Comparison of Fiscal Years Ended December 30, 2006 and December 31, 2005 Net Sales
## Table 0 ##
The increase in total net sales during fiscal 2006 was primarily due to the introduction of over 70 new products and overall demand for our automotive and outdoor/fitness products.
Total units sold increased 78% to 5,400,000 in 2006 from 3,028,000 in 2005.
In general, management believes that continuous innovation and the introduction of new products are essential for future revenue growth.
Garmin’s revenues are normally seasonal, with the fiscal second and fourth quarter revenues being meaningfully higher than the first and third fiscal quarters.
In 2006 revenues followed this typical seasonal pattern, with increases each quarter over the prior year’s quarter due to the impact of new product releases across all product lines.
The revenue increase in the second quarter was primarily attributable to sell-in of popular new portable automobile navigation and outdoor/fitness products and Father’s Day/graduation purchases.
The revenue increase in the fourth quarter was primarily attributable to late summer new product releases and sales associated with the traditional holiday selling season.
Revenues can also be impacted in any given quarter by the timing of new product introductions.
The increase in net sales to consumers was primarily due to the introduction of many new automotive, outdoor/fitness, and marine products and overall demand for our automotive and outdoor/fitness products.
It is management’s belief that the continued demand for the Company’s automotive products is due to overall increased consumer awareness of the capabilities and applications of GPS, particularly as those capabilities pertain to automobile navigation.
Additionally, the expansion of the GPS market in general, as well as enhanced feature sets in our products specifically, have added to our growth.
The increase in aviation sales for fiscal 2006 was primarily due to increased sales from panel mount products sold into the OEM (original equipment manufacturers) and retrofit markets.
Sales of the G1000 integrated glass cockpit were the primary reason for increased OEM sales in 2006.
While Temporary Flight Restrictions (TFR's) continue to impact general aviation, the flying community is adapting to these changes and returning to the skies in greater numbers.
Should the Federal Aviation Administration (FAA) impose more restrictions, or elect to shutdown U. S.  airspace in the future, these factors could have a material adverse effect on our business.
Gross Profit
## Table 1 ##
The increase in gross profit dollars was primarily attributable to the introduction of over 70 new products and strong demand for our automotive and outdoor/fitness products.
The reduction in gross margin percentage was primarily due to the strong growth experienced in our lower-margin automotive/mobile product line, offset to some extent by strong gross margins in our other three segments.
Notably gross margin in our automotive/mobile segment did not fall as much as anticipated due to better than anticipated raw material cost reductions, volume discounts on certain components, less price competition than anticipated, and new “premium” feature-rich products with higher selling prices and margins.
Management believes that the trend to lower gross margin percentages will continue in the future as net sales of automotive products increase at a faster rate than the other business segments.
The decline in aviation gross margin was primarily due to a shift in product mix within our OEM and retrofit products and the delay of some anticipated OEM and retrofit products.
## Table 2 ##
Other income (expense) principally consists of interest income, interest expense and foreign currency exchange gains and losses.
Other income (expense) was higher in fiscal 2006 relative to fiscal 2005, with the majority of this difference caused by increased interest income in 2006.
Interest income for fiscal 2006 increased due to higher interest rates and larger cash and marketable securities balances during the year, increasing the returns on the Company’s cash and cash equivalents.
During fiscal 2006, the Company experienced foreign currency exchange gains of $0.6 million, although the U. S.  Dollar weakened slightly versus the Taiwan Dollar and British Pound ($32.60 TD/USD and $0.51 GBP/USD) relative to the end of fiscal 2005 ($32.84 TD/USD and $0.58 GBP/USD).
During fiscal 2005, the Company experienced foreign currency exchange gains of $15.3 million, as the U. S.  Dollar strengthened versus the Taiwan Dollar and British Pound ($32.84 TD/USD and $0.58 GBP/USD) relative to the end of fiscal 2004 (32.19 TD/USD and $0.52 GBP/USD).
Income Tax Provision Income tax expense increased by $19.0 million, to $80.4, for fiscal year 2006 from $61.4 million for fiscal year 2005, due to our higher taxable income.
The effective tax rate was 13.5% for fiscal 2006 versus 16.5% for fiscal 2005.
The decrease in tax rate is due to additional tax benefits received from Taiwan as a result of our continued capital investment in our manufacturing facilities in Taiwan, tax credits resulting from our decision to repatriate certain of our Taiwan earnings to our parent company, and the increased contribution to our income from lower tax jurisdictions during 2006 relative to 2005.
This lower effective tax rate resulted in a decrease in the ratio of income tax as a percentage of revenue of approximately 1.4% from fiscal 2005 to fiscal 2006.
Net Income As a result of the various factors noted above, net income increased 65% to $514.1 million for fiscal year 2006 compared to $311.2 million for fiscal year 2005.
Comparison of Fiscal Years Ended December 31, 2005 and December 25, 2004 Net Sales
## Table 3 ##
The increase in total net sales during fiscal 2005 was primarily due to the introduction of over 50 new products and overall demand for our automotive and aviation products.
Total units sold increased 31% to 3,028,000 in 2005 from 2,306,000 in 2004.
In general, management believes that continuous innovation and the introduction of new products are essential for future revenue growth.
Contractual Obligations and Commercial Commitments Future payments due from Garmin, as of December 30, 2006, aggregated by type of contractual obligation, are:
## Table 4 ##
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 30, 2006; 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 because the Taiwan Dollar and British Pound have proven to be relatively stable.
However, periodically we have experienced significant foreign currency gains and losses due to the strengthening and weakening of the U. S.  dollar.
The potential of volatile foreign exchange rate fluctuations in the future could have a significant effect on our results of operations.
The currencies that create a majority of the Company’s exchange rate exposure are the Taiwan Dollar and British Pound.
Garmin Corporation, located in Shijr, Taiwan, uses the local currency as the functional currency.
The Company translates all assets and liabilities at year-end exchange rates and income and expense accounts at average rates during the year.
In order to minimize the effect of the currency exchange fluctuations on our net assets, we have elected to retain most of our Taiwan subsidiary’s cash and investments in marketable securities denominated in U. S.  dollars.
The TD/USD exchange rate decreased 0.7% during 2006, which resulted in a cumulative translation adjustment of negative $1.2 million at the end of fiscal 2006 and a net foreign currency loss of $3.1 million at Garmin Corporation during 2006.
Net sales, long-lived assets (property and equipment), and net assets by geographic area are as follows as of and for the years ended December 30, December 31, 2005, and December 25, 2004:
## Table 5 ##
No single customer accounted for 10% or more of the Company’s consolidated net sales in any period.10.
Stock Compensation Plans Accounting for Stock-Based Compensation Stock-based compensation expenses recognized in the accompanying consolidated statement of income for the fiscal year ended December 30, 2006, was $12 million.
As a result of the adoption of SFAS No.123(R), the Company’s income before income taxes and net income for the fiscal year ended December 30, 2006 are $6,194 and $5,358 million lower, respectively, than if it had continued to account for share-based compensation under APB Opinion No.25.
The adoption of SFAS No.123(R) decreased the Company’s calculation of basic and diluted earnings per share by $0.02 during the fiscal year ended December 30, 2006.
The various Company stock compensation plans are summarized below: 2005 Equity Incentive Plan In June, 2005, the shareholders adopted an equity incentive plan (the Plan) providing for grants of incentive and nonqualified stock options and “other” stock compensation awards to employees of the Company and its subsidiaries, pursuant to which up to 10,000,000 common shares were available for issuance.
The stock options and stock appreciation rights vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised.
During 2006 and 2005, the Company granted 2,341,800 and 896,000 stock appreciation rights, respectively.2000 Equity Incentive Plan In October 2000, the shareholders adopted an equity incentive plan (the Plan) providing for grants of incentive and nonqualified stock options and “other” stock compensation awards to employees of the Company and its subsidiaries, pursuant to which up to 7,000,000 common shares of common stock were available for issuance.
The stock options and stock appreciation rights vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised.
During 2006, 2005, and 2004, the Company granted 64,131, 755,750, and 1,394,000 nonqualified stock options, respectively.
There have been no “other” stock compensation awards granted under the Plan.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="2">Fiscal year ended December 30, 2006</td><td colspan="2">Fiscal year ended December 31, 2005</td><td colspan="2">Year over Year</td></tr><tr><td></td><td>Net Sales</td><td>% of Revenues</td><td>Net Sales</td><td>% of Revenues</td><td>$ Change</td><td>% Change</td></tr><tr><td>Outdoor/Fitness</td><td>$285,362</td><td>16.1%</td><td>$236,936</td><td>23.1%</td><td>$48,426</td><td>20.4%</td></tr><tr><td>Marine</td><td>166,639</td><td>9.4%</td><td>158,262</td><td>15.4%</td><td>8,377</td><td>5.3%</td></tr><tr><td>Automotive/Mobile</td><td>1,089,093</td><td>61.4%</td><td>403,417</td><td>39.2%</td><td>685,676</td><td>170.0%</td></tr><tr><td>Aviation</td><td>232,906</td><td>13.1%</td><td>229,158</td><td>22.3%</td><td>3,748</td><td>1.6%</td></tr><tr><td>Total</td><td>$1,774,000</td><td>100.0%</td><td>$1,027,773</td><td>100.0%</td><td>$746,227</td><td>72.6%</td></tr></table>
<table><tr><td></td><td colspan="2">Fiscal year ended December 30, 2006</td><td colspan="2">Fiscal year ended December 31, 2005</td><td colspan="2">Year over Year</td></tr><tr><td></td><td>Gross Profit</td><td>% of Revenues</td><td>Gross Profit</td><td>% of Revenues</td><td>$ Change</td><td>% Change</td></tr><tr><td>Outdoor/Fitness</td><td>$163,638</td><td>57.3%</td><td>$124,791</td><td>52.7%</td><td>$38,847</td><td>31.1%</td></tr><tr><td>Marine</td><td>92,952</td><td>55.8%</td><td>80,951</td><td>51.2%</td><td>12,001</td><td>14.8%</td></tr><tr><td>Automotive/Mobile</td><td>475,191</td><td>43.6%</td><td>177,638</td><td>44.0%</td><td>297,553</td><td>167.5%</td></tr><tr><td>Aviation</td><td>150,605</td><td>64.7%</td><td>151,690</td><td>66.2%</td><td>-1,085</td><td>-0.7%</td></tr><tr><td>Total</td><td>$882,386</td><td>49.7%</td><td>$535,070</td><td>52.1%</td><td>$347,316</td><td>64.9%</td></tr></table>
<table><tr><td></td><td>Fiscal year ended December 30, 2006</td><td>Fiscal year ended December 31, 2005</td></tr><tr><td>Interest income</td><td>$35,897</td><td>$19,586</td></tr><tr><td>Interest expense</td><td>-41</td><td>-48</td></tr><tr><td>Foreign currency gain</td><td>596</td><td>15,265</td></tr><tr><td>Other</td><td>3,543</td><td>-373</td></tr><tr><td>Total</td><td>$39,995</td><td>$34,430</td></tr></table>
<table><tr><td></td><td colspan="2">Fiscal year ended December 31, 2005</td><td colspan="2">Fiscal year ended December 25, 2004</td><td colspan="2">Year over Year</td></tr><tr><td></td><td>Net Sales</td><td>% of Revenues</td><td>Net Sales</td><td>% of Revenues</td><td>$ Change</td><td>% Change</td></tr><tr><td>Outdoor/Fitness</td><td>$236,936</td><td>23.1%</td><td>$222,042</td><td>29.1%</td><td>$14,894</td><td>6.7%</td></tr><tr><td>Marine</td><td>158,262</td><td>15.4%</td><td>165,510</td><td>21.7%</td><td>-7,248</td><td>-4.4%</td></tr><tr><td>Automotive/Mobile</td><td>403,417</td><td>39.2%</td><td>203,471</td><td>26.7%</td><td>199,946</td><td>98.3%</td></tr><tr><td>Aviation</td><td>229,158</td><td>22.3%</td><td>171,526</td><td>22.5%</td><td>57,632</td><td>33.6%</td></tr><tr><td>Total</td><td>$1,027,773</td><td>100.0%</td><td>$762,549</td><td>100.0%</td><td>$265,224</td><td>34.8%</td></tr></table>
<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>$31,145</td><td>$3,357</td><td>$6,271</td><td>$6,040</td><td>$15,477</td></tr><tr><td>Purchase Obligations</td><td>$265,409</td><td>$265,409</td><td>$0</td><td>$0</td><td>$0</td></tr><tr><td>Total</td><td>$296,554</td><td>$268,766</td><td>$6,271</td><td>$6,040</td><td>$15,477</td></tr></table>
<table><tr><td></td><td>North America</td><td>Asia</td><td>Europe</td><td>Total</td></tr><tr><td>December 30, 2006</td><td></td><td></td><td></td><td></td></tr><tr><td>Net sales to external customers</td><td>$1,093,581</td><td>$87,048</td><td>$593,371</td><td>$1,774,000</td></tr><tr><td>Long-lived assets</td><td>148,922</td><td>65,280</td><td>36,786</td><td>250,988</td></tr><tr><td>Net assets</td><td>431,795</td><td>1,074,827</td><td>51,277</td><td>1,557,899</td></tr><tr><td>December 31, 2005</td><td></td><td></td><td></td><td></td></tr><tr><td>Net sales to external customers</td><td>$661,085</td><td>$50,447</td><td>$316,241</td><td>$1,027,773</td></tr><tr><td>Long-lived assets</td><td>135,875</td><td>42,770</td><td>528</td><td>179,173</td></tr><tr><td>Net assets</td><td>377,684</td><td>742,843</td><td>36,737</td><td>1,157,264</td></tr><tr><td>December 25, 2004</td><td></td><td></td><td></td><td></td></tr><tr><td>Net sales to external customers</td><td>$532,501</td><td>$34,185</td><td>$195,863</td><td>$762,549</td></tr><tr><td>Long-lived assets</td><td>133,832</td><td>37,341</td><td>457</td><td>171,630</td></tr><tr><td>Net assets</td><td>330,350</td><td>573,363</td><td>31,874</td><td>935,587</td></tr></table>

Question: How much is the Net assets for Europe at December 31, 2005 less than the 50 % of the Total Net assets at December 31, 2005?
Answer: 541895
Reasoning program: multiply(0.5,1157264), subtract(#0,36737)