Ingram Micro 2011 Annual Report Download - page 41

Our income from operations in 2011 includes reorganization costs of $5,131, or 0.01% of consolidated net
sales, ($749, or less than 0.01% of net sales, in North America; $1,453, or 0.01% of net sales, in EMEA; $2,730,
or 0.03% of net sales, in Asia-Pacific; and $199, or 0.01% of net sales, in Latin America) as discussed in Note 3
to our consolidated financial statements.
Our income from operations in 2010 includes the release of a portion of our commercial tax reserve in
Brazil totaling $9,112, or 0.03% of consolidated net sales and 0.57% of Latin America net sales.
Our income from operations in 2009 includes the goodwill impairment charge (discussed in Note 4 to our
consolidated financial statements) of $2,490, or 0.01% of consolidated net sales and 0.04% of net sales in Asia-
Pacific, and reorganization and expense-reduction program costs of $37,636, or 0.13% of consolidated net sales
($24,267, or 0.20% of net sales, in North America; $9,462, or 0.10% of net sales, in EMEA; $3,574, or 0.06% of
net sales, in Asia-Pacific; and $333, or 0.02% of net sales, in Latin America), as discussed in Note 3 to our
consolidated financial statements. In addition, our income from operations in 2009 includes the release of a
portion of our commercial tax reserve in Brazil totaling $9,758, or 0.03% of consolidated net sales and 0.67% of
Latin America net sales.
We sell products purchased from many vendors, but generated approximately 21%, 23% and 24% of our net
sales in 2011, 2010 and 2009, respectively, from products purchased from Hewlett-Packard Company. There
were no other vendors and no customers that represented 10% or more of our consolidated net sales in each of
the last three years.
The following table sets forth certain items from our consolidated statement of income as a percentage of
net sales, for each of the fiscal years indicated.
2011 2010 2009
Net sales .................................................. 100.00% 100.00% 100.00%
Cost of sales ............................................... 94.75 94.53 94.34
Gross profit ................................................ 5.25 5.47 5.66
Operating expenses:
Selling, general and administrative ........................... 3.98 4.07 4.53
Impairment of goodwill .................................... — — 0.01
Reorganization costs ...................................... 0.01 0.00 0.12
Income from operations ...................................... 1.26 1.40 1.00
Other expense, net .......................................... 0.19 0.13 0.09
Income before income taxes ................................... 1.07 1.27 0.91
Provision for income taxes .................................... 0.40 0.35 0.23
Net income ................................................ 0.67% 0.92% 0.68%
Results of Operations for the Years Ended December 31, 2011, January 1, 2011 and January 2, 2010
Our consolidated net sales were $36,328,701, $34,588,984 and $29,515,446 in 2011, 2010 and 2009,
respectively, representing year-over-year increases of 5.0% and 17.2% in 2011 and 2010, respectively.
Regionally, net sales from our North American operations were $15,250,560, $14,549,103 and $12,326,555 in
2011, 2010 and 2009, respectively, representing year-over-year increases of 4.8% and 18.0% in 2011 and 2010,
respectively. Net sales from our EMEA operations were $11,371,043, $10,871,237 and $9,483,328 in 2011, 2010
and 2009, respectively, representing year-over-year increases of 4.6% and 14.6% in 2011 and 2010, respectively.
Net sales from our Asia-Pacific operations were $7,920,649, $7,570,403 and $6,243,455 in 2011, 2010 and 2009,
respectively, representing year-over-year increases of 4.6% and 21.3% in 2011 and 2010, respectively. Net sales
from our Latin American operations were $1,786,449, $1,598,241 and $1,462,108 in 2011, 2010 and 2009,
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