Ingram Micro 2013 Annual Report Download - page 26

Table of Contents
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.
•   — There are various claims, lawsuits and pending actions against us, including those noted in Part I, Item 3. “Legal
Proceedings.” 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 significant 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 segments; therefore, we are
reporting this as a separate amount. The following tables set forth our net sales by reportable segment and the percentage of total net sales represented thereby,
as well as operating income and operating margin by reportable segment for each of the fiscal years indicated. Beginning in 2012, we added a reportable
segment for mobility which reflects our acquisition of BrightPoint.
Results of Operations for the Year Ended December 28, 2013 and December 29, 2012:
2013
2012
Change - Increase (Decrease)
Net sales by reporting segment:
North America $16,433,994
39%
$ 15,880,103
42%
$553,891
3.5%
Europe 10,843,514
25
10,614,811
28
228,703
2.2
Asia-Pacific 8,698,116
20
8,347,170
22
350,946
4.2
Latin America 2,051,899
5
1,943,841
5
108,058
5.6
BrightPoint 4,526,395
11
1,041,374
3
3,485,021
334.7
Total $42,553,918
100%
$37,827,299
100%
$4,726,619
12.5%
2013
2012
Change - Increase (Decrease)
Operating income and operating margin
by reporting segment:
North America $296,263
1.80%
$283,689
1.79%
$12,574
0.01 %
Europe 84,966
0.78
103,278
0.97
(18,312)
(0.19)
Asia-Pacific 74,394
0.86
53,613
0.64
20,781
0.22
Latin America 43,080
2.10
37,700
1.94
5,380
0.16
BrightPoint 46,512
1.03
11,290
1.08
35,222
(0.05)
Stock-based compensation (30,340)
—
(27,218)
—
(3,122)
—
Total $514,875
1.21%
$462,352
1.22%
$52,523
(0.01)%
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