Ingram Micro 1999 Annual Report Download - page 40

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3388
Ingram Micro
Annual Report
Derivative financial instruments comprise the following:
1999 1998
Notional Estimated Notional Estimated
Amounts Fair Value Amounts Fair Value
Foreign exchange forward contracts $365,931 $(251) $702,343 $(1,648)
Purchased foreign currency options 54,149 1,215 32,604 78
Written foreign currency options 53,603 (503) 18,652 (111)
Currency interest rate swaps 211,534 27,457 200,732 628
Forward rate agreements — — 149,400 10
Comprehensive Income
Statement of Financial Accounting Standards No. 130, “Reporting Comprehensive Income” (“FAS 130”), establishes standards
for reporting and displaying comprehensive income and its components in the Company’s consolidated financial statements.
Comprehensive income is defined in FAS 130 as the change in equity (net assets) of a business enterprise during a period from
transactions and other events and circumstances from nonowner sources.
The components of accumulated other comprehensive income (loss) are as follows:
Foreign Unrealized Accumulated
Currency Gain On Other
Translation Available-for-sale Comprehensive
Adjustment Securities Income (Loss)
Balance at December 28, 1996 $1,910 $—$1,910
Change in foreign currency translation adjustment (16,146) — (16,146)
Balance at January 3, 1998 (14,236) — (14,236)
Change in foreign currency translation adjustment 2,656 — 2,656
Unrealized holding gain arising during the period — 6,666 6,666
Balance at January 2, 1999 (11,580) 6,666 (4,914)
Change in foreign currency translation adjustment (17,071) — (17,071)
Unrealized holding gain arising during the period — 475,490 475,490
Reclassification adjustment for gain included in net income — (125,220) (125,220)
Balance at January 1, 2000 $(28,651) $356,936 $328,285
Accounting for Stock-Based Compensation
The Company has adopted the disclosure requirements of Statement of Financial Accounting Standards No. 123, “Accounting
for Stock-Based Compensation” (“FAS 123”). As permitted by FAS 123, the Company continues to measure compensation cost
in accordance with Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”), but
provides pro forma disclosures of net income and earnings per share as if the fair-value method had been applied.
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 by the weighted average number of common shares
outstanding during the reported period. Diluted EPS reflects the potential dilution that could occur if stock options and other
commitments to issue common stock were exercised using the treasury stock method or the if-converted method, where applicable.
continued
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Dollars in 000s, except per share data