Document and Entity Information
Document and Entity Information | 9 Months Ended |
Oct. 01, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Oct. 1, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | IM |
Entity Registrant Name | INGRAM MICRO INC |
Entity Central Index Key | 1,018,003 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 149,704,044 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 689,076 | $ 935,267 |
Trade accounts receivable (less allowances of $65,654 and $59,437 at October 1, 2016 and January 2, 2016, respectively) | 5,270,505 | 5,663,754 |
Inventory | 3,839,219 | 3,457,016 |
Other current assets | 556,152 | 475,813 |
Total current assets | 10,354,952 | 10,531,850 |
Property and equipment, net | 384,610 | 381,414 |
Goodwill | 946,289 | 843,001 |
Intangible assets, net | 429,035 | 374,674 |
Other assets | 179,055 | 169,750 |
Total assets | 12,293,941 | 12,300,689 |
Current liabilities: | ||
Accounts payable | 6,024,197 | 6,353,511 |
Accrued expenses | 639,727 | 620,501 |
Short-term debt and current maturities of long-term debt | 534,213 | 134,103 |
Total current liabilities | 7,198,137 | 7,108,115 |
Long-term debt, less current maturities | 792,576 | 1,090,702 |
Other liabilities | 162,436 | 134,086 |
Total liabilities | 8,153,149 | 8,332,903 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred Stock, $0.01 par value, 25,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 1,515,925 | 1,503,043 |
Treasury stock, 46,787 and 46,958 shares at October 1, 2016 and January 2, 2016, respectively | (890,059) | (892,925) |
Retained earnings | 3,648,175 | 3,513,101 |
Accumulated other comprehensive loss | (135,214) | (157,387) |
Total stockholders’ equity | 4,140,792 | 3,967,786 |
Total liabilities and stockholders’ equity | 12,293,941 | 12,300,689 |
Class A Common Stock, $0.01 par value, 500,000 shares authorized; 196,491 and 195,320 shares issued and 149,704 and 148,362 shares outstanding at October 1, 2016 and January 2, 2016, respectively | ||
Stockholders’ equity: | ||
Common Stock | 1,965 | 1,954 |
Class B Common Stock, $0.01 par value, 135,000 shares authorized; no shares issued and outstanding | ||
Stockholders’ equity: | ||
Common Stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Allowances for trade accounts receivable | $ 65,654 | $ 59,437 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 46,787,000 | 46,958,000 |
Class A Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock, shares issued (in shares) | 196,491,000 | 195,320,000 |
Common Stock, shares outstanding (in shares) | 149,704,000 | 148,362,000 |
Class B Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 135,000,000 | 135,000,000 |
Common Stock, shares issued (in shares) | 0 | 0 |
Common Stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 10,226,826 | $ 10,515,880 | $ 29,686,033 | $ 31,713,584 |
Cost of sales | 9,511,447 | 9,852,297 | 27,620,012 | 29,775,715 |
Gross profit | 715,379 | 663,583 | 2,066,021 | 1,937,869 |
Operating expenses: | ||||
Selling, general and administrative | 550,270 | 510,990 | 1,673,279 | 1,526,340 |
Amortization of intangible assets | 20,574 | 14,206 | 73,220 | 47,226 |
Reorganization costs | 7,471 | 18,958 | 31,727 | 29,234 |
Impairment of internally developed software | 0 | 0 | 0 | 115,856 |
Loss on sale of affiliate | 0 | 0 | 14,878 | 0 |
Total operating expenses | 578,315 | 544,154 | 1,793,104 | 1,718,656 |
Income from operations | 137,064 | 119,429 | 272,917 | 219,213 |
Other expense (income): | ||||
Interest income | (1,956) | (991) | (5,214) | (2,650) |
Interest expense | 19,640 | 18,429 | 58,264 | 61,799 |
Net foreign currency exchange loss | 3,728 | 12,264 | 12,842 | 26,540 |
Other | 3,020 | 313 | 10,218 | 7,256 |
Total other expense (income) | 24,432 | 30,015 | 76,110 | 92,945 |
Income before income taxes | 112,632 | 89,414 | 196,807 | 126,268 |
Provision for income taxes | 34,109 | 24,492 | 61,733 | 52,364 |
Net income | $ 78,523 | $ 64,922 | $ 135,074 | $ 73,904 |
Basic earnings per share (in dollars per share) | $ 0.52 | $ 0.43 | $ 0.91 | $ 0.48 |
Diluted earnings per share (in dollars per share) | 0.52 | 0.42 | 0.89 | 0.47 |
Cash dividends paid per common share (in dollars per share) | $ 0 | $ 0.10 | $ 0 | $ 0.10 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 78,523 | $ 64,922 | $ 135,074 | $ 73,904 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (8,959) | (63,195) | 22,173 | (128,452) |
Other comprehensive income (loss), net of tax | (8,959) | (63,195) | 22,173 | (128,452) |
Comprehensive income (loss) | $ 69,564 | $ 1,727 | $ 157,247 | $ (54,548) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 135,074 | $ 73,904 |
Adjustments to reconcile net income to cash (used) provided by operating activities: | ||
Depreciation and amortization | 151,374 | 113,435 |
Stock-based compensation | 29,564 | 28,291 |
Excess tax benefit from stock-based compensation | (8,437) | (4,334) |
Loss (gain) on sale of property and equipment | (1,606) | (272) |
Impairment of internally developed software | 0 | 115,856 |
Loss on sale of affiliate | 14,878 | 0 |
Noncash charges for interest and bond discount amortization | 2,500 | 2,212 |
Deferred income taxes | (1,152) | 1,553 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Trade accounts receivable | 529,205 | 1,078,501 |
Inventory | (355,948) | 400,880 |
Other current assets | (63,572) | (107,241) |
Accounts payable | (400,839) | (663,616) |
Change in book overdrafts | (61,653) | (70,825) |
Accrued expenses | (106,288) | (2,463) |
Cash (used) provided by operating activities | (136,900) | 965,881 |
Cash flows from investing activities: | ||
Capital expenditures | (80,229) | (99,022) |
Sale of marketable securities, net | 4,700 | 5,000 |
Proceeds from sale of property and equipment | 1,237 | 1,145 |
Proceeds from sale of affiliate | 27,847 | 0 |
Acquisitions, net of cash acquired | (173,311) | (100,855) |
Cash used by investing activities | (219,756) | (193,732) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 3,296 | 10,279 |
Repurchase of Class A Common Stock | 0 | (205,608) |
Excess tax benefit from stock-based compensation | 8,437 | 4,334 |
Excess tax benefit from stock-based compensation | (2,091) | (2,358) |
Dividends paid to shareholders | 0 | (15,196) |
Net proceeds from (repayments of) revolving and other credit facilities | 87,160 | (301,156) |
Cash provided (used) by financing activities | 96,802 | (509,705) |
Effect of exchange rate changes on cash and cash equivalents | 13,663 | (9,904) |
Increase (decrease) in cash and cash equivalents | (246,191) | 252,540 |
Cash and cash equivalents, beginning of period | 935,267 | 692,777 |
Cash and cash equivalents, end of period | $ 689,076 | $ 945,317 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Oct. 01, 2016 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Ingram Micro Inc. and its subsidiaries are primarily engaged in the distribution of information technology (“IT”) products, commerce and fulfillment services and mobile device lifecycle services worldwide. Ingram Micro Inc. and its subsidiaries operate in North America; Europe; Asia-Pacific (which includes Middle East and Africa); and Latin America. The consolidated financial statements include the accounts of Ingram Micro Inc. and its subsidiaries. Unless the context otherwise requires, the use of the terms “Ingram Micro,” “we,” “us” and “our” in these notes to the consolidated financial statements refers to Ingram Micro Inc. and its subsidiaries. These consolidated financial statements have been prepared by us, without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited consolidated financial statements contain all material adjustments (consisting of only normal, recurring adjustments) necessary to fairly state our consolidated financial position as of October 1, 2016 , our consolidated results of operations and comprehensive income (loss) for the thirteen and thirty-nine weeks ended October 1, 2016 and October 3, 2015 and our consolidated cash flows for the thirty-nine weeks ended October 1, 2016 and October 3, 2015 . All significant intercompany accounts and transactions have been eliminated in consolidation. As permitted under the applicable rules and regulations of the SEC, these consolidated financial statements do not include all disclosures and footnotes normally included with annual consolidated financial statements and, accordingly, should be read in conjunction with the consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K filed with the SEC for the year ended January 2, 2016 . The consolidated results of operations for the thirteen and thirty-nine weeks ended October 1, 2016 may not be indicative of the consolidated results of operations that can be expected for the full year. Book Overdrafts Book overdrafts of $366,975 and $428,628 as of October 1, 2016 and January 2, 2016 , respectively, represent checks issued on disbursement bank accounts but not yet paid by such banks. These amounts are classified as accounts payable in our consolidated balance sheet. We typically fund these overdrafts through normal collections of funds or transfers from other bank balances at other financial institutions. Under the terms of our facilities with the banks, the respective financial institutions are not legally obligated to honor the book overdraft balances as of October 1, 2016 and January 2, 2016 , or any balance on any given date. Trade Accounts Receivable Factoring Programs We have several uncommitted factoring programs under which trade accounts receivable of several large customers may be sold, without recourse, to financial institutions. Available capacity under these programs is dependent on the amount of trade accounts receivable already sold into these programs and the financial institutions’ willingness to purchase such receivables. At October 1, 2016 and January 2, 2016 , we had a total of $217,857 , and $388,358 , respectively, of trade accounts receivable sold to and held by financial institutions under these programs. Factoring fees of $1,143 and $947 incurred for the thirteen weeks ended October 1, 2016 and October 3, 2015 , respectively, and $4,056 and $3,263 incurred for the thirty-nine weeks ended October 1, 2016 and October 3, 2015 , respectively, related to the sale of trade accounts receivable under these facilities are included in “other” in the other expense (income) section of our consolidated statement of income. Impairment of Internally Developed Software We began our program to deploy a new global ERP system in 2008. Since that period, the business has significantly diversified and new technologies allow legacy systems and diverse applications to easily be connected in a modular way, which allows these legacy systems to be part of a flexible, powerful and efficient solution. After careful evaluation, we concluded that this combined systems strategy is better aligned with our evolving business model and currently is more flexible and economical than implementation of a single global system. Accordingly, we stopped our global ERP deployment and recorded a non-cash, pre-tax charge related to the impairment of internally developed software of $115,856 during the second quarter of 2015. We recognized a tax benefit on the impairment at the applicable rates, partially offset by an increase in the valuation allowance on foreign tax credits of $14,580 as a result of the decision to stop deployments. Loss on the Sale of an Affiliate In the second quarter of 2016, we sold our AVAD subsidiary for cash proceeds of $27,847 as the niche operations were not deemed core to our current strategies and we believe that our operational focus and capital resources could be more effectively deployed elsewhere. As a result, we recorded a loss on the sale of affiliate of $14,878 , which included the write-off of a previously acquired trade name of $12,525 . There were no additional impairments to our other intangible assets. Change in Accounting Principle and Reclassification During the thirty-nine weeks ended October 1, 2016 , we adopted the provisions of Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs", which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. Additionally, we also adopted ASU 2015-15, "Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-Of-Credit Arrangements and Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting". ASU 2015-15 allows debt issuance costs to be presented as an asset and amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As a result of the adoption of these ASUs, our consolidated balance sheet as of January 2, 2016 reflects a $6,571 reduction of other long-term assets and long-term debt, respectively, to conform to the current year presentation. |
Plan of Merger
Plan of Merger | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Plan of Merger | Plan of Merger On February 17, 2016, we announced that we entered into an agreement and plan of merger (the “Merger Agreement”) with Tianjin Tianhai Investment Company, Ltd. (“Tianjin Tianhai”) a joint stock company existing under the laws of the People’s Republic of China (the “PRC”) and listed on the Shanghai Stock Exchange, and GCL Acquisition, Inc., a Delaware corporation and an indirect subsidiary of Tianjin Tianhai (“Merger Subsidiary”), pursuant to which, subject to the terms and conditions set forth in the Merger Agreement, Merger Subsidiary will be merged with and into Ingram Micro Inc. (the “Merger”), with Ingram Micro Inc. surviving as a subsidiary of Tianjin Tianhai. Concurrently with the execution of the Merger Agreement, HNA Group Co., Ltd., a limited company existing under the laws of the PRC (“HNA Group” or the “Guarantor”), an affiliate of Parent and Merger Subsidiary, has executed and delivered a guarantee (the “Guarantee”) in favor of the Company. Pursuant to the Guarantee, the Guarantor has agreed to (i) guarantee Tianjin Tianhai’s obligation to pay the Merger Consideration (as defined below) and any reverse termination fee in accordance with the terms of the Merger Agreement and (ii) assume the rights and obligations under the Merger Agreement in the event that the approval of Tianjin Tianhai’s shareholders is not obtained in accordance with the terms of the Guarantee. On July 29, 2016, Tianjin Tianhai’s shareholders approved the Merger. In connection with the Merger process, the Merger Agreement was presented to and approved by Ingram Micro’s shareholders at a special meeting on June 21, 2016. On August 11, 2016, we announced that the End Date by which the Merger must be completed had been extended to November 13, 2016 pursuant to the Merger Agreement. The transaction is currently under review by the Committee on Foreign Investment in the United States (“CFIUS”). The consummation of the Merger is subject to the satisfaction or permitted waiver of closing conditions set forth in the Merger Agreement and is expected to occur in the fourth quarter of 2016. Upon closing, we will become a part of HNA Group and will operate as a subsidiary of Tianjin Tianhai. We expect to continue to have our headquarters in Irvine, California and expect that our executive management team will remain in place, with Alain Monié continuing to lead as CEO. At the effective time of the Merger, each share of Ingram Micro’s Class A common stock issued and outstanding immediately before the closing, other than certain excluded shares, will be converted to the right to receive $38.90 in cash, without interest (the “Merger Consideration”). Shares of Class A common stock held by Ingram Micro (other than shares in an employee stock plan of Ingram Micro) or any of its subsidiaries and shares owned by Tianjin Tianhai or any of its subsidiaries, and shares owned by stockholders who have properly exercised and perfected appraisal rights under Delaware law will not be entitled to receive the Merger Consideration. Consummation of the Merger is subject to customary closing conditions and contains customary representations, warranties and covenants by each party. During the period between the signing of the Merger Agreement and the effective time of the Merger, Ingram Micro is required to operate its business in the ordinary course and consistent with past practice. Under the Merger Agreement, Ingram Micro shall not declare dividends or repurchase shares of its common stock and shall maintain an average of month-end cash and cash equivalents for the three month period prior to the closing in excess of US $424,000 . The Merger Agreement also requires that Ingram Micro abide by customary “no-shop” restrictions on its ability to solicit alternative acquisition proposals from third parties and to provide non-public information to and enter into discussions with third parties regarding alternative acquisition proposals. The Merger Agreement provides that Ingram Micro may not without the consent of Tianjin Tianhai (which consent shall not be unreasonably withheld) incur new debt or make new loans, except for (a) any indebtedness or guarantee incurred in the ordinary course of business consistent with past practice pursuant to Ingram Micro’s existing credit or banking facilities, trade accounts receivable backed financing programs or trade accounts receivable factoring programs, (b) any refinancings, renewals or amendments in the ordinary course of business consistent with past practice of Ingram Micro’s existing credit or banking facilities, trade accounts receivable backed financing programs or trade accounts receivable factoring programs, and (c) entering into any long-term committed facilities less than US $100,000 . |
Stock Repurchase and Dividends
Stock Repurchase and Dividends | 9 Months Ended |
Oct. 01, 2016 | |
Equity [Abstract] | |
Stock Repurchase and Dividends | Stock Repurchase and Dividends Dividends Paid to Shareholders On July 30, 2015, we announced that our Board of Directors had authorized the adoption of a quarterly cash dividend policy. Under the cash dividend policy, holders of our common stock receive dividends as declared by our Board of Directors. During the thirteen and thirty-nine weeks ended October 3, 2015, we declared a cash dividend of $0.10 per share, totaling $15,196 , to stockholders of record as of the close of business on September 1, 2015, which was paid on September 15, 2015. Pursuant to the Merger Agreement, our dividends paid to shareholders have been discontinued effective February 17, 2016. Share Repurchase Program In July 2015, our Board of Directors authorized a three-year, $300,000 share repurchase program, which supplemented our previously authorized $400,000 share repurchase program which was completely utilized in 2015. Our $300,000 share repurchase program expires on July 29, 2018, and had $165,068 remaining for repurchase at October 1, 2016 . Pursuant to the Merger Agreement, our share repurchase program has been discontinued effective February 17, 2016. Under these programs, we may repurchase shares in the open market and through privately negotiated transactions. Our repurchases are funded with available borrowing capacity and cash. The timing and amount of specific repurchase transactions will depend upon market conditions, corporate considerations and applicable legal and regulatory requirements. We account for repurchased shares of common stock as treasury stock. Treasury shares are recorded at cost and are included as a component of stockholders’ equity in our consolidated balance sheet. We have issued shares of common stock out of our cumulative balance of treasury shares. Such shares are issued to certain of our associates upon the exercise of their options or vesting of their equity awards under the Ingram Micro Inc. 2011 Incentive Plan, as amended (the "2011 Incentive Plan") (see Note 5, "Stock-Based Compensation"). Our treasury stock issuance activity for the thirty-nine weeks ended October 1, 2016 is summarized in the table below: Shares Weighted Amount Cumulative balance of treasury stock at January 2, 2016 46,958 $ 19.02 $ 892,925 Issuance of Class A Common Stock (171 ) 16.76 (2,866 ) Cumulative balance of treasury stock at October 1, 2016 46,787 $ 19.02 $ 890,059 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 01, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We report a dual presentation of Basic Earnings per Share (“Basic EPS”) and Diluted Earnings per Share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the reported period. Diluted EPS uses the treasury stock method to compute the potential dilution that could occur if stock-based awards and other commitments to issue common stock were exercised. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation, as their inclusion would have an anti-dilutive effect. The computation of Basic and Diluted EPS is as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Net income $ 78,523 $ 64,922 $ 135,074 $ 73,904 Weighted average shares 149,677 152,203 148,999 154,955 Basic EPS $ 0.52 $ 0.43 $ 0.91 $ 0.48 Weighted average shares, including the dilutive effect of stock-based awards (2,241 and 2,539 for the thirteen weeks ended October 1, 2016 and October 3, 2015, respectively, and 2,837 and 3,061 for the thirty-nine weeks ended October 1, 2016, and October 3, 2015, respectively) 151,918 154,742 151,836 158,016 Diluted EPS $ 0.52 $ 0.42 $ 0.89 $ 0.47 There were 0 and 2,869 stock-based awards for the thirteen weeks ended October 1, 2016 and October 3, 2015 , respectively, and 3 and 2,444 stock based awards for the thirty-nine weeks ended October 1, 2016 , and October 3, 2015 , respectively, that were not included in the computation of Diluted EPS because the exercise price was greater than the average market price of the Class A Common Stock during the respective periods, thereby having an antidilutive effect. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We currently have a single stock incentive plan, the 2011 Incentive Plan, amended during the second quarter of 2013, and again in the second quarter of 2016, for the granting of equity and cash-settled incentive awards. During the second quarter of 2016, our stockholders approved a second amendment of the 2011 Incentive Plan, which increased the number of shares that we may issue by 10,000 . The authorized pool of shares available for grant is a fungible pool. The authorized share limit is reduced by one share for every share subject to a stock option or stock appreciation right granted and 2.37 shares for every share granted after June 8, 2011 ( 2.29 shares after June 7, 2013) under any award other than an option or stock appreciation right for awards. We grant time- and/or performance-vested restricted stock and/or restricted stock units, in addition to stock options, to key employees and members of our Board of Directors. The performance measures for vesting of restricted stock and restricted stock units for grants to management for the periods presented are based on earnings growth, return on invested capital, total shareholder return, income from operations as a percent of revenue and income before tax. As of October 1, 2016 , approximately 20,468 shares were available for grant under the 2011 Incentive Plan, taking into account granted options, time-vested restricted stock units/awards and performance-vested restricted stock units assuming maximum achievement. Equity Awards Equity awards granted under the 2011 Incentive Plan were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, October 3, October 1, October 3, Stock options granted — — 5 839 Restricted stock and restricted stock units granted 24 48 517 1,395 Stock-based compensation expense $ 7,840 $ 10,762 $ 27,137 $ 28,291 Related income tax benefit $ 2,613 $ 3,252 $ 9,058 $ 9,065 Exercised stock options — 197 162 567 Vested restricted stock and/or restricted stock units (a) 78 47 1,877 1,455 (a) Includes 13 and 0 shares, for the thirteen weeks ended October 1, 2016 and October 3, 2015 , respectively, and 425 and 1,015 shares, for the thirty-nine weeks ended October 1, 2016 and October 3, 2015 , respectively, which were issued based on performance-based grants previously approved by the Human Resources Committee of the Board of Directors. The remainder of the shares are time-based grants. Cash Awards On June 1, 2016, we granted 24,569 cash awards of which 12,285 and 12,284 are time-vested and performance-vested, respectively. Our time-vested cash awards vest over a time period of 3 years , and the performance-vested cash awards vest upon the achievement of a certain performance measure over a time period of 3 years . The performance measure for the cash awards for grants to management is based on earnings growth. Cash awards differ from the Company’s other awards in that no shares will be issued and cumulative compensation expense is recognized as a liability rather than equity. For cash awards, total compensation costs is based on the fair value of the award on the date the award is granted and is remeasured at each reporting date until settlement. As of October 1, 2016 , the unrecognized compensation costs related to the cash awards was $18,631 . We expect this cost to be recognized over a remaining weighted-average period of approximately 2.7 years . Cash awards granted under the 2011 Incentive Plan were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, October 3, October 1, October 3, Cash awards granted 1,973 — 26,542 — Compensation expense-cash awards $ 1,816 $ — $ 2,427 $ — |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 01, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use foreign currency forward contracts that are not designated as hedges primarily to manage currency risk associated with foreign currency-denominated trade accounts receivable, accounts payable and intercompany loans. The notional amounts and fair values of derivative instruments in our consolidated balance sheet were as follows: Notional Amounts (1) Fair Value October 1, January 2, October 1, January 2, Derivatives not receiving hedge accounting treatment recorded in: Other current assets Foreign exchange contracts $ 846,316 $ 1,669,296 $ 3,967 $ 54,133 Accrued expenses Foreign exchange contracts 1,185,572 618,961 (6,841 ) (8,217 ) Total $ 2,031,888 $ 2,288,257 $ (2,874 ) $ 45,916 (1) Notional amounts represent the gross amount of foreign currency bought or sold at maturity for foreign exchange contracts. The amount recognized in earnings from our derivative instruments not receiving hedge accounting treatment, including ineffectiveness, is recorded in net foreign exchange gain (loss) as follows and was largely offset by the change in fair value of the underlying hedged assets or liabilities: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Net gain (loss) recognized in earnings $ (7,505 ) $ (7,037 ) $ (33,657 ) $ 84,857 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – observable market-based inputs or unobservable inputs that are corroborated by market data; and Level 3 – unobservable inputs that are not corroborated by market data. As of October 1, 2016 , our assets and liabilities measured at fair value on a recurring basis are categorized in the table below: October 1, 2016 Total Level 1 Level 2 Level 3 Assets: Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit $ 203,993 $ 203,993 $ — $ — Marketable trading securities (a) 49,458 49,458 — — Derivative assets 3,967 — 3,967 — Total assets at fair value $ 257,418 $ 253,451 $ 3,967 $ — Liabilities: Derivative liabilities $ 6,841 $ — $ 6,841 $ — Contingent consideration 28,903 — — 28,903 Total liabilities at fair value $ 35,744 $ — $ 6,841 $ 28,903 (a) Included in other current assets in our consolidated balance sheet. As of January 2, 2016 , our assets and liabilities measured at fair value on a recurring basis are categorized in the table below: January 2, 2016 Total Level 1 Level 2 Level 3 Assets: Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit $ 201,051 $ 201,051 $ — $ — Marketable trading securities (a) 51,720 51,720 — — Derivative assets 54,133 — 54,133 — Total assets at fair value $ 306,904 $ 252,771 $ 54,133 $ — Liabilities: Derivative liabilities $ 8,217 $ — $ 8,217 $ — Contingent consideration 3,371 — — 3,371 Total liabilities at fair value $ 11,588 $ — $ 8,217 $ 3,371 (a) Included in other current assets in our consolidated balance sheet. The fair value of the cash equivalents approximated cost and the change in the fair value of the marketable trading securities was recognized in the consolidated statement of income to reflect these investments at fair value. Our senior unsecured notes due in 2024 , 2022 and 2017 are stated at amortized cost, and their respective fair values were determined based on Level 2 criteria. The fair values and carrying values of these notes are shown in the tables below: October 1, 2016 Fair Value Total Level 1 Level 2 Level 3 Carrying Value Liabilities: Senior unsecured notes, 5.25% due 2017 $ 309,358 $ — $ 309,358 $ — $ 299,615 Senior unsecured notes, 5.00% due 2022 309,234 — 309,234 — 297,276 Senior unsecured notes, 4.95% due 2024 502,837 — 502,837 — 494,898 $ 1,121,429 $ — $ 1,121,429 $ — $ 1,091,789 January 2, 2016 Fair Value Total Level 1 Level 2 Level 3 Carrying Value Liabilities: Senior unsecured notes, 5.25% due 2017 $ 313,039 $ — $ 313,039 $ — $ 299,313 Senior unsecured notes, 5.00% due 2022 301,867 — 301,867 — 296,928 Senior unsecured notes, 4.95% due 2024 501,515 — 501,515 — 494,432 $ 1,116,421 $ — $ 1,116,421 $ — $ 1,090,673 |
Acquisitions, Goodwill and Inta
Acquisitions, Goodwill and Intangible Assets | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Acquisitions, Goodwill and Intangible Assets | Acquisitions, Goodwill and Intangible Assets During the second quarter of 2016, we completed three strategic acquisitions, RRC Poland Spolka Z.o.o ("RRC"), Discan Limited ("Comms-care") and Ensim Corporation ("Ensim"), in Central and Eastern Europe, the United Kingdom and Ireland and the United States, respectively, for cash aggregating $112,431 , net of cash acquired, estimated future earn-out of $10,630 and a hold-back of $3,629 . The major classes of assets and liabilities to which we preliminarily allocated the excess purchase price were $127,828 to goodwill, and $5,700 to identifiable intangible assets. The identifiable intangible assets primarily consist of customer relationships, developed technology and a trade name with estimated useful lives that range from three to twelve years. The goodwill recognized in connection with these acquisitions is primarily attributable to the assembled workforce and the enhancement of our distribution and cloud business in Europe and North America. During the first quarter of 2016, we completed three strategic acquisitions, Dupaco Holdings B.V. ("Dupaco"), Connector Systems Holdings Limited and Connector Systems Holdings Pty Limited ("Connector Systems") and NetXUSA, Inc. ("NetXUSA"), in the Netherlands, Australia and New Zealand and the United States, respectively, for cash aggregating to $66,284 , net of cash acquired, and estimated future earn-outs of $17,159 . The major classes of assets and liabilities to which we preliminarily allocated the excess purchase price were $53,608 to identifiable intangible assets, and $17,146 to goodwill. The identifiable intangible assets primarily consist of customer relationships, developed technology, backlog, and trade name with estimated useful lives that range from one to twelve years. The goodwill recognized in connection with these acquisitions is primarily attributable to the assembled workforce and the enhancement of our distribution business in North America, Australia, New Zealand and Europe. During the fourth quarter of 2015, we acquired the assets of Odin Service Automation from Parallels Holdings Ltd. ("Odin"), for a cash payment of $163,906 , net of cash acquired, which will enhance our cloud management platform technologies. The major classes of assets and liabilities to which we preliminarily allocated the excess purchase price were $65,240 to identifiable intangible assets and $109,768 to goodwill. The identifiable intangible assets primarily consist of customer relationships, trade name and developed technology with estimated useful lives that range from three to six years. The goodwill recognized in connection with this acquisition is primarily attributable to the assembled workforce and the enhancement of our cloud strategy. During the thirty-nine weeks ended October 1, 2016 , we updated our preliminary purchase price allocation and received cash of $2,951 and recorded $66,138 to identifiable intangible assets and $109,013 to goodwill. During the fourth quarter of 2015, we acquired all the outstanding shares of Grupo Acâo ("Acâo"), a Latin American leading provider of value-add IT solutions, for a cash payment of $68,654 , net of cash acquired. The major class of assets and liabilities to which we preliminarily allocated the excess purchase price was $58,043 to goodwill. The goodwill recognized in connection with this acquisition is primarily attributable to the assembled workforce and the enhancement of value-add IT solutions to our distribution business in Latin America. During the thirty-nine weeks ended October 1, 2016 , we made additional cash payments of $1,336 and updated our preliminary purchase price allocation and recorded $26,200 to intangible assets and $38,393 to goodwill. The identifiable intangible assets primarily consist of customer relationships and a non-compete agreement with estimated useful lives that range from four to eleven years. During 2015, we acquired all the outstanding shares of DocData, for a cash payment of $144,752 , net of cash acquired. DocData is a European provider of order fulfillment, returns logistics and on-line payment services that also provides commerce solutions to major retailers, brands and promising start-ups. The major class of assets and liabilities to which we preliminarily allocated the excess purchase price was $133,538 to goodwill. The goodwill recognized in connection with this acquisition is primarily attributable to the assembled workforce and the enhancement of our commerce and fulfillment services business. During the thirty-nine weeks ended October 1, 2016 , we updated our preliminary purchase price allocation and recorded $42,552 to intangible assets and $103,244 to goodwill. The identifiable intangible assets primarily consist of customer relationships and software with estimated useful lives that range from three to ten years. These entities have been included in our consolidated results of operations since their respective acquisition dates. Pro forma results of operations have not been presented for the 2016 and 2015 acquisitions because the effects of the business combinations for these acquisitions, individually and in aggregate, were not material to our consolidated financial statements. For our recent acquisitions, asset valuations are still in progress and the amounts preliminarily allocated to goodwill and intangible assets will be finalized in the near future. Finite-lived identifiable intangible assets are amortized over their remaining estimated lives ranging up to 13 years with the predominant amounts having lives of 2 to 12 years. The gross and net carrying amounts of finite-lived identifiable intangible assets are as follows: October 1, January 2, Gross carrying amount of finite-lived intangible assets $ 650,716 $ 537,308 Net carrying amount of finite-lived intangible assets $ 429,035 $ 374,674 During the first quarter of 2016, we wrote-off a previously acquired customer relationship of $5,832 , as the result of the integration of certain operations into our existing facilities. During the second quarter of 2016, we wrote-off a previously acquired trade name of $12,525 as a result of our sale of AVAD as discussed above in Note 1, "Organization and Basis of Presentation". There were no additional impairments to our other intangible assets. |
Reorganization Costs
Reorganization Costs | 9 Months Ended |
Oct. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Reorganization Costs | Reorganization Costs Reorganization Actions On February 13, 2014, we announced a plan to proceed with a global organizational effectiveness program that involved aligning and leveraging our infrastructure globally with our evolving businesses, opportunities and resources, and de-layering and simplifying the organization. On May 4, 2015, we announced our intention to take certain global actions to further streamline our cost structure. In addition, during the second quarter of 2016 we implemented additional actions to further align our cost structure in certain markets, primarily in Europe. During the thirteen and thirty-nine weeks ended October 1, 2016 we incurred one-time reorganization costs of $7,471 and $14,618 , respectively, related to the 2016 actions. We will continue to monitor our cost profiles on a tactical basis and enact further programs opportunistically. As a result of these actions, we recognized total net reorganization charges of $7,471 and $18,958 , net of adjustments, during the thirteen weeks ended October 1, 2016 and October 3, 2015 , respectively, which primarily related to employee termination benefits of $6,725 and $18,139 , respectively. During the thirty-nine weeks ended October 1, 2016 and October 3, 2015 , we recognized net reorganization charges of $31,727 and $29,234 , respectively, which primarily related to employee termination benefits of $32,453 and $29,816 , respectively. A summary of the reorganization and expense-reduction program costs incurred in the thirteen weeks ended October 1, 2016 and October 3, 2015 , are as follows: Reorganization Costs Headcount Reduction Employee Termination Benefits Facility and Other Costs Total Reorganization Costs Adjustments to Prior Year Costs Total Costs Thirteen weeks ended October 1, 2016 North America $ 2,510 $ 61 $ 2,571 $ 628 $ 3,199 Europe 3,275 (66 ) 3,209 33 3,242 Asia-Pacific — — — — — Latin America 940 7 947 83 1,030 Total 205 $ 6,725 $ 2 $ 6,727 $ 744 $ 7,471 Thirteen weeks ended October 3, 2015 North America $ 8,631 $ — $ 8,631 $ (250 ) $ 8,381 Europe 5,663 1,186 6,849 (117 ) 6,732 Asia-Pacific 3,315 — 3,315 — 3,315 Latin America 530 — 530 — 530 Total 497 $ 18,139 $ 1,186 $ 19,325 $ (367 ) $ 18,958 A summary of the reorganization and expense-reduction program costs incurred in the thirty-nine weeks ended October 1, 2016 and October 3, 2015 , are as follows: Headcount Reduction Employee Termination Benefits Facility and Other Costs Total Reorganization Costs Adjustments to Prior Year Costs Total Costs Thirty-nine Weeks Ended October 1, 2016 North America $ 7,692 $ 740 $ 8,432 $ (1,155 ) $ 7,277 Europe 21,603 1,045 22,648 (1,594 ) 21,054 Asia-Pacific 1,153 215 1,368 (429 ) 939 Latin America 2,005 461 2,466 (9 ) 2,457 Total 676 $ 32,453 $ 2,461 $ 34,914 $ (3,187 ) $ 31,727 Thirty-nine Weeks Ended October 3, 2015 North America $ 13,248 $ 56 $ 13,304 $ (1,212 ) $ 12,092 Europe 11,891 1,946 13,837 (1,836 ) 12,001 Asia-Pacific 3,984 — 3,984 — 3,984 Latin America 693 464 1,157 — 1,157 Total 568 $ 29,816 $ 2,466 $ 32,282 $ (3,048 ) $ 29,234 The remaining liabilities and 2016 activities associated with the aforementioned actions are summarized in the table below: Reorganization Liability Remaining Liability at January 2, 2016 Expenses, Net Amounts Paid Foreign Currency Translation Remaining Liability at October 1, 2016 (a) Reorganization actions Employee termination benefits $ 15,429 $ 31,247 (b) $ (29,724 ) $ — $ 16,952 Facility and other costs 804 480 (c) (967 ) 317 $ 16,233 $ 31,727 $ (30,691 ) $ — $ 17,269 (a) We expect the remaining liabilities to be substantially utilized by the end of 2016. (b) Adjustments reflected in the table above include reductions of $1,206 to 2015 and 2014 reorganization plan liabilities recorded in the prior year in North America, Europe and Latin America for lower than expected employee termination benefits. (c) Adjustments reflected in the table above include a reduction of $1,981 to reorganization liabilities recorded in the prior year in Asia-Pacific and Europe for lower than expected facility and other costs, respectively. |
Debt
Debt | 9 Months Ended |
Oct. 01, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying value of our outstanding debt consists of the following: October 1, 2016 January 2, 2016 Senior unsecured notes, 4.95% due 2024, net of unamortized discou nt of $1,438 and $1,569, respectively, and net of unamortized deferred financing costs of $3,664 and $3,999, respectively. $ 494,898 $ 494,432 Senior unsecured notes, 5.00% due 2022, net of unamortized discount of $1,052 and $1,187, respectively, and net of unamortized deferred financing costs of $1,672 and $1,885, respectively. 297,276 296,928 Senior unsecured notes, 5.25% due September 2017, net of unamortized deferred financing costs of $385 and $687, respectively. 299,615 299,313 Lines of credit and other debt 235,000 134,132 1,326,789 1,224,805 Short-term debt and current maturities of long-term debt (534,213 ) (134,103 ) $ 792,576 $ 1,090,702 See Note 15, "Subsequent Events" for details of the recent amendments to our revolving senior unsecured credit facility, trade accounts receivable-backed financing program in North America and our senior unsecured notes due in 2017, 2022 and 2024. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the thirteen weeks ended October 1, 2016 was 30.3% compared to 27.4% for the thirteen weeks ended October 3, 2015 . For the thirty-nine weeks ended October 1, 2016 and October 3, 2015 , our effective tax rate was 31.4% and 41.5% , respectively. Under U.S. accounting rules for income taxes, quarterly effective tax rates may vary significantly depending on the actual operating results in the various tax jurisdictions, as well as changes in the valuation allowance related to the expected recovery of deferred tax assets. The thirteen weeks ended October 1, 2016 included net discrete benefits of approximately $1,088 , or 1.0 percentage point of the effective tax rate, primarily related to an increase in income tax credits claimed for prior years. The thirteen weeks ended October 3, 2015 included net discrete benefits of approximately $1,945 , or 2.2 percentage points of the effective tax rate, primarily related to the release of unrealized tax benefits due to expiration of statute of limitations in various jurisdictions. The thirty-nine weeks ended October 1, 2016 included net discrete benefits of approximately $3,485 , or 1.8 percentage points of the effective tax rate, primarily driven by a net change in valuation allowances against the deferred tax assets of two of our foreign operating units as well as an increase in income tax credits claimed for prior years and the release of unrealized tax benefits due to the expiration of statute of limitations in various jurisdictions. The thirty-nine weeks ended October 3, 2015 included net discrete expenses of approximately $9,580 , or (7.6) percentage points of the effective tax rate, primarily related to discrete expense of $14,580 due to an increase to the valuation allowance on foreign tax credits, partially offset by net discrete benefit of $5,000 primarily driven by the release of unrealized tax benefits due to the expiration of the statute of limitations in various jurisdictions. Our effective tax rate differed from the U.S. federal statutory rate of 35% during these periods primarily due to the items noted above, as well as the relative mix of earnings or losses within the tax jurisdictions in which we operate, such as: (a) earnings in lower-tax jurisdictions for which no U.S. taxes have been provided because such earnings are planned to be reinvested indefinitely outside the United States; (b) losses in certain jurisdictions in which we are not able to record a tax benefit; and (c) changes in the valuation allowance on deferred tax assets. At October 1, 2016 , we had gross unrecognized tax benefits of $26,520 compared to $23,445 at January 2, 2016 , representing a net increase of $3,075 during the thirty-nine weeks ended October 1, 2016 . Substantially all of the gross unrecognized tax benefits, if recognized, would impact our effective tax rate in the period of recognition. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. In addition to the gross unrecognized tax benefits identified above, the interest and penalties recorded to date by us totaled $6,738 and $6,652 at October 1, 2016 and January 2, 2016 , respectively. Our future effective tax rate will continue to be affected by changes in the relative mix of taxable income and losses in the tax jurisdictions in which we operate, changes in the valuation of deferred tax assets, or changes in tax laws or interpretations thereof. In addition, our income tax returns are subject to continuous examination by the IRS and other tax authorities. The IRS has concluded its examinations of tax years prior to 2012. It is possible that within the next twelve months, ongoing tax examinations in the United States and several of our foreign jurisdictions may be resolved, that new tax exams may commence and that other issues may be effectively settled. However, we do not expect our assessment of unrecognized tax benefits to change significantly over that time. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 01, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reporting units coincide with the geographic operating segments which include North America, Europe, Asia-Pacific, and Latin America. The measure of segment profit is income from operations. Geographic areas in which we operated our reporting segments during 2016 include North America (the United States and Canada), Europe (Albania, Austria, Belgium, Croatia, Czech Republic, Denmark, France, Finland, Germany, Hungary, Ireland, Italy, Macedonia, the Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovenia, Slovakia, Spain, Sweden, Switzerland and the United Kingdom), Asia-Pacific (Australia, the People’s Republic of China including Hong Kong, Egypt, India, Indonesia, Israel, Lebanon, Malaysia, Morocco, New Zealand, Pakistan, Saudi Arabia, Singapore, South Africa, Thailand, Turkey, and United Arab Emirates), and Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and our Latin American export operations in Miami). We do not allocate stock-based compensation recognized to our operating segments; therefore, we are reporting this as a separate amount (See Note 5, "Stock-Based Compensation"). Additionally, we did not allocate the loss on the sale of affiliate and the impairment of internally developed software to our operating segments; therefore they have been presented separately. Financial information by reporting segment is as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, October 3, October 1, October 3, Net sales North America $ 4,522,053 $ 4,477,097 $ 12,837,687 $ 13,537,238 Europe 2,748,167 2,928,507 8,189,583 8,857,752 Asia-Pacific 2,318,185 2,528,116 6,769,671 7,553,865 Latin America 638,421 582,160 1,889,092 1,764,729 Total $ 10,226,826 $ 10,515,880 $ 29,686,033 $ 31,713,584 Income (loss) from operations North America $ 91,686 $ 88,742 $ 219,058 $ 223,596 Europe 2,470 2,577 (21,225 ) 20,913 Asia-Pacific 41,003 31,816 94,931 94,358 Latin America 11,561 7,056 24,595 24,493 Stock-based compensation expense (9,656 ) (10,762 ) (29,564 ) (28,291 ) Impairment of internally developed software — — — (115,856 ) Loss on sale of affiliate — — (14,878 ) — Total $ 137,064 $ 119,429 $ 272,917 $ 219,213 Capital expenditures North America $ 13,383 $ 35,121 $ 43,869 $ 77,315 Europe 13,242 3,862 18,495 11,514 Asia-Pacific 2,335 2,958 10,136 8,409 Latin America 793 508 7,729 1,784 Total $ 29,753 $ 42,449 $ 80,229 $ 99,022 Depreciation North America $ 17,314 $ 16,455 $ 51,998 $ 47,969 Europe 5,069 3,082 15,044 8,630 Asia-Pacific 3,037 2,744 8,646 8,182 Latin America 1,062 449 2,466 1,428 Total $ 26,482 $ 22,730 $ 78,154 $ 66,209 Amortization of intangible assets North America $ 10,190 $ 8,115 $ 35,854 $ 28,847 Europe 8,650 3,167 28,012 11,306 Asia-Pacific 1,839 1,997 5,765 5,743 Latin America (105 ) 927 3,589 1,330 Total $ 20,574 $ 14,206 $ 73,220 $ 47,226 The integration, transition and other costs included in income from operations by reporting segment are as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, October 3, October 1, October 3, Integration, transition and other costs (a) North America $ 8,542 $ 5,901 $ 34,651 $ 16,545 Europe 2,419 5,749 5,683 8,601 Asia-Pacific — 3,674 243 5,311 Latin America 530 729 1,787 2,356 Total $ 11,491 $ 16,053 $ 42,364 $ 32,813 (a) Costs are primarily related to (i) professional, consulting and integration costs associated with our acquisitions and impending merger, (ii) consulting, retention and transition costs associated with our reorganization programs charged to selling, general and administrative, or SG&A, expenses, (iii) a gain of $3,790 related to the final settlement of a class action lawsuit, which was recorded as a reduction of SG&A expenses in North America in the second quarter of 2016, and (iv) a charge of $4,736 for an estimated settlement of employee related taxes assessed in Europe recorded in the third quarter of 2015. Our reorganization costs by reportable segment are disclosed within Note 9, "Reorganization Costs". As of October 1, January 2, 2016 Identifiable assets North America $ 5,482,101 $ 5,243,878 Europe 3,281,714 3,547,495 Asia-Pacific 2,563,742 2,476,243 Latin America 966,384 1,033,073 Total $ 12,293,941 $ 12,300,689 Long-lived assets North America $ 419,497 $ 427,180 Europe 272,252 234,672 Asia-Pacific 72,065 71,602 Latin America 49,831 22,634 Total $ 813,645 $ 756,088 Net sales and long-lived assets for the United States, which is our country of domicile, are as follows: Thirteen Weeks Ended October 1, 2016 October 3, 2015 Net sales: United States $ 4,241,103 41 % $ 4,183,568 40 % Outside of the United States 5,985,723 59 6,332,312 60 Total $ 10,226,826 100 % $ 10,515,880 100 % Thirty-nine Weeks Ended October 1, 2016 October 3, 2015 Net sales: United States $ 12,021,269 40 % $ 12,611,394 40 % Outside of the United States 17,664,764 60 19,102,190 60 Total $ 29,686,033 100 % $ 31,713,584 100 % As of October 1, January 2, 2016 Long-lived assets: United States $ 406,179 $ 406,195 Outside of the United States 407,466 349,893 Total $ 813,645 $ 756,088 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Our Brazilian subsidiary received a 2005 Federal import tax assessment claiming certain commercial taxes totaling Brazilian Reais 12,714 ( $3,917 at October 1, 2016 exchange rates) were due on the import of software acquired from international vendors for the period January through September of 2002. After exhausting remedies at the administrative level we plan to vigorously challenge the assessment in court, which may require us to post collateral for the amount in dispute. We continue to maintain a reserve for the full tax amount assessed at October 1, 2016 . Our Brazilian subsidiary has also received a number of additional tax assessments, including the following that have a reasonable possibility of a loss: (1) a 2007 Sao Paulo Municipal tax assessment claiming service taxes were due on the resale of acquired software covering years 2002 through 2006, for a total amount of Brazilian Reais 55,083 ( $16,968 at October 1, 2016 exchange rates) in principal and associated penalties; (2) a 2011 Federal income tax assessment, a portion of which claims statutory penalties totaling Brazilian Reais 15,947 ( $4,912 at October 1, 2016 exchange rates) for delays in providing certain electronic files during the audit of tax years 2008 and 2009; (3) a 2012 Sao Paulo municipal tax assessment claiming service taxes due on the importation of software covering the year 2007 for a total amount of Brazilian Reais 2,263 ( $697 at October 1, 2016 exchange rates) in principal and associated penalties; and (4) a 2013 Sao Paulo municipal tax assessment claiming service taxes due on the importation of software covering the years 2008, 2009, 2010 and January through May 2011 for a total amount of Brazilian Reais 8,100 ( $2,495 at October 1, 2016 exchange rates) in principal and associated penalties. After working with our advisors, we believe the other matters noted above do not represent a probable loss. In addition to the amounts described above, it is reasonably possible that incremental charges for penalties, interest and inflationary adjustments could be imposed in an amount up to Brazilian Reais 298,330 ( $91,901 at October 1, 2016 exchange rates) for these matters. We believe we have good defenses against each matter and do not believe it is probable that we will suffer a material loss for these matters. In connection with the due diligence performed during the acquisition of Acâo, we also identified a Sao Paulo Municipal Tax assessment claiming service taxes on the resale of acquired software and professional services covering years 2003 through 2008, for a total amount of Brazilian Reais 67,200 ( $20,701 at October 1, 2016 exchange rates) in principal and associated interest and penalties. In working with our advisers, we concluded that the portion of the assessment associated with the resale of professional services has a probable risk of loss under existing Brazilian law, while also concluding, consistent with the assessment noted in (1) above that the risk of loss associated with the resale of software is not probable. In structuring our acquisition, Brazilian Reais 76,204 ( $23,475 at October 1, 2016 exchange rates) of the purchase price was placed into an escrow account pending conclusion of litigation on this matter. Based on the terms of the escrow, we have accrued Brazilian Reais 7,500 ( $2,310 at October 1, 2016 exchange rates), which is the negotiated amount of liability we agreed to cover should the Brazilian courts ultimately conclude Acâo was required to pay this service tax. There are various other claims, lawsuits and pending actions against us incidental to our operations. It is the opinion of management that the ultimate resolution of these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. However, we can make no assurances that we will ultimately be successful in our defense of any of these matters. As is customary in the IT distribution industry, we have arrangements with certain finance companies that provide inventory-financing facilities for their customers. In conjunction with certain of these arrangements, we 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 factors, 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 each of the periods presented. The guarantees require us to reimburse the third party for defaults by these customers up to an aggregate of $6,873 . The fair value of these guarantees has been recognized as cost of sales to these customers and is included in accrued expenses. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Oct. 01, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting Standards In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-15,"Statement of Cash Flows- (Topic 230): Classification of Certain Cash Receipts and Cash Payments" related to the classification of certain cash receipts and cash payments on the statement of cash flows. The amendments in this update provide clarification guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and proceeds from the settlement of corporate and bank-owned life insurance policies. The amendments in this update are effective for periods beginning after December 15, 2017. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements and evaluating our potential adoption method. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 16, 2016, and interim periods within those fiscal years. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)". The amendments in this update relate to when another party, along with the company, are involved in providing a good or service to a customer and are intended to improve the operability and understandability of the implementation guidance on principal versus agent. Revenue recognition guidance requires companies to determine whether the nature of its promise is to provide that good or service to the customer (i.e., the company is a principal) or to arrange for the good or service to be provided to the customer by the other party (i.e., the company is an agent). The amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including the interim periods within those fiscal years. We are currently in the process of assessing what impact this new update may have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This update will increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date (i) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged, and it simplified the accounting for sale and leaseback transactions. Lessees will no longer be provided with a source of off-balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements. In May 2014, the FASB issued an accounting standard that will supersede existing revenue recognition guidance under current U.S. GAAP. The new standard is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods and services. During the second quarter of 2016, the FASB issued updates to the new revenue standard that are intended to address and simplify implementation issues for the following topics: (i) collectability, (ii) noncash consideration, (iii) presentation of sales taxes, (iv) completed contracts, (v) identifying performance obligations, (vi) licensing, and (vii) transition for contracts modified prior to adopting the new standard. The accounting standard and related updates are effective for us in the first quarter of fiscal year 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this standard, and management is currently evaluating which transition approach to use. Early adoption is permitted in the first quarter of fiscal year 2017. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements and evaluating our potential adoption method. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 01, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 19, 2016, we entered into an amendment and waiver to our revolving senior unsecured credit facility from a syndicate of multinational banks with a maturity date of January 2020 (“Amendment No. 3”). The effectiveness of Amendment No. 3 is subject to the consummation of the Merger contemplated by the Merger Agreement with Tianjin Tianhai, in addition to other customary closing conditions. Amendment No. 3 provides that, among other things, (i) the Lenders party to Amendment No. 3 waive prepayment of their loans as a result of the consummation of the Merger and agree to continue as Lenders with aggregate commitments reduced from $1,500,000 to $1,050,000 , (ii) our ability to make payments to our direct or indirect shareholders following consummation of the Merger will be further limited, including under amendments to the Restricted Payments provisions of the credit facility and (iii) the amendment or addition of certain financial covenants of this revolving senior unsecured credit facility. On October 21, 2016, we entered into an amendment to our revolving trade accounts receivable-backed financing program in North America (“Omnibus Amendment No. 4”). The effectiveness of Omnibus Amendment No. 4 is subject to the consummation of the Merger contemplated by the Merger Agreement with Tianjin Tianhai, in addition to other customary closing conditions. Pursuant to Omnibus Amendment No. 4, the purchasers under this program waive any termination event existing as a result of the consummation of the Merger. In addition, Omnibus Amendment No. 4 amends or adds certain financial covenants applicable to this program. On October 21, 2016, we entered into supplemental indentures (the “Supplemental Indentures”) to the original indentures (the “Original Indentures”) with respect to our senior unsecured notes due 2017, senior unsecured notes due 2022 and our senior unsecured notes due 2024, each between us and Deutsche Bank Trust Company Americas, as trustee. The effectiveness of each Supplemental Indenture is subject to the consummation of the Merger contemplated by the Merger Agreement with Tianjin Tianhai, in addition to other customary closing conditions. The Supplemental Indentures amend the Original Indentures to, among other things, limit our ability to make payments to our direct or indirect shareholders following consummation of the Merger, substantially consistent with our revolving senior unsecured credit facility. |
Organization and Basis of Pre22
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Oct. 01, 2016 | |
Accounting Policies [Abstract] | |
Book Overdrafts | Book Overdrafts Book overdrafts of $366,975 and $428,628 as of October 1, 2016 and January 2, 2016 , respectively, represent checks issued on disbursement bank accounts but not yet paid by such banks. These amounts are classified as accounts payable in our consolidated balance sheet. We typically fund these overdrafts through normal collections of funds or transfers from other bank balances at other financial institutions. Under the terms of our facilities with the banks, the respective financial institutions are not legally obligated to honor the book overdraft balances as of October 1, 2016 and January 2, 2016 , or any balance on any given date. |
Trade Accounts Receivable Factoring Programs | Trade Accounts Receivable Factoring Programs We have several uncommitted factoring programs under which trade accounts receivable of several large customers may be sold, without recourse, to financial institutions. Available capacity under these programs is dependent on the amount of trade accounts receivable already sold into these programs and the financial institutions’ willingness to purchase such receivables. At October 1, 2016 and January 2, 2016 , we had a total of $217,857 , and $388,358 , respectively, of trade accounts receivable sold to and held by financial institutions under these programs. Factoring fees of $1,143 and $947 incurred for the thirteen weeks ended October 1, 2016 and October 3, 2015 , respectively, and $4,056 and $3,263 incurred for the thirty-nine weeks ended October 1, 2016 and October 3, 2015 , respectively, related to the sale of trade accounts receivable under these facilities are included in “other” in the other expense (income) section of our consolidated statement of income |
Change in Accounting Principle and Reclassification | Change in Accounting Principle and Reclassification During the thirty-nine weeks ended October 1, 2016 , we adopted the provisions of Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs", which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. Additionally, we also adopted ASU 2015-15, "Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-Of-Credit Arrangements and Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting". ASU 2015-15 allows debt issuance costs to be presented as an asset and amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As a result of the adoption of these ASUs, our consolidated balance sheet as of January 2, 2016 reflects a $6,571 reduction of other long-term assets and long-term debt, respectively, to conform to the current year presentation. In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-15,"Statement of Cash Flows- (Topic 230): Classification of Certain Cash Receipts and Cash Payments" related to the classification of certain cash receipts and cash payments on the statement of cash flows. The amendments in this update provide clarification guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and proceeds from the settlement of corporate and bank-owned life insurance policies. The amendments in this update are effective for periods beginning after December 15, 2017. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements and evaluating our potential adoption method. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 16, 2016, and interim periods within those fiscal years. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)". The amendments in this update relate to when another party, along with the company, are involved in providing a good or service to a customer and are intended to improve the operability and understandability of the implementation guidance on principal versus agent. Revenue recognition guidance requires companies to determine whether the nature of its promise is to provide that good or service to the customer (i.e., the company is a principal) or to arrange for the good or service to be provided to the customer by the other party (i.e., the company is an agent). The amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including the interim periods within those fiscal years. We are currently in the process of assessing what impact this new update may have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This update will increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date (i) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged, and it simplified the accounting for sale and leaseback transactions. Lessees will no longer be provided with a source of off-balance sheet financing. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements. In May 2014, the FASB issued an accounting standard that will supersede existing revenue recognition guidance under current U.S. GAAP. The new standard is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods and services. During the second quarter of 2016, the FASB issued updates to the new revenue standard that are intended to address and simplify implementation issues for the following topics: (i) collectability, (ii) noncash consideration, (iii) presentation of sales taxes, (iv) completed contracts, (v) identifying performance obligations, (vi) licensing, and (vii) transition for contracts modified prior to adopting the new standard. The accounting standard and related updates are effective for us in the first quarter of fiscal year 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this standard, and management is currently evaluating which transition approach to use. Early adoption is permitted in the first quarter of fiscal year 2017. We are currently in the process of assessing what impact this new standard may have on our consolidated financial statements and evaluating our potential adoption method. |
Stock Repurchase and Dividends
Stock Repurchase and Dividends (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Equity [Abstract] | |
Stock Issuance Activity | Our treasury stock issuance activity for the thirty-nine weeks ended October 1, 2016 is summarized in the table below: Shares Weighted Amount Cumulative balance of treasury stock at January 2, 2016 46,958 $ 19.02 $ 892,925 Issuance of Class A Common Stock (171 ) 16.76 (2,866 ) Cumulative balance of treasury stock at October 1, 2016 46,787 $ 19.02 $ 890,059 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic EPS and Diluted EPS | The computation of Basic and Diluted EPS is as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Net income $ 78,523 $ 64,922 $ 135,074 $ 73,904 Weighted average shares 149,677 152,203 148,999 154,955 Basic EPS $ 0.52 $ 0.43 $ 0.91 $ 0.48 Weighted average shares, including the dilutive effect of stock-based awards (2,241 and 2,539 for the thirteen weeks ended October 1, 2016 and October 3, 2015, respectively, and 2,837 and 3,061 for the thirty-nine weeks ended October 1, 2016, and October 3, 2015, respectively) 151,918 154,742 151,836 158,016 Diluted EPS $ 0.52 $ 0.42 $ 0.89 $ 0.47 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of awards granted under incentive plan | Cash awards granted under the 2011 Incentive Plan were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, October 3, October 1, October 3, Cash awards granted 1,973 — 26,542 — Compensation expense-cash awards $ 1,816 $ — $ 2,427 $ — Equity awards granted under the 2011 Incentive Plan were as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, October 3, October 1, October 3, Stock options granted — — 5 839 Restricted stock and restricted stock units granted 24 48 517 1,395 Stock-based compensation expense $ 7,840 $ 10,762 $ 27,137 $ 28,291 Related income tax benefit $ 2,613 $ 3,252 $ 9,058 $ 9,065 Exercised stock options — 197 162 567 Vested restricted stock and/or restricted stock units (a) 78 47 1,877 1,455 (a) Includes 13 and 0 shares, for the thirteen weeks ended October 1, 2016 and October 3, 2015 , respectively, and 425 and 1,015 shares, for the thirty-nine weeks ended October 1, 2016 and October 3, 2015 , respectively, which were issued based on performance-based grants previously approved by the Human Resources Committee of the Board of Directors. The remainder of the shares are time-based grants. |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts and Fair Values of Derivative Instruments | The notional amounts and fair values of derivative instruments in our consolidated balance sheet were as follows: Notional Amounts (1) Fair Value October 1, January 2, October 1, January 2, Derivatives not receiving hedge accounting treatment recorded in: Other current assets Foreign exchange contracts $ 846,316 $ 1,669,296 $ 3,967 $ 54,133 Accrued expenses Foreign exchange contracts 1,185,572 618,961 (6,841 ) (8,217 ) Total $ 2,031,888 $ 2,288,257 $ (2,874 ) $ 45,916 (1) Notional amounts represent the gross amount of foreign currency bought or sold at maturity for foreign exchange contracts. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The amount recognized in earnings from our derivative instruments not receiving hedge accounting treatment, including ineffectiveness, is recorded in net foreign exchange gain (loss) as follows and was largely offset by the change in fair value of the underlying hedged assets or liabilities: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Net gain (loss) recognized in earnings $ (7,505 ) $ (7,037 ) $ (33,657 ) $ 84,857 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The fair values and carrying values of these notes are shown in the tables below: October 1, 2016 Fair Value Total Level 1 Level 2 Level 3 Carrying Value Liabilities: Senior unsecured notes, 5.25% due 2017 $ 309,358 $ — $ 309,358 $ — $ 299,615 Senior unsecured notes, 5.00% due 2022 309,234 — 309,234 — 297,276 Senior unsecured notes, 4.95% due 2024 502,837 — 502,837 — 494,898 $ 1,121,429 $ — $ 1,121,429 $ — $ 1,091,789 January 2, 2016 Fair Value Total Level 1 Level 2 Level 3 Carrying Value Liabilities: Senior unsecured notes, 5.25% due 2017 $ 313,039 $ — $ 313,039 $ — $ 299,313 Senior unsecured notes, 5.00% due 2022 301,867 — 301,867 — 296,928 Senior unsecured notes, 4.95% due 2024 501,515 — 501,515 — 494,432 $ 1,116,421 $ — $ 1,116,421 $ — $ 1,090,673 As of October 1, 2016 , our assets and liabilities measured at fair value on a recurring basis are categorized in the table below: October 1, 2016 Total Level 1 Level 2 Level 3 Assets: Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit $ 203,993 $ 203,993 $ — $ — Marketable trading securities (a) 49,458 49,458 — — Derivative assets 3,967 — 3,967 — Total assets at fair value $ 257,418 $ 253,451 $ 3,967 $ — Liabilities: Derivative liabilities $ 6,841 $ — $ 6,841 $ — Contingent consideration 28,903 — — 28,903 Total liabilities at fair value $ 35,744 $ — $ 6,841 $ 28,903 (a) Included in other current assets in our consolidated balance sheet. As of January 2, 2016 , our assets and liabilities measured at fair value on a recurring basis are categorized in the table below: January 2, 2016 Total Level 1 Level 2 Level 3 Assets: Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit $ 201,051 $ 201,051 $ — $ — Marketable trading securities (a) 51,720 51,720 — — Derivative assets 54,133 — 54,133 — Total assets at fair value $ 306,904 $ 252,771 $ 54,133 $ — Liabilities: Derivative liabilities $ 8,217 $ — $ 8,217 $ — Contingent consideration 3,371 — — 3,371 Total liabilities at fair value $ 11,588 $ — $ 8,217 $ 3,371 (a) Included in other current assets in our consolidated balance sheet. |
Acquisitions, Goodwill and In28
Acquisitions, Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross and net carrying amounts of finite-lived identifiable intangible assets are as follows: October 1, January 2, Gross carrying amount of finite-lived intangible assets $ 650,716 $ 537,308 Net carrying amount of finite-lived intangible assets $ 429,035 $ 374,674 |
Reorganization Costs (Tables)
Reorganization Costs (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | A summary of the reorganization and expense-reduction program costs incurred in the thirteen weeks ended October 1, 2016 and October 3, 2015 , are as follows: Reorganization Costs Headcount Reduction Employee Termination Benefits Facility and Other Costs Total Reorganization Costs Adjustments to Prior Year Costs Total Costs Thirteen weeks ended October 1, 2016 North America $ 2,510 $ 61 $ 2,571 $ 628 $ 3,199 Europe 3,275 (66 ) 3,209 33 3,242 Asia-Pacific — — — — — Latin America 940 7 947 83 1,030 Total 205 $ 6,725 $ 2 $ 6,727 $ 744 $ 7,471 Thirteen weeks ended October 3, 2015 North America $ 8,631 $ — $ 8,631 $ (250 ) $ 8,381 Europe 5,663 1,186 6,849 (117 ) 6,732 Asia-Pacific 3,315 — 3,315 — 3,315 Latin America 530 — 530 — 530 Total 497 $ 18,139 $ 1,186 $ 19,325 $ (367 ) $ 18,958 A summary of the reorganization and expense-reduction program costs incurred in the thirty-nine weeks ended October 1, 2016 and October 3, 2015 , are as follows: Headcount Reduction Employee Termination Benefits Facility and Other Costs Total Reorganization Costs Adjustments to Prior Year Costs Total Costs Thirty-nine Weeks Ended October 1, 2016 North America $ 7,692 $ 740 $ 8,432 $ (1,155 ) $ 7,277 Europe 21,603 1,045 22,648 (1,594 ) 21,054 Asia-Pacific 1,153 215 1,368 (429 ) 939 Latin America 2,005 461 2,466 (9 ) 2,457 Total 676 $ 32,453 $ 2,461 $ 34,914 $ (3,187 ) $ 31,727 Thirty-nine Weeks Ended October 3, 2015 North America $ 13,248 $ 56 $ 13,304 $ (1,212 ) $ 12,092 Europe 11,891 1,946 13,837 (1,836 ) 12,001 Asia-Pacific 3,984 — 3,984 — 3,984 Latin America 693 464 1,157 — 1,157 Total 568 $ 29,816 $ 2,466 $ 32,282 $ (3,048 ) $ 29,234 |
Schedule of Restructuring and Related Costs | The remaining liabilities and 2016 activities associated with the aforementioned actions are summarized in the table below: Reorganization Liability Remaining Liability at January 2, 2016 Expenses, Net Amounts Paid Foreign Currency Translation Remaining Liability at October 1, 2016 (a) Reorganization actions Employee termination benefits $ 15,429 $ 31,247 (b) $ (29,724 ) $ — $ 16,952 Facility and other costs 804 480 (c) (967 ) 317 $ 16,233 $ 31,727 $ (30,691 ) $ — $ 17,269 (a) We expect the remaining liabilities to be substantially utilized by the end of 2016. (b) Adjustments reflected in the table above include reductions of $1,206 to 2015 and 2014 reorganization plan liabilities recorded in the prior year in North America, Europe and Latin America for lower than expected employee termination benefits. (c) Adjustments reflected in the table above include a reduction of $1,981 to reorganization liabilities recorded in the prior year in Asia-Pacific and Europe for lower than expected facility and other costs, respectively. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Debt Disclosure [Abstract] | |
Carrying Value of Outstanding Debt | The carrying value of our outstanding debt consists of the following: October 1, 2016 January 2, 2016 Senior unsecured notes, 4.95% due 2024, net of unamortized discou nt of $1,438 and $1,569, respectively, and net of unamortized deferred financing costs of $3,664 and $3,999, respectively. $ 494,898 $ 494,432 Senior unsecured notes, 5.00% due 2022, net of unamortized discount of $1,052 and $1,187, respectively, and net of unamortized deferred financing costs of $1,672 and $1,885, respectively. 297,276 296,928 Senior unsecured notes, 5.25% due September 2017, net of unamortized deferred financing costs of $385 and $687, respectively. 299,615 299,313 Lines of credit and other debt 235,000 134,132 1,326,789 1,224,805 Short-term debt and current maturities of long-term debt (534,213 ) (134,103 ) $ 792,576 $ 1,090,702 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Segment Reporting [Abstract] | |
Financial Information by Reporting Segments | Financial information by reporting segment is as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, October 3, October 1, October 3, Net sales North America $ 4,522,053 $ 4,477,097 $ 12,837,687 $ 13,537,238 Europe 2,748,167 2,928,507 8,189,583 8,857,752 Asia-Pacific 2,318,185 2,528,116 6,769,671 7,553,865 Latin America 638,421 582,160 1,889,092 1,764,729 Total $ 10,226,826 $ 10,515,880 $ 29,686,033 $ 31,713,584 Income (loss) from operations North America $ 91,686 $ 88,742 $ 219,058 $ 223,596 Europe 2,470 2,577 (21,225 ) 20,913 Asia-Pacific 41,003 31,816 94,931 94,358 Latin America 11,561 7,056 24,595 24,493 Stock-based compensation expense (9,656 ) (10,762 ) (29,564 ) (28,291 ) Impairment of internally developed software — — — (115,856 ) Loss on sale of affiliate — — (14,878 ) — Total $ 137,064 $ 119,429 $ 272,917 $ 219,213 Capital expenditures North America $ 13,383 $ 35,121 $ 43,869 $ 77,315 Europe 13,242 3,862 18,495 11,514 Asia-Pacific 2,335 2,958 10,136 8,409 Latin America 793 508 7,729 1,784 Total $ 29,753 $ 42,449 $ 80,229 $ 99,022 Depreciation North America $ 17,314 $ 16,455 $ 51,998 $ 47,969 Europe 5,069 3,082 15,044 8,630 Asia-Pacific 3,037 2,744 8,646 8,182 Latin America 1,062 449 2,466 1,428 Total $ 26,482 $ 22,730 $ 78,154 $ 66,209 Amortization of intangible assets North America $ 10,190 $ 8,115 $ 35,854 $ 28,847 Europe 8,650 3,167 28,012 11,306 Asia-Pacific 1,839 1,997 5,765 5,743 Latin America (105 ) 927 3,589 1,330 Total $ 20,574 $ 14,206 $ 73,220 $ 47,226 The integration, transition and other costs included in income from operations by reporting segment are as follows: Thirteen Weeks Ended Thirty-nine Weeks Ended October 1, October 3, October 1, October 3, Integration, transition and other costs (a) North America $ 8,542 $ 5,901 $ 34,651 $ 16,545 Europe 2,419 5,749 5,683 8,601 Asia-Pacific — 3,674 243 5,311 Latin America 530 729 1,787 2,356 Total $ 11,491 $ 16,053 $ 42,364 $ 32,813 (a) Costs are primarily related to (i) professional, consulting and integration costs associated with our acquisitions and impending merger, (ii) consulting, retention and transition costs associated with our reorganization programs charged to selling, general and administrative, or SG&A, expenses, (iii) a gain of $3,790 related to the final settlement of a class action lawsuit, which was recorded as a reduction of SG&A expenses in North America in the second quarter of 2016, and (iv) a charge of $4,736 for an estimated settlement of employee related taxes assessed in Europe recorded in the third quarter of 2015. Our reorganization costs by reportable segment are disclosed within Note 9, "Reorganization Costs". As of October 1, January 2, 2016 Identifiable assets North America $ 5,482,101 $ 5,243,878 Europe 3,281,714 3,547,495 Asia-Pacific 2,563,742 2,476,243 Latin America 966,384 1,033,073 Total $ 12,293,941 $ 12,300,689 Long-lived assets North America $ 419,497 $ 427,180 Europe 272,252 234,672 Asia-Pacific 72,065 71,602 Latin America 49,831 22,634 Total $ 813,645 $ 756,088 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Net sales and long-lived assets for the United States, which is our country of domicile, are as follows: Thirteen Weeks Ended October 1, 2016 October 3, 2015 Net sales: United States $ 4,241,103 41 % $ 4,183,568 40 % Outside of the United States 5,985,723 59 6,332,312 60 Total $ 10,226,826 100 % $ 10,515,880 100 % Thirty-nine Weeks Ended October 1, 2016 October 3, 2015 Net sales: United States $ 12,021,269 40 % $ 12,611,394 40 % Outside of the United States 17,664,764 60 19,102,190 60 Total $ 29,686,033 100 % $ 31,713,584 100 % As of October 1, January 2, 2016 Long-lived assets: United States $ 406,179 $ 406,195 Outside of the United States 407,466 349,893 Total $ 813,645 $ 756,088 |
Organization and Basis of Pre32
Organization and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2016 | Jul. 02, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Book overdrafts | $ 366,975 | $ 366,975 | $ 428,628 | |||
Trade accounts receivable sold to and held by financial institutions under uncommitted factoring programs | 217,857 | 217,857 | 388,358 | |||
Factoring fees | 1,143 | $ 947 | 4,056 | $ 3,263 | ||
Impairment of internally developed software | 0 | $ 115,856 | 0 | 0 | 115,856 | |
Loss on sale of affiliate | 0 | 0 | 14,878 | $ 0 | ||
Change in Accounting Principle and Reclassification [Member] | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Reduction of other long-term assets and long-term debt | $ 6,571 | |||||
Foreign Tax Credit | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Increase in valuation allowance | $ 14,580 | $ 14,580 | ||||
AVAD | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Proceeds from divestiture of business | 27,847 | |||||
AVAD | Trade names | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Write-off of previously acquired intangible asset | $ 12,525 |
Plan of Merger (Details)
Plan of Merger (Details) - Tianjin Tianhai | Feb. 17, 2016USD ($)$ / shares |
Acquisitions [Line Items] | |
Right to receive share price (in dollars per share) | $ / shares | $ 38.90 |
Amount of average cash and cash equivalents required to maintain for the three month period prior to closing (in excess) | $ 424,000,000 |
Long-term committed facilities threshold (less than) | $ 100,000,000 |
Stock Repurchase and Dividend34
Stock Repurchase and Dividends - Additional Information (Detail) - USD ($) | Sep. 15, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jul. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends payable, amount per share (in dollars per share) | $ 0.10 | |||
Dividends paid to shareholders | $ 15,196,000 | $ 0 | $ 15,196,000 | |
2015 Share Repurchase Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for repurchase program, amount | $ 300,000,000 | |||
Remaining amount for repurchase under the share repurchase program | $ 165,068,000 | |||
2010 Share Repurchase Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for repurchase program, amount | $ 400,000,000 |
Stock Repurchase and Dividend35
Stock Repurchase and Dividends - Stock Repurchase and Issuance Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Oct. 01, 2016USD ($)$ / sharesshares | |
Shares | |
Cumulative balance, Shares, Beginning Balance | shares | 46,958 |
Issuance of Class A Common Stock, Shares | shares | (171) |
Cumulative balance, Shares, Ending Balance | shares | 46,787 |
Weighted Average Price Per Share | |
Cumulative balance, Weighted Average Price Per Share, Beginning Balance (in dollars per share) | $ / shares | $ 19.02 |
Issuance of Class A Common Stock, Weighted Average Price Per Share (in dollars per share) | $ / shares | 16.76 |
Cumulative balance, Weighted Average Price Per Share, Ending Balance (in dollars per share) | $ / shares | $ 19.02 |
Amount | |
Cumulative balance, Amount, Beginning Balance | $ | $ 892,925 |
Issuance of Class A Common Stock, Amount | $ | (2,866) |
Cumulative balance, Amount, Ending Balance | $ | $ 890,059 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic EPS and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 78,523 | $ 64,922 | $ 135,074 | $ 73,904 |
Weighted average shares | 149,677 | 152,203 | 148,999 | 154,955 |
Basic EPS (in dollars per share) | $ 0.52 | $ 0.43 | $ 0.91 | $ 0.48 |
Weighted average shares, including the dilutive effect of stock-based awards (2,241 and 2,539 for the thirteen weeks ended October 1, 2016 and October 3, 2015, respectively, and 2,837 and 3,061 for the thirty-nine weeks ended October 1, 2016, and October 3, 2015, respectively) | 151,918 | 154,742 | 151,836 | 158,016 |
Diluted EPS (in dollars per share) | $ 0.52 | $ 0.42 | $ 0.89 | $ 0.47 |
Earnings Per Share - Computat37
Earnings Per Share - Computation of Basic EPS and Diluted EPS (Additional Information) (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares, including the dilutive effect of stock-based awards | 2,241 | 2,539 | 2,837 | 3,061 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Earnings Per Share [Abstract] | ||||
Stock-based awards excluded from the computation of Diluted Earnings Per Share | 0 | 2,869 | 3 | 2,444 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | Jun. 01, 2016shares | Oct. 01, 2016USD ($)shares | Oct. 03, 2015shares | Oct. 01, 2016USD ($)shares | Oct. 03, 2015shares | Jun. 07, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of additional shares authorized | 10,000,000 | |||||
Decrease in number of shares available for grant per award other than employee stock options or stock appreciation rights | 2.29 | 2.37 | ||||
Approximate number of shares available for grant under the 2011 Incentive Plan | 20,468,000 | 20,468,000 | ||||
Cash-Settled Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 24,569,000 | 1,973,000 | 0 | 26,542,000 | 0 | |
Compensation not yet recognized | $ | $ 18,631 | $ 18,631 | ||||
Compensation cost not yet recognized, period for recognition | 2 years 8 months 12 days | |||||
Cash-Settled Restricted Stock Units, Time-Vested | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 12,285,000 | |||||
Award vesting period | 3 years | |||||
Cash-Settled Restricted Stock Units, Performance-Vested | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 12,284,000 | |||||
Award requisite service period | 3 years |
Stock-Based Compensation - Equi
Stock-Based Compensation - Equity and Liability Awards Granted (Detail) - USD ($) shares in Thousands, $ in Thousands | Jun. 01, 2016 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted (in shares) | 0 | 0 | 5 | 839 | ||
Compensation expense | $ 9,656 | $ 10,762 | $ 29,564 | $ 28,291 | ||
Exercised stock options (in shares) | 0 | 197 | 162 | 567 | ||
Restricted stock issued based on performance-based grants | 13 | 0 | 425 | 1,015 | ||
Stock Options, Restricted Stock, and Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 7,840 | $ 10,762 | $ 27,137 | $ 28,291 | ||
Related income tax benefit | $ 2,613 | $ 3,252 | $ 9,058 | $ 9,065 | ||
Restricted Stock And Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 24 | 48 | 517 | 1,395 | ||
Vested restricted stock and/or restricted stock units (in shares) | [1] | 78 | 47 | 1,877 | 1,455 | |
Cash-Settled Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 24,569 | 1,973 | 0 | 26,542 | 0 | |
Compensation expense | $ 1,816 | $ 0 | $ 2,427 | $ 0 | ||
[1] | Includes 13 and 0 shares, for the thirteen weeks ended October 1, 2016 and October 3, 2015, respectively, and 425 and 1,015 shares, for the thirty-nine weeks ended October 1, 2016 and October 3, 2015, respectively, which were issued based on performance-based grants previously approved by the Human Resources Committee of the Board of Directors. The remainder of the shares are time-based grants. |
Derivative Financial Instrume41
Derivative Financial Instruments - Notional Amounts and Fair Values of Derivative Instruments (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Total derivative, notional amount | [1] | $ 2,031,888 | $ 2,288,257 |
Derivatives not receiving hedge accounting treatment, Fair Value | (2,874) | 45,916 | |
Other current assets | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset, notional amount | [1] | 846,316 | 1,669,296 |
Derivatives not receiving hedge accounting treatment, Fair Value | 3,967 | 54,133 | |
Accrued expenses | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional amount | [1] | 1,185,572 | 618,961 |
Derivatives not receiving hedge accounting treatment, Fair Value | $ (6,841) | $ (8,217) | |
[1] | Notional amounts represent the gross amount of foreign currency bought or sold at maturity for foreign exchange contracts. |
Derivative Financial Instrume42
Derivative Financial Instruments - Amounts Recognized in Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Net gain (loss) recognized in earnings | $ (7,505) | $ (7,037) | $ (33,657) | $ 84,857 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Detail) - Fair value, measurements, recurring - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 | ||
Assets: | ||||
Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit | $ 203,993 | $ 201,051 | ||
Marketable trading securities | 49,458 | [1] | 51,720 | [2] |
Derivative assets | 3,967 | 54,133 | ||
Total assets at fair value | 257,418 | 306,904 | ||
Liabilities: | ||||
Derivative liabilities | 6,841 | 8,217 | ||
Contingent consideration | 28,903 | 3,371 | ||
Total liabilities at fair value | 35,744 | 11,588 | ||
Level 1 | ||||
Assets: | ||||
Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit | 203,993 | 201,051 | ||
Marketable trading securities | 49,458 | [1] | 51,720 | [2] |
Derivative assets | 0 | 0 | ||
Total assets at fair value | 253,451 | 252,771 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Contingent consideration | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit | 0 | 0 | ||
Marketable trading securities | 0 | [1] | 0 | [2] |
Derivative assets | 3,967 | 54,133 | ||
Total assets at fair value | 3,967 | 54,133 | ||
Liabilities: | ||||
Derivative liabilities | 6,841 | 8,217 | ||
Contingent consideration | 0 | 0 | ||
Total liabilities at fair value | 6,841 | 8,217 | ||
Level 3 | ||||
Assets: | ||||
Cash equivalents, consisting primarily of money market accounts and short-term certificates of deposit | 0 | 0 | ||
Marketable trading securities | 0 | [1] | 0 | [2] |
Derivative assets | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Contingent consideration | 28,903 | 3,371 | ||
Total liabilities at fair value | $ 28,903 | $ 3,371 | ||
[1] | Included in other current assets in our consolidated balance sheet. | |||
[2] | Included in other current assets in our consolidated balance sheet. |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Jan. 02, 2016 | |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 1,121,429 | $ 1,116,421 |
Fair value, measurements, recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 1,091,789 | 1,090,673 |
Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 1,121,429 | $ 1,116,421 |
Senior unsecured notes, 5.25% due 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, interest rate | 5.25% | 5.25% |
Senior unsecured notes, 5.25% due 2017 | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, maturity date | 2,017 | |
Senior unsecured notes, 5.25% due 2017 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 309,358 | $ 313,039 |
Senior unsecured notes, 5.25% due 2017 | Fair value, measurements, recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 299,615 | 299,313 |
Senior unsecured notes, 5.25% due 2017 | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 309,358 | $ 313,039 |
Senior unsecured notes, 5.00% due 2022 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, interest rate | 5.00% | 5.00% |
Senior unsecured notes, 5.00% due 2022 | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, maturity date | 2,022 | |
Senior unsecured notes, 5.00% due 2022 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 309,234 | $ 301,867 |
Senior unsecured notes, 5.00% due 2022 | Fair value, measurements, recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 297,276 | 296,928 |
Senior unsecured notes, 5.00% due 2022 | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 309,234 | $ 301,867 |
Senior unsecured notes, 4.95% due 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, interest rate | 4.95% | 4.95% |
Senior unsecured notes, 4.95% due 2024 | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, maturity date | 2,024 | |
Senior unsecured notes, 4.95% due 2024 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 502,837 | $ 501,515 |
Senior unsecured notes, 4.95% due 2024 | Fair value, measurements, recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | 494,898 | 494,432 |
Senior unsecured notes, 4.95% due 2024 | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value disclosure | $ 502,837 | $ 501,515 |
Acquisitions, Goodwill and In45
Acquisitions, Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($)acquisition | Apr. 02, 2016USD ($)acquisition | Jan. 02, 2016USD ($) | Oct. 01, 2016USD ($) | Oct. 03, 2015USD ($) | Jan. 02, 2016USD ($) | |
Acquisitions [Line Items] | |||||||
Payments to acquire business, net of cash acquired | $ 173,311 | $ 100,855 | |||||
Goodwill | $ 946,289 | $ 843,001 | $ 946,289 | $ 843,001 | |||
Estimated useful lives for finite-lived identifiable intangible assets | 12 years | ||||||
Customer relationships | |||||||
Acquisitions [Line Items] | |||||||
Write-off of previously acquired intangible asset | 5,832 | ||||||
AVAD | Trade names | |||||||
Acquisitions [Line Items] | |||||||
Write-off of previously acquired intangible asset | 12,525 | ||||||
Minimum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 2 years | ||||||
Maximum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 13 years | ||||||
Strategic Acquisitions | |||||||
Acquisitions [Line Items] | |||||||
Number of businesses acquired | acquisition | 3 | 3 | |||||
Payments to acquire business, net of cash acquired | $ 112,431 | $ 66,284 | |||||
Estimated future earn-out | 10,630 | 17,159 | |||||
Hold-back | 3,629 | ||||||
Goodwill | 127,828 | 17,146 | |||||
Preliminary purchase price allocation adjustment to intangible assets | $ 5,700 | $ 53,608 | |||||
Strategic Acquisitions | Minimum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 3 years | 1 year | |||||
Strategic Acquisitions | Maximum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 12 years | 12 years | |||||
Odin | |||||||
Acquisitions [Line Items] | |||||||
Payments to acquire business, net of cash acquired | 163,906 | ||||||
Goodwill | $ 109,013 | 109,768 | $ 109,013 | 109,768 | |||
Preliminary purchase price allocation adjustment to intangible assets | $ 65,240 | 66,138 | |||||
Proceeds from previous acquisition | (2,951) | ||||||
Odin | Minimum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 3 years | ||||||
Odin | Maximum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 6 years | ||||||
Acao | |||||||
Acquisitions [Line Items] | |||||||
Payments to acquire business, net of cash acquired | $ 68,654 | ||||||
Goodwill | $ 58,043 | 58,043 | |||||
Preliminary purchase price allocation adjustment to intangible assets | 26,200 | ||||||
Additional cash payment | 1,336 | ||||||
Preliminary purchase price allocation adjustment to goodwill | 38,393 | ||||||
Acao | Minimum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 4 years | ||||||
Acao | Maximum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 11 years | ||||||
DocData | |||||||
Acquisitions [Line Items] | |||||||
Payments to acquire business, net of cash acquired | 144,752 | ||||||
Goodwill | $ 133,538 | $ 133,538 | |||||
Preliminary purchase price allocation adjustment to intangible assets | 42,552 | ||||||
Preliminary purchase price allocation adjustment to goodwill | $ 103,244 | ||||||
DocData | Minimum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 3 years | ||||||
DocData | Maximum | |||||||
Acquisitions [Line Items] | |||||||
Estimated useful lives for finite-lived identifiable intangible assets | 10 years |
Acquisitions, Goodwill and In46
Acquisitions, Goodwill and Intangible Assets - Schedule of Gross Carrying Amounts (Detail) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Business Combinations [Abstract] | ||
Gross carrying amount of finite-lived intangible assets | $ 650,716 | $ 537,308 |
Net carrying amount of finite-lived intangible assets | $ 429,035 | $ 374,674 |
Reorganization Costs - Summary
Reorganization Costs - Summary of the Reorganization and Expense-Reduction Program Costs (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016USD ($)employee | Oct. 03, 2015USD ($)employee | Oct. 01, 2016USD ($)employee | Oct. 03, 2015USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | ||||
Headcount Reduction | employee | 205 | 497 | 676 | 568 |
Employee Termination Benefits | $ 6,725 | $ 18,139 | $ 32,453 | $ 29,816 |
Facility and Other Costs | 2 | 1,186 | 2,461 | 2,466 |
Total Reorganization Costs | 6,727 | 19,325 | 34,914 | 32,282 |
Adjustments to Prior Year Costs | 744 | (367) | (3,187) | (3,048) |
Total Reorganization Costs | 7,471 | 18,958 | 31,727 | 29,234 |
North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee Termination Benefits | 2,510 | 8,631 | 7,692 | 13,248 |
Facility and Other Costs | 61 | 0 | 740 | 56 |
Total Reorganization Costs | 2,571 | 8,631 | 8,432 | 13,304 |
Adjustments to Prior Year Costs | 628 | (250) | (1,155) | (1,212) |
Total Reorganization Costs | 3,199 | 8,381 | 7,277 | 12,092 |
Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee Termination Benefits | 3,275 | 5,663 | 21,603 | 11,891 |
Facility and Other Costs | (66) | 1,186 | 1,045 | 1,946 |
Total Reorganization Costs | 3,209 | 6,849 | 22,648 | 13,837 |
Adjustments to Prior Year Costs | 33 | (117) | (1,594) | (1,836) |
Total Reorganization Costs | 3,242 | 6,732 | 21,054 | 12,001 |
Asia-Pacific | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee Termination Benefits | 0 | 3,315 | 1,153 | 3,984 |
Facility and Other Costs | 0 | 0 | 215 | 0 |
Total Reorganization Costs | 0 | 3,315 | 1,368 | 3,984 |
Adjustments to Prior Year Costs | 0 | 0 | (429) | 0 |
Total Reorganization Costs | 0 | 3,315 | 939 | 3,984 |
Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee Termination Benefits | 940 | 530 | 2,005 | 693 |
Facility and Other Costs | 7 | 0 | 461 | 464 |
Total Reorganization Costs | 947 | 530 | 2,466 | 1,157 |
Adjustments to Prior Year Costs | 83 | 0 | (9) | 0 |
Total Reorganization Costs | $ 1,030 | $ 530 | $ 2,457 | $ 1,157 |
Reorganization Costs - Restruct
Reorganization Costs - Restructuring Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | ||
Restructuring Reserve [Roll Forward] | |||||
Remaining Liability at January 2, 2016 | $ 16,233 | ||||
Expenses, Net | $ 7,471 | $ 18,958 | 31,727 | $ 29,234 | |
Amounts Paid and Charged Against the Liability | (30,691) | ||||
Foreign Currency Translation | 0 | ||||
Remaining Liability at October 1, 2016 (a) | [1] | 17,269 | 17,269 | ||
Adjustments to prior year costs | (744) | $ 367 | 3,187 | $ 3,048 | |
North America, Europe, and Latin America | |||||
Restructuring Reserve [Roll Forward] | |||||
Adjustments to prior year costs | 1,206 | ||||
Asia-Pacific and Europe | |||||
Restructuring Reserve [Roll Forward] | |||||
Adjustments to prior year costs | 1,981 | ||||
Reorganization actions | Employee termination benefits | |||||
Restructuring Reserve [Roll Forward] | |||||
Remaining Liability at January 2, 2016 | 15,429 | ||||
Expenses, Net | [2] | 31,247 | |||
Amounts Paid and Charged Against the Liability | (29,724) | ||||
Foreign Currency Translation | 0 | ||||
Remaining Liability at October 1, 2016 (a) | [1] | 16,952 | 16,952 | ||
Reorganization actions | Facility Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Remaining Liability at January 2, 2016 | 804 | ||||
Expenses, Net | [3] | 480 | |||
Amounts Paid and Charged Against the Liability | (967) | ||||
Foreign Currency Translation | |||||
Remaining Liability at October 1, 2016 (a) | [1] | $ 317 | $ 317 | ||
[1] | We expect the remaining liabilities to be substantially utilized by the end of 2016. | ||||
[2] | Adjustments reflected in the table above include reductions of $1,206 to 2015 and 2014 reorganization plan liabilities recorded in the prior year in North America, Europe and Latin America for lower than expected employee termination benefits. | ||||
[3] | Adjustments reflected in the table above include a reduction of $1,981 to reorganization liabilities recorded in the prior year in Asia-Pacific and Europe for lower than expected facility and other costs, respectively. |
Reorganization Costs - Aditiona
Reorganization Costs - Aditional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization costs excluding adjustment to prior year costs | $ 6,727 | $ 19,325 | $ 34,914 | $ 32,282 |
Reorganization costs | 7,471 | 18,958 | 31,727 | 29,234 |
Employee Termination Benefits | 6,725 | 18,139 | 32,453 | 29,816 |
Facility and Other Costs | 2 | $ 1,186 | 2,461 | $ 2,466 |
2016 Reorganization Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization costs excluding adjustment to prior year costs | $ 7,471 | $ 14,618 |
Debt - Carrying Value of Outsta
Debt - Carrying Value of Outstanding Debt (Detail) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Debt | ||
Total debt, current and non-current | $ 1,326,789 | $ 1,224,805 |
Short-term debt and current maturities of long-term debt | (534,213) | (134,103) |
Long-term debt, less current maturities | 792,576 | 1,090,702 |
Senior unsecured notes, 4.95% due 2024 | ||
Debt | ||
Total debt, current and non-current | 494,898 | 494,432 |
Senior unsecured notes, 5.00% due 2022 | ||
Debt | ||
Total debt, current and non-current | 297,276 | 296,928 |
Senior unsecured notes, 5.25% due 2017 | ||
Debt | ||
Total debt, current and non-current | 299,615 | 299,313 |
Lines of credit and other debt | ||
Debt | ||
Total debt, current and non-current | $ 235,000 | $ 134,132 |
Debt - Carrying Value of Outs51
Debt - Carrying Value of Outstanding Debt (Additional Information) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Oct. 01, 2016 | Jan. 03, 2015 | Jan. 02, 2016 | |
Senior unsecured notes, 5.25% due 2017 | |||
Debt | |||
Debt, interest rate | 5.25% | 5.25% | |
Debt Instrument, Maturity Date | Sep. 1, 2017 | Sep. 1, 2017 | |
Deferred Finance Costs, Gross | $ 385 | $ 687 | |
Senior unsecured notes, 5.00% due 2022 | |||
Debt | |||
Debt, interest rate | 5.00% | 5.00% | |
Debt Instrument, Maturity Date | Aug. 10, 2022 | Aug. 10, 2022 | |
Debt Instrument, Unamortized Discount | $ 1,052 | $ 1,187 | |
Deferred Finance Costs, Gross | $ 1,672 | $ 1,885 | |
Senior unsecured notes, 4.95% due 2024 | |||
Debt | |||
Debt, interest rate | 4.95% | 4.95% | |
Debt Instrument, Maturity Date | Dec. 15, 2024 | Dec. 15, 2024 | |
Debt Instrument, Unamortized Discount | $ 1,438 | $ 1,569 | |
Deferred Finance Costs, Gross | $ 3,664 | $ 3,999 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | |
Income Tax Examination [Line Items] | |||||
Effective income tax rate | 30.30% | 27.40% | 31.40% | 41.50% | |
Net discrete tax benefit | $ 1,088 | $ (1,945) | $ 3,485 | $ (9,580) | |
Net discrete tax benefit percentage points of effective tax rate | 1.00% | 2.20% | 1.80% | (7.60%) | |
Net discrete tax benefit, expiration of statute of limitations in various tax jurisdictions | $ 5,000 | ||||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Gross unrecognized tax benefits | $ 26,520 | $ 26,520 | $ 23,445 | ||
Net increase (decrease) in gross unrecognized tax benefits | 3,075 | ||||
Interest and penalties on unrecognized tax benefits | $ 6,738 | 6,738 | $ 6,652 | ||
Foreign Tax Credit | |||||
Income Tax Examination [Line Items] | |||||
Increase in valuation allowance | $ 14,580 | $ 14,580 |
Segment Information - Financial
Segment Information - Financial Information by Reporting Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2016 | Jul. 02, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | |
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 10,226,826 | $ 10,515,880 | $ 29,686,033 | $ 31,713,584 | ||
Income (loss) from operations | 137,064 | 119,429 | 272,917 | 219,213 | ||
Stock-based compensation expense | (9,656) | (10,762) | (29,564) | (28,291) | ||
Impairment of internally developed software | 0 | $ (115,856) | 0 | 0 | (115,856) | |
Loss on sale of affiliate | 0 | 0 | (14,878) | 0 | ||
Capital expenditures | 29,753 | 42,449 | 80,229 | 99,022 | ||
Depreciation | 26,482 | 22,730 | 78,154 | 66,209 | ||
Amortization of intangible assets | 20,574 | 14,206 | 73,220 | 47,226 | ||
Identifiable assets | 12,293,941 | 12,293,941 | $ 12,300,689 | |||
Long-lived assets | 813,645 | 813,645 | 756,088 | |||
North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 4,522,053 | 4,477,097 | 12,837,687 | 13,537,238 | ||
Income (loss) from operations | 91,686 | 88,742 | 219,058 | 223,596 | ||
Capital expenditures | 13,383 | 35,121 | 43,869 | 77,315 | ||
Depreciation | 17,314 | 16,455 | 51,998 | 47,969 | ||
Amortization of intangible assets | 10,190 | 8,115 | 35,854 | 28,847 | ||
Identifiable assets | 5,482,101 | 5,482,101 | 5,243,878 | |||
Long-lived assets | 419,497 | 419,497 | 427,180 | |||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 2,748,167 | 2,928,507 | 8,189,583 | 8,857,752 | ||
Income (loss) from operations | 2,470 | 2,577 | (21,225) | 20,913 | ||
Capital expenditures | 13,242 | 3,862 | 18,495 | 11,514 | ||
Depreciation | 5,069 | 3,082 | 15,044 | 8,630 | ||
Amortization of intangible assets | 8,650 | 3,167 | 28,012 | 11,306 | ||
Identifiable assets | 3,281,714 | 3,281,714 | 3,547,495 | |||
Long-lived assets | 272,252 | 272,252 | 234,672 | |||
Asia-Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 2,318,185 | 2,528,116 | 6,769,671 | 7,553,865 | ||
Income (loss) from operations | 41,003 | 31,816 | 94,931 | 94,358 | ||
Capital expenditures | 2,335 | 2,958 | 10,136 | 8,409 | ||
Depreciation | 3,037 | 2,744 | 8,646 | 8,182 | ||
Amortization of intangible assets | 1,839 | 1,997 | 5,765 | 5,743 | ||
Identifiable assets | 2,563,742 | 2,563,742 | 2,476,243 | |||
Long-lived assets | 72,065 | 72,065 | 71,602 | |||
Latin America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 638,421 | 582,160 | 1,889,092 | 1,764,729 | ||
Income (loss) from operations | 11,561 | 7,056 | 24,595 | 24,493 | ||
Capital expenditures | 793 | 508 | 7,729 | 1,784 | ||
Depreciation | 1,062 | 449 | 2,466 | 1,428 | ||
Amortization of intangible assets | (105) | $ 927 | 3,589 | $ 1,330 | ||
Identifiable assets | 966,384 | 966,384 | 1,033,073 | |||
Long-lived assets | $ 49,831 | $ 49,831 | $ 22,634 |
Segment Information - Integrati
Segment Information - Integration, Transition and Other Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2016 | Jul. 02, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | ||
Segment Reporting Information [Line Items] | ||||||
Integration, transition and other costs | [1] | $ 11,491 | $ 16,053 | $ 42,364 | $ 32,813 | |
Litigation settlement gain | $ 3,790 | |||||
North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Integration, transition and other costs | [1] | 8,542 | 5,901 | 34,651 | 16,545 | |
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Integration, transition and other costs | [1] | 2,419 | 5,749 | 5,683 | 8,601 | |
Settlement of employee related taxes | 4,736 | |||||
Asia-Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Integration, transition and other costs | [1] | 0 | 3,674 | 243 | 5,311 | |
Latin America | ||||||
Segment Reporting Information [Line Items] | ||||||
Integration, transition and other costs | [1] | $ 530 | $ 729 | $ 1,787 | $ 2,356 | |
[1] | osts are primarily related to (i) professional, consulting and integration costs associated with our acquisitions and impending merger, (ii) consulting, retention and transition costs associated with our reorganization programs charged to selling, general and administrative, or SG&A, expenses, (iii) a gain of $3,790 related to the final settlement of a class action lawsuit, which was recorded as a reduction of SG&A expenses in North America in the second quarter of 2016 |
Segment Information - Schedule
Segment Information - Schedule of Revenue and Long-lived Assets by Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | $ 10,226,826 | $ 10,515,880 | $ 29,686,033 | $ 31,713,584 | |
Net sales, percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Long-lived assets | $ 813,645 | $ 813,645 | $ 756,088 | ||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | $ 4,241,103 | $ 4,183,568 | $ 12,021,269 | $ 12,611,394 | |
Net sales, percentage | 41.00% | 40.00% | 40.00% | 40.00% | |
Long-lived assets | $ 406,179 | $ 406,179 | 406,195 | ||
Outside of the United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | $ 5,985,723 | $ 6,332,312 | $ 17,664,764 | $ 19,102,190 | |
Net sales, percentage | 59.00% | 60.00% | 60.00% | 60.00% | |
Long-lived assets | $ 407,466 | $ 407,466 | $ 349,893 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - 9 months ended Oct. 01, 2016 BRL in Thousands, $ in Thousands | USD ($) | BRL |
Contingencies And Commitments [Line Items] | ||
Maximum amount of reimbursement to third party | $ 6,873 | |
2005 Federal import tax assessment | ||
Contingencies And Commitments [Line Items] | ||
Amount of commercial taxes due on the import of software acquired | 3,917 | BRL 12,714 |
2007 Sao Paulo Municipal tax assessment | ||
Contingencies And Commitments [Line Items] | ||
Amount of service taxes due on resale of software, principal and penalties | 16,968 | 55,083 |
2011 Federal income tax assessment | ||
Contingencies And Commitments [Line Items] | ||
Amount of statutory penalties for delays in providing certain electronic files | 4,912 | 15,947 |
2012 Sao Paulo Municipal tax assessment | ||
Contingencies And Commitments [Line Items] | ||
Amount of service taxes due on the importation of software, principal and penalties | 697 | 2,263 |
2013 Sao Paulo Municipal tax assessment | ||
Contingencies And Commitments [Line Items] | ||
Amount of service taxes due on the importation of software, principal and penalties | 2,495 | 8,100 |
Incremental Charges [Member] | ||
Contingencies And Commitments [Line Items] | ||
Amount of penalties and interest likely to be assessed | 91,901 | 298,330 |
Acao | Sao Paulo Municipal Tax Assessment, 2015 [Member] | ||
Contingencies And Commitments [Line Items] | ||
Amount of service taxes due on resale of software, principal and penalties | 20,701 | 67,200 |
Escrow deposit | 23,475 | 76,204 |
Loss contingency accrual | $ 2,310 | BRL 7,500 |
Subsequent Events Narrative (De
Subsequent Events Narrative (Details) - USD ($) | Oct. 19, 2016 | Oct. 18, 2016 |
Merger Agreement with Tianjin Tianhai | Revolving Senior Unsecured Credit Facility, Amendment 3 | Revolving Credit Facility | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 1,050,000 | $ 1,500,000 |