	tax	benefits	being	recognized	in	the	period	when	we	determine	the	liabilities	are	no	longer	necessary.		If	our estimate	of	tax	liabilities	proves	to	be	less	than	the	ultimate	assessment,	a	further	charge	to	expense	would	result.

# Stock	Based	Compensation

Garmin	awards	stock	options,	stock	appreciation	rights	("SARs"),	restricted	stock	units	("RSUs")	and/or	performance	shares	each	year	as	part	of	Garmin's	compensation package	for	employees.		Employees	with	certain	levels	of	responsibility	within	Garmin	are	eligible	for	stock	options,	SAR	grants,	RSU	grants	and/or	performance	shares	but the	granting	of	options,	SARs,	RSUs	and/or	performance	shares	is	at	the	discretion	of	the	Compensation	Committee	of	the	Board	of	Directors	and	is	not	a	contractual obligation.		Stock	compensation	plans	are	discussed	in	detail	in	Note	9	of	the	Notes	to	Consolidated	Financial	Statements.

# Accounting	Terms	and	Characteristics

# Net	Sales

Our	net	sales	are	primarily	generated	through	sales	to	our	global	dealer	and	distributor	network	and	to	original	equipment	manufacturers.		The	Company	recognizes	revenue when	persuasive	evidence	of	a	sales	arrangement	exists,	delivery	has	occurred,	the	sales	price	is	fixed	or	determinable,	and	collection	is	reasonably	assured.	Product	is considered	delivered	to	the	customer	once	it	has	been	shipped	and	title	and	risk	of	loss	have	been	transferred.	For	most	of	the	Company's	product	sales,	these	criteria	are met	at	the	time	the	product	is	delivered	to	the	customer's	location.	The	Company	assumes	no	remaining	significant	obligations	associated	with	the	product	sale	other	than that	related	to	its	warranty	programs	discussed	below.		Our	sales	are	largely	of	a	consumer	nature;	therefore	backlog	levels	are	not	necessarily	indicative	of	our	future	sales results.		We	aim	to	achieve	a	quick	turnaround	on	orders	we	receive,	and	we	typically	ship	most	orders	within	72	hours.

Net	sales	are	subject	to	seasonal	fluctuation.		Typically,	sales	of	our	consumer	products	are	highest	in	the	second	quarter,	due	to	increased	demand	during	the	spring	and summer	season,	and	in	the	fourth	quarter,	due	to	increased	demand	during	the	holiday	buying	season.		Our	aviation	products	do	not	experience	much	seasonal	variation,	but are	more	influenced	by	the	timing	of	the	release	of	new	products	when	the	initial	demand	is	typically	the	strongest.

# Gross	Profit

Raw	material	costs	are	our	most	significant	component	of	cost	of	goods	sold.		In	2008,	gross	margin	for	our	automotive/mobile	segment	declined	310	basis	points	as	the average	selling	price	continued	to	decline	and	we	experienced	further	shift	in	product	mix	to	lower-margin	product	groups.		These	impacts	were	somewhat	offset	by	raw material	price	declines,	most	significantly	flash	memory.		In	the	first	half	of	2007,	we	experienced	favorable	product	mix	and	product	pricing,	which	allowed	us	to	hold margins	in	our	automotive/mobile	segment	steady;	margin	declines	in	the	second	half	of	2007	were	primarily	a	result	of	average	selling	price	declines,	coupled	with	raw materials	price	increases,	most	notably	the	costs	for	flash	memory,	in	late	second	quarter	and	through	the	third	quarter	of	2007	when	we	were	purchasing	these	components for	our	holiday	production	runs,	resulting	in	margin	declines	as	these	components	were	sold,	primarily	in	the	fourth	quarter	of	2007.	 	In	the	first	half	of	2006,	we experienced	meaningful	price	declines	on	flash	memory	and	color	screens,	which	allowed	us	to	hold	margins	in	our	automotive/mobile	segment	steady	in	the	face	of	price declines,	and	allowed	us	to	improve	margins	in	other	business	segments	as	well.			While	these	price	declines	did	not	continue	throughout	all	of	2006,	we	did	have	additional component	cost	reductions	 as	 we	 neared	 year	 end	 that	 offset	 a	 shift	 in	 product	 mix	 to	 lower-margin	 product	 groups.	 	 Gross	 margins	 for	 the	 aviation,	 marine,	 and outdoor/fitness	segments	are	more	stable.		Our	long-term	gross	margin	targets	are	65%,	55%	and	55%,	respectively,	for	these	segments.

Our	existing	practice	of	performing	the	design	and	manufacture	of	our	products	in-house	has	enabled	us	to	utilize	alternative	lower	cost	components	from	different suppliers	and,	where	possible,	to	redesign	our	products	to	permit	us	to	use	these	lower	cost	components.		We	believe	that	because	of	our	practice	of	performing	the	design, manufacture	 and	 marketing	 of	 our	 products	 in-house,	 our	 Shijr,	 Jhongli,	 and	 Lin-Kou	 manufacturing	 plants	 in	 Taiwan,	 our	 Olathe,	 Kansas,	 and	 Salem,	 Oregon manufacturing	plants	have	experienced	relatively	low	costs	of	manufacturing.		In	general,	products	manufactured	in	Taiwan	have	been	our	highest	volume	products.		Our manufacturing	labor	costs	historically	have	been	lower	in	Taiwan	than	in	Olathe	and	Salem.

Sales	price	variability	has	had	and	can	be	expected	to	have	an	effect	on	our	gross	profit.		In	the	past,	prices	of	our	devices	sold	into	the	automotive/mobile	market	have declined	due	to	market	pressures	and	introduction	of	new	products	sold	at	lower	price	points.		The	average	selling	prices	of	our	aviation	products	have	increased	due	to product	mix	and	the	introduction	of	more	advanced	products	sold	at	higher	prices.		The	effect	of	the	sales	price	differences	inherent	within	the	mix	of	GPS-enabled	products sold	could	have	a	significant	impact	on	our	gross	profit.

# Selling,	General	and	Administrative	Expenses

Our	selling,	general	and	administrative	expenses	consist	primarily	of:

· salaries	for	sales	and	marketing	personnel;

· salaries	and	related	costs	for	executives	and	administrative	personnel;

· advertising,	marketing,	and	other	brand	building	costs;

· accounting	and	legal	costs;

· information	systems	and	infrastructure	costs;

· travel	and	related	costs;	and

· occupancy	and	other	overhead	costs.

As	revenues	have	grown,	selling,	general	and	administrative	expenses	have	also	increased	during	the	past	five	years.		Due	to	the	economic	pressure	on	our	consumer- oriented	business,	we	plan	to	decrease	selling,	general	and	administrative	expenses	in	2009.		We	expect	to	decrease	advertising	and	marketing	expenses	to	better	match anticipated	demand	and	to	support	operating	margins.		We	also	reduced	advertising	and	marketing	expenses	in	the	second	half	of	2008	and	did	not	experience	a	negative impact	to	our	market	share.		We	also	expect	selling,	general	and	administrative	costs,	excluding	advertising,	to	be	flat	in	2009.

The	majority	of	our	research	and	development	costs	represent	salaries	for	our	engineers,	costs	for	high	technology	components	and	costs	of	test	equipment	used	in	product and	prototype	development.				Approximately	86%	of	the	research	and	development	of	our	products	is	performed	in	North	America.			The	remainder	of	our	research	and development	activities	are	performed	by	our	Taiwan	engineering	group,	which	has	increased	in	size	in	recent	years.

We	are	committed	to	increasing	the	level	of	innovative	design	and	development	of	new	products	as	we	strive	for	expanded	ability	to	serve	our	existing	consumer	and aviation	markets	as	well	as	new	markets	for	GPS-enabled	devices.		We	continue	to	grow	our	research	and	development	budget	in	absolute	terms.

# Customers

Best	Buy	accounted	for	12.0%	of	our	net	sales	in	the	year	ended	December	27,	2008.		Our	top	ten	customers	have	contributed	between	24%	and	43%	of	net	sales	since 2004.		We	have	experienced	average	sales	days	in	our	customer	accounts	receivable	of	between	43	and	70	days	since	2004.		We	have	experienced	an	increase	in	the	level	of customer	accounts	receivable	days	due	to	changes	in	product	mix,	longer	payment	terms,	and	macroeconomic	conditions.		We	expect	to	reduce	the	level	of	customer accounts	receivable	days	as	we	negotiate	shorter	payment	terms	with	our	customers.		In	2008,	one	of	our	key	customers,	Circuit	City,	filed	for	bankruptcy	resulting	in	an increase	of	$18.5	million	in	accounts	receivable	reserve.

We	have	experienced	a	relatively	low	effective	corporate	tax	rate	due	to	the	proportion	of	our	revenue	generated	by	entities	in	tax	jurisdictions	with	low	statutory rates.			In	particular,		the	profit	entitlement	afforded	our	parent	company	based	on	its	intellectual	property	rights	ownership	of	our	consumer	products	along	with	substantial tax	incentives	offered	by	the	Taiwanese	government	on	certain	high-technology	capital	investments	have	continued	to	reduce	our	tax	rate.		As	a	result,	our	consolidated effective	tax	rate	was	approximately	19.9%	during	2008.		This	is	an	increase	from	12.6%	during	2007	due	to	a	change	in	tax	law	related	to	the	repatriation	of	earnings	from our	Taiwan	subsidiary	and	a	more	unfavorable	mix	of	taxable	income	among	the	tax	jurisdictions	in	which	the	Company	operates.		We	have	taken	advantage	of	the	tax benefit	in	Taiwan	since	our	inception	and	we	expect	to	continue	to	benefit	from	lower	effective	tax	rates	at	least	through	2013.			We	plan	on	applying	for	additional incentives	for	years	beyond	2013	based	on	capital	investments	we	expect	to	make	in	the	future.		However,	there	can	be	no	assurance	that	such	tax	incentives	will	be available	indefinitely	or	that	we	will	receive	the	incentives	for	which	we	apply.		Management	believes	that	due	to	lower	operating	margins	predicted	for	fiscal	2009,	there may	be	slightly	less	revenue	recognized	by	entities	in	lower	tax	rate	jurisdictions.		Therefore,	the	effective	tax	rate	for	fiscal	2009	is	expected	to	be	slightly	higher	than	fiscal 2008.		The	actual	effective	tax	rate	will	be	dependent	upon	the	operating	margins,	production	volume,	additional	capital	investments	made	during	fiscal	2009,	and	the composition	of	our	earnings.

# Results	of	Operations

The	following	table	sets	forth	our	results	of	operations	as	a	percentage	of	net	sales	during	the	periods	shown:

|  | Dec.	27,<br>2008 | Dec.29,<br>2007 | Dec.	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Net\tsales | 100.0% | 100.0% | 100.0% |
| Cost\tof\tgoods\tsold | 55.5% | 54.0% | 50.3% |
| Gross\tprofit | 44.5% | 46.0% | 49.7% |
| Operating\texpenses: |  |  |  |
| Selling,\tgeneral\tand\tadministrative | 13.9% | 12.5% | 12.1% |
| Research\tand\tdevelopment | 5.9% | 5.0% | 6.4% |
| Total\toperating\texpenses | 19.8% | 17.5% | 18.5% |
| Operating\tincome | 24.7% | 28.5% | 31.2% |
| Other\tincome\t/\t(expense)\t,\tnet | 1.5% | 2.2% | 2.3% |
| Income\tbefore\tincome\ttaxes | 26.2% | 30.7% | 33.5% |
| Provision\tfor\tincome\ttaxes | 5.2% | 3.9% | 4.5% |
| Net\tincome | 21.0% | 26.8% | 29.0% |

The	following	table	sets	forth	our	results	of	operations	through	income	before	income	taxes	for	each	of	our	four	segments	during	the	period	shown.			For	each	line	item	in the	table	the	total	of	the	segments'	amounts	equals	the	amount	in	the	consolidated	statements	of	income	data	included	in	Item	6.

| Fiscal	year	ended	December	27,	2008 | Outdoor/<br>Fitness | Marine | Automotive/<br>Mobile | Aviation |
| :--- | :--- | :--- | :--- | :--- |
| Net\tsales | \t$427,783 | \t$204,477 | \t$2,538,411 | \t$323,406 |
| Cost\tof\tgoods\tsold | 181,037 | 93,052 | 1,560,816 | 105,657 |
| Gross\tprofit | 246,746 | 111,425 | 977,595 | 217,749 |
| Research\tand\tdevelopment | 25,419 | 19,374 | 85,610 | 75,706 |
| Selling,\tgeneral\tand\tadministrative\texpenses | 60,732 | 32,068 | 367,880 | 24,709 |
| Total\texpenses | 86,151 | 51,442 | 453,490 | 100,415 |
| Operating\tincome | 160,595 | 59,983 | 524,105 | 117,334 |
| Other\tincome\t/\t(expense),\tnet | 5,391 | 3,921 | 41,634 | 1,403 |
| Income\tbefore\tincome\ttaxes | \t$165,986 | \t$63,904 | \t$565,739 | \t$118,737 |

| Fiscal	year	ended	December	29,	2007 | Outdoor/<br>Fitness | Marine | Automotive/<br>Mobile | Aviation |
| :--- | :--- | :--- | :--- | :--- |
| Net\tsales | \t$339,741 | \t$203,399 | \t$2,342,184 | \t$294,995 |
| Cost\tof\tgoods\tsold | 155,086 | 93,230 | 1,368,979 | 99,769 |
| Gross\tprofit | 184,655 | 110,169 | 973,205 | 195,226 |
| Research\tand\tdevelopment | 23,302 | 16,879 | 59,390 | 59,835 |
| Selling,\tgeneral\tand\tadministrative\texpenses | 41,119 | 25,914 | 305,065 | 24,400 |
| Total\texpenses | 64,421 | 42,793 | 364,455 | 84,235 |
| Operating\tincome | 120,234 | 67,376 | 608,750 | 110,991 |
| Other\tincome\t/\t(expense),\tnet | 7,570 | 4,544 | 56,392 | 2,416 |
| Income\tbefore\tincome\ttaxes | \t$127,804 | \t$71,920 | \t$665,142 | \t$113,407 |

| Fiscal	year	ended	December	30,	2006 | Outdoor/<br>Fitness | Marine | Automotive/<br>Mobile | Aviation |
| :--- | :--- | :--- | :--- | :--- |
| Net\tsales | \t$285,362 | \t$166,639 | \t$1,089,093 | \t$232,906 |
| Cost\tof\tgoods\tsold | 121,724 | 73,687 | 613,902 | 82,301 |
| Gross\tprofit | 163,638 | 92,952 | 475,191 | 150,605 |
| Research\tand\tdevelopment | 16,697 | 13,121 | 37,125 | 46,371 |
| Selling,\tgeneral\tand\tadministrative\texpenses | 30,176 | 19,307 | 145,113 | 19,917 |
| Total\texpenses | 46,873 | 32,428 | 182,238 | 66,288 |
| Operating\tincome | 116,765 | 60,524 | 292,953 | 84,317 |
| Other\tincome\t/\t(expense),\tnet | 4,140 | 4,563 | 29,468 | 1,824 |
| Income\tbefore\tincome\ttaxes | \t$120,905 | \t$65,087 | \t$322,421 | \t$86,141 |

|  | 52-weeks	ended	December	27,	2008 | 52-weeks	ended	December	27,	2008 | 52-weeks	ended	December	29,	2007 | 52-weeks	ended	December	29,	2007 | Year	over	Year | Year	over	Year |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Net\tSales | %\tof\tRevenues | Net\tSales | %\tof\tRevenues | $\tChange | %\tChange |
| Outdoor/Fitness | \t$427,783 | 12.2% | \t$339,741 | 10.7% | \t$88,042 | 25.9% |
| Marine | 204,477 | 5.9% | 203,399 | 6.4% | 1,078 | 0.5% |
| Automotive/Mobile | 2,538,411 | 72.6% | 2,342,184 | 73.6% | 196,227 | 8.4% |
| Aviation | 323,406 | 9.3% | 294,995 | 9.3% | 28,411 | 9.6% |
| Total | \t$3,494,077 | 100.0% | \t$3,180,319 | 100.0% | \t$313,758 | 9.9% |

The	increase	in	total	net	sales	for	2008	was	primarily	driven	by	outdoor/fitness,	automotive/mobile	and	aviation	product	offerings.		Automotive/mobile	revenue remains	a	significantly	larger	portion	of	our	revenue	mix,	decreasing	slightly	from	73.6%	in	2007	to	72.6%	in	2008.		Total	unit	sales	increased	38%	to	16.9	million	in	2008 from	12.3	million	in	2007.			The	higher	unit	sales	volume	in	2008	was	primarily	attributable	to	strong	sales	of	automotive	products,	particularly	in	North	America,	and outdoor/fitness	products.			In	general,	management	believes	that	continuous	innovation	and	the	introduction	of	new	products	are	essential	for	future	revenue	growth.

Automotive/mobile	segment	revenue	grew	8.4%	in	2008,	on	the	strength	of	the	nuvi ®	series	of	personal	navigation	devices	(PNDs),	as	well	as	increased	consumer awareness	of	the	capabilities	and	applications	of	GPS.			On	a	percentage	basis,	revenues	in	our	outdoor/fitness	segment	grew	faster	than	any	other	segment	from	the	year	ago period	due	to	the	introduction	of	the	Colorado™	series,	the	Oregon	™	series,	the	Forerunner ®	405	and	Edge ®	705	which	offer	enhanced	form	factors	and	cartography.		Our aviation	segment	continued	to	grow	on	the	strength	of	our	G1000	cockpit	as	an	OEM	(original	equipment	manufacturer)	solution.		This	growth	slowed	significantly	in	the second	half	of	2008	as	the	macroeconomic	conditions	influenced	purchasing	decisions	and	slowed	OEM	production	schedules.			Marine	revenues	were	slightly	higher	than the	prior	year	due	to	strong	growth	in	the	first	quarter	of	2008	offset	by	flat	to	declining	revenue	in	the	remainder	of	the	year	due	to	macroeconomic	conditions	and	fuel prices.

The	Company	anticipates	that	the	macroeconomic	conditions	will	dampen	or	eliminate	revenue	growth	in	2009	across	all	segments.

|  | 52-weeks	ended	December	27,	2008 | 52-weeks	ended	December	27,	2008 | 52-weeks	ended	December	29,	2007 | 52-weeks	ended	December	29,	2007 | Year	over	Year | Year	over	Year |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Gross\tProfit | %\tof\tRevenues | Gross\tProfit | %\tof\tRevenues | $\tChange | %\tChange |
| Outdoor/Fitness | \t$246,746 | 57.7% | \t$184,655 | 54.4% | \t$62,091 | 33.6% |
| Marine | 111,425 | 54.5% | 110,169 | 54.2% | 1,256 | 1.1% |
| Automotive/Mobile | 977,595 | 38.5% | 973,205 | 41.6% | 4,390 | 0.5% |
| Aviation | 217,749 | 67.3% | 195,226 | 66.2% | 22,523 | 11.5% |
| Total | \t$1,553,515 | 44.5% | \t$1,463,255 | 46.0% | \t$90,260 | 6.2% |

The	increase	in	gross	profit	dollars	was	primarily	attributable	to	the	outdoor/fitness	and	aviation	segments	where	revenue	growth	and	consistent	margins	contributed.		Gross profit	margin	percentage	for	the	Company	overall	decreased	150	basis	points	as	a	result	of	the	automotive/mobile	segment	decline	of	310	basis	points	offset	to	some	extent by	strong	gross	margins	in	our	other	three	segments.			The	automotive/mobile	segment	is	by	nature	a	lower-margin	business	and	the	Company	has	begun	to	see	the	impacts expected	on	gross	margin	due	to	falling	prices	and	a	product	mix	shift	toward	lower	end	PNDs.		Management	believes	that	the	trend	to	lower	gross	margins	for	this	segment will	continue	due	to	ongoing	price	declines	and	further	product	mix	shift	toward	lower	margin	products.		Outdoor/fitness	gross	margin	has	increased	due	to	a	newer	suite	of products.		A	product	mix	favoring	the	high	margin	G1000	in	the	aviation	segment	resulted	in	favorable	gross	margins	for	the	aviation	segment	in	2008.			Marine	gross margin	remained	relatively	stable	and	within	historic	ranges.

|  | 52-weeks	ended	December	27,	2008 | 52-weeks	ended	December	27,	2008 | 52-weeks	ended	December	29,	2007 | 52-weeks	ended	December	29,	2007 |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Selling,\tGeneral\t&amp; |  | Selling,\tGeneral\t&amp; |  | Year\tover\tYear | Year\tover\tYear |
|  | Admin.\tExpenses | %\tof\tRevenues | Admin.\tExpenses | %\tof\tRevenues | $\tChange | %\tChange |
| Outdoor/Fitness | \t$60,732 | 14.2% | \t$41,119 | 12.1% | \t$19,613 | 47.7% |
| Marine | 32,068 | 15.7% | 25,914 | 12.7% | 6,154 | 23.7% |
| Automotive/Mobile | 367,880 | 14.5% | 305,065 | 13.0% | 62,815 | 20.6% |
| Aviation | 24,709 | 7.6% | 24,400 | 8.3% | 309 | 1.3% |
| Total | \t$485,389 | 13.9% | \t$396,498 | 12.5% | \t$88,891 | 22.4% |

The	increase	in	selling,	general	and	administrative	expense	was	driven	primarily	by	costs	associated	with	the	European	distributors	acquired	in	2007	and	2008,	increased staffing	to	support	our	growth	and	bad	debt	expense.			Selling,	general	and	administrative	expenses	excluding	advertising	increased	by	$87.7	million	in	2008	due	to	the acquired	European	distributors,	information	technology,	call	center	operations,	and	other	administrative	areas	to	support	the	growth	of	our	businesses,	as	well	as	bad	debt expense	due	to	the	bankruptcy	of	Circuit	City.	We	expect	selling,	general	and	administrative	expenses	excluding	advertising	to	be	flat	in	2009.		Further	bankruptcies	among our	customer	base	or	inability	to	pay	timely,	could	result	in	increased	bad	debt	expense	in	2009.		Advertising	expenses	increased	by	$1.2	million	on	a	year-over-year	basis	as we	reduced	activities	during	the	second	half	of	the	year	due	to	moderating	growth	associated	with	the	macroeconomic	pressures.		Management	expects	to	continue	to	reduce advertising	costs	in	2009	to	better	match	anticipated	demand	and	to	support	operating	margins.

# Research	and	Development	Expense

|  | 52-weeks	ended	December	27,	2008 | 52-weeks	ended	December	27,	2008 | 52-weeks	ended	December	29,	2007 | 52-weeks	ended	December	29,	2007 |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Research\t&amp; |  | Research\t&amp; |  | Year\tover\tYear | Year\tover\tYear |
|  | Development | %\tof\tRevenues | Development | %\tof\tRevenues | $\tChange | %\tChange |
| Outdoor/Fitness | \t$25,419 | 5.9% | \t$23,302 | 6.9% | \t$2,117 | 9.1% |
| Marine | 19,374 | 9.5% | 16,879 | 8.3% | 2,495 | 14.8% |
| Automotive/Mobile | 85,610 | 3.4% | 59,390 | 2.5% | 26,220 | 44.1% |
| Aviation | 75,706 | 23.4% | 59,835 | 20.3% | 15,871 | 26.5% |
| Total | \t$206,109 | 5.9% | \t$159,406 | 5.0% | \t$46,703 | 29.3% |

The	increase	in	research	and	development	expense	dollars	was	due	to	ongoing	development	activities	for	new	products,	the	addition	of	350	new	engineering	personnel	to	our staff	during	the	period,	and	an	increase	in	engineering	program	costs	in	2008	as	a	result	of	our	continued	emphasis	on	product	innovation.		Management	believes	that	one	of the	key	strategic	initiatives	for	future	growth	and	success	of	Garmin	is	continuous	innovation,	development,	and	introduction	of	new	products.		Management	expects	that	its research	and	development	expenses	will	increase	approximately	10%-15%	during	fiscal	2009	on	an	absolute	dollar	basis	due	to	the	anticipated	introduction	of	a	strong portfolio	of	new	products	slated	for	fiscal	2009.		Management	expects	to	continue	to	invest	in	the	research	and	development	of	new	products	and	technology	in	order	to maintain	Garmin's	competitive	advantage	in	the	markets	in	which	it	competes.

# Other	Income	(Expense)

|  | 52-weeks	ended | 52-weeks	ended |
| :--- | :--- | :--- |
|  | December\t27,\t2008 | December\t29,\t2007 |
| Interest\tIncome | \t$35,535 | \t$41,995 |
| Foreign\tCurrency\tExchange | \t$(35,286) | \t$22,964 |
| Gain\ton\tsale\tof\tequity\tsecurities | \t$50,884 | \t$5,101 |
| Other | \t$1,216 | \t$862 |
| Total | \t$52,349 | \t$70,922 |

Other	income	(expense)	principally	consists	of	interest	income,	interest	expense	and	foreign	currency	exchange	gains	and	losses.		Other	income	(expense)	was lower	in	fiscal	2008	relative	to	fiscal	2007,	with	the	majority	of	this	difference	caused	by	a	large	foreign	currency	loss	in	2008.		Interest	income	for	fiscal	2008	decreased	due to	lower	interest	rates	and	a	decline	in	our	cash	and	marketable	securities	balances	during	the	year.

Foreign	currency	gains	and	losses	for	the	Company	are	primarily	tied	to	movements	by	the	Taiwan	Dollar	,	the	Euro,	and	the	British	Pound	Sterling.			The	U.S. Dollar	remains	the	functional	currency	of	Garmin	(Europe)	Ltd.		The	Euro	is	the	functional	currency	of	all	other	European	subsidiaries	excluding	Garmin	Danmark	and Garmin	Sweden.		As	these	entities	have	grown,	Euro	currency	moves	generated	material	gains	and	losses.			Additionally,	Euro-based	inter-company	transactions	in	Garmin Ltd.	can	also	generate	currency	gains	and	losses.		The	Canadian	dollar,	Danish	Krone,	Swedish	Krona	and	Australian	Dollar	are	the	functional	currency	of	Dynastream Innovations,	Inc.,	Garmin	Danmark,	Garmin	Sweden,	and	Garmin	Australasia	respectively;	due	to	these	entities'	relative	size,	currency	moves	are	not	expected	to	have	a material	impact	on	the	Company's	financial	statements.

The	$35.3	million	currency	loss	in	2008	was	related	to	the	strengthening	of	the	U.S.	Dollar	offset	by	a	gain	associated	with	the	sales	and	tender	of	our	Tele	Atlas N.V.	shares.		During	2008,	the	Taiwan	Dollar	weakened	1.6%	in	comparison	to	the	U.S.	Dollar,	resulting	in	a	$20.8	million	gain.		The	Euro	weakened	4.1%	and	the	British Pound	Sterling	weakened	26.1%	relative	to	the	U.S.	Dollar	in	2008	which	resulted	in	a	$77.3	million	loss.	The	relative	weakness	of	the	Taiwan	Dollar	and	Euro/British Pound	Sterling	have	offsetting	impacts	due	to	the	use	of	the	Taiwan	Dollar	for	manufacturing	costs	while	the	Euro	and	British	Pound	Sterling	transactions	relate	to	revenue. Offsetting	this	net	loss	was	a	realized	gain	of	$21.5	million	due	to	the	strengthening	of	the	Euro	between	the	date	of	purchase	of	the	Tele	Atlas	N.V.	shares	in	October	2007 to	the	dates	of	tender	in	February,	March,	and	June	2008.		Other	net	currency	losses	and	the	timing	of	transactions	created	the	remaining	loss	of	$0.3	million.

The	majority	of	 the	$23.0	million	currency	gain	 in	fiscal	2007	was	due	 to	 the	weakening	of	 the	U.S.	Dollar	compared	 to	 the	Euro	and	 the	British	Pound Sterling.			During	fiscal	2007,	the	Taiwan	Dollar	strengthened	relative	to	the	U.S.	Dollar,	resulting	in	a	$2.5	million	loss.			The	British	Pound	Sterling	and	the	Euro strengthened	2%	and	11.4%	respectively,	relative	to	the	U.S.	Dollar	during	fiscal	2007,	which	resulted	in	a	$25.6	million	gain.			Other	net	currency	gains	and	the	timing	of transactions	created	the	remaining	loss	of	$0.1	million.

Other	income	of	$50.9	million	in	2008	was	primarily	generated	from	the	sale	of	our	equity	interest	in	Tele	Atlas	N.V.	which	we	acquired	in	2007	in	connection with	our	announced	intent	to	make	a	cash	offer	for	all	outstanding	shares,	which	was	subsequently	abandoned.

# Income	Tax	Provision

Our	earnings	before	taxes	fell	6.5%	when	compared	to	2007,	yet	our	income	tax	expense	increased	by	$58.2	million,	to	$181.5	million,	for	fiscal	year	2008	from $123.3	million	for	fiscal	year	2007,	due	to	a	higher	effective	tax	rate.		The	effective	tax	rate	was	19.9%	for	fiscal	2008	compared	to	12.6%	for	fiscal	2007.		The	increase	in tax	rate	is	due	to	a	change	in	tax	law	related	to	the	repatriation	of	earnings	from	our	Taiwan	subsidiary	and	the	unfavorable	mix	of	taxable	income	among	the	tax jurisdictions	in	which	the	Company	operates.

# Net	Income

As	a	result	of	the	various	factors	noted	above,	net	income	decreased	14%	to	$732.8	million	for	fiscal	year	2008	compared	to	$855.0	million	for	fiscal	year	2007.

# Comparison	of	Fiscal	Years	Ended	December	27,	2007	and	December	30,	2006

|  | Fiscal	year	ended	December	29,	2007 | Fiscal	year	ended	December	29,	2007 | Fiscal	year	ended	December	30,	2006 | Fiscal	year	ended	December	30,	2006 | Year	over	Year | Year	over	Year |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Net\tSales | %\tof\tRevenues | Net\tSales | %\tof\tRevenues | $\tChange | %\tChange |
| Outdoor/Fitness | \t$339,741 | 10.7% | \t$285,362 | 16.1% | \t$54,379 | 19.1% |
| Marine | 203,399 | 6.4% | 166,639 | 9.4% | 36,760 | 22.1% |
| Automotive/Mobile | 2,342,184 | 73.6% | 1,089,093 | 61.4% | 1,253,091 | 115.1% |
| Aviation | 294,995 | 9.3% | 232,906 | 13.1% | 62,089 | 26.7% |
| Total | \t$3,180,319 | 100.0% | \t$1,774,000 | 100.0% | \t$1,406,319 | 79.3% |

The	increase	in	total	net	sales	during	fiscal	2007	was	primarily	due	to	the	introduction	of	over	60	new	products	and	overall	demand	for	our	automotive	products.		The aviation,	marine,	and	outdoor/fitness	segments	also	experienced	solid	growth	in	2007.			Total	units	sold	increased	128%	to	12.3	million	in	2007	from	5.4	million	in	2006.

The	increase	in	net	sales	to	consumers	was	primarily	due	to	the	introduction	of	many	new	automotive,	outdoor/fitness,	and	marine	products,	strong	demand	for	our automotive	products,	and	solid	demand	for	our	aviation,	marine,	and	outdoor/fitness	products.		It	is	management's	belief	that	the	continued	demand	for	the	Company's automotive	products	is	due	to	overall	increased	consumer	awareness	of	the	capabilities	and	applications	of	GPS,	particularly	as	those	capabilities	pertain	to	automobile navigation.		Additionally,	the	expansion	of	the	GPS	market	in	general,	as	well	as	enhanced	feature	sets	in	our	products	specifically,	has	added	to	our	growth.		Innovative new	product	offerings,	enhanced	cartography,	rich	feature	sets,	and	products	featuring	high	sensitivity	GPS	capabilities	increased	sales	of	our	marine	and	outdoor	fitness segments.	 	The	 increase	 in	 aviation	 sales	 for	 fiscal	 2007	 was	 primarily	 due	 to	 increased	 sales	 from	 panel	 mount	 products	 sold	 into	 the	 OEM	 (original	 equipment manufacturers)	and	retrofit	markets.	Sales	of	the	G1000	integrated	glass	cockpit	were	the	primary	reason	for	increased	OEM	sales	in	2006.		While	Temporary	Flight Restrictions	(TFR's)	continue	to	impact	general	aviation,	the	flying	community	is	adapting	to	these	changes	and	returning	to	the	skies	in	greater	numbers.

|  | Fiscal	year	ended	December	29,	2007 | Fiscal	year	ended	December	29,	2007 | Fiscal	year	ended	December	30,	2006 | Fiscal	year	ended	December	30,	2006 | Year	over	Year | Year	over	Year |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Gross\tProfit | %\tof\tRevenues | Gross\tProfit | %\tof\tRevenues | $\tChange | %\tChange |
| Outdoor/Fitness | \t$184,655 | 54.4% | \t$163,638 | 57.3% | \t$21,017 | 12.8% |
| Marine | 110,169 | 54.2% | 92,952 | 55.8% | 17,217 | 18.5% |
| Automotive/Mobile | 973,205 | 41.6% | 475,191 | 43.6% | 498,014 | 104.8% |
| Aviation | 195,226 | 66.2% | 150,605 | 64.7% | 44,621 | 29.6% |
| Total | \t$1,463,255 | 46.0% | \t$882,386 | 49.7% | \t$580,869 | 65.8% |

The	increase	in	gross	profit	dollars	was	primarily	attributable	to	the	introduction	of	over	60	new	products	and	strong	demand	for	our	automotive	and	outdoor/fitness products.		The	reduction	in	gross	margin	percentage	was	primarily	due	to	the	strong	growth	experienced	in	our	lower-margin	automotive/mobile	product	line,	offset	to	some extent	by	strong	gross	margins	in	our	other	three	segments.		Notably	gross	margin	in	our	automotive/mobile	segment	did	not	fall	as	much	as	anticipated	due	to	volume discounts	on	certain	components,	less	price	competition	than	anticipated,	and	new	"premium"	feature-rich	products	with	higher	selling	prices	and	margins.		The	rise	in aviation	gross	margin	was	primarily	due	to	a	shift	in	product	mix	within	our	OEM	and	retrofit	products.		The	decline	in	gross	margin	in	the	outdoor/fitness	and	marine segments	was	primarily	due	to	a	shift	in	product	mix.

|  | Fiscal	year	ended	December	29,	2007 | Fiscal	year	ended	December	29,	2007 | Fiscal	year	ended	December	30,	2006 | Fiscal	year	ended	December	30,	2006 |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Selling,\tGeneral\t&amp; |  | Selling,\tGeneral\t&amp; |  | Year\tover\tYear | Year\tover\tYear |
|  | Admin.\tExpenses | %\tof\tRevenues | Admin.\tExpenses | %\tof\tRevenues | $\tChange | %\tChange |
| Outdoor/Fitness | \t$41,119 | 12.1% | \t$30,176 | 10.6% | \t$10,943 | 36.3% |
| Marine | 25,914 | 12.7% | 19,307 | 11.6% | 6,607 | 34.2% |
| Automotive/Mobile | 305,065 | 13.0% | 145,113 | 13.3% | 159,952 | 110.2% |
| Aviation | 24,400 | 8.3% | 19,917 | 8.6% | 4,483 | 22.5% |
| Total | \t$396,498 | 12.5% | \t$214,513 | 12.1% | \t$181,985 | 84.8% |

The	 increase	 in	 expense	 was	 primarily	 attributable	 to	 increases	 in	 employment	 generally	 across	 the	 organization,	 significantly	 increased	 advertising	 costs	 (up	 80%) associated	primarily	with	mass-market	advertising	to	increase	brand	awareness	and	promote	our	automotive	products,	increased	information	technology	staffing	and	support costs,	increased	staffing	in	our	sales	and	marketing	group	to	increase	focus	on	specific	target	markets,	and	additional	staffing	in	our	customer	call	center.

# Research	and	Development	Expenses

|  | Fiscal	year	ended	December	29,	2007 | Fiscal	year	ended	December	29,	2007 | Fiscal	year	ended	December	30,	2006 | Fiscal	year	ended	December	30,	2006 |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Research\t&amp; |  | Research\t&amp; |  | Year\tover\tYear | Year\tover\tYear |
|  | Development | %\tof\tRevenues | Development | %\tof\tRevenues | $\tChange | %\tChange |
| Outdoor/Fitness | \t$23,302 | 6.9% | \t$16,697 | 5.9% | \t$6,605 | 39.6% |
| Marine | 16,879 | 8.3% | 13,121 | 7.9% | 3,758 | 28.6% |
| Automotive/Mobile | 59,390 | 2.5% | 37,125 | 3.4% | 22,265 | 60.0% |
| Aviation | 59,835 | 20.3% | 46,371 | 19.9% | 13,464 | 29.0% |
| Total | \t$159,406 | 5.0% | \t$113,314 | 6.4% | \t$46,092 | 40.7% |

The	increase	in	research	and	development	expense	was	primarily	attributable	to	the	addition	of	over	400	associates	to	our	research	and	development	team	during	fiscal 2007.		A	key	strategic	initiative	for	future	growth	and	success	of	Garmin	is	continuous	innovation,	development	and	introduction	of	new	products,	which	was	facilitated	by these	additions	to	research	and	development	staff.

|  | Fiscal	year	ended<br>December	29,	2007 | Fiscal	year	ended<br>December	30,	2006 |
| :--- | :--- | :--- |
| Interest\tincome | \t$41,995 | \t$35,897 |
| Interest\texpense | (207) | (41) |
| Foreign\tcurrency\tgain | 22,964 | 596 |
| Gain\ton\tsale\tof\tequity\tsecurities | 5,101 | 3,852 |
| Other | 1,069 | (309) |
| Total | \t$70,922 | \t$39,995 |

Other	income	(expense)	principally	consists	of	interest	income,	interest	expense	and	foreign	currency	exchange	gains	and	losses.		Other	income	(expense)	was higher	in	fiscal	2007	relative	to	fiscal	2006,	with	the	majority	of	this	difference	caused	by	increased	interest	income	and	a	large	foreign	currency	gain	in	2007.		Interest income	for	fiscal	2007	increased	due	to	higher	interest	rates	and	larger	cash	and	marketable	securities	balances	during	the	year,	increasing	the	returns	on	the	Company's	cash and	cash	equivalents.

Foreign	currency	gains	and	losses	for	the	Company	in	2007	were	primarily	tied	to	movements	by	the	Taiwan	Dollar,	the	Euro,	and	the	British	Pound	Sterling.			The U.S.	Dollar	remains	the	functional	currency	of	Garmin	(Europe)	Ltd.		The	Euro	Dollar	is	the	functional	currency	of	Garmin	France,	Garmin	Deutschland,	Garmin	Iberia,	and Garmin	Italia.		As	these	entities	grow,	Euro	currency	moves	will	generate	material	gains	and	losses.			Additionally,	Euro-based	inter-company	transactions	between	Garmin Ltd.	and	its	subsidiaries	can	also	generate	currency	gains	and	losses.		The	Canadian	dollar	is	the	functional	currency	of	Dynastream	Innovations,	Inc.;	due	to	this	entity's relative	size,	its	currency	moves	do	not	have	a	material	impact	on	the	Company's	financial	statements.

The	majority	of	 the	$23.0	million	currency	gain	 in	fiscal	2007	was	due	 to	 the	weakening	of	 the	U.S.	Dollar	compared	 to	 the	Euro	and	 the	British	Pound Sterling.	 	During	fiscal	2007,	 the	Taiwan	Dollar	weakened	relative	 to	 the	U.S.	Dollar,	resulting	 in	a	$2.5	million	 loss.	 	The	British	Pound	Sterling	and	 the	Euro strengthened	2%	and	11.4%	respectively,	relative	to	the	U.S.	Dollar	during	fiscal	2007,	which	resulted	in	a	$25.6	million	gain.			Other	net	currency	gains	and	the	timing	of transactions	created	the	remaining	loss	of	$0.1	million.

Foreign	currency	gains	and	losses	for	the	Company	in	2006	were	primarily	tied	to	movements	by	the	Taiwan	Dollar	and	the	British	Pound	Sterling	relative	to	the U.S.	Dollar.			The	U.S.	dollar	weakened	when	compared	to	the	Taiwan	Dollar	during	fiscal	2006,	creating	a	$3.0	million	loss,	which	was	offset	almost	entirely	by	a	$4.5 million	gain	as	a	result	of	strengthening	in	the	U.S.	Dollar	relative	to	the	British	Pound	Sterling.			Other	net	currency	gains	and	the	timing	of	transactions	created	the remaining	loss	of	$0.9	million.

Income	 tax	expense	 increased	by	$42.9	million,	 to	$123.3	million,	for	fiscal	year	2007	from	$80.4	million	for	fiscal	year	2006,	due	 to	our	higher	 taxable income.		The	effective	tax	rate	was	12.6%	for	fiscal	2007	versus	13.5%	for	fiscal	2006.		The	decrease	in	tax	rate	is	due	to	additional	tax	benefits	received	from	Taiwan	as	a result	of	our	continued	capital	investment	in	our	manufacturing	facilities	in	Taiwan,	tax	credits	resulting	from	our	decision	to	repatriate	certain	of	our	Taiwan	earnings	to our	parent	company,	and	the	increased	contribution	to	our	income	from	lower	tax	jurisdictions	during	2007	relative	to	2006.		This	lower	effective	tax	rate	resulted	in	a decrease	in	the	ratio	of	income	tax	as	a	percentage	of	revenue	of	approximately	0.7%	from	fiscal	2006	to	fiscal	2007.

As	a	result	of	the	various	factors	noted	above,	net	income	increased	66%	to	$855.0	million	for	fiscal	year	2007	compared	to	$514.1	million	for	fiscal	year	2006.

# Liquidity	and	Capital	Resources

Net	cash	generated	by	operations	was	$862.2	million,	$682.1	million,	and	$361.9	million	for	fiscal	years	2008,	2007	and	2006,	respectively.		We	experienced reductions	in	both	accounts	receivable	and	inventories	that	contributed	to	cash	generated	by	operations	in	2008.		Accounts	payable	also	decreased	representing	a	use	of cash.		We	are	focused	on	reducing	accounts	receivable	days	outstanding	as	we	negotiate	shorter	payment	terms	with	our	customers.		With	regard	to	inventory,	we	operate with	a	customer-oriented	approach	and	seek	to	maintain	sufficient	inventory	to	meet	customer	demand.		Because	we	desire	to	respond	quickly	to	our	customers	and minimize	order	fulfillment	time,	our	inventory	levels	are	generally	substantial	enough	to	meet	most	demand.		We	also	attempt	to	carry	sufficient	inventory	levels	of	key components	so	that	potential	supplier	shortages	have	as	minimal	an	impact	as	possible	on	our	ability	to	deliver	our	finished	products.		We	do	plan	to	further	reduce inventory	levels	in	2009	in	response	to	slowing	consumer	demand.

Capital	expenditures	in	2008	totaled	$119.6	million,	a	decrease	of	$37.2	million	from	fiscal	2007.		This	amount	in	2008	reflects	the	build-out	of	additional	manufacturing lines	in	Lin-Kou,	Taiwan,	completion	of	our	expanded	North	American	distribution	facility	and	maintenance	activities.		Capital	expenditures	in	2007	totaled	$156.8	million, an	increase	of	$63.9	million	from	fiscal	2006.			This	amount	in	2007	reflects	the	purchase	and	build-out	of	an	additional	manufacturing	facility	in	Lin-Kou,	Taiwan, continued	expansion	of	research	and	development	facilities	in	our	Taiwan	facilities,	as	well	as	ordinary	capital	expenditures	for	fiscal	2007.		Capital	expenditures	in	2006 totaled	$92.9	million,	an	increase	of	$65.8	million	from	fiscal	2005.			This	amount	in	2006	reflects	the	purchase	and	renovation	of	an	additional	manufacturing	facility	in Jhongli,	Taiwan,	the	purchase	of	a	new	European	headquarters	in	the	United	Kingdom,	as	well	as	ordinary	capital	expenditures	for	fiscal	2006.

We	have	budgeted	approximately	$60	million	of	capital	expenditures	during	fiscal	2009	to	include	normal	ongoing	capital	expenditures,	as	well	as	completion	of	the aviation	manufacturing	expansion	in	Olathe,	Kansas.

In	addition	to	capital	expenditures,	2008	cash	flow	used	in	investing	related	to	the	purchase	of	European	distributors	for	a	total	of	$60.1	million,	the	net	sale	of	$130.7 million	of	fixed	income	securities	associated	with	the	investment	of	our	on-hand	cash	balances	and	the	purchase	of	$7.0	million	of	intangible	assets.		The	net	sale	of	fixed income	securities	was	primarily	related	to	$239.3	million	of	cash	generated	from	the	tender	of	our	shares	of	Tele	Atlas	N.V.		Garmin's	average	return	on	its	investments during	fiscal	2008	was	approximately	3.4%.				In	addition	to	capital	expenditures,	2007	cash	flow	used	in	investing	related	to	the	purchase	of	Digital	Cyclone,	Inc.,	Garmin France	SAS,	Garmin	Deutschland	GmbH,	Garmin	Iberia	S.A.,	Garmin	Italia	S.p.A.,	and	the	assets	of	Nautamatic	Marine	Systems,	Inc.	for	a	total	of	$128.8	million,	the	net sale	of	$112.8	million	of	fixed	income	securities	associated	with	the	investment	of	our	on-hand	cash	balances	and	the	purchase	of	$2.9	million	of	intangible	assets.		The $112.8	million	net	sale	of	fixed	income	securities	includes	the	purchase	of	$188.2	million	of	Tele	Atlas	N.V.	outstanding	shares	in	connection	with	our	announced	intent	to make	a	cash	offer	for	all	outstanding	shares	which	was	subsequently	abandoned.	 	Garmin's	average	return	on	its	investments	during	fiscal	2007	was	approximately 4.3%.				In	addition	to	capital	expenditures,	in	2006	cash	flow	used	in	investing	related	to	the	purchase	of	Dynastream	Innovations,	Inc.	for	$36.5	million,	the	net	purchase	of $93.8	million	of	fixed	income	securities	associated	with	the	investment	of	our	on-hand	cash	balances	and	the	purchase	of	$3.1	million	of	intangible	assets.		Garmin's average	return	on	its	investments	during	fiscal	2006	was	approximately	4.7%.			It	is	management's	goal	to	invest	the	on-hand	cash	consistent	with	Garmin's	investment policy,	which	has	been	approved	by	the	Board	of	Directors.		The	investment	policy's	primary	purpose	is	to	preserve	capital,	maintain	an	acceptable	degree	of	liquidity,	and maximize	yield	within	the	constraint	of	low	credit	risk.

Net	cash	used	by	financing	activities	during	2008	was	$808.1	million	resulting	from	the	use	of	$671.8	million	for	the	stock	repurchases	and	$150.3	million	for	the payment	of	a	dividend	offset	by	$14.0	million	from	the	issuance	of	common	shares	related	to	the	exercise	of	employee	stock	options	and	stock	appreciation	rights	and	the related	tax	benefit.		The	$671.8	million	of	share	repurchases	represents	17.1	million	common	shares.		Refer	to	"Item	5.		Market	for	the	Company's	Common	Shares,	Related Shareholder	Matters	and	Issuer	Purchases	of	Equity	Securities"	for	additional	discussion	regarding	the	2008	share	repurchase	programs.	Cash	flow	related	to	financing activities	resulted	in	a	net	use	of	cash	in	2007	of	$136.1	million.	 	During	2007,	Garmin	repurchased	57,235	of	its	common	shares	under	the	3,000,000-share	stock repurchase	program	that	was	approved	by	the	Board	of	Directors	on	August	3,	2006	and	expired	on	December	31,	2007.			Sources	and	uses	in	financing	activities	during 2007	related	primarily	to	a	use	for	the	payment	of	a	dividend	($162.5	million)	and	the	purchase	of	stock	($7.8	million),	and	a	source	of	cash	from	the	issuance	of	common shares	related	to	the	exercise	of	employee	stock	options	and	stock	appreciation	rights	the	related	tax	benefit,	and	the	employee	stock	purchase	plan	($34.4	million).			Cash flow	related	to	financing	activities	resulted	in	a	net	use	of	cash	in	2006	of	$132.7	million.			During	2006,	Garmin	repurchased	1,155,300	shares	of	its	common	shares	under the	3,000,000-share	stock	repurchase	program	that	was	approved	by	the	Board	of	Directors	on	August	3,	2006	and	expired	on	December	31,	2007.			Sources	and	uses	in financing	activities	during	2006	related	primarily	to	uses	for	the	payment	of	a	dividend	($107.9	million)	and	stock	repurchase	($50.5	million),	and	a	source	of	cash	from	the issuance	of	common	shares	related	to	the	exercise	of	employee	stock	options	and	stock	appreciation	rights	and	the	related	tax	benefit,	and	the	employee	stock	purchase	plan ($25.7	million).

We	currently	use	cash	flow	from	operations	to	fund	our	capital	expenditures,	to	support	our	working	capital	requirements	and	to	repurchase	shares.		We	expect	that	future cash	requirements	will	principally	be	for	capital	expenditures,	working	capital,	repurchase	of	shares,	and	payment	of	dividends	declared.

We	believe	that	our	existing	cash	balances	and	cash	flow	from	operations	will	be	sufficient	to	meet	our	projected	capital	expenditures,	working	capital	and	other cash	requirements	at	least	through	the	end	of	fiscal	2009.

# Contractual	Obligations	and	Commercial	Commitments

Future	commitments	of	Garmin,	as	of	December	27,	2008,	aggregated	by	type	of	contractual	obligation,	are:

|  |  | Less	than |  |  | More	than |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Contractual\tObligations | Total | 1\tyear | 1-3\tyears | 3-5\tyears | 5\tyears |
| Operating\tLeases | \t$44,048 | \t$7,957 | \t$13,789 | \t$11,061 | \t$11,241 |
| Purchase\tObligations | 51,471 | 47,966 | 2,265 | 1,240 | 0 |
| Total | \t$95,519 | \t$55,923 | \t$16,054 | \t$12,301 | \t$11,241 |

Operating	leases	describes	lease	obligations	associated	with	Garmin	facilities	located	in	the	U.S.,	Taiwan,	Europe,	and	Canada.			Purchase	obligations	are	the aggregate	of	those	purchase	orders	that	were	outstanding	on	December	27,	2008;	these	obligations	are	created	and	then	paid	off	within	3	months	during	the	normal	course	of our	manufacturing	business.

We	may	be	required	to	make	significant	cash	outlays	related	to	unrecognized	tax	benefits.		However,	due	to	the	uncertainty	of	the	timing	of	future	cash	flows associated	with	our	unrecognized	tax	benefits,	we	are	unable	to	make	reasonably	reliable	estimates	of	the	period	of	cash	settlement,	if	any,	with	the	respective	taxing authorities.		Accordingly,	unrecognized	tax	benefits	of	$214.4	million	as	of	December	27,	2008,	have	been	excluded	from	the	contractual	obligations	table	above.		For further	information	related	to	unrecognized	tax	benefits,	see	Note	2,	"Income	Taxes",	to	the	consolidated	financial	statements	included	in	this	Report.

# Off-Balance	Sheet	Arrangements

We	do	not	have	any	off-balance	sheet	arrangements.

# Item	7A.		Quantitative	and	Qualitative	Disclosures	About	Market	Risk

# Market	Sensitivity

We	have	market	risk	primarily	in	connection	with	the	pricing	of	our	products	and	services	and	the	purchase	of	raw	materials.		Product	pricing	and	raw	materials	costs	are both	significantly	influenced	by	semiconductor	market	conditions.		Historically,	during	cyclical	industry	downturns,	we	have	been	able	to	offset	pricing	declines	for	our products	through	a	combination	of	improved	product	mix	and	success	in	obtaining	price	reductions	in	raw	materials	costs.

# Inflation

We	do	not	believe	that	inflation	has	had	a	material	effect	on	our	business,	financial	condition	or	results	of	operations.		If	our	costs	were	to	become	subject	to	significant inflationary	pressures,	we	may	not	be	able	to	fully	offset	such	higher	costs	through	price	increases.		Our	inability	or	failure	to	do	so	could	adversely	affect	our	business, financial	condition	and	results	of	operations.

# Foreign	Currency	Exchange	Rate	Risk

The	operation	of	Garmin's	subsidiaries	in	international	markets	results	in	exposure	to	movements	in	currency	exchange	rates.		We	have	experienced	significant foreign	currency	gains	and	losses	due	to	the	strengthening	and	weakening	of	the	U.S.	dollar.		The	potential	of	volatile	foreign	exchange	rate	fluctuations	in	the	future	could have	a	significant	effect	on	our	results	of	operations.

The	currencies	 that	create	a	majority	of	 the	Company's	exchange	rate	exposure	are	 the	Taiwan	Dollar,	 the	Euro,	and	British	Pound	Sterling.	 	Garmin	Corporation, headquartered	in	Shijr,	Taiwan,	uses	the	local	currency	as	the	functional	currency.		The	Company	translates	all	assets	and	liabilities	at	year-end	exchange	rates	and	income and	expense	accounts	at	average	rates	during	the	year.		In	order	to	minimize	the	effect	of	the	currency	exchange	fluctuations	on	our	net	assets,	we	have	elected	to	retain most	of	our	Taiwan	subsidiary's	cash	and	investments	in	marketable	securities	denominated	in	U.S.	dollars.		In	2008,	the	Taiwan	Dollar	weakened	1.6%	relative	to	the	U.S. Dollar	which	resulted	in	a	cumulative	translation	adjustment	of	negative	$15.3	million	at	the	end	of	fiscal	2008	and	a	net	foreign	currency	gain	of	$20.8	million	at	Garmin Corporation	during	2008.

All	European	subsidiaries	excluding	Garmin	(Europe)	Ltd.,	Garmin	Danmark	and	Garmin	Sweden	use	 the	Euro	as	 the	functional	currency.	 	The	 functional currency	of	our	largest	European	subsidiary,	Garmin	(Europe)	Ltd.	remains	the	U.S.	dollar,	and	as	some	transactions	occurred	in	British	Pounds	Sterling	or	Euros,	foreign currency	gains	or	losses	have	been	realized	historically	related	to	the	movements	of	those	currencies	relative	to	the	U.S.	dollar.			The	Company	believes	that	gains	and	losses will	become	more	material	in	the	future	as	our	European	presence	grows.				In	2008,	the	Euro	weakened	4.1%	relative	to	the	U.S.	dollar	and	the	British	Pound	Sterling weakened	 26.1%	 relative	 to	 the	 U.S.	 dollar. 	 These	 currency	 moves	 resulted	 in	 a	 foreign	 currency	 loss	 of	 $77.3	 million	 in	 Garmin	 Ltd.	 and	 our	 European subsidiaries.		Offsetting	this	net	loss	was	a	realized	gain	of	$21.5	million	due	to	the	strengthening	of	the	Euro	between	the	date	of	purchase	of	the	Tele	Atlas	N.V.	shares	in October	2007	to	the	dates	of	sale	and	tender	in	February,	March,	and	June	2008.		The	net	result	of	these	currency	moves	combined	with	other	losses	of	$0.3	million,	and	the timing	of	transactions	during	the	year	for	a	net	loss	of	$35.3	million	for	the	Company.

# Interest	Rate	Risk

We	have	no	outstanding	long-term	debt	as	of	December	27,	2008.			We,	therefore,	have	no	meaningful	debt-related	interest	rate	risk.

We	are	exposed	to	interest	rate	risk	in	connection	with	our	investments	in	marketable	securities.	 	As	interest	rates	change,	the	unrealized	gains	and	losses associated	with	those	securities	will	fluctuate	accordingly.		A	hypothetical	change	of	10%	in	interest	rates	would	not	have	a	material	effect	on	such	unrealized	gains	or losses.		At	December	27,	2008,	cumulative	unrealized	losses	on	those	securities	were	$22.2	million.

# Item	8.		Financial	Statements	and	Supplementary	Data

# CONSOLIDATED	FINANCIAL	STATEMENTS

# Garmin	Ltd.	and	Subsidiaries

| Report	of	Ernst	&amp;	Young	LLP,	Independent	Registered	Public	Accounting	Firm | 53 |
| :--- | :--- |
| Consolidated\tBalance\tSheets\tat\tDecember\t27,\t2008\tand\tDecember\t29,\t2007 | 54 |
| Consolidated\tStatements\tof\tIncome\tfor\tthe\tYears\tEnded\tDecember\t27,\t2008,\tDecember\t29,\t2007\tand\tDecember\t30,\t2006 | 55 |
| Consolidated\tStatements\tof\tStockholders'\tEquity\tfor\tthe\tYears\tEnded\tDecember\t27,\t2008,\tDecember\t29,\t2007\tand\tDecember\t30,\t2006 | 56 |
| Consolidated\tStatements\tof\tCash\tFlows\tfor\tthe\tYears\tDecember\t27,\t2008,\tDecember\t29,\t2007\tand\tDecember\t30,\t2006 | 57 |
| Notes\tto\tConsolidated\tFinancial\tStatements | 59 |

# Report	of	Ernst	&	Young	LLP

# Independent	Registered	Public	Accounting	Firm

# The	Board	of	Directors	and	Shareholders

We	have	audited	the	accompanying	consolidated	balance	sheets	of	Garmin	Ltd.	and	Subsidiaries	(the	Company)	as	of	December	27,	2008	and	December	29,	2007	and	the related	consolidated	statements	of	income,	stockholders'	equity,	and	cash	flows	for	each	of	the	three	years	in	the	period	ended	December	27,	2008.		Our	audits	also	included the	financial	statement	schedule	listed	in	the	index	at	Item	15(a)(2).		These	financial	statements	and	schedule	are	the	responsibility	of	the	Company's	management.		Our responsibility	is	to	express	an	opinion	on	these	financial	statements	and	schedule	based	on	our	audits.

We	conducted	our	audits	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States).	Those	standards	require	that	we	plan	and perform	the	audit	to	obtain	reasonable	assurance	about	whether	the	financial	statements	are	free	of	material	misstatement.	An	audit	includes	examining,	on	a	test	basis, evidence	supporting	the	amounts	and	disclosures	in	the	financial	statements.	An	audit	also	includes	assessing	the	accounting	principles	used	and	significant	estimates	made by	management,	as	well	as	evaluating	the	overall	financial	statement	presentation.	We	believe	that	our	audits	provide	a	reasonable	basis	for	our	opinion.

In	our	opinion,	the	financial	statements	referred	to	above	present	fairly,	in	all	material	respects,	the	consolidated	financial	position	of	Garmin	Ltd.	and	Subsidiaries	at December	27,	2008	and	December	29,	2007	and	the	consolidated	results	of	their	operations	and	their	cash	flows	for	each	of	the	three	years	in	the	period	ended	December	27, 2008,	in	conformity	with	U.S.	generally	accepted	accounting	principles.		Also,	in	our	opinion,	the	related	financial	statement	schedule,	when	considered	in	relation	to	the basic	financial	statements	taken	as	a	whole,	presents	fairly	in	all	material	respects	the	information	set	forth	therein.

We	also	have	audited,	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States),	Garmin	Ltd.'s	internal	control	over	financial reporting	as	of	December	27,	2008,	based	on	criteria	established	in	the	Internal	Control-Integrated	Framework	issued	by	the	Committee	of	Sponsoring	Organizations	of	the Treadway	Commission	and	our	report	dated	February	24,	2009	expressed	an	unqualified	opinion	thereon.

/s/	Ernst	&	Young	LLP

# Kansas	City,	Missouri

# Consolidated	Balance	Sheets

# (In	thousands,	except	share	information)

|  | December	27,<br>2008 | December	29,<br>2007 |
| :--- | :--- | :--- |
| Assets |  |  |
| Current\tassets: |  |  |
| Cash\tand\tcash\tequivalents | \t$696,335 | \t$707,689 |
| Marketable\tsecurities\t(\tNote\t3) | 12,886 | 37,551 |
| Accounts\treceivable,\tless\tallowance\tfor\tdoubtful\taccounts\tof\t\t$42,409\tin\t2008\tand\t$10,246\tin\t2007 | 741,321 | 952,513 |
| Inventories,\tnet | 425,312 | 505,467 |
| Deferred\tincome\ttaxes\t(Note\t6) | 49,825 | 107,376 |
| Prepaid\texpenses\tand\tother\tcurrent\tassets | 58,746 | 22,179 |
| Total\tcurrent\tassets | 1,984,425 | 2,332,775 |
| Property\tand\tequipment,\tnet\t(Note\t2) |  |  |
| Land\tand\timprovements | 88,272 | 79,445 |
| Building\tand\timprovements | 244,804 | 204,083 |
| Office\tfurniture\tand\tequipment | 72,665 | 48,656 |
| Manufacturing\tequipment | 113,956 | 86,037 |
| Engineering\tequipment | 59,009 | 51,670 |
| Vehicles | 14,698 | 13,104 |
|  | 593,404 | 482,995 |
| Accumulated\tdepreciation | (148,152) | (108,848) |
|  | 445,252 | 374,147 |
| Restricted\tcash\t(Note\t4) | 1,941 | 1,554 |
| Marketable\tsecurities\t(Note\t3) | 262,009 | 386,954 |
| License\tagreements,\tnet | 16,013 | 14,672 |
| Other\tintangible\tassets | 214,941 | 181,358 |
| Total\tassets | \t$2,924,581 | \t$3,291,460 |
| Liabilities\tand\tStockholders'\tEquity |  |  |
| Current\tliabilities: |  |  |
| Accounts\tpayable | \t$160,094 | \t$341,053 |
| Salaries\tand\tbenefits\tpayable | 34,241 | 31,696 |
| Accrued\twarranty\tcosts | 87,408 | 71,636 |
| Accrued\tsales\tprogram\tcosts | 90,337 | 142,360 |
| Other\taccrued\texpenses | 87,021 | 138,243 |
| Income\ttaxes\tpayable | 20,075 | 76,895 |
| Total\tcurrent\tliabilities | 479,176 | 801,883 |
| Deferred\tincome\ttaxes\t(Note\t6) | 4,070 | 11,935 |
| Non-current\ttaxes | 214,366 | 126,593 |
| Other\tliabilities | 1,115 | 435 |
| Stockholders'\tequity: |  |  |
| Common\tstock,\t$0.005\tpar\tvalue,\t1,000,000,000\tshares\tauthorized |  |  |
| (Notes\t9,\t10\tand\t11): |  |  |
| Issued\tand\toutstanding\tshares\t-\t200,363,000\tin\t2008,\tand\t216,980,000\tin\t2007 | 1,002 | 1,086 |
| Additional\tpaid-in\tcapital | - | 132,264 |
| Retained\tearnings\t(Note\t2) | 2,262,503 | 2,171,134 |
| Accumulated\tother\tcomprehensive\tgain/(loss) | (37,651) | 46,130 |
| Total\tstockholders'\tequity | 2,225,854 | 2,350,614 |
| Total\tliabilities\tand\tstockholders'\tequity | \t$2,924,581 | \t$3,291,460 |

See	accompanying	notes.

# Consolidated	Statements	of	Income

# (In	Thousands,	Except	Per	Share	Information)

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Net\tsales | \t$3,494,077 | \t$3,180,319 | \t$1,774,000 |
| Cost\t\tof\tgoods\tsold | 1,940,562 | 1,717,064 | 891,614 |
| Gross\tprofit | 1,553,515 | 1,463,255 | 882,386 |
| Selling,\tgeneral\tand\tadministrative\texpenses | 485,389 | 396,498 | 214,513 |
| Research\tand\tdevelopment\texpense | 206,109 | 159,406 | 113,314 |
|  | 691,498 | 555,904 | 327,827 |
| Operating\tincome | 862,017 | 907,351 | 554,559 |
| Other\tincome\t(expense): |  |  |  |
| Interest\tincome | 35,535 | 41,995 | 35,897 |
| Interest\texpense | (607) | (207) | (41) |
| Foreign\tcurrency | (35,286) | 22,964 | 596 |
| Gain\ton\tsale\tof\tequity\tsecurities | 50,884 | 5,101 | 3,852 |
| Other | 1,823 | 1,069 | (309) |
|  | 52,349 | 70,922 | 39,995 |
| Income\tbefore\tincome\ttaxes | 914,366 | 978,273 | 594,554 |
| Income\ttax\tprovision\t(benefit):\t(Note\t6) |  |  |  |
| Current | 136,252 | 179,355 | 113,226 |
| Deferred | 45,266 | (56,093) | (32,795) |
|  | 181,518 | 123,262 | 80,431 |
| Net\tincome | \t$732,848 | \t$855,011 | \t$514,123 |
| Basic\tnet\tincome\tper\tshare\t(Note\t10) | \t$3.51 | \t$3.95 | \t$2.38 |
| Diluted\tnet\tincome\tper\tshare\t(Note\t10) | \t$3.48 | \t$3.89 | \t$2.35 |

# Consolidated	Statements	of	Stockholders'	Equity

# (In	Thousands,	Except	Share	and	Per	Share	Information)

|  |  |  | Additional |  | Other |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Common\tStock | Common\tStock | Paid-In | Retained | Comprehensive |  |
|  | Shares | Dollars | Capital | Earnings | Gain/(Loss) | Total |
| Balance\tat\tDecember\t31,\t2005 | 216,134 | \t$1,081 | \t$96,242 | \t$1,072,454 | \t$(12,513) | \t$1,157,264 |
| Net\tincome | – | – | – | 514,123 | – | 514,123 |
| Translation\tadjustment | – | – | – | – | 7,525 | 7,525 |
| Adjustment\trelated\tto\tunrealized\tgains\t(losses)\ton |  |  |  |  |  |  |
| available-for-sale\tsecurities,\tnet\tof\tincome\ttax |  |  |  |  |  |  |
| effects\tof\t$355 | – | – | – | – | (287) | (287) |
| Comprehensive\tincome |  |  |  |  |  | 521,361 |
| Dividends\tpaid | – | – | – | (107,923) | – | (107,923) |
| Tax\tbenefit\tfrom\texercise\tof\temployee\tstock\toptions | – | – | 9,660 | – | – | 9,660 |
| Issuance\tof\tcommon\tstock\tfrom\texercise\tof\tstock |  |  |  |  |  |  |
| options | 994 | 6 | 12,499 | – | – | 12,505 |
| Stock\tappreciation\trights | – | – | 11,913 | – | – | 11,913 |
| Purchase\tand\tretirement\tof\tcommon\tstock | (1,155) | (6) | (50,444) | – | – | (50,450) |
| Issuance\tof\tcommon\tstock\tthrough\tstock\tpurchase |  |  |  |  |  |  |
| plan | 125 | 1 | 3,568 | – | – | 3,569 |
| Balance\tat\tDecember\t30,\t2006 | 216,098 | \t$1,082 | \t$83,438 | \t$1,478,654 | \t$(5,275) | \t$1,557,899 |
| Net\tincome | – | – | – | 855,011 | – | 855,011 |
| Translation\tadjustment | – | – | – | – | 992 | 992 |
| Adjustment\trelated\tto\tunrealized\tgains\t(losses)\ton |  |  |  |  |  |  |
| available-for-sale\tsecurities,\tnet\tof\tincome\ttax |  |  |  |  |  |  |
| effects\tof\t$31 | – | – | – | – | 50,413 | 50,413 |
| Comprehensive\tincome |  |  |  |  |  | 906,415 |
| Dividends\tpaid | – | – | – | (162,531) | – | (162,531) |
| Tax\tbenefit\tfrom\texercise\tof\temployee\tstock\toptions | – | – | 17,434 | – | – | 17,434 |
| Issuance\tof\tcommon\tstock\tfrom\texercise\tof\tstock |  |  |  |  |  |  |
| options | 819 | 4 | 11,278 | – | – | 11,282 |
| Stock\tappreciation\trights | – | – | 22,164 | – | – | 22,164 |
| Purchase\tand\tretirement\tof\tcommon\tstock | (57) | – | (7,780) | – | – | (7,780) |
| Issuance\tof\tcommon\tstock\tthrough\tstock\tpurchase |  |  |  |  |  |  |
| plan | 120 | – | 5,730 | – | – | 5,730 |
| Balance\tat\tDecember\t29,\t2007 | 216,980 | \t$1,086 | \t$132,264 | \t$2,171,134 | \t$46,130 | \t$2,350,614 |
| Net\tincome | – | – | – | 732,848 | – | 732,848 |
| Translation\tadjustment | – | – | (3,053) | (1,595) | (14,991) | (19,639) |
| Adjustment\trelated\tto\tunrealized\tgains\t(losses)\ton |  |  |  |  |  |  |
| available-for-sale\tsecurities,\tnet\tof\tincome\ttax |  |  |  |  |  |  |
| effects\tof\t$122 | – | – | – | – | (68,790) | (68,790) |
| Comprehensive\tincome |  |  |  |  |  | 644,419 |
| Dividends\tpaid | – | – | – | (150,251) | – | (150,251) |
| Tax\tbenefit\tfrom\texercise\tof\temployee\tstock\toptions | – | – | 2,143 | – | – | 2,143 |
| Issuance\tof\tcommon\tstock\tfrom\texercise\tof\tstock |  |  |  |  |  |  |
| options | 158 | 2 | 2,873 | – | – | 2,875 |
| Stock\tappreciation\trights | – | – | 38,872 | – | – | 38,872 |
| Purchase\tand\tretirement\tof\tcommon\tstock | (17,138) | (86) | (182,128) | (489,633) | – | (671,847) |
| Issuance\tof\tcommon\tstock\tthrough\tstock\tpurchase |  |  |  |  |  |  |
| plan | 363 | – | 9,029 | – | – | 9,029 |
| Balance\tat\tDecember\t27,\t2008 | 200,363 | \t$1,002 | \t$– | \t$2,262,503 | \t$(37,651) | \t$2,225,854 |

# Consolidated	Statements	of	Cash	Flows

# (In	Thousands)

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Operating\tActivities: |  |  |  |
| Net\tincome | \t$732,848 | \t$855,011 | \t$514,123 |
| Adjustments\tto\treconcile\tnet\tincome\tto\tnet\tcash\tprovided\tby\toperating\tactivities: |  |  |  |
| \t\t\t\t\t\tDepreciation | 46,910 | 35,524 | 21,535 |
| \t\tAmortization | 31,507 | 28,513 | 22,940 |
| \t\tLoss\ton\tsale\tof\tproperty\tand\tequipment | 124 | 560 | 67 |
| \t\tProvision\tfor\tdoubtful\taccounts | 32,355 | 3,617 | 955 |
| \t\tProvision\tfor\tobsolete\tand\tslow-moving\tinventories | 24,461 | 34,975 | 23,245 |
| \t\tUnrealized\tforeign\tcurrency\tlosses/(gains) | 15,887 | (926) | (344) |
| \t\tDeferred\tincome\ttaxes | 50,887 | (57,843) | (35,060) |
| \t\tStock\tcompensation | 38,872 | 22,164 | 11,913 |
| \t\tRealized\tgains\ton\tmarketable\tsecurities | (50,884) | (5,101) | (3,852) |
| \t\tChanges\tin\toperating\tassets\tand\tliabilities,\tnet\tof\tacquisition: |  |  |  |
| \t\t\t\tAccounts\treceivable | 206,101 | (477,108) | (230,111) |
| \t\t\t\tInventories | 83,035 | (224,180) | (92,708) |
| \t\t\t\tPrepaid\texpenses\tand\tother\tcurrent\tassets | (4,356) | 6,213 | (4,357) |
| \t\t\t\tPurchase\tof\tlicenses | (15,289) | (23,569) | (2,950) |
| \t\t\t\tAccounts\tpayable | (236,287) | 174,781 | 10,187 |
| \t\t\t\tAccrued\texpenses | (3,827) | 253,909 | 97,167 |
| \t\t\t\tIncome\ttaxes\tpayable | (90,180) | 55,548 | 29,105 |
| Net\tcash\tprovided\tby\toperating\tactivities | 862,164 | 682,088 | 361,855 |
| Investing\tactivities: |  |  |  |
| Purchases\tof\tproperty\tand\tequipment | (119,623) | (156,777) | (92,906) |
| Proceeds\tfrom\tsale\tof\tproperty\tand\tequipment | 19 | 5 | 76 |
| Purchase\tof\tintangible\tassets | (6,971) | (2,918) | (3,115) |
| Purchase\tof\tmarketable\tsecurities | (373,580) | (1,672,041) | (453,085) |
| Redemption\tof\tmarketable\tsecurities | 504,324 | 1,784,816 | 359,313 |
| Acquistions,\tnet\tof\tcash\tacquired | (60,131) | (128,751) | (36,499) |
| Change\tin\trestricted\tcash | (387) | (29) | (169) |
| Net\tcash\tused\tin\tinvesting\tactivities | (56,349) | (175,695) | (226,385) |
| Financing\tactivities: |  |  |  |
| Dividends | (150,251) | (162,531) | (107,923) |
| Payment\ton\tlong-term\tdebt | - | (248) | (11) |
| Proceeds\tfrom\tissuance\tof\tcommon\tstock\tthrough\tstock\tpurchase\tplan | 9,029 | 5,730 | 3,569 |
| Proceeds\tfrom\tissuance\tof\tcommon\tstock\tfrom\texercise\tof\tstock\toptions | 2,875 | 11,278 | 12,505 |
| Tax\tbenefit\trelated\tto\tstock\toption\texercise | 2,143 | 17,434 | 9,660 |
| Purchase\tof\tcommon\tstock | (671,847) | (7,780) | (50,450) |
| Net\tcash\tused\tin\tfinancing\tactivities | (808,051) | (136,117) | (132,650) |
| Effect\tof\texchange\trate\tchanges\ton\tcash\tand\tcash\tequivalents | (9,118) | 92 | 149 |
| Net\tincrease/(decrease)\tin\tcash\tand\tcash\tequivalents | (11,354) | 370,368 | 2,969 |
| Cash\tand\tcash\tequivalents\tat\tbeginning\tof\tyear | 707,689 | 337,321 | 334,352 |
| Cash\tand\tcash\tequivalents\tat\tend\tof\tyear | \t$696,335 | \t$707,689 | \t$337,321 |

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Supplemental\tdisclosures\tof\tcash\tflow\tinformation |  |  |  |
| Cash\tpaid\tduring\tthe\tyear\tfor\tincome\ttaxes | \t$134,421 | \t$54,963 | \t$67,044 |
| Cash\treceived\tduring\tthe\tyear\tfrom\tincome\ttax\trefunds | \t$177 | \t$779 | \t$537 |
| Cash\tpaid\tduring\tthe\tyear\tfor\tinterest | \t$607 | \t$207 | \t$41 |
| Supplemental\tdisclosure\tof\tnon-cash\tinvesting\tand\tfinancing\tactivities |  |  |  |
| Change\tin\tmarketable\tsecurities\trelated\tto\tunrealized\tappreciation\t(depreciation) | \t$(68,668) | \t$51,210 | \t$68 |
| Acquisitions,\tnet\tof\tcash\tacquired |  |  |  |
| Fair\tvalue\tof\tassets\tacquired | \t$136,952 | \t$256,609 | \t$42,616 |
| Liabilities\tassumed | (60,336) | (106,654) | (5,997) |
| Less\tcash\tacquired | (16,485) | (21,204) | (120) |
| Net\tcash\tpaid | \t$60,131 | \t$128,751 | \t$36,499 |

# NOTES	TO	CONSOLIDATED	FINANCIAL	STATEMENTS

# 1.	Description	of	the	Business

Garmin	 Ltd.	 and	 subsidiaries	 (together,	 the	 "Company")	 manufacture,	 market,	 and	 distribute	 Global	 Positioning	 System-enabled	 products	 and	 other	 related products.			Garmin	Corporation	(GC),	wholly-owned	by	Garmin	Ltd.,	is	primarily	responsible	for	the	manufacturing	and	distribution	of	the	Company's	products	to	Garmin International,	Inc.	(GII),	a	wholly-owned	subsidiary	of	GC,	and	Garmin	(Europe)	Limited	(GEL),	a	wholly-owned	subsidiary	of	Garmin	Ltd.,	and,	to	a	lesser	extent,	new product	development	and	sales	and	marketing	of	the	Company's	products	in	Asia	and	the	Far	East.		GII	is	primarily	responsible	for	sales	and	marketing	of	the	Company's products	in	many	international	markets	and	in	the	United	States	as	well	as	research	and	new	product	development.	GII	also	manufactures	certain	products	for	the	Company's aviation	segment.			GEL	is	responsible	for	sales	and	marketing	of	the	Company's	products,	principally	within	the	European	market.			In	addition,	the	Company	acquired	ten European	distributors	in	2007	and	2008	which	distribute	Garmin	product	throughout	Europe.

# 2.		Summary	of	Significant	Accounting	Policies

# Basis	of	Presentation	and	Principles	of	Consolidation

The	accompanying	consolidated	financial	statements	have	been	prepared	in	accordance	with	accounting	principles	generally	accepted	in	the	United	States.		The accompanying	 consolidated	 financial	 statements	 reflect	 the	 accounts	 of	 Garmin	 Ltd.	 and	 its	 wholly	 owned	 subsidiaries.	All	 significant	 inter-company	 balances	 and transactions	have	been	eliminated.

# Fiscal	Year

The	Company	has	adopted	a	52–53-week	period	ending	on	the	last	Saturday	of	the	calendar	year.	Due	to	the	fact	that	there	are	not	exactly	52	weeks	in	a	calendar year	and	there	is	slightly	more	than	one	additional	day	per	year	(not	including	the	effects	of	leap	year)	in	each	calendar	year	as	compared	to	a	52-week	fiscal	year,	the Company	will	have	a	fiscal	year	comprising	53	weeks	in	certain	fiscal	years,	as	determined	by	when	the	last	Saturday	of	the	calendar	year	occurs.

In	those	resulting	fiscal	years	that	have	53	weeks,	the	Company	will	record	an	extra	week	of	sales,	costs,	and	related	financial	activity.	Therefore,	the	financial results	of	those	fiscal	years,	and	the	associated	14-week	fourth	quarter,	will	not	be	entirely	comparable	to	the	prior	and	subsequent	52-week	fiscal	years	and	the	associated quarters	having	only	13	weeks.			Fiscal	2008,	2007	and	2006	included	52	weeks.

# Foreign	Currency	Translation

GC	utilizes	the	Taiwan	Dollar	as	its	functional	currency.		In	accordance	with	Statement	of	Financial	Accounting	Standards	(SFAS)	No.	52,	Foreign	Currency Translation,	the	financial	statements	of	GC	for	all	periods	presented	have	been	translated	into	United	States	Dollars	(USD),	the	functional	currency	of	Garmin	Ltd.	and	GII, and	the	reporting	currency	herein,	for	purposes	of	consolidation	at	rates	prevailing	during	the	year	for	sales,	costs,	and	expenses	and	at	end-of-year	rates	for	all	assets	and liabilities.	The	effect	of	this	translation	is	recorded	in	a	separate	component	of	stockholders'	equity.	Cumulative	translation	adjustments	of	($15,306)	and	($315)	as	of December	27,	2008	and	December	29,	2007,	respectively,	net	of	related	taxes,	have	been	included	in	accumulated	other	comprehensive	gain/(loss)	in	the	accompanying consolidated	balance	sheets.

Transactions	in	foreign	currencies	are	recorded	at	the	approximate	rate	of	exchange	at	the	transaction	date.	Assets	and	liabilities	resulting	from	these	transactions are	translated	at	the	rate	of	exchange	in	effect	at	the	balance	sheet	date.	All	differences	are	recorded	in	results	of	operations	and	amounted	to	exchange	gains/(losses)	of ($35,286),	$22,964,	and	$596	for	the	years	ended	December	27,	2008,	December	29,	2007,	and	December	30,	2006,	respectively.		The	loss	in	fiscal	2008	was	the	result	of the	strengthening	of	the	USD	offset	by	a	gain	associated	with	the	sale	and	tender	of	our	Tele	Atlas	N.V.	shares.		The	gain	in	fiscal	2007	was	the	result	of	the	strengthening	of the	Euro	and	British	Pound	Sterling	relative	to	the	United	States	dollar	experienced	by	our	European	companies.			The	gain	in	fiscal	2006	was	the	result	of	nearly	off-setting currency	moves	in	the	Taiwan	Dollar	and	the	Euro	and	British	Pound	Sterling.

# Earnings	Per	Share

Basic	earnings	per	share	amounts	are	computed	based	on	the	weighted-average	number	of	common	shares	outstanding.	For	purposes	of	diluted	earnings	per	share, the	number	of	shares	that	would	be	issued	from	the	exercise	of	dilutive	stock	options	has	been	reduced	by	the	number	of	shares	which	could	have	been	purchased	from	the proceeds	of	the	exercise	at	the	average	market	price	of	the	Company's	stock	during	the	period	the	options	were	outstanding.	See	Note	10.

# Cash	and	Cash	Equivalents

For	purposes	of	reporting	cash	flows,	cash	and	cash	equivalents	include	cash	on	hand,	operating	accounts,	money	market	funds,	and	securities	with	maturities	of three	months	or	less	when	purchased.	The	carrying	amount	of	cash	and	cash	equivalents	approximates	fair	value,	given	the	short	maturity	of	those	instruments.

# Inventories

Inventories	are	stated	at	the	lower	of	cost	or	market.	Cost	is	determined	using	the	weighted-average	method	(which	approximates	the	first-in,	first-out	(FIFO) method)	by	GC	and	the	FIFO	method	by	GII,	GAT	and	GEL.			Inventories	consisted	of	the	following:

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Raw\tmaterials | \t$151,132 | \t$130,056 | \t$85,040 |
| Work-in-process | 28,759 | 57,622 | 42,450 |
| Finished\tgoods | 268,625 | 348,975 | 163,286 |
| Inventory\treserves | (23,204) | (31,186) | (19,768) |
|  | \t$425,312 | \t$505,467 | \t$271,008 |

# Property	and	Equipment

Property	and	equipment	are	recorded	at	cost	and	depreciated	using	the	straight-line	method	over	the	following	estimated	useful	lives:

# Long-Lived	Assets

In	accordance	with	SFAS	No.	144,	Accounting	for	the	Impairment	or	Disposal	of	Long-Lived	Assets,	the	Company	reviews	long-lived	assets	for	impairment whenever	events	or	changes	in	circumstances	indicate	the	carrying	amount	of	an	asset	may	not	be	fully	recoverable.	The	carrying	amount	of	a	long-lived	asset	is	not recoverable	if	it	exceeds	the	sum	of	the	undiscounted	cash	flows	expected	to	result	from	the	use	and	eventual	disposition	of	the	asset.		That	assessment	is	based	on	the carrying	amount	of	the	asset	at	the	date	it	is	tested	for	recoverability.		An	impairment	loss	is	measured	as	the	amount	by	which	the	carrying	amount	of	a	long-lived	asset exceeds	its	fair	value.

SFAS	No.	142,	Goodwill	and	Other	Intangible	Assets,	requires	that	goodwill	and	intangible	assets	with	indefinite	useful	lives	should	not	be	amortized	but	rather	be tested	for	impairment	at	least	annually	or	sooner	whenever	events	or	changes	in	circumstances	indicate	that	they	may	be	impaired.	The	Company	did	not	recognize	any goodwill	or	intangible	asset	impairment	charges	in	2008,	2007,	or	2006.	The	Company	established	reporting	units	based	on	its	current	reporting	structure.	For	purposes	of testing	goodwill	for	impairment,	goodwill	has	been	allocated	to	these	reporting	units	to	the	extent	it	relates	to	each	reporting	unit.		SFAS	No.	142	also	requires	that	intangible assets	with	definite	lives	be	amortized	over	their	estimated	useful	lives	and	reviewed	for	impairment	in	accordance	with	SFAS	No.	144.	The	Company	is	currently amortizing	its	acquired	intangible	assets	with	definite	lives	over	periods	ranging	from	3	to	10	years.

# Dividends

On	June	6,	2008	the	Board	of	Directors	declared	a	dividend	of	$0.75	per	share	to	be	paid	on	December	15,	2008	to	shareholders	of	record	on	December	1, 2008.		The	Company	paid	out	a	dividend	in	the	amount	of	$150,251.		The	dividend	has	been	reported	as	a	reduction	of	retained	earnings.

On	August	1,	2007	the	Board	of	Directors	declared	a	dividend	of	$0.75	per	share	to	be	paid	on	September	14,	2007	to	shareholders	of	record	on	August	15, 2007.		The	Company	paid	out	a	dividend	in	the	amount	of	$162,531.		The	dividend	has	been	reported	as	a	reduction	of	retained	earnings.

On	April	26,	2006	the	Board	of	Directors	declared	a	post-split	dividend	of	$0.50	per	share	to	be	paid	on	December	15,	2006	to	shareholders	of	record	on	December 1,	2006.		The	Company	paid	out	a	dividend	in	the	amount	of	$107,923.		The	dividend	has	been	reported	as	a	reduction	of	retained	earnings.

Approximately	$186,383	and	$159,210	of	retained	earnings	are	indefinitely	restricted	from	distribution	to	stockholders	pursuant	to	the	laws	of	Taiwan	at	December 27,	2008	and	December	29,	2007,	respectively.

# Intangible	Assets

At	December	27,	2008	and	December	29,	2007,	the	Company	had	patents,	license	agreements,	customer	related	intangibles	and	other	identifiable	finite-lived intangible	assets	recorded	at	a	cost	of	$152,104	and	$159,503,	respectively.		The	Company's	excess	purchase	cost	over	fair	value	of	net	assets	acquired	(goodwill)	was $127,429	at	December	27,	2008	and	$98,494	at	December	29,	2007.

# Marketable	Securities

Management	determines	the	appropriate	classification	of	marketable	securities	at	the	time	of	purchase	and	reevaluates	such	designation	as	of	each	balance	sheet date.

All	of	the	Company's	marketable	securities	are	considered	available-for-sale	at	December	27,	2008.	See	Note	3.		Available-for-sale	securities	are	stated	at	fair value,	with	the	unrealized	gains	and	losses,	net	of	tax,	reported	in	other	comprehensive	gain/(loss).		At	December	27,	2008	and	December	29,	2007,	cumulative	unrealized gains/(losses)	of	($22,345)	and	$46,445,	respectively,	were	reported	accumulated	in	other	comprehensive	gain/(loss),	net	of	related	taxes.

The	amortized	cost	of	debt	securities	classified	as	available-for-sale	is	adjusted	for	amortization	of	premiums	and	accretion	of	discounts	to	maturity,	or	in	the	case of	mortgage-backed	securities,	over	the	estimated	life	of	the	security.	Such	amortization	is	included	in	interest	income	from	investments.	Realized	gains	and	losses,	and declines	in	value	judged	to	be	other-than-temporary	are	included	in	other	income.	The	cost	of	securities	sold	is	based	on	the	specific	identification	method.

The	Company	accounts	for	income	taxes	using	the	liability	method	in	accordance	with	SFAS	No.	109,	Accounting	for	Income	Taxes.	The	liability	method	provides that	deferred	tax	assets	and	liabilities	are	recorded	based	on	the	difference	between	the	tax	bases	of	assets	and	liabilities	and	their	carrying	amount	for	financial	reporting purposes	as	measured	by	the	enacted	tax	rates	and	laws	that	will	be	in	effect	when	the	differences	are	expected	to	reverse.		Income	taxes	of	$153,170	and	$149,071	at December	27,	2008	and	December	29,	2007,	respectively,	have	not	been	accrued	by	the	Company	for	the	unremitted	earnings	of	several	of	its	subsidiaries	because	such earnings	are	intended	to	be	reinvested	in	the	subsidiaries	indefinitely.

The	Company	adopted	the	provisions	of	FASB	Interpretation	No.	48,	Accounting	for	Uncertainty	in	Income	Taxes	(FIN	48),	on	December	31,	2006,	the	beginning	of	fiscal year	2007.		As	a	result	of	the	implementation	of	FIN	48,	the	Company	has	not	recognized	a	material	increase	or	decrease	in	the	liability	for	unrecognized	tax	benefits.		The total	amount	of	unrecognized	tax	benefits	as	of	December	27,	2008	was	$214.4	million	including	interest	of	$11.1	million.		A	reconciliation	of	the	beginning	and	ending amount	of	unrecognized	tax	benefits	for	years	ending	December	27,	2008	and	December	29,	2007	is	as	follows	(in	$millions):

|  | December	27, | December	29, |
| :--- | :--- | :--- |
|  | 2008 | 2007 |
| Balance\tat\tbeginning\tof\tyear | \t$126.6 | \t$70.5 |
| \t\t\t\tAdditions\tbased\ton\ttax\tpositions\trelated\tto\tprior\tyears | 14.2 | 10.0 |
| \t\t\t\tReductions\tbased\ton\ttax\tpositions\trelated\tto\tprior\tyears | (4.6) | (8.0) |
| \t\t\t\tAdditions\tbased\ton\ttax\tpositions\trelated\tto\tcurrent\tperiod | 83.8 | 73.0 |
| \t\t\t\tReductions\tbased\ton\ttax\tpositions\trelated\tto\tcurrent\tperiod | - | - |
| \t\t\t\tReductions\trelated\tto\tsettelements\twith\ttax\tauthorities | - | (7.6) |
| \t\t\t\tExpiration\tof\tstatute\tof\tlimitations | (5.6) | (11.3) |
| Balance\tat\tDecember\t27,\t2008 | \t$214.4 | \t$126.6 |

The	December	27,	2008	balance	of	$214.4	million	of	unrecognized	tax	benefits,	if	recognized,	would	reduce	the	effective	tax	rate.		None	of	the	unrecognized	tax benefits	are	due	to	uncertainty	in	the	timing	of	deductibility.

FIN	48	requires	unrecognized	tax	benefits	to	be	classified	as	non-current	liabilities,	except	for	the	portion	that	is	expected	to	be	paid	within	one	year	of	the	balance sheet	date.		Prior	to	FIN	48	adoption,	unrecognized	tax	benefits	were	classified	as	current	liabilities,	but	the	entire	$214.4	million	is	required	to	be	classified	as	non-current	at December	27,	2008.

Interest	expense	and	penalties,	if	any,	accrued	on	the	unrecognized	tax	benefits	are	reflected	in	income	tax	expense.		At	December	27,	2008	and	December	29, 2007,	the	Company	had	accrued	approximately	$11.1	million	and	$4.7	million	respectively	for	interest.			Interest	expense	included	in	income	tax	expense	for	the	years ending	December	27,	2008	and	December	29,	2007	are	$6.4	million	and	$1.4	million,	respectively.		The	Company	had	no	amounts	accrued	for	penalties	as	the	nature	of	the unrecognized	tax	benefits,	if	recognized,	would	not	warrant	the	imposition	of	penalties.

The	Company	files	income	tax	returns	in	the	U.S.	federal	jurisdiction,	and	various	state,	local	and	foreign	jurisdictions.		The	Company	is	no	longer	subject	to	U.S. federal,	state,	or	local	tax	examinations	by	tax	authorities	for	years	prior	to	2005.		The	Company	also	considers	2003	and	2004	US	federal	returns	to	have	been	effectively settled	due	to	the	completion	of	audit	examination	by	the	Internal	Revenue	Service.		The	Company	is	no	longer	subject	to	Taiwan	income	tax	examinations	by	tax	authorities for	years	prior	to	2003.		The	Company	is	no	longer	subject	to	United	Kingdom	tax	examinations	by	tax	authorities	for	years	prior	to	2007.

The	Company	believes	that	it	is	reasonably	possible	that	approximately	$20	million	of	its	reserves	for	certain	unrecognized	tax	benefits	will	decrease	within	the	next	12 months	as	the	result	of	the	expiration	of	statute	of	limitations.		This	potential	decrease	in	unrecognized	tax	benefits	would	impact	the	Company's	effective	tax	rate	within	the next	12	months.

# Use	of	Estimates

The	preparation	of	consolidated	financial	statements	 in	conformity	with	accounting	principles	generally	accepted	 in	 the	United	States	requires	management	 to	make estimates	and	assumptions	 that	affect	 the	amounts	reported	 in	 the	consolidated	financial	statements	and	accompanying	notes.	Actual	results	could	differ	from	 those estimates.

# Concentration	of	Credit	Risk

The	Company	grants	credit	to	certain	customers	who	meet	the	Company's	pre-established	credit	requirements.	Generally,	the	Company	does	not	require	security when	trade	credit	is	granted	to	customers.	Credit	losses	are	provided	for	in	the	Company's	consolidated	financial	statements	and	typically	have	been	within	management's expectations.			Credit	risk	has	become	more	significant	in	fiscal	2008	due	to	the	macro	economic	conditions	but	the	Company	is	managing	credit	terms	and	balances accordingly.		Certain	customers	are	allowed	extended	terms	consistent	with	normal	industry	practice.			Most	of	these	extended	terms	can	be	classified	as	either	relating	to seasonal	sales	variations	or	to	the	timing	of	new	product	releases	by	the	Company.

The	Company	recognizes	revenue	when	persuasive	evidence	of	a	sales	arrangement	exists,	delivery	has	occurred,	the	sales	price	is	fixed	or	determinable,	and collection	is	reasonably	assured.	Product	is	considered	delivered	to	the	customer	once	it	has	been	shipped	and	title	and	risk	of	loss	have	been	transferred.	For	most	of	the Company's	product	sales,	these	criteria	are	met	at	the	time	the	product	is	delivered	to	the	customer's	location.	The	Company	assumes	no	remaining	significant	obligations associated	with	the	product	sale	other	than	that	related	to	its	warranty	programs	discussed	below.

# Shipping	and	Handling	Costs

Shipping	and	handling	costs	are	included	in	cost	of	goods	sold	in	the	accompanying	consolidated	financial	statements.

# Product	Warranty

The	Company	provides	for	estimated	warranty	costs	at	the	time	of	sale.	The	warranty	period	is	generally	for	one	year	from	date	of	shipment	with	the	exception	of certain	aviation	products	for	which	the	warranty	period	is	two	years	from	the	date	of	installation	and	certain	marine	products	for	which	the	warranty	period	is	three	years from	the	date	of	shipment.

# Sales	Programs

The	Company	provides	certain	monthly	and	quarterly	incentives	for	its	dealers	and	distributors	based	on	various	factors	including	dealer	purchasing	volume	and growth.	Additionally,	from	time	to	time,	the	Company	provides	rebates	to	end	users	on	certain	products.	Estimated	rebates	and	incentives	payable	to	dealers	and	distributors are	regularly	reviewed	and	recorded	as	accrued	expenses	on	a	monthly	basis.			In	addition,	the	Company	provides	dealers	and	distributors	with	product	discounts	termed "price	protection"	to	assist	these	customers	in	clearing	older	products	from	their	inventories	in	advance	of	new	product	releases.	Each	price	protection	discount	is	tied	to	a specific	product	and	can	be	applied	to	all	customers	who	have	purchased	the	price	protected	product	or	a	special	price	protection	discount	may	be	agreed	to	on	an	individual customer	basis.		These	rebates,	incentives,	and	price	protections	are	recorded	as	reductions	to	net	sales	in	the	accompanying	consolidated	statements	of	income	in	the	period the	Company	has	sold	the	product.

# Advertising	Costs

A	majority	of	the	Company's	research	and	development	is	performed	in	the	United	States.	Research	and	development	costs,	which	are	expensed	as	incurred, amounted	to	approximately	$206,109,	$159,406,	and	$113,314	for	the	years	ended	December	27,	2008,	December	29,	2007,	and	December	30,	2006,	respectively.

# Customer	Service	and	Technical	Support

Customer	service	and	technical	support	costs	are	included	on	the	selling,	general	and	administrative	expense	line	on	our	statements	of	operations.	Customer	service and	technical	support	costs	include	costs	associated	with	performing	order	processing,	answering	customer	inquiries	by	telephone	and	through	Web	sites,	e-mail	and	other electronic	means,	and	providing	free	technical	support	assistance	to	customers.	In	connection	with	the	sale	of	certain	products,	we	provide	a	limited	amount	of	free	technical support	assistance	to	customers.	The	technical	support	is	provided	within	one	year	after	the	associated	revenue	is	recognized.	We	accrue	the	estimated	cost	of	providing	this free	support	upon	product	shipment.

# Software	Development	Costs

Statement	of	Financial	Accounting	Standards	(SFAS)	86,	"Accounting	for	Costs	of	Computer	Software	to	be	Sold,	Leased,	or	otherwise	Marketed," requires companies	to	expense	software	development	costs	as	they	incur	them	until	technological	feasibility	has	been	established,	at	which	time	those	costs	are	capitalized	until	the product	is	available	for	general	release	to	customers.	Our	capitalized	software	development	costs	are	not	significant.	SFAS	2,	"Accounting	for	Research	and	Development Costs,"	establishes	accounting	and	reporting	standards	for	research	and	development.	In	accordance	with	SFAS	2,	costs	we	incur	to	enhance	our	existing	products	or	after the	general	release	of	the	service	using	the	product	are	expensed	in	the	period	they	are	incurred	and	included	in	research	and	development	costs	on	our	statement	of operations.

# Accounting	for	Stock-Based	Compensation

												The	Company	currently	sponsors	three	stock	based	employee	compensation	plans.	On	January	1,	2006,	the	Company	adopted	Statement	of	Financial	Accounting Standards	("SFAS")	No.	123(R),	Share-Based	Payment,	which	is	a	revision	of	SFAS	No.	123,	Accounting	for	Stock-Based	Compensation.	SFAS	No.	123(R)	requires	the measurement	and	recognition	of	compensation	expenses	for	all	share-based	payment	awards	made	to	employees	and	directors	including	employee	stock	options	and restricted	stock	based	on	estimated	fair	values.	SFAS	No.	123(R)	supersedes	the	Company's	previous	accounting	under	Accounting	Principles	Board	("APB")	Opinion No.	25,	Accounting	for	Stock	Issued	to	Employees,	for	periods	beginning	in	fiscal	2006.		See	Note	9.

												The	Company	adopted	SFAS	No.	123(R)	using	the	modified	prospective	method.	Under	the	modified	prospective	method,	compensation	costs	are	recognized beginning	with	the	effective	date	based	on	the	requirements	of	SFAS	No.	123(R)	for	all	share-based	payments	granted	after	the	effective	date	and	based	on	the	requirements of	SFAS	No.	123	for	all	awards	granted	 to	employees	prior	 to	 the	effective	date	of	SFAS	No.	123(R)	 that	remain	unvested	on	 the	effective	date.	The	Company's consolidated	financial	statements	as	of	and	for	fiscal	years	ended	December	27,	2008,	December	29,	2007,	and	December	30,	2006	reflect	the	impact	of	SFAS	No.	123(R).

												SFAS	No.	123(R)	requires	companies	to	estimate	the	fair	value	of	share-based	payment	awards	on	the	date	of	grant	using	an	option-pricing	model.	The	value	of	the portion	of	the	award	that	is	ultimately	expected	to	vest	is	recognized	as	stock-based	compensation	expenses	over	the	requisite	service	period	in	the	Company's	consolidated financial	statements.

												As	stock-based	compensation	expenses	recognized	in	the	accompanying	consolidated	statement	of	income	for	the	fiscal	years	ended	December	27,	2008,	December 29,	2007	and	December	30,	2006	are	based	on	awards	ultimately	expected	to	vest,	they	have	been	reduced	for	estimated	forfeitures.	SFAS	No.	123(R)	requires	forfeitures	to be	estimated	at	the	time	of	grant	and	revised,	if	necessary,	in	subsequent	periods	if	actual	forfeitures	differ	from	those	estimates.	Forfeitures	were	estimated	based	on historical	experience	and	management's	estimates.

# Recently	Issued	Accounting	Pronouncements

In	September	2006,	the	FASB	issued	Statement	of	Financial	Accounting	Standards	No.	157,	Fair	Value	Measurements	("SFAS	No.	157").	SFAS	No.	157	establishes	a framework	for	measuring	fair	value	in	GAAP,	and	expands	disclosures	about	fair	value	measurements.	SFAS	No.	157	applies	under	other	accounting	pronouncements	that require	or	permit	fair	value	measurements.	This	statement	is	effective	for	fiscal	years	beginning	after	November	15,	2007,	and	interim	periods	within	those	fiscal	years.	The Company	adopted	SFAS	No.	157	effective	December	30,	2007	and	the	adoption	did	not	have	a	material	impact	on	the	Company's	financial	condition	or	operating	results.

The	Company	endeavors	to	utilize	the	best	available	information	in	measuring	fair	value.		Financial	assets	and	liabilities	are	classified	in	their	entirety	based	on	the	lowest level	of	input	that	is	significant	to	the	fair	value	measurement.

For	fair	value	measurements	using	significant	unobservable	inputs,	an	independent	third	party	provided	the	valuation.		The	inputs	used	in	the	valuations	used	the following	methodology.		The	collateral	composition	was	used	to	estimate	Weighted	Average	Life	based	on	historical	and	projected	payment	information.			Cash	flows	were projected	for	the	issuing	trusts,	taking	into	account	underlying	loan	principal,	bonds	outstanding,	and	payout	formulas.		Taking	this	information	into	account,	assumptions were	made	as	to	the	yields	likely	to	be	required,	based	upon	then	current	market	conditions	for	comparable	or	similar	term	Asset	Based	Securities	as	well	as	other	fixed income	securities.

Assets	and	liabilities	measured	at	estimated	fair	value	on	a	recurring	basis	are	summarized	below:

| Description | Total | Level	1 | Level	2 | Level	3 |
| :--- | :--- | :--- | :--- | :--- |
| Available\tfor-sale\tsecurites | \t$203,592 | \t$203,592 | - | - |
| Failed\tAuction\trate\tsecurities | 71,303 | - | - | 71,303 |
| Total | \t$274,895 | \t$203,592 | \t$- | \t$71,303 |

For	assets	and	liabilities	measured	at	fair	value	on	a	recurring	basis	using	significant	unobservable	inputs	(Level	3)	during	the	period,	SFAS	No.	157	requires	a reconciliation	of	the	beginning	and	ending	balances,	separately	for	each	major	category	of	assets.		The	reconciliation	is	as	follows:

# Fair	Value	Measurements	Using

# Significant	Unobservable	Inputs	(Level	3)

|  | Fair	Value	Measurements	Using<br>Significant	Unobservable	Inputs	(Level	3) |  |
| :--- | :--- | :--- |
|  | 13-Weeks\tEnded\nDec\t27,\t2008 | 52-Weeks\tEnded\nDec\t27,\t2008 |
| Beginning\tbalance\tof\tauction\trate\tsecurities | \t$83,140 | $- |
| Total\tunrealized\tlosses\tincluded\tin\tother\tcomprehensive\tincome | (11,837) | (21,547) |
| Purchases\tin\tand/or\tout\tof\tLevel\t3 | - | 92,850 |
| Transfers\tin\tand/or\tout\tof\tLevel\t3 | - | - |
| Ending\tbalance\tof\tauction\trate\tsecurities | \t$71,303 | \t$71,303 |

In	February	2007,	the	FASB	issued	SFAS	No.	159,	The	Fair	Value	Option	for	Financial	Assets	and	Financial	Liabilities	–	including	an	amendment	of	FASB	Statement No.	115.		SFAS	No.	159	allows	companies	to	choose	to	measure	eligible	financial	instruments	and	certain	other	items	at	fair	value	that	are	not	required	to	be	measured	at fair	value.		SFAS	No.	159	requires	that	unrealized	gains	and	losses	on	items	for	which	the	fair	value	option	has	been	elected	be	reported	in	earnings	at	each	reporting date.		SFAS	No.	159	is	effective	for	fiscal	years	beginning	after	November	15,	2007.		The	Company	adopted	SFAS	No.	159	effective	December	30,	2007	and	the	adoption did	not	have	a	material	impact	on	the	Company's	financial	condition	or	operating	results.

In	December	2007,	the	FASB	issued	SFAS	No.	160,	Noncontrolling	Interests	in	Consolidated	Financial	Statements	("SFAS	160").	SFAS	160	outlines	the	accounting and	reporting	for	ownership	interests	in	subsidiaries	held	by	parties	other	than	the	parent,	the	amount	of	consolidated	net	income	attributable	to	the	parent	and	to	the noncontrolling	interest,	changes	in	a	parent's	ownership	interest,	and	the	valuation	of	retained	noncontrolling	equity	investments	when	a	subsidiary	is	deconsolidated.	SFAS 160	also	establishes	disclosure	requirements	that	clearly	identify	and	distinguish	between	the	interests	of	the	parent	and	the	interests	of	the	noncontrolling	owners.	The statement	is	effective	for	fiscal	years	beginning	on	or	after	December	15,	2008.	We	do	not	expect	the	adoption	of	SFAS	No.	160	to	have	a	material	impact	on	our	financial reporting	and	disclosure.

In	December	2007,	the	FASB	issued	SFAS	No.	141	(revised	2007),	Business	Combinations	("SFAS	141R").	This	standard	establishes	principles	and	requirements for	how	an	acquirer	recognizes	and	measures	in	its	financial	statements	the	identifiable	assets	acquired,	the	liabilities	assumed,	any	non-controlling	interest	in	the	acquiree and	 the	 goodwill	 acquired.	 SFAS	 141R	 also	 establishes	 disclosure	 requirements	 that	 will	 enable	 users	 to	 evaluate	 the	 nature	 and	 financial	 effects	 of	 the	 business combination.	The	statement	is	effective	for	financial	statements	issued	for	fiscal	years	beginning	on	or	after	December	15,	2008	and	interim	periods	within	those	fiscal	years. The	Company	will	determine	the	impact	of	adopting	SFAS	141R	on	its	consolidated	financial	statements	should	applicable	transactions	occur	in	the	future.

In	March	2008,	the	FASB	issued	Statement	of	Financial	Accounting	Standards	No.	161,	Disclosures	about	Derivative	Instruments	and	Hedging	Activities	("SFAS	No. 161").		This	statement	will	require	holders	of	derivative	instruments	to	provide	qualitative	disclosures	about	objectives	and	strategies	for	using	derivatives,	quantitative disclosures	 about	 fair	 value	 amounts	 of	 gains	 and	 losses	 from	 derivative	 instruments,	 and	 disclosures	 about	 credit-risk-related	 contingent	 features	 in	 derivative agreements.		This	statement	is	effective	for	interim	and	annual	periods	beginning	after	November	15,	2008.		The	company	is	not	currently	the	holder	of	any	derivative instruments;	thus,	currently	adoption	of	this	statement	would	not	have	any	effect	on	the	Company's	results	of	operations,	financial	condition,	or	cash	flows.

The	following	is	a	summary	of	the	Company's	marketable	securities	classified	as	available-for-sale	securities	at	December	27,	2008:

|  |  | Gross	Unrealized | Value	(Net |
| :--- | :--- | :--- | :--- |
|  | Amortized\tCost | Gains/(Losses) | \t Carrying\tAmount) |
| Mortgage-backed\tsecurities | \t$137,854 | \t$1,044 | \t$138,898 |
| Auction\trate\tsecurities | 92,850 | (21,547) | 71,303 |
| Obligations\tof\tstates\tand\tpolitical\tsubdivisions | 40,336 | 948 | 41,284 |
| U.S.\tcorporate\tbonds | 16,545 | (2,507) | 14,038 |
| Other | 9,502 | (130) | 9,372 |
| Total | \t$297,087 | \t$(22,192) | \t$274,895 |

|  |  | Gross	Unrealized | Value	(Net |
| :--- | :--- | :--- | :--- |
|  | Amortized\tCost | Gains/(Losses) | Carrying\tAmount) |
| Mortgage-backed\tsecurities | \t$99,749 | \t$(68) | \t$99,681 |
| Obligations\tof\tstates\tand\tpolitical\tsubdivisions | 59,497 | 158 | 59,655 |
| U.S.\tcorporate\tbonds | 8,479 | (219) | 8,260 |
| Equity\tsecurities | 188,971 | 46,688 | 235,659 |
| Other | 21,333 | (83) | 21,250 |
| Total | \t$378,029 | \t$46,476 | \t$424,505 |

The	unrealized	losses	on	the	Company's	investment	in	2008	were	caused	primarily	by	changes	in	interest	rates,	specifically,	widening	credit	spreads.	 	The Company's	investment	policy	requires	investments	to	be	rated	A	or	better	with	the	objective	of	minimizing	the	potential	risk	of	principal	loss.		Therefore,	the	Company considers	the	declines	to	be	temporary	in	nature.		Fair	values	were	determined	for	each	individual	security	in	the	investment	portfolio.		When	evaluating	the	investments	for other-than-temporary	impairment,	the	Company	review	factors	such	as	the	length	of	time	and	extent	to	which	fair	value	has	been	below	cost	basis,	the	financial	condition	of the	issuer,	and	the	Company's	ability	and	intent	to	hold	the	investment	for	a	period	of	time,	which	may	be	sufficient	for	anticipated	recovery	in	market	value.		During	2008, the	Company	did	not	record	any	material	impairment	charges	on	its	outstanding	securities.		As	of	December	27,	2008,	the	Company	does	not	consider	any	of	its	investment to	be	other-than-temporarily	impaired.

At	December	29,	2007,	the	Company's	equity	securities	were	primarily	comprised	of	an	investment	in	Tele	Atlas	N.V.	acquired	by	Garmin	in	2007	in	connection with	its	announced	intent	to	make	a	cash	offer	for	all	outstanding	shares	of	Tele	Atlas	N.V.,	which	was	subsequently	abandoned.	This	resulted	in	a	$46.7	million	unrealized gain	in	fiscal	2007.		In	fiscal	2008,	the	Company	realized	a	gain	of	$72.4	million	following	the	sales	and	tender	of	the	shares	of	Tele	Atlas	N.V.	including	foreign	currency gain	due	to	the	strengthening	of	the	Euro.		As	a	result	of	this	transaction,	the	unrealized	gain	on	equity	securities	in	fiscal	2007	was	eliminated.

The	amortized	cost	and	estimated	fair	value	of	marketable	securities	at	December	27,	2008,	by	contractual	maturity,	are	shown	below.	Expected	maturities	will differ	from	contractual	maturities	because	the	issuers	of	the	securities	may	have	the	right	to	prepay	obligations	without	prepayment	penalties.

|  | Cost | Fair	Value |
| :--- | :--- | :--- |
| Due\tin\tone\tyear\tor\tless\t(2009) | \t$14,535 | \t$14,675 |
| Due\tafter\tone\tyear\tthrough\tfive\tyears\t(2010-2014) | 29,906 | 28,110 |
| Due\tafter\tfive\tyears\tthrough\tten\tyears\t(2015-2019) | 66,515 | 67,037 |
| Due\tafter\tten\tyears\t(2020\tand\tthereafter) | 186,131 | 165,073 |
|  | \t$297,087 | \t$274,895 |

The	effective	maturity	date	differs	from	the	stated	maturity	dates.			The	securities	are	classified	in	the	balance	sheet	at	their	stated	maturity	dates.

In	 accordance	 with	 FASB	 Staff	 Position	 FAS	 115-1	 and	 FAS	 124-1,	The	 Meaning	 of	 Other-Than-Temporary Impairment	 and Its	 Application to	 Certain Investments,	the	Company	evaluated	investments	that	were	in	an	unrealized	loss	position	to	determine	the	length	of	time	that	individual	securities	have	been	in	a	continuous loss	position.		No	investments	that	were	in	an	unrealized	loss	position	have	been	held	for	greater	than	twelve	months.

# 4.	Commitments	and	Contingencies

Future	minimum	lease	payments	are	as	follows:

| Year | Amount |
| :--- | :--- |
| 2009 | \t$7,957 |
| 2010 | 7,393 |
| 2011 | 6,396 |
| 2012 | 5,607 |
| 2013 | 5,454 |
| Thereafter | 11,241 |

Certain	cash	balances	of	GEL	are	held	as	collateral	by	a	bank	securing	payment	of	the	United	Kingdom	value-added	tax	requirements.		The	total	amount	of restricted	cash	balances	were	$1,941	and	$1,554	at	December	27,		2008	and	December	29,	2007,	respectively.

In	the	normal	course	of	business,	the	Company	and	its	subsidiaries	are	parties	to	various	legal	claims,	actions,	and	complaints,	including	matters	involving	patent infringement	and	other	intellectual	property	claims	and	various	other	risks.		It	is	not	possible	to	predict	with	certainty	whether	or	not	the	Company	and	its	subsidiaries	will ultimately	be	successful	in	any	of	these	legal	matters,	or	if	not,	what	the	impact	might	be.			However,	the	Company's	management	does	not	expect	that	the	results	in	any	of these	legal	proceedings	will	have	a	material	adverse	effect	on	the	Company's	results	of	operations,	financial	position	or	cash	flows.

# 5.		Employee	Benefit	Plans

GII	sponsors	a	defined	contribution	employee	retirement	plan	under	which	its	employees	may	contribute	up	to	50%	of	their	annual	compensation	subject	to Internal	Revenue	Code	maximum	limitations	and	to	which	GII	contributes	a	specified	percentage	of	each	participant's	annual	compensation	up	to	certain	limits	as	defined	in the	Plan.		Additionally,	GEL	has	a	defined	contribution	plan	under	which	its	employees	may	contribute	up	to	7.5%	of	their	annual	compensation.	Both	GII	and	GEL contribute	an	amount	determined	annually	at	the	discretion	of	the	Board	of	Directors.	During	the	years	ended	December	27,	2008,	December	29,	2007,	and	December	30, 2006,	expense	related	to	these	plans	of	$14,927,	$11,412,	and	$8,690,	was	charged	to	operations.

Certain	of	the	Company's	foreign	subsidiaries	participate	in	local	defined	benefit	pension	plans.		Contributions	are	calculated	by	formulas	that	consider	final pensionable	salaries.		Neither	obligations	nor	contributions	for	the	years	ended	December	27,	2008,	December	29,	2007,	and	December	30,	2006,	were	significant.

The	Company's	income	tax	provision	(benefit)	consists	of	the	following:

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Federal: |  |  |  |
| \t\t\t\tCurrent | \t$90,655 | \t$132,452 | \t$42,850 |
| \t\t\t\tDeferred | 23,639 | (42,193) | (21,153) |
|  | 114,294 | 90,259 | 21,697 |
| State: |  |  |  |
| \t\t\t\tCurrent | 1,318 | 12,569 | 4,935 |
| \t\t\t\tDeferred | 1,090 | (2,916) | (3,922) |
|  | 2,408 | 9,653 | 1,013 |
| Foreign: |  |  |  |
| \t\t\t\tCurrent | 44,279 | 34,334 | 65,441 |
| \t\t\t\tDeferred | 20,537 | (10,984) | (7,720) |
|  | 64,816 | 23,350 | 57,721 |
| Total | \t$181,518 | \t$123,262 | \t$80,431 |

The	income	tax	provision	differs	from	the	amount	computed	by	applying	the	statutory	federal	income	tax	rate	to	income	before	taxes.	The	sources	and	tax	effects	of	the differences,	including	the	impact	of	establishing	tax	contingency	accruals,	are	as	follows:

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Federal\tincome\ttax\texpense\tat |  |  |  |
| \t\t\tU.S.\tstatutory\trate | \t$332,278 | \t$342,396 | \t$208,094 |
| State\tincome\ttax\texpense,\tnet\tof\t\tfederal\ttax\teffect | 2,030 | 5,922 | 658 |
| Foreign\ttax\trate\tdifferential | (233,928) | (230,243) | (112,903) |
| Taiwan\ttax\tholiday\tbenefit | (24,904) | (44,128) | (50,905) |
| Net\tchange\tin\tuncertain\ttax\tpostions | 87,800 | 56,100 | 37,544 |
| Other\tforeign\ttaxes\tless\tincentives\tand\tcredits | 20,428 | (117) | 5,901 |
| Other,\tnet | (2,186) | (6,668) | (7,958) |
| Income\ttax\texpense | \t$181,518 | \t$123,262 | \t$80,431 |

The	Company's	income	before	income	taxes	attributable	to	non-U.S.	operations	was	$823,364,	$850,102,	and	$508,367,	for	the	years	ended	December	27,	2008, December	29,	2007,	and	December	30,	2006,	respectively.	The	Taiwan	tax	holiday	benefits	included	in	the	table	above	reflect	$0.12,	$0.20,	and	$0.24	per	weighted-average common	share	outstanding	for	the	years	ended	December	27,	2008,	December	29,	2007,	and	December	30,	2006,	respectively.		The	Company	currently	expects	to	benefit from	these	Taiwan	tax	holidays	through	2013,	at	which	time	these	tax	benefits	expire.

Deferred	income	taxes	reflect	the	net	tax	effects	of	temporary	differences	between	the	carrying	amounts	of	assets	and	liabilities	for	financial	reporting	purposes	and the	amounts	used	for	income	tax	purposes.	Significant	components	of	the	Company's	deferred	tax	assets	and	liabilities	are	as	follows:

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Deferred\ttax\tassets: |  |  |  |
| \t\t\tProduct\twarranty\taccruals | \t$1,696 | \t$18,975 | \t$11,259 |
| \t\t\tAllowance\tfor\tdoubtful\taccounts | 15,098 | 2,430 | 1,327 |
| \t\t\tInventory\treserves | 5,331 | 7,699 | 4,555 |
| \t\t\tSales\tprogram\tallowances | 14,471 | 42,832 | 12,629 |
| \t\t\tReserve\tfor\tsales\treturns | 2,914 | 5,565 | 1,660 |
| \t\t\tOther\taccrual | 5,411 | 3,911 | 2,424 |
| \t\t\tUnrealized\tintercompany\tprofit\tin\tinventory | 3,601 | 30,006 | 21,115 |
| \t\t\tUnrealized\tforeign\tcurrency\tloss | - | - | 325 |
| \t\t\tStock\toption\tcompensation | 20,375 | 8,887 | 3,720 |
| \t\t\tTax\tcredit\tcarryforwards,\tnet | 36,406 | 15,198 | 30,287 |
| \t\t\tNet\toperating\tlosses\tof\tsubsidiaries | 2,809 | 1,800 | 195 |
| \t\t\tOther | 5,022 | 4,649 | 4,225 |
| \t\t\tValuation\tallowance:\t\tNOL,\tloss\tcarryforward,\ttax\tcredits | (34,487) | (15,491) | (28,301) |
|  | 78,647 | 126,461 | 65,420 |
| Deferred\ttax\tliabilities: |  |  |  |
| \t\t\tDepreciation | 12,872 | 9,209 | 7,883 |
| \t\t\tPrepaid\tExpenses | 3,031 | 6,498 | - |
| \t\t\tUnrealized\tforeign\tcurrency\tloss | 522 | 161 | - |
| \t\t\tBook\tbasis\tin\texcess\tof\ttax\tbasis\tfor\tacquired\tentities | 15,936 | 14,867 | - |
| \t\t\tUnrealized\tinvestment\tgain | 153 | 31 | 278 |
| \t\t\tOther | 378 | 254 | 2,454 |
|  | 32,892 | 31,020 | 10,615 |
| Net\tdeferred\ttax\tassets | \t$45,755 | \t$95,441 | \t$54,805 |

At	December	27,	2008,	the	company	had	$36.4	million	of	tax	credit	carryover	which	includes	$31.5	million	of	Taiwan	surtax	credit	with	no	expiration.		Additionally,	the Company	had	$3.7	million	in	Taiwan	investment	credit	which	will	expire	in	2012.

# 7.		Fair	Value	of	Financial	Instruments

In	accordance	with	SFAS	No.	107,	Disclosures	about	Fair	Value	of	Financial	Instruments,	the	following	summarizes	required	information	about	the	fair	value	of certain	financial	instruments	for	which	it	is	currently	practicable	to	estimate	such	value.	None	of	the	financial	instruments	are	held	or	issued	for	trading	purposes.	The carrying	amounts	and	fair	values	of	the	Company's	financial	instruments	are	as	follows:

|  | Carrying<br>Amount | December	27,	2008<br>Fair<br>Value | Carrying<br>Amount | December	29,	2007<br>Fair<br>Value |
| :--- | :--- | :--- | :--- | :--- |
| Cash\tand\tcash\tequivalents | \t$696,335 | \t$696,335 | \t$707,689 | \t$707,689 |
| Restricted\tcash | 1,941 | 1,941 | 1,554 | 1,554 |
| Marketable\tsecurities | 274,895 | 274,895 | 424,505 | 424,505 |

For	certain	of	the	Company's	financial	instruments,	including	accounts	receivable,	accounts	payable	and	other	accrued	liabilities,	the	carrying	amounts	approximate	fair value	due	to	their	short	maturities.

# 8.		Segment	Information

The	 Company	 operates	 within	 its	 targeted	 markets	 through	 four	 reportable	 segments,	 those	 being	 related	 to	 products	 sold	 into	 the	 marine,	 automotive/mobile, outdoor/fitness,	and	aviation	markets.	All	of	the	Company's	reportable	segments	offer	products	through	the	Company's	network	of	independent	dealers	and	distributors	as well	as	through	OEM's.		However,	the	nature	of	products	and	types	of	customers	for	the	four	segments	vary	significantly.	As	such,	the	segments	are	managed	separately. The	Company's	marine,	automotive/mobile,	and	outdoor/fitness	segments	include	portable	global	positioning	system	(GPS)	receivers	and	accessories	sold	primarily	to retail	outlets.	These	products	are	produced	primarily	by	the	Company's	subsidiary	in	Taiwan.		The	Company's	aviation	products	are	portable	and	panel	mount	avionics	for Visual	Flight	Rules	and	Instrument	Flight	Rules	navigation	and	are	sold	primarily	to	aviation	dealers	and	certain	aircraft	manufacturers.

The	Company's	Chief	Executive	Officer	has	been	identified	as	the	Chief	Operating	Decision	Maker	(CODM).	The	CODM	evaluates	performance	and	allocates resources	based	on	income	before	income	taxes	of	each	segment.	Income	before	income	taxes	represents	net	sales	less	operating	expenses	including	certain	allocated	general and	administrative	costs,	interest	income	and	expense,	foreign	currency	adjustments,	and	other	non-operating	corporate	expenses.	The	accounting	policies	of	the	reportable segments	are	the	same	as	those	described	in	the	summary	of	significant	accounting	policies.	There	are	no	inter-segment	sales	or	transfers.

The	identifiable	assets	associated	with	each	reportable	segment	reviewed	by	the	CODM	include	accounts	receivable	and	inventories.	The	Company	does	not	report property	and	equipment,	intangible	assets,	depreciation	and	amortization,	or	capital	expenditures	by	segment	to	the	CODM.

Revenues,	interest	income	and	interest	expense,	income	before	income	taxes,	and	identifiable	assets	for	each	of	the	Company's	reportable	segments	are	presented below:

# Fiscal	Year	Ended	December	27,	2008

|  | Aviation | Outdoor/<br>Fitness | Marine | Auto/<br>Mobile | Total |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Net\tsales\tto\texternal\tcustomers | \t$323,406 | \t$427,783 | \t$204,477 | \t$2,538,411 | \t$3,494,077 |
| Allocated\tinterest\tincome | 957 | 5,006 | 1,867 | 27,705 | 35,535 |
| Allocated\tinterest\texpense | (109) | (23) | (104) | (371) | (607) |
| Income\tbefore\tincome\ttaxes\nAssets: | 118,737 | 165,986 | 63,904 | 565,739 | 914,366 |
| \t\t\tAccounts\treceivable | 68,615 | 90,761 | 43,383 | 538,562 | 741,321 |
| \t\t\tInventories | 39,366 | 52,071 | 24,890 | 308,985 | 425,312 |

|  |  | Fiscal	Year	Ended	December	29,	2007 | Fiscal	Year	Ended	December	29,	2007 | Fiscal	Year	Ended	December	29,	2007 |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | Aviation | Outdoor/\nFitness | Marine | Auto/\nMobile | Total |
| Net\tsales\tto\texternal\tcustomers | \t$294,995 | \t$339,741 | \t$203,399 | \t$2,342,184 | \t$3,180,319 |
| Allocated\tinterest\tincome | 2,258 | 4,661 | 3,127 | 31,949 | 41,995 |
| Allocated\tinterest\texpense | (3) | (92) | (10) | (102) | (207) |
| Income\tbefore\tincome\ttaxes | 113,407 | 127,804 | 71,920 | 665,142 | 978,273 |
| Assets: |  |  |  |  |  |
| \t\t\tAccounts\treceivable | 88,352 | 101,753 | 60,918 | 701,490 | 952,513 |
| \t\t\tInventories | 46,885 | 53,997 | 32,327 | 372,258 | 505,467 |

# Fiscal	Year	Ended	December	30,	2006

|  |  | Fiscal	Year	Ended	December	30,	2006 | Fiscal	Year	Ended	December	30,	2006 |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | Aviation | Outdoor/\nFitness | Marine | Auto/\nMobile | Total |
| Net\tsales\tto\texternal\tcustomers | \t$232,906 | \t$285,362 | \t$166,639 | \t$1,089,093 | \t$1,774,000 |
| Allocated\tinterest\tincome | 1,952 | 5,693 | 3,020 | 25,232 | 35,897 |
| Allocated\tinterest\texpense | 49 | (44) | 17 | (63) | (41) |
| Income\tbefore\tincome\ttaxes | 86,141 | 120,905 | 65,087 | 322,421 | 594,554 |
| Assets: |  |  |  |  |  |
| \t\t\tAccounts\treceivable | 52,978 | 64,910 | 37,905 | 247,731 | 403,524 |
| \t\t\tInventories | 35,580 | 43,594 | 25,457 | 166,377 | 271,008 |

Net	sales,	 long-lived	assets	(property	and	equipment),	and	net	assets	by	geographic	area	are	as	follows	as	of	and	for the	years	ended	December	27,	2008, December	29,	2007,	and	December	30,	2006:

|  | America | Asia | Europe | Total |
| :--- | :--- | :--- | :--- | :--- |
| December\t27,\t2008 |  |  |  |  |
| Net\tsales\tto\texternal\tcustomers | \t$2,333,585 | \t$144,740 | \t$1,015,752 | \t$3,494,077 |
| Long\tlived\tassets | 221,158 | 168,528 | 55,566 | 445,252 |
| Net\tassets | 687,638 | 1,371,240 | 166,976 | 2,225,854 |
| December\t29,\t2007 |  |  |  |  |
| Net\tsales\tto\texternal\tcustomers | \t$2,066,823 | \t$144,155 | \t$969,341 | \t$3,180,319 |
| Long-lived\tassets | 185,838 | 143,181 | 45,128 | 374,147 |
| Net\tassets | 908,267 | 1,309,783 | 132,564 | 2,350,614 |
| December\t30,\t2006 |  |  |  |  |
| Net\tsales\tto\texternal\tcustomers | \t$1,093,581 | \t$87,048 | \t$593,371 | \t$1,774,000 |
| Long-lived\tassets | 148,922 | 65,280 | 36,786 | 250,988 |
| Net\tassets | 431,795 | 1,074,827 | 51,277 | 1,557,899 |

Best	Buy,	a	customer	in	the	outdoor/fitness,	marine,	and	auto/mobile	segments,	accounted	for	12.0%	of	the	Company's	consolidated	net	sales	in	the	year	ended December	27,	2008.

# 9.	Stock	Compensation	Plans

The	various	Company	stock	compensation	plans	are	summarized	below:

# 2005	Equity	Incentive	Plan

In	 June	 2005,	 the	 shareholders	 adopted	 an	 equity	 incentive	 plan	 (the	 "2005	 Plan")	 providing	 for	 grants	 of	 incentive	 and	 nonqualified	 stock	 options,	 stock appreciation	rights	("SARs"),	restricted	stock	units	("RSUs")	and/or	performance	shares	to	employees	of	the	Company	and	its	subsidiaries,	pursuant	to	which	up	to 10,000,000	common	shares	were	available	for	issuance.	The	stock	options	and	stock	appreciation	rights	vest	evenly	over	a	period	of	five	years	or	as	otherwise	determined by	the	Board	of	Directors	or	the	Compensation	Committee	and	generally	expire	ten	years	from	the	date	of	grant,	if	not	exercised.			During	2008,	2007,	and	2006,	the Company	granted	1,454,050,	2,838,200,	and	2,341,800	stock	appreciation	rights,	respectively.	Also	during	2008,	1,043,800	restricted	stock	units	were	granted	which	vest evenly	over	a	five	year	period	and	30,000	performance	shares	were	granted	which	cliff	vest	in	three	years	subject	to	a	performance	condition	pertaining	to	operating	income growth.

# 2000	Equity	Incentive	Plan

In	October	2000,	the	shareholders	adopted	an	equity	incentive	plan	(the	"2000	Plan")	providing	for	grants	of	incentive	and	nonqualified	stock	options,	stock appreciation	rights	("SARs"),	restricted	stock	units	("RSUs")	and/or	performance	shares	to	employees	of	the	Company	and	its	subsidiaries,	pursuant	to	which	up	to 7,000,000	common	shares	were	available	for	issuance.	The	stock	options	and	stock	appreciation	rights	vest	evenly	over	a	period	of	five	years	or	as	otherwise	determined	by the	Board	of	Directors	or	the	Compensation	Committee	and	generally	expire	ten	years	from	the	date	of	grant,	if	not	exercised.			During	2007,	the	Company	granted	20,000 stock	appreciation	rights	and	during	2006	the	Company	granted	64,131	nonqualified	stock	options,	respectively.

# 2000	Non-employee	Directors'	Option	Plan

Also	in	October	2000,	the	stockholders	adopted	a	stock	option	plan	for	non-employee	directors	(the	Directors	Plan)	providing	for	grants	of	options	for	up	to 100,000	common	shares.	The	term	of	each	award	is	ten	years.	All	awards	vest	evenly	over	a	three-year	period.	During	2008,	2007,	and	2006,	options	to	purchase	15,696, 5,562,	and	7,630	shares,	respectively,	were	granted	under	this	plan.

# Stock-Based	Compensation	Activity

A	summary	of	the	Company's	stock-based	compensation	activity	and	related	information	under	the	2005	Equity	Incentive	Plan,	the	2000	Equity	Incentive	Plan	and the	2000	Non-employee	Directors'	Option	Plan	for	the	years	ended	December	27,	2008,	December	29,	2007,	and	December	30,	2006	is	provided	below:

|  | Weighted-Average |  | Weighted-Average |  |
| :--- | :--- | :--- | :--- | :--- |
|  | \t\t\t\tExercise\tPrice | \tNumber\tof\tShares | \t\t\t\t\tFair\tValue\tRSUs | \tNumber\tof\tShares |
|  |  | (In\tThousands) |  | (In\tThousands) |
| Outstanding\tat\tDecember\t31,\t2005 | $19.29 | 6,354 | - | - |
| Granted | $48.54 | 2,413 | - | - |
| Exercised | $12.59 | (994) | - | - |
| Forfeited | $28.57 | (47) | - | - |
| Outstanding\tat\tDecember\t30,\t2006 | $29.24 | 7,726 | - | - |
| Granted | $84.61 | 2,864 | - | - |
| Exercised | $18.29 | (934) | - | - |
| Forfeited | $38.11 | (125) | - | - |
| Outstanding\tat\tDecember\t29,\t2007 | $46.82 | 9,531 | - | - |
| Granted | $51.00 | 1,470 | $19.59 | 1,044 |
| Exercised | $22.35 | (226) | - | - |
| Forfeited | $53.89 | (249) | - | - |
| Outstanding\tat\tDecember\t27,\t2008 | 47.76 | 10,526 | 19.59 | 1,044 |
|  | $$ | $$ |  |  |
| Exercisable\tat\tDecember\t27,\t2008 | $33.27 | 4,656 | - | - |

| $7.00	-$20.00 | 2,001 | 4.40 | 1,744 |
| :--- | :--- | :--- | :--- |
| $20.01\t-\t$40.00 | 2,142 | 6.13 | 1,521 |
| $40.01\t-\t$60.00 | 3,626 | 8.38 | 837 |
| $60.01\t-\t$80.00 | 1,345 | 8.44 | 270 |
| $80.01\t-\t$100.00 | 7 | 8.81 | 1 |
| $100.01\t-\t$120.00 | 1,402 | 8.92 | 282 |
| $120.01\t-\t$140.00 | 3 | 8.78 | 1 |
|  | 10,526 | 7.25 | 4,656 |

The	weighted-average	remaining	contract	life	for	options	outstanding	and	exercisable	at	December	27,	2008	is	7.25	and	5.88	years,	respectively.

The	fair	value	for	these	options	was	estimated	at	the	date	of	grant	using	a	Black-Scholes	option	pricing	model	with	the	following	weighted-average	assumptions	for 2008,	2007,	and	2006:

|  | 2008 | 2007 | 2006 |
| :--- | :--- | :--- | :--- |
| Weighted\taverage\tfair\tvalue\tof\toptions\tgranted | $18.47 | $33.81 | $20.01 |
| Expected\tvolatility | 0.3845 | 0.3677 | 0.3534 |
| Dividend\tyield | 3.75% | 0.76% | 1.00% |
| Expected\tlife\tof\toptions\tin\tyears | 6.0 | 6.0 | 6.3 |
| Risk-free\tinterest\trate | 2% | 4% | 5% |

The	Black-Scholes	option	valuation	model	was	developed	for	use	in	estimating	the	fair	value	of	traded	options	which	have	no	vesting	restrictions	and	are	fully transferable.	In	addition,	option	valuation	models	require	the	input	of	highly	subjective	assumptions,	including	the	expected	stock	price	volatility.	Because	the	Company's employee	stock	options	have	characteristics	significantly	different	from	those	of	traded	options,	and	because	changes	in	the	subjective	input	assumptions	can	materially affect	the	fair	value	estimate,	in	management's	opinion,	the	existing	models	do	not	necessarily	provide	a	reliable	single	measure	of	the	fair	value	of	its	employee	stock options.		The	fair	value	of	the	RSUs	was	determined	based	on	the	market	value	at	the	date	of	grant.

The	total	fair	value	of	awards	vested	during	2008,	2007,	and	2006	was	$35,384,	$17,840,	and	$9,413,	respectively.		The	total	stock	based	compensation	expense calculated	using	the	Black-Scholes	option	valuation	model	in	2008,	2007,	and	2006	was	$38,872,	$22,164,	and	$11,913,	respectively.The	aggregate	intrinsic	values	of options	outstanding	and	exercisable	at	December	27,	2008	were	$8.2	million	and	$8.2	million,	respectively.	The	aggregate	intrinsic	value	of	options	exercised	during	the year	ended	December	27,	2008	was	$0.6	million.	Aggregate	intrinsic	value	represents	the	positive	difference	between	the	Company's	closing	stock	price	on	the	last	trading day	of	the	fiscal	period,	which	was	$19.39	on	December	27,	2008,	and	the	exercise	price	multiplied	by	the	number	of	options	exercised.	As	of	December	27,	2008,	there was	$141.7	million	of	total	unrecognized	compensation	cost	related	to	unvested	share-based	compensation	awards	granted	to	employees	under	the	stock	compensation	plans. That	cost	is	expected	to	be	recognized	over	a	period	of	five	years.

# Employee	Stock	Purchase	Plan

The	shareholders	also	adopted	an	employee	stock	purchase	plan	(ESPP).	Up	to	2,000,000	shares	of		common	stock	have	been	reserved	for	the	ESPP.	Shares	will	be offered	to	employees	at	a	price	equal	to	the	lesser	of	85%	of	the	fair	market	value	of	the	stock	on	the	date	of	purchase	or	85%	of	the	fair	market	value	on	the	enrollment	date. The	ESPP	is	intended	to	qualify	as	an	"employee	stock	purchase	plan"	under	Section	423	of	the	Internal	Revenue	Code.		During	2008,	2007,	and	2006,	362,902,	120,230, and	 124,693	 shares,	 respectively	 were	 purchased	 under	 the	 plan	 for	 a	 total	 purchase	 price	 of	 $8,782,	 $5,730,	 and	 $3,569,	 respectively.	 	At	 December	 27,	 2008, approximately	663,679	shares	were	available	for	future	issuance.

# 10.		Earnings	Per	Share

The	following	table	sets	forth	the	computation	of	basic	and	diluted	net	income	per	share:

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Numerator\t(in\tthousands): |  |  |  |
| Numerator\tfor\tbasic\tand\tdiluted |  |  |  |
| \t\t\t\tnet\tincome\tper\tshare\t-\tnet\tincome | \t$732,848 | \t$855,011 | \t$514,123 |
| Denominator\t(in\tthousands): |  |  |  |
| Denominator\tfor\tbasic\tnet\tincome\tper\tshare\t- |  |  |  |
| \t\t\t\tweighted-average\tcommon\tshares | 208,993 | 216,524 | 216,340 |
| Effect\tof\tdilutive\tsecurities\t- |  |  |  |
| \t\t\t\temployee\tstock-based\tawards\t(note\t10) | 1,687 | 3,351 | 2,505 |
| Denominator\tfor\tdiluted\tnet\tincome\tper\tshare\t- |  |  |  |
| \t\t\t\tweighted-average\tcommon\tshares | 210,680 | 219,875 | 218,845 |
| Basic\tnet\tincome\tper\tshare | \t$3.51 | \t$3.95 | \t$2.38 |
| Diluted\tnet\tincome\tper\tshare | \t$3.48 | \t$3.89 | \t$2.35 |

Options	to	purchase	5,846,000,	886,000,	and	757,000	common	shares	were	outstanding	during	2008,	2007,	and	2006	respectively,	but	were	not	included	in	the	computation of	diluted	earnings	per	share	because	the	effect	was	antidilutive.

# 11.		Share	Repurchase	Program

The	Board	of	Directors	approved	a	share	repurchase	program	on	October	22,	2008,	authorizing	the	Company	to	purchase	up	to	$300	million	of	its	common	shares as	market	and	business	conditions	warrant.			The	share	repurchase	authorization	expires	on	December	31,	2009.			During	fiscal	2008,	$42	million	of	common	shares	were repurchased	and	retired	under	this	plan.

The	Board	of	Directors	approved	a	share	repurchase	program	on	June	6,	2008,	authorizing	the	Company	to	purchase	up	to	10,000,000	of	its	common	shares	as market	and	business	conditions	warrant.			The	share	repurchase	authorization	expires	on	December	31,	2009.			During	fiscal	2008,	10,000,000	shares	were	repurchased	and retired	under	this	plan.

The	Board	of	Directors	approved	a	share	repurchase	program	on	February	4,	2008,	authorizing	the	Company	to	purchase	up	to	5,000,000	of	its	common	shares	as market	and	business	conditions	warrant.			The	share	repurchase	authorization	expires	on	December	31,	2009.			During	fiscal	2008,	5,000,000	shares	were	repurchased	and retired	under	this	plan.

The	Board	of	Directors	approved	a	share	repurchase	program	on	August	3,	2006,	authorizing	the	Company	to	purchase	up	to	3,000,000	of	its	common	shares	as market	and	business	conditions	warrant.	 	The	share	repurchase	authorization	expired	on	December	31,	2007.	 	From	inception	to	expiration,	1,212,535	shares	were repurchased	and	retired	under	this	plan.

# 12.		Shareholder	Rights	Plan

On	October	24,	2001,	Garmin's	Board	of	Directors	adopted	a	shareholder	rights	plan	(the	"Rights	Plan").	Pursuant	to	the	Rights	Plan,	the	Board	declared	a dividend	of	one	preferred	share	purchase	right	on	each	outstanding	common	share	of	Garmin	to	shareholders	of	record	as	of	November	1,	2001.	The	rights	trade	together with	Garmin's	common	shares.	The	rights	generally	will	become	exercisable	if	a	person	or	group	acquires	or	announces	an	intention	to	acquire	15%	or	more	of	Garmin's outstanding	common	shares.	Each	right	(other	than	those	held	by	the	new	15%	shareholder)	will	then	be	exercisable	to	purchase	preferred	shares	of	Garmin	(or	in	certain instances	other	securities	of	Garmin)	having	at	that	time	a	market	value	equal	to	two	times	the	then	current	exercise	price.	Garmin's	Board	of	Directors	may	redeem	the rights	at	$0.001	per	right	at	any	time	before	the	rights	become	exercisable.	The	rights	expire	on	October	31,	2011.

# 13.		Selected	Quarterly	Information	(Unaudited)

|  | March	29 | Quarter	Ending<br>June	28 | September	27 | December	27 |
| :--- | :--- | :--- | :--- | :--- |
| Net\tsales | \t$663,805 | \t$911,671 | \t$870,355 | \t$1,048,246 |
| Gross\tprofit | 320,115 | 417,128 | 385,639 | 430,633 |
| Net\tincome | 147,779 | 256,092 | 171,244 | 157,733 |
| Basic\tnet\tincome\tper\tshare | \t$0.68 | \t$1.20 | \t$0.83 | \t$0.78 |

|  | March	31 | June	30 | September	29 | December	29 |
| :--- | :--- | :--- | :--- | :--- |
| Net\tsales | \t$492,159 | \t$742,466 | \t$728,673 | \t$1,217,021 |
| Gross\tprofit | 237,752 | 374,667 | 341,851 | 508,985 |
| Net\tincome | 139,860 | 214,377 | 193,507 | 307,267 |
| Basic\tnet\tincome\tper\tshare | \t$0.65 | \t$0.99 | \t$0.89 | \t$1.42 |

The	above	quarterly	financial	data	is	unaudited,	but	in	the	opinion	of	management,	all	adjustments	necessary	for	a	fair	presentation	of	the	selected	data	for	these interim	periods	presented	have	been	included.		These	results	are	not	necessarily	indicative	of	future	quarterly	results.

In	the	first	quarter	of	2008,	Garmin	Ltd.	acquired	Fairpoint	Navigation	A/S	(the	distributor	of	Garmin's	consumer	products	in	Denmark).	The	company	has	been renamed	Garmin	Danmark	A/S.

In	the	second	quarter	of	2008,	Garmin	Ltd.	acquired	Formar	Electronics	N.V./S.A.	(the	distributor	of	Garmin's	consumer	products	in	Belgium	and	Luxembourg).				The company	has	been	renamed	Garmin	Belux	N.V./S.A.

In	the	third	quarter	of	2008,	Garmin	Ltd.	acquired	NavCor	Oy,	the	distributor	of	Garmin's	consumer	products	in	Finland;	Puls	Elektronik	GmbH,	the	distributor	of Garmin's	 consumer	 products	 in	 Austria;	 and	 SatSignal	 Equipamentos	 de	 Comunicações	 e	 de	 Navegação	 S.A.,	 the	 distributor	 of	 Garmin's	 consumer	 products	 in Portugal.				NavCor	Oy	has	been	renamed	Garmin	Suomi	Oy.	Puls	Elektronik	GmbH	has	been	renamed	Garmin	Austria	GmbH.		SatSignal	Equipamentos	de	Comunicações e	de	Navegação	S.A.	has	been	renamed	Garmin	Portugal	–	Equipamentos	de	Comunicações	e	de	Navegação,	Lda.

In	 the	 fourth	 quarter	 of	 2008,	 Garmin	 Ltd.	 acquired	 Sportmanship	 International	AB, the	 distributor	 of	 Garmin's	 consumer	 products in	 Sweden. 	 Sportmanship International	AB	has	been	renamed	Garmin	Sweden	AB.

These	companies	were	acquired	for	$76.6	million	less	$16.5	million	cash	acquired.		The	preliminary	purchase	price	allocation	resulted	in	an	increase	in	goodwill	and intangible	assets	of	$44.3	million.		These	acquisitions	are	not	material,	either	individually	or	in	aggregate,	therefore	supplemental	pro	forma	information	is	not	presented.

# 15.	Warranty	Reserves

The	Company's	products	sold	are	generally	covered	by	a	warranty	for	periods	ranging	from	one	to	two	years.			The	Company's	estimate	of	costs	to	service	its warranty	 obligations	 are	 based	 on	 historical	 experience	 and	 expectation	 of	 future	 conditions	 and	 are	 recorded	 as	 a	 liability	 on	 the	 balance	 sheet.	 	 The	 following reconciliation	provides	an	illustration	of	changes	in	the	aggregate	warranty	reserve:

|  | December	27,<br>2008 | December	29,<br>2007 | December	30,<br>2006 |
| :--- | :--- | :--- | :--- |
| Balance\t-\tbeginning\tof\tperiod | \t$71,636 | \t$37,639 | \t$18,817 |
| Accrual\tfor\tproducts\tsold\tduring\tthe\tperiod | 132,644 | 98,702 | 51,080 |
| Expenditures | (116,872) | (64,705) | (32,258) |
| Balance\t-\tend\tof\tperiod | \t$87,408 | \t$71,636 | \t$37,639 |

# 16.	Subsequent	Events

On	February	4,	2009,	Garmin	Ltd.	and	ASUSTeK	Computer	Inc.	announced	a	strategic	alliance	that	will	leverage	the	companies'	navigation	and	mobile	telephony	expertise to	design,	manufacture	and	distribute	co-branded	location-centric	mobile	phones.		The	mobile	phone	product	line	will	be	known	as	the	Garmin-Asus	nüvifone TM series.

# Item	9.		Changes	in	and	Disagreements	with	Accountants	on	Accounting	and	Financial	Disclosure

# Item	9A.		Controls	and	Procedures

# (a)		Conclusion	Regarding	the	Effectiveness	of	Disclosure	Controls	and	Procedures

Under	the	supervision	and	with	the	participation	of	our	management,	including	the	Chief	Executive	Officer	and	Chief	Financial	Officer,	we	have	evaluated	the effectiveness	of	the	design	and	operation	of	our	disclosure	controls	and	procedures	pursuant	to	Exchange	Act	Rule	13a-15(b)	as	of	the	end	of	the	period	covered	by	this report.		Based	on	the	evaluation,	the	Chief	Executive	Officer	and	Chief	Financial	Officer	have	concluded	that	these	disclosure	controls	and	procedures	are	effective.

# (b)		Management's	Report	on	Internal	Control	over	Financial	Reporting

Management	of	the	Company	is	responsible	for	establishing	and	maintaining	adequate	internal	control	over	financial	reporting	for	the	Company.	The	Company's internal	control	over	financial	reporting	is	a	process	designed	to	provide	reasonable	assurance	regarding	the	reliability	of	financial	reporting	and	the	preparation	of	financial statements	for	external	purposes	in	accordance	with	generally	accepted	accounting	principles.

Because	of	its	inherent	limitations,	internal	control	over	financial	reporting	may	not	prevent	or	detect	misstatements.	Also,	projections	of	any	evaluation	of effectiveness	to	future	periods	are	subject	to	the	risk	that	controls	may	become	inadequate	because	of	changes	in	conditions,	or	that	the	degree	of	compliance	with	the policies	or	procedures	may	deteriorate.

Management's	assessment	of	and	conclusion	on	the	effectiveness	of	internal	control	over	financial	reporting	did	not	include	the	operations	resulting	from	the	six entities	(collectively	"the	Acquisitions")	which	were	acquired	during	fiscal	2008	and	are	included	in	the	2008	consolidated	financial	statements.	The	financial	reporting systems	of	the	Acquisitions	were	integrated	into	the	company's	financial	reporting	systems	throughout	2008.	Therefore,	the	company	did	not	have	the	practical	ability	to perform	an	assessment	of	their	internal	controls	in	time	for	this	current	year	end.	The	company	fully	expects	to	include	the	Acquisitions	in	next	year's	assessment.	The Acquisitions	constituted	$76.9	million	and	$37.9	million	of	total	and	net	assets,	respectively,	as	of	December	27,	2008	and	$105.3	million	and	$5.8	million	of	revenues	and net	income,	respectively,	for	the	year	then	ended	in	the	consolidated	financial	statements.

Management	of	the	Company	assessed	the	effectiveness	of	the	Company's	internal	control	over	financial	reporting	as	of	December	27,	2008.	In	making	this assessment,	management	used	the	criteria	set	forth	by	the	Committee	of	Sponsoring	Organizations	of	the	Treadway	Commission	(COSO)	in	"Internal	Control-Integrated Framework".

Based	on	such	assessment	and	those	criteria,	management	believes	that	the	Company	maintained	effective	internal	control	over	financial	reporting	as	of	December

Ernst	&	Young	LLP,	the	independent	registered	public	accounting	firm	that	audited	the	Company's	consolidated	financial	statements,	issued	an	attestation	report on	management's	effectiveness	of	the	Company's	internal	control	over	financial	reporting	as	of	December	27,	2008,	as	stated	in	their	report	which	is	included	herein.	That attestation	report	appears	below.

# (c)		Attestation	Report	of	the	Independent	Registered	Public	Accounting	Firm

# Report	of	Independent	Registered	Public	Accounting	Firm	on	Internal	Control	over	Financial	Reporting

We	have	audited	Garmin	Ltd.'s	internal	control	over	financial	reporting	as	of	December	27,		2008,	based	on	criteria	established	in	Internal	Control—Integrated	Framework issued	by	the	Committee	of	Sponsoring	Organizations	of	the	Treadway	Commission	(the	COSO	criteria).	Garmin	Ltd.'s	management	is	responsible	for	maintaining	effective internal	control	over	financial	reporting,	and	for	its	assessment	of	the	effectiveness	of	internal	control	over	financial	reporting	included	in	the	accompanying	Management's Report	on	Internal	Control	over	Financial	Reporting.	Our	responsibility	is	to	express	an	opinion	on	the	company's	internal	control	over	financial	reporting	based	on	our audit.

We	conducted	our	audit	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States).	Those	standards	require	that	we	plan	and perform	the	audit	to	obtain	reasonable	assurance	about	whether	effective	internal	control	over	financial	reporting	was	maintained	in	all	material	respects.	Our	audit	included obtaining	an	understanding	of	internal	control	over	financial	reporting,	assessing	the	risk	that	a	material	weakness	exists,	testing	and	evaluating	the	design	and	operating effectiveness	of	internal	control	based	on	the	assessed	risk,	and	performing	such	other	procedures	as	we	considered	necessary	in	the	circumstances.	We	believe	that	our	audit provides	a	reasonable	basis	for	our	opinion.

A	 company's	 internal	 control	 over	 financial	 reporting	 is	 a	 process	 designed	 to	 provide	 reasonable	 assurance	 regarding	 the	 reliability	 of	 financial	 reporting	 and	 the preparation	of	financial	statements	for	external	purposes	in	accordance	with	generally	accepted	accounting	principles.	A	company's	internal	control	over	financial	reporting includes	those	policies	and	procedures	that	(1)	pertain	to	the	maintenance	of	records	that,	in	reasonable	detail,	accurately	and	fairly	reflect	the	transactions	and	dispositions	of the	assets	of	the	company;	(2)	provide	reasonable	assurance	that	transactions	are	recorded	as	necessary	to	permit	preparation	of	financial	statements	in	accordance	with generally	accepted	accounting	principles,	and	that	receipts	and	expenditures	of	the	company	are	being	made	only	in	accordance	with	authorizations	of	management	and directors	of	the	company;	and	(3)	provide	reasonable	assurance	regarding	prevention	or	timely	detection	of	unauthorized	acquisition,	use,	or	disposition	of	the	company's assets	that	could	have	a	material	effect	on	the	financial	statements.

As	indicated	in	the	accompanying	Management's	Report	on	Internal	Control	over	Financial	Reporting,	management's	assessment	of	and	conclusion	on	the	effectiveness	of internal	control	over	financial	reporting	did	not	include	the	internal	controls	of	its	2008	acquisitions,	which	are	included	in	the	2008	consolidated	financial	statements	of Garmin	Ltd.	and	Subsidiaries	and	constituted	$76.9	million	and	$37.9	million	of	total	and	net	assets,	respectively,	as	of	December	27,	2008	and	$105.3	million	and	$5.8 million	of	revenues	and	net	income,	respectively,	for	the	year	then	ended.		Our	audit	of	internal	control	over	financial	reporting	of	Garmin	Ltd.	also	did	not	include	an evaluation	of	the	internal	control	over	financial	reporting	of	its	2008	acquisitions.

In	our	opinion,	Garmin	Ltd.	maintained,	in	all	material	respects,	effective	internal	control	over	financial	reporting	as	of	December	27,	2008,	based	on	the	COSO	criteria.

We	have	also	audited,	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States),	the	consolidated	balance	sheets	of	Garmin	Ltd. and	Subsidiaries	as	of	December	27,	2008	and	December	29,	2007	and	the	related	consolidated	statements	of	income,	stockholders'	equity,	and	cash	flows	for	each	of	the three	years	in	the	period	ended	December	27,	2008	and	our	report	dated	February	24,	2009	expressed	an	unqualified	opinion	thereon.

# (d)		Changes	in	Internal	Control	over	Financial	Reporting

There	were	no	changes	in	our	internal	control	over	financial	reporting	during	the	year	ended	December	27,	2008	that	have	materially	affected,	or	are	reasonably	likely	to materially	affect,	our	internal	control	over	financial	reporting

# Item	9B.		Other	Information

Not	applicable.

# PART	III

# Item	10.		Directors,	Executive	Officers	and	Corporate	Governance

Garmin	has	incorporated	by	reference	certain	information	in	response	or	partial	response	to	the	Items	under	this	Part	III	of	this	Annual	Report	on	Form	10-K	pursuant to	General	Instruction	G(3)	of	this	Form	10-K	and	Rule	12b-23	under	the	Exchange	Act.	Garmin's	definitive	proxy	statement	in	connection	with	its	annual	meeting	of shareholders	scheduled	for	June	5,	2009	(the	"Proxy	Statement")	will	be	filed	with	the	Securities	and	Exchange	Commission	no	later	than	120	days	after	December	27, 2008.

# (a) Directors	of	the	Company

The	information	set	forth	in	response	to	Item	401	of	Regulation	S-K	under	the	headings	"Proposal	1	-	Election	of	Two	Directors"	and	"The	Board	of	Directors"	in	the Proxy	Statement	is	hereby	incorporated	herein	by	reference	in	partial	response	to	this	Item	10.

# (b) Executive	Officers	of	the	Company

The	information	set	forth	in	response	to	Item	401	of	Regulation	S-K	under	the	heading	"Executive	Officers	of	the	Registrant"	in	Part	I	of	this	Form	10-K	is incorporated	herein	by	reference	in	partial	response	to	this	Item	10.

# (c) Compliance	with	Section	16(a)	of	the	Exchange	Act

The	information	set	forth	in	response	to	Item	405	of	Regulation	S-K	under	the	heading	"Section	16(a)	Beneficial	Ownership	Reporting	Compliance"	in	the	Proxy Statement	is	hereby	incorporated	herein	by	reference	in	partial	response	to	this	Item	10.

# (d) Audit	Committee		and	Audit	Committee	Financial	Expert

The	information	set	forth	in	response	to	Item	402	of	Regulation	S-K	under	the	heading	"The	Board	of	Directors	—	Audit	Committee"	in	the	Proxy	Statement	is	hereby incorporated	herein	by	reference	in	partial	response	to	this	Item	10.

Garmin's	Board	of	Directors	has	determined	that	Gene	M.	Betts,	Charles	W.	Peffer,	and	Thomas	A.	McDonnell,	members	of	Garmin's	Audit	Committee,	are	"audit committee	financial	experts"	as	defined	by	the	SEC	regulations	implementing	Section	407	of	the	Sarbanes-Oxley	Act	of	2002.		Mr.	Betts,	Mr.	Peffer	and	Mr.	McDonnell	are each	"independent"	as	defined	by	current	listing	standards	of	the	Nasdaq	Stock	Market.

# (e) Code	of	Ethics

												Garmin's	Board	of	Directors	has	adopted	the	Code	of	Conduct	of	Garmin	Ltd.	and	Subsidiaries	(the	"Code").		The	Code	is	applicable	to	all	Garmin	employees including	the	Chairman	and	Chief	Executive	Officer,	the	President	and	Chief	Operating	Officer,	the	Chief	Financial	Officer,	the	Controller	and	other	officers.		A	copy	of	the Code	is	filed	as	Exhibit	14.1	to	this	Annual	Report	on	Form	10-K.		If	any	amendments	to	the	Code	are	made,	or	any	waivers	with	respect	to	the	Code	are	granted	to	the Chief	Executive	Officer,	Chief	Financial	Officer	or	Controller,	such	amendment	or	waiver	will	be	disclosed	 in	a	Form	8-K	filed	with	 the	Securities	and	Exchange Commission.

# Item	11.		Executive	Compensation

The	 information	 set	 forth	 in	 response	 to	 Item	 402	 of	 Regulation	 S-K	 under	 the	 headings	 "Executive	 Compensation	 Matters"	 and	 "The	 Board	 of	 Directors	 –	 Non-

Management	Director	Compensation"	in	the	Proxy	Statement	is	hereby	incorporated	herein	by	reference	in	partial	response	to	this	Item	11.

The	information	set	forth	in	response	to	Item	407(e)(4)	of	Regulation	S-K	under	the	heading	"The	Board	of	Directors	—	Compensation	Committee	Interlocks	and	Insider Participation;	Certain	Relationships"	in	the	Proxy	Statement	is	hereby	incorporated	herein	by	reference	in	partial	response	to	this	Item	11.

The	information	set	forth	in	response	to	Item	407(e)(5)	of	Regulation	S-K	under	the	heading	"Executive	Compensation	Matters	–	Report	of	Compensation	Committee"	in the	Proxy	Statement	is	hereby	incorporated	herein	by	reference	in	partial	response	to	this	Item	11.

# Item	12.		Security	Ownership	of	Certain	Beneficial	Owners	and	Management	and	Related	Stockholder	Matters

The	information	set	forth	in	response	to	Item	403	of	Regulation	S-K	under	the	heading	"Stock	Ownership	of	Certain	Beneficial	Owners	and	Management"	in the		Proxy	Statement	is	hereby	incorporated	herein	by	reference	in	partial	response	to	this	Item	12.

# Equity	Compensation	Plan	Information

The	 following	 table	 gives	 information	 as	 of	 December	 27,	 2008	 about the	 Garmin	 common	 shares that	 may	 be issued	 under	 all	 of the	 Company's	 existing	 equity compensation	plans,	as	adjusted	for	stock	splits.

|  | A | B | C |
| :--- | :--- | :--- | :--- |
|  |  |  | Number\tof\tsecurities |
|  |  |  | remaining\tavailable\tfor |
|  |  |  | future\tissuance\tunder |
|  | Number\tof\tsecurities\tto\tbe | Weighted-average | equity\tcompensation |
|  | issued\tupon\texercise\tof | exercise\tprice\tof | plans\t(excluding |
|  | outstanding\toptions, | outstanding\toptions, | securities\treflected\tin |
| Plan\tCategory | warrants\tand\trights | warrants\tand\trights | column\tA) |
| Equity\tcompensation |  |  |  |
| plans\tapproved\tby\tshareholders | 10,525,858 | $47.76 | 2,316,234 |
| Equity\tcompensation |  |  |  |
| plans\tnot\tapproved\tby\tshareholders | — | — | — |
| Total | 10,525,858 | $47.76 | 2,316,234 |

(1)	Consists	of	the	Garmin	Ltd.	2005	Equity	Incentive	Plan,	the	Garmin	Ltd.	2000	Equity	Incentive	Plan,	the	Garmin	Ltd.	2000	Non-Employee	Directors'	Option Plan	and	the	Garmin	Ltd.	Employee	Stock	Purchase	Plan.

The	Company	has	no	knowledge	of	any	arrangement,	the	operation	of	which	may	at	a	subsequent	date	result	in	a	change	in	control	of	the	Company.

# Item	13.		Certain	Relationships	and	Related	Transactions,	and	Director	Independence

The	information	set	forth	in	response	to	Item	404	of	Regulation	S-K	under	the	heading	"Compensation	Committee	Interlocks	and	Insider	Participation;	Certain Relationships"	in	the	Proxy	Statement	is	incorporated	herein	by	reference	in	partial	response	to	this	Item	13.

The	information	set	forth	in	response	to	Item	407(a)	of	Regulation	S-K	under	the	headings	"Proposal	One—	Election	of	Two	Directors"	and	"The	Board	of Directors"	in	the	Proxy	Statement	is	hereby	incorporated	herein	by	reference	in	partial	response	to	this	Item	13.

# Item	14.		Principal	Accounting	Fees	and	Services

The	information	set	forth	under	the	headings	"Audit	Matters	—	Independent	Registered	Public	Accounting	Firm	Fees"	and	"Pre-Approval	of	Services	Provided	by the	Independent	Auditor"	in	the	Proxy	Statement	is	hereby	incorporated	by	reference	in	response	to	this	Item	14.

# PART	IV

# Item	15.		Exhibits,	and	Financial	Statement	Schedules

# (a) List	of	Documents	filed	as	part	of	this	Report

The	consolidated	financial	statements	and	related	notes,	together	with	the	report	of	Ernst	&	Young	LLP,	appear	in	Part	II,	Item	8	"Financial	Statements	and Supplementary	Data"	of	this	Form	10-K.

# (2) Schedule	II	Valuation	and	Qualifying	Accounts

All	other	schedules	have	been	omitted	because	they	are	not	applicable,	are	insignificant	or	the	required	information	is	shown	in	the	consolidated	financial	statements or	notes	thereto.

(3) Exhibits	—	The	following	exhibits	are	filed	as	part	of,	or	incorporated	by	reference	into,	this	Annual	Report	on	Form	10-K:

# (b) Exhibits.

The	exhibits	listed	on	the	accompanying	Exhibit	Index	in	Item	15(a)(3)	are	filed	as	part	of,	or	are	incorporated	by	reference	into,	this	Annual	Report	on	Form	10-K.

# (c) Financial	Statement	Schedules.

| Description | Balance	at<br>Beginning	of<br>Period | Charged	to<br>Costs	and<br>Expenses | Charged	to<br>Other<br>Accounts | Deductions | Balance	at<br>End	of<br>Period |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Year\tEnded\tDecember\t27,\t2008: |  |  |  |  |  |
| \t\tDeducted\tfrom\tasset\taccounts |  |  |  |  |  |
| \t\t\t\tAllowance\tfor\tdoubtful\taccounts | \t$10,246 | \t$32,355 | - | \t$(192) | \t$42,409 |
| \t\t\t\tInventory\treserve | 31,186 | 24,461 | - | (32,443) | 23,204 |
| Total | \t$41,432 | \t$56,816 | - | \t$(32,635) | \t$65,613 |
| Year\tEnded\tDecember\t29,\t2007: |  |  |  |  |  |
| \t\tDeducted\tfrom\tasset\taccounts |  |  |  |  |  |
| \t\t\t\tAllowance\tfor\tdoubtful\taccounts | \t$5,340 | \t$3,617 | - | \t$1,289 | \t$10,246 |
| \t\t\t\tInventory\treserve | 19,768 | 34,975 | - | (23,557) | 31,186 |
| Total | \t$25,108 | \t$38,592 | - | \t$(22,268) | \t$41,432 |
| Year\tEnded\tDecember\t30,\t2006: |  |  |  |  |  |
| \t\tDeducted\tfrom\tasset\taccounts |  |  |  |  |  |
| \t\t\t\tAllowance\tfor\tdoubtful\taccounts | \t$4,226 | \t$955 | - | \t$159 | \t$5,340 |
| \t\t\t\tInventory\treserve | 14,756 | 23,245 | - | (18,233) | 19,768 |
| Total | \t$18,982 | \t$24,200 | - | \t$(18,074) | \t$25,108 |

# SIGNATURES

Pursuant	to	the	requirements	of	Section	13	or	15(d)	of	the	Securities	Exchange	Act	of	1934,	the	registrant	has	duly	caused	this	report	to	be	signed	on	its	behalf	by	the undersigned,	thereunto	duly	authorized.

Min	H.	Kao

Chief	Executive	Officer

# POWER	OF	ATTORNEY

Know	all	persons	by	these	presents,	that	each	person	whose	signature	appears	below	constitutes	and	appoints		Min	H.	Kao	and	Kevin	Rauckman	and	Andrew	R. Etkind,	and	each	of	them,	as	his	attorney-in-fact,	with	the	power	of	substitution,	for	him	in	any	and	all	capacities,	to	sign	any	amendments	to	this	Annual	Report	on	Form	10- K,	and	to	file	the	same,	with	exhibits	thereto	and	other	documents	in	connection	therewith,	with	the	Securities	and	Exchange	Commission,	hereby	ratifying	and	confirming all	that	said	attorney-in-fact,	or	his	substitute	or	substitutes,	may	do	or	cause	to	be	done	by	virtue	hereof.

Pursuant	to	the	requirements	of	the	Securities	Exchange	Act	of	1934,	this	Annual	Report	on	Form	10-K	has	been	signed	below	by	the	following	persons	on	behalf	of the	registrant	and	in	the	capacities	indicated	on	February	25,	2009:

Chairman,	Chief

Executive	Officer	and	Director

(Principal	Executive	Officer)

/s/	Kevin	Rauckman

Kevin	Rauckman

(Principal	Financial	Officer	and	Principal	Accounting	Officer) Chief	Financial	Officer	and	Treasurer

/s/	Charles	W.	Peffer

Charles	W.	Peffer

Director

/s/	Clifton	A.	Pemble

Clifton	A	Pemble

Gene	M.	Betts

/s/Donald	H.	Eller

Donald	H.	Eller

/s/	Thomas	A.	McDonnell

Thomas	A.	McDonnell Director

# Exhibit	Index

The	following	exhibits	are	attached	hereto.		See	Part	IV	of	this	Annual	Report	on	Form	10-K	for	a	complete	list	of	exhibits.

*		Portions	of	Exhibit	10.20	have	been	omitted	pursuant	to	a	request	for	confidential	treatment.


considering the contractual obligations in which payments due by 1-3 years , what is the percentage of the operating leases in relation to the total obligations?
leases_2008 = 13789
obligations_2008 = 16054
percent_leases = leases_2008 / obligations_2008
answer = percent_leases * 100