Ingram Micro 2001 Annual Report Download

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THE WORLD IS NO
Ingram Micro Annual Report 2001
LONGER ROUND

Table of contents

  • Page 1
    LONGER ROUND THE WORLD IS NO I n g r a m M i c r o A n n u a l R e p o r t 2 0 01

  • Page 2
    value ➝ shareowner vision ➝ performance I t 's a s e r i e s o f s t r a i g h t l i n e s ® exper tise ➝ execution manufacturers ➝ marketplaces investment ➝ innovation

  • Page 3
    ...achieve these goals. As a result, the company is now better positioned than ever for long-term success. • Increased Gross Margins to 5.28 Percent • Strengthened Balance Sheet • Reduced Selling, General and Administrative (SG&A) Expenses by more than $36 Million in Q4 2001 Compared with Q4 2000...

  • Page 4
    ... my point. We reorganized the U.S. sales and product management divisions, consolidated distribution and return centers, and refocused the IT functions to support a more service-oriented business model. Nearly 6,500 customers were moved to the dedicated sales teams we created, without increasing...

  • Page 5
    ...280 270 Q1 Q2 Q3 Q4 FY Q4 Q1 Q2 Q3 Q4 500 20 provide fee-based fulfillment services for companies like Amazon.com and Intuit. During the launch of Windows XP, the IM-Logistics Division moved more than 800,000 units, most of it shipped directly from the manufacturer without touching a warehouse, to...

  • Page 6
    ... organizations and companies that were directly affected by the attacks in New York City and Washington, D.C. It was gratifying to be able to support our customers and our country in this time of crisis." DC Management and Transportation Team: Under the direction of Jeff Johnson (center), Jonathan...

  • Page 7
    ... our distribution centers. Designed by Ingram Micro, IM-First connects the company's entire U.S. distribution network to expedite fulfillment and reverse-logistics services. Reports are now generated online in real time, providing instant access to information. They help us make informed operational...

  • Page 8
    ... distribution center demonstrates our commitment to providing our customers with quality service and solutions," explains Luis Feres, director of operations, Ingram Micro Mexico. C APITALIZING ON OPPORTUNITIES IN A GROWING A SIAN MARKET. According to International Data Corporation (IDC), China...

  • Page 9
    ...example, the IM-Logistics Division in North America provides manufacturers and large retailers with global and customized logistics and fulfillment services on a fee-for-service basis, leveraging the assets acquired in the cost-plus distribution model. Using Ingram Micro's established infrastructure...

  • Page 10
    ...Report of independent accountants Company information All lines point to a stronger company. With a healthy balance sheet, lower operating costs, innovative procedures, technology driving new growth opportunities and a strong management team, Ingram Micro is now better positioned than ever to build...

  • Page 11
    ..." included in Exhibit 99.01 to our Annual Report on Form 10-K for the fiscal year ended December 29, 2001. O ve r v i ew We are the leading distributor of information technology ("IT") products and services worldwide based on revenues. From 1997 to 2000, our net sales grew from $16.6 billion to $30...

  • Page 12
    ... result in an increase or reduction in the estimated amounts previously accrued. In addition, if market conditions were to deteriorate due to an economic downturn, vendors may change the terms of some or all of these programs. Such change could lower our gross margins on products we sell or revenues...

  • Page 13
    ... U.S. and Europe, our Other International operations, net sales decreased 5.6% to $4.5 billion in 2001 from $4.8 billion in 2000, primarily due to the overall softness in demand for technology products and services in our Canadian and Asia-Pacific operations. Our Latin American operations, however...

  • Page 14
    ...and a resulting increase in SG&A expenses as a percentage of net sales in the near term. We continue to pursue and implement process improvements and organizational changes to create sustainable cost reductions without sacrificing customer service over the long-term. In 1999, we recorded a charge of...

  • Page 15
    ... net sales is attributable to calendar year-end business purchases and holiday period purchases made by customers. L i q u i d i ty a n d Ca p i ta l Reso u rces Cash Flows We have financed our growth and cash needs largely through income from operations, borrowings, sales of accounts receivable...

  • Page 16
    ...our earnings and cash flows resulting from sales, purchases and other transactions from the adverse impact of exchange rate movements. Foreign exchange risk is managed by using forward and option contracts to offset exchange risk associated with receivables and payables. By policy, we maintain hedge...

  • Page 17
    Management's Discussion and Analysis (continued) Ingram Micro Inc. Consolidated Balance Sheet (Dollars in 000s, except per share data) Fiscal Year End 2001 2000 The value of foreign currency options does not change on a one-to-one basis with changes in the underlying currency rate. The potential ...

  • Page 18
    ... (Dollars in 000s, except per share data) Fiscal Year 2001 2000 1999 Ingram Micro Inc. Consolidated Statement of Stockholders' Equity Accumulated Other Comprehensive Income (Loss) Net sales Cost of sales Gross profit Expenses: Selling, general and administrative Reorganization costs Special items...

  • Page 19
    ... ta t i o n Ingram Micro Inc. ("Ingram Micro") is primarily engaged, directly and through its wholly- and majority-owned subsidiaries, in distribution of information technology products and services worldwide. Ingram Micro operates in the United States, Europe, Canada, Latin America and Asia-Pacific...

  • Page 20
    ... operates internationally with distribution facilities in various locations around the world. The Company reduces its exposure to fluctuations in interest rates and foreign exchange rates by creating offsetting positions through the use of derivative financial instruments. The market risk related...

  • Page 21
    ...Dollars in 000s, except per share data) Foreign exchange risk is managed by using forward and option contracts to hedge receivables and payables. Written foreign currency options are used to mitigate currency risk in conjunction with purchased options. Currency interest rate swaps are used to hedge...

  • Page 22
    ...downsizing the Miami, Florida distribution center, closing the returns processing centers in Santa Ana and Rancho Cucamonga, California and centralizing returns in the Harrisburg, Pennsylvania returns center; restructuring the U.S. sales force, consolidating the U.S. product management division; and...

  • Page 23
    ... to support a commercial paper program through the issuance of undivided interests in the pool of trade receivables to third parties. Sales of undivided interests to third parties under this program result in a reduction of total accounts receivable in the Company's consolidated balance sheet. The...

  • Page 24
    ... reporting purposes and the amounts used for income tax purposes. Significant components of the Company's net deferred tax assets and liabilities are as follows: Fiscal Year End 2001 2000 Net deferred tax assets and (liabilities): Net operating loss carryforwards Allowance on accounts receivable...

  • Page 25
    ... United States, Europe (Austria, Belgium, Denmark, Finland, France, Germany, Hungary, Italy, The Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom) and Other international (Australia, The People's Republic of China [including Hong Kong], India, Malaysia, New...

  • Page 26
    ... to the pro forma amounts indicated below: Fiscal Year 2001 2000 1999 In August 2001, the human resources committee of the Company's board of directors authorized a modification of the exercise schedule to retirees under the Equity Incentive Plans. The modification extended the exercise period...

  • Page 27
    ... Company's Class A Common Stock could be sold to employees. Under the Plan, employees can elect to have between 1% and 6% of their earnings withheld to be applied to the purchase of these shares. The purchase price under the Plan is generally the lesser of the market price on the beginning or ending...

  • Page 28
    ... Micro Asia-Pacific First Chicago Trust Company of New York A Division of EquiServe Post Office Box 2500 Jersey City, NJ 07303-2500 Phone: 201.324.1644 Kevin M. Murai 52 Executive Vice President and President Ingram Micro North America INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP 350 South...

  • Page 29
    ...s ...w i t h e v e r y p a r t n e r, e v e r y d a y . -Ingram Micro Corporate Vision ® © 2002 Ingram Micro Inc. All rights reserved. Ingram Micro and the Ingram Micro logo are trademarks used under license by Ingram Micro Inc. All other trademarks are the property of their respective companies.