Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Apr. 30, 2013 | Feb. 10, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Apr-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'tecd | ' |
Entity Registrant Name | 'TECH DATA CORP | ' |
Entity Central Index Key | '0000790703 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Common Stock, Shares Outstanding | ' | 38,061,955 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $326,527 | $340,564 |
Accounts receivable, less allowances of $55,601 and $58,284 | 2,749,087 | 3,215,920 |
Inventories | 2,185,803 | 2,254,510 |
Prepaid expenses and other assets | 187,594 | 334,431 |
Total current assets | 5,449,011 | 6,145,425 |
Property and equipment, net | 81,081 | 84,395 |
Other assets, net | 580,009 | 601,140 |
Total assets | 6,110,101 | 6,830,960 |
Current liabilities: | ' | ' |
Accounts payable | 3,192,227 | 3,657,251 |
Accrued expenses and other liabilities | 533,184 | 620,167 |
Revolving credit loans and current maturities of long-term debt, net | 34,609 | 167,522 |
Total current liabilities | 3,760,020 | 4,444,940 |
Long-term debt, less current maturities | 354,210 | 354,458 |
Other long-term liabilities | 107,484 | 113,193 |
Total liabilities | 4,221,714 | 4,912,591 |
Commitments and contingencies (Note 11) | ' | ' |
Shareholders’ equity: | ' | ' |
Common stock, par value $.0015; 200,000,000 shares authorized; 59,239,085 shares issued at April 30, 2013 and January 31, 2013 | 89 | 89 |
Additional paid-in capital | 671,669 | 680,715 |
Treasury stock, at cost (21,225,670 and 21,436,566 shares at April 30, 2013 and January 31, 2013) | -896,987 | -905,900 |
Retained earnings | 1,831,118 | 1,813,358 |
Accumulated other comprehensive income | 282,498 | 330,107 |
Total shareholders' equity | 1,888,387 | 1,918,369 |
Total liabilities and shareholders' equity | $6,110,101 | $6,830,960 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $55,601 | $58,284 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 59,239,085 | 59,239,085 |
Treasury stock, shares | 21,225,670 | 21,436,566 |
Consolidated_Statement_Of_Inco
Consolidated Statement Of Income (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | |
Income Statement [Abstract] | ' | ' | |
Net sales | $6,147,757 | $5,910,063 | [1] |
Cost of products sold | 5,825,343 | 5,586,655 | |
Gross profit | 322,414 | 323,408 | |
Selling, general and administrative expenses | 283,360 | 240,950 | |
Restatement expenses (Note 2) | 3,023 | 0 | |
Operating Expenses | 286,383 | 240,950 | |
Operating income | 36,031 | 82,458 | |
Interest expense | 7,098 | 3,069 | |
Other (income) expense, net | -2,164 | 235 | |
Income before income taxes | 31,097 | 79,154 | |
Provision for income taxes | 13,337 | 23,142 | |
Consolidated net income | 17,760 | 56,012 | [1] |
Net income attributable to noncontrolling interest | 0 | -1,834 | [1] |
Net income attributable to shareholders of Tech Data Corporation | $17,760 | $54,178 | [1] |
Net income per share attributable to shareholders of Tech Data Corporation | ' | ' | |
Basic (in USD per share) | $0.47 | $1.32 | |
Diluted (in USD per share) | $0.47 | $1.30 | |
Weighted average common shares outstanding: | ' | ' | |
Basic (shares) | 37,907 | 41,154 | [1] |
Diluted (shares) | 38,171 | 41,599 | [1] |
[1] | (1) See Note 2 - Restatement of Consolidated Financial Statements. |
Consolidated_Statement_Of_Comp
Consolidated Statement Of Comprehensive Income (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | |
Statement of Other Comprehensive Income [Abstract] | ' | ' | |
Consolidated net income | $17,760 | $56,012 | [1] |
Other comprehensive income: | ' | ' | |
Foreign currency translation adjustment | -47,609 | 27,171 | [1] |
Total comprehensive (loss) income | -29,849 | 83,183 | [1] |
Comprehensive income attributable to noncontrolling interest | 0 | -2,184 | [1] |
Comprehensive (loss) income attributable to shareholders of Tech Data Corporation | ($29,849) | $80,999 | [1] |
[1] | (1) See Note 2 - Restatement of Consolidated Financial Statements. |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | |
Cash flows from operating activities: | ' | ' | |
Cash received from customers | $6,854,110 | $6,423,649 | [1] |
Cash paid to vendors and employees | -6,695,526 | -6,394,912 | [1] |
Interest paid, net | -9,538 | -2,970 | [1] |
Income taxes paid | -14,825 | -33,118 | [1] |
Net cash provided by (used in) operating activities | 134,221 | -7,351 | [1] |
Cash flows from investing activities: | ' | ' | |
Acquisition of businesses, net of cash acquired | 8,044 | -8,782 | [1] |
Acquisition of trademark | -1,519 | 0 | [1] |
Expenditures for property and equipment | -3,692 | -5,142 | [1] |
Software and software development costs | -4,042 | -9,116 | [1] |
Net cash used in investing activities | -1,209 | -23,040 | [1] |
Cash flows from financing activities: | ' | ' | |
Proceeds from the reissuance of treasury stock | 1,139 | 2,714 | [1] |
Cash paid for purchase of treasury stock | 0 | -37,553 | [1] |
Return of capital to joint venture partner | 0 | -4,646 | [1] |
Acquisition earn-out payment | -6,183 | 0 | [1] |
Net repayments on revolving credit loans | -133,308 | -17,369 | [1] |
Principal payments on long-term debt | -130 | -127 | [1] |
Excess tax benefit from stock-based compensation | 684 | 4,497 | [1] |
Net cash used in financing activities | -137,798 | -52,484 | [1] |
Effect of exchange rate changes on cash and cash equivalents | -9,251 | 6,142 | [1] |
Net decrease in cash and cash equivalents | -14,037 | -76,733 | [1] |
Cash and cash equivalents at beginning of year | 340,564 | 486,262 | [1] |
Cash and cash equivalents at end of period | 326,527 | 409,529 | [1] |
Reconciliation of net income to net cash provided by operating activities: | ' | ' | |
Net income attributable to shareholders of Tech Data Corporation | 17,760 | 54,178 | [1] |
Net income attributable to noncontrolling interest | 0 | 1,834 | [1] |
Consolidated net income | 17,760 | 56,012 | [1] |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | |
Depreciation and amortization | 17,967 | 13,397 | [1] |
Provision for losses on accounts receivable | 1,474 | 406 | [1] |
Stock-based compensation expense | 3,091 | 2,941 | [1] |
Accretion of debt discount on Senior Notes | 66 | 0 | [1] |
Excess tax benefits from stock-based compensation | -684 | -4,497 | [1] |
Changes in operating assets and liabilities: | ' | ' | |
Accounts receivable | 400,527 | 218,749 | [1] |
Inventories | 32,905 | -117,860 | [1] |
Prepaid expenses and other assets | 123,941 | 31,827 | [1] |
Accounts payable | -399,971 | -128,353 | [1] |
Accrued expenses and other liabilities | -62,855 | -79,973 | [1] |
Total adjustments | 116,461 | -63,363 | [1] |
Net cash provided by (used in) operating activities | $134,221 | ($7,351) | [1] |
[1] | (1) See Note 2 - Restatement of Consolidated Financial Statements. |
Business_And_Summary_Of_Signif
Business And Summary Of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Business And Summary Of Significant Accounting Policies | ' |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Description of Business | |
Tech Data Corporation (“Tech Data” or the “Company”) is one of the world’s largest wholesale distributors of technology products. The Company serves as an indispensable link in the technology supply chain by bringing products from the world’s leading technology vendors to market, as well as providing customers with advanced logistics capabilities and value-added services. Tech Data’s customers include value-added resellers, direct marketers, retailers and corporate resellers who support the diverse technology needs of end users. The Company is managed in two geographic segments: the Americas (including North America and South America) and Europe. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Tech Data and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Noncontrolling interest is recognized for the portion of a consolidated joint venture not owned by the Company. The noncontrolling interest of the consolidated joint venture was purchased by the Company during the third quarter of fiscal 2013. The Company operates on a fiscal year that ends on January 31. | |
Basis of Presentation | |
The consolidated financial statements have been prepared by the Company, without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The Company prepares its financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of the Company as of April 30, 2013 and its consolidated statements of income, comprehensive income and cash flows for the three months ended April 30, 2013 and 2012. | |
Accounts Receivable Purchase Agreements | |
The Company has uncommitted accounts receivable purchase agreements under which certain accounts receivable may be sold, without recourse, to third-party financial institutions. Under these programs, the Company may sell certain accounts receivable in exchange for cash less a discount, as defined in the agreements. Available capacity under these programs, which the Company uses as a source of working capital funding, is dependent on the level of accounts receivable eligible to be sold into these programs and the financial institutions' willingness to purchase such receivables. In addition, certain of these agreements also require that the Company continue to service, administer and collect the sold accounts receivable. At April 30, 2013 and January 31, 2013, the Company had a total of $213.0 million and $284.7 million, respectively, of accounts receivable sold to and held by financial institutions under these agreements. During the first quarters of fiscal 2014 and 2013, discount fees recorded under these facilities were $0.6 million and $0.5 million, respectively, which are included as a component of "other (income) expense, net" in the Company's Consolidated Statement of Income. | |
Seasonality | |
The Company’s quarterly operating results have fluctuated significantly in the past and will likely continue to do so in the future as a result of currency fluctuations and seasonal variations in the demand for the products and services offered. Narrow operating margins may magnify the impact of these factors on the Company's operating results. Recent historical seasonal variations have included an increase in European demand during the Company’s fiscal fourth quarter and decreased demand in other fiscal quarters, particularly quarters that include summer months. Given that more than one half of the Company’s revenues are derived from Europe, the worldwide results closely follow the seasonality trends in Europe. Additionally, the life cycles of major products, as well as the impact of future acquisitions and dispositions, may also materially impact the Company’s business, financial condition, or consolidated results of operations. Therefore, the results of operations for the three months ended April 30, 2013 and 2012 are not necessarily indicative of the results that can be expected for the entire fiscal year ended January 31, 2014. | |
Recently Adopted Accounting Standards | |
In July 2012, the FASB issued a new accounting standard which allows an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test for indefinite-lived intangible assets. The accounting standard states that an entity would not be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that the indefinite-lived intangible asset is impaired. This standard was effective for the Company beginning February 1, 2013. As the Company currently has no material indefinite-lived intangible assets, other than goodwill, this standard had no impact on the Company's consolidated financial position, income, comprehensive income and cash flows. | |
In February 2013, the FASB issued an accounting standard which requires an entity to provide additional information regarding the amounts reclassified out of accumulated other comprehensive income by component, the income statement line item to which the reclassification was made and if applicable, cross-referenced to related footnote disclosures. The accounting standard was effective for the Company beginning with the quarter ending April 30, 2013. As the requirements of this standard are disclosure only, there was no impact on the Company's consolidated financial position, income, comprehensive income or cash flows. | |
Recently Issued Accounting Standards | |
In March 2013, the FASB issued an accounting standard which clarifies the accounting for the derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The guidance also requires the accounting for a business combination achieved in stages involving a foreign entity to be treated as a single event. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2014 and is to be applied prospectively to derecognition events occurring after the effective date. Early adoption is also permitted. If an entity elects to early adopt the accounting standard, it is to be adopted as of the beginning of the entity's fiscal year of adoption. The Company will apply the provisions of this accounting standard to all transactions described above prospectively from the date of adoption. | |
In March 2013, the FASB also issued an accounting standard which requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date as the sum of: i) the amount the reporting entity agreed to pay on the basis of its arrangements among its co-obligors and ii) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2014 and is to be applied retrospectively for all periods presented. Early adoption is also permitted. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial position, income, comprehensive income or cash flows. | |
In July 2013, the FASB issued an accounting standard which requires presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2014 and is to be applied prospectively. The Company currently follows the guidance and this update will have no impact on its financial statement disclosures. |
Restatement_of_Consolidated_Fi
Restatement of Consolidated Financial Statements (Notes) | 3 Months Ended | |||||||||||
Apr. 30, 2013 | ||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | |||||||||||
Restatement of Consolidated Financial Statements | ' | |||||||||||
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||
On March 21, 2013, the Company announced that it would restate previously issued quarterly and audited annual financial statements to correct accounting improprieties involving vendor accounting within the Company's primary operating subsidiary in the UK. The Company further stated that financial statements as of and for the fiscal years ended 2011, 2012, and 2013 and each of the fiscal quarters in 2011, 2012 and 2013 should no longer be relied upon. Thereafter, the Audit Committee initiated an independent investigation by outside counsel, to review certain of the Company’s accounting practices throughout Europe. Concurrently, the Company engaged significant internal and external resources to perform supplemental procedures to assist in reviewing its financial statements and accounting practices (the "Supplemental Procedures"). The Audit Committee has completed its investigation and has identified certain accounting irregularities in the UK subsidiary and certain other European subsidiaries. As disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended January, 31, 2013, filed with the SEC on February 5, 2014, the Company has restated its financial statements as of January 31, 2012, for the fiscal years ended January 31, 2011 and 2012 and as of and for the fiscal 2013 quarters ended April 30, 2012, July 31, 2012 and October 31, 2012. | ||||||||||||
The restatement reflects two primary categories of adjustments: | ||||||||||||
• | Adjustments relating to the inadequate control environment identified within the Company’s primary operating subsidiary in the UK and two other European subsidiaries. These adjustments are necessary primarily to correct errors arising as a result of the following: | |||||||||||
• | Improper accounting for transactions with the Company’s product suppliers (also referred to as “vendor accounting”), including the recognition of vendor incentives, product discounts/price variances, promotions and other vendor credits. These errors primarily affected inventory, accounts payable and cost of goods sold. | |||||||||||
• | Improper manual journal entries and the override of key balance sheet reconciliation controls by local management. These errors affected multiple accounts within the Company’s balance sheet and income statement. | |||||||||||
• | Improper recognition of net foreign currency exchange losses, which resulted in an overstatement of cost of goods sold during fiscal 2013. Multiple accounts on the balance sheet were affected during this period. | |||||||||||
• | Improper accounting for accounts receivable, including improper cash application and recording of value added taxes. These errors primarily affected accounts receivable, accrued expenses and net sales. | |||||||||||
• | Improper cutoff of certain inventory transactions at period end, which resulted in a net understatement of inventory and understatement of accounts payable or cost of goods sold. | |||||||||||
• | Improper cutoff of certain cash receipts at period end, which resulted in an overstatement of cash and understatement of accounts receivable. | |||||||||||
• | Adjustments identified within subsidiaries in addition to the UK subsidiary and two other European subsidiaries noted above, including the following: | |||||||||||
• | Adjustments for errors primarily related to the timing of recognition and classification of various vendor accounting transactions. | |||||||||||
• | Certain adjustments previously identified and considered immaterial, including: | |||||||||||
• | Reclassification of gains (losses) on investments related to the Company’s nonqualified deferred compensation plan, which had no impact on previously reported pre-tax or net income. This reclassification impacted selling, general and administrative expenses and other (income) expense, net. | |||||||||||
• | Adjustments to accounts receivable, inventory, sales and cost of goods sold to record the impact of estimated sales returns for which the Company had previously only recorded the net impact on gross profit. | |||||||||||
• | Other immaterial adjustments to correct errors in sales or inventory cutoff and accrued expenses. These adjustments primarily affected accounts receivable, inventory, accrued expenses, and the Consolidated Statement of Income. | |||||||||||
Income taxes, retained earnings and other comprehensive income have been adjusted primarily to consider the net impacts of the adjustments discussed above. | ||||||||||||
Restatement expenses primarily include legal and accounting fees associated with the investigation, as well as third party consulting fees to support the Supplemental Procedures and other activities in connection with the restatement. During the first quarter of fiscal 2014, the Company has incurred approximately $3.0 million of restatement expenses which are recorded in "restatement expenses" in the accompanying Consolidated Statement of Income. The Company will incur a total of approximately $54 million to $56 million of restatement expenses during the entire fiscal year ended January 31, 2014. | ||||||||||||
The following tables present the impact of the restatement on the Company’s previously issued consolidated financial statements. | ||||||||||||
Consolidated Statement of Income | ||||||||||||
Three months ended April 30, 2012 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Net sales | $ | 5,895,561 | $ | 14,502 | (1) | $ | 5,910,063 | |||||
Cost of products sold | 5,575,344 | 11,311 | (1) | 5,586,655 | ||||||||
Gross profit | 320,217 | 3,191 | (2) | 323,408 | ||||||||
Selling, general and administrative expenses | 239,324 | 1,626 | (3) | 240,950 | ||||||||
Operating income | 80,893 | 1,565 | 82,458 | |||||||||
Interest expense | 3,069 | 0 | 3,069 | |||||||||
Other expense (income), net | 1,344 | (1,109 | ) | (4) | 235 | |||||||
Income before income taxes | 76,480 | 2,674 | 79,154 | |||||||||
Provision for income taxes | 22,954 | 188 | (5) | 23,142 | ||||||||
Consolidated net income | 53,526 | 2,486 | 56,012 | |||||||||
Net income attributable to noncontrolling interest | (1,834 | ) | 0 | (1,834 | ) | |||||||
Net income attributable to shareholders of Tech Data Corporation | $ | 51,692 | $ | 2,486 | $ | 54,178 | ||||||
Net income per share attributable to shareholders of Tech Data Corporation: | ||||||||||||
Basic | $ | 1.26 | $ | 0.06 | $ | 1.32 | ||||||
Diluted | $ | 1.24 | $ | 0.06 | $ | 1.3 | ||||||
(1) Net sales and cost of products sold adjustments primarily reflect the impact of sales cutoff errors that were not appropriately recorded based on the delivery terms. | ||||||||||||
(2) Gross profit adjustments primarily reflect the impact of both vendor accounting errors in the Company's primary operating subsidiary in the UK and two other European subsidiaries of $3.7 million, and the reversal of an improper deferral of net foreign currency exchange losses in a European subsidiary of $0.4 million, partially offset by various other immaterial errors. | ||||||||||||
(3) Selling, general and administrative expenses include an adjustment to reclassify investment income of $1.1 million related to the Company’s deferred compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan to other expense (income), net and various other adjustments to correct immaterial errors. | ||||||||||||
(4) Other expense (income), net has been adjusted to reclassify investment income of $1.1 million related to the Company’s deferred compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan. | ||||||||||||
(5) The provision for income taxes has been adjusted primarily to increase tax expense as a result of the increase in profit resulting from the restatement adjustments described herein. | ||||||||||||
Consolidated Statement of Comprehensive Income | ||||||||||||
Three months ended April 30, 2012 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
(In thousands) | ||||||||||||
Consolidated net income | $ | 53,526 | $ | 2,486 | $ | 56,012 | ||||||
Other comprehensive income: | ||||||||||||
Foreign currency translation adjustment | 27,996 | (825 | ) | 27,171 | ||||||||
Total comprehensive income | 81,522 | 1,661 | 83,183 | |||||||||
Comprehensive income attributable to noncontrolling interest | (2,184 | ) | 0 | (2,184 | ) | |||||||
Comprehensive income attributable to shareholders of Tech Data Corporation | $ | 79,338 | $ | 1,661 | $ | 80,999 | ||||||
Consolidated Statement of Cash Flows | ||||||||||||
Three Months Ended April 30, 2012 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Cash received from customers | $ | 6,148,879 | $ | 274,770 | $ | 6,423,649 | ||||||
Cash paid to vendors and employees | (6,104,721 | ) | (290,191 | ) | (6,394,912 | ) | ||||||
Interest paid | (2,970 | ) | 0 | (2,970 | ) | |||||||
Income taxes paid | (33,118 | ) | 0 | (33,118 | ) | |||||||
Net cash used provided by (used in) operating activities | 8,070 | (15,421 | ) | (7,351 | ) | |||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of businesses, net of cash acquired | (8,782 | ) | 0 | (8,782 | ) | |||||||
Expenditures for property and equipment | (4,295 | ) | (847 | ) | (5,142 | ) | ||||||
Software development costs | (7,842 | ) | (1,274 | ) | (9,116 | ) | ||||||
Net cash used in investing activities | (20,919 | ) | (2,121 | ) | (23,040 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from the reissuance of treasury stock | 2,714 | 0 | 2,714 | |||||||||
Cash paid for purchase of treasury stock | (37,553 | ) | 0 | (37,553 | ) | |||||||
Return of capital to joint venture partner | (4,646 | ) | 0 | (4,646 | ) | |||||||
Net repayments on revolving credit loans | (17,369 | ) | 0 | (17,369 | ) | |||||||
Principal payments on long-term debt | (127 | ) | 0 | (127 | ) | |||||||
Excess tax benefit from stock-based compensation | 4,497 | 0 | 4,497 | |||||||||
Net cash used in financing activities | (52,484 | ) | 0 | (52,484 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 7,193 | (1,051 | ) | 6,142 | ||||||||
Net decrease in cash and cash equivalents | (58,140 | ) | (18,593 | ) | (76,733 | ) | ||||||
Cash and cash equivalents at beginning of year | 505,178 | (18,916 | ) | 486,262 | ||||||||
Cash and cash equivalents at end of year | $ | 447,038 | $ | (37,509 | ) | $ | 409,529 | |||||
Reconciliation of net income to net cash provided by (used in) operating activities: | ||||||||||||
Net income attributable to shareholders of Tech Data Corporation | $ | 51,692 | $ | 2,486 | $ | 54,178 | ||||||
Net income attributable to noncontrolling interest | 1,834 | 0 | 1,834 | |||||||||
Consolidated net income | 53,526 | 2,486 | 56,012 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 13,397 | 0 | 13,397 | |||||||||
Provision for losses on accounts receivable | 356 | 50 | 406 | |||||||||
Stock-based compensation expense | 2,780 | 161 | 2,941 | |||||||||
Excess tax benefit from stock-based compensation | (4,497 | ) | 0 | (4,497 | ) | |||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | 251,247 | (32,498 | ) | 218,749 | ||||||||
Inventories | (129,323 | ) | 11,463 | (117,860 | ) | |||||||
Prepaid expenses and other assets | 34,257 | (2,430 | ) | 31,827 | ||||||||
Accounts payable | (125,626 | ) | (2,727 | ) | (128,353 | ) | ||||||
Accrued expenses and other liabilities | (88,047 | ) | 8,074 | (79,973 | ) | |||||||
Total adjustments | (45,456 | ) | (17,907 | ) | (63,363 | ) | ||||||
Net cash used provided by (used in) operating activities | $ | 8,070 | $ | (15,421 | ) | $ | (7,351 | ) | ||||
Earnings_Per_Share_EPS
Earnings Per Share ("EPS") | 3 Months Ended | ||||||||||||||||||||||
Apr. 30, 2013 | |||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||
Earnings Per Share ("EPS") | ' | ||||||||||||||||||||||
EARNINGS PER SHARE (“EPS”) | |||||||||||||||||||||||
The Company reports a dual presentation of basic and diluted EPS. Basic EPS is computed by dividing net income attributable to shareholders of Tech Data by the weighted average number of shares outstanding during the reported period. Diluted EPS reflects the potential dilution related to equity-based incentives (further discussed in Note 7—Stock-Based Compensation) using the treasury stock method. The composition of basic and diluted EPS is as follows: | |||||||||||||||||||||||
Three months ended April 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(As restated) | |||||||||||||||||||||||
Net income | Weighted | Per | Net income | Weighted | Per | ||||||||||||||||||
average | share | average | share | ||||||||||||||||||||
shares | amount | shares | amount | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Net income per share attributable to shareholders of Tech Data Corporation - basic | $ | 17,760 | 37,907 | $ | 0.47 | $ | 54,178 | 41,154 | $ | 1.32 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Equity-based awards | 264 | 445 | |||||||||||||||||||||
Net income per share attributable to shareholders of Tech Data Corporation - diluted | $ | 17,760 | 38,171 | $ | 0.47 | $ | 54,178 | 41,599 | $ | 1.3 | |||||||||||||
At April 30, 2013, there were 9,456 shares excluded from the computation of diluted earnings per share because their effect would have been antidilutive. At April 30, 2012, there were no equity-based compensation awards excluded from the computation of diluted earnings per share as there were no equity-based awards outstanding where the exercise price was greater than the average market price, thereby resulting in an antidilutive effect. |
Acquisitions
Acquisitions | 3 Months Ended | |||||
Apr. 30, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Acquisitions | ' | |||||
ACQUISITIONS | ||||||
Acquisition of SDG | ||||||
On November 1, 2012, the Company acquired several distribution companies of Specialist Distribution Group, the distribution arm of Specialist Computer Holdings PLC (“SCH”), a privately-held IT services company headquartered in the United Kingdom, for a purchase price, which was finalized during the first quarter of fiscal 2014, of approximately $358 million. The acquired distribution companies were Specialist Distribution Group (SDG) Limited; ETC Metrologie SARL; Best’Ware France SA; ETC Africa SAS and SDG BV (collectively “SDG”). SDG is a leading distributor of value and broadline IT products in the UK, France and the Netherlands. Management believes the acquisition of SDG supports the Company’s diversification strategy by strengthening its European value and broadline IT offerings in key markets and expanding the Company’s vendor and customer portfolios, while leveraging the Company’s existing pan-European infrastructure. Simultaneously with the acquisition of SDG, the Company entered into a preferred supplier agreement whereby SCH, through its IT reseller business, will have annual purchase commitments through Tech Data for a period of five years, which the Company estimated would add incremental annual sales of approximately $500 million. In November 2013, the preferred supplier agreement was amended to extend the term of the agreement from five years to six years, expiring in January 2019. In connection with this amendment, while we expect the total sales during the extended term to be higher than originally forecast, we expect the incremental sales to be approximately $450 million to $475 million annually over six years versus the original forecast of $500 million annually over five years. SDG's results of operations are included in the Company's consolidated financial statements subsequent to the date of acquisition. | ||||||
The Company has accounted for the SDG acquisition as a business combination and allocated the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands, translated using the foreign currency exchange rates on the date of acquisition): | ||||||
Cash | $ | 65,000 | ||||
Accounts receivable | 260,800 | |||||
Inventories | 126,100 | |||||
Tangible assets (includes property and equipment, deferred tax assets and other assets) | 6,200 | |||||
Goodwill | 122,600 | |||||
Identifiable intangible assets | 134,300 | |||||
Accounts payable | (265,200 | ) | ||||
Liabilities (includes accrued expenses, deferred tax liability and other liabilities) | (91,800 | ) | ||||
$ | 358,000 | |||||
The allocation of identifiable intangible assets is comprised of approximately $103.1 million related to customer and vendor relationship assets with an estimated useful life of ten years and approximately $31.2 million related to the preferred supplier agreement to be amortized over the five year life of the agreement. As discussed previously, in November 2013, the preferred supplier agreement was amended to extend the term of the agreement from five years to six years, expiring in January 2019. | ||||||
The following table presents supplemental proforma information as if the SDG acquisition and the execution of the related preferred supplier agreement had both occurred at the beginning of fiscal 2012. The proforma results include business combination accounting effects from the acquisition including amortization of acquired intangible assets and interest expense associated with the issuance of our Senior Notes (as defined herein) due in September 2017 used to fund the acquisition. This proforma information does not reflect any impact from business synergies that may be achieved by the combined business, and is presented for comparative purposes only. It is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated on the date indicated or that may result in the future: | ||||||
Three months ended April 30, 2012 | ||||||
(In thousands, unaudited) | ||||||
Net sales | ||||||
As reported (1) | $ | 5,910,063 | ||||
Proforma | $ | 6,518,147 | ||||
Net income attributable to shareholders of Tech Data Corporation | ||||||
As reported (1) | $ | 54,178 | ||||
Proforma | $ | 58,302 | ||||
(1) As restated |
Debt
Debt | 3 Months Ended | |||||||
Apr. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
DEBT | ||||||||
The carrying value of the Company's outstanding debt consists of the following: | ||||||||
April 30, 2013 | January 31, 2013 | |||||||
(In thousands) | ||||||||
Senior Notes, interest at 3.75% payable semi-annually, due September 21, 2017 | $ | 350,000 | $ | 350,000 | ||||
Less—unamortized debt discount | (1,172 | ) | (1,238 | ) | ||||
Senior Notes, net | 348,828 | 348,762 | ||||||
Capital leases | 5,917 | 6,243 | ||||||
Other committed and uncommitted revolving credit facilities, average interest rate of 5.14% and 2.09% at April 30, 2013 and January 31, 2013, respectively, expiring on various dates through fiscal 2017 | 34,074 | 166,975 | ||||||
388,819 | 521,980 | |||||||
Less—current maturities (included as “Revolving credit loans and current maturities of long-term debt, net”) | (34,609 | ) | (167,522 | ) | ||||
Total Long-term debt | $ | 354,210 | $ | 354,458 | ||||
Senior Notes | ||||||||
In September 2012, the Company issued $350.0 million aggregate principal amount of 3.75% Senior Notes in a public offering, resulting in cash proceeds of approximately $345.8 million, net of debt discount and debt issuance costs of approximately $1.3 million and $2.9 million, respectively (the “Senior Notes”). The debt issuance costs incurred in connection with the public offering will be amortized over the life of the Senior Notes as additional interest expense using the effective interest method. The Company pays interest on the Senior Notes semi-annually in arrears on March 21 and September 21 of each year, beginning on March 21, 2013 and ending on the maturity date of September 21, 2017. The Company, at its option, may redeem the Senior Notes at any time in whole or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the Senior Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Senior Notes being redeemed, discounted at a rate equal to the sum of the applicable Treasury Rate plus 50 basis points, plus accrued and unpaid interest up to the date of redemption. The Senior Notes are senior, unsecured obligations of the Company and rank equally in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness. | ||||||||
Other Credit Facilities | ||||||||
The Company has a $500.0 million revolving credit facility with a syndicate of banks (the “Credit Agreement”), which among other things, i) provides for a maturity date of September 27, 2016, ii) provides for an interest rate on borrowings, facility fees and letter of credit fees based on the Company’s non-credit enhanced senior unsecured debt rating as determined by Standard & Poor’s Rating Service and Moody’s Investor Service, and iii) may be increased to a maximum of $750.0 million, subject to certain conditions. The Credit Agreement includes various covenants, limitations and events of default customary for similar facilities for similarly rated borrowers, including a maximum debt to capitalization ratio and a minimum interest coverage ratio. The Company pays interest on advances under the Credit Agreement at the applicable LIBOR rate plus a predetermined margin that is based on the Company’s debt rating. There were no amounts outstanding under the Credit Agreement at April 30, 2013. There was $42.9 million outstanding under the Credit Agreement at January 31, 2013, at an interest rate of 1.65%. | ||||||||
The Company also has an agreement with a syndicate of banks (the “Receivables Securitization Program”) that allows the Company to transfer an undivided interest in a designated pool of U.S. accounts receivable, on an ongoing basis, to provide security or collateral for borrowings up to a maximum of $400.0 million. Under this program, the Company legally isolates certain U.S. trade receivables into a wholly-owned bankruptcy remote special purpose entity. Such receivables, which are recorded in the Consolidated Balance Sheet, totaled $630.6 million and $690.6 million at April 30 and January 31, 2013, respectively. As collections reduce accounts receivable balances included in the security or collateral pool, the Company may transfer interests in new receivables to bring the amount available to be borrowed up to the maximum. This program was renewed in October 2012 for a period of two years and interest is to be paid on advances under the Receivables Securitization Program at the applicable commercial paper or LIBOR rate plus an agreed-upon margin. There were no amounts outstanding under this program at April 30, 2013. There was $83.5 million outstanding under this program at January 31, 2013, at an interest rate of 1.02%. | ||||||||
In addition to the facilities described above, the Company has various other committed and uncommitted lines of credit and overdraft facilities totaling approximately $566.9 million at April 30, 2013 to support its operations. Most of these facilities are provided on an unsecured, short-term basis and are reviewed periodically for renewal. There was $34.1 million outstanding on these facilities at April 30, 2013, at a weighted average interest rate of 5.14%, and $40.6 million outstanding on these facilities at January 31, 2013, at a weighted average interest rate of 4.76%. | ||||||||
In consideration of the financial covenants discussed below, the Company’s maximum borrowing availability on its credit facilities is approximately $779.0 million, of which $34.1 million was outstanding at April 30, 2013. Certain of the Company’s credit facilities contain limitations on the amounts of annual dividends and repurchases of common stock and require compliance with other obligations, warranties and covenants. The financial ratio covenants contained within these credit facilities include a debt to capitalization ratio and a minimum interest coverage ratio. The Company has entered into waiver agreements with respect to these and other obligations within certain of the Company's credit facilities, including the Credit Agreement and Receivables Securitization Program, in connection with the Company’s restatement as discussed in Note 2 - Restatement of Consolidated Financial Statements. Each of the waiver agreements relates primarily to representations that may have been incorrect when made, the Company’s potential failure to comply with specific covenants, including principally financial reporting covenants, as well as the potential defaults and events of default that may have arisen or could arise as a result of the foregoing. The ability to draw funds under certain credit facilities is dependent upon maintaining sufficient collateral (in the case of the Receivables Securitization Program) and meeting the aforementioned financial covenants, which may limit the Company’s ability to draw the full amount of these facilities. | ||||||||
At April 30, 2013, the Company had also issued standby letters of credit of $81.4 million. These letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions. The issuance of these letters of credit reduces the Company’s borrowing availability under certain of the above-mentioned credit facilities. |
Income_Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
The Company's effective tax rate was 42.9% in the first quarter of fiscal 2014 and 29.2% in the first quarter of fiscal 2013. The increase in the effective rate for the first quarter of fiscal 2014 compared to the same period of the prior year is primarily the result of the relative mix of earnings and losses within the tax jurisdictions in which the Company operates. | |
On an absolute dollar basis, the provision for income taxes decreased 42.4% to $13.3 million for the first quarter of fiscal 2014 compared to $23.1 million in the same period of fiscal 2013 primarily due to a decrease in taxable earnings in certain countries in which the company operates. | |
The effective tax rate differed from the U.S. federal statutory rate of 35% during these periods primarily due to the relative mix of earnings or losses within the tax jurisdictions in which the Company operates such as: i) losses in tax jurisdictions where the Company is not able to record a tax benefit; ii) earnings in tax jurisdictions where the Company has previously recorded a valuation allowance on deferred tax assets; and iii) 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. | |
The Company's future effective tax rates will continue to be affected by changes in the relative mix of taxable income and taxable loss jurisdictions, changes in the valuation of deferred tax assets or liabilities or changes in tax laws or interpretations thereof. The Company monitors the assumptions used in estimating the annual effective tax rate and makes adjustments, if required, throughout the year. If actual results differ from the assumptions used in estimating the Company's annual effective income tax rates, future income tax expense could be materially affected. | |
In addition, the Company's income tax returns are subject to continuous examination by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes from these examinations to determine the adequacy of the Company's provision for income taxes. To the extent the Company prevails in matters for which accruals have been established or is required to pay amounts in excess of such accruals, the effective tax rate could be materially affected. |
Stock_Based_Compensation
Stock Based Compensation | 3 Months Ended | ||||
Apr. 30, 2013 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||
Stock Based Compensation | ' | ||||
STOCK-BASED COMPENSATION | |||||
For the three months ended April 30, 2013 and 2012, the Company recorded $3.1 million and $2.9 million, respectively, of stock-based compensation expense, which is included in “selling, general and administrative expenses” in the Consolidated Statement of Income. | |||||
At April 30, 2013, the Company had awards outstanding from three equity-based compensation plans, only one of which is currently active. The active plan was approved by the Company’s shareholders in June 2009 and includes 4.0 million shares available for grant of which approximately 3.0 million shares remain available for future grant at April 30, 2013. Under the active plan, the Company is authorized to award officers, employees, and non-employee members of the Board of Directors restricted stock, options to purchase common stock, maximum value stock-settled stock appreciation rights (“MV Stock-settled SARs”), maximum value options (“MVOs”), and performance awards that are dependent upon achievement of specified performance goals. Equity-based compensation awards have a maximum term of 10 years, unless a shorter period is specified by the Compensation Committee of the Board of Directors ("Compensation Committee") or is required under local law. Awards under the plans are priced as determined by the Compensation Committee, and under the terms of the Company’s active equity-based compensation plan, are required to be priced at, or above, the fair market value of the Company’s common stock on the date of grant. Awards generally vest between one and four years from the date of grant. | |||||
A summary of the Company’s restricted stock activity for the three months ended April 30, 2013 is as follows: | |||||
Shares | |||||
Outstanding at January 31, 2013 | 606,767 | ||||
Vested | (212,098 | ) | |||
Canceled | (6,015 | ) | |||
Outstanding at April 30, 2013 | 388,654 | ||||
A summary of the activity of the Company’s MV Stock-settled SARs, MVOs and stock options for the three months ended April 30, 2013 is as follows: | |||||
Shares | |||||
Outstanding at January 31, 2013 | 502,225 | ||||
Exercised | (169,246 | ) | |||
Canceled | (1,033 | ) | |||
Outstanding at April 30, 2013 | 331,946 | ||||
The Company’s policy is to utilize shares of its treasury stock, to the extent available, to satisfy its obligation to issue shares upon the exercise of awards. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||
Apr. 30, 2013 | |||||||
Equity [Abstract] | ' | ||||||
Shareholders' Equity | ' | ||||||
SHAREHOLDERS’ EQUITY | |||||||
The Company’s common share issuance activity for the three months ended April 30, 2013 is summarized as follows: | |||||||
Shares | Weighted- | ||||||
average | |||||||
price per | |||||||
share | |||||||
Treasury stock balance at January 31, 2013 | 21,436,566 | $ | 42.26 | ||||
Shares of treasury stock reissued | (210,896 | ) | |||||
Treasury stock balance at April 30, 2013 | 21,225,670 | $ | 42.26 | ||||
There were no common shares repurchased by the Company during the first quarter of fiscal 2014. The reissuance of shares from treasury stock is based on the weighted average purchase price of the shares. |
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 3 Months Ended | |||||||||||||||
Apr. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Of Financial Instruments | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
The Company’s assets and liabilities carried or disclosed at fair value are classified in one of the following three categories: Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in level 1 above that are observable for the asset or liability, either directly or indirectly; and, Level 3 – unobservable inputs for the asset or liability. The classification of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. | ||||||||||||||||
The following table summarizes the valuation of the Company's assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||||
30-Apr-13 | 31-Jan-13 | |||||||||||||||
Fair value measurement category | Fair value measurement category | |||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Foreign currency forward contracts | $ | 5,160 | $ | 19,835 | ||||||||||||
Liabilities | ||||||||||||||||
Foreign currency forward contracts | $ | 8,355 | $ | 19,628 | ||||||||||||
Acquisition-related contingent consideration | $ | 9,497 | $ | 18,147 | ||||||||||||
The Company's foreign currency forward contracts are measured on a recurring basis based on foreign currency spot rates and forward rates quoted by banks or foreign currency dealers (level 2 criteria) and are marked-to-market each period with gains and losses on these contracts recorded in the Company's Consolidated Statement of Income on a basis consistent with the classification of the change in the fair value of the underlying transactions giving rise to these foreign currency exchange gains and losses in the period in which their value changes, with the offsetting amount for unsettled positions being included in either other current assets or other current liabilities in the Consolidated Balance Sheet. See further discussion below in Note 10 – Derivative Instruments. | ||||||||||||||||
The acquisition-related contingent consideration represents the future earnout payments related to the Company's acquisitions. The Company estimates the fair value of this Level 3 contingent consideration liability at each reporting date using a discounted cash flow analysis, which requires the evaluation of significant unobservable inputs that include projected revenues, expenses and cash flows, and assumed discount rates. During the first quarter of fiscal 2014, adjustments to the fair value of acquisition-related contingent consideration of $0.3 million were recorded as a component of "selling, general and administrative expenses" and $0.1 million were recorded to "other (income) expense, net" in the Company's Consolidated Statement of Income. Approximately $8.7 million of the acquisition-related contingent consideration was paid during the first quarter of fiscal 2014. | ||||||||||||||||
The Company utilizes life insurance policies to fund the Company’s nonqualified deferred compensation plan. The life insurance asset recorded by the Company is the amount that would be realized upon the assumed surrender of the policy. This amount is based on the underlying fair value of the invested assets contained within the life insurance policies. The gains and losses are recorded in the Company’s Consolidated Statement of Income within "other (income) expense, net". The related deferred compensation liability is also marked-to-market each period based upon the various investment return alternatives selected by the plan participants and the gains and losses are recorded in the Company’s Consolidated Statement of Income within "selling, general and administrative expenses". The net realizable value of the Company's life insurance investments and related deferred compensation liability at April 30, 2013 was $36.4 million and $32.5 million, respectively. | ||||||||||||||||
The $350 million of Senior Notes discussed in Note 5 - Debt, are carried at cost, less unamortized debt discount. The estimated fair value of the Senior Notes was approximately $368.6 million at April 30, 2013, based upon quoted market information (level 1 criteria). | ||||||||||||||||
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short maturity of these items. The carrying amount of debt outstanding pursuant to revolving credit facilities and loans payable approximates fair value as the majority of these instruments have variable interest rates which approximate current market rates (level 2 criteria). |
Derivative_Instruments
Derivative Instruments | 3 Months Ended |
Apr. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Instruments | ' |
DERIVATIVE INSTRUMENTS | |
In the ordinary course of business, the Company is exposed to movements in foreign currency exchange rates. The Company’s foreign currency risk management objective is to protect earnings and cash flows from the impact of exchange rate changes primarily through the use of foreign currency forward contracts to hedge both intercompany and third party loans, accounts receivable and accounts payable. These derivatives are not designated as hedging instruments. | |
The Company employs established policies and procedures to manage the exposure to fluctuations in the value of foreign currencies. It is the Company’s policy to utilize financial instruments to reduce risks where internal netting cannot be effectively employed. Additionally, the Company does not enter into derivative instruments for speculative or trading purposes. | |
The Company’s foreign currency exposure relates primarily to international transactions in Europe, Canada and Latin America, where the currency collected from customers can be different from the currency used to purchase the product. The Company’s transactions in its foreign operations are denominated primarily in the following currencies: U.S. dollar, British pound, Canadian dollar, Chilean peso, Czech koruna, Danish krone, euro, Mexican peso, Norwegian krone, Peruvian new sol, Polish zloty, Romanian leu, Swedish krona and Swiss franc. | |
The Company considers inventory as an economic hedge against foreign currency exposure in accounts payable in certain circumstances. This practice offsets such inventory against corresponding accounts payable denominated in currencies other than the functional currency of the subsidiary buying the inventory, when determining the net exposure to be hedged using traditional forward contracts. Under this strategy, the Company would expect to increase or decrease selling prices for products purchased in foreign currencies based on fluctuations in foreign currency exchange rates affecting the underlying accounts payable. To the extent the Company incurs a foreign currency exchange loss (gain) on the underlying accounts payable denominated in the foreign currency, a corresponding increase (decrease) in cost of products sold would be expected as the related inventory is sold. This strategy can result in a certain degree of quarterly earnings volatility as the underlying accounts payable is remeasured using the foreign currency exchange rate prevailing at the end of each period, or settlement date if earlier, whereas the corresponding increase (decrease) in cost of products sold is not realized until the related inventory is sold. | |
The Company classifies foreign currency exchange gains and losses on its derivative instruments used to manage its exposures to foreign currency denominated accounts receivable and accounts payable as a component of “cost of products sold” which is consistent with the classification of the change in fair value upon remeasurement of the underlying hedged accounts receivable or accounts payable. The Company classifies foreign currency exchange gains and losses on its derivative instruments used to manage its exposures to foreign currency denominated financing transactions as a component of “other (income) expense, net” which is consistent with the classification of the change in fair value upon remeasurement of the underlying hedged loans. The total amount recognized in earnings on the Company's foreign currency forward contracts, which is included as a component of either “cost of products sold” or “other (income) expense, net”, was a net foreign currency exchange gain of $16.9 million and a net foreign currency exchange loss of $3.5 million, respectively, for the three months ended April 30, 2013 and 2012. The gains and losses on the Company’s foreign currency forward contracts are largely offset by the change in the fair value of the underlying hedged assets or liabilities. | |
The notional amount of forward exchange contracts is the amount of foreign currency to be bought or sold at maturity. Notional amounts are indicative of the extent of the Company’s involvement in the various types and uses of derivative financial instruments and are not a measure of the Company’s exposure to credit or market risks through its use of derivatives. The estimated fair value of derivative financial instruments represents the amount required to enter into similar offsetting contracts with similar remaining maturities based on quoted market prices. | |
The Company's monthly average notional amounts of derivative financial instruments outstanding during the three months ended April 30, 2013 and 2012 were $2.1 billion and $1.7 billion, respectively, with average maturities of 28 days and 28 days, respectively. As discussed above, under the Company's hedging policies, gains and losses on the derivative financial instruments would be expected to be largely offset by the gains and losses on the underlying assets or liabilities being hedged. | |
The Company’s foreign currency forward contracts are also discussed in Note 9 – Fair Value |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Apr. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments And Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
Synthetic Lease Facility | |
The Company has a synthetic lease facility with a group of financial institutions (the “Synthetic Lease”) under which the Company leases certain logistics centers and office facilities from a third-party lessor, which was set to expire in June 2013. Properties leased under the Synthetic Lease are located in Clearwater and Miami, Florida; Fort Worth, Texas; Fontana, California; Suwanee, Georgia; Swedesboro, New Jersey; and South Bend, Indiana. The Synthetic Lease has been accounted for as an operating lease and rental payments are calculated at the applicable LIBOR rate plus a margin based on the Company's credit ratings. | |
During June 2013, we replaced the existing Synthetic Lease with a new lease agreement that expires in June 2018 (the "2013 Synthetic Lease"). The principal terms of the 2013 Synthetic Lease are substantially the same as the Synthetic Lease. Upon not less than 30 days' notice, the Company, at its option, may purchase one or any combination of the properties, at an amount equal to each of the property's cost, as long as the lease balance does not decrease below a defined amount. Upon not less than 270 days, nor more than 360 days, prior to the lease expiration, the Company may, at its option, i) purchase a minimum of two of the properties, at an amount equal to each of the property's cost, ii) exercise the option to renew the lease for a minimum of two of the properties or iii) exercise the option to remarket a minimum of two of the properties and cause a sale of the properties. If the Company elects to remarket the properties, the Company has guaranteed the lessor a percentage of the cost of each property, in the aggregate amount of approximately $133.8 million. Future annual lease payments under the 2013 Synthetic Lease are approximately $2.8 million per year. | |
The Synthetic Lease and the 2013 Synthetic Lease each contain covenants that must be complied with, similar to the covenants described in certain of the credit facilities discussed in Note 5 - Debt. The Company has entered into waiver agreements with respect to the Synthetic Lease and the 2013 Synthetic Lease in connection with the Company’s restatement discussed in Note 2 - Restatement of Consolidated Financial Statements. Each of the waiver agreements relates primarily to representations that may have been incorrect when made, the Company’s potential failure to comply with specific covenants, including principally financial reporting covenants, as well as the potential defaults and events of default that may have arisen or could arise as a result of the foregoing. | |
Guarantees | |
As is customary in the technology industry, to encourage certain customers to purchase products from Tech Data, the Company has arrangements with certain finance companies that provide inventory financing facilities to the Company’s customers. In conjunction with certain of these arrangements, the Company would be required to purchase certain inventory in the event the inventory is repossessed from the customers by the finance companies. As the Company does not have access to information regarding the amount of inventory purchased from the Company still on hand with the customer at any point in time, the Company’s repurchase obligations relating to inventory cannot be reasonably estimated. Repurchases of inventory by the Company under these arrangements have been insignificant to date. The Company believes that, based on historical experience, the likelihood of a material loss pursuant to these inventory repurchase obligations is remote. | |
The Company provides additional financial guarantees to finance companies on behalf of certain customers. The majority of these guarantees are for an indefinite period of time, where the Company would be required to perform if the customer is in default with the finance company related to purchases made from the Company. The Company reviews the underlying credit for these guarantees on at least an annual basis. As of April 30, 2013 and January 31, 2013, the outstanding amount of guarantees under these arrangements totaled $29.5 million and $31.3 million, respectively. The Company believes that, based on historical experience, the likelihood of a material loss pursuant to the above guarantees is remote. | |
Contingencies | |
Prior to fiscal 2004, one of the Company’s European subsidiaries, located in Spain, was audited in relation to various value-added tax (“VAT”) matters. As a result of those audits, the Spanish subsidiary received notices of assessment from the Regional Inspection Unit of Spain's taxing authority that allege the subsidiary did not properly collect and remit VAT. The Spanish subsidiary appealed these assessments to the Madrid Central Economic Administrative Courts beginning in March 2010. Following the administrative court proceedings the matter was appealed to the Spanish National Appellate Court. During the fourth quarter of fiscal year 2014, the Spanish National Appellate Court issued an opinion upholding the assessment for several of the assessed years. Although the Company believes that the Spanish subsidiary's defense to the assessments has solid legal grounds and is continuing to vigorously defend its position by appealing to the Spanish Supreme Court, the risk that the assessments will be upheld has significantly increased. The Company increased its accrual by $41.0 million in the fourth quarter of fiscal 2013, including $29.5 million to cover the assessment and various penalties and $11.5 million for interest that could be assessed. The Company estimates the total exposure for these assessments, including various penalties and interest, is approximately $54.2 million, including previously accrued amounts, which is reflected in "accrued expenses and other liabilities" in the Consolidated Balance Sheet at April 30, 2013. | |
In December 2010, in a non-unanimous decision, a Brazilian appellate court overturned a 2003 trial court which had previously ruled in favor of the Company’s Brazilian subsidiary related to the imposition of certain taxes on payments abroad related to the licensing of commercial software products, commonly referred to as “CIDE tax.” The Company estimates the total exposure where the CIDE tax, including interest, may be considered due to be approximately $29.7 million at April 30, 2013. The Brazilian subsidiary has appealed the unfavorable ruling to the Supreme Court and Superior Court, Brazil's two highest appellate courts. Based on the legal opinion of outside counsel, the Company believes that the chances of success on appeal of this matter are favorable and the Brazilian subsidiary intends to vigorously defend its position that the CIDE tax is not due. However, due to the lack of predictability of the Brazilian court system, the Company has concluded that it is reasonably possible that the Brazilian subsidiary may incur a loss up to the total exposure described above. The Company believes the resolution of this litigation will not be material to the Company’s consolidated net assets or liquidity; however, it could be material to the Company’s operating results for any particular period, depending upon the level of income for such period. In addition to the discussion regarding the CIDE tax above, the Company’s Brazilian subsidiary has been undergoing several examinations of non-income related taxes. Given the complexity and lack of predictability of the Brazilian tax system, the Company believes that it is reasonably possible that a loss may have been incurred. However, due to the early stages of the examination, the complex nature of the Brazilian tax system and the absence of communication from the local tax authorities regarding these examinations, the Company is currently unable to determine the likelihood of these examinations resulting in assessments nor estimate the amount of loss, if any, that may be reasonably possible if such assessment were to be made. | |
The Company is subject to various other legal proceedings and claims arising in the ordinary course of business. The Company’s management does not expect that the outcome in any of these other legal proceedings, individually or collectively, will have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Apr. 30, 2013 | |||||||||
Segment Reporting Information, Additional Information [Abstract] | ' | ||||||||
Segment Information | ' | ||||||||
SEGMENT INFORMATION | |||||||||
Tech Data operates predominantly in a single industry segment as a distributor of technology products, logistics management, and other value-added services. While the Company operates primarily in one industry, it is managed based on geographic segments: the Americas (including North America and South America) and Europe. The Company assesses performance of and makes decisions on how to allocate resources to its operating segments based on multiple factors including current and projected operating income and market opportunities. The Company does not consider stock-based compensation expense in assessing the performance of its operating segments, and therefore the Company is reporting stock-based compensation expense as a separate amount. The accounting policies of the segments are the same as those described in Note 1—Business and Summary of Significant Accounting Policies. | |||||||||
Financial information by geographic segment is as follows: | |||||||||
Three months ended April 30, | |||||||||
2013 | 2012 | ||||||||
(As restated) | |||||||||
(In thousands) | |||||||||
Net sales to unaffiliated customers | |||||||||
Americas (1) | $ | 2,292,782 | $ | 2,457,488 | |||||
Europe | 3,854,975 | 3,452,575 | |||||||
Total | $ | 6,147,757 | $ | 5,910,063 | |||||
Operating income | |||||||||
Americas | $ | 27,231 | $ | 49,778 | |||||
Europe | 11,891 | 35,621 | |||||||
Stock-based compensation expense | (3,091 | ) | (2,941 | ) | |||||
Total | $ | 36,031 | $ | 82,458 | |||||
Depreciation and amortization | |||||||||
Americas | $ | 4,246 | $ | 3,782 | |||||
Europe | 13,721 | 9,615 | |||||||
Total | $ | 17,967 | $ | 13,397 | |||||
Capital expenditures | |||||||||
Americas | $ | 1,697 | $ | 9,761 | |||||
Europe | 6,037 | 4,497 | |||||||
Total | $ | 7,734 | $ | 14,258 | |||||
As of | |||||||||
30-Apr-13 | 31-Jan-13 | ||||||||
(In thousands) | |||||||||
Identifiable assets | |||||||||
Americas | $ | 1,787,264 | $ | 2,004,295 | |||||
Europe | 4,322,837 | 4,826,665 | |||||||
Total | $ | 6,110,101 | $ | 6,830,960 | |||||
Long-lived assets: | |||||||||
Americas (1) | $ | 29,026 | $ | 30,492 | |||||
Europe | 52,055 | 53,903 | |||||||
Total | $ | 81,081 | $ | 84,395 | |||||
Goodwill & acquisition-related intangible assets, net: | |||||||||
Americas | $ | 2,966 | $ | 2,966 | |||||
Europe | 392,671 | 409,534 | |||||||
Total | $ | 395,637 | $ | 412,500 | |||||
(1) Net sales to unaffiliated customers in the United States represented 83% and 82%, respectively, of the total Americas' net sales to unaffiliated customers for the fiscal quarters ended April 30, 2013 and April 30, 2012. Total long-lived assets in the United States represented 90% of the Americas' total long-lived assets at both April 30, 2013 and January 31, 2013. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
Apr. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
SUBSEQUENT EVENT | |
Legal Settlement | |
The Company has been a claimant in proceedings seeking damages from certain manufacturers of LCD flat panel displays. During the third quarter of fiscal 2014, the Company reached settlement agreements with certain manufacturers in the amount of $22.9 million, net of all attorney fees and expenses. During the fourth quarter of fiscal 2014, the Company reached a settlement agreement with an additional manufacturer in the amount of approximately $12.6 million, net of estimated attorney fees and expenses. As each of these settlement agreements represents a subsequent event in relation to a gain contingency, the amounts will be recorded as a reduction of operating expenses in the third and fourth quarters of fiscal 2014. |
Business_And_Summary_Of_Signif1
Business And Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Apr. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Principles Of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Tech Data and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Noncontrolling interest is recognized for the portion of a consolidated joint venture not owned by the Company. The noncontrolling interest of the consolidated joint venture was purchased by the Company during the third quarter of fiscal 2013. The Company operates on a fiscal year that ends on January 31. | |
Basis Of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements have been prepared by the Company, without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The Company prepares its financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of the Company as of April 30, 2013 and its consolidated statements of income, comprehensive income and cash flows for the three months ended April 30, 2013 and 2012. | |
Accounts Receivable Purchase Facility Program | ' |
Accounts Receivable Purchase Agreements | |
The Company has uncommitted accounts receivable purchase agreements under which certain accounts receivable may be sold, without recourse, to third-party financial institutions. Under these programs, the Company may sell certain accounts receivable in exchange for cash less a discount, as defined in the agreements. Available capacity under these programs, which the Company uses as a source of working capital funding, is dependent on the level of accounts receivable eligible to be sold into these programs and the financial institutions' willingness to purchase such receivables. In addition, certain of these agreements also require that the Company continue to service, administer and collect the sold accounts receivable. At April 30, 2013 and January 31, 2013, the Company had a total of $213.0 million and $284.7 million, respectively, of accounts receivable sold to and held by financial institutions under these agreements. During the first quarters of fiscal 2014 and 2013, discount fees recorded under these facilities were $0.6 million and $0.5 million, respectively, which are included as a component of "other (income) expense, net" in the Company's Consolidated Statement of Income. | |
Seasonality | ' |
Seasonality | |
The Company’s quarterly operating results have fluctuated significantly in the past and will likely continue to do so in the future as a result of currency fluctuations and seasonal variations in the demand for the products and services offered. Narrow operating margins may magnify the impact of these factors on the Company's operating results. Recent historical seasonal variations have included an increase in European demand during the Company’s fiscal fourth quarter and decreased demand in other fiscal quarters, particularly quarters that include summer months. Given that more than one half of the Company’s revenues are derived from Europe, the worldwide results closely follow the seasonality trends in Europe. Additionally, the life cycles of major products, as well as the impact of future acquisitions and dispositions, may also materially impact the Company’s business, financial condition, or consolidated results of operations. Therefore, the results of operations for the three months ended April 30, 2013 and 2012 are not necessarily indicative of the results that can be expected for the entire fiscal year ended January 31, 2014. | |
Recently Adopted Accounting Standards | ' |
Recently Adopted Accounting Standards | |
In July 2012, the FASB issued a new accounting standard which allows an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test for indefinite-lived intangible assets. The accounting standard states that an entity would not be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that the indefinite-lived intangible asset is impaired. This standard was effective for the Company beginning February 1, 2013. As the Company currently has no material indefinite-lived intangible assets, other than goodwill, this standard had no impact on the Company's consolidated financial position, income, comprehensive income and cash flows. | |
In February 2013, the FASB issued an accounting standard which requires an entity to provide additional information regarding the amounts reclassified out of accumulated other comprehensive income by component, the income statement line item to which the reclassification was made and if applicable, cross-referenced to related footnote disclosures. The accounting standard was effective for the Company beginning with the quarter ending April 30, 2013. As the requirements of this standard are disclosure only, there was no impact on the Company's consolidated financial position, income, comprehensive income or cash flows. | |
Recently Issued Accounting Standards | |
In March 2013, the FASB issued an accounting standard which clarifies the accounting for the derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The guidance also requires the accounting for a business combination achieved in stages involving a foreign entity to be treated as a single event. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2014 and is to be applied prospectively to derecognition events occurring after the effective date. Early adoption is also permitted. If an entity elects to early adopt the accounting standard, it is to be adopted as of the beginning of the entity's fiscal year of adoption. The Company will apply the provisions of this accounting standard to all transactions described above prospectively from the date of adoption. | |
In March 2013, the FASB also issued an accounting standard which requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date as the sum of: i) the amount the reporting entity agreed to pay on the basis of its arrangements among its co-obligors and ii) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2014 and is to be applied retrospectively for all periods presented. Early adoption is also permitted. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial position, income, comprehensive income or cash flows. | |
In July 2013, the FASB issued an accounting standard which requires presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2014 and is to be applied prospectively. The Company currently follows the guidance and this update will have no impact on its financial statement disclosures. |
Restatement_of_Consolidated_Fi1
Restatement of Consolidated Financial Statements (Tables) | 3 Months Ended | |||||||||||
Apr. 30, 2013 | ||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | |||||||||||
Restatement to Prior Year Consolidated Financial Statements | ' | |||||||||||
Consolidated Statement of Income | ||||||||||||
Three months ended April 30, 2012 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Net sales | $ | 5,895,561 | $ | 14,502 | (1) | $ | 5,910,063 | |||||
Cost of products sold | 5,575,344 | 11,311 | (1) | 5,586,655 | ||||||||
Gross profit | 320,217 | 3,191 | (2) | 323,408 | ||||||||
Selling, general and administrative expenses | 239,324 | 1,626 | (3) | 240,950 | ||||||||
Operating income | 80,893 | 1,565 | 82,458 | |||||||||
Interest expense | 3,069 | 0 | 3,069 | |||||||||
Other expense (income), net | 1,344 | (1,109 | ) | (4) | 235 | |||||||
Income before income taxes | 76,480 | 2,674 | 79,154 | |||||||||
Provision for income taxes | 22,954 | 188 | (5) | 23,142 | ||||||||
Consolidated net income | 53,526 | 2,486 | 56,012 | |||||||||
Net income attributable to noncontrolling interest | (1,834 | ) | 0 | (1,834 | ) | |||||||
Net income attributable to shareholders of Tech Data Corporation | $ | 51,692 | $ | 2,486 | $ | 54,178 | ||||||
Net income per share attributable to shareholders of Tech Data Corporation: | ||||||||||||
Basic | $ | 1.26 | $ | 0.06 | $ | 1.32 | ||||||
Diluted | $ | 1.24 | $ | 0.06 | $ | 1.3 | ||||||
(1) Net sales and cost of products sold adjustments primarily reflect the impact of sales cutoff errors that were not appropriately recorded based on the delivery terms. | ||||||||||||
(2) Gross profit adjustments primarily reflect the impact of both vendor accounting errors in the Company's primary operating subsidiary in the UK and two other European subsidiaries of $3.7 million, and the reversal of an improper deferral of net foreign currency exchange losses in a European subsidiary of $0.4 million, partially offset by various other immaterial errors. | ||||||||||||
(3) Selling, general and administrative expenses include an adjustment to reclassify investment income of $1.1 million related to the Company’s deferred compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan to other expense (income), net and various other adjustments to correct immaterial errors. | ||||||||||||
(4) Other expense (income), net has been adjusted to reclassify investment income of $1.1 million related to the Company’s deferred compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan. | ||||||||||||
(5) The provision for income taxes has been adjusted primarily to increase tax expense as a result of the increase in profit resulting from the restatement adjustments described herein. | ||||||||||||
Consolidated Statement of Comprehensive Income | ||||||||||||
Three months ended April 30, 2012 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
(In thousands) | ||||||||||||
Consolidated net income | $ | 53,526 | $ | 2,486 | $ | 56,012 | ||||||
Other comprehensive income: | ||||||||||||
Foreign currency translation adjustment | 27,996 | (825 | ) | 27,171 | ||||||||
Total comprehensive income | 81,522 | 1,661 | 83,183 | |||||||||
Comprehensive income attributable to noncontrolling interest | (2,184 | ) | 0 | (2,184 | ) | |||||||
Comprehensive income attributable to shareholders of Tech Data Corporation | $ | 79,338 | $ | 1,661 | $ | 80,999 | ||||||
Consolidated Statement of Cash Flows | ||||||||||||
Three Months Ended April 30, 2012 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Cash received from customers | $ | 6,148,879 | $ | 274,770 | $ | 6,423,649 | ||||||
Cash paid to vendors and employees | (6,104,721 | ) | (290,191 | ) | (6,394,912 | ) | ||||||
Interest paid | (2,970 | ) | 0 | (2,970 | ) | |||||||
Income taxes paid | (33,118 | ) | 0 | (33,118 | ) | |||||||
Net cash used provided by (used in) operating activities | 8,070 | (15,421 | ) | (7,351 | ) | |||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of businesses, net of cash acquired | (8,782 | ) | 0 | (8,782 | ) | |||||||
Expenditures for property and equipment | (4,295 | ) | (847 | ) | (5,142 | ) | ||||||
Software development costs | (7,842 | ) | (1,274 | ) | (9,116 | ) | ||||||
Net cash used in investing activities | (20,919 | ) | (2,121 | ) | (23,040 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from the reissuance of treasury stock | 2,714 | 0 | 2,714 | |||||||||
Cash paid for purchase of treasury stock | (37,553 | ) | 0 | (37,553 | ) | |||||||
Return of capital to joint venture partner | (4,646 | ) | 0 | (4,646 | ) | |||||||
Net repayments on revolving credit loans | (17,369 | ) | 0 | (17,369 | ) | |||||||
Principal payments on long-term debt | (127 | ) | 0 | (127 | ) | |||||||
Excess tax benefit from stock-based compensation | 4,497 | 0 | 4,497 | |||||||||
Net cash used in financing activities | (52,484 | ) | 0 | (52,484 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 7,193 | (1,051 | ) | 6,142 | ||||||||
Net decrease in cash and cash equivalents | (58,140 | ) | (18,593 | ) | (76,733 | ) | ||||||
Cash and cash equivalents at beginning of year | 505,178 | (18,916 | ) | 486,262 | ||||||||
Cash and cash equivalents at end of year | $ | 447,038 | $ | (37,509 | ) | $ | 409,529 | |||||
Reconciliation of net income to net cash provided by (used in) operating activities: | ||||||||||||
Net income attributable to shareholders of Tech Data Corporation | $ | 51,692 | $ | 2,486 | $ | 54,178 | ||||||
Net income attributable to noncontrolling interest | 1,834 | 0 | 1,834 | |||||||||
Consolidated net income | 53,526 | 2,486 | 56,012 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 13,397 | 0 | 13,397 | |||||||||
Provision for losses on accounts receivable | 356 | 50 | 406 | |||||||||
Stock-based compensation expense | 2,780 | 161 | 2,941 | |||||||||
Excess tax benefit from stock-based compensation | (4,497 | ) | 0 | (4,497 | ) | |||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | 251,247 | (32,498 | ) | 218,749 | ||||||||
Inventories | (129,323 | ) | 11,463 | (117,860 | ) | |||||||
Prepaid expenses and other assets | 34,257 | (2,430 | ) | 31,827 | ||||||||
Accounts payable | (125,626 | ) | (2,727 | ) | (128,353 | ) | ||||||
Accrued expenses and other liabilities | (88,047 | ) | 8,074 | (79,973 | ) | |||||||
Total adjustments | (45,456 | ) | (17,907 | ) | (63,363 | ) | ||||||
Net cash used provided by (used in) operating activities | $ | 8,070 | $ | (15,421 | ) | $ | (7,351 | ) | ||||
Earnings_Per_Share_EPS_Tables
Earnings Per Share ("EPS") (Tables) | 3 Months Ended | ||||||||||||||||||||||
Apr. 30, 2013 | |||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||
Earnings Per Share Basic And Diluted | ' | ||||||||||||||||||||||
The composition of basic and diluted EPS is as follows: | |||||||||||||||||||||||
Three months ended April 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(As restated) | |||||||||||||||||||||||
Net income | Weighted | Per | Net income | Weighted | Per | ||||||||||||||||||
average | share | average | share | ||||||||||||||||||||
shares | amount | shares | amount | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Net income per share attributable to shareholders of Tech Data Corporation - basic | $ | 17,760 | 37,907 | $ | 0.47 | $ | 54,178 | 41,154 | $ | 1.32 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Equity-based awards | 264 | 445 | |||||||||||||||||||||
Net income per share attributable to shareholders of Tech Data Corporation - diluted | $ | 17,760 | 38,171 | $ | 0.47 | $ | 54,178 | 41,599 | $ | 1.3 | |||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | |||||
Apr. 30, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Schedule of Purchase Price Allocation | ' | |||||
The Company has accounted for the SDG acquisition as a business combination and allocated the purchase price to the estimated fair values of assets acquired and liabilities assumed (in thousands, translated using the foreign currency exchange rates on the date of acquisition): | ||||||
Cash | $ | 65,000 | ||||
Accounts receivable | 260,800 | |||||
Inventories | 126,100 | |||||
Tangible assets (includes property and equipment, deferred tax assets and other assets) | 6,200 | |||||
Goodwill | 122,600 | |||||
Identifiable intangible assets | 134,300 | |||||
Accounts payable | (265,200 | ) | ||||
Liabilities (includes accrued expenses, deferred tax liability and other liabilities) | (91,800 | ) | ||||
$ | 358,000 | |||||
Business Acquisition, Pro Forma Information | ' | |||||
The following table presents supplemental proforma information as if the SDG acquisition and the execution of the related preferred supplier agreement had both occurred at the beginning of fiscal 2012. The proforma results include business combination accounting effects from the acquisition including amortization of acquired intangible assets and interest expense associated with the issuance of our Senior Notes (as defined herein) due in September 2017 used to fund the acquisition. This proforma information does not reflect any impact from business synergies that may be achieved by the combined business, and is presented for comparative purposes only. It is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated on the date indicated or that may result in the future: | ||||||
Three months ended April 30, 2012 | ||||||
(In thousands, unaudited) | ||||||
Net sales | ||||||
As reported (1) | $ | 5,910,063 | ||||
Proforma | $ | 6,518,147 | ||||
Net income attributable to shareholders of Tech Data Corporation | ||||||
As reported (1) | $ | 54,178 | ||||
Proforma | $ | 58,302 | ||||
(1) As restated |
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Apr. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Components Of Debt | ' | |||||||
The carrying value of the Company's outstanding debt consists of the following: | ||||||||
April 30, 2013 | January 31, 2013 | |||||||
(In thousands) | ||||||||
Senior Notes, interest at 3.75% payable semi-annually, due September 21, 2017 | $ | 350,000 | $ | 350,000 | ||||
Less—unamortized debt discount | (1,172 | ) | (1,238 | ) | ||||
Senior Notes, net | 348,828 | 348,762 | ||||||
Capital leases | 5,917 | 6,243 | ||||||
Other committed and uncommitted revolving credit facilities, average interest rate of 5.14% and 2.09% at April 30, 2013 and January 31, 2013, respectively, expiring on various dates through fiscal 2017 | 34,074 | 166,975 | ||||||
388,819 | 521,980 | |||||||
Less—current maturities (included as “Revolving credit loans and current maturities of long-term debt, net”) | (34,609 | ) | (167,522 | ) | ||||
Total Long-term debt | $ | 354,210 | $ | 354,458 | ||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 3 Months Ended | ||||
Apr. 30, 2013 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||
Schedule Of Restricted Stock Units Activity | ' | ||||
A summary of the Company’s restricted stock activity for the three months ended April 30, 2013 is as follows: | |||||
Shares | |||||
Outstanding at January 31, 2013 | 606,767 | ||||
Vested | (212,098 | ) | |||
Canceled | (6,015 | ) | |||
Outstanding at April 30, 2013 | 388,654 | ||||
Schedule Of Stock Options Activity | ' | ||||
A summary of the activity of the Company’s MV Stock-settled SARs, MVOs and stock options for the three months ended April 30, 2013 is as follows: | |||||
Shares | |||||
Outstanding at January 31, 2013 | 502,225 | ||||
Exercised | (169,246 | ) | |||
Canceled | (1,033 | ) | |||
Outstanding at April 30, 2013 | 331,946 | ||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||
Apr. 30, 2013 | |||||||
Equity [Abstract] | ' | ||||||
Company's Common Share Repurchase And Issuance Activity | ' | ||||||
The Company’s common share issuance activity for the three months ended April 30, 2013 is summarized as follows: | |||||||
Shares | Weighted- | ||||||
average | |||||||
price per | |||||||
share | |||||||
Treasury stock balance at January 31, 2013 | 21,436,566 | $ | 42.26 | ||||
Shares of treasury stock reissued | (210,896 | ) | |||||
Treasury stock balance at April 30, 2013 | 21,225,670 | $ | 42.26 | ||||
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Apr. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||
The following table summarizes the valuation of the Company's assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||||
30-Apr-13 | 31-Jan-13 | |||||||||||||||
Fair value measurement category | Fair value measurement category | |||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Foreign currency forward contracts | $ | 5,160 | $ | 19,835 | ||||||||||||
Liabilities | ||||||||||||||||
Foreign currency forward contracts | $ | 8,355 | $ | 19,628 | ||||||||||||
Acquisition-related contingent consideration | $ | 9,497 | $ | 18,147 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Apr. 30, 2013 | |||||||||
Segment Reporting Information, Additional Information [Abstract] | ' | ||||||||
Financial Information By Geographic Segment | ' | ||||||||
Financial information by geographic segment is as follows: | |||||||||
Three months ended April 30, | |||||||||
2013 | 2012 | ||||||||
(As restated) | |||||||||
(In thousands) | |||||||||
Net sales to unaffiliated customers | |||||||||
Americas (1) | $ | 2,292,782 | $ | 2,457,488 | |||||
Europe | 3,854,975 | 3,452,575 | |||||||
Total | $ | 6,147,757 | $ | 5,910,063 | |||||
Operating income | |||||||||
Americas | $ | 27,231 | $ | 49,778 | |||||
Europe | 11,891 | 35,621 | |||||||
Stock-based compensation expense | (3,091 | ) | (2,941 | ) | |||||
Total | $ | 36,031 | $ | 82,458 | |||||
Depreciation and amortization | |||||||||
Americas | $ | 4,246 | $ | 3,782 | |||||
Europe | 13,721 | 9,615 | |||||||
Total | $ | 17,967 | $ | 13,397 | |||||
Capital expenditures | |||||||||
Americas | $ | 1,697 | $ | 9,761 | |||||
Europe | 6,037 | 4,497 | |||||||
Total | $ | 7,734 | $ | 14,258 | |||||
As of | |||||||||
30-Apr-13 | 31-Jan-13 | ||||||||
(In thousands) | |||||||||
Identifiable assets | |||||||||
Americas | $ | 1,787,264 | $ | 2,004,295 | |||||
Europe | 4,322,837 | 4,826,665 | |||||||
Total | $ | 6,110,101 | $ | 6,830,960 | |||||
Long-lived assets: | |||||||||
Americas (1) | $ | 29,026 | $ | 30,492 | |||||
Europe | 52,055 | 53,903 | |||||||
Total | $ | 81,081 | $ | 84,395 | |||||
Goodwill & acquisition-related intangible assets, net: | |||||||||
Americas | $ | 2,966 | $ | 2,966 | |||||
Europe | 392,671 | 409,534 | |||||||
Total | $ | 395,637 | $ | 412,500 | |||||
(1) Net sales to unaffiliated customers in the United States represented 83% and 82%, respectively, of the total Americas' net sales to unaffiliated customers for the fiscal quarters ended April 30, 2013 and April 30, 2012. Total long-lived assets in the United States represented 90% of the Americas' total long-lived assets at both April 30, 2013 and January 31, 2013. |
Business_And_Summary_Of_Signif2
Business And Summary Of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | Jan. 31, 2013 |
Accounting Policies [Abstract] | ' | ' | ' |
Accounts receivable sold | $213 | ' | $284.70 |
Discount fees on sale of accounts receivable | $0.60 | $0.50 | ' |
Restatement_of_Consolidated_Fi2
Restatement of Consolidated Financial Statements (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Oct. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | ||
As Previously Reported | Adjustments | Vendor Accounting Errors | Investment Income | Europe | Europe | Minimum | Maximum | |||||
Adjustments | Adjustments | Vendor Accounting Errors | Vendor Accounting Errors | Subsequent Event | Subsequent Event | |||||||
Adjustments | Adjustments | |||||||||||
subsidiary | ||||||||||||
Restatement-related expenses | $3,023 | $0 | ' | ' | ' | ' | ' | ' | $54,000 | $56,000 | ||
Consolidated Statement of Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net sales | 6,147,757 | 5,910,063 | [1] | 5,895,561 | 14,502 | [2] | ' | ' | ' | ' | ' | ' |
Cost of products sold | 5,825,343 | 5,586,655 | 5,575,344 | 11,311 | [2] | ' | ' | ' | ' | ' | ' | |
Gross profit | 322,414 | 323,408 | 320,217 | 3,191 | [3] | 3,700 | ' | -400 | ' | ' | ' | |
Selling, general and administrative expenses | 283,360 | 240,950 | 239,324 | 1,626 | [4] | ' | 1,100 | ' | ' | ' | ' | |
Operating income | 36,031 | 82,458 | 80,893 | 1,565 | ' | ' | ' | ' | ' | ' | ||
Interest expense | 7,098 | 3,069 | 3,069 | 0 | ' | ' | ' | ' | ' | ' | ||
Other (income) expense, net | -2,164 | 235 | 1,344 | 1,109 | [5] | ' | 1,100 | ' | ' | ' | ' | |
Income before income taxes | 31,097 | 79,154 | 76,480 | 2,674 | ' | ' | ' | ' | ' | ' | ||
Provision for income taxes | 13,337 | 23,142 | 22,954 | 188 | [6] | ' | ' | ' | ' | ' | ' | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 17,760 | 56,012 | [1] | 53,526 | 2,486 | ' | ' | ' | ' | ' | ' | |
Net income attributable to noncontrolling interest | 0 | -1,834 | [1] | -1,834 | 0 | ' | ' | ' | ' | ' | ' | |
Net income attributable to shareholders of Tech Data Corporation | 17,760 | 54,178 | [1] | 51,692 | 2,486 | ' | ' | ' | ' | ' | ' | |
Net income per share attributable to shareholders of Tech Data Corporation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic (in USD per share) | $0.47 | $1.32 | $1.26 | $0.06 | ' | ' | ' | ' | ' | ' | ||
Diluted (in USD per share) | $0.47 | $1.30 | $1.24 | $0.06 | ' | ' | ' | ' | ' | ' | ||
Number of subsidiaries | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ||
Statement of Other Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Foreign currency translation adjustment | -47,609 | 27,171 | [1] | 27,996 | -825 | ' | ' | ' | ' | ' | ' | |
Total comprehensive (loss) income | -29,849 | 83,183 | [1] | 81,522 | 1,661 | ' | ' | ' | ' | ' | ' | |
Comprehensive income attributable to noncontrolling interest | 0 | -2,184 | [1] | -2,184 | 0 | ' | ' | ' | ' | ' | ' | |
Comprehensive (loss) income attributable to shareholders of Tech Data Corporation | -29,849 | 80,999 | [1] | 79,338 | 1,661 | ' | ' | ' | ' | ' | ' | |
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cash received from customers | 6,854,110 | 6,423,649 | [1] | 6,148,879 | 274,770 | ' | ' | ' | ' | ' | ' | |
Cash paid to vendors and employees | -6,695,526 | -6,394,912 | [1] | -6,104,721 | -290,191 | ' | ' | ' | ' | ' | ' | |
Interest paid, net | -9,538 | -2,970 | [1] | -2,970 | 0 | ' | ' | ' | ' | ' | ' | |
Income taxes paid | -14,825 | -33,118 | [1] | -33,118 | 0 | ' | ' | ' | ' | ' | ' | |
Net cash provided by (used in) operating activities | 134,221 | -7,351 | [1] | 8,070 | -15,421 | ' | ' | ' | ' | ' | ' | |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Acquisition of businesses, net of cash acquired | 8,044 | -8,782 | [1] | -8,782 | 0 | ' | ' | ' | ' | ' | ' | |
Expenditures for property and equipment | -3,692 | -5,142 | [1] | -4,295 | -847 | ' | ' | ' | ' | ' | ' | |
Software and software development costs | -4,042 | -9,116 | [1] | -7,842 | -1,274 | ' | ' | ' | ' | ' | ' | |
Net cash used in investing activities | -1,209 | -23,040 | [1] | -20,919 | -2,121 | ' | ' | ' | ' | ' | ' | |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Proceeds from the reissuance of treasury stock | 1,139 | 2,714 | [1] | 2,714 | 0 | ' | ' | ' | ' | ' | ' | |
Cash paid for purchase of treasury stock | 0 | -37,553 | [1] | -37,553 | 0 | ' | ' | ' | ' | ' | ' | |
Return of capital to joint venture partner | 0 | -4,646 | [1] | -4,646 | 0 | ' | ' | ' | ' | ' | ' | |
Net repayments on revolving credit loans | -133,308 | -17,369 | [1] | -17,369 | 0 | ' | ' | ' | ' | ' | ' | |
Principal payments on long-term debt | -130 | -127 | [1] | -127 | 0 | ' | ' | ' | ' | ' | ' | |
Excess tax benefit from stock-based compensation | 684 | 4,497 | [1] | 4,497 | 0 | ' | ' | ' | ' | ' | ' | |
Net cash used in financing activities | -137,798 | -52,484 | [1] | -52,484 | 0 | ' | ' | ' | ' | ' | ' | |
Effect of exchange rate changes on cash and cash equivalents | -9,251 | 6,142 | [1] | 7,193 | -1,051 | ' | ' | ' | ' | ' | ' | |
Net decrease in cash and cash equivalents | -14,037 | -76,733 | [1] | -58,140 | -18,593 | ' | ' | ' | ' | ' | ' | |
Cash and cash equivalents at beginning of year | 340,564 | 486,262 | [1] | 505,178 | -18,916 | ' | ' | ' | ' | ' | ' | |
Cash and cash equivalents at end of period | 326,527 | 409,529 | [1] | 447,038 | -37,509 | ' | ' | ' | ' | ' | ' | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Depreciation and amortization | 17,967 | 13,397 | [1] | 13,397 | 0 | ' | ' | ' | ' | ' | ' | |
Provision for losses on accounts receivable | 1,474 | 406 | [1] | 356 | 50 | ' | ' | ' | ' | ' | ' | |
Stock-based compensation expense | 3,091 | 2,941 | [1] | 2,780 | 161 | ' | ' | ' | ' | ' | ' | |
Excess tax benefits from stock-based compensation | -684 | -4,497 | [1] | -4,497 | 0 | ' | ' | ' | ' | ' | ' | |
Changes in operating assets and liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accounts receivable | 400,527 | 218,749 | [1] | 251,247 | -32,498 | ' | ' | ' | ' | ' | ' | |
Inventories | 32,905 | -117,860 | [1] | -129,323 | 11,463 | ' | ' | ' | ' | ' | ' | |
Prepaid expenses and other assets | 123,941 | 31,827 | [1] | 34,257 | -2,430 | ' | ' | ' | ' | ' | ' | |
Accounts payable | -399,971 | -128,353 | [1] | -125,626 | -2,727 | ' | ' | ' | ' | ' | ' | |
Accrued expenses and other liabilities | -62,855 | -79,973 | [1] | -88,047 | 8,074 | ' | ' | ' | ' | ' | ' | |
Total adjustments | $116,461 | ($63,363) | [1] | ($45,456) | ($17,907) | ' | ' | ' | ' | ' | ' | |
[1] | (1) See Note 2 - Restatement of Consolidated Financial Statements. | |||||||||||
[2] | Net sales and cost of products sold adjustments primarily reflect the impact of sales cutoff errors that were not appropriately recorded based on the delivery terms. | |||||||||||
[3] | (2) Gross profit adjustments primarily reflect the impact of both vendor accounting errors in the Company's primary operating subsidiary in the UK and two other European subsidiaries of $3.7 million, and the reversal of an improper deferral of net foreign currency exchange losses in a European subsidiary of $0.4 million, partially offset by various other immaterial errors. | |||||||||||
[4] | (3) Selling, general and administrative expenses include an adjustment to reclassify investment income of $1.1 million related to the Company’s deferred compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan to other expense (income), net and various other adjustments to correct immaterial errors. | |||||||||||
[5] | Other expense (income), net has been adjusted to reclassify investment income of $1.1 million related to the Company’s deferred compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan. | |||||||||||
[6] | (5) The provision for income taxes has been adjusted primarily to increase tax expense as a result of the increase in profit resulting from the restatement adjustments described herein. |
Earnings_Per_Share_EPS_Narrati
Earnings Per Share ("EPS") (Narrative) (Details) | 3 Months Ended | |
Apr. 30, 2013 | Apr. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' |
Shares excluded from the computation of diluted earnings | 9,456 | 0 |
Earnings_Per_Share_EPS_Earning
Earnings Per Share ("EPS") (Earnings Per Share Basic And Diluted) (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | |
Net income per share attributable to shareholders of Tech Data Corporation - basic | $17,760 | ' | |
Net income per share attributable to shareholders of Tech Data Corporation - diluted | 17,760 | 54,178 | |
Weighted average shares, basic | 37,907 | 41,154 | [1] |
Equity-based awards, Weighted average shares | 264 | 445 | |
Weighted average shares, diluted | 38,171 | 41,599 | [1] |
Net income attributable to Tech Data-basic, Per share amount | $0.47 | $1.32 | |
Net income attributable to shareholders of Tech Data Corporation | $17,760 | $54,178 | [1] |
Net income attributable to Tech Data-diluted, Per share amount | $0.47 | $1.30 | |
[1] | (1) See Note 2 - Restatement of Consolidated Financial Statements. |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (SDG, USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | |||||
Nov. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Apr. 30, 2013 | Nov. 02, 2012 | Apr. 30, 2013 | Nov. 02, 2012 | Apr. 30, 2013 | Nov. 02, 2012 | Nov. 30, 2013 | Nov. 30, 2013 | |
Preferred Supplier Agreement | Preferred Supplier Agreement | Customer and vendor relationships | Customer and vendor relationships | Minimum | Maximum | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration transferred | ' | ' | ' | $358,000,000 | ' | ' | ' | ' | ' | ' | ' |
Annual supply commitment, period of commitment | '6 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual supply commitment, incremental sales | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | 450,000,000 | 475,000,000 |
Identifiable intangible assets | ' | ' | ' | ' | $134,300,000 | ' | $31,200,000 | ' | $103,100,000 | ' | ' |
Acquired finite lived intangible assets, useful life (in years) | ' | ' | ' | ' | ' | '5 years | ' | '10 years | ' | ' | ' |
Acquisitions_Details
Acquisitions (Details) (SDG, USD $) | Nov. 02, 2012 |
In Thousands, unless otherwise specified | |
SDG | ' |
Business Acquisition [Line Items] | ' |
Cash | $65,000 |
Accounts receivable | 260,800 |
Inventories | 126,100 |
Tangible assets (includes property and equipment, deferred tax assets and other assets) | 6,200 |
Goodwill | 122,600 |
Identifiable intangible assets | 134,300 |
Accounts payable | -265,200 |
Liabilities (includes accrued expenses, deferred tax liability and other liabilities) | -91,800 |
Purchase price of acquired entity | $358,000 |
Acquisitions_Net_Sales_Details
Acquisitions (Net Sales) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | |
Net Sales | ' | ' | |
As reported (1) | $6,147,757 | $5,910,063 | [1] |
Proforma | ' | 6,518,147 | |
Net Income attributable to shareholders of Tech Data Corporation | ' | ' | |
As reported (1) | 17,760 | 54,178 | [1] |
Proforma | ' | $58,302 | |
[1] | (1) See Note 2 - Restatement of Consolidated Financial Statements. |
Debt_Components_Of_Debt_Detail
Debt (Components Of Debt) (Details) (USD $) | Apr. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2012 |
Debt Instrument [Line Items] | ' | ' | ' |
Capital leases | $5,917,000 | $6,243,000 | ' |
Debt and Capital Lease Obligations | 388,819,000 | 521,980,000 | ' |
Less-current maturities (included as "Revolving credit loans and current portion of long-term debt, net") | -34,609,000 | -167,522,000 | ' |
Long-term debt | 354,210,000 | 354,458,000 | ' |
Senior Notes | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt, stated interest rate in percentage | 3.75% | 3.75% | 3.75% |
Debt, face value | 350,000,000 | 350,000,000 | 350,000,000 |
Less-unamortized debt discount | -1,172,000 | -1,238,000 | -1,300,000 |
Senior notes, net | 348,828,000 | 348,762,000 | ' |
Other Committed And Uncommitted Revolving Credit Facilities, Expiring On Various Dates Through Fiscal 2017 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument expiration year | '2017 | ' | ' |
Line of credit facility interest rate at end of period | 5.14% | 2.09% | ' |
Revolving credit loan | $34,074,000 | $166,975,000 | ' |
Debt_Senior_Notes_Narrative_De
Debt (Senior Notes) (Narrative) (Details) (Senior Notes, USD $) | 1 Months Ended | ||
Sep. 30, 2012 | Apr. 30, 2013 | Jan. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' |
Debt, face value | $350,000,000 | $350,000,000 | $350,000,000 |
Debt, stated interest rate in percentage | 3.75% | 3.75% | 3.75% |
Proceeds from issuance of long-term debt | 345,800,000 | ' | ' |
Debt discount | 1,300,000 | 1,172,000 | 1,238,000 |
Debt issuance costs | $2,900,000 | ' | ' |
Debt redemption price as a percent of principal amount | 100.00% | ' | ' |
Treasury Rate | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Discount rate, basis spread on Treasury Rate | 50.00% | ' | ' |
Debt_Other_Facilities_Narrativ
Debt (Other Facilities) (Narrative) (Details) (USD $) | 1 Months Ended | ||
Oct. 31, 2012 | Apr. 30, 2013 | Jan. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' |
Line of credit, outstanding amount | ' | $34,100,000 | ' |
U.S. trade receivables | ' | 2,749,087,000 | 3,215,920,000 |
Standby letters of credit issued | ' | 81,400,000 | ' |
Credit Agreement | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | ' | 500,000,000 | ' |
Possible future increase of maximum borrowing capacity | ' | 750,000,000 | ' |
Line of credit, outstanding amount | ' | 0 | 42,900,000 |
Line of credit facility, interest rate at period end | ' | ' | 1.65% |
Receivables Securitization Program | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | ' | 400,000,000 | ' |
Line of credit, outstanding amount | ' | 0 | 83,500,000 |
Line of credit facility, interest rate at period end | ' | ' | 1.02% |
U.S. trade receivables | ' | 630,600,000 | 690,600,000 |
Renewal Period | '2 years | ' | ' |
Other Committed And Uncommitted Revolving Credit Facilities, Expiring On Various Dates Through Fiscal 2017 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity | ' | 566,900,000 | ' |
Line of credit, outstanding amount | ' | 34,100,000 | 40,600,000 |
Weighted average interest rate | ' | 5.14% | 4.76% |
Other committed and uncommitted lines of credit and overdraft facilities | ' | $779,000,000 | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective tax rate | 42.90% | 29.20% |
Decrease in income tax provision | 42.40% | ' |
Provision for income taxes | $13,337 | $23,142 |
Effective tax rate reconciliation, percentage | 35.00% | ' |
Stock_Based_Compensation_Narra
Stock Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Stock-based compensation expense | $3,091 | $2,941 | [1] |
Number of shares authorized for grant | 4,000,000 | ' | |
Number of shares available for grant | 3,000,000 | ' | |
Contractual term (in years) | '10 years | ' | |
Minimum | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Awards vesting period, (in years) | '1 year | ' | |
Maximum | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Awards vesting period, (in years) | '4 years | ' | |
[1] | (1) See Note 2 - Restatement of Consolidated Financial Statements. |
Stock_Based_Compensation_Sched
Stock Based Compensation (Schedule Of Restricted Stock Units Activity) (Details) | 3 Months Ended |
Apr. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Shares, Outstanding at January 31, 2013 | 606,767 |
Shares, Vested | -212,098 |
Shares, Canceled | -6,015 |
Shares, Outstanding at April 30, 2013 | 388,654 |
Stock_Based_Compensation_Sched1
Stock Based Compensation (Schedule Of Stock Options Activity) (Details) | 3 Months Ended |
Apr. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Shares, Outstanding at January 31, 2013 | 502,225 |
Shares, Exercised | -169,246 |
Shares, Canceled | -1,033 |
Shares, Outstanding at April 30, 2013 | 331,946 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) | 3 Months Ended |
Apr. 30, 2013 | |
Equity [Abstract] | ' |
Common shares repurchased | 0 |
Shareholders_Equity_Companys_C
Shareholders' Equity (Company's Common Share Repurchase And Issuance Activity) (Details) (USD $) | 3 Months Ended |
Apr. 30, 2013 | |
Increase (Decrease) in Treasury Stock [Roll Forward] | ' |
Treasury stock, beginning balance, Shares | 21,436,566 |
Treasury stock, beginning balance, Weighted-average price per share | $42.26 |
Shares of treasury stock reissued | -210,896 |
Treasury stock, ending balance, Shares | 21,225,670 |
Treasury stock, ending balance, Weighted-average price per share | $42.26 |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||||
Apr. 30, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2012 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | |
Senior Notes | Senior Notes | Senior Notes | Fair Value, Measurements, Recurring | Level 1 | Level 2 | Level 2 | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Selling, General and Administrative Expenses | Other Expense | ||
Senior Notes | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency forward contracts, Assets | ' | ' | ' | ' | ' | ' | $5,160,000 | $19,835,000 | ' | ' | ' | ' |
Foreign currency forward contracts, Liabilities | ' | ' | ' | ' | ' | ' | 8,355,000 | 19,628,000 | ' | ' | ' | ' |
Acquisition-related contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | 9,497,000 | 18,147,000 | ' | ' |
Adjustments to fair value of acquisition-related contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 100,000 |
Payments for Previous Acquisition | 8,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation plan assets, fair value disclosure | ' | ' | ' | ' | 36,400,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation liability, fair value disclosure | ' | ' | ' | ' | 32,500,000 | ' | ' | ' | ' | ' | ' | ' |
Convertible senior debentures, face value | ' | 350,000,000 | 350,000,000 | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, fair value disclosures | ' | ' | ' | ' | ' | $368,600,000 | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | 3 Months Ended | |
Apr. 30, 2013 | Apr. 30, 2012 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Net foreign currency exchange loss | $16,900,000 | ($3,500,000) |
Notional amount of derivative financial instruments outstanding | $2,100,000,000 | $1,700,000,000 |
Average maturities of derivatives, days | '28 days | '28 days |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Details) (USD $) | Apr. 30, 2013 | Jan. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jan. 31, 2013 | Oct. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Apr. 30, 2013 |
In Millions, unless otherwise specified | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Minimum | Maximum | SPAIN | SPAIN | Litigation Charge | Interest Expense | Accrued Expenses and Other Liabilities | ||
Synthetic Lease Facility | Option One | Option Two | Option Three | Subsequent Event | Subsequent Event | subsidiary | SPAIN | SPAIN | SPAIN | ||||
property | property | property | property | Synthetic Lease Facility | Synthetic Lease Facility | ||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum number of days' notice to opt for purchase during lease, days | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties subject to purchase during lease period | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option expiration, days until lease expiration, days | ' | ' | ' | ' | ' | ' | '270 days | '360 days | ' | ' | ' | ' | ' |
Minimum number of properties, for which an option needs to be elected | ' | ' | ' | 2 | 2 | 2 | ' | ' | ' | ' | ' | ' | ' |
Residual value guarantee, aggregate amount | ' | ' | $133.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum payments | ' | ' | 2.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of guarantees, outstanding | 29.5 | 31.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries subject to audit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' |
Increase in accrual for value added tax matters | ' | ' | ' | ' | ' | ' | ' | ' | 41 | ' | 29.5 | 11.5 | ' |
Value added tax payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54.2 |
CIDE tax | $29.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Information_Financial_
Segment Information (Financial Information By Geographic Segment) (Details) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | Jan. 31, 2013 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | $6,147,757 | $5,910,063 | [1] | ' | ||
Operating Income (Loss) | 36,031 | 82,458 | ' | |||
Stock-based compensation expense | -3,091 | -2,941 | [1] | ' | ||
Depreciation and amortization | 17,967 | 13,397 | [1] | ' | ||
Capital expenditures | 7,734 | 14,258 | ' | |||
Identifiable assets | 6,110,101 | ' | 6,830,960 | |||
Long-lived assets | 81,081 | ' | 84,395 | |||
Goodwill and acquisition-related intangible assets, net | 395,637 | ' | 412,500 | |||
Americas | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 2,292,782 | [2] | 2,457,488 | [2] | ' | |
Operating Income (Loss) | 27,231 | 49,778 | ' | |||
Depreciation and amortization | 4,246 | 3,782 | ' | |||
Capital expenditures | 1,697 | 9,761 | ' | |||
Identifiable assets | 1,787,264 | ' | 2,004,295 | |||
Long-lived assets | 29,026 | [2] | ' | 30,492 | [2] | |
Goodwill and acquisition-related intangible assets, net | 2,966 | ' | 2,966 | |||
Sales to unaffiliated customers, as percentage of total sales | 83.00% | 82.00% | ' | |||
Long-lived assets, as percentage of total assets | 90.00% | ' | 90.00% | |||
Europe | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 3,854,975 | 3,452,575 | ' | |||
Operating Income (Loss) | 11,891 | 35,621 | ' | |||
Depreciation and amortization | 13,721 | 9,615 | ' | |||
Capital expenditures | 6,037 | 4,497 | ' | |||
Identifiable assets | 4,322,837 | ' | 4,826,665 | |||
Long-lived assets | 52,055 | ' | 53,903 | |||
Goodwill and acquisition-related intangible assets, net | $392,671 | ' | $409,534 | |||
[1] | (1) See Note 2 - Restatement of Consolidated Financial Statements. | |||||
[2] | Net sales to unaffiliated customers in the United States represented 83% and 82%, respectively, of the total Americas' net sales to unaffiliated customers for the fiscal quarters ended April 30, 2013 and April 30, 2012. Total long-lived assets in the United States represented 90% of the Americas' total long-lived assets at both April 30, 2013 and January 31, 2013. |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Jan. 31, 2014 |
Subsequent Event | ||
Subsequent Event [Line Items] | ' | ' |
Litigation settlement agreements | $22.90 | $12.60 |