GARMIN LTD Leases Disclosure
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 |
|
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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 19, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.