Ingram Micro 2008 Annual Report Download - page 98

Schedule 1 to Ingram Micro 2008 Annual Report
Reconciliation of GAAP to Non-GAAP Financial Measures
($ in thousands, except per share data)
2008 2007 2006 2005 2004
Fiscal Year
Income (loss) from operations (GAAP)(1) . . . . . $ (332,169) $ 446,420 $ 422,444 $ 362,186 $ 283,367
Impairment of goodwill . . . . . . . . . . . . . . . . . . . 742,653
Non-GAAP income from operations . . . . . . . . . $ 410,484
Net income (loss) (GAAP)(2) . . . . . . . . . . . . . . $ (394,921) $ 275,908 $ 265,766 $ 216,906 $ 219,901
Reconciling item:
Impairment of goodwill . . . . . . . . . . . . . . . . . 742,653
Tax effect . . . . . . . . . . . . . . . . . . . . . . . . . . . (82,873)
Net reconciling item(3) . . . . . . . . . . . . . . . . . . . 659,780
Non-GAAP net income. . . . . . . . . . . . . . . . . . . $ 264,859
Diluted earnings (loss) per share (GAAP) . . . . . $ (2.37) $ 1.56 $ 1.56 $ 1.32 $ 1.38
Per share impact of reconciling item(3) . . . . . . . . 3.96
Non-GAAP diluted earnings per share . . . . . . . $ 1.59
Weighted average diluted shares . . . . . . . . . . . . 166,542,541 176,951,694 170,875,794 164,331,166 159,680,040
(1) Fiscal 2008 includes net charge of $18,573, comprised of $17,029 reorganization costs related to employee termination benefits for
workforce reductions and facility consolidations, as well as $1,544 of other costs related to the reorganization activities charged to selling,
general and administrative expenses or SG&A expenses. Fiscal 2008 also includes a benefit of $8,224 recorded to cost of sales related to the
release of a portion of the reserve for Brazilian commercial taxes for which the statute of limitations has expired. Fiscal 2007 includes a net
charge to costs of sales of $30,134 related to a commercial tax reserve recorded for certain commercial taxes in Brazil, a charge to SG&A
expenses related to a reserve of $15,000 for estimated losses associated with the SEC matter regarding certain transactions with McAfee, Inc.
(formerly NAI) from 1998 through 2000 and a reduction to SG&A expenses related to a gain of $2,859 from the sale of our Asian
semiconductor business. Fiscal 2005 includes reorganization costs of $16,276, as well as other major program costs of $22,935 charged to
SG&A expenses, which were incurred in the implementation of our outsourcing and optimization plan to improve operating efficiencies and
in the integration of Tech Pacific. Fiscal 2007, 2006 and 2004 include credit adjustments to reorganization costs of $1,091, $1,727 and
$2,896, respectively, for previous actions. Fiscal 2008, 2007 and 2006 include $14,845, $37,875 and $28,875, respectively, of stock based
compensation expense resulting from the 2006 adoption of Statement of Financial Accounting Standards No. 123 (revised 2004) “Share
Based Payment.”
(2) Includes items in footnote (1) above as well a loss of $8,413 in 2005 on the redemption of senior subordinated notes and related interest-rate
swap agreements, a foreign exchange gain of $23,120 in 2004 related to the forward currency exchange contract associated with our
Australian-dollar denominated purchase of Tech Pacific, and the aggregate tax impact of these listed items. In addition, it includes the
reversal of deferred tax liabilities in 2006, 2005 and 2004 of $801, $2,385 and $41,078, respectively, related to the gain on sale of available-
for-sale securities in previous years.
(3) GAAP results for fiscal 2008 include the impact of the charge for the impairment of goodwill of $742,653 pre-tax, or $659,780 after-tax or
$3.96 per diluted share. The non-GAAP results for fiscal 2008 exclude the impact of this impairment charge. Per share impact of reconciling
item is equal to the net reconciling item divided by weighted average diluted shares.