Garmin GRMN · USD

11. Segment Information and Geographic DataGarmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM, which represent the primary markets served by the Company. These operating segments are also the Company’s reportable segments.The Company’s Chief Executive Officer, who has been identified as the Chief Operating Decision Maker (CODM), uses operating income (loss) as the primary measure of profit or loss to assess segment performance. Operating income (loss) represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment. Most costs of goods sold and the majority of operating expenses are also directly attributed to each segment, while certain other costs of goods sold and operating expenses are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. There are no inter-segment sales or transfers.The Company’s segments share many common resources, infrastructures and assets in the normal course of business, and certain assets are therefore not separately tracked by segment. Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, capital expenditures, depreciation expense, or amortization expense by segment to the CODM.The CODM utilizes operating income (loss) to assess segment performance and make decisions about the allocation of operating and capital resources by analyzing future opportunities and recent operating income (loss) results, trends, and variances of each segment in relation to forecasts and historical performance.Net sales, cost of goods sold, gross profit, significant segment expenses, and operating income (loss) for each of the Company’s five reportable segments are presented below.

2. RevenueIn order to further depict how the nature, amount, timing and uncertainty of the Company’s revenue and cash flows are affected by economic factors, Garmin disaggregates revenue (or “net sales”) by geographic region, major product category, and pattern of recognition.Disaggregated revenue by geographic region (Americas, EMEA, and APAC) is presented in Note 11 – Segment Information and Geographic Data. Note 11 also contains disaggregated revenue information of the five major product categories identified by the Company (fitness, outdoor, aviation, marine, and auto OEM), which also represent the Company’s operating segments. A large majority of the Company’s revenue is recognized on a point in time basis, usually once the product is shipped and title and risk of loss have transferred to the customer. Revenue recognized over time is primarily within the outdoor, aviation, and auto OEM segments and relates to performance obligations that are satisfied over the estimated life of the product or contractual service period. Revenue disaggregated by pattern of recognition, based on the timing of transfer of the goods or services, is presented in the table below: Fiscal Year Ended December 27, 2025 December 28, 2024 December 30, 2023 Point in time $ 6,910,894 $ 5,968,124 $ 4,938,479 Over time 334,625 328,779 289,773 Net sales $ 7,245,519 $ 6,296,903 $ 5,228,252 Transaction price and costs associated with the Company’s unsatisfied performance obligations are reflected as deferred revenue and deferred costs, respectively, on the Company’s consolidated balance sheets. Such amounts are recognized ratably over the applicable estimated useful life or contractual service period. Changes in deferred revenue and costs during the 52-week periods ending December 27, 2025 and December 28, 2024 are presented below: Fiscal Year Ended December 27, 2025 December 28, 2024 DeferredRevenue (1) DeferredCosts (2) DeferredRevenue (1) DeferredCosts (2) Balance, beginning of period $ 139,318 $ 30,938 $ 137,337 $ 27,373 Deferrals in period 323,230 61,957 330,760 65,111 Recognition of deferrals in period (334,625 ) (70,984 ) (328,779 ) (61,546 ) Balance, end of period $ 127,923 $ 21,911 $ 139,318 $ 30,938 (1) Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the consolidated balance sheets.(2) Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the consolidated balance sheets.

7. Commitments and ContingenciesCommitments The Company is party to certain commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of payments for inventory, capital expenditures, and other indirect purchases in connection with conducting its business. The aggregate amount of purchase orders and other commitments open as of December 27, 2025 that may represent noncancellable unconditional purchase obligations having a remaining term in excess of one year was approximately $411,000. Certain cash balances are held as collateral in relation to bank guarantees. This restricted cash is reported within other noncurrent assets on the Company’s consolidated balance sheets and totaled $714 and $685 on December 27, 2025 and December 28, 2024, respectively. ContingenciesManagement of the Company currently does not believe it is reasonably possible that the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies in the aggregate, for the fiscal year ended December 27, 2025. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. An adverse resolution of one or more of such matters in excess of management’s expectations could have a material adverse effect in the particular quarter or fiscal year in which a loss is recorded, but based on information currently known, the Company does not believe it is likely that losses from such matters would have a material adverse effect on the Company’s business or its consolidated financial position, results of operations or cash flows. The Company settled or resolved certain legal matters during the fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023 that did not individually or in the aggregate have a material impact on the Company’s business or its consolidated financial position, results of operations or cash flows.

5. Income Taxes As disclosed in Note 1 – Summary of Significant Accounting Policies, the Company adopted the requirements of ASU 2023-09 using a retrospective approach. Certain other disclosures have been recast to conform to the current period presentation, including references to Switzerland as Garmin Ltd.’s country of domicile.The components of the Company’s income tax provision (benefit) were as follows: Fiscal Year Ended December 27, 2025 December 28, 2024 December 30, 2023 Switzerland federal: Current $ 95,959 $ 95,020 $ 88,052 Deferred 6,846 6,324 5,011 $ 102,805 $ 101,344 $ 93,063 Switzerland canton: Current $ 38,579 $ 33,764 $ 23,230 Deferred 71,157 57,231 (171,015 ) $ 109,736 $ 90,995 $ (147,785 ) Foreign: Current $ 133,564 $ 244,824 $ 139,164 Deferred 4,543 (153,198 ) (173,722 ) $ 138,107 $ 91,626 $ (34,558 ) Total $ 350,648 $ 283,965 $ (89,280 ) The Company’s income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate of Switzerland, Garmin Ltd.’s country of domicile, to income before income taxes. The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows (the table may not foot due to rounding): Fiscal Year Ended December 27, 2025 December 28, 2024 December 30, 2023 Amount Percent Amount Percent Amount Percent Federal income taxes at Switzerland statutory rate $ 171,235 8.5 % $ 144,109 8.5 % $ 102,030 8.5 % Cantonal income taxes, net of income tax effect* 109,828 5.5 % 98,753 5.8 % (150,435 ) -12.5 % Foreign tax effects United States Statutory tax rate difference between the U.S. and Switzerland 31,673 1.6 % 18,133 1.1 % (25,808 ) -2.1 % State income taxes (5,047 ) -0.3 % (6,248 ) -0.4 % (21,619 ) -1.8 % Research and development tax credits (34,507 ) -1.7 % (38,227 ) -2.3 % (31,849 ) -2.7 % Foreign Derived Intangible Income deduction - 0.0 % (13,751 ) -0.8 % (6,432 ) -0.5 % Stock compensation (14,149 ) -0.7 % (9,252 ) -0.5 % (1,101 ) -0.1 % Other 2,408 0.1 % 5,171 0.3 % 4,979 0.4 % Taiwan Statutory tax rate difference between Taiwan and Switzerland 27,709 1.4 % 28,225 1.7 % 22,563 1.9 % Withholding tax 28,117 1.4 % 29,080 1.7 % 23,665 2.0 % Other (3,323 ) -0.2 % (2,030 ) -0.1 % 12 0.0 % Luxembourg Statutory tax rate difference between Luxembourg and Switzerland (25,916 ) -1.3 % (24,912 ) -1.5 % (12,407 ) -1.0 % Gain on sale of treasury shares 42,990 2.1 % 41,283 2.4 % 21,295 1.8 % Other 202 0.0 % 597 0.0 % 581 0.

6. Leases The following table represents lease costs recognized in the Company’s consolidated statements of income for the 52-weeks ended December 27, 2025. Lease costs are included in selling, general and administrative expense and research and development expense on the Company’s consolidated statements of income. Fiscal Year Ended December 27, 2025 December 28, 2024 Operating lease cost (1) $ 63,934 $ 54,526 (1) Operating lease cost includes short-term lease costs and variable lease costs, which were not material in the periods presented. The following table represents the components of leases that are recognized on the Company’s consolidated balance sheets as of December 27, 2025 and December 28, 2024. December 27, 2025 December 28, 2024 Operating lease right-of-use assets $ 196,183 $ 164,656 Other accrued expenses $ 31,153 $ 27,901 Noncurrent operating lease liabilities 164,835 134,886 Total lease liabilities $ 195,988 $ 162,787 Weighted average remaining lease term 6.7 years 7.3 years Weighted average discount rate 4.8 % 4.4 % The following table presents maturities of the Company’s lease liabilities as of December 27, 2025. Year Amount 2026 $ 43,514 2027 39,122 2028 36,165 2029 32,118 2030 27,589 Thereafter 57,003 Total 235,511 Less: imputed interest (39,523 ) Present value of lease liabilities 195,988 The following table presents supplemental cash flow and noncash information related to leases. Fiscal Year Ended December 27, 2025 December 28, 2024 Cash paid for amounts included in the measurement of operating lease liabilities (1) $ 45,973 $ 37,772 Right-of-use assets obtained in exchange for new operating lease liabilities $ 30,501 $ 30,423 (1) Included in net cash provided by operating activities in the accompanying consolidated statements of cash flows.

Item 1C. Cybersecurity Risk Management and Strategy Garmin has a cybersecurity risk management program, generally aligned with the tenets and methodologies of industry standards and best practices such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework, designed to protect the confidentiality, integrity, and availability of the Company’s information systems through assessing, identifying, and managing material risks from cybersecurity threats. Garmin’s management of information system platforms and the related cybersecurity infrastructure is tightly integrated with the Company’s product development and technology management teams. Cybersecurity risks are identified, reported, and managed by the Company’s in-house cybersecurity experts as well as third-party providers of penetration testing, cyber-threat intelligence, and incident forensics services. Material Risk Identification The Company identifies risks from cybersecurity threats through a variety of methods including, but not limited to, internal and external assessments, security incidents, evaluations of changes to the business environment, systems, or technology, and reporting by associates, vendors, customers, and security researchers. These processes occur during the procurement, development, integration, modification, operation, and maintenance of the Company’s information systems and the integration with or introduction, purchase, acquisition, or renewal of any third-party information systems and services. Notable changes to the Company’s operating environment are scrutinized to ensure the confidentiality, integrity, and availability of the Company’s information systems. Material Risk Assessment The Company evaluates material risks from cybersecurity threats in terms of the likelihood and potential impact on technology, information, data, and business operations, taking into account applicable laws and regulations, and with a focus on protecting the confidentiality, integrity, and availability of information, data and systems. Associated risk assessments are performed by the Company’s risk analysts, subject matter experts, and information technology associates to identify, analyze, and quantify the risks and relevant objectives, and to determine the appropriate management action and priorities for managing the risks and implementing mitigating controls.

3. Earnings Per ShareThe following table sets forth the computation of basic and diluted net income per share. Stock options, stock appreciation rights, and restricted stock units are collectively referred to as "equity awards". There were no anti-dilutive equity awards excluded from the calculation of diluted net income per share for the periods presented below. Fiscal Year Ended December 27, 2025 December 28, 2024 December 30, 2023 Numerator: Numerator for basic and diluted net income per share - net income $ 1,663,887 $ 1,411,436 $ 1,289,636 Denominator (in thousands): Denominator for basic net income per share – weighted-average common shares 192,467 192,060 191,397 Effect of dilutive equity awards 1,149 1,221 661 Denominator for diluted net income per share – adjusted weighted-average common shares 193,616 193,281 192,058 Basic net income per share $ 8.65 $ 7.35 $ 6.74 Diluted net income per share $ 8.59 $ 7.30 $ 6.

8. Stockholders' Equity Dividends Under Swiss corporate law, dividends must be approved by shareholders at the annual general meeting of the Company’s shareholders. Approved dividends are payable in four equal installments on dates determined by the Board of Directors. A reduction of retained earnings and a corresponding liability are recorded at the time of shareholders' approval and are periodically adjusted based on the number of applicable shares outstanding. The Company’s shareholders approved the following dividends: Approval Date Dividend Payment Date Record Date Dividend Per Share Payment Amount Fiscal 2025 June 6, 2025 June 27, 2025 June 16, 2025 $ 0.90 $ 173,182 June 6, 2025 September 26, 2025 September 12, 2025 $ 0.90 $ 173,171 June 6, 2025 December 26, 2025 December 12, 2025 $ 0.90 $ 172,966 June 6, 2025 March 27, 2026 March 13, 2026 $ 0.90 $ 173,351 Total $ 3.60 $ 692,670 Fiscal 2024 June 7, 2024 June 28, 2024 June 17, 2024 $ 0.75 $ 144,035 June 7, 2024 September 27, 2024 September 13, 2024 $ 0.75 $ 144,127 June 7, 2024 December 27, 2024 December 13, 2024 $ 0.75 $ 143,981 June 7, 2024 March 28, 2025 March 14, 2025 $ 0.75 $ 144,566 Total $ 3.00 $ 576,709 Fiscal 2023 June 9, 2023 June 30, 2023 June 20, 2023 $ 0.73 $ 139,595 June 9, 2023 September 29, 2023 September 15, 2023 $ 0.73 $ 139,724 June 9, 2023 December 29, 2023 December 15, 2023 $ 0.73 $ 139,603 June 9, 2023 March 29, 2024 March 15, 2024 $ 0.73 $ 140,211 Total $ 2.92 $ 559,133 The estimated payment amount for the dividend scheduled to be paid on March 27, 2026 was included in dividend payable on the Company’s consolidated balance sheets as of December 27, 2025. Approximately $94,981 and $61,129 of retained earnings was indefinitely restricted from distribution to shareholders pursuant to the laws of Taiwan as of December 27, 2025 and December 28, 2024, respectively. Share Repurchase Program On April 22, 2022, the Board of Directors approved a share repurchase program (the “2022 Program”) authorizing the Company to repurchase up to $300,000 of the common shares of Garmin Ltd., exclusive of the cost of any associated excise tax. As of December 30, 2023, the Company had repurchased 3,176,453 shares for $300,000, leaving $0 available to repurchase additional shares under the 2022 Program when the share repurchase authorization expired on December 29, 2023.