Tech Data 2014 Annual Report Download - page 50

Table of Contents
economic conditions and practices, which are all subject to change as events evolve and as additional information becomes available during the
administrative and litigation process.
Restatement
-related expenses and LCD settlements, net
Restatement-related expenses primarily include legal, accounting and third party consulting fees associated with (i) the restatement of certain of
the Company's consolidated financial statements and other financial information from fiscal 2009 to fiscal 2013, (ii) the Audit Committee
investigation to review the Company's accounting practices, (iii) supplemental procedures to assist in reviewing the Company's financial
statements and accounting practices, and (iv) other related activities. During fiscal 2014, the Company incurred approximately $53.8 million of
restatement-related expenses which are recorded in "restatement-related expenses and LCD settlements, net" in the Consolidated Statement of
Income.
Additionally, the Company has been a claimant in proceedings seeking damages from certain manufacturers of LCD flat panel displays. During
fiscal 2014, the Company reached settlement agreements with certain manufacturers in the amount of $35.5 million , net of attorney fees and
expenses, which is recorded in "restatement-related expenses and LCD settlements, net" in the Consolidated Statement of Income.
Recently Adopted Accounting Standards
In July 2012, the FASB issued a new accounting standard which allows an entity to first assess qualitative factors to determine whether it is
necessary to perform a quantitative impairment test for indefinite-lived intangible assets. The accounting standard states that an entity would not
be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that
the indefinite-lived intangible asset is impaired. This standard was effective for the Company beginning February 1, 2013. As the Company
currently has no material indefinite-lived intangible assets, other than goodwill, this standard had no impact on the Company's consolidated
financial position, income, comprehensive income and cash flows.
In February 2013, the FASB issued an accounting standard which requires an entity to provide additional information regarding the amounts
reclassified out of accumulated other comprehensive income by component, the income statement line item to which the reclassification was
made and if applicable, cross-referenced to related footnote disclosures. The accounting standard was effective for the Company beginning with
the quarter ending April 30, 2013. As the requirements of this standard are disclosure only, there was no impact on the Company's consolidated
financial position, income, comprehensive income or cash flows.
Recently Issued Accounting Standards
In March 2013, the FASB issued an accounting standard which clarifies the accounting for the derecognition of certain subsidiaries or groups of
assets within a foreign entity or of an investment in a foreign entity. The guidance also requires the accounting for a business combination
achieved in stages involving a foreign entity to be treated as a single event. The accounting standard is effective for the Company beginning with
the quarter ending April 30, 2014 and is to be applied prospectively to derecognition events occurring after the effective date. Early adoption is
also permitted. If an entity elects to early adopt the accounting standard, it is to be adopted as of the beginning of the entity's fiscal year of
adoption. The Company will apply the provisions of this accounting standard to all transactions described above prospectively from the date of
adoption.
In March 2013, the FASB also issued an accounting standard which requires an entity to measure obligations resulting from joint and several
liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date as the sum of: i)
the amount the reporting entity agreed to pay on the basis of its arrangements among its co-obligors and ii) any additional amount the reporting
entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well
as other information about those obligations. The accounting standard is effective for the Company beginning with the quarter ending April 30,
2014 and is to be applied retrospectively for all periods presented. Early adoption is also permitted. The Company does not anticipate that the
adoption of this guidance will have a material impact on its consolidated financial position, income, comprehensive income or cash flows.
In July 2013, the FASB issued an accounting standard which requires presentation of certain unrecognized tax benefits as reductions to deferred
tax assets rather than as liabilities when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The accounting
standard is effective for the Company beginning with the quarter ending April 30, 2014 and is to be applied prospectively. The Company
currently follows the guidance and this update will have no impact on its financial statement disclosures.
Reclassifications
Certain reclassifications have been made to the January 31, 2013 and 2012 financial statements to conform to the January 31, 2014 financial
statement presentation. These reclassifications did not change previously reported total assets, total liabilities and shareholders' equity or
consolidated net income.
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