Ingram Micro 2011 Annual Report Download - page 78

INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(In 000s, except per share data)
The income from operations in 2011 and 2009 includes reorganization and expense-reduction program costs
of $5,131 and $37,636, respectively ($749 and $24,267 of net charges in North America, respectively; $1,453
and $9,462 of net charges in EMEA, respectively; $2,730 and $3,574 of charges in Asia-Pacific, respectively;
and $199 and $333 of charges in Latin America, respectively), as discussed in Note 3. The income from
operations in Latin America includes the release of a portion of the 2007 commercial tax reserve in Brazil
totaling $9,112 and $9,758 in 2010 and 2009, respectively. Also included in the 2009 income from operations is
the impairment of goodwill totaling $2,490 in Asia-Pacific, as discussed in Note 4.
Fiscal Year End
2011 2010
Identifiable assets
North America ............................................. $3,922,713 $3,862,870
EMEA ................................................... 3,066,825 3,122,435
Asia-Pacific ............................................... 1,640,771 1,635,544
Latin America ............................................. 516,207 463,183
Total .................................................. $9,146,516 $9,084,032
Note 12 — Stock-Based Compensation
Our stock-based compensation expense for 2011, 2010 and 2009 was $30,811, $27,062 and $22,227,
respectively, and the related income tax benefits were $8,760, $7,563 and $6,690, 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 2011, 2010 and 2009 was estimated assuming no dividends and using the following
weighted average assumptions:
Fiscal Year Ended
2011 2010 2009
Expected life of stock options ............................ 5.0years 5.0 years 4.5 years
Risk-free interest rate ................................... 2.11% 2.28% 1.72%
Expected stock volatility ................................ 32.7% 33.8% 31.8%
Fair value of options granted ............................. $6.35 $6.16 $3.11
Equity Incentive Plan
During the second quarter of 2011, our shareholders approved the Ingram Micro Inc. 2011 Incentive Plan
(the “2011 Plan”), which constitutes an amendment and restatement of the Ingram Micro Inc. Amended and
Restated 2003 Equity Incentive Plan and a consolidation with the Ingram Micro Inc. 2008 Executive Incentive
Plan. The 2011 Plan increased the number of shares that we may issue by 13,500, 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 2011 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
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