Tech Data 2014 Annual Report Download - page 54

Table of Contents
The Company has accounted for the SDG acquisition as a business combination and allocated the purchase price to the estimated fair values of
assets acquired and liabilities assumed (in thousands, translated using the foreign currency exchange rates on the date of acquisition):
The allocation of identifiable intangible assets is comprised of approximately $103.1 million related to customer and vendor relationship assets
with an estimated useful life of ten years and approximately $31.2 million related to the preferred supplier agreement to be amortized over the
six year life of the agreement, as amended.
The following table presents unaudited supplemental proforma information as if the SDG acquisition and the execution of the related preferred
supplier agreement had both occurred at the beginning of fiscal 2012. The proforma results include business combination accounting effects
from the acquisition including amortization of acquired intangible assets and interest expense associated with the issuance of our Senior Notes
(as defined herein) due in September 2017 used to fund the acquisition. This proforma information does not reflect any impact from business
synergies that may be achieved by the combined business, and is presented for comparative purposes only. It is not necessarily indicative of the
results of operations that actually would have been achieved had the acquisition been consummated on the date indicated or that may result in the
future:
Acquisition of TD Mobility
On November 1, 2013, the Company acquired Brightstar’s fifty percent ownership interest in TD Mobility, a joint venture in the United States,
for a cash purchase price of approximately $2.1 million . The purchase price has been allocated to the estimated fair values of assets acquired
and liabilities assumed, including tangible assets of approximately $4.0 million identifiable intangible assets of approximately $4.2 million
goodwill of approximately $1.9 million and liabilities of approximately $6.1 million . Identifiable intangible assets are primarily related to
vendor relationships and other intangible assets with estimated useful lives of five to ten years. Proforma information for the acquisition of TD
Mobility has not been presented as the acquisition was not material to the Company’s consolidated financial position or results of operations.
NOTE 6 — LOSS ON DISPOSAL OF SUBSIDIARIES
In the fourth quarter of fiscal 2012, as part of the Company’s ongoing initiatives to optimize its profitability and return on invested capital, the
decision was made to close the Company’s in-country commercial operations in Brazil and Colombia by the end of fiscal 2012. During the
fourth quarter of fiscal 2012, the Company recorded a loss on disposal of these subsidiaries of $28.3 million , which included a $9.9 million
impairment on the Company’s investments in Brazil and Colombia due to a foreign currency exchange loss (previously recorded in shareholders’
equity as accumulated other comprehensive income), $15.3 million related to the write-off of
50
Cash
$
65,000
Accounts receivable
260,800
Inventories
126,100
Tangible assets (includes property and equipment, deferred tax assets and other assets)
6,200
Goodwill
122,600
Identifiable intangible assets
134,300
Accounts payable
(265,200
)
Liabilities (includes accrued expenses, deferred tax liability and other liabilities)
(91,800
)
$
358,000
Fiscal Year Ended January
31,
2013
(In thousands, unaudited)
Net sales
As reported
$
25,358,329
Proforma
$
27,099,438
Net income attributable to shareholders of Tech Data Corporation
As reported
$
176,255
Proforma
$
188,265