Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Mar. 15, 2017 | Jul. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | tecd | ||
Entity Registrant Name | TECH DATA CORP | ||
Entity Central Index Key | 790,703 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 2,700,010,239 | ||
Entity Common Stock, Shares Outstanding | 38,012,882 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,125,591 | $ 531,169 |
Accounts receivable, less allowances of $38,767 and $45,875 | 3,047,927 | 2,995,114 |
Inventories | 2,118,902 | 2,117,384 |
Prepaid expenses and other assets | 119,906 | 178,394 |
Total current assets | 7,412,326 | 5,822,061 |
Property and equipment, net | 74,239 | 66,028 |
Goodwill | 199,021 | 204,114 |
Intangible assets, net | 130,676 | 159,386 |
Other assets, net | 115,604 | 106,699 |
Total assets | 7,931,866 | 6,358,288 |
Current liabilities: | ||
Accounts payable | 3,844,532 | 3,427,580 |
Accrued expenses and other liabilities | 493,199 | 487,003 |
Revolving credit loans and current maturities of long-term debt, net | 373,123 | 18,063 |
Total current liabilities | 4,710,854 | 3,932,646 |
Long-term debt, less current maturities | 989,924 | 348,608 |
Other long-term liabilities | 61,200 | 71,279 |
Total liabilities | 5,761,978 | 4,352,533 |
Shareholders’ equity: | ||
Common stock, par value $.0015; 200,000,000 shares authorized; 59,245,585 shares issued at January 31, 2017 and 2016 | 89 | 89 |
Additional paid-in capital | 686,042 | 682,227 |
Treasury stock, at cost (24,018,983 and 24,163,402 shares at January 31, 2017 and 2016) | (1,070,994) | (1,077,434) |
Retained earnings | 2,629,293 | 2,434,198 |
Accumulated other comprehensive loss | (74,542) | (33,325) |
Total shareholders' equity | 2,169,888 | 2,005,755 |
Total liabilities and shareholders' equity | $ 7,931,866 | $ 6,358,288 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 38,767 | $ 45,875 |
Common stock, par value | $ 0.0015 | $ 0.0015 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 59,245,585 | 59,245,585 |
Treasury stock, shares | 24,018,983 | 24,163,402 |
Consolidated Statement Of Incom
Consolidated Statement Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Net sales | $ 26,234,876 | $ 26,379,783 | $ 27,670,632 |
Cost of products sold | 24,932,949 | 25,093,122 | 26,276,678 |
Gross profit | 1,301,927 | 1,286,661 | 1,393,954 |
Operating expenses: | |||
Selling, general and administrative expenses | 984,152 | 990,934 | 1,114,234 |
Acquisition and integration expenses | 28,966 | 0 | 0 |
LCD settlements and other, net | (4,142) | (98,433) | (5,059) |
Value added tax assessments | 1,049 | (8,796) | (6,229) |
Restatement and remediation related expenses | 0 | 829 | 22,043 |
Loss on disposal of subsidiaries | 0 | 699 | 1,330 |
Operating expenses, Total | 1,010,025 | 885,233 | 1,126,319 |
Operating income | 291,902 | 401,428 | 267,635 |
Interest expense | 36,810 | 14,488 | 26,548 |
Other (income) expense, net | (1,669) | 4,522 | 1,903 |
Income before income taxes | 256,761 | 382,418 | 239,184 |
Provision for income taxes | 61,666 | 116,682 | 64,012 |
Net income | $ 195,095 | $ 265,736 | $ 175,172 |
Earnings per share | |||
Basic | $ 5.54 | $ 7.40 | $ 4.59 |
Diluted | $ 5.51 | $ 7.36 | $ 4.57 |
Weighted average common shares outstanding: | |||
Basic | 35,194 | 35,898 | 38,172 |
Diluted | 35,428 | 36,097 | 38,354 |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 195,095 | $ 265,736 | $ 175,172 |
Other comprehensive loss: | |||
Foreign currency translation adjustment | (41,217) | (84,087) | (273,809) |
Total comprehensive income (loss) | $ 153,878 | $ 181,649 | $ (98,637) |
Consolidated Statement Of Share
Consolidated Statement Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Treasury stock | Retained earnings | Accumulated other comprehensive (loss) income |
Common Stock, Shares, Issued | 59,245,585 | |||||
Balance at Jan. 31, 2014 | $ 2,098,611 | $ 89 | $ 675,597 | $ (894,936) | $ 1,993,290 | $ 324,571 |
Increase (Decrease) in Stockholders' Equity | ||||||
Purchase of treasury stock, at cost | (52,997) | 0 | 0 | (52,997) | 0 | 0 |
Issuance of treasury stock for benefit plan and equity-based awards exercised | (502) | 0 | (9,292) | 8,790 | 0 | 0 |
Stock-based compensation expense | 13,668 | 0 | 13,668 | 0 | 0 | 0 |
Total other comprehensive loss | (273,809) | 0 | 0 | 0 | 0 | (273,809) |
Net income | 175,172 | 0 | 0 | 0 | 175,172 | 0 |
Balance at Jan. 31, 2015 | $ 1,960,143 | 89 | 679,973 | (939,143) | 2,168,462 | 50,762 |
Common Stock, Shares, Issued | 59,245,585 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Purchase of treasury stock, at cost | $ (147,003) | 0 | 0 | (147,003) | 0 | 0 |
Issuance of treasury stock for benefit plan and equity-based awards exercised | (3,924) | 0 | (12,636) | 8,712 | 0 | 0 |
Stock-based compensation expense | 14,890 | 0 | 14,890 | 0 | 0 | 0 |
Total other comprehensive loss | (84,087) | 0 | 0 | 0 | 0 | (84,087) |
Net income | 265,736 | 0 | 0 | 0 | 265,736 | 0 |
Balance at Jan. 31, 2016 | $ 2,005,755 | 89 | 682,227 | (1,077,434) | 2,434,198 | (33,325) |
Common Stock, Shares, Issued | 59,245,585 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of treasury stock for benefit plan and equity-based awards exercised | $ (3,692) | 0 | (10,132) | 6,440 | 0 | 0 |
Stock-based compensation expense | 13,947 | 0 | 13,947 | 0 | 0 | 0 |
Total other comprehensive loss | (41,217) | 0 | 0 | 0 | 0 | (41,217) |
Net income | 195,095 | 0 | 0 | 0 | 195,095 | 0 |
Balance at Jan. 31, 2017 | $ 2,169,888 | $ 89 | $ 686,042 | $ (1,070,994) | $ 2,629,293 | $ (74,542) |
Common Stock, Shares, Issued | 59,245,585 |
Consolidated Statement Of Shar7
Consolidated Statement Of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of treasury stock for benefit plans and equity-based awards exercised, related tax benefits | $ 182 | $ 2,302 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Cash flows from operating activities: | |||
Cash received from customers | $ 29,427,357 | $ 28,119,687 | $ 29,380,493 |
Cash paid to vendors and employees | (28,664,222) | (27,819,886) | (29,174,581) |
Interest paid, net | (22,020) | (20,264) | (24,546) |
Income taxes paid | (84,272) | (85,645) | (58,275) |
Net cash provided by operating activities | 656,843 | 193,892 | 123,091 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | (2,916) | (27,848) | 0 |
Expenditures for property and equipment | (24,971) | (20,917) | (18,639) |
Proceeds from sale of fixed assets | 0 | 0 | 7,121 |
Software and software development costs | (14,364) | (13,055) | (9,536) |
Proceeds from sale of subsidiaries | 0 | 20,020 | 0 |
Net cash used in investing activities | (42,251) | (41,800) | (21,054) |
Cash flows from financing activities: | |||
Payments for employee withholdings on equity awards | (4,479) | (4,662) | (2,961) |
Proceeds from the reissuance of treasury stock | 733 | 561 | 1,456 |
Cash paid for debt issuance costs | 21,581 | 0 | 0 |
Cash paid for purchase of treasury stock | 0 | (147,003) | (52,997) |
Proceeds from issuance of Senior Notes | 998,405 | 0 | 0 |
Acquisition earn-out payments | 0 | (2,736) | (5,060) |
Net borrowings on revolving credit loans | 3,417 | 5,912 | 7,269 |
Principal payments on long-term debt | 0 | (319) | (546) |
Net cash provided by (used in) financing activities | 976,495 | (148,247) | (52,839) |
Effect of exchange rate changes on cash and cash equivalents | 3,335 | (15,671) | (72,057) |
Net increase (decrease) in cash and cash equivalents | 1,594,422 | (11,826) | (22,859) |
Cash and cash equivalents at beginning of year | 531,169 | 542,995 | 570,101 |
Less: Cash balance of businesses held for sale at end of year | 0 | 0 | 4,247 |
Cash and cash equivalents at end of year | 2,125,591 | 531,169 | 542,995 |
Reconciliation of net income to net cash provided by operating activities: | |||
Net income | 195,095 | 265,736 | 175,172 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss on disposal of subsidiaries | 0 | 699 | 1,330 |
Depreciation and amortization | 54,437 | 57,253 | 68,746 |
Provision for losses on accounts receivable | 5,026 | 6,061 | 10,415 |
Stock-based compensation expense | 13,947 | 14,890 | 13,668 |
Accretion of debt discount and debt issuance costs on Senior Notes | 835 | 839 | 839 |
Deferred income taxes | (11,002) | 2,387 | (335) |
Gain on sale of fixed assets | 0 | 0 | (2,350) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (91,961) | (297,637) | 22,166 |
Inventories | (20,838) | (219,482) | 245,474 |
Prepaid expenses and other assets | 66,027 | (44,384) | 31,254 |
Accounts payable | 459,146 | 426,412 | (469,757) |
Accrued expenses and other liabilities | (13,869) | (18,882) | 26,469 |
Total adjustments | 461,748 | (71,844) | (52,081) |
Net cash provided by operating activities | $ 656,843 | $ 193,892 | $ 123,091 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2017 | |
Business and Summary of Significant Accounting Policies | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies | NOTE 1 — 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: Americas 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. 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, 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 (“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. Revenue Recognition Revenue is recognized once four criteria are met: (1) the Company must have persuasive evidence that an arrangement exists; (2) delivery must occur, which generally happens at the point of shipment (this includes the transfer of both title and risk of loss, provided that no significant obligations remain); (3) the price must be fixed or determinable; and (4) collectability must be reasonably assured. Shipping revenue is included in net sales while the related costs, including shipping and handling costs, are included in the cost of products sold. The Company allows its customers to return product for exchange or credit subject to certain limitations. A provision for such returns is recorded at the time of sale based upon historical experience. The Company also has certain fulfillment, extended warranty and service contracts with certain customers and suppliers whereby the Company assumes an agency relationship in the transaction. In such arrangements where the Company is not the primary obligor, revenues are recognized as the net fee associated with serving as an agent. Taxes imposed by governmental authorities on the Company’s revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. Service revenue associated with configuration, training, fulfillment and other services is recognized when the work is complete and the four criteria discussed above have been met. Service revenues have represented less than 10% of consolidated net sales for fiscal years 2017, 2016 and 2015 . The following table provides a comparison of sales generated from products purchased from vendors that exceeded 10% of the Company's consolidated net sales for fiscal 2017, 2016 and 2015 (as a percent of consolidated net sales): 2017 2016 2015 Apple, Inc. 20% 20% 15% HP Inc. 13% Hewlett-Packard Company (a) 13% 19% Cisco Systems, Inc. 10% (a) Effective November 1, 2015, Hewlett-Packard Company split into two companies, HP Inc. and Hewlett Packard Enterprise. Amounts presented for fiscal years 2016 and 2015 represent the sales generated from products purchased from Hewlett-Packard Company prior to the split. Cash and Cash Equivalents Short-term investments which are highly liquid and have an original maturity of 90 days or less are considered cash equivalents. The Company’s cash equivalents consist primarily of highly liquid investments in money market funds with maturity periods of three months or less. Investments The Company invests in 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." Accounts Receivable The Company maintains an allowance for doubtful accounts receivable and sales returns for estimated losses resulting from the inability of its customers to make required payments and estimated product returns by customers for exchange or credit. In estimating the required allowance, the Company takes into consideration the overall quality and aging of the receivable portfolio, the large number of customers and their dispersion across wide geographic areas, the existence of credit insurance where applicable, specifically identified customer risks, historical write-off and sales returns experience and the current economic environment. If actual customer performance were to deteriorate to an extent not expected by the Company, additional allowances may be required which could have an adverse effect on the Company’s financial results. Conversely, if actual customer performance were to improve to an extent not expected by the Company, a reduction in the allowance may be required which could have a favorable effect on the Company’s consolidated financial results. 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 January 31, 2017 and 2016 , the Company had a total of $506.7 million and $554.2 million , respectively, of accounts receivable sold to and held by financial institutions under these agreements. Discount fees recorded under these facilities, which are included as a component of "other (income) expense, net" in the Company's Consolidated Statement of Income, were $6.1 million , $4.4 million and $4.4 million during the fiscal years ended January 31, 2017, 2016 and 2015 , respectively. Inventories Inventories, consisting entirely of finished goods, are stated at the lower of cost or market, cost being determined on a moving average cost basis, which approximates the first-in, first-out method. Inventory is written down for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value, based upon an aging analysis of the inventory on hand, specifically known inventory-related risks (such as technological obsolescence and the nature of vendor terms surrounding price protection and product returns), foreign currency fluctuations for foreign-sourced product and assumptions about future demand. Market conditions or changes in terms and conditions by the Company’s vendors that are less favorable than those projected by management may require additional inventory write-downs, which could have an adverse effect on the Company’s consolidated financial results. Vendor Incentives The Company receives incentives from vendors related to cooperative advertising allowances, infrastructure funding, volume rebates and other incentive agreements. These incentives are generally under quarterly, semi-annual or annual agreements with the vendors; however, some of these incentives are negotiated on an ad-hoc basis to support specific programs mutually developed with the vendor. Unrestricted volume rebates and early payment discounts received from vendors are recorded when they are earned as a reduction of inventory and as a reduction of cost of products sold as the related inventory is sold. Vendor incentives for specifically identified cooperative advertising programs and infrastructure funding are recorded when earned as adjustments to product costs or selling, general and administrative expenses, depending on the nature of the program. Reserves for receivables on vendor programs are recorded for estimated losses resulting from vendors’ inability to pay or rejections of claims by vendors. Should amounts recorded as outstanding receivables from vendors be deemed uncollectible, additional allowances may be required which could have an adverse effect on the Company’s consolidated financial results. Conversely, if amounts recorded as outstanding receivables from vendors were to improve to an extent not expected by the Company, a reduction in the allowance may be required which could have a favorable effect on the Company’s consolidated financial results. Property and Equipment Property and equipment are stated at cost. Depreciation expense includes depreciation of purchased property and equipment. Depreciation expense is computed over the shorter of the estimated economic lives or lease periods using the straight-line method, generally as follows: Years Buildings and improvements 15 - 39 Leasehold improvements 3 - 10 Furniture, fixtures and equipment 3 - 10 Expenditures for renewals and improvements that significantly add to productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to operations when incurred. When assets are sold or retired, the cost of the asset and the related accumulated depreciation are eliminated and any gain or loss is recognized at such time. Intangible Assets, net Included within "intangible assets, net," at both January 31, 2017 and 2016 are capitalized software and development costs, as well as customer and vendor relationships, a preferred supplier agreement and trademarks acquired in connection with various business acquisitions. Such capitalized costs and intangible assets are being amortized over a period of three to ten years. The Company’s capitalized software has been obtained or developed for internal use only. Development and acquisition costs are capitalized for computer software only when management authorizes and commits to funding a computer software project through the approval of a capital expenditure requisition, and the software project is either for the development of new software, to increase the life of existing software or to add significantly to the functionality of existing software. Once these requirements have been met, capitalization would begin at the point that conceptual formulation, evaluation, design and testing of possible software project alternatives have been completed. Capitalization ceases when the software project is substantially complete and ready for its intended use. The Company’s accounting policy is to amortize capitalized software costs on a straight-line basis over periods ranging from three to ten years, depending upon the nature of the software, the stability of the hardware platform on which the software is installed, its fit in the Company’s overall strategy and the Company's experience with similar software. Prepaid maintenance fees associated with a software application are accounted for separately from the related software and amortized over the life of the maintenance agreement. General, administrative, overhead, training, non-development data conversion processes, and maintenance costs, as well as the costs associated with the preliminary project and post-implementation stages are expensed as incurred. Impairment of Long-Lived Assets Long-lived assets, including property and equipment and intangible assets, are reviewed for potential impairment at such time when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is evaluated when the sum of the expected, undiscounted future net cash flows is less than the carrying amount of the asset. Any impairment loss is measured by comparing the fair value of the asset to its carrying value. Goodwill The Company performs an annual review for the potential impairment of the carrying value of goodwill, or more frequently if current events and circumstances indicate a possible impairment. For purposes of its goodwill analysis, the Company has two reporting units, which are also the Company’s operating segments. The Company evaluates the appropriateness of performing a qualitative assessment, on a reporting unit level, based on current circumstances. If the results of the qualitative assessment indicate that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, the two-step impairment test will not be performed. The factors that were considered in the qualitative analysis included macroeconomic conditions, industry and market considerations, cost factors such as increases in product cost, labor, or other costs that would have a negative effect on earnings and cash flows and other relevant entity-specific events and information. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the two-step impairment test is performed. The first step of the impairment test compares the fair value of the Company's reporting units with their carrying amounts, including goodwill. The fair values of the reporting units are estimated using market and discounted cash flow approaches. The assumptions used in the market approach are based on the value of a business through an analysis of multiples of guideline companies and recent sales or offerings of a comparable entity. The assumptions used in the discounted cash flow approach are based on historical and forecasted revenue, operating costs, future economic conditions and other relevant factors. If the carrying amount exceeds fair value, then the second step of the impairment test is performed to measure the amount of any impairment loss. The amount of an impairment loss is recognized as the excess of the carrying value of goodwill over its implied fair value and is charged to expense in the period identified. During the second quarter of fiscal year 2017, the Company elected to change the timing of its annual goodwill impairment testing from January 31st to November 1st. This accounting change is considered to be preferable because it allows the Company additional time to complete the annual goodwill impairment test. This change does not represent a material change to the method of applying an accounting principle, nor does this change result in adjustments to previously issued financial statements. The Company has concluded that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of each November 1st of prior reporting periods. As a result, the Company prospectively applied the change in the annual goodwill impairment testing date beginning November 1, 2016. This change in testing date did not delay, accelerate or avoid a goodwill impairment charge. Product Warranty The Company’s vendors generally warrant the products distributed by the Company and allow the Company to return defective products, including those that have been returned to the Company by its customers. The Company typically does not independently warrant the products it distributes; however, in several countries where the Company operates, the Company is responsible for defective product as a matter of law. The time period required by law in certain countries exceeds the warranty period provided by the manufacturer. The Company is obligated to provide warranty protection for sales of certain IT products within the European Union (“EU”) for up to two years as required under the EU directive where vendors have not affirmatively agreed to provide pass-through protection. To date, the Company has not incurred any significant costs for defective products under these legal requirements. The Company does warrant services with regard to products integrated for its customers. A provision for estimated warranty costs is recorded at the time of sale and periodically adjusted to reflect actual experience. To date, the Company has not incurred any significant service warranty costs. Value Added Taxes The majority of the Company's international operations are subject to a value added tax ("VAT"), which is typically applied to all goods and services purchased and sold. The Company's VAT liability represents VAT that has been recorded on sales to its customers and not yet remitted to the respective governmental authorities and the Company's VAT receivable represents VAT paid on purchases of goods and services that will be collected from future sales to its customers. At January 31, 2017 and 2016 , the Company's VAT liability was $209.6 million and $197.7 million , respectively, and is included in "accrued expenses and other liabilities" on the Company's Consolidated Balance Sheet. At January 31, 2017 and 2016 , the Company's VAT receivable was $29.1 million and $27.8 million , respectively, and is included in "prepaid expenses and other assets" on the Company's Consolidated Balance Sheet. Income Taxes Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the book basis and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the fiscal period that includes the enactment date. Deferred taxes have not been provided on the cumulative undistributed earnings of foreign subsidiaries or the cumulative translation adjustment related to those investments because such amounts are expected to be reinvested indefinitely. The Company’s future effective tax rates could be adversely affected by earnings being lower than anticipated in countries with lower statutory rates, 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 considers all positive and negative evidence available in determining the potential realization of deferred tax assets, including the scheduled reversal of temporary differences, recent cumulative losses, recent and projected future taxable income and prudent and feasible tax planning strategies. In making this determination, the Company places greater emphasis on recent cumulative losses and recent taxable income due to the inherent lack of subjectivity associated with these factors. In addition, the Company is subject to the periodic examination of its income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. To the extent the Company was to prevail in matters for which accruals have been established or to be required to pay amounts in excess of such accruals, the Company’s effective tax rate in a given financial statement period could be materially affected. Concentration of Credit Risk The Company’s financial instruments which are subject to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and foreign currency exchange contracts. The Company’s cash and cash equivalents are deposited and/or invested with various financial institutions globally that are monitored on a regular basis by the Company for credit quality. The Company sells its products to a large base of value-added resellers, direct marketers, retailers and corporate resellers throughout the Americas and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company has obtained credit insurance, primarily in Europe, which insures a percentage of credit extended by the Company to certain of its customers against possible loss. The Company maintains provisions for estimated credit losses. No single customer accounted for more than 10% of the Company’s net sales during fiscal years 2017, 2016 and 2015 . The Company also enters into foreign currency exchange contracts. In the event of a failure to honor one of these contracts by one of the banks with which the Company has contracted, the Company believes any loss would be limited in most circumstances to the exchange rate differential from the time the contract was executed until the time the contract was settled. The Company’s foreign currency exchange contracts are executed with various financial institutions globally and are monitored on a regular basis by the Company for credit quality. Foreign Currency Translation and Remeasurement The assets and liabilities of the Company's foreign subsidiaries for which the local currency is the functional currency are translated into U.S. dollars using the exchange rate in effect at each balance sheet date and income and expense accounts are translated using weighted average exchange rates for each period during the year. Translation gains and losses are reported as components of "accumulated other comprehensive loss", included within shareholders’ equity in the Company's Consolidated Balance Sheet. Gains and losses from foreign currency transactions are included in the Company's Consolidated Statement of Income. Derivative Financial Instruments The Company faces exposure to changes in foreign currency exchange rates. The Company reduces its exposure by creating offsetting positions through the use of derivative financial instruments, in the form of foreign currency forward contracts, in situations where there are not offsetting balances that create an economic hedge. Substantially all of these instruments have terms of 90 days or less. It is the Company’s policy to utilize financial instruments to reduce risk where appropriate and prohibit entering into derivative financial instruments for speculative or trading purposes. Derivative financial instruments used to reduce exposure to foreign currency risk are not designated as hedging instruments. The derivative instruments are marked-to-market each period with gains and losses on these contracts recorded in the Company’s Consolidated Statement of Income within “cost of products sold” for derivative instruments used to manage the Company’s exposure to foreign denominated accounts receivable and accounts payable and within “other (income) expense, net,” for derivative instruments used to manage the Company’s exposure to foreign denominated financing transactions. Such mark-to-market gains and losses are recorded in the period in which their value changes, with the offsetting entry for unsettled positions being recorded to either "prepaid expenses and other assets" or "accrued expenses and other liabilities" in the Company's Consolidated Balance Sheet. Comprehensive Income Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, and is comprised of “net income” and “other comprehensive income.” The Company’s "accumulated other comprehensive loss" is comprised exclusively of changes in the Company’s currency translation adjustment account. Stock-Based Compensation The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in “selling, general and administrative expenses” in the Company’s Consolidated Statement of Income based on their fair values determined on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized on a straight-line basis over the requisite service period of the award. The Company estimates forfeiture rates based on its historical experience. Treasury Stock Treasury stock is accounted for at cost. Shares repurchased by the Company are held in treasury for general corporate purposes, including issuances under equity incentive and benefit plans. The reissuance of shares from treasury stock is based on the weighted average purchase price of the shares. Contingencies The Company accrues for contingent obligations, including estimated legal costs, when the obligation is probable and the amount is reasonably estimable. As facts concerning contingencies become known, the Company reassesses its position and makes appropriate adjustments to the financial statements. Estimates that are particularly sensitive to future changes include those related to tax, legal and other regulatory matters such as imports and exports, the imposition of international governmental controls, changes in the interpretation and enforcement of international laws (particularly related to items such as duty and taxation), and the impact of local economic conditions and practices, which are all subject to change as events evolve and as additional information becomes available during the administrative and litigation process. Restatement and remediation related expenses Restatement and remediation related expenses primarily include legal, accounting and third party consulting fees associated with (i) the restatement of certain of the Company's consolidated financial statements and other financial information from fiscal 2009 to fiscal 2013, (ii) the Audit Committee investigation to review the Company's accounting practices, (iii) incremental external audit and supplemental procedures by the Company in connection with the preparation of the Company's financial statements, and (iv) other incremental legal, accounting and consulting fees incurred as a result of the Company's restatement related investigation, regulatory requests for information or in conjunction with the Company's remediation of material weaknesses and other control deficiencies identified during the restatement. The Company incurred no restatement and remediation expenses during fiscal 2017 and incurred restatement and remediation related expenses of approximately $0.8 million and $22.0 million , respectively, during fiscal years 2016 and 2015, which are recorded in "restatement and remediation related expenses" in the Consolidated Statement of Income. Acquisition and integration expenses Acquisition and integration expenses are primarily comprised of transaction related costs, professional services and other costs including due diligence and integration activities, related to the acquisition of Avnet, Inc.'s ("Avnet") Technology Solutions business ("TS") (see Note 5 – Acquisitions for further discussion). LCD settlements and other, net The Company has been a claimant in proceedings seeking damages from certain manufacturers of LCD flat panel and cathode ray tube displays. The Company reached settlement agreements with certain manufacturers during the periods presented and has recorded these amounts, net of attorney fees and expenses, in "LCD settlements and other, net," in the Consolidated Statement of Income. Recently Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standard which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the license element should be accounted for consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The Company adopted this standard during the quarter ended April 30, 2016. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued an accounting standard which simplifies the accounting for adjustments made to provisional amounts recognized in a business combination. The new standard eliminates the requirement to retrospectively account for adjustments to provisional amounts that are identified during the measurement period. The Company adopted this standard during the quarter ended April 30, 2016. The adoption of this standard had no impact on the Company's consolidated financial statements. In March 2016, the FASB issued an accounting standard which modifies how companies account for certain aspects of stock-based payments to employees. The new standard revises the accounting treatment for excess tax benefits, statutory income tax withholding requirements, and forfeitures related to stock-based awards. The standard is effective for annual periods beginning after December 15, 2016; however, early adoption is permitted. The Company early adopted this standard during the quarter ended April 30, 2016. The Company has elected to continue to estimate the number of stock-based awards expected to vest, as permitted by the new standard, rather than electing to account for forfeitures as they occur. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements; however, as a result of the adoption of this standard, the classification of certain amounts in the Consolidated Statement of Cash Flows for the fiscal years ended January 31, 2016 and 2015 was retrospectively adjusted. Recently Issued Accounting Standards In May 2014, the FASB issued an accounting standard which will supersede all existing revenue recognition guidance under current GAAP. In March, April, May and December 2016, the FASB issued additional updates to the new accounting standard which provide supplemental adoption guidance and clarifications. The new standard requires the recognition of revenue to depict the transfer of promised goods or services in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2018. The Company would have the option to adopt one year earlier and the standard may be adopted using either a full retrospective or a modified retrospective approach. The Company has established a project implementation team and developed a multi-phase plan to assess the Company’s business, as well as any changes to processes or systems to adopt the requirements of the new standard. The Company is in the process of developing its conclusions on several aspects of the standard, including principal versus agent considerations, which would impact reporting certain revenues on a gross or net basis, as well as assessing the impact of the new standard on the accounting for revenue earned by TS, which was acquired in February 2017. In July 2015, the FASB issued a new accounting standard that simplifies the subsequent measurement of inventory. Under the new standard, the cost of inventory will be compared to the net realizable value (NRV). Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The standard should be applied prospectively and will be effective for the Company beginning with the quarter ending April 30, 2017. The Company does not expect the adoption of this standard to have a material impact on the Company's Consolidated Financial Statements. In February 2016, the FASB issued an accounting standard which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of additional information about leasing arrangements. Under the new guidance, for all leases, interest expense and amortization of the right to use asset will be rec |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 12 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share (EPS) [Abstract] | |
Earnings Per Share [Text Block] | NOTE 2 — EARNINGS PER SHARE ("EPS") The Company presents the composition of EPS on a basic and diluted basis. Basic EPS is computed by dividing net income 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 9 – Employee Benefit Plans ) using the treasury stock method. The composition of basic and diluted EPS (in thousands, except per share data) is as follows: Year ended January 31: 2017 2016 2015 Net income $ 195,095 $ 265,736 $ 175,172 Weighted average common shares - basic 35,194 35,898 38,172 Effect of dilutive securities: Equity-based awards 234 199 182 Weighted average common shares - diluted 35,428 36,097 38,354 Earnings per share Basic $ 5.54 $ 7.40 $ 4.59 Diluted $ 5.51 $ 7.36 $ 4.57 For the fiscal year ended January 31, 2017, there were 5,191 shares excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the fiscal years ended January 31, 2016 and 2015, there were no shares excluded from the computation of diluted earnings per share because their effect would have been antidilutive. |
Property And Equipment, Net
Property And Equipment, Net | 12 Months Ended |
Jan. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment, Net | NOTE 3 — PROPERTY AND EQUIPMENT, NET The Company's property and equipment (in thousands) consists of the following: As of January 31: 2017 2016 Land $ 3,957 $ 3,977 Buildings and leasehold improvements 69,065 68,377 Furniture, fixtures and equipment 269,032 283,842 Property and equipment 342,054 356,196 Less: accumulated depreciation (267,815 ) (290,168 ) Property and equipment, net $ 74,239 $ 66,028 Depreciation expense included in income from operations for the fiscal years ended January 31, 2017, 2016 and 2015 totaled $16.2 million , $16.3 million and $19.2 million , respectively. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | NOTE 4 — GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill, by geographic segment, for the fiscal year ended January 31, 2017 , are as follows (in thousands): Americas Europe Total Balance as of February 1, 2016 $ 19,559 $ 184,555 $ 204,114 Goodwill acquired during the year — 2,671 2,671 Foreign currency translation adjustment — (7,764 ) (7,764 ) Balance as of January 31, 2017 $ 19,559 $ 179,462 $ 199,021 In conjunction with the Company’s annual impairment testing, the Company’s goodwill was tested for impairment as of November 1, 2016. The results of the testing indicated that the fair value of the Company’s reporting units was greater than the carrying value. As a result, no goodwill impairment was recorded during the fiscal year ended January 31, 2017 . The Company's intangible assets consist of the following (in thousands): January 31, 2017 January 31, 2016 Gross Accumulated Net book Gross Accumulated Net book Capitalized software and $ 320,113 $ 269,872 $ 50,241 $ 308,926 $ 256,145 $ 52,781 Customer and vendor relationships 175,872 107,267 68,605 184,894 95,865 89,029 Other intangible assets 40,555 28,725 11,830 42,678 25,102 17,576 Total $ 536,540 $ 405,864 $ 130,676 $ 536,498 $ 377,112 $ 159,386 The Company capitalized intangible assets of $14.6 million , $29.2 million and $10.4 million for the fiscal years ended January 31, 2017, 2016 and 2015 , respectively. For fiscal 2017, these capitalized assets related primarily to software and software development expenditures to be used in the Company's operations. For fiscal 2016, these capitalized assets included acquired identifiable intangible assets (see also Note 5 - Acquisitions) and software and software development expenditures to be used in the Company's operations. For 2015, these capitalized assets related primarily to software and software development expenditures to be used in the Company's operations. Amortization expense for the fiscal years ended January 31, 2017, 2016 and 2015 , totaled $38.2 million , $41.0 million and $49.5 million , respectively. Estimated amortization expense of existing capitalized software and development costs and other intangible assets (which includes customer and vendor relationships and other intangible assets) is as follows (in thousands): Fiscal year: Capitalized software and development costs Other intangible assets Total 2018 $ 16,254 $ 19,091 $ 35,345 2019 11,998 15,951 27,949 2020 7,427 11,586 19,013 2021 5,577 11,272 16,849 2022 3,706 10,674 14,380 |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2017 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | NOTE 5 — ACQUISITIONS Acquisition of TS On September 19, 2016, the Company entered into an interest purchase agreement with Avnet to acquire TS. The Company completed the acquisition on February 27, 2017 (see further discussion in Note 16 - Subsequent Events). Acquisition and integration expenses are comprised of transaction related costs, professional services and other costs related to the acquisition of TS. Transaction related costs primarily include legal expenses and due diligence costs incurred in connection with the transaction. Professional services are primarily comprised of integration related activities, including professional fees for project management, accounting and tax consulting services. Acquisition and integration expenses related to the acquisition of TS in the accompanying Consolidated Statements of Income are comprised of the following (in thousands): Year ended: January 31, 2017 Professional services $ 14,338 Transaction related costs 12,083 Other 2,545 Total $ 28,966 Acquisition of STG On June 1, 2015, the Company completed the acquisition of Signature Technology Group, Inc. ("STG"), a partner-led provider of data center and professional services throughout North America, for a purchase price of $27.8 million . The purchase price has been allocated to the estimated fair values of assets acquired and liabilities assumed, including tangible assets of approximately $0.3 million , identifiable intangible assets of approximately $14.5 million , goodwill of approximately $14.1 million and liabilities of approximately $1.1 million . Identifiable intangible assets are primarily related to customer relationships with an estimated useful life of ten years. Proforma information for the acquisition of STG has not been presented as the acquisition was not material to the Company’s consolidated financial position or results of operations. |
Loss on Disposal of Subsidiarie
Loss on Disposal of Subsidiaries | 12 Months Ended |
Jan. 31, 2017 | |
Loss on Disposal of Subsidiaries [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 6 — LOSS ON DISPOSAL OF SUBSIDIARIES During the fourth quarter of fiscal 2015, the Company committed to a plan to sell its business operations in Chile and Peru. In March 2015, the Company also committed to a plan to exit its business operations in Uruguay. During fiscal 2016 and 2015, the Company incurred a loss of $0.7 million and $1.3 million , respectively, for charges related to the exit of its business operations in Uruguay and the loss on the sale of its business operations in Chile and Peru. The operating results of these entities during fiscal 2016 and 2015 were insignificant relative to the Company's consolidated financial results. During the fourth quarter of fiscal 2015, the Company also recorded a $5.6 million deferred tax liability related to undistributed earnings on assets held for sale in certain Latin American jurisdictions. |
Debt
Debt | 12 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 7 — DEBT The carrying value of the Company's outstanding debt consists of the following (in thousands): As of January 31: 2017 2016 Senior Notes, interest at 3.70% payable semi-annually, due February 15, 2022 $ 500,000 $ — Senior Notes, interest at 4.95% payable semi-annually, due February 15, 2027 500,000 — Senior Notes, interest at 3.75% payable semi-annually, due September 21, 2017 350,000 350,000 Less—unamortized debt discount and debt issuance costs (10,633 ) (1,392 ) Senior Notes, net 1,339,367 348,608 Other committed and uncommitted revolving credit facilities, average interest rate of 8.35% and 5.26% at January 31, 2017 and January 31, 2016, respectively 23,680 18,063 1,363,047 366,671 Less—current maturities (included as “revolving credit loans and current maturities of long-term debt, net”) (373,123 ) (18,063 ) Total long-term debt $ 989,924 $ 348,608 Senior Notes In January 2017, the Company issued $500.0 million aggregate principal amount of 3.70% Senior Notes due 2022 (the "3.70% Senior Notes") and $500.0 million aggregate principal amount of 4.95% Senior Notes due 2027 (the "4.95% Senior Notes") (collectively the "2017 Senior Notes"), resulting in proceeds of approximately $989.9 million , net of debt discount and debt issuance costs of approximately $1.6 million and $8.5 million , respectively. The net proceeds from the issuance of the 2017 Senior Notes were used to fund a portion of the purchase price of the acquisition of TS (see further discussion in Note 16 - Subsequent Events). The debt discount and debt issuance costs incurred in connection with the public offering are amortized over the life of the 2017 Senior Notes as additional interest expense using the effective interest method. The Company pays interest on the 2017 Senior Notes semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2017. The interest rate payable on the 2017 Senior Notes will be subject to adjustment from time to time if the credit rating assigned to such series of notes is downgraded. At no point will the interest rate be reduced below the interest rate payable on the notes on the date of the initial issuance or the total increase in the interest rate on the notes exceed 2.00% above the interest rate payable on the notes of the series on the date of their initial issuance. The 2017 Senior Notes are senior unsecured obligations of the Company and will rank equally with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding. The Company, at its option, may redeem the 3.70% Senior Notes at any time prior to January 15, 2022 and the 4.95% Senior Notes at any time prior to November 15, 2026, in each case in whole or in part, at a redemption price equal to the greater of 100% of the principal amount of the 2017 Senior Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2017 Senior Notes to be redeemed, discounted to the date of redemption on a semi-annual basis at a rate equal to the sum of the applicable Treasury Rate plus 30 basis points for the 3.70% Senior Notes and 40 basis points for the 4.95% Senior Notes, plus the accrued and unpaid interest on the principal amount being redeemed up to the date of redemption. The Company may also redeem the 2017 Senior Notes, at any time in whole or from time to time in part, on or after January 15, 2022 for the 3.70% Senior Notes and November 15, 2026 for the 4.95% Senior Notes, in each case, at a redemption price equal to 100% of the principal amount of the 2017 Senior Notes to be redeemed. In September 2012, the Company issued $350.0 million aggregate principal amount of 3.75% Senior Notes in a public offering (the “3.75% Senior Notes”), 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 debt discount and debt issuance costs incurred in connection with the public offering are amortized over the life of the 3.75% Senior Notes as additional interest expense using the effective interest method. The Company pays interest on the 3.75% Senior Notes semi-annually in arrears on March 21 and September 21 of each year, ending on the maturity date of September 21, 2017. The Company, at its option, may redeem the 3.75% Senior Notes at any time in whole or in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the 3.75% Senior Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 3.75% 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 3.75% Senior Notes are senior unsecured obligations of the Company and will rank equally with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding. Other Credit Facilities The Company has a $1.0 billion revolving credit facility with a syndicate of banks (the “Credit Agreement”), which among other things, provides for (i) a maturity date of November 2, 2021, (ii) 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) the ability to increase the facility to a maximum of $1.25 billion , subject to certain conditions. The Company pays interest on advances under the Credit Agreement at LIBOR (or similar interbank offered rates depending on currency draw) plus a predetermined margin that is based on the Company’s debt rating. There were no amounts outstanding under the Credit Agreement at January 31, 2017 and 2016 . The Company entered into a term loan credit agreement on November 2, 2016 with a syndicate of banks (the "Term Loan Credit Agreement") which provides for the borrowing of (i) a tranche of senior unsecured term loans in an original aggregate principal amount of $250 million and maturing three years after the funding date and (ii) a tranche of senior unsecured term loans in an original aggregate principal amount of $750 million and maturing five years after the funding date. The Company pays interest on advances under the Term Loan Credit Agreement at a fixed rate based on LIBOR (or similar interbank offered rates depending on currency draw) plus a predetermined margin that is based on the Company's debt rating. There were no balances outstanding under the Term Loan Credit Agreement as of January 31, 2017 as the term loans were funded in conjunction with the acquisition of TS, which occurred on February 27, 2017 (see further discussion in Note 16 - Subsequent Events). 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 collateral for borrowings up to a maximum of $400.0 million . Under this program, the Company transfers 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 $748.6 million and $721.1 million at January 31, 2017 and 2016 , respectively. As collections reduce accounts receivable balances included in the collateral pool, the Company may transfer interests in new receivables to bring the amount available to be borrowed up to the maximum. This program has a maturity date of November 16, 2017, 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 the Receivables Securitization Program at January 31, 2017 and 2016 . In addition to the facilities described above, the Company has various other committed and uncommitted lines of credit and overdraft facilities totaling approximately $251.4 million at January 31, 2017 to support its operations. Most of these facilities are provided on an unsecured, short-term basis and are reviewed periodically for renewal. There was $23.7 million outstanding on these facilities at January 31, 2017 , at a weighted average interest rate of 8.35% , and there was $18.1 million outstanding at January 31, 2016 , at a weighted average interest rate of 5.26% . At January 31, 2017 , the Company had also issued standby letters of credit of $30.2 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. 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 under these credit facilities include a maximum total leverage ratio and a minimum interest coverage ratio. At January 31, 2017 , the Company was in compliance with all such financial covenants. In light of these financial covenants, the Company’s maximum borrowing availability on these other credit facilities was restricted to approximately $1.0 billion , of which $23.7 million was outstanding at January 31, 2017 . Debt Commitment Letter On September 19, 2016, in connection with the interest purchase agreement related to TS, the Company obtained a commitment letter for a $3.1 billion senior unsecured bridge loan facility, subject to customary conditions, in order to finance a portion of the acquisition of TS, if necessary. As of January 31, 2017, the commitment was reduced to $300 million as a result of executing the Term Loan Credit Agreement, an amendment to the Credit Agreement, the issuance of the 2017 Senior Notes and the satisfaction of certain other conditions. The commitment for the bridge loan facility was terminated on February 27, 2017 in conjunction with the acquisition of TS (see further discussion in Note 16 - Subsequent Events). The Company paid $15.3 million of acquisition-related financing costs related to the bridge loan facility, which is being amortized over the expected term of the facility. Interest expense in the accompanying Consolidated Statements of Income for the year ended January 31, 2017 included $11.1 million of amortization expense related to this facility. Future payments of debt at January 31, 2017 and for succeeding fiscal years are as follows (in thousands): Fiscal Year: 2018 $ 373,680 2019 — 2020 — 2021 — 2022 — Thereafter 1,000,000 Total principal payments $ 1,373,680 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8 — INCOME TAXES Significant components of the provision for income taxes are as follows (in thousands): Year ended January 31: 2017 2016 2015 Current tax expense: Federal $ 37,724 $ 71,502 $ 32,988 State 4,030 5,989 1,626 Foreign 30,914 36,804 29,733 Total current tax expense 72,668 114,295 64,347 Deferred tax (benefit) expense: Federal (8,380 ) (3,984 ) 6,391 State (799 ) 543 281 Foreign (1,823 ) 5,828 (7,007 ) Total deferred tax (benefit) expense (11,002 ) 2,387 (335 ) $ 61,666 $ 116,682 $ 64,012 The reconciliation of the U.S. federal statutory tax rate to the effective tax rate is as follows: Year ended January 31: 2017 2016 2015 U.S. statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 0.8 1.1 0.5 Net changes in deferred tax valuation allowances (3.4 ) 0.0 (4.5 ) Tax on foreign earnings different than U.S. rate (9.9 ) (7.4 ) (11.8 ) Nondeductible interest 2.1 1.6 4.0 Reserve established for foreign income tax contingencies 0.5 0.0 0.1 Effect of company-owned life insurance (0.7 ) 0.2 (0.4 ) Undistributed earnings on foreign assets held for sale 0.0 0.0 2.4 Other, net (0.4 ) 0.0 1.5 24.0 % 30.5 % 26.8 % In fiscal 2017 and 2015, the Company recorded income tax benefits of $12.5 million and $19.2 million , respectively, primarily related to the reversal of deferred tax valuation allowances in certain European jurisdictions which had been recorded in prior fiscal years. Additionally during fiscal 2015, the Company recorded a $5.6 million deferred tax liability related to undistributed earnings on assets held for sale in certain Latin American jurisdictions (see further discussion in Note 6 – Loss on Disposal of Subsidiaries ). The components of pretax income are as follows (in thousands): Year ended January 31: 2017 2016 2015 United States $ 92,067 $ 195,219 $ 100,166 Foreign 164,694 187,199 139,018 $ 256,761 $ 382,418 $ 239,184 The significant components of the Company’s deferred tax liabilities and assets are as follows (in thousands): As of January 31: 2017 2016 Deferred tax liabilities: Depreciation and amortization $ 48,910 $ 53,939 Capitalized marketing program costs 7,525 6,547 Goodwill 7,581 8,545 Deferred costs currently deductible 4,110 5,415 Other, net 5,241 5,938 Total deferred tax liabilities 73,367 80,384 Deferred tax assets: Accrued liabilities 41,509 42,071 Loss carryforwards 92,338 103,647 Amortizable goodwill 2,191 5,315 Depreciation and amortization 4,547 6,502 Disallowed interest expense 6,249 5,140 Acquisition and transaction related costs 5,605 — Other, net 10,928 9,659 163,367 172,334 Less: valuation allowances (46,764 ) (60,165 ) Total deferred tax assets 116,603 112,169 Net deferred tax asset $ 43,236 $ 31,785 The net change in the deferred tax valuation allowances in fiscal 2017 was a decrease of $13.4 million primarily resulting from the reversal of deferred tax valuation allowances related to certain European jurisdictions as discussed previously. The net change in the deferred tax valuation allowances in fiscal 2016 was a decrease of $11.3 million primarily due to the impact of the translation of foreign currencies and the utilization of deferred tax assets subject to valuation allowances. The valuation allowances at both January 31, 2017 and 2016 primarily relate to foreign net operating loss carryforwards. The Company’s net operating loss carryforwards totaled $432.8 million and $482.3 million at January 31, 2017 and 2016 , respectively. The majority of the net operating losses have an indefinite carryforward period with the remaining portion expiring in fiscal years 2018 through 2034. The Company considers all positive and negative evidence available in determining the potential of realizing deferred tax assets. To the extent that the Company generates consistent taxable income within those operations with valuation allowances, the Company may reduce the valuation allowances, thereby reducing income tax expense and increasing net income in the period the determination is made. The estimates and assumptions used by the Company in computing the income taxes reflected in the Company’s consolidated financial statements could differ from the actual results reflected in the income tax returns filed during the subsequent year. Adjustments are recorded based on filed returns when such returns are finalized or the related adjustments are identified. At January 31, 2017 , there are $776.9 million of consolidated cumulative undistributed earnings of foreign subsidiaries for which no deferred taxes have been recorded. It is not practical to estimate the amount of unrecognized deferred U.S. income tax that might be payable if any earnings were to be distributed by individual foreign subsidiaries. A reconciliation of the beginning and ending balances of the total amount of gross unrecognized tax benefits, excluding accrued interest and penalties, for the years ended January 31, 2017, 2016 and 2015 is as follows (in thousands): For the year ended January 31: 2017 2016 2015 Gross unrecognized tax benefits at beginning of period $ 12,989 $ 5,125 $ 5,859 Increases in tax positions for prior years 5,443 8,443 845 Decreases in tax positions for prior years (118 ) (348 ) (730 ) Increases in tax positions for current year 1,022 106 105 Expiration of statutes of limitation (292 ) (77 ) (63 ) Settlements (370 ) (104 ) — Changes due to translation of foreign currencies (369 ) (156 ) (891 ) Gross unrecognized tax benefits at end of period $ 18,305 $ 12,989 $ 5,125 At January 31, 2017, 2016 and 2015 , the amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $12.5 million , $10.1 million and $5.1 million , respectively. Unrecognized tax benefits that have a reasonable possibility of significantly decreasing within the 12 months following January 31, 2017 totaled $4.8 million and were primarily related to the foreign taxation of certain transactions. Consistent with prior periods, the Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company’s accrued interest at January 31, 2017 , would not have a material impact on the effective tax rate if reversed. The provision for income taxes for each of the fiscal years ended January 31, 2017, 2016 and 2015 includes interest expense on unrecognized income tax benefits for current and prior years which is not significant to the Company’s Consolidated Statement of Income. The change in the balance of accrued interest for fiscal 2017, 2016 and 2015 , includes the current year end accrual, an interest benefit resulting from the expiration of statutes of limitation, and the translation adjustments on foreign currencies. The Company conducts business primarily in the Americas and Europe and, as a result, one or more of its subsidiaries files income tax returns in the U.S. federal, various state, local and foreign tax jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities. The Company is no longer subject to examinations by the Internal Revenue Service for years before fiscal 2014. Income tax returns of various foreign jurisdictions for fiscal 2006 and forward are currently under taxing authority examination or remain subject to audit. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | NOTE 9 — EMPLOYEE BENEFIT PLANS Overview of Equity Incentive Plans At January 31, 2017 , the Company had awards outstanding from two 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 2.2 million shares remain available for future grant at January 31, 2017 . 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, maximum value options and performance awards that are dependent upon achievement of specified performance goals. Equity-based compensation awards are used by the Company to attract talent and as a retention mechanism for the award recipients and have a maximum term of ten years, unless a shorter period is specified by the Compensation Committee of the Company’s 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 three years from the date of grant. 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. For the fiscal years ended January 31, 2017, 2016 and 2015 , the Company recorded $13.9 million , $14.9 million and $13.7 million , respectively, of stock-based compensation expense, and related income tax benefits of $4.6 million , $4.6 million and $4.2 million , respectively. There was no cash received from equity-based incentives exercised during the fiscal year ended January 31, 2017 and $0.6 million and $1.5 million of cash received from equity-based incentives exercised during fiscal 2016 and 2015, respectively. The actual benefit received from the tax deduction from the exercise of equity-based incentives was $4.8 million , $5.2 million and $5.2 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. Restricted Stock The Company’s restricted stock awards are primarily in the form of restricted stock units (“RSUs”) and typically vest in annual installments lasting between one and three years from the date of grant, unless a different vesting schedule is mandated by country law. All of the RSUs have a fair market value equal to the closing price of the Company’s common stock on the date of grant. Stock-based compensation expense includes $13.7 million , $14.8 million and $13.6 million related to RSUs during fiscal 2017, 2016 and 2015 , respectively. A summary of the status of the Company’s RSU activity for the fiscal year ended January 31, 2017 is as follows: Shares Weighted-average grant date fair value Nonvested at January 31, 2016 496,329 $ 60.28 Granted (a) 240,658 78.42 Vested (187,133 ) 60.73 Canceled (44,772 ) 66.65 Nonvested at January 31, 2017 505,082 68.11 (a) Includes 18,563 shares of performance-based restricted stock units, which assumes maximum achievement . The total fair value of RSUs which vested during the fiscal years ended January 31, 2017, 2016 and 2015 is $11.4 million , $15.4 million and $8.1 million , respectively. The weighted-average estimated fair value of the 275,539 RSUs granted during the fiscal year ended January 31, 2016 was $ 59.30 per share. The weighted-average estimated fair value of the 455,806 RSUs granted during the fiscal year ended January 31, 2015 was $61.06 per share. As of January 31, 2017 , the unrecognized stock-based compensation expense related to non-vested RSUs was $16.8 million , which the Company expects to be recognized over the next three years (over a remaining weighted average period of two years ). Employee Stock Purchase Plan Under the 1995 Employee Stock Purchase Plan (the “ESPP”), the Company is authorized to issue up to 1,000,000 shares of common stock to eligible employees in the Company’s U.S. and Canadian subsidiaries. Under the terms of the ESPP, employees can choose to have a fixed dollar amount or percentage deducted from their bi-weekly compensation to purchase the Company’s common stock and/or elect to purchase shares once per calendar quarter. The purchase price of the stock is 85% of the market value on the purchase date and employees are limited to a maximum purchase of $25,000 in fair market value each calendar year. From the inception of the ESPP through January 31, 2017 , the Company has issued 512,540 shares of common stock to the ESPP. All shares purchased under the ESPP must be held by the employees for a period of one year. Stock-based compensation expense related to the ESPP was insignificant during fiscal 2017, 2016 and 2015 . Retirement Savings Plan The Company sponsors the Tech Data Corporation 401(k) Savings Plan (the “401(k) Savings Plan”) for its U.S. employees. At the Company’s discretion, participant deferrals are matched in cash, in an amount equal to 50% of the first 6% of participant deferrals and participants are fully vested following four years of qualified service. Aggregate contributions made by the Company to the 401(k) Savings Plan were $3.1 million , $2.8 million and $0.1 million for fiscal 2017, 2016 and 2015 , respectively. The Company suspended the employer match for the 401(k) Savings Plan for a portion of fiscal 2015. The employer match for the 401(k) Saving Plan was reinstated for fiscal 2016. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 10 — SHAREHOLDERS' EQUITY During fiscal 2015, the Company’s Board of Directors authorized a share repurchase program for the repurchase of up to a total of $100.0 million of the Company’s common stock. During the first quarter of fiscal 2016, the Company completed this share repurchase program. Additionally, in June 2015, the Company's Board of Directors authorized an additional share repurchase program of up to $100.0 million of the Company's common stock. The Company completed this share repurchase program in fiscal 2016. There were no shares repurchased by the Company during the year ended January 31, 2017. The Company’s common share repurchase and issuance activity for fiscal 2017 and 2016 is summarized as follows: Shares Weighted- average Treasury stock balance at January 31, 2015 21,866,069 $ 42.95 Shares of common stock repurchased under share repurchase program 2,497,029 58.87 Shares of treasury stock reissued (199,696 ) Treasury stock balance at January 31, 2016 24,163,402 44.59 Shares of treasury stock reissued (144,419 ) Treasury stock balance at January 31, 2017 24,018,983 $ 44.59 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | NOTE 11 — FAIR VALUE MEASUREMENTS The Company’s assets and liabilities carried or disclosed at fair value are classified in one of the following three categories: Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in Level 1 above that are observable for the asset or liability, either directly or indirectly; and, Level 3 – unobservable inputs for the asset or liability. The classification of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table summarizes the valuation of the Company's assets and liabilities that are measured at fair value on a recurring basis: January 31, 2017 January 31, 2016 Fair value measurement category Fair value measurement category Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets Cash equivalents $ 1,000,010 $ — Foreign currency forward contracts $ 2,264 $ 3,412 Liabilities Foreign currency forward contracts $ 9,711 $ 2,274 The Company’s cash equivalents consist primarily of highly liquid investments in money market funds with maturity periods of three months or less. 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 "prepaid expenses and other assets" or "accrued expenses and other liabilities" in the Consolidated Balance Sheet. See further discussion below in Note 12 – Derivative Instruments. The Company utilizes life insurance policies to fund the Company’s nonqualified deferred compensation plan. The life insurance asset, which is recorded in the Company's Consolidated Balance Sheet in "other assets, net", 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, which is recorded in the Company's Consolidated Balance Sheet in "accrued expenses and other liabilities," is marked-to-market each period based upon the returns of the various investments 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 was $35.2 million and $35.3 million , respectively, at January 31, 2017 and $30.2 million and $30.5 million , respectively, at January 31, 2016. The carrying value of the 3.70% Senior Notes, 4.95% Senior Notes and 3.75% Senior Notes (collectively the "Senior Notes") discussed in Note 7 - Debt represents cost less unamortized debt discount and debt issuance costs. The estimated fair value of the Senior Notes is based upon quoted market information (Level 1). The estimated fair value of the Senior Notes was $1.354 billion at January 31, 2017. The carrying amounts of 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 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 | 12 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | NOTE 12 — 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’s foreign currency exposure relates primarily to international transactions 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: British pound, Canadian dollar, Czech koruna, Danish krone, euro, Mexican peso, Norwegian krone, Polish zloty, Swedish krona, Swiss franc and U.S. dollar. 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 gross profit 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 gross profit is not realized until the related inventory is sold. The Company recognizes 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 recognizes 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 intercompany loans. The total amount recognized in earnings on the Company’s foreign currency forward contracts, which depending upon the nature of the underlying hedged asset or liability is included as a component of either “cost of products sold” or “other (income) expense, net,” was a net foreign currency exchange loss of $4.3 million , gain of $9.0 million and gain of $18.8 million , respectively, for the fiscal years ended January 31, 2017 , 2016 and 2015 . 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 foreign currency forward contracts are also discussed in Note 11 – Fair Value Measurements. The Company’s average notional amounts of derivative financial instruments outstanding during the fiscal years ended January 31, 2017, 2016 and 2015 are approximately $0.6 billion , $0.6 billion and $0.7 billion , respectively, with average maturities of 29 days, 30 days and 32 days, respectively. As discussed above, under the Company’s hedging policies, gains and losses on the derivative financial instruments have been and would be expected to continue to be largely offset by the gains and losses on the underlying assets or liabilities being hedged. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 13 — COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases logistics centers, office facilities and certain equipment under non-cancelable operating leases, which expire at various dates through fiscal 2030. Fair value renewal and escalation clauses exist for a substantial portion of the operating leases. Rental expense for all operating leases, including minimum commitments under an agreement for data center services, totaled $53.0 million , $45.3 million and $52.8 million in fiscal years 2017, 2016 and 2015 , respectively. Future minimum lease payments at January 31, 2017 , under all such leases, including minimum commitments under an agreement for data center services, for succeeding fiscal years and thereafter are as follows (in thousands): Fiscal year: 2018 $ 47,700 2019 40,900 2020 36,800 2021 33,800 2022 19,100 Thereafter 27,500 Total payments $ 205,800 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, that expires in June 2018. 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 is 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. 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 minimum lease payments under the Synthetic Lease are approximately $3.4 million per year. The Synthetic Lease contains covenants that must be complied with, similar to the covenants described in certain of the credit facilities discussed in Note 7 - Debt. As of January 31, 2017 , the Company was in compliance with all such covenants. Contingencies Prior to fiscal 2004, one of the Company’s 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 related to fiscal years 1994 through 2001 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. During fiscal 2015, the Madrid Central Economic Administrative Court issued a decision revoking the penalties for certain of the assessed years. As a result of that decision, during the fiscal year ended January 31, 2015 the Company decreased its accrual for costs associated with this matter by $6.2 million , which is recorded in "value added tax assessments" in the Consolidated Statement of Income. During fiscal 2016, the Spanish Supreme Court issued final decisions for the assessments related to fiscal years 1996 through 2001 which barred certain of the assessed amounts. As a result of these decisions, during fiscal 2016, the Company decreased its accrual for costs associated with this matter by $25.4 million , including $16.4 million related to an accrual for assessments and penalties recorded in “value added tax assessments” and $9.0 million related to accrued interest recorded in “interest expense” in the Consolidated Statement of Income. The Company paid the remaining assessed amounts for fiscal years 1996 through 2001 of $12.3 million during fiscal 2016. During the second quarter of fiscal 2017, the Spanish National Appellate Court issued an opinion upholding the assessments for fiscal years 1994 and 1995. 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, certain of the amounts assessed for fiscal years 1994 and 1995 are not eligible to be appealed to the Spanish Supreme Court. As a result, the Company increased its accrual for costs associated with this matter by $2.6 million during fiscal 2017, including $1.5 million recorded in "value added tax assessments" and $1.1 million recorded in "interest expense" in the Consolidated Statement of Income. The Company estimates the probable liability for these assessments including various penalties and interest, was approximately $7.3 million at January 31, 2017, which is included in "accrued expenses and other liabilities" in the Consolidated Balance Sheet. 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 related to CIDE tax, including interest, was approximately $22.8 million at January 31, 2017. 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. In fiscal 2016, the Company determined that it had additional VAT liabilities due in one of its European subsidiaries. As a result, the Company recorded a charge of $7.6 million in “value added tax assessments” in the Consolidated Statement of Income during the year ended January 31, 2016 for VAT and associated costs. The Company has subsequently paid all VAT associated with this matter and filed amended tax returns with the tax authorities. 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. 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 January 31, 2017 and 2016 , the outstanding amount of guarantees under these arrangements totaled $3.7 million and $4.6 million , respectively. The Company believes that, based on historical experience, the likelihood of a material loss pursuant to the above guarantees is remote. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 31, 2017 | |
Segment Reporting Information, Additional Information [Abstract] | |
Segment Information | NOTE 14 — SEGMENT INFORMATION Tech Data operates predominately 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: Americas 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 excludes stock-based compensation expense from segment information. 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 (in thousands): Year ended January 31: 2017 2016 2015 Net sales to unaffiliated customers: Americas (1) $ 10,384,523 $ 10,356,716 $ 10,406,209 Europe 15,850,353 16,023,067 17,264,423 Total $ 26,234,876 $ 26,379,783 $ 27,670,632 Operating income: Americas (2) (3) (4) $ 144,246 $ 235,577 $ 145,107 Europe (5) (6) (7) 161,603 180,741 136,196 Stock-based compensation expense (13,947 ) (14,890 ) (13,668 ) Total $ 291,902 $ 401,428 $ 267,635 Depreciation and amortization: Americas $ 18,844 $ 18,243 $ 16,653 Europe 35,593 39,010 52,093 Total $ 54,437 $ 57,253 $ 68,746 Capital expenditures: Americas $ 19,275 $ 18,139 $ 13,798 Europe 20,060 15,833 14,377 Total $ 39,335 $ 33,972 $ 28,175 As of January 31: 2017 2016 Identifiable assets: Americas $ 3,238,162 $ 2,078,443 Europe 4,693,704 4,279,845 Total $ 7,931,866 $ 6,358,288 Long-lived assets: Americas (1) $ 35,581 $ 29,402 Europe 38,658 36,626 Total $ 74,239 $ 66,028 Goodwill & acquisition-related intangible assets, net: Americas $ 33,296 $ 35,615 Europe 246,002 274,401 Total $ 279,298 $ 310,016 (1) Net sales to unaffiliated customers in the United States represented 90% , 90% and 85% of the total Americas' net sales to unaffiliated customers for the fiscal years ended January 31, 2017, 2016 and 2015 , respectively. Total long-lived assets in the United States represented 94% and 95% of the Americas' total long-lived assets at January 31, 2017 and 2016 , respectively. (2) Operating income in the Americas for the fiscal year ended January 31, 2017 includes acquisition and integration expenses of $18.0 million (see further discussion in Note 5 - Acquisitions) and a gain recorded in LCD settlements and other, net, of $4.1 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies ). (3) Operating income in the Americas for the fiscal year ended January 31, 2016 includes a gain recorded in LCD settlements and other, net, of $98.4 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies ). (4) Operating income in the Americas for the fiscal year ended January 31, 2015 includes a gain recorded in LCD settlements and other, net, of $5.1 million and restatement and remediation related expenses of $4.0 million (see Note 1 – Business and Summary of Significant Accounting Policies ). (5) Operating income in Europe for the fiscal year ended January 31, 2017 includes acquisition and integration expenses of $11.0 million (see further discussion in Note 5 - Acquisitions) and an increase in the accrual for assessments and penalties for a VAT matter in the Company's subsidiary in Spain of $1.5 million (see further discussion in Note 13 - Commitments and Contingencies). (6) Operating income in Europe for the fiscal year ended January 31, 2016 includes a net benefit of $8.8 million related to various VAT matters in two European subsidiaries (see further discussion in Note 13 – Commitments and Contingencies ). (7) Operating income in Europe for the fiscal year ended January 31, 2015 includes restatement and remediation related expenses of $18.1 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies ) and a decrease in the accrual for value added tax matters in the Company's Spanish subsidiary of $6.2 million (see further discussion in Note 13 – Commitments and Contingencies ). |
Interim Financial Information (
Interim Financial Information (Unaudited) | 12 Months Ended |
Jan. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Information | NOTE 15 — INTERIM FINANCIAL INFORMATION (UNAUDITED) Interim financial information for fiscal years 2017 and 2016 is as follows (in thousands, except per share amounts): Fiscal year 2017: Quarter ended: April 30 (1) July 31 (1)(2) October 31 (2) January 31 (2)(3) Net sales $ 5,963,362 $ 6,353,739 $ 6,490,265 $ 7,427,510 Gross profit 298,611 316,450 315,839 371,027 Operating income 52,558 73,355 62,872 103,117 Net income $ 33,373 $ 46,394 $ 36,506 $ 78,822 Earnings per share: Basic $ 0.95 $ 1.32 $ 1.04 $ 2.24 Diluted $ 0.94 $ 1.31 $ 1.03 $ 2.22 Fiscal year 2016: Quarter ended: April 30 (4) July 31 (4)(5) October 31 (4) January 31 (4)(5) Net sales $ 5,887,229 $ 6,580,393 $ 6,428,540 $ 7,483,621 Gross profit 291,889 325,279 314,844 354,649 Operating income 81,938 106,235 68,053 145,202 Net income $ 51,277 $ 76,412 $ 41,900 $ 96,147 Earnings per share: Basic $ 1.39 $ 2.09 $ 1.19 $ 2.74 Diluted $ 1.38 $ 2.09 $ 1.18 $ 2.72 (1) During the first and second quarters of fiscal 2017, the Company recorded a gain of $0.4 million and $3.7 million , respectively, in LCD settlements and other, net (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies). (2) During the second, third and fourth quarters of fiscal 2017, the Company recorded $2.0 million , $13.0 million and $14.0 million of acquisition and integration expenses, respectively (see further discussion in Note 5 - Acquisitions). (3) The Company recorded an income tax benefit of $12.5 million in the fourth quarter of fiscal 2017 primarily related to the reversal of deferred tax valuation allowances in certain jurisdictions in Europe. (4) During the first, second, third and fourth quarters of fiscal 2016, the Company recorded a gain of $38.5 million , $21.5 million , $3.0 million and $35.4 million , respectively, in LCD Settlements and other, net (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies ). (5) The Company recorded a net benefit of $9.6 million in the second quarter and an expense of $0.8 million in the fourth quarter of fiscal 2016 related to various VAT matters in two European subsidiaries (see further discussion in Note 13 – Commitments and Contingencies ). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 16 — SUBSEQUENT EVENTS Acquisition of TS On February 27, 2017 , the Company completed the acquisition of TS. The Company acquired all of the outstanding shares of TS for an aggregate purchase price of approximately $2.672 billion , comprised of approximately $2.425 billion in cash and 2,785,402 shares of Tech Data's common stock, valued at $247 million based on the closing price of the Company's common stock on February 27, 2017, with the cash consideration subject to certain working capital and other adjustments. TS delivers technology services, software, hardware and solutions across the data center. The TS acquisition diversifies the Company's end-to-end solutions, deepens its value added capabilities and balances its solutions portfolio. The addition of TS also extends the Company's geographic reach into the Asia-Pacific region while broadening its capabilities in Europe and the Americas, including re-entering Latin America with a focus on the delivery of new technologies that drive and complement the data center in this market. The acquisition will be accounted for as a business combination, with a portion of the goodwill being tax deductible. Since the closing of this acquisition occurred subsequent to the Company's fiscal year-end, the allocation of the purchase price to the underlying assets acquired and liabilities assumed is subject to a formal valuation process, which has not yet been completed. The major classes of assets acquired will include trade receivables, inventories, trade payables and goodwill. The Company's first quarter fiscal 2018 operating results will include the results from TS following the date of acquisition. Based on the timing of the acquisition and lack of available information, the Company has determined it to be impracticable to disclose a preliminary purchase price allocation or proforma financial information at this time. Term Loan Credit Agreement In connection with the acquisition of TS on February 27, 2017, the Company borrowed $1.0 billion under its Term Loan Credit Agreement in order to fund a portion of the cash consideration paid to Avnet. The borrowings are comprised of $250.0 million of three-year senior unsecured term loans (the “2020 Term Loans”) and $750.0 million of five-year senior unsecured term loans (the “2022 Term Loans”). The outstanding principal amount of the 2020 Term Loans is payable on February 27, 2020. The outstanding principal amount of the 2022 Term Loans is payable in equal quarterly installments of i) for the first three years after the closing date, 5.0% per annum of the initial principal amount and ii) for the fourth and fifth years after the closing date, 10.0% per annum of the initial principal amount, with the remaining balance payable on February 27, 2022. The Company pays interest on advances under the Term Loan Credit Agreement at a fixed rate based on LIBOR (or similar interbank offered rates depending on currency draw) plus a predetermined margin that is based on the Company's debt rating. |
Schedule II Valuation And Quali
Schedule II Valuation And Qualifying Accounts | 12 Months Ended |
Jan. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | SCHEDULE II TECH DATA CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS (In thousands) Activity Allowance for doubtful accounts receivable and sales returns Balance at Charged to Deductions Other (1) Balance at Year ended January 31: 2017 $ 45,875 $ 5,026 $ (16,596 ) $ 4,462 $ 38,767 2016 $ 50,143 $ 6,061 $ (13,797 ) $ 3,468 $ 45,875 2015 $ 58,754 $ 10,415 $ (25,083 ) $ 6,057 $ 50,143 (1) “Other” primarily includes recoveries, acquisitions and dispositions and the effect of fluctuations in foreign currencies. |
Business and Summary of Signi26
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2017 | |
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: Americas 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. 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, 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 (“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. |
Revenue Recognition | Revenue is recognized once four criteria are met: (1) the Company must have persuasive evidence that an arrangement exists; (2) delivery must occur, which generally happens at the point of shipment (this includes the transfer of both title and risk of loss, provided that no significant obligations remain); (3) the price must be fixed or determinable; and (4) collectability must be reasonably assured. Shipping revenue is included in net sales while the related costs, including shipping and handling costs, are included in the cost of products sold. The Company allows its customers to return product for exchange or credit subject to certain limitations. A provision for such returns is recorded at the time of sale based upon historical experience. The Company also has certain fulfillment, extended warranty and service contracts with certain customers and suppliers whereby the Company assumes an agency relationship in the transaction. In such arrangements where the Company is not the primary obligor, revenues are recognized as the net fee associated with serving as an agent. Taxes imposed by governmental authorities on the Company’s revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. Service revenue associated with configuration, training, fulfillment and other services is recognized when the work is complete and the four criteria discussed above have been met. Service revenues have represented less than 10% of consolidated net sales for fiscal years 2017, 2016 and 2015 . |
Cash and Cash Equivalents | Short-term investments which are highly liquid and have an original maturity of 90 days or less are considered cash equivalents. The Company’s cash equivalents consist primarily of highly liquid investments in money market funds with maturity periods of three months or less. |
Investments | The Company invests in 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." |
Accounts Receivable | The Company maintains an allowance for doubtful accounts receivable and sales returns for estimated losses resulting from the inability of its customers to make required payments and estimated product returns by customers for exchange or credit. In estimating the required allowance, the Company takes into consideration the overall quality and aging of the receivable portfolio, the large number of customers and their dispersion across wide geographic areas, the existence of credit insurance where applicable, specifically identified customer risks, historical write-off and sales returns experience and the current economic environment. If actual customer performance were to deteriorate to an extent not expected by the Company, additional allowances may be required which could have an adverse effect on the Company’s financial results. Conversely, if actual customer performance were to improve to an extent not expected by the Company, a reduction in the allowance may be required which could have a favorable effect on the Company’s consolidated financial results. 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 January 31, 2017 and 2016 , the Company had a total of $506.7 million and $554.2 million , respectively, of accounts receivable sold to and held by financial institutions under these agreements. Discount fees recorded under these facilities, which are included as a component of "other (income) expense, net" in the Company's Consolidated Statement of Income, were $6.1 million , $4.4 million and $4.4 million during the fiscal years ended January 31, 2017, 2016 and 2015 , respectively. |
Inventories | Inventories, consisting entirely of finished goods, are stated at the lower of cost or market, cost being determined on a moving average cost basis, which approximates the first-in, first-out method. Inventory is written down for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value, based upon an aging analysis of the inventory on hand, specifically known inventory-related risks (such as technological obsolescence and the nature of vendor terms surrounding price protection and product returns), foreign currency fluctuations for foreign-sourced product and assumptions about future demand. Market conditions or changes in terms and conditions by the Company’s vendors that are less favorable than those projected by management may require additional inventory write-downs, which could have an adverse effect on the Company’s consolidated financial results. |
Vendor Incentives | The Company receives incentives from vendors related to cooperative advertising allowances, infrastructure funding, volume rebates and other incentive agreements. These incentives are generally under quarterly, semi-annual or annual agreements with the vendors; however, some of these incentives are negotiated on an ad-hoc basis to support specific programs mutually developed with the vendor. Unrestricted volume rebates and early payment discounts received from vendors are recorded when they are earned as a reduction of inventory and as a reduction of cost of products sold as the related inventory is sold. Vendor incentives for specifically identified cooperative advertising programs and infrastructure funding are recorded when earned as adjustments to product costs or selling, general and administrative expenses, depending on the nature of the program. Reserves for receivables on vendor programs are recorded for estimated losses resulting from vendors’ inability to pay or rejections of claims by vendors. Should amounts recorded as outstanding receivables from vendors be deemed uncollectible, additional allowances may be required which could have an adverse effect on the Company’s consolidated financial results. Conversely, if amounts recorded as outstanding receivables from vendors were to improve to an extent not expected by the Company, a reduction in the allowance may be required which could have a favorable effect on the Company’s consolidated financial results. |
Property and Equipment | Property and equipment are stated at cost. Depreciation expense includes depreciation of purchased property and equipment. Depreciation expense is computed over the shorter of the estimated economic lives or lease periods using the straight-line method, generally as follows: Years Buildings and improvements 15 - 39 Leasehold improvements 3 - 10 Furniture, fixtures and equipment 3 - 10 Expenditures for renewals and improvements that significantly add to productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to operations when incurred. When assets are sold or retired, the cost of the asset and the related accumulated depreciation are eliminated and any gain or loss is recognized at such time. |
Intangible Assets, net | Included within "intangible assets, net," at both January 31, 2017 and 2016 are capitalized software and development costs, as well as customer and vendor relationships, a preferred supplier agreement and trademarks acquired in connection with various business acquisitions. Such capitalized costs and intangible assets are being amortized over a period of three to ten years. The Company’s capitalized software has been obtained or developed for internal use only. Development and acquisition costs are capitalized for computer software only when management authorizes and commits to funding a computer software project through the approval of a capital expenditure requisition, and the software project is either for the development of new software, to increase the life of existing software or to add significantly to the functionality of existing software. Once these requirements have been met, capitalization would begin at the point that conceptual formulation, evaluation, design and testing of possible software project alternatives have been completed. Capitalization ceases when the software project is substantially complete and ready for its intended use. The Company’s accounting policy is to amortize capitalized software costs on a straight-line basis over periods ranging from three to ten years, depending upon the nature of the software, the stability of the hardware platform on which the software is installed, its fit in the Company’s overall strategy and the Company's experience with similar software. Prepaid maintenance fees associated with a software application are accounted for separately from the related software and amortized over the life of the maintenance agreement. General, administrative, overhead, training, non-development data conversion processes, and maintenance costs, as well as the costs associated with the preliminary project and post-implementation stages are expensed as incurred. |
Impairment Long-Lived Assets | Long-lived assets, including property and equipment and intangible assets, are reviewed for potential impairment at such time when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is evaluated when the sum of the expected, undiscounted future net cash flows is less than the carrying amount of the asset. Any impairment loss is measured by comparing the fair value of the asset to its carrying value. |
Goodwill | The Company performs an annual review for the potential impairment of the carrying value of goodwill, or more frequently if current events and circumstances indicate a possible impairment. For purposes of its goodwill analysis, the Company has two reporting units, which are also the Company’s operating segments. The Company evaluates the appropriateness of performing a qualitative assessment, on a reporting unit level, based on current circumstances. If the results of the qualitative assessment indicate that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, the two-step impairment test will not be performed. The factors that were considered in the qualitative analysis included macroeconomic conditions, industry and market considerations, cost factors such as increases in product cost, labor, or other costs that would have a negative effect on earnings and cash flows and other relevant entity-specific events and information. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the two-step impairment test is performed. The first step of the impairment test compares the fair value of the Company's reporting units with their carrying amounts, including goodwill. The fair values of the reporting units are estimated using market and discounted cash flow approaches. The assumptions used in the market approach are based on the value of a business through an analysis of multiples of guideline companies and recent sales or offerings of a comparable entity. The assumptions used in the discounted cash flow approach are based on historical and forecasted revenue, operating costs, future economic conditions and other relevant factors. If the carrying amount exceeds fair value, then the second step of the impairment test is performed to measure the amount of any impairment loss. The amount of an impairment loss is recognized as the excess of the carrying value of goodwill over its implied fair value and is charged to expense in the period identified. During the second quarter of fiscal year 2017, the Company elected to change the timing of its annual goodwill impairment testing from January 31st to November 1st. This accounting change is considered to be preferable because it allows the Company additional time to complete the annual goodwill impairment test. This change does not represent a material change to the method of applying an accounting principle, nor does this change result in adjustments to previously issued financial statements. The Company has concluded that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of each November 1st of prior reporting periods. As a result, the Company prospectively applied the change in the annual goodwill impairment testing date beginning November 1, 2016. This change in testing date did not delay, accelerate or avoid a goodwill impairment charge. |
Product Warranty | The Company’s vendors generally warrant the products distributed by the Company and allow the Company to return defective products, including those that have been returned to the Company by its customers. The Company typically does not independently warrant the products it distributes; however, in several countries where the Company operates, the Company is responsible for defective product as a matter of law. The time period required by law in certain countries exceeds the warranty period provided by the manufacturer. The Company is obligated to provide warranty protection for sales of certain IT products within the European Union (“EU”) for up to two years as required under the EU directive where vendors have not affirmatively agreed to provide pass-through protection. To date, the Company has not incurred any significant costs for defective products under these legal requirements. The Company does warrant services with regard to products integrated for its customers. A provision for estimated warranty costs is recorded at the time of sale and periodically adjusted to reflect actual experience. To date, the Company has not incurred any significant service warranty costs. |
Value Added Taxes | The majority of the Company's international operations are subject to a value added tax ("VAT"), which is typically applied to all goods and services purchased and sold. The Company's VAT liability represents VAT that has been recorded on sales to its customers and not yet remitted to the respective governmental authorities and the Company's VAT receivable represents VAT paid on purchases of goods and services that will be collected from future sales to its customers. At January 31, 2017 and 2016 , the Company's VAT liability was $209.6 million and $197.7 million , respectively, and is included in "accrued expenses and other liabilities" on the Company's Consolidated Balance Sheet. At January 31, 2017 and 2016 , the Company's VAT receivable was $29.1 million and $27.8 million , respectively, and is included in "prepaid expenses and other assets" on the Company's Consolidated Balance Sheet. |
Income Taxes | Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the book basis and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the fiscal period that includes the enactment date. Deferred taxes have not been provided on the cumulative undistributed earnings of foreign subsidiaries or the cumulative translation adjustment related to those investments because such amounts are expected to be reinvested indefinitely. The Company’s future effective tax rates could be adversely affected by earnings being lower than anticipated in countries with lower statutory rates, 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 considers all positive and negative evidence available in determining the potential realization of deferred tax assets, including the scheduled reversal of temporary differences, recent cumulative losses, recent and projected future taxable income and prudent and feasible tax planning strategies. In making this determination, the Company places greater emphasis on recent cumulative losses and recent taxable income due to the inherent lack of subjectivity associated with these factors. In addition, the Company is subject to the periodic examination of its income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. To the extent the Company was to prevail in matters for which accruals have been established or to be required to pay amounts in excess of such accruals, the Company’s effective tax rate in a given financial statement period could be materially affected. |
Concentration of Credit Risk | The Company’s financial instruments which are subject to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and foreign currency exchange contracts. The Company’s cash and cash equivalents are deposited and/or invested with various financial institutions globally that are monitored on a regular basis by the Company for credit quality. The Company sells its products to a large base of value-added resellers, direct marketers, retailers and corporate resellers throughout the Americas and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company has obtained credit insurance, primarily in Europe, which insures a percentage of credit extended by the Company to certain of its customers against possible loss. The Company maintains provisions for estimated credit losses. No single customer accounted for more than 10% of the Company’s net sales during fiscal years 2017, 2016 and 2015 . The Company also enters into foreign currency exchange contracts. In the event of a failure to honor one of these contracts by one of the banks with which the Company has contracted, the Company believes any loss would be limited in most circumstances to the exchange rate differential from the time the contract was executed until the time the contract was settled. The Company’s foreign currency exchange contracts are executed with various financial institutions globally and are monitored on a regular basis by the Company for credit quality. |
Foreign Currency Translation and Remeasurement | The assets and liabilities of the Company's foreign subsidiaries for which the local currency is the functional currency are translated into U.S. dollars using the exchange rate in effect at each balance sheet date and income and expense accounts are translated using weighted average exchange rates for each period during the year. Translation gains and losses are reported as components of "accumulated other comprehensive loss", included within shareholders’ equity in the Company's Consolidated Balance Sheet. Gains and losses from foreign currency transactions are included in the Company's Consolidated Statement of Income. |
Derivatives Financial Instruments | The Company faces exposure to changes in foreign currency exchange rates. The Company reduces its exposure by creating offsetting positions through the use of derivative financial instruments, in the form of foreign currency forward contracts, in situations where there are not offsetting balances that create an economic hedge. Substantially all of these instruments have terms of 90 days or less. It is the Company’s policy to utilize financial instruments to reduce risk where appropriate and prohibit entering into derivative financial instruments for speculative or trading purposes. Derivative financial instruments used to reduce exposure to foreign currency risk are not designated as hedging instruments. The derivative instruments are marked-to-market each period with gains and losses on these contracts recorded in the Company’s Consolidated Statement of Income within “cost of products sold” for derivative instruments used to manage the Company’s exposure to foreign denominated accounts receivable and accounts payable and within “other (income) expense, net,” for derivative instruments used to manage the Company’s exposure to foreign denominated financing transactions. Such mark-to-market gains and losses are recorded in the period in which their value changes, with the offsetting entry for unsettled positions being recorded to either "prepaid expenses and other assets" or "accrued expenses and other liabilities" in the Company's Consolidated Balance Sheet. |
Comprehensive Income | Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, and is comprised of “net income” and “other comprehensive income.” The Company’s "accumulated other comprehensive loss" is comprised exclusively of changes in the Company’s currency translation adjustment account. |
Stock-Based Compensation | The Company records all equity-based incentive grants to employees and non-employee members of the Company’s Board of Directors in “selling, general and administrative expenses” in the Company’s Consolidated Statement of Income based on their fair values determined on the date of grant. Stock-based compensation expense, reduced for estimated forfeitures, is recognized on a straight-line basis over the requisite service period of the award. The Company estimates forfeiture rates based on its historical experience. |
Treasury Stock | Treasury stock is accounted for at cost. Shares repurchased by the Company are held in treasury for general corporate purposes, including issuances under equity incentive and benefit plans. The reissuance of shares from treasury stock is based on the weighted average purchase price of the shares. |
Contingencies | The Company accrues for contingent obligations, including estimated legal costs, when the obligation is probable and the amount is reasonably estimable. As facts concerning contingencies become known, the Company reassesses its position and makes appropriate adjustments to the financial statements. Estimates that are particularly sensitive to future changes include those related to tax, legal and other regulatory matters such as imports and exports, the imposition of international governmental controls, changes in the interpretation and enforcement of international laws (particularly related to items such as duty and taxation), and the impact of local economic conditions and practices, which are all subject to change as events evolve and as additional information becomes available during the administrative and litigation process. |
Unusual or Infrequent Items | Restatement and remediation related expenses Restatement and remediation related expenses primarily include legal, accounting and third party consulting fees associated with (i) the restatement of certain of the Company's consolidated financial statements and other financial information from fiscal 2009 to fiscal 2013, (ii) the Audit Committee investigation to review the Company's accounting practices, (iii) incremental external audit and supplemental procedures by the Company in connection with the preparation of the Company's financial statements, and (iv) other incremental legal, accounting and consulting fees incurred as a result of the Company's restatement related investigation, regulatory requests for information or in conjunction with the Company's remediation of material weaknesses and other control deficiencies identified during the restatement. The Company incurred no restatement and remediation expenses during fiscal 2017 and incurred restatement and remediation related expenses of approximately $0.8 million and $22.0 million , respectively, during fiscal years 2016 and 2015, which are recorded in "restatement and remediation related expenses" in the Consolidated Statement of Income. Acquisition and integration expenses Acquisition and integration expenses are primarily comprised of transaction related costs, professional services and other costs including due diligence and integration activities, related to the acquisition of Avnet, Inc.'s ("Avnet") Technology Solutions business ("TS") (see Note 5 – Acquisitions for further discussion). LCD settlements and other, net The Company has been a claimant in proceedings seeking damages from certain manufacturers of LCD flat panel and cathode ray tube displays. The Company reached settlement agreements with certain manufacturers during the periods presented and has recorded these amounts, net of attorney fees and expenses, in "LCD settlements and other, net," in the Consolidated Statement of Income. |
Recently Issued Accounting Standards | In July 2015, the FASB issued a new accounting standard that simplifies the subsequent measurement of inventory. Under the new standard, the cost of inventory will be compared to the net realizable value (NRV). Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The standard should be applied prospectively and will be effective for the Company beginning with the quarter ending April 30, 2017. The Company does not expect the adoption of this standard to have a material impact on the Company's Consolidated Financial Statements. In February 2016, the FASB issued an accounting standard which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of additional information about leasing arrangements. Under the new guidance, for all leases, interest expense and amortization of the right to use asset will be recorded for leases determined to be financing leases and straight-line lease expense will be recorded for leases determined to be operating leases. Lessees will initially recognize assets for the right to use the leased assets and liabilities for the obligations created by those leases. The new accounting standard must be adopted using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The accounting standard is effective for the Company beginning with the quarter ended April 30, 2019, with early adoption permitted. The Company is currently in the process of assessing what impact this new standard may have on its consolidated financial statements. In June 2016, the FASB issued an accounting standard which revises the methodology for measuring credit losses on financial instruments and the timing of the recognition of those losses. Under the new standard, financial assets measured at an amortized cost basis are to be presented net of the amount not expected to be collected via an allowance for credit losses. Estimated credit losses are to be based on historical information adjusted for management's expectation that current conditions and supportable forecasts differ from historical experience. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2020, with early adoption permitted. The Company is currently in the process of assessing what impact this new standard may have on its consolidated financial statements. In August 2016, the FASB issued a new accounting standard that addresses how certain cash receipts and cash payments are presented and classified on the statement of cash flows. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2018, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. In October 2016, the FASB issued a new accounting standard that revises the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The accounting standard is effective for the Company beginning with the quarter ending April 30, 2018, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. In January 2017, the FASB issued a new standard that simplifies the subsequent measurement of goodwill by eliminating Step 2 from the annual goodwill impairment test. The accounting standard should be applied prospectively and will be effective for the Company beginning with the quarter ended April 30, 2020, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
Recently Adopted Accounting Standards | In April 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standard which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the license element should be accounted for consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The Company adopted this standard during the quarter ended April 30, 2016. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued an accounting standard which simplifies the accounting for adjustments made to provisional amounts recognized in a business combination. The new standard eliminates the requirement to retrospectively account for adjustments to provisional amounts that are identified during the measurement period. The Company adopted this standard during the quarter ended April 30, 2016. The adoption of this standard had no impact on the Company's consolidated financial statements. In March 2016, the FASB issued an accounting standard which modifies how companies account for certain aspects of stock-based payments to employees. The new standard revises the accounting treatment for excess tax benefits, statutory income tax withholding requirements, and forfeitures related to stock-based awards. The standard is effective for annual periods beginning after December 15, 2016; however, early adoption is permitted. The Company early adopted this standard during the quarter ended April 30, 2016. The Company has elected to continue to estimate the number of stock-based awards expected to vest, as permitted by the new standard, rather than electing to account for forfeitures as they occur. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements; however, as a result of the adoption of this standard, the classification of certain amounts in the Consolidated Statement of Cash Flows for the fiscal years ended January 31, 2016 and 2015 was retrospectively adjusted. |
Reclassifications | Certain reclassifications have been made to the prior period amounts to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. |
Business and Summary of Signi27
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Business and Summary of Significant Accounting Policies [Abstract] | |
Vendor Concentration Risk | The following table provides a comparison of sales generated from products purchased from vendors that exceeded 10% of the Company's consolidated net sales for fiscal 2017, 2016 and 2015 (as a percent of consolidated net sales): 2017 2016 2015 Apple, Inc. 20% 20% 15% HP Inc. 13% Hewlett-Packard Company (a) 13% 19% Cisco Systems, Inc. 10% (a) Effective November 1, 2015, Hewlett-Packard Company split into two companies, HP Inc. and Hewlett Packard Enterprise. Amounts presented for fiscal years 2016 and 2015 represent the sales generated from products purchased from Hewlett-Packard Company prior to the split. |
Property And Equipment, Net | Depreciation expense is computed over the shorter of the estimated economic lives or lease periods using the straight-line method, generally as follows: Years Buildings and improvements 15 - 39 Leasehold improvements 3 - 10 Furniture, fixtures and equipment 3 - 10 The Company's property and equipment (in thousands) consists of the following: As of January 31: 2017 2016 Land $ 3,957 $ 3,977 Buildings and leasehold improvements 69,065 68,377 Furniture, fixtures and equipment 269,032 283,842 Property and equipment 342,054 356,196 Less: accumulated depreciation (267,815 ) (290,168 ) Property and equipment, net $ 74,239 $ 66,028 |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share (EPS) [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The composition of basic and diluted EPS (in thousands, except per share data) is as follows: Year ended January 31: 2017 2016 2015 Net income $ 195,095 $ 265,736 $ 175,172 Weighted average common shares - basic 35,194 35,898 38,172 Effect of dilutive securities: Equity-based awards 234 199 182 Weighted average common shares - diluted 35,428 36,097 38,354 Earnings per share Basic $ 5.54 $ 7.40 $ 4.59 Diluted $ 5.51 $ 7.36 $ 4.57 For the fiscal year ended January 31, 2017, there were 5,191 shares excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the fiscal years ended January 31, 2016 and 2015, there were no shares excluded from the computation of diluted earnings per share because their effect would have been antidilutive. |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment, Net | Depreciation expense is computed over the shorter of the estimated economic lives or lease periods using the straight-line method, generally as follows: Years Buildings and improvements 15 - 39 Leasehold improvements 3 - 10 Furniture, fixtures and equipment 3 - 10 The Company's property and equipment (in thousands) consists of the following: As of January 31: 2017 2016 Land $ 3,957 $ 3,977 Buildings and leasehold improvements 69,065 68,377 Furniture, fixtures and equipment 269,032 283,842 Property and equipment 342,054 356,196 Less: accumulated depreciation (267,815 ) (290,168 ) Property and equipment, net $ 74,239 $ 66,028 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Changes In Carrying Amount Of Goodwill | The changes in the carrying amount of goodwill, by geographic segment, for the fiscal year ended January 31, 2017 , are as follows (in thousands): Americas Europe Total Balance as of February 1, 2016 $ 19,559 $ 184,555 $ 204,114 Goodwill acquired during the year — 2,671 2,671 Foreign currency translation adjustment — (7,764 ) (7,764 ) Balance as of January 31, 2017 $ 19,559 $ 179,462 $ 199,021 |
Schedule Of Intangible Assets | The Company's intangible assets consist of the following (in thousands): January 31, 2017 January 31, 2016 Gross Accumulated Net book Gross Accumulated Net book Capitalized software and $ 320,113 $ 269,872 $ 50,241 $ 308,926 $ 256,145 $ 52,781 Customer and vendor relationships 175,872 107,267 68,605 184,894 95,865 89,029 Other intangible assets 40,555 28,725 11,830 42,678 25,102 17,576 Total $ 536,540 $ 405,864 $ 130,676 $ 536,498 $ 377,112 $ 159,386 |
Schedule Of Estimated Amortization Expense | Estimated amortization expense of existing capitalized software and development costs and other intangible assets (which includes customer and vendor relationships and other intangible assets) is as follows (in thousands): Fiscal year: Capitalized software and development costs Other intangible assets Total 2018 $ 16,254 $ 19,091 $ 35,345 2019 11,998 15,951 27,949 2020 7,427 11,586 19,013 2021 5,577 11,272 16,849 2022 3,706 10,674 14,380 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition and integration expenses [Table Text Block] | Acquisition and integration expenses related to the acquisition of TS in the accompanying Consolidated Statements of Income are comprised of the following (in thousands): Year ended: January 31, 2017 Professional services $ 14,338 Transaction related costs 12,083 Other 2,545 Total $ 28,966 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components Of Debt | The carrying value of the Company's outstanding debt consists of the following (in thousands): As of January 31: 2017 2016 Senior Notes, interest at 3.70% payable semi-annually, due February 15, 2022 $ 500,000 $ — Senior Notes, interest at 4.95% payable semi-annually, due February 15, 2027 500,000 — Senior Notes, interest at 3.75% payable semi-annually, due September 21, 2017 350,000 350,000 Less—unamortized debt discount and debt issuance costs (10,633 ) (1,392 ) Senior Notes, net 1,339,367 348,608 Other committed and uncommitted revolving credit facilities, average interest rate of 8.35% and 5.26% at January 31, 2017 and January 31, 2016, respectively 23,680 18,063 1,363,047 366,671 Less—current maturities (included as “revolving credit loans and current maturities of long-term debt, net”) (373,123 ) (18,063 ) Total long-term debt $ 989,924 $ 348,608 |
Schedule of Maturities of Long-term Debt | Future payments of debt at January 31, 2017 and for succeeding fiscal years are as follows (in thousands): Fiscal Year: 2018 $ 373,680 2019 — 2020 — 2021 — 2022 — Thereafter 1,000,000 Total principal payments $ 1,373,680 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Significant Components Of The Provision For Income Taxes | Significant components of the provision for income taxes are as follows (in thousands): Year ended January 31: 2017 2016 2015 Current tax expense: Federal $ 37,724 $ 71,502 $ 32,988 State 4,030 5,989 1,626 Foreign 30,914 36,804 29,733 Total current tax expense 72,668 114,295 64,347 Deferred tax (benefit) expense: Federal (8,380 ) (3,984 ) 6,391 State (799 ) 543 281 Foreign (1,823 ) 5,828 (7,007 ) Total deferred tax (benefit) expense (11,002 ) 2,387 (335 ) $ 61,666 $ 116,682 $ 64,012 |
Schedule Of Effective Income Tax Rate Reconciliation | The reconciliation of the U.S. federal statutory tax rate to the effective tax rate is as follows: Year ended January 31: 2017 2016 2015 U.S. statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 0.8 1.1 0.5 Net changes in deferred tax valuation allowances (3.4 ) 0.0 (4.5 ) Tax on foreign earnings different than U.S. rate (9.9 ) (7.4 ) (11.8 ) Nondeductible interest 2.1 1.6 4.0 Reserve established for foreign income tax contingencies 0.5 0.0 0.1 Effect of company-owned life insurance (0.7 ) 0.2 (0.4 ) Undistributed earnings on foreign assets held for sale 0.0 0.0 2.4 Other, net (0.4 ) 0.0 1.5 24.0 % 30.5 % 26.8 % |
Schedule Of Components Of Pretax Income | The components of pretax income are as follows (in thousands): Year ended January 31: 2017 2016 2015 United States $ 92,067 $ 195,219 $ 100,166 Foreign 164,694 187,199 139,018 $ 256,761 $ 382,418 $ 239,184 |
Schedule Of Significant Components Of Deferred Tax Liabilities And Assets | The significant components of the Company’s deferred tax liabilities and assets are as follows (in thousands): As of January 31: 2017 2016 Deferred tax liabilities: Depreciation and amortization $ 48,910 $ 53,939 Capitalized marketing program costs 7,525 6,547 Goodwill 7,581 8,545 Deferred costs currently deductible 4,110 5,415 Other, net 5,241 5,938 Total deferred tax liabilities 73,367 80,384 Deferred tax assets: Accrued liabilities 41,509 42,071 Loss carryforwards 92,338 103,647 Amortizable goodwill 2,191 5,315 Depreciation and amortization 4,547 6,502 Disallowed interest expense 6,249 5,140 Acquisition and transaction related costs 5,605 — Other, net 10,928 9,659 163,367 172,334 Less: valuation allowances (46,764 ) (60,165 ) Total deferred tax assets 116,603 112,169 Net deferred tax asset $ 43,236 $ 31,785 |
Reconciliation Of The Total Amount Of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amount of gross unrecognized tax benefits, excluding accrued interest and penalties, for the years ended January 31, 2017, 2016 and 2015 is as follows (in thousands): For the year ended January 31: 2017 2016 2015 Gross unrecognized tax benefits at beginning of period $ 12,989 $ 5,125 $ 5,859 Increases in tax positions for prior years 5,443 8,443 845 Decreases in tax positions for prior years (118 ) (348 ) (730 ) Increases in tax positions for current year 1,022 106 105 Expiration of statutes of limitation (292 ) (77 ) (63 ) Settlements (370 ) (104 ) — Changes due to translation of foreign currencies (369 ) (156 ) (891 ) Gross unrecognized tax benefits at end of period $ 18,305 $ 12,989 $ 5,125 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Restricted Stock Units Activity | A summary of the status of the Company’s RSU activity for the fiscal year ended January 31, 2017 is as follows: Shares Weighted-average grant date fair value Nonvested at January 31, 2016 496,329 $ 60.28 Granted (a) 240,658 78.42 Vested (187,133 ) 60.73 Canceled (44,772 ) 66.65 Nonvested at January 31, 2017 505,082 68.11 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Equity [Abstract] | |
Company's Common Share Repurchase And Issuance Activity | The Company’s common share repurchase and issuance activity for fiscal 2017 and 2016 is summarized as follows: Shares Weighted- average Treasury stock balance at January 31, 2015 21,866,069 $ 42.95 Shares of common stock repurchased under share repurchase program 2,497,029 58.87 Shares of treasury stock reissued (199,696 ) Treasury stock balance at January 31, 2016 24,163,402 44.59 Shares of treasury stock reissued (144,419 ) Treasury stock balance at January 31, 2017 24,018,983 $ 44.59 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
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: January 31, 2017 January 31, 2016 Fair value measurement category Fair value measurement category Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets Cash equivalents $ 1,000,010 $ — Foreign currency forward contracts $ 2,264 $ 3,412 Liabilities Foreign currency forward contracts $ 9,711 $ 2,274 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Lease Payments | Future minimum lease payments at January 31, 2017 , under all such leases, including minimum commitments under an agreement for data center services, for succeeding fiscal years and thereafter are as follows (in thousands): Fiscal year: 2018 $ 47,700 2019 40,900 2020 36,800 2021 33,800 2022 19,100 Thereafter 27,500 Total payments $ 205,800 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Segment Reporting Information | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information by geographic segment is as follows (in thousands): Year ended January 31: 2017 2016 2015 Net sales to unaffiliated customers: Americas (1) $ 10,384,523 $ 10,356,716 $ 10,406,209 Europe 15,850,353 16,023,067 17,264,423 Total $ 26,234,876 $ 26,379,783 $ 27,670,632 Operating income: Americas (2) (3) (4) $ 144,246 $ 235,577 $ 145,107 Europe (5) (6) (7) 161,603 180,741 136,196 Stock-based compensation expense (13,947 ) (14,890 ) (13,668 ) Total $ 291,902 $ 401,428 $ 267,635 Depreciation and amortization: Americas $ 18,844 $ 18,243 $ 16,653 Europe 35,593 39,010 52,093 Total $ 54,437 $ 57,253 $ 68,746 Capital expenditures: Americas $ 19,275 $ 18,139 $ 13,798 Europe 20,060 15,833 14,377 Total $ 39,335 $ 33,972 $ 28,175 As of January 31: 2017 2016 Identifiable assets: Americas $ 3,238,162 $ 2,078,443 Europe 4,693,704 4,279,845 Total $ 7,931,866 $ 6,358,288 Long-lived assets: Americas (1) $ 35,581 $ 29,402 Europe 38,658 36,626 Total $ 74,239 $ 66,028 Goodwill & acquisition-related intangible assets, net: Americas $ 33,296 $ 35,615 Europe 246,002 274,401 Total $ 279,298 $ 310,016 (1) Net sales to unaffiliated customers in the United States represented 90% , 90% and 85% of the total Americas' net sales to unaffiliated customers for the fiscal years ended January 31, 2017, 2016 and 2015 , respectively. Total long-lived assets in the United States represented 94% and 95% of the Americas' total long-lived assets at January 31, 2017 and 2016 , respectively. (2) Operating income in the Americas for the fiscal year ended January 31, 2017 includes acquisition and integration expenses of $18.0 million (see further discussion in Note 5 - Acquisitions) and a gain recorded in LCD settlements and other, net, of $4.1 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies ). (3) Operating income in the Americas for the fiscal year ended January 31, 2016 includes a gain recorded in LCD settlements and other, net, of $98.4 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies ). (4) Operating income in the Americas for the fiscal year ended January 31, 2015 includes a gain recorded in LCD settlements and other, net, of $5.1 million and restatement and remediation related expenses of $4.0 million (see Note 1 – Business and Summary of Significant Accounting Policies ). (5) Operating income in Europe for the fiscal year ended January 31, 2017 includes acquisition and integration expenses of $11.0 million (see further discussion in Note 5 - Acquisitions) and an increase in the accrual for assessments and penalties for a VAT matter in the Company's subsidiary in Spain of $1.5 million (see further discussion in Note 13 - Commitments and Contingencies). (6) Operating income in Europe for the fiscal year ended January 31, 2016 includes a net benefit of $8.8 million related to various VAT matters in two European subsidiaries (see further discussion in Note 13 – Commitments and Contingencies ). (7) Operating income in Europe for the fiscal year ended January 31, 2015 includes restatement and remediation related expenses of $18.1 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies ) and a decrease in the accrual for value added tax matters in the Company's Spanish subsidiary of $6.2 million (see further discussion in Note 13 – Commitments and Contingencies ). |
Interim Financial Information39
Interim Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Interim Financial Information | Interim financial information for fiscal years 2017 and 2016 is as follows (in thousands, except per share amounts): Fiscal year 2017: Quarter ended: April 30 (1) July 31 (1)(2) October 31 (2) January 31 (2)(3) Net sales $ 5,963,362 $ 6,353,739 $ 6,490,265 $ 7,427,510 Gross profit 298,611 316,450 315,839 371,027 Operating income 52,558 73,355 62,872 103,117 Net income $ 33,373 $ 46,394 $ 36,506 $ 78,822 Earnings per share: Basic $ 0.95 $ 1.32 $ 1.04 $ 2.24 Diluted $ 0.94 $ 1.31 $ 1.03 $ 2.22 Fiscal year 2016: Quarter ended: April 30 (4) July 31 (4)(5) October 31 (4) January 31 (4)(5) Net sales $ 5,887,229 $ 6,580,393 $ 6,428,540 $ 7,483,621 Gross profit 291,889 325,279 314,844 354,649 Operating income 81,938 106,235 68,053 145,202 Net income $ 51,277 $ 76,412 $ 41,900 $ 96,147 Earnings per share: Basic $ 1.39 $ 2.09 $ 1.19 $ 2.74 Diluted $ 1.38 $ 2.09 $ 1.18 $ 2.72 (1) During the first and second quarters of fiscal 2017, the Company recorded a gain of $0.4 million and $3.7 million , respectively, in LCD settlements and other, net (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies). (2) During the second, third and fourth quarters of fiscal 2017, the Company recorded $2.0 million , $13.0 million and $14.0 million of acquisition and integration expenses, respectively (see further discussion in Note 5 - Acquisitions). (3) The Company recorded an income tax benefit of $12.5 million in the fourth quarter of fiscal 2017 primarily related to the reversal of deferred tax valuation allowances in certain jurisdictions in Europe. (4) During the first, second, third and fourth quarters of fiscal 2016, the Company recorded a gain of $38.5 million , $21.5 million , $3.0 million and $35.4 million , respectively, in LCD Settlements and other, net (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies ). (5) The Company recorded a net benefit of $9.6 million in the second quarter and an expense of $0.8 million in the fourth quarter of fiscal 2016 related to various VAT matters in two European subsidiaries (see further discussion in Note 13 – Commitments and Contingencies ). |
Business and Summary of Signi40
Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Jan. 31, 2017 | |
Business and Summary of Significant Accounting Policies | |
Product Warranty Period | 2 years |
Capitalized software and development costs | Maximum | |
Business and Summary of Significant Accounting Policies | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Capitalized software and development costs | Minimum | |
Business and Summary of Significant Accounting Policies | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Business and Summary of Signi41
Business and Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Jan. 31, 2017 | |
Building and Building Improvements | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 15 years |
Building and Building Improvements | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 39 years |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture and Fixtures | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 10 years |
Business and Summary of Signi42
Business and Summary of Significant Accounting Policies (Vendor Concentrations) (Details) | 12 Months Ended | ||
Jan. 31, 2017Rate | Jan. 31, 2016Rate | Jan. 31, 2015Rate | |
Apple, Inc. | |||
Concentration Risk | |||
Concentration Risk, Percentage | 20.00% | 20.00% | 15.00% |
HP Inc. | |||
Concentration Risk | |||
Concentration Risk, Percentage | 13.00% | ||
Hewlett-Packard Company | |||
Concentration Risk | |||
Concentration Risk, Percentage | 13.00% | 19.00% | |
Cisco Systems, Inc. | |||
Concentration Risk | |||
Concentration Risk, Percentage | 10.00% |
Business and Summary of Signi43
Business and Summary of Significant Accounting Policies (Value Added Taxes) (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Jan. 31, 2016 |
Value Added Tax | ||
Value Added Tax Payable | $ 209.6 | $ 197.7 |
Value Added Tax Receivable | $ 29.1 | $ 27.8 |
Business and Summary of Signi44
Business and Summary of Significant Accounting Policies (Unusual or Infrequent Items) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Unusual or Infrequent Item | |||||||||
Restatement and remediation related expenses | $ 0 | $ 829 | $ 22,043 | ||||||
Gain (Loss) Related to Litigation Settlement | $ 3,700 | $ 400 | $ 35,400 | $ 3,000 | $ 21,500 | $ 38,500 | $ 4,142 | $ 98,433 | $ 5,059 |
Business and Summary of Signi45
Business and Summary of Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Business and Summary of Significant Accounting Policies | |||
Accounts Receivable Sold To and Held by Financial Institutions | $ 506.7 | $ 554.2 | |
Sale of Accounts Receivable, Discount Fees | $ 6.1 | $ 4.4 | $ 4.4 |
Earnings Per Share ("EPS") (Det
Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share (EPS) [Abstract] | |||||||||||
Net income | $ 78,822 | $ 36,506 | $ 46,394 | $ 33,373 | $ 96,147 | $ 41,900 | $ 76,412 | $ 51,277 | $ 195,095 | $ 265,736 | $ 175,172 |
Weighted average common shares - basic | 35,194,000 | 35,898,000 | 38,172,000 | ||||||||
Equity-based awards | 234,000 | 199,000 | 182,000 | ||||||||
Weighted average common shares - diluted | 35,428,000 | 36,097,000 | 38,354,000 | ||||||||
Basic | $ 2.24 | $ 1.04 | $ 1.32 | $ 0.95 | $ 2.74 | $ 1.19 | $ 2.09 | $ 1.39 | $ 5.54 | $ 7.40 | $ 4.59 |
Diluted | $ 2.22 | $ 1.03 | $ 1.31 | $ 0.94 | $ 2.72 | $ 1.18 | $ 2.09 | $ 1.38 | $ 5.51 | $ 7.36 | $ 4.57 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,191 | 0 | 0 |
Property And Equipment, Net (Pr
Property And Equipment, Net (Property And Equipment, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Property, Plant and Equipment | |||
Property and equipment, gross | $ 342,054 | $ 356,196 | |
Less: accumulated depreciation | (267,815) | (290,168) | |
Property and equipment, net, total | 74,239 | 66,028 | |
Depreciation expense | 16,200 | 16,300 | $ 19,200 |
Land | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 3,957 | 3,977 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment | |||
Property and equipment, gross | 69,065 | 68,377 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment | |||
Property and equipment, gross | $ 269,032 | $ 283,842 |
Goodwill And Intangible Asset48
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Goodwill And Intangible Assets | |||
Capitalized intangible assets | $ 14.6 | $ 29.2 | $ 10.4 |
Amortization expense | $ 38.2 | $ 41 | $ 49.5 |
Goodwill And Intangible Asset49
Goodwill And Intangible Assets (Schedule Of Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2017USD ($) | |
Goodwill | |
Balance as of February 1, 2016 | $ 204,114 |
Goodwill acquired during the year | 2,671 |
Foreign currency translation adjustment | (7,764) |
Balance as of January 31, 2017 | 199,021 |
Americas | |
Goodwill | |
Balance as of February 1, 2016 | 19,559 |
Goodwill acquired during the year | 0 |
Foreign currency translation adjustment | 0 |
Balance as of January 31, 2017 | 19,559 |
Europe | |
Goodwill | |
Balance as of February 1, 2016 | 184,555 |
Goodwill acquired during the year | 2,671 |
Foreign currency translation adjustment | (7,764) |
Balance as of January 31, 2017 | $ 179,462 |
Goodwill And Intangible Asset50
Goodwill And Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Finite-Lived Intangible Assets | ||
Gross carrying amount | $ 536,540 | $ 536,498 |
Accumulated amortization | 405,864 | 377,112 |
Net book value | 130,676 | 159,386 |
Capitalized software and development costs | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 320,113 | 308,926 |
Accumulated amortization | 269,872 | 256,145 |
Net book value | 50,241 | 52,781 |
Customer and Vendor Relationship | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 175,872 | 184,894 |
Accumulated amortization | 107,267 | 95,865 |
Net book value | 68,605 | 89,029 |
Other intangible assets | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 40,555 | 42,678 |
Accumulated amortization | 28,725 | 25,102 |
Net book value | $ 11,830 | $ 17,576 |
Goodwill And Intangible Asset51
Goodwill And Intangible Assets (Schedule Of Estimated Amortization Expense) (Details) $ in Thousands | Jan. 31, 2017USD ($) |
Finite-Lived Intangible Assets | |
2,018 | $ 35,345 |
2,019 | 27,949 |
2,020 | 19,013 |
2,021 | 16,849 |
2,022 | 14,380 |
Capitalized software and development costs | |
Finite-Lived Intangible Assets | |
2,018 | 16,254 |
2,019 | 11,998 |
2,020 | 7,427 |
2,021 | 5,577 |
2,022 | 3,706 |
Other intangible assets | |
Finite-Lived Intangible Assets | |
2,018 | 19,091 |
2,019 | 15,951 |
2,020 | 11,586 |
2,021 | 11,272 |
2,022 | $ 10,674 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - STG - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jun. 01, 2015 | |
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 14.5 | ||
Business Combination, Consideration Transferred | $ 27.8 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Tangible Assets | 0.3 | ||
Goodwill, Gross | 14.1 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 1.1 | ||
Maximum | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Acquisitions (TS Acquisition) (
Acquisitions (TS Acquisition) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Acquisition and integration expenses [Line Items] | ||||||
Business Combination, Acquisition Related Costs | $ 14,000 | $ 13,000 | $ 2,000 | $ 28,966 | $ 0 | $ 0 |
Other Expense [Member] | TS | ||||||
Acquisition and integration expenses [Line Items] | ||||||
Business Combination, Acquisition Related Costs | 2,545 | |||||
Professional Services [Member] | TS | ||||||
Acquisition and integration expenses [Line Items] | ||||||
Business Combination, Acquisition Related Costs | 14,338 | |||||
Transaction Related Costs [Member] | TS | ||||||
Acquisition and integration expenses [Line Items] | ||||||
Business Combination, Acquisition Related Costs | $ 12,083 |
Loss on Disposal of Subsidiar54
Loss on Disposal of Subsidiaries Loss on Disposal of Subsidiaries (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Loss on Disposal of Subsidiaries [Abstract] | |||
Loss on disposal of subsidiaries | $ 0 | $ 699 | $ 1,330 |
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 5,598 |
Loss on Disposal of Subsidiar55
Loss on Disposal of Subsidiaries Loss on Disposal of Subsidiaries (Assets and Liabilities Held for Sale) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 0 | $ 0 | $ 4,247 |
Debt (Components Of Debt) (Deta
Debt (Components Of Debt) (Details) - USD ($) | Jan. 31, 2017 | Jan. 31, 2016 | Sep. 30, 2012 |
Debt Instrument | |||
Debt and capital lease obligations | $ 1,363,047,000 | $ 366,671,000 | |
Less-current maturities (included as Revolving credit loans and current portion of long-term debt, net) | (373,123,000) | (18,063,000) | |
Long-term debt | 989,924,000 | 348,608,000 | |
Senior Notes | |||
Debt Instrument | |||
Unamortized debt discount and debt issuance costs | (10,633,000) | 1,392,000 | |
Senior notes, net | 1,339,367,000 | 348,608,000 | |
Other Committed And Uncommitted Revolving Credit Facilities | |||
Debt Instrument | |||
Revolving credit loan | $ 23,680,000 | $ 18,063,000 | |
Line of Credit Facility, Interest Rate at Period End | 8.35% | 5.26% | |
3.75% Senior Notes | Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 |
3.70% Senior Notes | Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | 500,000,000 | 0 | |
4.95% Senior Notes | Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | $ 500,000,000 | $ 0 |
Debt (Senior Notes) (Narrative)
Debt (Senior Notes) (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Sep. 30, 2012 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Debt Instrument | |||||
Payments of Debt Issuance Costs | $ 21,581,000 | $ 0 | $ 0 | ||
Senior Notes | 2017 Senior Notes | |||||
Debt Instrument | |||||
Proceeds from Issuance of Long-term Debt | $ 989,900,000 | ||||
Debt Instrument, Unamortized Discount | 1,600,000 | 1,600,000 | |||
Debt Issuance Costs, Gross | $ 8,500,000 | $ 8,500,000 | |||
Senior Notes | 4.95% Senior Notes | |||||
Debt Instrument | |||||
Debt Instrument, Redemption Price, Discounted Scheduled Payments, Discount Rate, Basis Spread on Variable Rate | 0.40% | 0.40% | |||
Debt Instrument, Maturity Date | Feb. 15, 2027 | ||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.95% | 4.95% | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Senior Notes | 3.70% Senior Notes | |||||
Debt Instrument | |||||
Debt Instrument, Redemption Price, Discounted Scheduled Payments, Discount Rate, Basis Spread on Variable Rate | 0.30% | 0.30% | |||
Debt Instrument, Maturity Date | Feb. 15, 2022 | ||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | 3.70% | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Senior Notes | 2012 Senior Notes | |||||
Debt Instrument | |||||
Proceeds from Issuance of Long-term Debt | $ 345,800,000 | ||||
Debt Instrument, Unamortized Discount | 1,300,000 | ||||
Payments of Debt Issuance Costs | $ 2,900,000 | ||||
Senior Notes | 3.75% Senior Notes | |||||
Debt Instrument | |||||
Debt Instrument, Redemption Price, Discounted Scheduled Payments, Discount Rate, Basis Spread on Variable Rate | 0.50% | ||||
Debt Instrument, Maturity Date | Sep. 21, 2017 | ||||
Debt Instrument, Face Amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% |
Debt (Other Facilities) (Narrat
Debt (Other Facilities) (Narrative) (Details) - USD ($) | Jan. 31, 2017 | Nov. 02, 2016 | Jan. 31, 2016 |
Line of Credit Facility | |||
Accounts Receivable, Net, Current | $ 3,047,927,000 | $ 2,995,114,000 | |
Line of Credit, Current | 23,700,000 | ||
Standby Letters Of Credit | 30,200,000 | ||
Line of Credit Facility, Current Borrowing Capacity | 1,029,900,000 | ||
Other Committed And Uncommitted Revolving Credit Facilities | |||
Line of Credit Facility | |||
Line of Credit Facility, Maximum Borrowing Capacity | 251,400,000 | ||
Line of Credit, Current | $ 23,700,000 | $ 18,100,000 | |
Line of Credit Facility, Interest Rate at Period End | 8.35% | 5.26% | |
Receivables Securitization Program | |||
Line of Credit Facility | |||
Line of Credit, Amount Outstanding | $ 0 | $ 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | 400,000,000 | ||
Accounts Receivable, Net, Current | 748,600,000 | $ 721,100,000 | |
Credit Agreement | |||
Line of Credit Facility | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | ||
Line Of Credit Facility Possible Future Increase To Maximum Borrowing Capacity | $ 1,250,000,000 | ||
3 year maturity | Term loan credit agreement | |||
Line of Credit Facility | |||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 250,000,000 | ||
5 year maturity | Term loan credit agreement | |||
Line of Credit Facility | |||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 750,000,000 |
Debt Debt (Bridge Loan Facility
Debt Debt (Bridge Loan Facility) (Details) - Bridge Loan - TS - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2017 | Sep. 19, 2016 | |
Bridge Facility [Line Items] | ||
Debt Instrument Unused Commitment | $ 300 | $ 3,100 |
Payments of Merger Related Costs, Financing Activities | 15.3 | |
Amortization of acquisition-related financing expenses | $ 11.1 |
Debt Debt (Schedule Of Future P
Debt Debt (Schedule Of Future Payments Of Debt) (Details) | Jan. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 373,680,000 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 1,000,000,000 |
Total principal payments | $ 1,373,680,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Contingency | |||
Reversal of valuation allowance | $ 13,400 | $ 11,300 | |
Foreign net operating loss carryforwards | 432,800 | 482,300 | |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 12,500 | $ 10,100 | $ 5,100 |
Unrecognized tax benefits that have a reasonable possibility of significantly decreasing within the 12 months | 4,800 | ||
Undistributed Earnings of Foreign Subsidiaries | 776,900 | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 5,598 | ||
Europe | |||
Income Tax Contingency | |||
Reversal of valuation allowance | $ 12,500 | $ 19,200 |
Income Taxes (Schedule Of Signi
Income Taxes (Schedule Of Significant Components Of The Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Current: | |||
Federal | $ 37,724 | $ 71,502 | $ 32,988 |
State | 4,030 | 5,989 | 1,626 |
Foreign | 30,914 | 36,804 | 29,733 |
Total current | 72,668 | 114,295 | 64,347 |
Deferred: | |||
Federal | (8,380) | (3,984) | 6,391 |
State | (799) | 543 | 281 |
Foreign | (1,823) | 5,828 | (7,007) |
Total deferred | (11,002) | 2,387 | (335) |
Provision for income taxes | $ 61,666 | $ 116,682 | $ 64,012 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 0.80% | 1.10% | 0.50% |
Net changes in deferred tax valuation allowances | (3.40%) | 0.00% | (4.50%) |
Tax on foreign earnings different than U.S. rate | (9.90%) | (7.40%) | (11.80%) |
Nondeductible interest | 2.10% | 1.60% | 4.00% |
Reserve established for foreign income tax contingencies | 0.50% | 0.00% | 0.10% |
Effect of company-owned life insurance | (0.70%) | 0.20% | (0.40%) |
Undistributed earnings on foreign assets held for sale | 0.00% | 0.00% | 2.40% |
Other, net | (0.40%) | 0.00% | 1.50% |
Effective tax rate | 24.00% | 30.50% | 26.80% |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of Pretax Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 92,067 | $ 195,219 | $ 100,166 |
Foreign | 164,694 | 187,199 | 139,018 |
Income before income taxes | $ 256,761 | $ 382,418 | $ 239,184 |
Income Taxes (Schedule Of Sig65
Income Taxes (Schedule Of Significant Components Of Deferred Tax Liabilities And Assets) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Depreciation and amortization | $ 48,910 | $ 53,939 |
Capitalized marketing program costs | 7,525 | 6,547 |
Goodwill | 7,581 | 8,545 |
Deferred costs currently deductible | 4,110 | 5,415 |
Other, net | 5,241 | 5,938 |
Total deferred tax liabilities | 73,367 | 80,384 |
Accrued liabilities | 41,509 | 42,071 |
Loss carryforwards | 92,338 | 103,647 |
Amortizable goodwill | 2,191 | 5,315 |
Depreciation and amortization | 4,547 | 6,502 |
Disallowed interest expense | 6,249 | 5,140 |
Acquisition and transaction related costs | 5,605 | 0 |
Other, net | 10,928 | 9,659 |
Deferred tax assets, gross, total | 163,367 | 172,334 |
Less: valuation allowances | (46,764) | (60,165) |
Total deferred tax assets | 116,603 | 112,169 |
Net deferred tax asset | $ 43,236 | $ 31,785 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The Total Amount Of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Gross unrecognized tax benefits at beginning of period | $ 12,989 | $ 5,125 | $ 5,859 |
Increases in tax positions for prior years | 5,443 | 8,443 | 845 |
Decreases in tax positions for prior years | (118) | (348) | (730) |
Increases in tax positions for current year | 1,022 | 106 | 105 |
Expiration of statutes of limitation | (292) | (77) | (63) |
Settlements | (370) | (104) | 0 |
Changes due to translation of foreign currencies | (369) | (156) | (891) |
Gross unrecognized tax benefits at end of period | $ 18,305 | $ 12,989 | $ 5,125 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares authorized for grant | 4,000,000 | |||
Number of shares available for grant | 2,200,000 | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Contractual Terms | 10 years | |||
Stock-based compensation expense | $ 13,947,000 | $ 14,890,000 | $ 13,668,000 | |
Stock-based compensation expense, related income tax benefits | 4,600,000 | 4,600,000 | 4,200,000 | |
Cash received from equity-based incentives exercised | 0 | 600,000 | 1,500,000 | |
Tax deduction from the exercise of equity-based incentives | 4,800,000 | 5,200,000 | 5,200,000 | |
RSU compensation expense | $ 13,700,000 | $ 14,800,000 | $ 13,600,000 | |
Weighted-average grant date fair value, Granted | $ 78.42 | $ 59.30 | $ 61.06 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 505,082 | 496,329 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeited And Canceled In Period | 44,772 | |||
Awards vesting period, (in years) | 3 years | |||
Total fair value of equity instruments other than options which vested | $ 11,400,000 | $ 15,400,000 | $ 8,100,000 | |
Equity instruments other than options, granted during period | 240,658 | [1] | 275,539 | 455,806 |
Unrecognized stock-based compensation expense | $ 16,800,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 187,133 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Equity instruments other than options, granted during period | 18,563 | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Common stock shares authorized under ESPP | 1,000,000 | |||
Purchase price as a percentage of the market value | 85.00% | |||
Maximum annual fair market value per employee | $ 25,000 | |||
Common stock shares issued to ESPP | 512,540 | |||
ESPP, holding period for shares purchased | 1 year | |||
Retirement Savings Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Percentage of employer's matching contribution | 50.00% | |||
Maximum percentage of participant's deferrals matched by Company | 6.00% | |||
401(k) Savings Plan vesting period (years) | 4 years | |||
Company's contribution to 401(k) | $ 3,100,000 | $ 2,800,000 | $ 100,000 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Awards vesting period, (in years) | 1 year | |||
Minimum | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Awards vesting period, (in years) | 1 year | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Awards vesting period, (in years) | 3 years | |||
Maximum | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Awards vesting period, (in years) | 3 years | |||
[1] | (a) Includes 18,563 shares of performance-based restricted stock units, which assumes maximum achievement. |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule Of Restricted Stock Units Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||
Weighted-average grant date fair value, Outstanding at January 31, 2016 | $ 60.28 | |||
Weighted-average grant date fair value, Granted | 78.42 | $ 59.30 | $ 61.06 | |
Weighted-average grant date fair value, Vested | 60.73 | |||
Weighted-average grant date fair value, Canceled | 66.65 | |||
Weighted-average grant date fair value, Outstanding at January 31, 2017 | $ 68.11 | $ 60.28 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 11.4 | $ 15.4 | $ 8.1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | ||||
Shares, Outstanding at January 31, 2016 | 496,329 | |||
Shares, Granted | 240,658 | [1] | 275,539 | 455,806 |
Shares, Vested | (187,133) | |||
Shares, Canceled | (44,772) | |||
Shares, Outstanding at January 31, 2017 | 505,082 | 496,329 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | ||||
Shares, Granted | 18,563 | |||
[1] | (a) Includes 18,563 shares of performance-based restricted stock units, which assumes maximum achievement. |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary Of The Status Of Stock-Based Equity Incentives Outstanding) (Details) | 12 Months Ended |
Jan. 31, 2017 | |
Employee Stock Purchase Plan | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Employee Stock Purchase Plan, Holding Period For Shares Purchased | 1 year |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ in Millions | Jan. 31, 2017USD ($) |
December 2014 Program | |
Equity, Class of Treasury Stock | |
Share repurchase authorized amount | $ 100 |
June 2015 Program | |
Equity, Class of Treasury Stock | |
Share repurchase authorized amount | $ 100 |
Shareholders' Equity (Company's
Shareholders' Equity (Company's Common Share Repurchase And Issuance Activity) (Details) - $ / shares | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Increase (Decrease) in Treasury Stock | ||
Treasury stock, beginning balance, Shares | 24,163,402 | 21,866,069 |
Shares of common stock repurchased under share repurchase program | 2,497,029 | |
Shares of treasury stock reissued | (144,419) | (199,696) |
Treasury stock, ending balance, Shares | 24,018,983 | 24,163,402 |
Treasury stock, beginning balance, Weighted-average price per share | $ 44.59 | $ 42.95 |
Shares of common stock repurchased under share repurchase programs, Weighted-average price per share | 58.87 | |
Treasury stock, ending balance, Weighted-average price per share | $ 44.59 | $ 44.59 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Senior Notes | ||
Liabilities, Fair Value Disclosure | ||
Convertible debt, fair value disclosures | $ 1,354,000 | |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,000,010 | $ 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure | ||
Foreign currency forward contracts | 2,264 | 3,412 |
Liabilities, Fair Value Disclosure | ||
Foreign currency forward contracts | $ 9,711 | $ 2,274 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Deferred Compensation Plan) (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Jan. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life insurance investments | $ 35.2 | $ 30.2 |
Deferred compensation plan liabilities | $ 35.3 | $ 30.5 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Net foreign currency loss | $ 4.3 | $ (9) | $ (18.8) |
Notional amount of derivative financial instruments outstanding | $ 600 | $ 600 | $ 700 |
Average maturities of derivatives, days | 29 days | 30 days | 32 days |
Commitments And Contingencies75
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Loss Contingencies | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 3,700 | $ 4,600 | |
Value added tax assessments | 1,049 | (8,796) | $ (6,229) |
Europe | Spain | |||
Loss Contingencies | |||
Value added tax payable | 7,300 | ||
Value added tax assessments | 1,500 | (6,229) | |
Europe | Spain | Value added tax assessment | |||
Loss Contingencies | |||
Loss Contingency Accrual, Period Increase (Decrease) | 1,500 | (16,400) | |
Europe | Spain | Interest Expense | |||
Loss Contingencies | |||
Loss Contingency Accrual, Period Increase (Decrease) | 1,100 | (9,000) | |
Loss Contingency Accrual, Payments | 12,300 | ||
Europe | Spain | Accrued expenses and other liabilities | |||
Loss Contingencies | |||
Loss Contingency Accrual, Period Increase (Decrease) | 2,600 | (25,400) | (6,229) |
Americas | Brazil | Accrued expenses and other liabilities | |||
Loss Contingencies | |||
CIDE tax | 22,800 | ||
Operating Leases | |||
Loss Contingencies | |||
Rental expense for operating leases | 53,000 | $ 45,300 | $ 52,800 |
2013 Synthetic Lease | |||
Loss Contingencies | |||
Residual value guarantee, aggregate amount | 133,800 | ||
Future annual lease payments | $ 3,400 |
Commitments And Contingencies76
Commitments And Contingencies (Schedule Of Future Minimum Lease Payments) (Details) $ in Thousands | Jan. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 47,700 |
2,019 | 40,900 |
2,020 | 36,800 |
2,021 | 33,800 |
2,022 | 19,100 |
Thereafter | 27,500 |
Total payments | $ 205,800 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |||||
Segment Reporting Information | |||||||||||||||
Net sales to unaffiliated customers: | $ 7,427,510 | $ 6,490,265 | $ 6,353,739 | $ 5,963,362 | $ 7,483,621 | $ 6,428,540 | $ 6,580,393 | $ 5,887,229 | $ 26,234,876 | $ 26,379,783 | $ 27,670,632 | ||||
Stock-based compensation expense | (13,947) | (14,890) | (13,668) | ||||||||||||
Operating income: | 103,117 | 62,872 | 73,355 | 52,558 | 145,202 | 68,053 | 106,235 | 81,938 | 291,902 | 401,428 | 267,635 | ||||
Depreciation and amortization: | 54,437 | 57,253 | 68,746 | ||||||||||||
Capital expenditures: | 39,335 | 33,972 | 28,175 | ||||||||||||
Identifiable assets: | 7,931,866 | 6,358,288 | 7,931,866 | 6,358,288 | |||||||||||
Long-lived assets: | 74,239 | 66,028 | 74,239 | 66,028 | |||||||||||
Goodwill & acquisition-related intangible assets, net: | 279,298 | 310,016 | 279,298 | 310,016 | |||||||||||
Business Combination, Acquisition Related Costs | 14,000 | $ 13,000 | 2,000 | 28,966 | 0 | 0 | |||||||||
LCD settlements and other, net | $ (3,700) | $ (400) | (35,400) | $ (3,000) | $ (21,500) | $ (38,500) | (4,142) | (98,433) | (5,059) | ||||||
Value added tax assessments | 1,049 | (8,796) | (6,229) | ||||||||||||
Restatement and remediation related expenses | 0 | 829 | 22,043 | ||||||||||||
Americas | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Net sales to unaffiliated customers: | [1] | 10,384,523 | 10,356,716 | 10,406,209 | |||||||||||
Operating income: | 144,246 | [2] | 235,577 | [3] | 145,107 | [4] | |||||||||
Depreciation and amortization: | $ 18,844 | $ 18,243 | $ 16,653 | ||||||||||||
Sales to Unaffiliated Customers, as Percentage of Total Sales | 90.00% | 90.00% | 85.00% | ||||||||||||
Capital expenditures: | $ 19,275 | $ 18,139 | $ 13,798 | ||||||||||||
Identifiable assets: | 3,238,162 | 2,078,443 | 3,238,162 | 2,078,443 | |||||||||||
Long-lived assets: | [1] | 35,581 | 29,402 | 35,581 | 29,402 | ||||||||||
Goodwill & acquisition-related intangible assets, net: | $ 33,296 | $ 35,615 | $ 33,296 | $ 35,615 | |||||||||||
Long-lived Assets, as Percentage of Total Assets | 94.00% | 95.00% | 94.00% | 95.00% | |||||||||||
Business Combination, Acquisition Related Costs | $ 18,000 | ||||||||||||||
LCD settlements and other, net | (4,100) | $ (98,433) | (5,100) | ||||||||||||
Restatement and remediation related expenses | 4,000 | ||||||||||||||
Europe | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Net sales to unaffiliated customers: | 15,850,353 | 16,023,067 | 17,264,423 | ||||||||||||
Operating income: | 161,603 | [5] | 180,741 | [6] | 136,196 | [7] | |||||||||
Depreciation and amortization: | 35,593 | 39,010 | 52,093 | ||||||||||||
Capital expenditures: | 20,060 | 15,833 | 14,377 | ||||||||||||
Identifiable assets: | $ 4,693,704 | $ 4,279,845 | 4,693,704 | 4,279,845 | |||||||||||
Long-lived assets: | 38,658 | 36,626 | 38,658 | 36,626 | |||||||||||
Goodwill & acquisition-related intangible assets, net: | $ 246,002 | $ 274,401 | 246,002 | 274,401 | |||||||||||
Europe | Spain | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Business Combination, Acquisition Related Costs | 11,000 | ||||||||||||||
Value added tax assessments | $ 1,500 | (6,229) | |||||||||||||
Restatement and remediation related expenses | $ 18,100 | ||||||||||||||
Europe | Value added tax assessment | European Subsidiary | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Value added tax assessments | $ (8,800) | ||||||||||||||
[1] | Net sales to unaffiliated customers in the United States represented 90%, 90% and 85% of the total Americas' net sales to unaffiliated customers for the fiscal years ended January 31, 2017, 2016 and 2015, respectively. Total long-lived assets in the United States represented 94% and 95% of the Americas' total long-lived assets at January 31, 2017 and 2016, respectively. | ||||||||||||||
[2] | Operating income in the Americas for the fiscal year ended January 31, 2017 includes acquisition and integration expenses of $18.0 million (see further discussion in Note 5 - Acquisitions) and a gain recorded in LCD settlements and other, net, of $4.1 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies). | ||||||||||||||
[3] | Operating income in the Americas for the fiscal year ended January 31, 2016 includes a gain recorded in LCD settlements and other, net, of $98.4 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies). | ||||||||||||||
[4] | Operating income in the Americas for the fiscal year ended January 31, 2015 includes a gain recorded in LCD settlements and other, net, of $5.1 million and restatement and remediation related expenses of $4.0 million (see Note 1 – Business and Summary of Significant Accounting Policies). | ||||||||||||||
[5] | Operating income in Europe for the fiscal year ended January 31, 2017 includes acquisition and integration expenses of $11.0 million (see further discussion in Note 5 - Acquisitions) and an increase in the accrual for assessments and penalties for a VAT matter in the Company's subsidiary in Spain of $1.5 million (see further discussion in Note 13 - Commitments and Contingencies). | ||||||||||||||
[6] | Operating income in Europe for the fiscal year ended January 31, 2016 includes a net benefit of $8.8 million related to various VAT matters in two European subsidiaries (see further discussion in Note 13 – Commitments and Contingencies). | ||||||||||||||
[7] | Operating income in Europe for the fiscal year ended January 31, 2015 includes restatement and remediation related expenses of $18.1 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies) and a decrease in the accrual for value added tax matters in the Company's Spanish subsidiary of $6.2 million (see further discussion in Note 13 – Commitments and Contingencies). |
Interim Financial Information78
Interim Financial Information (Unaudited) (Condensed Income Statement)(Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | ||||
Condensed Financial Statements, Captions | ||||||||||||||
Net sales | $ 7,427,510 | $ 6,490,265 | $ 6,353,739 | $ 5,963,362 | $ 7,483,621 | $ 6,428,540 | $ 6,580,393 | $ 5,887,229 | $ 26,234,876 | $ 26,379,783 | $ 27,670,632 | |||
Gross profit | 371,027 | 315,839 | 316,450 | 298,611 | 354,649 | 314,844 | 325,279 | 291,889 | 1,301,927 | 1,286,661 | 1,393,954 | |||
Operating income | 103,117 | 62,872 | 73,355 | 52,558 | 145,202 | 68,053 | 106,235 | 81,938 | 291,902 | 401,428 | 267,635 | |||
Net income | 78,822 | 36,506 | 46,394 | 33,373 | 96,147 | 41,900 | 76,412 | 51,277 | 195,095 | 265,736 | 175,172 | |||
Gain (Loss) Related to Litigation Settlement | 3,700 | $ 400 | $ 35,400 | $ 3,000 | $ 21,500 | $ 38,500 | 4,142 | 98,433 | 5,059 | |||||
Business Combination, Acquisition Related Costs | $ 14,000 | $ 13,000 | $ 2,000 | 28,966 | 0 | 0 | ||||||||
Value added tax assessments | $ 1,049 | $ (8,796) | $ (6,229) | |||||||||||
Earnings per share: | ||||||||||||||
Basic | $ 2.24 | $ 1.04 | $ 1.32 | $ 0.95 | $ 2.74 | $ 1.19 | $ 2.09 | $ 1.39 | $ 5.54 | $ 7.40 | $ 4.59 | |||
Diluted | $ 2.22 | $ 1.03 | $ 1.31 | $ 0.94 | $ 2.72 | $ 1.18 | $ 2.09 | $ 1.38 | $ 5.51 | $ 7.36 | $ 4.57 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (13,400) | $ (11,300) | ||||||||||||
European Subsidiary | Value added tax assessment | ||||||||||||||
Condensed Financial Statements, Captions | ||||||||||||||
Value added tax assessments | $ 800 | $ (9,600) | 7,600 | |||||||||||
Europe | ||||||||||||||
Condensed Financial Statements, Captions | ||||||||||||||
Net sales | 15,850,353 | 16,023,067 | $ 17,264,423 | |||||||||||
Operating income | 161,603 | [1] | $ 180,741 | [2] | 136,196 | [3] | ||||||||
Earnings per share: | ||||||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (12,500) | $ (19,200) | ||||||||||||
[1] | Operating income in Europe for the fiscal year ended January 31, 2017 includes acquisition and integration expenses of $11.0 million (see further discussion in Note 5 - Acquisitions) and an increase in the accrual for assessments and penalties for a VAT matter in the Company's subsidiary in Spain of $1.5 million (see further discussion in Note 13 - Commitments and Contingencies). | |||||||||||||
[2] | Operating income in Europe for the fiscal year ended January 31, 2016 includes a net benefit of $8.8 million related to various VAT matters in two European subsidiaries (see further discussion in Note 13 – Commitments and Contingencies). | |||||||||||||
[3] | Operating income in Europe for the fiscal year ended January 31, 2015 includes restatement and remediation related expenses of $18.1 million (see further discussion in Note 1 – Business and Summary of Significant Accounting Policies) and a decrease in the accrual for value added tax matters in the Company's Spanish subsidiary of $6.2 million (see further discussion in Note 13 – Commitments and Contingencies). |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | 1 Months Ended | |
Feb. 28, 2017 | Feb. 27, 2017 | |
Subsequent Event | ||
Debt Instrument, Face Amount | $ 1,000 | |
Term loan credit agreement | 3 year maturity | ||
Subsequent Event | ||
Debt Instrument, Face Amount | 250 | |
Term loan credit agreement | 5 year maturity | ||
Subsequent Event | ||
Debt Instrument, Face Amount | $ 750 | |
TS | ||
Subsequent Event | ||
Business Acquisition, Effective Date of Acquisition | Feb. 27, 2017 | |
Business Combination, Consideration Transferred | $ 2,672 | |
Payments to Acquire Businesses, Gross | $ 2,425 | |
Business Acquisition, Expected Equity Interest Issue, Number of Shares | 2,785,402 | |
Other Significant Noncash Transaction, Value of Consideration Given | $ 247 |
Schedule II Valuation And Qua80
Schedule II Valuation And Qualifying Accounts (Details) - Allowance for Doubtful Accounts Receivable and Sales Returns - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 45,875 | $ 50,143 | $ 58,754 |
Charged to cost and expenses | 5,026 | 6,061 | 10,415 |
Deductions | (16,596) | (13,797) | (25,083) |
Other | 4,462 | 3,468 | 6,057 |
Balance at end of period | $ 38,767 | $ 45,875 | $ 50,143 |