Ingram Micro 2010 Annual Report Download - page 21

ITEM 1A. RISK FACTORS
CAUTIONARY STATEMENTS FOR PURPOSES OF THE “SAFE
HARBOR” PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a “safe harbor” for “forward-
looking statements” to encourage companies to provide prospective information, so long as such information is
identified as forward-looking and is accompanied by meaningful cautionary statements identifying important
factors that could cause actual results to differ materially from those discussed in the forward-looking statement(s).
Ingram Micro desires to take advantage of the safe harbor provisions of the Act.
Our periodic and current reports filed with the Securities and Exchange Commission, periodic press releases,
and other public documents and statements, may contain forward-looking statements. In addition, our represen-
tatives may participate in speeches and calls with market analysts; conferences, meetings and calls with investors
and potential investors in our securities; and other meetings and conferences. Some of the information presented in
these calls, meetings and conferences may also be forward-looking. We disclaim any duty to update any forward-
looking statements, whether as a result of new information, future events or otherwise.
Described below and throughout this report are certain risks that could affect our business, financial results and
results of operations. These risk factors should be considered in connection with evaluating your investment in our
company because these factors could cause our actual results and conditions to differ materially from our historical
performance or those projected in our forward-looking statements. Before you invest in our company, you should
know that making such an investment involves risks, including the risks described below. The risks that have been
highlighted here are not the only ones that we face. There may be additional risks that are not presently material or
known. If any of the risks actually occur, our business, financial condition or results of operations could be
negatively affected. In that case, the trading price of our common stock could decline, and you may lose all or part of
your investment.
Changes in macroeconomic conditions can affect our business and results of operations. Our revenues,
and our profitability, financial position and cash flows, are highly dependent on the broader movements of the
macroeconomic environment. For example, our results of operations were adversely affected by the difficult
conditions experienced in the global economy in recent periods. Although we have seen improvements in the
macroeconomic environment in every region in which we operate, future economic trends or instability, or another
recession, may negatively impact our business, leading to:
• More intense competition, which may lead to lower sales or reduced sales growth, loss of market share,
reduced prices, and lower gross margins;
• loss of vendor rebates;
• extended payment terms with customers;
• increased bad debt risks;
• shorter payment terms with vendors;
• reduced access to liquidity and higher financing and interest costs;
• increased currency volatility making hedging more expensive and more difficult to obtain; and
• increased inventory losses related to obsolescence and/or excess quantities.
Each of these factors, individually or in the aggregate, could adversely affect our results of operations,
financial condition and cash flows. A renewed economic downturn may also lead us to take additional restructuring
actions and reduce associated expenses in response to the lower sales volume. We may not be able to adequately
adjust our cost structure in a timely fashion to remain competitive, which may cause our profitability to suffer.
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