Tech Data 2015 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2015 Tech Data annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Table of Contents
Savings Plan were $0.1 million , $0.7 million , and $2.5 million for fiscal 2015, 2014 and 2013, respectively. The Company suspended the
employer match for the 401(k) Savings Plan for a portion of fiscal 2014 and 2015.
NOTE 10 — SHAREHOLDERS’ EQUITY
During fiscal 2015, the Company’s Board of Directors authorized a share repurchase program for the repurchase of up to a total of $100.0
million of the Company’s common stock. In conjunction with the Company's share repurchase program, a 10b5-1 plan was executed that
instructs the broker selected by the Company to repurchase shares on behalf of the Company. The amount of common stock repurchased in
accordance with the 10b5-1 plan on any given trading day is determined by a formula in the plan, which is based on the market price of the
Company's common stock and average daily volumes. Shares repurchased by the Company are held in treasury for general corporate purposes,
including issuances under equity incentive and benefit plans. The reissuance of shares from treasury stock is based on the weighted average
purchase price of the shares.
The Company’s common share repurchase and issuance activity for fiscal 2015 and 2014 is summarized as follows:
NOTE 11 — FAIR VALUE MEASUREMENTS
The Company’s assets and liabilities carried or disclosed at fair value are classified in one of the following three categories: Level 1 – quoted
market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in level 1 above
that are observable for the asset or liability, either directly or indirectly; and, Level 3 – unobservable inputs for the asset or liability. The
classification of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value
measurement.
The following table summarizes the valuation of the Company's assets and liabilities that are measured at fair value on a recurring basis:
The Company’s foreign currency forward contracts are measured on a recurring basis based on foreign currency spot rates and forward rates
quoted by banks or foreign currency dealers (Level 2 criteria) and are marked-to-market each period with gains and losses on these contracts
recorded in the Company’s Consolidated Statement of Income on a basis consistent with the classification of the change in the fair value of the
underlying transactions giving rise to these foreign currency exchange gains and losses in the period in which their value changes, with the
offsetting amount for unsettled positions being included in either other current assets or other current liabilities in the Consolidated Balance
Sheet. See further discussion below in Note 12 – Derivative Instruments.
The acquisition-related contingent consideration represents the future earnout payments related to the Company's acquisitions. The Company
estimates the fair value of this Level 3 contingent consideration liability at each reporting date using a discounted cash flow analysis, which
requires the evaluation of significant unobservable inputs that include projected revenues, expenses and cash flows, and assumed discount
rates. During fiscal 2015, adjustments to the fair value of acquisition-related contingent consideration of $0.2 million were recorded as a
component of "selling, general and administrative expenses" and $0.2 million was recorded to "other
57
Shares
Weighted-
average
price per
share
Treasury stock balance at January 31, 2013
21,436,566
42.26
Shares of treasury stock reissued
(259,436
)
Treasury stock balance at January 31, 2014
21,177,130
42.26
Shares of common stock repurchased under share repurchase program
896,718
59.10
Shares of treasury stock reissued
(207,779
)
Treasury stock balance at January 31, 2015
21,866,069
42.95
January 31, 2015 January 31, 2014
Fair value measurement category Fair value measurement category
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
(in thousands)
Assets
Foreign currency forward contracts
$
9,903
6,160
Liabilities
Foreign currency forward contracts
$
5,411
2,423
Acquisition-related contingent consideration
3,381
10,571