Item 2.02 Results of Operations and Financial Condition.
On February 13, 2014, Ingram Micro Inc. (the "Company" or "Ingram Micro") issued
a press release reporting financial results for the fiscal fourth quarter and
year that ended December 28, 2013. The press release is attached hereto as
Exhibit 99.1 and incorporated herein by reference.
The information included herein and in Exhibit 99.1 shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), nor shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such a filing, nor
shall it be deemed to form a part of the Company's public disclosure in the
United States or otherwise.
GAAP to Non-GAAP Reconciliation
The attached press release includes financial results prepared in accordance
with generally accepted accounting principles ("GAAP"). In addition to GAAP
results, Ingram Micro is reporting non-GAAP operating income, non-GAAP operating
margin, non-GAAP net income and non-GAAP earnings per diluted share. These
non-GAAP measures exclude the amortization of intangible assets and charges
associated with reorganization, integration and transition costs. For the 2013
year, these non-GAAP financial measures also exclude a benefit related to the
receipt of $29.5 million from a LCD flat panel class action settlement and the
impact of a $5.0 million reserve recorded for estimated potential charges
related to indirect tax declarations in Europe. Non-GAAP net income and non-GAAP
earnings per diluted share also exclude the impact of foreign exchange gains or
losses related to the translation effect on Euro-based inventory purchases in
Ingram Micro's pan-European entity and a net discrete tax benefit of $28.5
million in 2012, primarily related to the write-off of the historical tax basis
of the investment we had maintained in one of our Latin American subsidiary
Non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and
non-GAAP earnings per diluted share are primary indicators that Ingram Micro's
management uses internally to conduct and measure its business and evaluate the
performance of its consolidated operations and operating segments. Ingram
Micro's management believes these non-GAAP financial measures are useful because
they provide meaningful comparisons to prior periods and an alternate view of
the impact of acquired businesses. These non-GAAP financial measures are used in
addition to and in conjunction with results presented in accordance with GAAP.
These non-GAAP financial measures reflect an additional way of viewing aspects
of our operations that, when viewed with our GAAP results and the accompanying
reconciliations to corresponding GAAP financial measures, provide a more
complete understanding of factors and trends affecting Ingram Micro's business.
A material limitation associated with the use of these non-GAAP measures as
compared to the GAAP measures is that they may not be comparable to other
companies with similar items that present related measures differently. In this
regard, the non-GAAP measures should be considered as a supplement to, and not
as a substitute for or superior to, the corresponding measures calculated in
accordance with GAAP and may not be comparable to similarly titled measures used
by other companies.
Reconciliations of GAAP to non-GAAP financial measures for the fiscal fourth
quarters of 2013 and 2012 and for the 2013 and 2012 fiscal years appear in the
financial statements portion of the attached press release under the heading
"Supplementary Information - Income from Operations - Reconciliation of GAAP to
Non-GAAP Information" and "Supplementary Information -Reconciliation of GAAP to
Non-GAAP Financial Measures."
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description
99.1 Press release dated February 13, 2014 and related financial schedules.