Ingram Micro 2011 Annual Report Download - page 40

recorded a charge of $24,810 in the third quarter of 2011 to provide a valuation allowance on our deferred
tax assets in Brazil, primarily as a result of the continued losses incurred in that country. Our effective tax
rate includes the impact of not providing taxes on undistributed foreign earnings considered indefinitely
reinvested. Material changes in our estimates of cash, working capital and long-term investment
requirements in the various jurisdictions in which we do business could impact our effective tax rate if we
no longer consider our foreign earnings to be indefinitely reinvested.
The provision for tax liabilities and recognition of tax benefits involves evaluations and judgments of
uncertainties in the interpretation of complex tax regulations by various taxing authorities. In situations
involving uncertain tax positions related to income tax matters, we do not recognize benefits unless their
sustainability is deemed more likely than not. As additional information becomes available, or these
uncertainties are resolved with the taxing authorities, revisions to these liabilities or benefits may be
required, resulting in additional provision for or benefit from income taxes reflected in our consolidated
statement of income.
•Contingencies and Litigation — There are various claims, lawsuits and pending actions against us,
including those noted in Part I, Item 3. If a loss arising from these actions is probable and can be
reasonably estimated, we record the amount of the estimated loss. If the loss is estimated using a range
within which no point is more probable than another, the minimum estimated liability is recorded. If a
loss is reasonably possible, but not probable, we disclose the nature of the contingency and, if
quantifiable, the possible loss or range of loss that could result from the resolution of the matter. As
additional information becomes available, we reassess any potential liability related to these actions and
may need to revise our estimates. Such revisions or ultimate resolution of these matters could materially
impact our consolidated results of operations, cash flows or financial position (see Note 10 to our
consolidated financial statements).
Results of Operations
We do not allocate stock-based compensation expense (see Note 12 to our consolidated financial
statements) to our operating units; therefore, we are reporting this as a separate amount. The following tables set
forth our net sales by geographic region and the percentage of total net sales represented thereby, as well as
operating income and operating margin by geographic region for each of the fiscal years indicated.
2011 2010 2009
Net sales by geographic region:
North America .................. $15,250,560 42.0% $14,549,103 42.1% $12,326,555 41.8%
EMEA ......................... 11,371,043 31.3 10,871,237 31.4 9,483,328 32.1
Asia-Pacific .................... 7,920,649 21.8 7,570,403 21.9 6,243,455 21.1
Latin America ................... 1,786,449 4.9 1,598,241 4.6 1,462,108 5.0
Total .......................... $36,328,701 100.0% $34,588,984 100.0% $29,515,446 100.0%
2011 2010 2009
Operating income and operating margin by
geographic region:
North America ............................. $281,155 1.84% $230,458 1.58% $105,679 0.86%
EMEA ................................... 136,306 1.20 135,681 1.25 92,856 0.98
Asia-Pacific ............................... 46,508 0.59 113,003 1.49 83,704 1.34
Latin America ............................. 25,488 1.43 32,353 2.02 35,928 2.46
Stock-based compensation expense ............ (30,811) — (27,062) — (22,227) —
Total .................................... $458,646 1.26% $484,433 1.40% $295,940 1.00%
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