Garmin (GRMN) Risk Factor Changes

The United States Tax Cuts and Jobs Act (the "2017 Act"), signed on December 22, 2017, repealed Internal Revenue Code Section 958(b)(4) and may result in classification of certain of our foreign subsidiaries as CFCs w…

As of December 27, 2025, we had $2,807 million of unappropriated capital contribution reserves available from which we may make dividend payments.

The rights of our shareholders are governed by Swiss law and Garmin Ltd.’s articles of association.

As of December 27, 2025, members of our Board of Directors and our executive officers, together with their respective immediate family members and entities that may be deemed affiliates of or related to such persons o…

In addition, from time to time the stock market in general and the markets for shares of technology companies in particular, experience extreme price fluctuations which have often been unrelated to the operating perfo…

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The market price of our shares has been, and may continue to be, highly volatile.

Our operating results are difficult to predict and our future operating results may fluctuate significantly.

Our operating results are subject to fluctuations and seasonality.

Gross margins in some of our segments are volatile and could decline in the future due to competitive price reductions that are not fully offset by material cost reductions.

Regulatory authorities and legislative bodies around the world, including in the United States, have enacted or are considering enacting a number of legislative and regulatory proposals concerning data privacy and pro…

We collect, store, process, and use personal information and other user data.

Compliance with these laws and regulations is onerous and expensive.

As a business that operates worldwide, we are subject to complex and changing global laws and regulations, which exposes us to potential liabilities, increased costs and other adverse effects on our business.

The value of our products relies substantially on our technical innovation in fields in which there are many patent filings.

Global taxing standards continue to evolve as a result of the Organization for Economic Co-Operation and Development (OECD) recommendations aimed at preventing perceived base erosion and profit shifting (BEPS) by mult…

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

Economic and geopolitical conditions and uncertainty could adversely affect our revenue and profits.

Changes to trade regulations, including trade restrictions, such as tariffs, duties, and sanctions could significantly harm our results of operations.

We have experienced periods of annual growth in sales and profits in our outdoor and fitness segments, which have benefited from increased sales of wearable devices.

This or any other ITU or national reallocation of radio frequency spectrum, including frequency band segmentation or sharing of spectrum, or other modifications of the permitted uses of relevant frequency bands, may a…

Some of our products and services also utilize non-navigation satellite networks, such as satellite networks utilized for communication, weather, and mapping content, operated by third parties, such as Iridium Communi…

Some of our products also use satellite signals from Russia’s GLONASS, the European Union Galileo system, and the Chinese BDS.

Some of our products also use signals from Satellite Based Augmentation Systems (SBAS) that augment GPS, such as the U.S.

Products and services that rely on the Global Navigation Satellite System (GNSS) are vulnerable to external interference, such as jamming and spoofing.

GPS is operated by the U.S.

We continually 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 pro…

Our large customers may also seek to leverage their position to improve their profitability through increased promotional programs or other measures, which could have a negative impact on our gross margin.

Many of our dealers and distributors also sell products offered by our competitors.

Our sales could be negatively impacted if dealers and distributors attempt to reduce their levels of inventory or if they do not maintain sufficient levels to meet customer demand.

Because it is uncertain what laws and regulations will be enacted, we cannot predict the potential impact of such laws and regulations on our future consolidated financial condition, results of operations or cash flows.

If climate change has impacts on natural disasters, the regulatory environment, or societal pressures as discussed above, it could result in a change in demand for certain products in markets that we serve, including…

Climate change can also pose a risk to our business due to related regulatory and legislative measures, requirements of our OEM customers or other strategic partners, and evolving societal pressures, including pressur…

Undiscovered vulnerabilities in our products could expose them to hackers or other unscrupulous third parties who develop and deploy viruses and other malicious software programs that could attack our products.

If our products malfunction or contain errors or defects, we could also be subject to significant liability for personal injury and property damage and, under certain circumstances, could be subject to a judgment for…

Our products and services, or those of our OEM customers in which our products are installed, could be affected by design and manufacturing defects.

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We currently do not have employment agreements with any of our key executive officers.

Our future success depends significantly on the continued contribution of our key executive, engineering, sales, marketing, manufacturing, and administrative personnel.

We have in the past experienced, and expect to continue to experience, malicious attacks and other attempts to gain unauthorized access to our systems that seek to compromise the confidentiality, integrity or availabi…

We have technology and processes in place designed to detect and respond to such failures and disruptions.

Our company, our global supply chain, and our global distribution network have experienced and are expected to continue to be exposed to information technology system failures and network disruptions including those c…

Our business has been and is expected to continue to be impacted by information technology system failures and network disruptions.

Our products are also dependent on certain licensed technology and content.

We have experienced and expect to in the future experience shortages of certain components, as well as delays in procuring certain components.

We have been awarded several tier-one and tier-two auto OEM supplier contracts.

We have made and may continue making significant investments in the auto OEM segment, the associated cost of which may negatively impact total company profits.

There are many factors that can affect new product offerings, product features, and timeliness to market.

A significant portion of our revenue has been, and we expect in the future will continue to be, derived from sales of newly introduced products.

If we are not successful in the continued development, timely manufacture, and introduction of new products or product categories, overall demand for our products could decrease to the extent that total sales and prof…

From time to time, the Company may elect to employ antidilutive measures such as a share buyback program.

The 2017 Act repealed Internal Revenue Code Section 958(b)(4), which, unless clarified in future regulations or other guidance, may result in classification of certain of the Company’s foreign subsidiaries as CFCs wit…

The United States Tax Cuts and Jobs Act (the “2017 Act”) signed on December 22, 2017 may have changed the consequences to U.S.

The U.S.

Restrictions on international trade, such as sanctions, tariffs, duties and other governmental controls on imports or exports of goods, could adversely affect our business.

Many of our products rely on the Global Positioning System and other satellite systems.

Such failures or disruptions can materially adversely affect our business, reputation, results of operations, and financial condition through, among other things, a disruption of internal operations, including order p…

On July 4, 2025, the U.S.

As a result of recent U.S.

U.S.

From time to time, we receive communications alleging infringement of patents, trademarks or other intellectual property rights and we have been, and currently are, a defendant in lawsuits alleging patent infringement.

Additionally, some tariffs and duties are based on the classifications of the goods imported, which are routinely subject to review by customs authorities.

Certain of the goods we import are subject to tariffs and duties imposed by customs authorities of the jurisdictions into which they are imported.

The rapidly evolving international trade environment has created economic and operational uncertainties that could result in outcomes that could materially adversely affect our business, financial condition and result…

Many of our products utilize Global Positioning System (GPS) and other global navigation satellite systems (GNSS), which are critical to their functionality.

Many of our products rely on satellite systems and networks.

Because we sell many 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.

These events, or others related to inaccurately anticipating demand, could materially adversely affect our business, financial condition and results of operations.

Also, if we fail to reasonably maintain the security of our intellectual property, confidential and proprietary information, or that of our business partners, or the personal information of our users or employees, we…

This section should be read in conjunction with Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and accompanying notes…