Total unit sales increased approximately 15% to 18.6 million units in 2024. The fitness segment saw strong growth in wearables, while outdoor benefited from adventure watch sales. Auto OEM revenue increased due to domain controller shipments.

The increase in marine revenue was primarily driven by the acquisition of JL Audio. This indicates that strategic acquisitions are contributing to growth in specific segments.

The Americas region contributed the largest portion of net sales, with $3,036.083 million in 2024. The Americas region is the largest market for Garmin, but the EMEA and APAC regions are also important.

Total operating expense increased 10% in absolute dollars but decreased 320 basis points as a percent of revenue. This indicates effective cost management relative to revenue growth.

Research and development expense increased 10% in absolute dollars, driven by higher engineering personnel costs. This investment signals a commitment to future product innovation.

The effective tax rate increased to approximately 17% in 2024, primarily due to an increase in the combined Switzerland statutory tax rate. This suggests that management is navigating changes in the tax environment.

The 10-K highlights that Garmin's principal manufacturing facilities for consumer products are located in Taiwan, exposing the company to economic and political risks associated with the relationship between Taiwan and the People's Republic of China.

The company has made significant investments in the auto OEM segment and operating margins associated with these programs will negatively impact consolidated operating margin as auto OEM revenue increases as a percentage of consolidated revenue. If Garmin is unable to generate profits from auto OEM contracts, the company may incur substantial restructuring costs.

The 10-K states that Garmin depends on third-party suppliers and licensors, some of which are sole source, for technology and components used in its products. This reliance creates risks related to supply disruption, pricing, and the ability to source alternative technologies.

The 10-K acknowledges that Garmin operates in highly competitive markets, and competition is expected to increase. Competitors may replicate features, respond rapidly to technology changes, or devote greater resources to product development and marketing.

The 10-K states that if the overall wearable device market declines, or categories of devices within the wearable device market decline significantly, Garmin's business, financial condition or operating results could be materially adversely affected.

Garmin relies on independent dealers and distributors, subjecting the company to risks related to their inventory levels, support for Garmin products, and potential de-emphasis of Garmin products by dealers who also sell competitors' products.

The 10-K mentions that Garmin's flexible production model allows factories to experience relatively low costs of manufacturing. Products manufactured in Taiwan have generally been the highest volume products, and manufacturing labor costs historically have been lower in Taiwan than in other locations.

Garmin believes that the vertical integration of its manufacturing capabilities provides advantages to product cost, quality, and time to market. Garmin's manufacturing resources rapidly and iteratively prototype designs, concepts, products and processes, achieving higher efficiency and resulting in lower cost.

Garmin's automation and advanced production processes provide in-service robustness and consistent reliability standards that enable Garmin to maintain strict process and quality control of the products manufactured, thereby improving the overall quality of our products.

Garmin's product innovations are driven by its strong emphasis on research and development and the close partnership between Garmin's engineering and manufacturing teams. Garmin's products are created by its engineering and development staff.

Garmin's success and ability to compete is dependent in part on its proprietary technology. The company relies on a combination of patent, copyright, trademark and trade secret laws, as well as confidentiality agreements, to establish and protect its proprietary rights.

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.

The Board of Directors approved a share repurchase program on February 16, 2024, authorizing the company to purchase up to $300 million of its common shares. This indicates management's belief that shares are undervalued and represents a return of capital to shareholders.

The company has lease arrangements for certain real estate properties, vehicles, and equipment. Leased properties are typically used for office space, distribution, and retail. As of December 28, 2024, the Company had fixed lease payment obligations of $195.4 million.

As of December 28, 2024, the company had approximately $3.7 billion of cash, cash equivalents and marketable securities. This indicates a strong liquidity position and the ability to deploy capital for strategic initiatives.

Garmin has a global environmental policy and is committed to protecting the environment throughout various aspects of our business. Garmin has implemented multiple environmental management systems and achieved certification to the ISO 14001 standard for Environmental Management at facilities in the U.S., U.K., Taiwan, Poland, and China.

Garmin strives to reduce our environmental impact by increasing our environmental sustainability efforts. Garmin is committed to reducing greenhouse gas emissions through direct carbon emissions reduction and elimination strategies.

Successful execution of our strategy is dependent on attracting, developing, and retaining key employees and members of our management team. To facilitate talent attraction and retention, we provide opportunities for our employees to grow and develop in their careers, supported by generous compensation and benefits, and through programs that build connections between our employees and their communities.

The 10-K states that revenue and profits depend significantly on general economic conditions and the demand for products in the markets in which Garmin competes. Adverse economic conditions, including higher interest rates, inflation, higher fuel prices, higher unemployment, or recession, could adversely affect demand for the Company's products and services.

The 10-K states that Restrictions on international trade, such as sanctions, tariffs, duties and other governmental controls on imports or exports of goods, could adversely affect our business.

The 10-K states that Widespread public health emergencies, including epidemics or pandemics, such as the COVID-19 pandemic, have significantly affected, and may in the future significantly affect, our business due to their impact on the economy and the demand for our products and services, disruptions to our operations, supply chain and sales and distribution channels, and government-imposed restrictions.