approved by the Board of Directors on April 21, 2004 and expired on April 30, 2006.
Sources and uses in financing activities during 2005 related primarily to uses for the payment of a dividend ($54.0 million) and stock repurchase ($26.7 million), and a source of cash from the issuance of common shares related to the exercise of employee stock options, the related tax benefit, and the employee stock purchase plan ($9.7 million).
Cash dividends paid to shareholders were $162.5 million, $107.9 million, and $54.0 million during fiscal years 2007, 2006, and 2005, respectively.
We believe that our existing cash balances and cash flow from operations will be sufficient to meet our projected capital expenditures, working capital and other cash requirements at least through the end of fiscal 2010.
Contractual Obligations and Commercial Commitments Future commitments of Garmin, as of December 29, 2007, aggregated by type of contractual obligation, are:
## Table 0 ##
Operating leases describes lease obligations associated with Garmin facilities located in the U. S. , Taiwan, the U. K. , and Canada.
Purchase obligations are the aggregate of those purchase orders that were outstanding on December 29, 2007; these obligations are created and then paid off within 3 months during the normal course of our manufacturing business.
Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements.
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk Market Sensitivity We have market risk primarily in connection with the pricing of our products and services and the purchase of raw materials.
Product pricing and raw materials costs are both significantly influenced by semiconductor market conditions.
Historically, during cyclical industry downturns, we have been able to offset pricing declines for our products through a combination of improved product mix and success in obtaining price reductions in raw materials costs.
Inflation We do not believe that inflation has had a material effect on our business, financial condition or results of operations.
If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases.
Our inability or failure to do so could adversely affect our business, financial condition and results of operations.
Foreign Currency Exchange Rate Risk The operation of Garmin’s subsidiaries in international markets results in exposure to movements in currency exchange rates.
We generally have not been significantly affected by foreign exchange fluctuations
ITEM 6 SELECTED FINANCIAL DATA The following table summarizes certain selected consolidated financial data for, and as of the end of, each of the fiscal years in the five-year period ended June 30, 2008.
The data set forth below should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations and our Consolidated Financial Statements and related Notes included elsewhere in this Report.
The consolidated statements of operations data for the years ended June 30, 2008, 2007 and 2006 and the balance sheet data as of June 30, 2008 and 2007 are derived from our audited consolidated financial statements included elsewhere in this Report.
The consolidated statements of operations data for the years ended June 30, 2005 and 2004 and the balance sheet data as of June 30, 2006, 2005 and 2004 are derived from our audited consolidated financial statements not included herein.
Historical results are not necessarily indicative of the results to be expected in the future, and the results for the years presented should not be considered indicative of our future results of operations.
## Table 1 ##
Stock-Based Compensation Costs We have granted stock options to personnel, including officers and directors, under our 2006 Incentive Award Plan, as amended (the “2006 Plan”).
These options have expiration dates of seven years from the date of grant and vest over four years.
We granted these options with the exercise price equal to the market value as determined at the date of grant.
We have also offered to our personnel, including officers and directors, the right to purchase shares of our common stock at a discount under our employee stock purchase plan (“ESPP”).
As of July 1, 2005, we adopted SFAS 123(R) using the modified prospective method, which requires measurement of compensation expense of all stock-based awards at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest.
Under this method, the provisions of SFAS 123(R) apply to all awards granted or modified after the date of adoption.
In addition, the unrecognized expense of awards not yet vested at the date of adoption, determined under the original provisions of SFAS No.123 shall be recognized in net income in the periods after adoption.
The fair value of stock options is determined using the Black-Scholes valuation model.
Such value is recognized as expense over the service period, using the gradedattribution method for stock-based awards granted prior to July 1, 2005 and the straight-line method for stock-based awards granted after July 1, 2005.
The fair value of stock options granted under our stock option plans and purchase rights granted under our ESPP is estimated on the date of the grant using the Black-Scholes option-pricing model, assuming no dividends and the following assumptions:
## Table 2 ##
Expected volatilities are based on a combination of historical volatilities of our stock and the implied volatilities from tradeable options of our stock corresponding to their expected term.
We use a combination of the historic and implied volatilities as the additional use of the implied volatilities are more representative of our future stock price trends.
The expected life represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting schedules and our historical exercise patterns.
The risk-free rate is based on the U. S.  Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option.
Tax Expense Our income tax rate is governed by the laws of the regions in which our income is recognized.
To date, a substantial portion of our income has been subject to income tax in Australia where the statutory rate was 30% in fiscal years 2008, 2007 and 2006.
During fiscal years 2008, 2007 and 2006, our consolidated effective tax rate has fluctuated between approximately 30% and approximately 34%.
These fluctuations have resulted from, and future effective tax rates will depend upon, numerous

<table><tr><td></td><td>Payments due by period</td></tr><tr><td>Contractual Obligations</td><td>Total</td><td>Less than 1 year</td><td>1-3 years</td><td>3-5 years</td><td>More than 5 years</td></tr><tr><td>Operating Leases</td><td>$43,438</td><td>$6,581</td><td>$11,582</td><td>$9,263</td><td>$16,012</td></tr><tr><td>Purchase Obligations</td><td>5,078</td><td>422</td><td>2,251</td><td>2,405</td><td>0</td></tr><tr><td>Total</td><td>$48,516</td><td>$7,003</td><td>$13,833</td><td>$11,668</td><td>$16,012</td></tr></table>
<table><tr><td> Consolidated Statement of Income Data:</td><td colspan="5">Years Ended June 30</td></tr><tr><td> (In thousands, except per share data)</td><td>2008</td><td>2007</td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Net revenues</td><td>$835,397</td><td>$716,332</td><td>$606,996</td><td>$425,505</td><td>$339,338</td></tr><tr><td>Cost of sales</td><td>338,544</td><td>272,140</td><td>230,101</td><td>150,645</td><td>122,602</td></tr><tr><td>Product recall expenses</td><td>3,103</td><td>59,700</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Gross profit</td><td>493,750</td><td>384,492</td><td>376,895</td><td>274,860</td><td>216,736</td></tr><tr><td>Selling, general and administrative expenses</td><td>278,087</td><td>237,326</td><td>200,168</td><td>135,703</td><td>104,706</td></tr><tr><td>Research and development expenses</td><td>60,524</td><td>50,106</td><td>37,216</td><td>30,014</td><td>26,169</td></tr><tr><td>Donations to research foundations</td><td>2,000</td><td>-</td><td>760</td><td>500</td><td>500</td></tr><tr><td>In-process research and development charge</td><td>-</td><td>-</td><td>-</td><td>5,268</td><td>-</td></tr><tr><td>Amortization of acquired intangible assets</td><td>7,791</td><td>6,897</td><td>6,327</td><td>870</td><td>-</td></tr><tr><td>Restructuring expenses</td><td>2,378</td><td>-</td><td>1,124</td><td>5,152</td><td>-</td></tr><tr><td>Total operating expenses</td><td>350,780</td><td>294,329</td><td>245,595</td><td>177,507</td><td>131,375</td></tr><tr><td>Income from operations</td><td>142,970</td><td>90,163</td><td>131,300</td><td>97,353</td><td>85,361</td></tr><tr><td>Other income (expenses):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interest income (expense), net</td><td>10,058</td><td>6,477</td><td>1,320</td><td>-808</td><td>-1,683</td></tr><tr><td>Other, net</td><td>4,827</td><td>1,333</td><td>774</td><td>81</td><td>990</td></tr><tr><td>Total other income (expenses)</td><td>14,885</td><td>7,810</td><td>2,094</td><td>-727</td><td>-693</td></tr><tr><td>Income before income taxes</td><td>157,855</td><td>97,973</td><td>133,394</td><td>96,626</td><td>84,668</td></tr><tr><td>Income taxes</td><td>-47,552</td><td>-31,671</td><td>-45,183</td><td>-31,841</td><td>-27,384</td></tr><tr><td>Net income</td><td>$110,303</td><td>$66,302</td><td>$88,211</td><td>$64,785</td><td>$57,284</td></tr><tr><td>Basic earnings per share</td><td>$1.43</td><td>$0.86</td><td>$1.22</td><td>$0.94</td><td>$0.85</td></tr><tr><td>Diluted earnings per share</td><td>$1.40</td><td>$0.85</td><td>$1.16</td><td>$0.91</td><td>$0.82</td></tr><tr><td>Weighted average:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic shares outstanding</td><td>77,378</td><td>76,709</td><td>72,307</td><td>68,643</td><td>67,389</td></tr><tr><td>Diluted shares outstanding</td><td>78,712</td><td>78,253</td><td>77,162</td><td>74,942</td><td>70,251</td></tr></table>
<table><tr><td></td><td colspan="3"> Years ended June 30</td></tr><tr><td></td><td> 2008</td><td> 2007</td><td> 2006</td></tr><tr><td>Stock Options:</td><td></td><td></td><td></td></tr><tr><td>Weighted average grant date fair value</td><td>$12.87</td><td>$14.53</td><td>$12.75</td></tr><tr><td>Weighted average risk-free interest rate</td><td>2.6-4.6%</td><td>4.3-5.1%</td><td>3.9-4.5%</td></tr><tr><td>Dividend yield</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Expected option life in years</td><td>4.0-4.8</td><td>4.0-5.2</td><td>3.9-5.2</td></tr><tr><td>Volatility</td><td>27-28%</td><td>26-30%</td><td>28-30%</td></tr><tr><td>ESPP Purchase rights:</td><td></td><td></td><td></td></tr><tr><td>Weighted average risk-free interest rate</td><td>1.7-5.0%</td><td>4.9-5.1%</td><td>3.2-4.9%</td></tr><tr><td>Dividend yield</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Expected option life</td><td>6 months</td><td>6 months</td><td>6 months</td></tr><tr><td>Volatility</td><td>23-33%</td><td>30-41%</td><td>29-41%</td></tr></table>

Question: In what year is Gross profit greater than 1?
Answer: 2008 2007 2006 2005 2004