Ingram Micro 2008 Annual Report Download - page 40

Results of Operations
We do not allocate stock-based compensation recognized (see Notes 11 and 12 to our consolidated financial
statements) to our operating units; therefore, we are reporting this as a separate amount. The following tables set
forth our net sales by geographic region and the percentage of total net sales represented thereby, as well as
operating income and operating margin by geographic region for each of the fiscal years indicated.
2008 2007 2006
($ in millions)
Net sales by geographic region:
North America ........................ $14,192 41.3% $13,923 39.7% $13,585 43.3%
EMEA .............................. 11,535 33.6 12,439 35.5 10,754 34.3
Asia-Pacific........................... 6,905 20.1 7,133 20.4 5,537 17.7
Latin America ......................... 1,730 5.0 1,552 4.4 1,481 4.7
Total ................................ $34,362 100.0% $35,047 100.0% $31,357 100.0%
As presented below, our income (loss) from operations in 2008 includes the goodwill impairment charge of
$742.6 million or 2.16% of consolidated net sales ($243.2 million, or 1.71% of sales, in North America;
$24.1 million, or 0.21% of sales, in EMEA; and $475.3 million, or 6.88% of sales, in Asia-Pacific) as discussed
in Notes 2 and 4 to our consolidated financial statements. Income (loss) from operations in 2008 also includes
reorganization and expense-reduction program costs of $18.6 million, or 0.05% of consolidated net sales,
($1.8 million of charges in North America; $16.4 million of charges in EMEA; and $0.3 million of charges in
Asia-Pacific) as discussed in Note 3. In addition, our income from operations in Latin America in 2008 includes the
release of a portion of our commercial tax reserve in Brazil totaling $8.2 million, or 0.48% of Latin America net
sales and 0.02% of consolidated net sales, as discussed in Note 10.
In 2007, our loss from operations in Latin America includes a net commercial tax charge in Brazil of
$30.1 million or 1.94% of Latin American net sales (0.09% of consolidated net sales) and our income from
operations in North America includes a charge of $15.0 million or 0.11% of North American net sales (0.04% of
consolidated net sales) for estimated losses related to a SEC matter, both discussed in Note 10.
2008 2007 2006
($ in millions)
Operating income (loss) and operating margin (loss)
by geographic region:
North America .............................. $ (49.0) (0.35)% $219.9 1.58% $225.2 1.66%
EMEA .................................... 42.0 0.36 151.5 1.22 126.8 1.18
Asia-Pacific................................. (353.5) (5.12) 117.3 1.64 69.4 1.25
Latin America ............................... 43.2 2.50 (4.4) (0.28) 29.9 2.02
Stock-based compensation expense ............... (14.9) — (37.9) — (28.9) —
Total ...................................... $(332.2) (0.97)% $446.4 1.27% $422.4 1.35%
We sell products purchased from many vendors, but generated approximately 23%, 23% and 22% of our net
sales in 2008, 2007 and 2006, respectively, from products purchased from Hewlett-Packard Company. There were
no other vendors that represented 10% or more of our net sales in each of the last three years.
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