Ingram Micro 2010 Annual Report Download - page 74

2010 2009
Fiscal Year End
Identifiable assets
North America .......................................... $3,862,870 $3,586,238
EMEA ................................................ 3,122,435 2,753,847
Asia Pacific ............................................ 1,635,544 1,373,553
Latin America .......................................... 463,183 465,712
Total ............................................... $9,084,032 $8,179,350
Note 12 — Stock-Based Compensation
Our stock-based compensation expense for 2010, 2009 and 2008 was $27,062, $22,227 and $14,845,
respectively, and the related income tax benefits were $7,563, $6,690 and $3,469, respectively.
We have 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 our common stock over the most recent period
commensurate with the estimated expected life of our 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 2010, 2009 and 2008 was estimated assuming no dividends and using the following weighted
average assumptions:
2010 2009 2008
Fiscal Year Ended
Expected life of stock options .......................... 5.0years 4.5 years 4.5 years
Risk-free interest rate ................................ 2.28% 1.72% 3.16%
Expected stock volatility .............................. 33.8% 31.8% 32.9%
Fair value of options granted ........................... $6.16 $3.11 $5.79
Equity Incentive Plan
We currently have a single equity-based incentive plan approved by our 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 our Board of Directors. Under the 2003
Plan, the existing authorized pool of shares available for grant is a fungible pool, where the authorized share limit is
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. We grant restricted stock and
restricted stock units, in addition to stock options, to key employees and members of our Board of Directors.
Options granted generally vest over a period of three years and have expiration dates not longer than 10 years. A
portion of the restricted stock and restricted stock units vest over a time period of one to three years. The remainder
of the restricted stock and restricted stock units vests upon achievement of certain performance measures over a
time period of one to three years. In 2010, the performance measures for restricted stock and restricted stock units
for grants to management are based on earnings growth and return on invested capital, whereas in 2009, they were
based on economic profit and profit before tax. As of January 1, 2011, approximately 5,162,000 shares were
available for grant under the 2003 Plan, taking into account granted options, time vested restricted stock units/
awards and performance vested restricted stock units assuming maximum achievement.
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INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)