Ingram Micro 2008 Annual Report Download - page 68

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acquisition of VPN Dynamics and Securematics, the parties agreed that $4,100 of the purchase price shall be held in
an escrow account to cover any contingent liabilities under the purchase agreement. The funds held in escrow are
scheduled to be released to the sellers in three installments over a period of two years following the transaction date,
if no claims are made. The purchase agreement also provides for the Company to pay the sellers additional
contingent consideration of up to $3,200, if certain performance levels are achieved, over the two-year period
following the date of acquisition. No such contingent payments have been earned to date. Such payment, if any, will
be recorded as additional adjustments to the initial purchase price.
In 2007, the Company concluded favorable resolutions of certain taxes associated with a previous acquisition
in Asia-Pacific. As a result, the Company made an adjustment to the purchase price allocation associated with this
acquisition to reflect reductions in tax-related liabilities that existed at the dates of purchase totaling $209, and a
decrease of goodwill for the same amount.
The changes in the carrying amount of goodwill, including the 2008 impairment charge (see Note 2 to the
Company’s consolidated financial statements), for fiscal years 2008 and 2007 are as follows:
North
America EMEA Asia-
Pacific Latin
America Total
Balance at December 30, 2006 ...... $156,732 $ 14,168 $ 472,814 $— $ 643,714
Acquisitions.................. 78,611 — (209) — 78,402
Disposition................... — — (5,758) — (5,758)
Foreign currency translation ...... 150 1,591 15,382 — 17,123
Balance at December 29, 2007 ...... 235,493 15,759 482,229 — 733,481
Acquisitions.................. 7,873 9,394 1,584 — 18,851
Foreign currency translation ...... (176) (1,028) (8,475) — (9,679)
Impairment of goodwill ......... (243,190) (24,125) (475,338) — (742,653)
Balance at January 3, 2009......... $ — $ — $ — $— $ —
All acquisitions for the periods presented above were not material, individually or in aggregate, to the
Company as a whole and therefore, pro-forma financial information has not been presented.
Note 5 — Property and Equipment
Property and equipment consist of the following:
2008 2007
Fiscal Year End
Land .................................................... $ 5,442 $ 5,684
Buildings and leasehold improvements ........................... 131,328 137,470
Distribution equipment ....................................... 255,058 257,318
Computer equipment and software............................... 387,374 347,896
779,202 748,368
Accumulated depreciation . . ................................... (577,060) (566,952)
$ 202,142 $ 181,416
58
INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)