Ingram Micro 2010 Annual Report Download - page 62

In 2009, we acquired certain assets of Computacenter Distribution in the United Kingdom and the assets and
liabilities of VAD in New Zealand, which further strengthened our distribution capabilities in the mid- to high-end
enterprise markets in EMEA and Asia Pacific. Also in 2009, we acquired the assets and liabilities of Vantex, which
operated in five countries in the Asia Pacific region. The Vantex acquisition further strengthened our distribution
capabilities in the auto identification and data capture/point of sale (“AIDC/POS”) markets in Asia Pacific. These
businesses were acquired for an aggregate cash price of $32,681 plus an estimated earn-out amount of $935, which
have been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values
on the transaction dates. The allocation resulted in goodwill of $2,490 in Asia Pacific and total identifiable
intangible assets of $12,133 in EMEA and Asia Pacific, primarily related to vendor and customer relationships, and
trade names with estimated useful lives of up to 10 years. As discussed in Note 2, we recorded a charge for the full
impairment of the $2,490 of newly recorded goodwill from the two Asia Pacific acquisitions in the second quarter of
2009.
In 2008, we acquired Eurequat SA in France, Intertrade A.F. AG in Germany, Paradigm Distribution Ltd. in the
United Kingdom and Cantechs Group in China. These acquisitions further expanded our value-added distribution of
AIDC/POS solutions in EMEA and Asia Pacific. These businesses were acquired for an aggregate cash price of
$12,347, including related acquisition costs, plus an estimated earn-out. The purchase price was allocated to the
assets acquired and liabilities assumed based on their estimated fair values on the transaction date, including
identifiable intangible assets of $7,586, primarily related to vendor and customer relationships with estimated
useful lives of 10 years. The resulting goodwill recorded in 2008 was $3,608 and $1,584 in EMEA and Asia Pacific,
respectively. In 2009, we paid the sellers of Eurequat SA a partial payment of $234 under the earn-out provisions of
the purchase agreement, which was previously recorded as a payable at January 3, 2009.
In 2009, we paid the sellers of AVAD $2,500 to settle the final earn-out and the balance to acquire certain
trademark rights, which have been included in our identifiable intangible assets with estimated useful lives of
10 years.
In 2009, we sold our broadline operations in Denmark. The sales proceeds and the related gain on sale were not
material.
All acquisitions for the periods presented above were not material, individually or in aggregate, to us 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:
2010 2009
Fiscal Year End
Land .................................................... $ 5,321 $ 5,609
Buildings and leasehold improvements ........................... 126,832 144,672
Distribution equipment ....................................... 240,028 259,432
Computer equipment and software............................... 449,738 430,440
821,919 840,153
Accumulated depreciation . . ................................... (574,524) (618,443)
$ 247,395 $ 221,710
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INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)