United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 26, 2016

or 

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

For the transition period from             to          

Commission file number 0-31983

GARMIN LTD.

(Exact name of Company as specified in its charter)

Switzerland	98-0229227
(State or other jurisdiction	(I.R.S. Employer identification no.)
of incorporation or organization)
Mühlentalstrasse 2	N/A
8200 Schaffhausen	(Zip Code)
Switzerland (Address of principal executive offices)

Company's telephone number, including area code: +41 52 630 1600

Indicate by check mark whether the Company (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 Company 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 whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES þ NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer þ Accelerated Filer ¨ Non-accelerated Filer ¨ (Do not check if a smaller reporting company) Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨ NO þ

Number of shares outstanding of the registrant’s common shares as of April 25, 2016

CHF 10.00 par value:  208,077,418 (including treasury shares)

Garmin Ltd.

Form 10-Q

Quarter Ended March 26, 2016

Table of Contents

		Page
Part I - Financial Information
Item 1.	Condensed Consolidated Financial Statements	3
	Condensed Consolidated Balance Sheets at March 26, 2016 (Unaudited) and December 26, 2015	3
	Condensed Consolidated Statements of Income for the 13-weeks  ended March 26, 2016 and March 28, 2015 (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income for the 13-weeks ended March 26, 2016 and March 28, 2015 (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the 13-weeks ended March 26, 2016 and March 28, 2015 (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's Discussion and Analysis of  Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About  Market Risk	21
Item 4.	Controls and Procedures	21
Part II - Other Information
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24
Signature Page		25
Index to Exhibits		26

2

Part I - Financial Information

Item I - Condensed Consolidated Financial Statements

Garmin Ltd. And Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except per share information)

	(Unaudited)
	Mar 26,			Dec 26,
	2016			2015
Assets
Current assets:
Cash and cash equivalents	$	857,679		$	833,070
Marketable securities		198,147			215,161
Accounts receivable, net		408,283			531,481
Inventories, net		517,767			500,554
Deferred costs		50,861			49,176
Prepaid expenses and other current assets		96,396			81,645
Total current assets		2,129,133			2,211,087
Property and equipment, net		448,967			446,089
Marketable securities		1,279,799			1,343,387
Restricted cash		261			259
Noncurrent deferred income tax		117,467			116,518
Noncurrent deferred costs		39,663			38,769
Intangible assets, net		306,303			245,552
Other assets		88,731			97,730
Total assets	$	4,410,324		$	4,499,391
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	137,162		$	178,905
Salaries and benefits payable		75,862			70,601
Accrued warranty costs		31,407			30,449
Accrued sales program costs		49,236			67,613
Deferred revenue		154,965			164,982
Accrued royalty costs		25,737			30,310
Accrued advertising expense		20,185			33,547
Other accrued expenses		75,217			74,926
Income taxes payable		14,524			21,674
Dividend payable		96,425			192,991
Total current liabilities		680,720			865,998
Deferred income taxes		60,915			56,210
Non-current income taxes		103,035			101,689
Non-current deferred revenue		126,731			128,731
Other liabilities		1,676			1,637
Stockholders' equity:
Shares, CHF 10 par value, 208,077 shares authorized and issued; 189,193 shares outstanding at March 26, 2016 and 189,722 shares outstanding at December 26, 2015		1,797,435			1,797,435
Additional paid-in capital		70,413			62,239
Treasury stock		(434,346	)		(414,637	)
Retained earnings		2,018,609			1,930,517
Accumulated other comprehensive income		(14,864	)		(30,428	)
Total stockholders' equity		3,437,247			3,345,126
Total liabilities and stockholders' equity	$	4,410,324		$	4,499,391

See accompanying notes.

3

Garmin Ltd. And Subsidiaries

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share information)

	13-Weeks Ended
	Mar 26,			Mar 28,
	2016			2015
Net sales	$	624,040		$	585,394
Cost of goods sold		284,190			241,272
Gross profit		339,850			344,122
Advertising expense		32,233			27,672
Selling, general and administrative expense		95,610			98,750
Research and development expense		108,204			106,002
Total operating expense		236,047			232,424
Operating income		103,803			111,698
Other income (expense):
Interest income		7,428			8,024
Foreign currency (losses)		(4,839	)		(44,264	)
Other income		1,155			738
Total other income (expense)		3,744			(35,502	)
Income before income taxes		107,547			76,196
Income tax provision		19,455			9,403
Net income	$	88,092		$	66,793
Net income per share:
Basic	$	0.46		$	0.35
Diluted	$	0.46		$	0.35
Weighted average common shares outstanding:
Basic		189,497			191,762
Diluted		189,651			192,341

See accompanying notes.

4

Garmin Ltd. And Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands)

	13-Weeks Ended
	Mar 26,		Mar 28,
	2016		2015
Net income	$	88,092	$	66,793
Foreign currency translation adjustment		6,266		2,755
Change in fair value of available-for-sale marketable securities, net of deferred taxes		9,299		11,249
Comprehensive income	$	103,657	$	80,797

See accompanying notes.

5

Garmin Ltd. And Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	13-Weeks Ended
	Mar 26,			Mar 28,
	2016			2015
Operating Activities:
Net income	$	88,092		$	66,793
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		13,078			12,280
Amortization		7,115			6,584
Loss on sale or disposal of property and equipment		38			24
Provision for doubtful accounts		285			(1,080	)
Deferred income taxes		3,906			(3,647	)
Unrealized foreign currency (gain) loss		(5,412	)		47,877
Provision for obsolete and slow moving inventories		8,026			4,344
Stock compensation expense		8,172			7,769
Realized gain on marketable securities		(452	)		(340	)
Changes in operating assets and liabilities:
Accounts receivable		130,036			129,448
Inventories		(18,873	)		(56,897	)
Other current and non-current assets		(3,937	)		(11,537	)
Accounts payable		(45,515	)		(25,957	)
Other current and non-current liabilities		(31,606	)		(73,408	)
Deferred revenue		(12,337	)		(29,870	)
Deferred cost		(2,496	)		6,470
Income taxes payable		(8,733	)		2,802
Net cash provided by operating activities		129,387			81,655
Investing activities:
Purchases of property and equipment		(13,908	)		(18,143	)
Proceeds from sale of property and equipment		-			664
Purchase of intangible assets		(1,716	)		(717	)
Purchase of marketable securities		(151,070	)		(254,741	)
Redemption of marketable securities		237,464			308,751
Change in restricted cash		(2	)		(5	)
Acquisitions, net of cash acquired		(62,137	)		(12,632	)
Net cash provided by investing activities		8,631			23,177
Financing activities:
Dividends paid		(96,566	)		(91,964	)
Purchase of treasury stock under share repurchase plan		(19,796	)		(16,260	)
Purchase of treasury stock related to equity awards		(16	)		(89	)
Proceeds from issuance of treasury stock related to equity awards		103			246
Tax benefit from issuance of equity awards		2			399
Net cash used in financing activities		(116,273	)		(107,668	)
Effect of exchange rate changes on cash and cash equivalents		2,864			(22,044	)
Net increase (decrease) in cash and cash equivalents		24,609			(24,880	)
Cash and cash equivalents at beginning of period		833,070			1,196,268
Cash and cash equivalents at end of period	$	857,679		$	1,171,388

See accompanying notes.

6

Garmin Ltd. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

March 26, 2016

(In thousands, except per share information)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Additionally, the condensed consolidated financial statements should be read in conjunction with Item 2 of Management's Discussion and Analysis of Financial Condition and Results of Operations, included in this Form 10-Q. Operating results for the 13-week period ended March 26, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

The condensed consolidated balance sheet at December 26, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 26, 2015.

The Company’s fiscal year is based on a 52-53 week period ending on the last Saturday of the calendar year. Therefore the financial results of certain fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated quarters having only 13 weeks. The quarters ended March 26, 2016 and March 28, 2015 both contain operating results for 13 weeks.

2. Inventories

The components of inventories consist of the following:

	March 26,			December 26,
	2016			2015
Raw materials	$	195,441		$	203,173
Work-in-process		75,957			69,690
Finished goods		295,117			273,762
Inventory reserves		(48,748	)		(46,071	)
Inventory, net of reserves	$	517,767		$	500,554

7

3. Earnings Per Share

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

	13-Weeks Ended
	March 26,		March 28,
	2016		2015
Numerator:
Numerator for basic and diluted net income  per share - net income	$	88,092	$	66,793
Denominator:
Denominator for basic net income per share –  weighted-average common shares		189,497		191,762
Effect of dilutive securities – stock options, stock appreciation rights  and restricted stock units		154		579
Denominator for diluted net income per share –  adjusted weighted-average common shares		189,651		192,341
Basic net income per share	$	0.46	$	0.35
Diluted net income per share	$	0.46	$	0.35

There were 4,295 and 2,229 anti-dilutive stock options, stock appreciation rights and restricted stock units (collectively “equity awards”) outstanding during the 13-week periods ended March 26, 2016 and March 28, 2015, respectively.

There were 2 and 37 shares issued as a result of exercises and releases of equity awards for the 13-week periods ended March 26, 2016 and March 28, 2015, respectively.

4. Segment Information

The Company has identified five reportable segments – Auto, Aviation, Marine, Outdoor and Fitness. The Company’s Chief Operating Decision Maker (CODM) assesses segment performance and allocates resources to each segment individually.

Net sales, gross profit, and operating income for each of the Company’s reportable segments are presented below. In 2016 the Company moved action camera related revenue and expenses from the Outdoor segment to the Auto segment, allowing for alignment and synergies with other camera-based efforts occurring within the Auto segment. The overall impact of the move was immaterial. However, action camera related operating results for the 13-weeks ended March 28, 2015 have been recast to conform to the current year presentation.

8

	Reportable Segments
	Outdoor		Fitness		Marine		Auto		Aviation		Total
13-Weeks Ended March 26, 2016
Net sales	$	96,827	$	142,418	$	82,880	$	195,599	$	106,316	$	624,040
Gross profit	$	58,932	$	72,294	$	44,149	$	86,144	$	78,331	$	339,850
Operating income	$	27,885	$	16,573	$	10,293	$	18,566	$	30,486	$	103,803
13-Weeks Ended March 28, 2015
Net sales	$	72,815	$	130,994	$	64,297	$	219,226	$	98,062	$	585,394
Gross profit	$	49,064	$	83,075	$	35,513	$	104,959	$	71,511	$	344,122
Operating income	$	23,770	$	34,638	$	4,566	$	22,544	$	26,180	$	111,698

Allocation of certain research and development expenses, and selling, general, and administrative expenses are made to each segment on a percent of revenue basis.

Net sales and property and equipment, net by geographic area are as follows as of and for the 13-week periods ended March 26, 2016 and March 28, 2015. Note that APAC includes Asia Pacific and EMEA includes Europe, the Middle East and Africa:

	Americas		APAC		EMEA		Total
March 26, 2016
Net sales to external customers	$	317,957	$	80,355	$	225,728	$	624,040
Property and equipment, net	$	297,033	$	112,115	$	39,819	$	448,967
March 28, 2015
Net sales to external customers	$	305,261	$	71,782	$	208,351	$	585,394
Property and equipment, net	$	276,605	$	111,544	$	47,955	$	436,104

5. 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.

	13-Weeks Ended
	March 26,			March 28,
	2016			2015
Balance - beginning of the period	$	30,449		$	27,609
Accrual for products sold		12,452			6,742
Expenditures		(11,494	)		(10,485	)
Balance - end of the period	$	31,407		$	23,866

6. Commitments and Contingencies

The Company is party to certain commitments, which include purchases of raw materials, advertising expenditures, investments in certain low income housing tax credit projects, and other indirect purchases in connection with conducting our business. The aggregate amount of purchase orders and other commitments open as of March 26, 2016 was approximately $273,124. We cannot determine the aggregate amount of such purchase orders that represent contractual obligations because purchase orders may represent authorizations to purchase rather than binding agreements. Our purchase orders are based on our current needs and are typically fulfilled within short periods of time.

9

In the normal course of business, the Company and its subsidiaries are parties to various legal claims, investigations and complaints, including matters alleging patent infringement and other intellectual property claims. The Company evaluates, on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual or disclosure. The assessment regarding whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events.

Management of the Company currently does not believe there is at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies individually and in the aggregate, for the fiscal quarter ended March 26, 2016. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. Although management considers the likelihood to be remote, an adverse resolution of one or more of such matters in excess of management’s expectations could have a material adverse effect on the Company’s results of operations in a particular quarter or fiscal year.

The Company settled or resolved certain matters during the fiscal quarter ended March 26, 2016 that did not individually or in the aggregate have a material impact on the Company’s financial condition or results of operations.

7. Income Taxes

The Company’s income tax expense increased from $9,403 to $19,455 for the 13-week period ended March 26, 2016, compared to the 13-week period ended March 28, 2015.  The effective tax rate was 18.1% in the first quarter of 2016, compared to 12.3% in the first quarter of 2015.  The increase in effective tax rate compared to the first quarter 2015 resulted from the reduced income projection for 2016, which negatively impacts our income mix by jurisdiction. Additionally, the favorable release of uncertain tax position reserves due to expiration of certain statutes of limitations or completion of tax audits decreased by $1,514 compared to the first quarter of 2015. The increase in the effective tax rate was partially offset as a result of the permanent extension of the U.S. research and development tax credit legislation, which had not yet been extended in the first quarter of 2015.

8. Marketable Securities

The Financial Accounting Standards Board ("FASB") ASC topic entitled Fair Value Measurements and Disclosures defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The accounting guidance classifies the inputs used to measure fair value into the following hierarchy:

Level 1 Unadjusted quoted prices in active markets for the identical asset or liability

Level 2 Observable inputs for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability

Level 3 Unobservable inputs for the asset or liability

 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. Valuation is based on prices obtained from an independent pricing vendor using both market and income approaches. The primary inputs to the valuation include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, and credit spreads.

10

The method described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Available-for-sale securities measured at estimated fair value on a recurring basis are summarized below:

	Fair Value Measurements as of March 26, 2016
	Total		Level 1		Level 2		Level 3
U.S. Treasury securities	$	26,688	$	-	$	26,688	$	-
Agency securities		166,716		-		166,716		-
Mortgage-backed securities		299,413		-		299,413		-
Corporate securities		687,534		-		687,534		-
Municipal securities		218,589		-		218,589		-
Other		79,006				79,006
Total	$	1,477,946	$	-	$	1,477,946	$	-

	Fair Value Measurements as of December 26, 2015
	Total		Level 1		Level 2		Level 3
U.S. Treasury securities	$	27,731		-	$	27,731	$	-
Agency securities		208,631		-		208,631		-
Mortgage-backed securities		370,232		-		370,232		-
Corporate securities		648,590		-		648,590		-
Municipal securities		223,562		-		223,562		-
Other		79,802				79,802
Total	$	1,558,548	$	-	$	1,558,548	$	-

11

Marketable securities classified as available-for-sale securities are summarized below:

	Available-For-Sale Securities as of March 26, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses- OTTI(1)			Gross Unrealized Losses- Other (2)			Estimated Fair Value (Net Carrying Amount)
U.S. Treasury securities	$	26,491	$	200	$	-		$	(3	)	$	26,688
Agency securities		167,604		95		(914	)		(69	)		166,716
Mortgage-backed securities		302,047		261		(726	)		(2,169	)		299,413
Corporate securities		692,034		1,008		(1,032	)		(4,476	)		687,534
Municipal securities		218,079		990		(1	)		(479	)		218,589
Other		79,047		4		(12	)		(33	)		79,006
Total	$	1,485,302	$	2,558	$	(2,685	)	$	(7,229	)	$	1,477,946

	Available-For-Sale Securities as of December 26, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses- OTTI(1)			Gross Unrealized Losses- Other(2)			Estimated Fair Value (Net Carrying Amount)
U.S. Treasury securities	$	27,772	$	27	$	-		$	(68	)	$	27,731
Agency securities		211,248		105		(2,409	)		(313	)		208,631
Mortgage-backed securities		376,801		191		(1,210	)		(5,550	)		370,232
Corporate securities		656,447		179		(1,635	)		(6,401	)		648,590
Municipal securities		223,991		636		(9	)		(1,056	)		223,562
Other		79,853		4		(14	)		(41	)		79,802
Total	$	1,576,112	$	1,142	$	(5,277	)	$	(13,429	)	$	1,558,548

(1) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.

(2) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.

The Company’s investment policy requires investments to be rated A or better with the objective of minimizing the potential risk of principal loss. The fair value of the securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral and in the credit performance of the underlying issuer, among other factors. The Company does not intend to sell the securities that have an unrealized loss shown in the table above and it is not more likely than not that the Company will be required to sell the investment before recovery of their amortized costs bases, which may be maturity.

 The Company recognizes the credit component of other-than-temporary impairments of debt securities in "Other Income" and the noncredit component in "Other comprehensive income (loss)" for those securities that we do not intend to sell and for which it is not more likely than not that we will be required to sell before recovery. During 2015 and the 13-week period ending March 26, 2016, the Company did not record any material impairment charges on its outstanding securities.

 The amortized cost and estimated fair value of the securities at an unrealized loss position at March 26, 2016 were $977,633 and $967,719, respectively. Approximately 48.8% of securities in the Company’s portfolio were at an unrealized loss position at March 26, 2016. We have the ability to hold these securities until maturity or their value is recovered. We do not consider these unrealized losses to be other-than-temporary credit losses because there has been no deterioration in credit quality and no change in the cash flows of the underlying securities. The Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities; therefore, no impairment has been recorded in the accompanying condensed consolidated statement of income.

The cost of securities sold is based on the specific identification method.

12

The following table displays additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position:

	As of March 26, 2016
	Less than 12 Consecutive Months					12 Consecutive Months or Longer
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
U.S. Treasury securities	$	(3	)	$	6,506	$	-		$	-
Agency securities		(209	)		81,728		(774	)		46,326
Mortgage-backed securities		(1,242	)		153,245		(1,653	)		97,584
Corporate securities		(3,635	)		420,492		(1,873	)		73,627
Municipal securities		(334	)		49,812		(146	)		11,454
Other		(23	)		12,221		(22	)		14,724
Total		(5,446	)	$	724,004	$	(4,468	)	$	243,715

	As of December 26, 2015
	Less than 12 Consecutive Months					12 Consecutive Months or Longer
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
U.S. Treasury securities	$	(68	)	$	22,184	$	-		$	-
Agency securities		(691	)		117,803		(2,031	)		69,418
Mortgage-backed securities		(4,571	)		263,735		(2,189	)		83,722
Corporate securities		(6,719	)		521,731		(1,317	)		50,374
Municipal securities		(1,035	)		116,033		(30	)		6,557
Other		(29	)		14,666		(26	)		14,927
Total	$	(13,113	)	$	1,056,152	$	(5,593	)	$	224,998

The amortized cost and estimated fair value of marketable securities at March 26, 2016, 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.

			Estimated
	Cost		Fair Value
Due in one year or less	$	198,169	$	198,147
Due after one year through five years		1,103,644		1,098,731
Due after five years through ten years		136,298		134,646
Due after ten years		47,191		46,422
	$	1,485,302	$	1,477,946

9. Share Repurchase Plan

On February 13, 2015, the Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $300,000 of the common shares of Garmin Ltd. The repurchases may be made from time to time as market and business conditions warrant on the open market or in negotiated transactions in compliance with the SEC’s Rule 10b-18. The timing and amounts of any repurchases will be determined by the Company’s management depending on business and market conditions and other factors including price, regulatory requirements and capital availability. The program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. The share repurchase authorization expires on December 31, 2016.  As of March 26, 2016, the Company had repurchased 3,679 shares using cash of $151,209.  There remains approximately $148,791 available to repurchase additional shares under this authorization.

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10. Accumulated Other Comprehensive Income

The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week period ended March 26, 2016:

	13-Weeks Ended March 26, 2016
	Foreign Currency Translation Adjustment			Gross unrealized losses on available- for-sale securities- OTTI(3)			Net unrealized gains (losses) on available- for-sale securities- Other(4)			Total
Balance - beginning of period	$	(14,107	)	$	(5,277	)	$	(11,044	)	$	(30,428	)
Other comprehensive income before reclassification		6,266			2,592			7,017			15,875
Amounts reclassified from accumulated other comprehensive income		-			-			(311	)		(311	)
Net current-period other comprehensive income		6,266			2,592			6,706			15,564
Balance - end of period	$	(7,841	)	$	(2,685	)	$	(4,338	)	$	(14,864	)

(3) Represents the change in impairment, not related to credit, for those investment securities that have been determined to be other-than-temporarily impaired.

(4) Represents the change in unrealized gains (losses) on investment securities that have not been determined to be other-than-temporarily impaired.

The following provides required disclosure of reporting reclassifications out of AOCI for the 13-week period ended March 26, 2016:

Reclassifications Out of Accumulated Other Comprehensive Income

13-Weeks Ended March 28, 2016
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive  Income			Affected Line Item  in the Statement  Where Net Income  is Presented
Unrealized gains (losses) on available-for-sale securities	$	452		Other income (expense)
		(141	)	Income tax (provision) benefit
	$	311		Net of tax

11. Recently Issued Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes previous revenue recognition guidance. ASU 2014-09 requires that a company will recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. The new standard may be applied retrospectively to each prior period presented or in a modified retrospective approach in which the cumulative effect will be recognized as of the date of adoption. In August 2015, the FASB issued Accounting Standards Update No. 2015-14 (“ASU 2015-14”), which defers the effective date of the new guidance such that the new provisions will now be required for fiscal years, and interim periods within those years, beginning after December 15, 2017. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations (reporting revenue gross versus net) in the new revenue recognition standard. The Company is currently evaluating the impact of adopting the new revenue standards on its consolidated financial statements.

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In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to present a right-of-use asset and a corresponding lease liability on the balance sheet. Lessor accounting is substantially unchanged compared to the current accounting guidance. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended to simplify the accounting for share-based payment awards. The standard includes provisions addressing income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard on its consolidated financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The discussion set forth below, as well as other portions of this Quarterly Report, contains statements concerning potential future events. Such forward-looking statements are based upon assumptions by management, as of the date of this Quarterly Report, including assumptions about risks and uncertainties faced by the Company. 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 the Company’s assumptions prove incorrect or should unanticipated circumstances arise, 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 in the Company’s Annual Report on Form 10-K for the year ended December 26, 2015. This report has been filed with the Securities and Exchange Commission (the "SEC" or the "Commission") in Washington, D.C. and can be obtained by contacting the SEC's public reference operations or obtaining it through the SEC's website at http://www.sec.gov. Readers are strongly encouraged to consider those factors when evaluating any forward-looking statement concerning the Company. The Company will not update any forward-looking statements in this Quarterly Report to reflect future events or developments.

The information contained in this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and Notes thereto included in this Form 10-Q and the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 26, 2015.

The Company is 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 five business segments, the outdoor, fitness, marine, auto and aviation markets. The Company’s segments offer products through its network of independent dealers and distributors. However, the nature of products and types of customers for the five segments may vary significantly. As such, the segments are managed separately.

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Results of Operations

The following table sets forth the Company’s results of operations as a percentage of net sales during the periods shown (the table may not foot due to rounding):

	13-Weeks Ended
	March 26, 2016			March 28, 2015
Net sales		100	%		100	%
Cost of goods sold		46	%		41	%
Gross profit		54	%		59	%
Advertising		5	%		5	%
Selling, general and administrative		15	%		17	%
Research and development		17	%		18	%
Total operating expenses		38	%		40	%
Operating income		17	%		19	%
Other income (expense), net		1	%		-6	%
Income before income taxes		17	%		13	%
Provision for income taxes		3	%		2	%
Net income		14	%		11	%

The Company manages its operations in five segments: outdoor, fitness, marine, auto, and aviation, and each of its segments employs the same accounting policies. Allocation of certain research and development expenses, and selling, general, and administrative expenses are made to each segment on a percent of revenue basis. The segment table located in Note 4 sets forth the Company’s results of operations (in thousands) including net sales, gross profit, and operating income for each of the Company’s five segments during the periods shown. For each line item in the table, the total of the outdoor, fitness, marine, auto, and aviation segments' amounts equals the amount in the condensed consolidated statements of income included in Item 1.

In 2016 the Company moved action camera related revenue and expenses from the Outdoor segment to the Auto segment, allowing for alignment and synergies with other camera-based efforts occurring within the Auto segment. The overall impact of the move was immaterial. However, action camera related operating results for the 13-weeks ended March 28, 2015 have been recast to conform to the current year presentation.

Comparison of 13-Weeks Ended March 26, 2016 and March 28, 2015

(Amounts included in the following discussion are stated in thousands unless otherwise indicated)

Net Sales

	13-weeks ended March 26, 2016					13-weeks ended March 28, 2015					Year over Year
	Net Sales		% of Revenues			Net Sales		% of Revenues			$ Change			% Change
Outdoor	$	96,827		16	%	$	72,815		12	%	$	24,012			33	%
Fitness		142,418		23	%		130,994		22	%		11,423			9	%
Marine		82,880		13	%		64,297		11	%		18,583			29	%
Auto		195,599		31	%		219,226		37	%		(23,627	)		-11	%
Aviation		106,316		17	%		98,062		17	%		8,254			8	%
Total	$	624,040		100	%	$	585,394		100	%	$	38,645			7	%

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Net sales increased 7% for the 13-week period ended March 26, 2016 when compared to the year-ago quarter. All segments, excluding auto, grew in the quarter. Auto revenue remains the largest portion of our revenue mix at 31% in the first quarter of 2016 compared to 37% in the first quarter of 2015.

Total unit sales increased to 3,316 in the first quarter of 2016 from 3,044 in the same period of 2015.

Auto segment revenue decreased 11% from the year-ago quarter, as personal navigation device (PND) volumes continued to decline and due to the reduced contribution of amortization of previously deferred revenue in the first quarter of 2016 compared to first quarter 2015. Revenue in our outdoor segment experienced robust growth of 33% driven by growth in wearable and dog categories. Revenue in our marine segment increased 29% as new products, which garner higher average selling prices (ASPs), led to improved demand and market share gains. Fitness revenue grew 9% due to strong growth of newly introduced products. Aviation revenue increased 8% from the year-ago quarter due to contributions in both OEM and aftermarket.

Cost of Goods Sold

	13-weeks ended March 26, 2016					13-weeks ended March 28, 2015					Year over Year
	Cost of Goods		% of Revenues			Cost of Goods		% of Revenues			$ Change			% Change
Outdoor	$	37,895		39	%	$	23,751		33	%	$	14,143			60	%
Fitness		70,124		49	%		47,919		37	%		22,205			46	%
Marine		38,731		47	%		28,784		45	%		9,947			35	%
Auto		109,455		56	%		114,267		52	%		(4,812	)		-4	%
Aviation		27,985		26	%		26,551		27	%		1,434			5	%
Total	$	284,190		46	%	$	241,272		41	%	$	42,919			18	%

Cost of goods sold increased 500 basis points as a percentage of revenue from the year ago quarter with increases in all segments that posted revenue growth with a slightly offsetting decline in auto, while increasing 18% in absolute dollars.

In the auto segment, the 400 basis point cost of goods sold increase reflects lower PND shipments and product mix shift toward lower margin software-focused OEM solutions.  Cost of goods as a percentage of revenue for fitness was negatively impacted by product mix shifts to high volume, lower ASP activity trackers. In the outdoor segment, the increase in cost of goods sold reflects product mix shift toward higher cost per unit products. In the marine segment, the cost of goods sold increase reflects the product mix shift toward higher cost per unit products while in the aviation segment product mix resulted in decreased cost of goods sold as a percent of revenue.

Gross Profit

	13-weeks ended March 26, 2016					13-weeks ended March 28, 2015					Year over Year
	Gross Profit		% of Revenues			Gross Profit		% of Revenues			$ Change			% Change
Outdoor	$	58,932		61	%	$	49,064		67	%	$	9,868			20	%
Fitness		72,294		51	%		83,075		63	%		(10,781	)		-13	%
Marine		44,149		53	%		35,513		55	%		8,635			24	%
Auto		86,144		44	%		104,959		48	%		(18,815	)		-18	%
Aviation		78,331		74	%		71,511		73	%		6,819			10	%
Total	$	339,850		54	%	$	344,122		59	%	$	(4,271	)		-1	%

Gross profit dollars in the first quarter of 2016 decreased 1% while gross profit margin decreased 400 basis points compared to the first quarter of 2015. Fitness, outdoor, marine and auto suffered gross margin decline, as discussed above. Aviation margins increased slightly, as discussed above.

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Advertising Expense

	13-weeks ended March 26, 2016				13-weeks ended March 28, 2015
	Advertising				Advertising				Year over Year
		Expense	% of Revenues			Expense	% of Revenues			$ Change		% Change
Outdoor	$	5,158	5	%	$	4,151	6	%	$	1,008		24	%
Fitness		14,852	10	%		11,170	9	%		3,682		33	%
Marine		4,603	6	%		3,763	6	%		839		22	%
Auto		6,165	3	%		7,225	3	%		(1,060	)	-15	%
Aviation		1,455	1	%		1,363	1	%		92		7	%
Total	$	32,233	5	%	$	27,672	5	%	$	4,560		16	%

Advertising expense increased 16% in absolute dollars and were flat year-over-year as a percent of revenue. The increase in absolute dollars primarily occurred in fitness and outdoor with increased media spend and cooperative advertising. This increase was partially offset by decreased spending in auto due to reduced cooperative advertising associated with lower volumes.

Selling, General and Administrative Expense

	13-weeks ended March 26, 2016				13-weeks ended March 28, 2015
	Selling, General &				Selling, General &				Year over Year
		Admin. Expenses	% of Revenues			Admin. Expenses	% of Revenues			$ Change		% Change
Outdoor	$	15,971	16	%	$	12,665	17	%	$	3,306		26	%
Fitness		26,051	18	%		25,082	19	%		968		4	%
Marine		16,082	19	%		13,979	22	%		2,103		15	%
Auto		30,790	16	%		40,746	19	%		(9,956	)	-24	%
Aviation		6,716	6	%		6,278	6	%		438		7	%
Total	$	95,610	15	%	$	98,750	17	%	($	3,139	)	-3	%

Selling, general and administrative expense decreased 3% in absolute dollars and 200 basis points as a percent of revenues compared to the year-ago quarter. The absolute dollar decrease is related to less litigation related costs compared to the year ago period. Variances by segment are primarily due to the allocation of certain selling, general and administrative expenses based on percentage of total revenues.

Research and Development Expense

	13-weeks ended March 26, 2016				13-weeks ended March 28, 2015
	Research &				Research &				Year over Year
		Development	% of Revenues			Development	% of Revenues			$ Change		% Change
Outdoor	$	9,918	10	%	$	8,478	12	%	$	1,440		17	%
Fitness		14,818	10	%		12,185	9	%		2,632		22	%
Marine		13,171	16	%		13,205	21	%		(35	)	0	%
Auto		30,623	16	%		34,444	16	%		(3,822	)	-11	%
Aviation		39,674	37	%		37,690	38	%		1,984		5	%
Total	$	108,204	17	%	$	106,002	18	%	$	2,202		2	%

Research and development expense increased 2% due to ongoing development activities for new products. In absolute dollars, research and development costs increased $2.2 million when compared with the year-ago quarter but decreased as a percent of revenue by 100 basis points. Our research and development spending is focused on creating new products, new product categories, and new markets through innovation and clear differentiators from our competition.

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Operating Income

	13-weeks ended March 26, 2016					13-weeks ended March 28, 2015					Year over Year
	Operating Income		% of Revenues			Operating Income		% of Revenues			$ Change			% Change
Outdoor	$	27,885		29	%	$	23,770		33	%	$	4,114			17	%
Fitness		16,573		12	%		34,638		26	%		(18,064	)		-52	%
Marine		10,293		12	%		4,566		7	%		5,728			125	%
Auto		18,566		9	%		22,544		10	%		(3,976	)		-18	%
Aviation		30,486		29	%		26,180		27	%		4,304			16	%
Total	$	103,803		17	%	$	111,698		19	%	$	(7,896	)		-7	%

Operating income decreased 7% in absolute dollars and 200 basis points as a percent of revenue when compared to the first quarter of 2015. Revenue growth, declines in the gross margin percentage, as discussed above, coupled with increases in advertising and research and development, contributed to the decline.

Other Income (Expense)

	13-weeks ended			13-weeks ended
	March 26, 2016			March 28, 2015
Interest Income	$	7,428		$	8,024
Foreign Currency gains (losses)	$	(4,839	)		(44,264	)
Other	$	1,155			738
Total	$	3,744		$	(35,502	)

The average return on cash and investments during the first quarter of 2016 was 1.3% compared to 1.2% during the same quarter of 2015. Lower interest income in the first quarter of 2016, as compared to the same period of 2015, is due to reduced cash balances in the current period.

Foreign currency gains and losses for the Company are typically driven by movements in the Taiwan Dollar and the Euro in relation to the U.S. Dollar. The Taiwan Dollar is the functional currency of Garmin Corporation. The U.S. Dollar is the functional currency of Garmin (Europe) Ltd. The Euro is the functional currency of most other European subsidiaries. As these entities have grown, currency fluctuations can generate material gains and losses. Additionally, Euro-based inter-company transactions can also generate currency gains and losses. Due to the relative size of the entities using a functional currency other than the Taiwan Dollar and the Euro, currency fluctuations related to these entities are not expected to have a material impact on the Company’s financial statements.

The $4.8 million currency loss in the first quarter of 2016 was primarily due to the weakening of the U.S. Dollar against the Taiwan Dollar. During the first quarter of 2016, the U.S. Dollar weakened 1.0% against the Taiwan Dollar, resulting in a loss of $6.6 million. This was partially offset by the U.S. Dollar also weakening 1.7% against the Euro, resulting in a gain of $1.1 million. The remaining net currency gain of $0.7 million is related to other currencies and timing of transactions.

The majority of the $44.3 million currency loss in the first quarter of 2015 was due to the strengthening of the U.S. Dollar against the Euro in congruence with the U.S. Dollar weakening against the Taiwan Dollar. During the first quarter of 2015, the U.S. Dollar strengthened 10.8% compared to the Euro resulting in a loss of $31.0 million while the U.S. Dollar weakened against the Taiwan Dollar 1.9% resulting in a loss of $14.0 million. The remaining net currency gain of $0.7 million is related to other currencies and timing of transactions.

Income Tax Provision

The Company’s income tax expense increased from $9.4 million to $19.5 million for the 13-week period ended March 26, 2016, compared to the 13-week period ended March 28, 2015.  The effective tax rate was 18.1% in the first quarter of 2016, compared to 12.3% in the first quarter of 2015.  The increase in effective tax rate compared to the first quarter 2015 resulted from the reduced income projection for 2016, which negatively impacts our income mix by jurisdiction. Additionally, the favorable release of uncertain tax position reserves due to expiration of certain statutes of limitations or completion of tax audits decreased by $1.5 million compared to the first quarter of 2015. The increase in the effective tax rate was partially offset as a result of the permanent extension of the U.S. research and development tax credit legislation, which had not yet been extended in the first quarter of 2015.

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Net Income

As a result of the above, net income increased by $21.3 million for the 13-week period ended March 26, 2016 to $88.1 million compared to $66.8 million for the 13-week period ended March 28, 2015.

Liquidity and Capital Resources

Operating Activities

	13-Weeks Ended
	Mar 26,		Mar 28,
(In thousands)	2016		2015
Net cash provided by operating activities	$	129,387	$	81,655

The $47.7 million increase in cash provided by operating activities in the first quarter of 2016 compared to first quarter of 2015 was primarily due to the following:

· other current and noncurrent liabilities providing $41.8 million more cash primarily due to the timing of payments for royalties

· inventories and related provisions for obsolete and slow moving inventories providing $41.7 million more cash primarily due to reduced purchases of raw materials and

· net income increasing $21.3 million as discussed in the Results of Operations above

Partially offset by:

· the $53.3 million impact of decreasing unrealized foreign currency losses due primarily to foreign currency rate fluctuations as discussed in the Results of Operations section above

· accounts payable providing $19.5 million less cash due to the timing of disbursements and

· the impact of income tax payable providing $11.5 million less cash due to the timing of disbursements

Investing Activities

	13-Weeks Ended
	Mar 26,		Mar 28,
(In thousands)	2016		2015
Net cash provided by investing activities	$	8,631	$	23,177

The $14.6 million decrease in cash provided by investing activities in first quarter of 2016 compared to first quarter of 2015 was primarily due to the following:

· increased cash payments for acquisitions of $49.5 million

Partially offset by:

· increased net redemptions of marketable securities of $32.4 million

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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. Garmin’s average interest rate returns on cash and investments during first quarter of 2016 and 2015 were approximately 1.3% and 1.2%, respectively.

Financing Activities

	13-Weeks Ended
	Mar 26,			Mar 28,
(In thousands)	2016			2015
Net cash used in financing activities	$	(116,273	)	$	(107,668	)

The $8.6 million increase in cash used in financing activities in first quarter of 2016 compared to first quarter of 2015 was primarily due to the following:

· increased dividend payments of $4.6 million due to the increase of our year-over-year dividend rate and

· increased purchases of treasury stock of $3.5 million under a share repurchase authorization

We currently use cash flow from operations to fund our capital expenditures, to support our working capital requirements, to pay dividends, and to fund share repurchases. We expect that future cash requirements will principally be for capital expenditures, working capital, payment of dividends declared, share repurchases and the funding of strategic acquisitions. We believe that our existing cash balances and cash flow from operations will be sufficient to meet our long-term projected capital expenditures, working capital and other cash requirements.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There are numerous market risks that can affect our future business, financial condition and results of operations. In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part II, “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended December 26, 2015. There have been no material changes during the 13-week period ended March 26, 2016 in the risks described in our Annual Report on Form 10-K related to market sensitivity, inflation, foreign currency exchange rate risk and interest rate risk.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures. The Company maintains a system of disclosure controls and procedures that are designed to provide reasonable assurance that information, which is required to be timely disclosed, is accumulated and communicated to management in a timely fashion.  A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. As of March 26, 2016, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures.  Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded as of March 26, 2016 that our disclosure controls and procedures were effective such that the information relating to the Company, required to be disclosed in our Securities and Exchange Commission ("SEC") reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to the Company's management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

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(b) Changes in internal control over financial reporting. There has been no change in the Company’s internal controls over financial reporting that occurred during the Company’s fiscal quarter ended March 26, 2016 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II - Other Information

Item 1. Legal Proceedings

The following information supplements and amends the discussion set forth under Part I, Item 3 "Legal Proceedings" in the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2015.

Brian Meyers, on behalf of himself and all others similarly situated, v. Garmin International, Inc. Garmin USA, Inc. and Garmin Ltd.

On March 30, 2016, the court denied the plaintiff’s motion for class certification, granted summary judgment in favor of Garmin and dismissed the lawsuit.

Navico Inc. And Navico Holding AS v. Garmin International, Inc. and Garmin USA, Inc.

On March 4, 2016 Navico Inc. and Navico Holding AS filed suit in the United States District Court for the Eastern District of Texas, Marshall Division, against Garmin International, Inc. and Garmin USA, Inc. (collectively, “Garmin”) alleging infringement of  U.S. Patents 9,223,022 (“the ’022 patent”) and 9,244,168 (“the ’168 patent”). On April 1, 2016 Garmin filed its answer asserting that each asserted claim of the ‘022 and ‘168 patents is invalid and/or not infringed and that the ‘022 and ‘168 patents are unenforceable due to inequitable conduct by Navico’s representatives during the prosecution of these patents. On April 1, 2016 Garmin also filed a motion to transfer this action to the United States District Court for the Northern District of Oklahoma. 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 believes that the claims in this lawsuit are without merit and intends to vigorously defend this lawsuit.

Pioneer Corporation v. Iiyonet Inc.

On February 16, 2016 the eighth round of oral arguments was held before the Tokyo District Court. The court has scheduled a ninth and final round of oral arguments to take place on May 12, 2016. On April 8, 2016, the Japanese Patent Office issued a Trial Decision finding that Pioneer’s asserted claims, as amended, are valid.

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, other intellectual property, product liability, customer 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.

Item 1A. Risk Factors

There are many risks and uncertainties that can affect our future business, financial performance or share price. In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 26, 2015. There have been no material changes during the 13-week period ended March 26, 2016 in the risks described in our Annual Report on Form 10-K. These risks, however, are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Items (a) and (b) are not applicable.

(c) Issuer Purchases of Equity Securities

The Board of Directors approved a share repurchase program on February 13, 2015, 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, 2016. The following table lists the Company’s share purchases during the first quarter of fiscal 2016:

Period	Total # of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares (or approx. Dollar Value of Shares in thousands) That may yet be Purchased Under the Plans or Program
December 27, 2015 - January 23, 2016		135,007	$	34.08		135,007	$	163,986
January 24, 2016- February 20, 2016		121,589	$	35.00		121,589	$	159,731
February 21, 2016 - March 26, 2016		273,759	$	39.96		273,759	$	148,791
Total		530,355	$	37.33		530,355	$	148,791

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Not applicable

23

Item 6. Exhibits

Exhibit 31.1	Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
Exhibit 31.2	Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
Exhibit 32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit 101.INS	XBRL Instance Document
Exhibit 101.SCH	XBRL Taxonomy Extension Schema
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GARMIN LTD.
	By	/s/ Douglas G. Boessen
		Douglas G. Boessen
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)
Dated: April 27, 2016

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INDEX TO EXHIBITS

Exhibit No.	Description
Exhibit 31.1	Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
Exhibit 31.2	Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
Exhibit 32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101.INS	XBRL Instance Document
Exhibit 101.SCH	XBRL Taxonomy Extension Schema
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase

26