Garmin Reports Fourth Quarter Results Highlighting EPS Growth and Revenue Growth in All Segments

Free cash flow

Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow less capital expenditures for property and equipment.

The following table contains a reconciliation of GAAP net cash provided by operating activities to free cash flow.

Garmin Ltd. And Subsidiaries
Free Cash Flow
(in thousands)
                         

14-Weeks Ended

      13-Weeks Ended 53-Weeks Ended       52-Weeks Ended
December 31, December 25, December 31, December 25,
2011       2010 2011       2010
 
Net cash provided by operating activities $224,858 $184,422 $822,334 $770,637
Less: purchases of property and equipment ($11,843 )       ($9,249 ) ($38,366 )       ($32,232 )
Free Cash Flow $213,015         $175,173   $783,968         $738,405  
 

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