Ingram Micro 2008 Annual Report Download - page 63

The components of comprehensive income (loss) are as follows:
2008 2007 2006
Fiscal Year Ended
Net income (loss) .................................. $(394,921) $275,908 $265,766
Changes in foreign currency translation adjustments and
other.......................................... (186,061) 152,315 85,113
Comprehensive income (loss) ......................... $(580,982) $428,223 $350,879
Accumulated other comprehensive income included in stockholders’ equity totaled $74,691 and $260,752 at
January 3, 2009 and December 29, 2007, respectively, and consisted primarily of foreign currency translation
adjustments.
Earnings Per Share
The Company reports a dual presentation of Basic Earnings Per Share (“Basic EPS”) and Diluted Earnings Per
Share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted
average number of common shares outstanding during the reported period. Diluted EPS uses the treasury stock
method or the if-converted method, where applicable, to compute the potential dilution that would occur if stock-
based awards and other commitments to issue common stock were exercised.
The computation of Basic EPS and Diluted EPS is as follows:
2008 2007 2006
Fiscal Year Ended
Net income (loss) ......................... $ (394,921) $ 275,908 $ 265,766
Weighted average shares .................... 166,542,541 171,640,569 165,414,176
Basic earnings (loss) per share................ $ (2.37) $ 1.61 $ 1.61
Weighted average shares including the dilutive
effect of stock-based awards (5,311,125 and
5,461,618 for 2007 and 2006, respectively) .... 166,542,541 176,951,694 170,875,794
Diluted earnings (loss) per share .............. $ (2.37) $ 1.56 $ 1.56
There were approximately 12,048,000 outstanding stock-based awards in 2008, all of which were not included
in the computation of diluted EPS because of the Company’s net loss for the year. There were approximately
1,399,000 and 1,606,000 outstanding stock-based awards in 2007 and 2006, respectively, which were not included
in the computation of Diluted EPS because the exercise price was greater than the average market price of the
Class A Common Stock, thereby resulting in an antidilutive effect.
Income Taxes
The Company estimates income taxes in each of the taxing jurisdictions in which it operates. This process
involves estimating the actual current tax expense together with assessing any temporary differences resulting from
the different treatment of certain items, such as the timing for recognizing revenues and expenses for tax and
financial reporting purposes. These differences may result in deferred tax assets and liabilities, which are included
in the consolidated balance sheet. The Company is required to assess the likelihood that the deferred tax assets,
which include net operating loss carryforwards, tax credits and temporary differences that are expected to be
deductible in future years, will be recoverable from future taxable income. In making that assessment, the Company
considers future market growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions
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INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)