Tech Data 2014 Annual Report Download - page 63

Table of Contents
Retirement Savings Plan
The Company sponsors the Tech Data Corporation 401(k) Savings Plan (the “401(k) Savings Plan”) for its U.S. employees. At the Company’s
discretion, participant deferrals are matched in cash, in an amount equal to 50% of the first 6% of participant deferrals and participants are fully
vested following four years of qualified service. Aggregate contributions made by the Company to the 401(k) Savings Plan were $0.7 million
for
fiscal 2014 and $2.5 million for both fiscal 2013 and 2012. The Company suspended the employer match for the 401(k) Savings Plan during
fiscal 2014.
NOTE 10 — SHAREHOLDERS’ EQUITY
During fiscal 2013, the Company completed both of the $100.0 million share repurchase programs approved by the Company’s Board of
Directors in May 2012 and November 2011. In conjunction with the Company's share repurchase programs, 10b5-1 plans were executed that
instruct the brokers selected by the Company to repurchase shares on behalf of the Company. The amount of common stock repurchased in
accordance with the 10b5-1 plans on any given trading day is determined by a formula in the plan, which is based on the market price of the
Company's common stock and average daily volumes. Shares repurchased by the Company are held in treasury for general corporate purposes,
including issuances under equity incentive and benefit plans. The reissuance of shares from treasury stock is based on the weighted average
purchase price of the shares.
The Company’s common share repurchase and issuance activity for fiscal 2014 and 2013 is summarized as follows:
NOTE 11 — FAIR VALUE MEASUREMENTS
The Company’s assets and liabilities carried or disclosed at fair value are classified in one of the following three categories: Level 1 – quoted
market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in level 1 above that
are observable for the asset or liability, either directly or indirectly; and, Level 3 – unobservable inputs for the asset or liability. The
classification of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value
measurement.
The following table summarizes the valuation of the Company's assets and liabilities that are measured at fair value on a recurring basis:
The Company’s foreign currency forward contracts are measured on a recurring basis based on foreign currency spot rates and forward rates
quoted by banks or foreign currency dealers (Level 2 criteria) and are marked-to-market each period with gains and losses on these contracts
recorded in the Company’s Consolidated Statement of Income on a basis consistent with the classification of the change in the fair value of the
underlying transactions giving rise to these foreign currency exchange gains and losses in the period in which their value changes, with the
offsetting amount for unsettled positions being included in either other current assets or other current liabilities in the Consolidated Balance
Sheet. See further discussion below in Note 12 – Derivative Instruments.
The acquisition-related contingent consideration represents the future earnout payments related to the Company's acquisitions. The Company
estimates the fair value of this Level 3 contingent consideration liability at each reporting date using a discounted cash flow analysis, which
requires the evaluation of significant unobservable inputs that include projected revenues, expenses and cash flows, and assumed discount rates.
Shares
Weighted-
average
price per
share
Treasury stock balance at January 31, 2012
18,166,761
$
40.71
Shares of common stock repurchased under share repurchase programs
3,878,548
49.33
Shares of treasury stock reissued
(608,743
)
Treasury stock balance at January 31, 2013
21,436,566
42.26
Shares of treasury stock reissued
(259,436
)
Treasury stock balance at January 31, 2014
21,177,130
42.26
January 31, 2014 January 31, 2013
Fair value measurement category Fair value measurement category
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
(in thousands)
Assets
Foreign currency forward contracts
$
6,160
$
19,835
Liabilities
Foreign currency forward contracts
$
2,423
$
19,628
Acquisition-related contingent consideration
$
10,571
$
18,147