Ingram Micro 2008 Annual Report Download - page 79

2008 2007
Fiscal Year End
Identifiable assets
North America .......................................... $2,827,736 $3,746,022
EMEA................................................ 2,739,600 3,128,859
Asia-Pacific ............................................ 1,103,040 1,661,475
Latin America .......................................... 413,097 438,645
Total ............................................... $7,083,473 $8,975,001
In 2008, the Company revised its presentation of identifiable assets to reclassify intercompany borrowings to
liabilities. The Company made conforming changes to the 2007 presentation of identifiable assets, the affect of
which was to decrease 2007 North America identifiable assets by $1,121,361, increase EMEA by $437,813,
increase Asia Pacific by $713,602 and decrease Latin America by $30,054. There was no impact on the Company’s
consolidated identifiable assets or on the consolidated balance sheet as a whole.
Note 12 — Stock-Based Compensation
Compensation expense of $14,845, $37,875 and $28,875 for the years ended January 3, 2009, December 29,
2007 and December 30, 2006, respectively, was recognized in accordance with Statement of Financial Accounting
Standards No. 123 (revised 2004) “Share-Based Payment” and the related income tax benefits were $3,469, $9,588
and $6,829, respectively.
The Company has elected to use the Black-Scholes option-pricing model to determine the fair value of stock
options. The Black-Scholes model incorporates various assumptions including volatility, expected life, and interest
rates. The expected volatility is based on the historical volatility of the Company’s common stock over the most
recent period commensurate with the estimated expected life of the Company’s stock options. The expected life of
an award is based on historical experience and the terms and conditions of the stock-based awards granted to
employees. The fair value of options granted in the years ended January 3, 2009, December 29, 2007 and
December 30, 2006 was estimated using the Black-Scholes option-pricing model assuming no dividends and using
the following weighted average assumptions:
2008 2007 2006
Fiscal Year Ended
Expected life of stock options .......................... 4.5years 4.5 years 4.0 years
Risk-free interest rate ................................ 3.16% 4.67% 4.70%
Expected stock volatility .............................. 32.9% 37.8% 40.0%
Weighted-average fair value of options granted ............. $5.79 $7.95 $7.14
Equity Incentive Plan
The Company currently has a single equity-based incentive plan approved by its stockholders, the Ingram
Micro Inc. Amended and Restated 2003 Equity Incentive Plan (the “2003 Plan”), for the granting of equity-based
incentive awards including incentive stock options, non-qualified stock options, restricted stock, restricted stock
units and stock appreciation rights, among others, to key employees and members of the Company’s Board of
Directors. Under the 2003 Plan,the existing authorized pool of shares available for grant was converted toa fungible
pool, whereas the authorized share limit will be reduced by one share for every share subject to a stock option or
stock appreciation right granted and 1.9 shares for every share granted under any award other than an option or stock
appreciation right. The Company grants restricted stock and restricted stock units, in addition to stock options, to
key employees and members of the Company’s Board of Directors. Options granted generally vest over a period of
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INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)