Ingram Micro 2011 Annual Report Download - page 76

INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(In 000s, except per share data)
have agreements with the finance companies that would require us to repurchase certain inventory, which might
be repossessed from the customers by the finance companies. Due to various reasons, including among other
items, the lack of information regarding the amount of saleable inventory purchased from us still on hand with
the customer at any point in time, repurchase obligations relating to inventory cannot be reasonably estimated.
Repurchases of inventory by us under these arrangements have been insignificant to date.
We have guarantees to third parties that provide financing to a limited number of our customers. Net sales
under these arrangements accounted for less than one percent of our consolidated net sales for 2011, 2010 and
2009. The guarantees require us to reimburse the third party for defaults by these customers up to an aggregate of
$11,000. The fair value of these guarantees has been recognized as cost of sales to these customers and is
included in other accrued liabilities.
We lease the majority of our facilities and certain equipment under noncancelable operating leases. Rental
expense, including obligations related to IT outsourcing services, for the years ended 2011, 2010 and 2009 was
$93,725, $89,484 and $124,831, respectively.
Future minimum rental commitments on operating leases that have remaining noncancelable lease terms as
well as minimum contractual payments under the IT outsourcing agreements as of December 31, 2011 are as
follows:
2012 .................................................................... $ 79,477
2013 .................................................................... 61,988
2014 .................................................................... 51,407
2015 .................................................................... 35,479
2016 .................................................................... 22,761
Thereafter ................................................................ 81,204
$332,316
The above minimum payments have not been reduced by minimum sublease rental income of $17,014 due
in the future under noncancelable sublease agreements as follows: $5,063, $4,905, $4,319 and $2,727 in 2012,
2013, 2014 and 2015, respectively.
Note 11 — Segment Information
We operate predominantly in a single industry segment as a distributor of IT products and supply chain
solutions worldwide. Our operating segments are based on geographic location, and the measure of segment
profit is income from operations. We do not allocate stock-based compensation recognized (see Note 12) to our
operating units; therefore, we are reporting this as a separate amount.
Geographic areas in which we operated during 2011 include North America (United States and Canada),
EMEA (Austria, Belgium, France, Germany, Hungary, Italy, the Netherlands, Spain, Sweden, Switzerland and
the United Kingdom), Asia-Pacific (Australia, the People’s Republic of China including Hong Kong, India,
Indonesia, Malaysia, New Zealand, Singapore and Thailand), and Latin America (Argentina, Brazil, Chile,
Mexico, Peru, and our Latin American export operations in Miami).
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