Tech Data 2014 Annual Report Download - page 27

Table of Contents
The following table sets forth our Consolidated Statement of Income as a percentage of net sales for each of the three most recent fiscal years:
Net Sales
Our consolidated net sales were $26.8 billion in fiscal 2014, an increase of 5.8% when compared to fiscal 2013. Our acquisition of the SDG
value and broadline IT products distribution businesses in November 2012 positively impacted our year-over-year net sales comparison by
approximately seven percentage points and the strengthening of certain foreign currencies against the U.S. dollar positively impacted our year-
over-year net sales comparison by approximately two percentage points. Excluding the net sales of SDG and the positive impact of the
strengthening of certain foreign currencies against the U.S. dollar in fiscal 2014, consolidated net sales decreased by approximately three percent
in comparison with the same period of the prior fiscal year. On a regional basis, during fiscal 2014, net sales in the Americas increased by 3.7%
compared to fiscal 2013 and increased by 7.1% in Europe (an increase of 3.7% on a euro basis). Excluding SDG, net sales in our “legacy”
European operations decreased by approximately four percent (a decrease of approximately seven percent on a euro basis) in comparison with
the same period of the prior fiscal year. The increase in net sales in the Americas is primarily attributable to a partial recovery of market share
beginning in the second quarter of fiscal 2014 that was lost after our implementation of the final modules of SAP within our U.S. operations
during the second quarter of fiscal 2013. The decline in our European net sales (in euro) within our legacy operations is primarily due to weak
economic conditions in certain countries and a decline in market share within several of our operations due to competitive pressures and our
focus on gross margin percentage.
Our consolidated net sales were $25.4 billion in fiscal 2013, a decrease of 1.1% when compared to fiscal 2012. The weakening of certain foreign
currencies against the U.S. dollar negatively impacted the year-over-year net sales comparison by approximately four percentage points. On a
regional basis, during fiscal 2013, net sales in the Americas decreased by 5.6% compared to fiscal 2012 and increased by 1.9% in Europe (an
increase of 9.3% on a euro basis). Fiscal 2013 net sales includes $617.4 million of net sales from SDG, which we acquired on November 1,
2012. Included in fiscal 2012 are net sales of approximately $273.8 million related to the in-country operations of Brazil and Colombia, which
we exited at the end of fiscal 2012. Excluding the net sales of SDG, the closure of our in-country operations in Brazil and Colombia and the
negative impact of the weakening of certain foreign currencies against the U.S. dollar in fiscal 2013, consolidated net sales increased by
approximately two percent in comparison with the same period of the prior fiscal year. The increase in net sales was primarily attributable to
increased sales volume in tablets, our European mobile business, and software, partially offset by the negative impact of general market
conditions in the Americas and the loss of some market share in the U.S. following the implementation of certain SAP modules during the
second quarter of the fiscal year. During fiscal 2013, we experienced strong sales performance in certain European markets, including the U.K.,
Germany, and France.
We sell many products purchased from the world’s leading systems, peripherals, networking and software vendors. Products purchased from
Hewlett-Packard Company generated 21% , 21% and 25% of our net sales in fiscal 2014, 2013 and 2012, respectively.
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2014 2013 2012
Net sales
100.00
%
100.00
%
100.00
%
Cost of products sold
94.92
94.86
94.63
Gross profit
5.08
5.14
5.37
Operating expenses:
Selling, general and administrative expenses
4.16
3.98
4.07
Restatement-related expenses and LCD settlements, net
0.07
0.00
0.00
Value added tax assessment
0.00
0.12
0.00
Loss on disposal of subsidiaries
0.00
0.00
0.11
4.23
4.10
4.18
Operating income
0.85
1.04
1.19
Interest expense
0.10
0.12
0.12
Other (income) expense, net
(0.01
)
0.02
0.01
Income before income taxes
0.76
0.90
1.06
Provision for income taxes
0.09
0.18
0.28
Consolidated net income
0.67
0.72
0.78
Net income attributable to noncontrolling interest
0.00
(0.02
)
(0.04
)
Net income attributable to shareholders of Tech Data Corporation
0.67
%
0.70
%
0.74
%