Garmin Reports Fourth Quarter Results with Increased Global Market Share and Significant Inventory Reduction

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)
       
13-Weeks Ended

52-Weeks Ended

December 27, December 29, December 27, December 29,
2008   2007 2008   2007
 
Net cash provided by operating activities $ 349,461 $ 126,183 $ 862,164 $ 682,088
Less: purchases of property and equipment   ($9,143 )     ($27,885 )   ($119,623 )     ($156,778 )
Free Cash Flow $ 340,318     $ 98,298   $ 742,541     $ 525,310  
 

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