So if I understand correctly, timer 1 and timer 2 start counting upon initialization and both…
Aljaz Prislan

You were close :) Both TIMER1 and TIMER2 start counting upon initialization, both generate an event when a COMPARE event occurs, not overflow. When the counter equals 0x7fff it means that the timer was on for 1 sec and TIMER2 will generate a COMPARE EVENT, when it reaches 0xffff it means that the timer was on for two seconds and TIMER1 will generate a COMPARE event. Both timers overflow on 0xffff but do not generate an event on overflow.

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