10-K 0001193125-26-056028 (2026-02-18) vs 10-K 0000950170-25-022760 (2025-02-19)
| Section | Compared text | Words now | Changed |
| Risk Factors | Item 1A | 9,300 |
15.2% |
| MD&A | Item 7 | 3,628 |
16.1% |
| Legal Proceedings | Item 3, via Note 7 – Commitments and Contingencies | 301 |
3.7% |
| Accounting Policies | Item 8, Note 1 – Summary of Significant Accounting Policies | 5,105 |
10.9% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Accounting Policies 192 words changed in this paragraph; it is 33% similar to last year's version.
The Company allocates revenue to all performance obligations associated with tangible products containing separately identifiable ongoing services based on the respective performance obligations’ relative standalone selling prices (SSP), with the amounts allocated to ongoing services deferred and recognized over a period of time. These ongoing services primarily consist of the Company’s contractual promises to provide personal navigation device (PND) users with map updates and server-based traffic services. In addition, the Company provides map update services (map care) over a contractual period in certain hardware and software contracts with automotive original equipment manufacturers (OEMs). The Company has determined that directly observable prices do not exist for certain map updates, map care, or server-based traffic, as stand-alone and unbundled unit sales do not occur on more than a limited basis. Therefore, the Company uses the expected cost plus a margin as the primary indicator to calculate relative SSP of certain map updates, map care, and traffic performance obligations. The revenue and associated costs allocated to map updates, map care, and server-based traffic services are deferred and recognized ratably over the contractual service period or estimated life of the products. Additionally, the Company has offered certain other products and services with ongoing performance obligations for which the associated revenue is recognized over the contractual service period (typically ranging from 1 month to 3 years), including aviation database and other service subscriptions, incremental navigation and communication service subscriptions, mobile applications, and extended warranties. product.
Source: Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0001193125-26-056028 vs Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0000950170-25-022760
Risk Factors 156 words changed in this paragraph; it is 56% similar to last year's version.
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 availability of proprietary and confidential information. Actual or anticipated attacks and risks have caused, and are expected to continue to cause, us to incur increasing costs, including costs to deploy additional personnel and protection technologies, to conduct additional employee training, and to engage third party security experts and consultants. A breach of our security systems and procedures or those of others in our global supply chain could result in significant data losses or theft of our intellectual property, confidential and proprietary information, or that of our business partners, as well as our users’ or employees' personal information, which could compromise our competitive position, reputation, operating results, and financial condition. Also, if we fail to reasonably maintain the security Such events could materially adversely affect our business, financial condition and results of our intellectual property, confidential and proprietary information, or that of our business partners, or the personal information of our users or employees, we may be subject to private litigation, government investigations, regulatory proceedings, enforcement actions, and cause us to incur potentially significant liability, damages, or remediation costs. Although we maintain cyber insurance coverage that, subject to policy terms and conditions and significant self-insured retentions, is designed to address certain aspects of cyber risks, such insurance coverage may be insufficient to cover all losses or all types of claims that may arise. operations.
Source: Item 1A, 10-K 0001193125-26-056028 vs Item 1A, 10-K 0000950170-25-022760
MD&A 141 words changed in this paragraph; it is 38% similar to last year's version.
Total operating income expense increased 46% 13% in absolute dollars and increased 440 basis points was relatively flat as a percent of revenue in fiscal year 2024 2025 compared to fiscal year 2023. The increase in operating income 2024. Operating expense, as a percent of revenue was segment net sales, decreased in the fitness and aviation segments by 220 basis points and 170 basis points, respectively, when compared to the year-ago period due to increased sales, increased gross margin sales and greater leverage of expenses. Operating expense, as a percent of revenue, and lower segment net sales, increased in the outdoor segment by 140 basis points over the year-ago period, as the year-over-year increase of operating expenses expense was greater than that of net sales. Operating expense, as a percent of revenue, as described above. The improved performance segment net sales, was relatively flat in fitness, outdoor, marine, the marine and auto OEM was partially offset by a decrease in aviation. Auto OEM experienced an operating loss in fiscal year 2024, and we expect auto OEM segments when compared to experience an operating loss in 2025. the year-ago period.
Source: Item 7, 10-K 0001193125-26-056028 vs Item 7, 10-K 0000950170-25-022760
Legal Proceedings 20 words changed in this paragraph; it is 72% similar to last year's version.
Certain cash balances are held as collateral in relation to bank guarantees. The total amount of This restricted cash was is reported within other noncurrent assets on the Company’s consolidated balance sheets and totaled $714 and $685 and $704 on December 28, 2024 27, 2025 and December 30, 2023, 28, 2024, respectively.
Source: Item 3, via Note 7 – Commitments and Contingencies, 10-K 0001193125-26-056028 vs Item 3, via Note 7 – Commitments and Contingencies, 10-K 0000950170-25-022760
Every change, by type
Sentences and paragraphs of GRMN's Risk Factors and MD&A, 10-K 2026-02-18 against 10-K 2025-02-19.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
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 in Part II, Item 8, “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
Many of our products utilize Global Positioning System (GPS) and other global navigation satellite systems (GNSS), which are critical to their functionality. There are risks related to our reliance on GPS and GNSS that could materially adversely affect our business, financial condition and results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
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 results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
Certain of the goods we import are subject to tariffs and duties imposed by customs authorities of the jurisdictions into which they are imported. We manufacture our products in, and source goods from, multiple jurisdictions, such as Taiwan and China among others. New or increased tariffs, duties, or other trade restrictions imposed on products, goods, or components we import into the United States or other countries could materially adversely affect our business, financial condition and results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
As a result of recent U.S. tax legislation, ownership attribution and income inclusion rules have changed over time as described below.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
On July 4, 2025, the U.S. enacted new tax legislation which changed the CFC attribution rules. For tax years beginning after December 31, 2025, the CFC determination is made daily based on whether the 10% U.S. Shareholders own cumulatively more than fifty percent of the voting power or value of the Company, and only U.S. persons that own ten percent or more of the voting power of the Company’s shares will qualify as 10% U.S. Shareholders.
Read it in 10-K 2026-02-18 at sec.gov ↗
RemovedRisk Factors
The U.S. and other countries may announce new or changed restrictions with little advance notice, which can create uncertainty and result in other countries implementing retaliatory restrictions. The imposition of new or enhanced sanctions, tariffs or duties, or any selective or inconsistent application relating to any new or enhanced sanctions, tariffs or duties, could have a substantial adverse effect on our business, results of operations, and financial condition.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
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 with respect to any single 10% U.S. shareholder. This may be the result without regard to whether 10% U.S. shareholders together own, directly or indirectly, more than fifty percent of the voting power or value of the Company as was the case under prior rules.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
From time to time, the Company may elect to employ antidilutive measures such as a share buyback program. These measures could inadvertently create additional 10% U.S. shareholders and thus trigger adverse tax consequences for those shareholders as described above. We urge shareholders to consult their individual tax advisers for advice regarding the 2017 Act revisions to the U.S. federal income tax law applicable to owners of CFCs given the current uncertainty regarding their scope of applicability.
Read it in 10-K 2025-02-19 at sec.gov ↗
RewordedRisk Factors
The United States Tax Cuts and Jobs Act (the “2017 Act”) signed on December 22, 2017 may have changed the consequences to U.S. shareholders that own, or as a result of attribution rules are considered to own, as a result of the attribution rules, ten percent or more of the voting power or value of the stock of a non-U.S. corporation (a 10% “10% U.S. shareholder) under the U.S. federal income tax law applicable to owners of U.S. controlled foreign corporations (“CFCs”).
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
If Supply chain disruptions, including suppliers are being unable to meet our demand for components on a timely basis or if we are unable the inability to obtain components from an alternative source, sources, or if the price of alternative components is prohibitive, component cost increases could affect our ability to maintain timely and cost-effective production of our products would be seriously harmed. products, which could materially adversely affect our business, financial condition and results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
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 materially and adversely affect the utility and reliability of our products products, which could materially adversely affect our business, financial condition and could have significant negative impacts on our business and our customers. results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Our products and services may be affected by design and manufacturing defects that These events, or others related to inaccurately anticipating demand, could materially adversely affect our business, financial condition, condition and results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Some of our products and services also operate using utilize non-navigation satellite communications systems networks, such as satellite networks utilized for communication, weather, and mapping content, operated by third parties, such as Iridium Communications Inc. and its subsidiaries. Skylo.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
If we fail to adjust our product and service offerings to respond to new opportunities driven by changes in regulation and/or consumer preferences, it our business, financial condition and results of operations could have an adverse effect on our financial results. be materially adversely affected.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
For example, the 2017 Act added Section 951A to the Internal Revenue Code, which requires a 10% U.S. shareholder of a CFC to include in income its pro-rata share of the global intangible low-taxed income (GILTI) of the CFC.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
For example, the 2017 Act added Section 951A to the Internal Revenue Code, which requires a 10% U.S. shareholder Shareholder of a CFC to include in income its pro-rata share of the global intangible low-taxed income (GILTI) of the CFC.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Therefore, the Company’s our business continuity and disaster recovery planning, or those of others in our global supply chain, may not be able to sufficiently mitigate all threats. threats and our business, financial condition and results of operations could be materially adversely affected.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The overall shortage Shortages in qualified workforce personnel has may lead to increased and in the future may continue to increase our compensation costs in order for us to recruit and retain such personnel.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Accordingly, these shareholders, if acting together or with other shareholders owning a significant amount of our outstanding shares, may be able to determine significantly influence the outcome of corporate actions requiring shareholder approval, such as mergers and acquisitions and shareholder proposals.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
If the overall wearable device market declines, or categories of devices within the wearable device market decline significantly, or if we lose significant market share in the wearable device market, our business, financial condition or operating and results of operations could be materially adversely affected.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
In addition, some Some of our original equipment manufacturer (OEM) customers may develop in-house equipment and components that they currently purchase from us.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
A material adverse impact on our consolidated financial statements could occur for the period in which the effect of an unfavorable final outcome becomes probable and reasonably estimable or in which we otherwise incur a loss in excess of our reserves and could harm materially adversely affect our business, financial condition and results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
A delay in receiving required certifications for new products, or enhancements to Garmin’s products, or losing certification for Garmin’s existing products could materially adversely affect our business, financial condition and results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
The Company recorded income tax expense of $350.6 million, an effective tax rate of 17.4%, for the fiscal year ended December 27, 2025. The Company recorded income tax expense of $284.0 million, an effective tax rate of 16.7%, for the fiscal year ended December 28, 2024. The increase in effective tax rate when compared to the year-ago period was primarily driven by the U.S. tax legislation enacted in 2025, which, among other things, changed capitalization requirements of certain research and development costs, resulting in a decrease of certain U.S. tax deductions and credits. Certain provisions of the U.S. tax legislation enacted in 2025 become effective in 2026, which the Company anticipates will increase certain U.S. tax deductions and result in a lower effective tax rate in 2026 as compared to 2025.
Read it in 10-K 2026-02-18 at sec.gov ↗
RemovedMD&A
The Company recorded income tax expense of $284.0 million for the fiscal year ended December 28, 2024. The Company recorded income tax benefit of $89.3 million for the fiscal year ended December 30, 2023, which included income tax benefit of $181.4 million recognized by the Company in the fourth quarter of 2023 related to the revaluation of Switzerland deferred tax assets and income tax benefit of $12.1 million recognized in the fourth quarter of 2023 related to auto OEM manufacturing tax incentives in Poland.
Read it in 10-K 2025-02-19 at sec.gov ↗
RewordedMD&A
The average interest rate returns return on cash and investments during the 52-weeks ended December 27, 2025 was 3.3%, and remained relatively flat compared to 3.3% during the 52-weeks ended December 28, 2024 and December 30, 2023 were 3.3% and 2.7%, respectively. 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
This decrease increase was primarily due to lower higher purchases of treasury shares under the share repurchase plan plan, higher cash dividend payments, and an increase in the purchase of treasury shares related to equity awards in fiscal 2024 2025 compared to fiscal 2023. 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
The increase was primarily due to an increase in net cash used for acquisitions and an increase in purchases of marketable securities property and equipment in fiscal 2024 2025 compared to net redemptions of marketable securities in fiscal 2023. 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Primarily as a result Due to the timing of these provisions, tax payments, we expect net cash outlays for income taxes in fiscal 2026 to again exceed income tax expense in fiscal 2026, and to increase as compared to fiscal 2025.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Dollar weakening at times during 14.1% against the year Swiss Franc and 4.6% against the Taiwan Dollar, resulting in a net loss losses of $5.1 million. $36.9 million and $16.8 million, respectively.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Dollar weakened 12.3% 12.9% against the Euro and 14.3% against the Polish Zloty and 3.1% against the Euro, Zloty, resulting in gains of $24.4 $49.2 million and $8.8 $8.1 million, respectively, partially offset by the U.S.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
The improved operating income dollar performance in fitness, outdoor, marine, aviation, and auto OEM marine was partially offset by a decrease decreases in aviation. outdoor and auto OEM.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Refer to the Revenue Recognition discussion in Note 1 – Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements. Statements for additional information regarding our revenue recognition policies.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Research and development 16% 16% 17 17% Selling, general and administrative 17% 18% 19 19% Total operating expenses 33% 33% 37 37% Operating income 26% 25% 21 21% Other income (expense), net 2% 2% 2 1% Income before income taxes 28% 27% 23 22% Income tax provision (benefit) 5% 5% (2 2% Net income 23% 22% 25 20%
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Total unit sales increased approximately 15% 11% to 20.7 million units in 2025 from 18.6 million units in 2024 from 16.2 million units in 2023. 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Cash used in investing activities totaled $645.2 million for fiscal 2025, compared to $393.3 million for fiscal 2024, compared to $333.0 million for fiscal 2023. 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Cash used in financing activities totaled $844.1 million for fiscal 2025, compared to $626.9 million for fiscal 2024, compared to $636.5 million for fiscal 2023. 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesMD&A
Raw material costs materials are our most significant component of cost of goods sold.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesMD&A
Our manufacturing labor costs historically have been lower in Taiwan than in most other locations.
Read it in 10-K 2026-02-18 at sec.gov ↗