| Segment Information and Geographic Data | 4. Segment Information and Geographic Data Garmin is organized in the six operating segments of fitness, outdoor, aviation, marine, consumer auto, and auto OEM. The fitness, outdoor, aviation, and marine operating segments represent reportable segments. The consumer auto and auto OEM operating segments, which serve the auto market, do not meet the quantitative thresholds to separately qualify as reportable segments, and they are therefore reported together in an “all other” category captioned as auto. Fitness, outdoor, aviation, marine, and auto are collectively referred to as the Company's reported segments. The Company’s Chief Executive Officer, who has been identified as the CODM, uses operating income as the measure of profit or loss, combined with other measures, to assess segment performance and allocate resources. Operating income 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 manner appropriate to the specific facts and circumstances of the expenses being allocated. As indicated in Note 1 to the condensed consolidated financial statements, in the first quarter of fiscal 2022 the methodology used to allocate certain selling, general, and administrative expenses to the segments was refined to allocate these expenses in a more direct manner to provide the Company’s CODM with a more meaningful representation of segment profit or loss. The Company’s composition of operating segments and reportable segments did not change. Results for the 13-week and 26-week periods ended June 26, 2021 have been recast below to conform with the current period presentation. Net sales (“revenue”), gross profit, and operating income for each of the Company’s five reported segments are presented below, along with supplemental financial information for the auto OEM and consumer auto operating segments that management believes is useful.
Auto
Fitness Outdoor Aviation Marine Total Consumer Auto Total
13-Weeks Ended June 25, 2022
Net sales $ 272,095 $ 381,915 $ 204,739 $ 242,794 $ 139,290 $ 80,328 $ 58,962 $ 1,240,833
Gross profit 134,016 253,255 147,931 137,406 56,218 37,253 18,965 728,826
Operating income (loss) 23,462 154,250 61,745 68,619 ( 15,336 ) 9,121 ( 24,457 ) 292,740
13-Weeks Ended June 26, 2021
Net sales $ 413,201 $ 323,405 $ 180,832 $ 261,790 $ 147,677 $ 86,278 $ 61,399 $ 1,326,905
Gross profit 225,192 208,158 131,934 152,609 62,958 42,261 20,697 780,851
Operating income (loss) 113,733 120,843 51,126 91,091 ( 5,621 ) 16,355 ( 21,976 ) 371,172
26-Weeks Ended June 25, 2022
Net sales $ 492,992 $ 766,519 $ 379,505 $ 496,863 $ 277,617 $ 145,458 $ 132,159 $ 2,413,496
Gross profit 240,205 500,751 275,474 265,987 108,889 68,213 40,676 1,391,306
Operating income (loss) 24,043 303,229 101,871 127,501 ( 35,347 ) 12,953 ( 48,300 ) 521,297
26-Weeks Ended June 26, 2021
Net sales $ 721,326 $ 579,859 $ 354,721 $ 471,163 $ 272,163 $ 148,673 $ 123,490 $ 2,399,232
Gross profit 398,737 379,833 258,116 273,989 111,732 74,225 37,507 1,422,407
Operating income (loss) 184,415 212,854 96,140 153,997 ( 26,575 ) 25,393 ( 51,968 ) 620,831 Net sales to external customers by geographic region were as follows for the 13-week and 26-week periods ended June 25, 2022 and June 26, 2021. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:
13-Weeks Ended 26-Weeks Ended
June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021
Americas $ 646,172 $ 646,393 $ 1,216,807 $ 1,150,085
EMEA 412,550 488,724 810,027 888,232
APAC 182,111 191,788 386,662 360,915
Net sales to external customers $ 1,240,833 $ 1,326,905 $ 2,413,496 $ 2,399,232 |
