Ingram Micro 2011 Annual Report Download - page 45

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Quarterly Data; Seasonality
Our quarterly operating results have fluctuated significantly in the past and will likely continue to do so in
the future as a result of various factors as more fully described in Part I, Item 1A. “Risk Factors.”
The following table sets forth certain unaudited quarterly historical financial data for each of the eight
quarters in the two years ended December 31, 2011. This unaudited quarterly information has been prepared on
the same basis as the annual information presented elsewhere herein and, in our opinion, includes all adjustments
necessary for a fair statement of the selected quarterly information. This information should be read in
conjunction with the consolidated financial statements and notes thereto included elsewhere in this Annual
Report on Form 10-K. The operating results for any quarter shown are not necessarily indicative of results for
any future period.
Net
Sales
Gross
Profit
Income
From
Operations
Income
Before
Income
Taxes
Net
Income
Diluted
Earnings
Per
Share
2011
Quarter Ended:(1)(2)
April 2, 2011 ................... $8,723,712 $454,072 $100,054 $ 81,405 $ 56,310 $0.34
July 2, 2011 .................... 8,749,025 459,232 97,148 83,822 59,731 0.37
October 1, 2011 ................ 8,903,020 440,720 85,379 67,094 23,326 0.15
December 31, 2011 .............. 9,952,944 554,258 176,065 155,550 104,873 0.68
2010
Quarter Ended:(2)(3)
April 3, 2010 ................... $8,095,954 $441,462 $105,689 $ 97,232 $ 70,328 $0.42
July 3, 2010 .................... 8,156,328 437,453 104,576 94,723 67,727 0.41
October 2, 2010 ................ 8,453,835 453,525 106,911 88,562 64,989 0.41
January 1, 2011 ................. 9,882,867 559,851 167,257 157,544 115,016 0.71
(1) Includes the net pre-tax impact of reorganization costs (credits) as follows: first quarter, ($269); third
quarter, $1,156; and fourth quarter, $4,244. The third quarter includes a pre-tax loss of $5,624 from the
termination of a cash flow hedge and write-off of remaining unamortized costs related to the senior
unsecured loan and a non-cash charge to record a valuation allowance of $24,810 against all of the deferred
tax assets of the operating subsidiary in Brazil.
(2) Diluted earnings per share is calculated independently each quarter and for the full year based upon their
respective weighted average shares outstanding. Therefore, the sum of the quarterly earnings per share may
not equal the annual earnings per share reported.
(3) Includes the pre-tax impact of reorganization costs (credits) as follows: first quarter, ($169); second quarter,
($189); and fourth quarter, $1,495. The first quarter includes a pre-tax gain of $2,380 on the sale of land and
building in EMEA, recorded as a reduction of SG&A expenses, while the fourth quarter includes a $9,112
partial release of the reserve for Brazilian commercial taxes related to a period which has expired under the
statute of limitations, recorded as a reduction of cost of sales.
Liquidity and Capital Resources
Cash Flows
We finance our working capital needs and investments in the business largely through net income before
noncash items, available cash, trade and supplier credit, and various financing facilities. As a distributor, our
business requires significant investment in working capital, particularly trade accounts receivable and inventory,
which is partially financed by vendor trade accounts payable. As a general rule, when sales volumes are
increasing, our net investment in working capital dollars typically increases, which generally results in decreased
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