Document And Entity Information
Document And Entity Information - $ / shares | 3 Months Ended | ||
Apr. 30, 2019 | May 30, 2019 | Jan. 31, 2019 | |
Document and Entity Information [Abstract] | |||
Common Stock, Par or Stated Value Per Share | $ 0.0015 | $ 0.0015 | |
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2019 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | Q1 | ||
Trading Symbol | tecd | ||
Entity Registrant Name | TECH DATA CORPORATION | ||
Entity Central Index Key | 0000790703 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 36,485,564 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 797,500 | $ 799,123 |
Accounts receivable, net | 5,423,370 | 6,241,740 |
Inventories | 3,260,840 | 3,297,385 |
Prepaid expenses and other assets | 367,858 | 354,601 |
Total current assets | 9,849,568 | 10,692,849 |
Property and equipment, net | 271,906 | 274,917 |
Goodwill | 887,175 | 892,990 |
Intangible assets, net | 924,338 | 950,858 |
Other assets, net | 378,762 | 174,938 |
Total assets | 12,311,749 | 12,986,552 |
Current liabilities: | ||
Accounts payable | 6,715,555 | 7,496,466 |
Accrued expenses and other liabilities | 984,366 | 1,000,126 |
Revolving credit loans and current maturities of long-term debt, net | 123,092 | 110,368 |
Total current liabilities | 7,823,013 | 8,606,960 |
Long-term debt, less current maturities | 1,297,943 | 1,300,554 |
Other long-term liabilities | 274,887 | 142,315 |
Total liabilities | 9,395,843 | 10,049,829 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity: | ||
Common stock, par value $.0015; 200,000,000 shares authorized; 59,245,585 shares issued at April 30, 2019 and January 31, 2019 | 89 | 89 |
Additional paid-in capital | 836,508 | 844,206 |
Treasury stock, at cost (22,483,529 and 22,305,464 shares at April 30, 2019 and January 31, 2019) | (1,065,657) | (1,037,872) |
Retained earnings | 3,141,914 | 3,086,514 |
Accumulated other comprehensive income | 3,052 | 43,786 |
Total shareholders' equity | 2,915,906 | 2,936,723 |
Total liabilities and shareholders' equity | $ 12,311,749 | $ 12,986,552 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Apr. 30, 2019 | Jan. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0015 | $ 0.0015 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 59,246,000 | 59,246,000 |
Treasury stock, shares | 22,483,529 | 22,305,464 |
Consolidated Statement Of Incom
Consolidated Statement Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 8,406,424 | $ 8,548,319 |
Cost of products sold | 7,897,045 | 8,025,202 |
Gross profit | 509,379 | 523,117 |
Selling, general and administrative expenses | 405,816 | 422,361 |
Acquisition, integration and restructuring expenses | 6,221 | 33,225 |
Legal settlements and other, net | (282) | (2,965) |
Operating expenses | 411,755 | 452,621 |
Operating income | 97,624 | 70,496 |
Interest expense | 26,257 | 25,922 |
Other (income) expense, net | (693) | 1,917 |
Income before income taxes | 72,060 | 42,657 |
Provision for income taxes | 16,660 | 8,958 |
Net income | $ 55,400 | $ 33,699 |
Earnings per share: | ||
Basic | $ 1.50 | $ 0.88 |
Diluted | $ 1.49 | $ 0.87 |
Weighted average common shares outstanding: | ||
Basic | 37,011 | 38,281 |
Diluted | 37,247 | 38,561 |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 55,400 | $ 33,699 |
Other comprehensive loss: | ||
Foreign currency translation adjustment, net of tax | (40,523) | (88,252) |
Unrealized loss on cash flow hedges, net of tax | (211) | 0 |
Other comprehensive income (loss), net of tax | (40,734) | (88,252) |
Total comprehensive income (loss) | $ 14,666 | $ (54,553) |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Common Stock, Shares, Issued at Jan. 31, 2018 | 59,246,000 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 31, 2018 | $ 2,921,492 | $ 89 | $ 827,301 | $ (940,124) | $ 2,745,934 | $ 288,292 |
Stock Issued During Period Value Benefit Plans and Exercise Of Equity Based Awards Net Of Tax | (5,814) | 0 | (12,771) | 6,957 | 0 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 7,587 | 0 | 7,587 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (88,252) | 0 | 0 | 0 | 0 | (88,252) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 33,699 | 0 | 0 | 0 | 33,699 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Apr. 30, 2018 | $ 2,868,712 | 89 | 822,117 | (933,167) | 2,779,633 | 200,040 |
Common Stock, Shares, Issued at Apr. 30, 2018 | 59,246,000 | |||||
Common Stock, Shares, Issued at Jan. 31, 2019 | 59,246,000 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 31, 2019 | $ 2,936,723 | 89 | 844,206 | (1,037,872) | 3,086,514 | 43,786 |
Treasury Stock, Value, Acquired, Cost Method | (35,681) | 0 | 0 | (35,681) | 0 | 0 |
Stock Issued During Period Value Benefit Plans and Exercise Of Equity Based Awards Net Of Tax | (8,107) | 0 | (16,003) | 7,896 | 0 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 8,305 | 0 | 8,305 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (40,734) | 0 | 0 | 0 | 0 | (40,734) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 55,400 | 0 | 0 | 0 | 55,400 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Apr. 30, 2019 | $ 2,915,906 | $ 89 | $ 836,508 | $ (1,065,657) | $ 3,141,914 | $ 3,052 |
Common Stock, Shares, Issued at Apr. 30, 2019 | 59,246,000 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash flows from operating activities: | ||
Cash received from customers | $ 11,913,347 | $ 11,514,374 |
Cash paid to vendors and employees | (11,800,318) | (12,038,399) |
Interest paid, net | (35,101) | (33,763) |
Income taxes paid | (14,739) | (8,830) |
Net cash provided by (used in) operating activities | 63,189 | (566,618) |
Cash flows from investing activities: | ||
Expenditures for property and equipment | (7,745) | (4,894) |
Software and software development costs | (7,534) | (3,561) |
Other | (548) | (267) |
Net cash used in investing activities | (15,827) | (8,722) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | (5,224) | (2,899) |
Cash paid for debt issuance costs | (1,028) | 0 |
Net borrowings (repayments) on revolving credit loans | 14,227 | (13,291) |
Payments for employee tax withholdings on equity awards | (8,602) | (6,255) |
Proceeds from the reissuance of treasury stock | 495 | 442 |
Payments for Repurchase of Common Stock | (35,681) | 0 |
Net cash used in financing activities | (35,813) | (22,003) |
Effect of exchange rate changes on cash and cash equivalents | (13,172) | (12,708) |
Net decrease in cash and cash equivalents | (1,623) | (610,051) |
Cash and cash equivalents at beginning of year | 799,123 | 955,628 |
Cash and cash equivalents at end of period | 797,500 | 345,577 |
Reconciliation of net income to net cash provided by operating activities: | ||
Net income | 55,400 | 33,699 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 37,257 | 40,481 |
Provision for losses on accounts receivable | 1,765 | 924 |
Stock-based compensation expense | 8,305 | 7,587 |
Accretion of debt discount and debt issuance costs | 378 | 378 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 751,836 | 670,528 |
Inventories | 2,450 | (7,387) |
Prepaid expenses and other assets | 2,245 | (30,344) |
Accounts payable | 706,381 | 1,132,019 |
Accrued expenses and other liabilities | 90,066 | 150,465 |
Total adjustments | 7,789 | (600,317) |
Net cash provided by (used in) operating activities | $ 63,189 | $ (566,618) |
Business And Summary Of Signifi
Business And Summary Of Significant Accounting Policies (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | 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 IT distribution and solutions companies. Tech Data serves a critical role in the center of the IT ecosystem, bringing products from the world’s leading technology vendors to market, as well as helping customers create solutions best suited to maximize business outcomes for their end-user customers. Tech Data’s customers include value-added resellers, direct marketers, retailers, corporate resellers and managed service providers who support the diverse technology needs of end users. The Company manages its operations in three geographic segments: the Americas, Europe and Asia-Pacific. 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, without audit, pursuant to the rules and regulations of the United States ("U.S.") Securities and Exchange Commission (“SEC”). The Company prepares its financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of the Company as of April 30, 2019 , and its consolidated statements of income, comprehensive income (loss), shareholders' equity and cash flows for the three months ended April 30, 2019 and 2018 . Seasonality The Company’s quarterly operating results have fluctuated significantly in the past and will likely continue to do so in the future as a result of currency fluctuations and seasonal variations in the demand for the products and services we sell. Narrow operating margins may magnify the impact of these factors on the Company's quarterly operating results. Historical seasonal variations have included an increase in European demand during the Company’s fiscal fourth quarter and decreased demand in other fiscal quarters. The seasonal trend in Europe typically results in greater operating leverage, and therefore, lower selling, general and administrative expenses as a percentage of net sales in the region and on a consolidated basis during the second half of the Company's fiscal year, particularly in the Company's fourth quarter. Therefore, the results of operations for the three months ended April 30, 2019 and 2018 are not necessarily indicative of the results that can be expected for the entire fiscal year ended January 31, 2020 . Revenue Recognition The Company’s revenues primarily result from the sale of various technology products and services. The Company recognizes revenue as control of products is transferred to customers, which generally happens at the point of shipment. Products sold by the Company are delivered via shipment from the Company’s facilities, dropshipment directly from the vendor, or by electronic delivery of keys for software products. In relation to product support, supply chain management and other services performed by the Company, revenue is recognized over time as the services are performed. Service revenues and related contract liabilities were not material for the periods presented. The Company has contracts with certain customers where the Company’s performance obligation is to arrange for the products or services to be provided by another party. In these arrangements, as the Company assumes an agency relationship in the transaction, revenue is recognized in the amount of the net fee associated with serving as an agent. These arrangements primarily relate to certain fulfillment contracts, as well as sales of software services and extended warranty services. The Company allows its customers to return product for exchange or credit subject to certain limitations. A liability is recorded at the time of sale for estimated product returns based upon historical experience and an asset is recognized for the amount expected to be recorded in inventory upon product return. The Company also provides volume rebates and other discounts to certain customers which are considered variable consideration. A provision for customer rebates and other discounts is recorded as a reduction of revenue at the time of sale based on an evaluation of the contract terms and historical experience. The Company considers shipping & handling activities as costs to fulfill the sales of products. Shipping revenue is included in net sales when control of the product is transferred to the customer, and the related shipping and handling costs are included in cost of products sold. 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. The Company disaggregates its operating segment revenue by geography, which the Company believes provides a meaningful depiction of the nature of its revenue. Net sales shown in Note 11 – Segment Information includes service revenues, which are not a significant component of total revenue, and are aggregated within the respective geographies. 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 three months ended April 30, 2019 and 2018 (as a percent of consolidated net sales): Three months ended April 30, 2019 2018 Apple, Inc. 13% 14% Cisco Systems, Inc. 11% 11% HP Inc. 10% 12% Legal 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, as well as reimbursement from insurance providers of certain costs incurred by the Company associated with the restatement of certain of the Company’s consolidated financial statements and other financial information from fiscal 2009 to 2013. The Company reached settlement agreements during the periods presented and has recorded these amounts, net of attorney fees and expenses, in “legal settlements and other, net” in the Consolidated Statement of Income. Accounts Receivable Purchase Agreements The Company has uncommitted accounts receivable purchase agreements under which certain accounts receivable may be sold, without recourse, to third-party financial institutions. Under these programs, the Company may sell certain accounts receivable in exchange for cash less a discount, as defined in the agreements. Available capacity under these programs, which the Company uses as a source of working capital funding, is dependent on the level of accounts receivable eligible to be sold into these programs and the financial institutions' willingness to purchase such receivables. In addition, certain of these agreements also require that the Company continue to service, administer and collect the sold accounts receivable. At April 30, 2019 and January 31, 2019 , the Company had a total of $0.8 billion and $1.1 billion , respectively, of outstanding accounts receivable sold to and held by financial institutions under these agreements. During the three months ended April 30, 2019 and 2018 , discount fees recorded under these facilities were $3.7 million and $2.7 million , respectively. These discount fees are included as a component of "other (income) expense, net" in the Consolidated Statement of Income. Recently Adopted Accounting Standards 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-of-use asset are recorded for leases determined to be finance leases and straight-line lease expense is recorded for leases determined to be operating leases. Lessees are required to initially recognize assets for the right to use the leased assets and liabilities for the obligations created by those leases. In July 2018, the FASB issued additional updates to the new accounting standard which provided entities with a transition option to initially account for the impact of the adoption with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the standard and elected this transition option during the quarter ending April 30, 2019. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical accounting relating to lease identification and classification for existing leases at the time of adoption. The adoption of this standard resulted in the Company recognizing right-of-use assets of $206.8 million and corresponding lease liabilities of $205.8 million as of April 30, 2019 . The adoption of this standard had no impact on the Company's Consolidated Statements of Income and Cash Flows. See Note 9 – Leases for additional information. In August 2017, the FASB issued a new accounting standard that amends and simplifies guidance related to hedge accounting to more accurately portray the economics of an entity’s risk management activities in its financial statements. The Company adopted this standard during the quarter ended April 30, 2019. The adoption of this standard had no material impact on the Company's consolidated financial statements. In August 2018, the FASB issued a new accounting standard which aligns the capitalization requirements for implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software. The Company early adopted this standard on a prospective basis during the quarter ended April 30, 2019. The adoption of this standard will not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Standards 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 does not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 2 — EARNINGS PER SHARE ("EPS") The Company presents the computation of earnings per share 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 (see Note 5 – Stock-Based Compensation for further discussion) using the treasury stock method. The composition of basic and diluted EPS is as follows: Three months ended April 30, 2019 2018 (in thousands, except per share data) Net income $ 55,400 $ 33,699 Weighted average common shares - basic 37,011 38,281 Effect of dilutive securities: Equity based awards 236 280 Weighted average common shares - diluted 37,247 38,561 Earnings per share: Basic $ 1.50 $ 0.88 Diluted $ 1.49 $ 0.87 For the three months ended April 30, 2019 and 2018 , there were 322 and 8,439 shares, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. |
Acquisition, Integration and Re
Acquisition, Integration and Restructuring Expenses (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Acquisition, Integration and Restructuring Expenses [Abstract] | |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | NOTE 3 — ACQUISITION, INTEGRATION AND RESTRUCTURING EXPENSES Acquisition, integration and restructuring expenses are comprised of costs related to the fiscal 2018 acquisition of Avnet, Inc.'s ("Avnet") Technology Solutions business ("TS"), as well as restructuring costs related to the Global Business Optimization Program which was initiated in fiscal 2019. Acquisition of TS On February 27, 2017 , Tech Data acquired all of the outstanding shares of TS for an aggregate purchase price of approximately $2.8 billion , comprised of approximately $2.5 billion in cash and 2,785,402 shares of the Company's common stock. Acquisition, integration and restructuring expenses related to the acquisition of TS are primarily comprised of restructuring costs, IT related costs, professional services, transaction related costs and other costs. Restructuring costs are comprised of severance and facility exit costs. IT related costs consist primarily of data center and non-ERP application migration and integration costs, as well as, IT related professional services. Professional services are primarily comprised of integration related activities, including professional fees for project management, accounting, tax and other consulting services. Transaction related costs primarily consist of investment banking fees, legal expenses and due diligence costs incurred in connection with the completion of the transaction. Other costs includes payroll related costs including retention, stock compensation, relocation and travel expenses, incurred as part of the integration of TS. The Company incurred no acquisition, integration and restructuring expenses related to the acquisition of TS during the three months ended April 30, 2019 and does not expect to incur any additional costs in future periods. Acquisition, integration and restructuring expenses for the three months ended April 30, 2018 related to the acquisition of TS are comprised of the following : Three months ended April 30, 2018 (in thousands) Restructuring costs $ 10,872 IT related costs 7,330 Professional services 3,567 Transaction related costs 878 Other costs 4,970 Total $ 27,617 During the three months ended April 30, 2018 , the Company recorded restructuring costs related to the acquisition of TS of $3.4 million in the Americas and $7.5 million in Europe. Global Business Optimization Program In fiscal 2019, the Company's Board of Directors approved the Global Business Optimization Program (the "GBO Program") to increase investment in the Company’s strategic priorities and implement operational initiatives to drive productivity and enhance profitability. Under the GBO Program, the Company expects to incur cash charges of approximately $70 million to $80 million , primarily comprised of $40 million to $45 million of charges in Europe and $30 million to $35 million of charges in the Americas. It is anticipated that the majority of these charges will be incurred prior to the end of the current fiscal year. The cash charges primarily consist of severance costs, and also include professional services and other costs. Restructuring expenses related to the GBO Program are comprised of the following : Three months ended April 30, Cumulative Amounts Incurred to Date 2019 2018 (in thousands) Severance costs $ 4,147 $ 3,269 $ 30,574 Professional services and other costs 2,074 2,339 18,188 Total $ 6,221 $ 5,608 $ 48,762 During the three months ended April 30, 2019 , the Company recorded restructuring costs related to the GBO Program in the Americas of $2.9 million , in Europe of $3.0 million and in Asia-Pacific of $0.3 million . During the three months ended April 30, 2018 , the Company recorded restructuring costs related to the GBO Program in the Americas of $0.9 million and in Europe of $4.7 million . The accrued restructuring charges are included in “accrued expenses and other liabilities” in the Consolidated Balance Sheet. Restructuring activity during the three months ended April 30, 2019 related to the GBO Program is as follows: Three months ended April 30, 2019 Severance Professional services and other costs Total (in thousands) Balance at January 31, 2019 $ 14,798 $ 631 $ 15,429 Fiscal 2020 restructuring expenses 4,147 2,074 6,221 Cash payments (5,188 ) (1,725 ) (6,913 ) Foreign currency translation (242 ) (16 ) (258 ) Balance at April 30, 2019 $ 13,515 $ 964 $ 14,479 |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 4 — DEBT The carrying value of the Company's outstanding debt consists of the following (in thousands): As of: April 30, 2019 January 31, 2019 Senior Notes, interest at 3.70% payable semi-annually, due February 15, 2022 $ 500,000 $ 500,000 Senior Notes, interest at 4.95% payable semi-annually, due February 15, 2027 500,000 500,000 Less—unamortized debt discount and debt issuance costs (6,788 ) (7,166 ) Senior Notes, net 993,212 992,834 Term Loans, interest rate of 4.00% and 3.99% at April 30, 2019 and January 31, 2019, respectively 300,000 300,000 Other committed and uncommitted revolving credit facilities, average interest rate of 8.11% and 8.05% at April 30, 2019 and January 31, 2019, respectively 117,312 102,271 Other long-term debt 10,511 15,817 1,421,035 1,410,922 Less—current maturities (included as “revolving credit loans and current maturities of long-term debt, net”) (123,092 ) (110,368 ) Total long-term debt $ 1,297,943 $ 1,300,554 Senior Notes In January 2017, the Company issued $500.0 million aggregate principal amount of 3.70% Senior Notes due February 15, 2022 (the "3.70% Senior Notes") and $500.0 million aggregate principal amount of 4.95% Senior Notes due February 15, 2027 (the "4.95% Senior Notes") (collectively the "2017 Senior Notes"). The Company pays interest on the 2017 Senior Notes semi-annually in arrears on February 15 and August 15 of each year. 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 changes. 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 increase more than 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 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 (i) 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. Other Credit Facilities As of April 30, 2019 , the Company had a $1.25 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 and (ii) an interest rate on borrowings, facility fees and letter of credit fees based on the Company’s debt rating. 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 April 30, 2019 and January 31, 2019 . The Credit Agreement was amended on May 15, 2019 (see further discussion in Note 12 – Subsequent Events ). The Company entered into a term loan credit agreement on November 2, 2016 with a syndicate of banks (the "Term Loan Credit Agreement") which provided for the borrowing of senior unsecured term loans in an original aggregate principal amount of up to $1.0 billion . The Company pays interest on advances under the Term Loan Credit Agreement at a variable rate based on LIBOR plus a predetermined margin that is based on the Company's debt rating. The Company had $300 million outstanding under the Term Loan Credit Agreement at both April 30, 2019 and January 31, 2019. The outstanding balance under the Term Loan Credit Agreement is due on February 27, 2022. The Company may repay amounts at any time, in whole or in part, without penalty or premium prior to the maturity date. 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. On April 16, 2019, the Company modified its Receivables Securitization Program. This amendment, among other things, extended the scheduled termination date of the agreement from August 8, 2019 to April 16, 2021 and provided for an increase in the maximum borrowings from $750 million to $1.0 billion . 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 approximately $1.7 billion at both April 30, 2019 and January 31, 2019 . 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. 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 April 30, 2019 and January 31, 2019 . In addition to the facilities described above, the Company has various other committed and uncommitted lines of credit and overdraft facilities totaling approximately $400.8 million at April 30, 2019 to support its operations. Most of these facilities are provided on an unsecured, short-term basis and are reviewed periodically for renewal. There was $117.3 million outstanding on these facilities at April 30, 2019 , at a weighted average interest rate of 8.11% , and there was $102.3 million outstanding at January 31, 2019 , at a weighted average interest rate of 8.05% . At April 30, 2019 , the Company had also issued standby letters of credit of $25.6 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 April 30, 2019 |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 5 — STOCK-BASED COMPENSATION For the three months ended April 30, 2019 and 2018 , the Company recorded $8.3 million and $7.6 million , respectively, of stock-based compensation expense. The 2018 Equity Incentive Plan was approved by the Company’s shareholders in June 2018 and includes 2.0 million shares available for grant, of which approximately 1.7 million shares remain available for future grant at April 30, 2019 . The Company is authorized to award officers, employees, and non-employee members of the Board of Directors restricted stock, options to purchase common stock, stock appreciation rights and performance awards that are dependent upon achievement of specified performance goals. Equity-based compensation awards have a maximum term of 10 years, unless a shorter period is specified by the Compensation Committee of the Board of Directors ("Compensation Committee") or is required under local law. Awards under the plan are priced as determined by the Compensation Committee and 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 year 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. Restricted stock units A summary of the Company’s restricted stock activity for the three months ended April 30, 2019 is as follows: Shares Nonvested at January 31, 2019 649,122 Granted 209,700 Vested (229,536 ) Canceled (10,278 ) Nonvested at April 30, 2019 619,008 Performance based restricted stock units The Company's performance based restricted stock unit awards are subject to vesting conditions, including meeting specified cumulative performance objectives over a period of three years. Each performance based award recipient could vest in 0% to 150% of the target shares granted, contingent on the achievement of the Company's financial performance metrics. A summary of the Company’s performance based restricted stock activity, assuming maximum achievement for nonvested awards, for the three months ended April 30, 2019 is as follows: Shares Nonvested at January 31, 2019 293,216 Granted 108,771 Vested (16,996 ) Canceled (5,039 ) Nonvested at April 30, 2019 379,952 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures | NOTE 6 — 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: April 30, 2019 January 31, 2019 Fair value measurement category Fair value measurement category Balance sheet location Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) ASSETS Net investment hedges: Foreign currency forward contracts Prepaid expenses and other assets $ 92 $ — Foreign currency forward contracts Other assets, net 2,720 — Cash flow hedges: Cross-currency swap Prepaid expenses and other assets 120 — Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other assets 4,767 3,830 LIABILITIES Cash flow hedges: Cross-currency swap Accrued expenses and other liabilities $ 695 $ — Derivatives not designated as hedging instruments: Foreign currency forward contracts Accrued expenses and other liabilities 5,066 6,641 The Company's derivative instruments 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 (see Note 7 – Derivative Instruments for further discussion). The Company utilizes life insurance policies to fund the Company’s nonqualified deferred compensation plan. The life insurance asset recorded by the Company is the amount that would be realized upon the assumed surrender of the policy. This amount is based on the underlying fair value of the invested assets contained within the life insurance policies. The gains and losses are recorded in the Company’s Consolidated Statement of Income within "other (income) expense, net." The related deferred compensation liability is also marked-to-market each period based upon the 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 $42.6 million and $42.2 million , respectively, at April 30, 2019 and $39.2 million and $39.1 million , respectively, at January 31, 2019 . The carrying value of the 2017 Senior Notes discussed in Note 4 – Debt represents cost less unamortized debt discount and debt issuance costs. The estimated fair value of the 2017 Senior Notes is based upon quoted market information (Level 1). The estimated fair value of the 2017 Senior Notes was $1.01 billion and $988 million , respectively, at April 30, 2019 and January 31, 2019 and the carrying value was $993.2 million and $992.8 million , respectively, at April 30, 2019 and January 31, 2019 |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Derivatives [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 7 — 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 and a cross-currency swap. Net Investment Hedges In April 2019, the Company entered into foreign currency forward contracts to hedge a portion of its net investment in euro denominated foreign operations which are designated as net investment hedges. The Company entered into the net investment hedges to offset the risk of change in the U.S. dollar value of the Company's investment in a euro functional subsidiary due to fluctuating foreign exchange rates. Gains and losses on net investment hedges are recorded in other comprehensive income (loss) until the sale or substantially complete liquidation of the underlying assets of the Company's investment. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the Consolidated Statement of Income under a systematic and rational method over the life of the hedging instrument. The aggregate notional values of the Company's outstanding net investment hedge contracts by year of maturity are as follows: Fiscal Year: Notional Value (in millions) 2020 $ 4.6 2021 9.3 2022 9.3 2023 254.6 Total $ 277.8 The following table presents the effects of the Company's net investment hedges on accumulated other comprehensive income ("AOCI") and earnings: Three months ended April 30, 2019 Derivatives designated as net investment hedges: Amount of gain (loss) recognized in other comprehensive income (loss) Amount of gain (loss) reclassified from AOCI into income Location of gain (loss) recognized in income (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) (in thousands) Foreign currency forward contracts $ 2,496 $ — Interest expense $ 316 Cash Flow Hedges During the three months ended April 30, 2019 , the Company entered into a cross-currency swap to hedge its cash flows related to certain foreign-currency denominated debt which is designated as a cash flow hedge. The notional value of this swap was $4.5 million at April 30, 2019 and the swap has a maturity date of February 2020. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is initially reported as a component of other comprehensive income (loss). These gains and losses are subsequently reclassified into earnings in the same period during which the hedged transaction affects earnings and are presented in the same income statement line item as the earnings effect of the hedged item. The following table presents the effects of the Company's cash flow hedges on AOCI and earnings: Three months ended April 30, 2019 Derivatives designated as cash flow hedges: Amount of gain (loss) recognized in other comprehensive income (loss) Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) reclassified from AOCI into income (in thousands) Cross-currency swap $ (575 ) Interest expense $ 120 Other (income) expense, net (484 ) Total $ (575 ) $ (364 ) Derivatives Not Designated as Hedges The Company additionally utilizes forward contracts that are not designated as hedging instruments to hedge intercompany loans, accounts receivable and accounts payable. 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: Australian dollar, British pound, Canadian dollar, Czech koruna, Danish krone, euro, Indian rupee, Indonesian rupiah, Mexican peso, Norwegian krone, Polish zloty, Singapore dollar, 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 not designated as hedges that are 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 not designated as hedges that are used to manage its exposures to foreign currency denominated financing transactions as a component of “other (income) expense, net,” which is consistent with the classification of the change in fair value upon remeasurement of the underlying hedged loans. The 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 total amount of gains (losses) recognized in earnings on the Company's derivatives not designated as hedges for the three months ended April 30, 2019 and 2018 are as follows: Gains (losses) recognized in earnings for the three months ended April 30: Derivatives not designated as hedges Income statement location 2019 2018 (in millions) Foreign currency forward contracts Cost of products sold $ 0.9 $ 6.6 Foreign currency forward contracts Other (income) expense, net (0.3 ) (7.3 ) Total $ 0.6 $ (0.7 ) The Company's average notional amounts of derivatives not designated as hedges outstanding during the three months ended April 30, 2019 and 2018 were approximately $1.3 billion and $1.4 billion , respectively, with average maturities of 24 days and 30 days , respectively. As discussed above, under the Company's hedging policies, gains and losses on these derivative financial instruments are largely offset by the gains and losses on the underlying assets or liabilities being hedged. The Company’s derivatives are also discussed in Note 6 – Fair Value Measurements |
Shareholders' Equity (Notes)
Shareholders' Equity (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Shareholders Equity [Abstract] | |
Shareholders' Equity and Share-based Payments | NOTE 8 — SHAREHOLDERS' EQUITY Share Repurchase Program In October 2018, the Company's Board of Directors authorized a share repurchase program for up to $200.0 million of the Company's common stock. In February 2019, the Board of Directors approved a $100.0 million increase to the program resulting in a total share repurchase authorization of $300.0 million . In conjunction with the Company’s share repurchase program, a 10b5-1 plan was executed that instructs the broker selected by the Company to repurchase shares on behalf of the Company. The amount of common stock repurchased in accordance with the 10b5-1 plan on any given trading day is determined by a formula in the plan, which is based on the market price of the Company’s common stock. Shares repurchased by the Company are held in treasury for general corporate purposes, including issuances under equity incentive and benefit plans. The reissuance of shares from treasury stock is based on the weighted average purchase price of the shares. The Company’s common share issuance activity for the three months ended April 30, 2019 is summarized as follows: Shares Weighted-average Treasury stock balance at January 31, 2019 22,305,464 $ 46.53 Shares of treasury stock repurchased under share repurchase program 345,927 103.15 Shares of treasury stock reissued for equity incentive plans (167,862 ) Treasury stock balance at April 30, 2019 22,483,529 $ 47.40 Accumulated Other Comprehensive Income The following tables summarize the change in the components of AOCI for the three months ended April 30, 2019 and 2018 : Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total Balance at January 31, 2019 $ 43,786 $ — $ 43,786 Other comprehensive income (loss) before reclassification (40,523 ) (575 ) (41,098 ) Reclassification of (gain) loss from AOCI into income — 364 364 Balance at April 30, 2019 $ 3,263 $ (211 ) $ 3,052 Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total Balance at January 31, 2018 $ 288,292 $ — $ 288,292 Other comprehensive income (loss) before reclassification (88,252 ) — (88,252 ) Reclassification of (gain) loss from AOCI into income — — — Balance at April 30, 2018 $ 200,040 $ — $ 200,040 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | NOTE 9 — LEASES At contract inception, the Company determines if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. The Company has operating leases for certain logistics centers, office facilities, vehicles and equipment. The Company’s finance leases are not material. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the balance sheet. Certain of the Company’s operating leases contain options to extend the lease, which are included in the lease term when it is reasonably certain that the option will be exercised. Certain of the Company's operating leases contain options to terminate the lease; periods after the date of the termination option are included in the lease term when it is reasonably certain that the Company will not exercise the option to terminate the lease. The Company has elected to not separately recognize the lease and non-lease components of a contract for all operating leases. Operating leases are included in “other assets, net”, “accrued expenses and other liabilities” (for the current portion of lease liabilities) and “other long-term liabilities” on the Consolidated Balance Sheet. These assets and liabilities are recognized at the lease commencement date based on the present value of remaining lease payments over the lease term using the Company's incremental borrowing rate. Lease expense for operating leases is recognized on a straight-line basis over the lease term and is recognized in “selling, general and administrative expenses” on the Consolidated Statement of Income. Variable lease costs are recognized as incurred. The following table presents the contractual maturities of the Company's operating lease liabilities as of April 30, 2019 : Fiscal year: (in thousands) 2020 (remaining 9 months) $ 49,173 2021 58,975 2022 39,114 2023 28,405 2024 21,325 Thereafter 35,172 Total payments $ 232,164 Less amount of lease payments representing interest (26,395 ) Total present value of lease payments $ 205,769 Rental expense for all operating leases totaled $21.6 million during the three months ended April 30, 2019 . These costs primarily relate to fixed costs for long-term operating leases, but also include immaterial amounts for variable lease costs and short-term operating leases. The following amounts were recorded in the Company's Consolidated Balance Sheet as of April 30, 2019 : Operating leases Balance sheet location April 30, 2019 (in thousands) Operating lease right-of-use assets Other assets, net $ 206,773 Current operating lease liabilities Accrued expenses and other liabilities 63,411 Non-current operating lease liabilities Other long-term liabilities 142,358 Supplemental cash flow information related to the Company's operating leases is as follows: Cash flow information Three months ended April 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: $ 17,515 Non-cash right-of-use assets obtained in exchange for lease liabilities: 6,183 The weighted-average remaining lease term and discount rate were as follows as of April 30, 2019 : Operating lease term and discount rate Operating Leases Weighted-average remaining lease term 4.9 years Weighted-average discount rate 4.8 % |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 — COMMITMENTS & CONTINGENCIES Guarantees 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. Contingencies 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 the CIDE tax, including interest, was approximately $19.4 million at April 30, 2019 . 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. Accordingly, the Company has not recorded an accrual for the total estimated CIDE tax exposure. 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 June 2013, the Company was the subject of a document seizure by the French Autorité de la Concurrence (Competition Authority), following allegations of anticompetitive distribution practices in the French market for the products of one of the Company's suppliers. In October 2018, the Competition Authority delivered a notification des griefs (statement of objections) to the Company, stating that the Competition Authority is pursuing charges against the Company in this matter. The Competition Authority has taken similar action against the Company's supplier and another of its distributors. At this time, the Company cannot determine the likelihood of loss or reasonably estimate the range of any loss arising from this proceeding. The Company is subject to various other legal proceedings and claims arising in the ordinary course of business. The Company’s management does not expect that the outcome in any of these other legal proceedings, individually or collectively, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. |
Segment Information (Notes)
Segment Information (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 11 — SEGMENT INFORMATION The Company operates predominantly in a single industry segment as a distributor of technology products, logistics management, and other value-added services. While the Company operates primarily in one industry, it is managed based on three geographic segments: the Americas, Europe and Asia-Pacific. 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): Three months ended April 30, 2019 2018 Net sales: Americas (1) $ 3,789,198 $ 3,618,206 Europe 4,309,500 4,661,702 Asia-Pacific 307,726 268,411 Total $ 8,406,424 $ 8,548,319 Operating income (loss): Americas (2) $ 68,633 $ 61,342 Europe (3) 36,420 17,318 Asia-Pacific 876 (577 ) Stock-based compensation expense (8,305 ) (7,587 ) Total $ 97,624 $ 70,496 Depreciation and amortization: Americas $ 23,649 $ 23,259 Europe 11,510 14,991 Asia-Pacific 2,098 2,231 Total $ 37,257 $ 40,481 Capital expenditures: Americas $ 8,272 $ 4,379 Europe 6,127 3,717 Asia-Pacific 880 359 Total $ 15,279 $ 8,455 As of: April 30, 2019 January 31, 2019 Identifiable assets: Americas $ 5,517,978 $ 5,402,316 Europe 6,194,424 6,970,822 Asia-Pacific 599,347 613,414 Total $ 12,311,749 $ 12,986,552 Long-lived assets: Americas (1) $ 215,504 $ 217,863 Europe 51,481 52,162 Asia-Pacific 4,921 4,892 Total $ 271,906 $ 274,917 Goodwill & acquisition-related intangible assets, net: Americas $ 1,070,187 $ 1,083,699 Europe 560,214 575,776 Asia-Pacific 58,582 60,154 Total $ 1,688,983 $ 1,719,629 (1) Net sales in the United States represented 88% and 87% , respectively, of the total Americas' net sales for the three months ended April 30, 2019 and 2018 . Total long-lived assets in the United States represented 96% of the Americas' total long-lived assets at both April 30, 2019 and January 31, 2019 . (2) Operating income in the Americas for the three months ended April 30, 2019 and 2018 includes acquisition, integration and restructuring expenses of $2.9 million and $13.9 million , respectively (see further discussion in Note 3 – Acquisition, Integration and Restructuring Expenses ). Operating income in the Americas includes a gain related to legal settlements and other, net, of $0.3 million and $3.0 million for the three months ended April 30, 2019 and 2018 (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies). (3) Operating income in Europe for the three months ended April 30, 2019 and 2018 includes acquisition, integration and restructuring expenses of $3.0 million and $18.0 million |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Apr. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 12 - SUBSEQUENT EVENTS On May 15, 2019, the Credit Agreement was amended to, among other things, (i) increase the borrowing capacity under the revolving credit facility to $1.5 billion , (ii) extend the maturity date to May 15, 2024, (iii) provide the ability to increase the facility to a maximum of $1.75 billion , subject to certain conditions and (iv) provide for certain subsidiaries of the Company to be designated as borrowers. The applicable borrower will pay interest on advances under the Credit Agreement 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. |
Business And Summary Of Signi_2
Business And Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Tech Data Corporation (“Tech Data” or the “Company”) is one of the world’s largest IT distribution and solutions companies. Tech Data serves a critical role in the center of the IT ecosystem, bringing products from the world’s leading technology vendors to market, as well as helping customers create solutions best suited to maximize business outcomes for their end-user customers. Tech Data’s customers include value-added resellers, direct marketers, retailers, corporate resellers and managed service providers who support the diverse technology needs of end users. The Company manages its operations in three geographic segments: the Americas, Europe and Asia-Pacific. |
Consolidation, Policy | 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 Accounting, Policy | The consolidated financial statements have been prepared by the Company, without audit, pursuant to the rules and regulations of the United States ("U.S.") Securities and Exchange Commission (“SEC”). The Company prepares its financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of the Company as of April 30, 2019 , and its consolidated statements of income, comprehensive income (loss), shareholders' equity and cash flows for the three months ended April 30, 2019 and 2018 . |
Seasonal Fluctuations Policy | The Company’s quarterly operating results have fluctuated significantly in the past and will likely continue to do so in the future as a result of currency fluctuations and seasonal variations in the demand for the products and services we sell. Narrow operating margins may magnify the impact of these factors on the Company's quarterly operating results. Historical seasonal variations have included an increase in European demand during the Company’s fiscal fourth quarter and decreased demand in other fiscal quarters. The seasonal trend in Europe typically results in greater operating leverage, and therefore, lower selling, general and administrative expenses as a percentage of net sales in the region and on a consolidated basis during the second half of the Company's fiscal year, particularly in the Company's fourth quarter. Therefore, the results of operations for the three months ended April 30, 2019 and 2018 are not necessarily indicative of the results that can be expected for the entire fiscal year ended January 31, 2020 . |
Revenue Recognition, Policy | The Company’s revenues primarily result from the sale of various technology products and services. The Company recognizes revenue as control of products is transferred to customers, which generally happens at the point of shipment. Products sold by the Company are delivered via shipment from the Company’s facilities, dropshipment directly from the vendor, or by electronic delivery of keys for software products. In relation to product support, supply chain management and other services performed by the Company, revenue is recognized over time as the services are performed. Service revenues and related contract liabilities were not material for the periods presented. The Company has contracts with certain customers where the Company’s performance obligation is to arrange for the products or services to be provided by another party. In these arrangements, as the Company assumes an agency relationship in the transaction, revenue is recognized in the amount of the net fee associated with serving as an agent. These arrangements primarily relate to certain fulfillment contracts, as well as sales of software services and extended warranty services. The Company allows its customers to return product for exchange or credit subject to certain limitations. A liability is recorded at the time of sale for estimated product returns based upon historical experience and an asset is recognized for the amount expected to be recorded in inventory upon product return. The Company also provides volume rebates and other discounts to certain customers which are considered variable consideration. A provision for customer rebates and other discounts is recorded as a reduction of revenue at the time of sale based on an evaluation of the contract terms and historical experience. The Company considers shipping & handling activities as costs to fulfill the sales of products. Shipping revenue is included in net sales when control of the product is transferred to the customer, and the related shipping and handling costs are included in cost of products sold. 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. The Company disaggregates its operating segment revenue by geography, which the Company believes provides a meaningful depiction of the nature of its revenue. Net sales shown in Note 11 – Segment Information includes service revenues, which are not a significant component of total revenue, and are aggregated within the respective geographies. 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 three months ended April 30, 2019 and 2018 (as a percent of consolidated net sales): Three months ended April 30, 2019 2018 Apple, Inc. 13% 14% Cisco Systems, Inc. 11% 11% HP Inc. 10% 12% |
Gain (Loss) Related to Litigation Settlement | The Company has been a claimant in proceedings seeking damages from certain manufacturers of LCD flat panel and cathode ray tube displays, as well as reimbursement from insurance providers of certain costs incurred by the Company associated with the restatement of certain of the Company’s consolidated financial statements and other financial information from fiscal 2009 to 2013. The Company reached settlement agreements during the periods presented and has recorded these amounts, net of attorney fees and expenses, in “legal settlements and other, net” in the Consolidated Statement of Income. |
Accounts Receivable Purchase Facility Program, Policy | The Company has uncommitted accounts receivable purchase agreements under which certain accounts receivable may be sold, without recourse, to third-party financial institutions. Under these programs, the Company may sell certain accounts receivable in exchange for cash less a discount, as defined in the agreements. Available capacity under these programs, which the Company uses as a source of working capital funding, is dependent on the level of accounts receivable eligible to be sold into these programs and the financial institutions' willingness to purchase such receivables. In addition, certain of these agreements also require that the Company continue to service, administer and collect the sold accounts receivable. At April 30, 2019 and January 31, 2019 , the Company had a total of $0.8 billion and $1.1 billion , respectively, of outstanding accounts receivable sold to and held by financial institutions under these agreements. During the three months ended April 30, 2019 and 2018 , discount fees recorded under these facilities were $3.7 million and $2.7 million , respectively. These discount fees are included as a component of "other (income) expense, net" in the Consolidated Statement of Income. |
Recently Adopted Accounting Standards | 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-of-use asset are recorded for leases determined to be finance leases and straight-line lease expense is recorded for leases determined to be operating leases. Lessees are required to initially recognize assets for the right to use the leased assets and liabilities for the obligations created by those leases. In July 2018, the FASB issued additional updates to the new accounting standard which provided entities with a transition option to initially account for the impact of the adoption with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the standard and elected this transition option during the quarter ending April 30, 2019. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical accounting relating to lease identification and classification for existing leases at the time of adoption. The adoption of this standard resulted in the Company recognizing right-of-use assets of $206.8 million and corresponding lease liabilities of $205.8 million as of April 30, 2019 . The adoption of this standard had no impact on the Company's Consolidated Statements of Income and Cash Flows. See Note 9 – Leases for additional information. In August 2017, the FASB issued a new accounting standard that amends and simplifies guidance related to hedge accounting to more accurately portray the economics of an entity’s risk management activities in its financial statements. The Company adopted this standard during the quarter ended April 30, 2019. The adoption of this standard had no material impact on the Company's consolidated financial statements. In August 2018, the FASB issued a new accounting standard which aligns the capitalization requirements for implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software. The Company early adopted this standard on a prospective basis during the quarter ended April 30, 2019. The adoption of this standard will not have a material impact on the Company's consolidated financial statements. |
Recently Issued Accounting Standards | 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 does not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
Business And Summary Of Signi_3
Business And Summary Of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
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 three months ended April 30, 2019 and 2018 (as a percent of consolidated net sales): Three months ended April 30, 2019 2018 Apple, Inc. 13% 14% Cisco Systems, Inc. 11% 11% HP Inc. 10% 12% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted | The composition of basic and diluted EPS is as follows: Three months ended April 30, 2019 2018 (in thousands, except per share data) Net income $ 55,400 $ 33,699 Weighted average common shares - basic 37,011 38,281 Effect of dilutive securities: Equity based awards 236 280 Weighted average common shares - diluted 37,247 38,561 Earnings per share: Basic $ 1.50 $ 0.88 Diluted $ 1.49 $ 0.87 For the three months ended April 30, 2019 and 2018 , there were 322 and 8,439 shares, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. |
Acquisition, Integration and _2
Acquisition, Integration and Restructuring Expenses (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
TS | |
Restructuring Cost and Reserve [Line Items] | |
Acquisition and integration expenses [Table Text Block] | The Company incurred no acquisition, integration and restructuring expenses related to the acquisition of TS during the three months ended April 30, 2019 and does not expect to incur any additional costs in future periods. Acquisition, integration and restructuring expenses for the three months ended April 30, 2018 related to the acquisition of TS are comprised of the following : Three months ended April 30, 2018 (in thousands) Restructuring costs $ 10,872 IT related costs 7,330 Professional services 3,567 Transaction related costs 878 Other costs 4,970 Total $ 27,617 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | |
Global Business Optimization Program | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Restructuring expenses related to the GBO Program are comprised of the following : Three months ended April 30, Cumulative Amounts Incurred to Date 2019 2018 (in thousands) Severance costs $ 4,147 $ 3,269 $ 30,574 Professional services and other costs 2,074 2,339 18,188 Total $ 6,221 $ 5,608 $ 48,762 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Restructuring activity during the three months ended April 30, 2019 related to the GBO Program is as follows: Three months ended April 30, 2019 Severance Professional services and other costs Total (in thousands) Balance at January 31, 2019 $ 14,798 $ 631 $ 15,429 Fiscal 2020 restructuring expenses 4,147 2,074 6,221 Cash payments (5,188 ) (1,725 ) (6,913 ) Foreign currency translation (242 ) (16 ) (258 ) Balance at April 30, 2019 $ 13,515 $ 964 $ 14,479 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The carrying value of the Company's outstanding debt consists of the following (in thousands): As of: April 30, 2019 January 31, 2019 Senior Notes, interest at 3.70% payable semi-annually, due February 15, 2022 $ 500,000 $ 500,000 Senior Notes, interest at 4.95% payable semi-annually, due February 15, 2027 500,000 500,000 Less—unamortized debt discount and debt issuance costs (6,788 ) (7,166 ) Senior Notes, net 993,212 992,834 Term Loans, interest rate of 4.00% and 3.99% at April 30, 2019 and January 31, 2019, respectively 300,000 300,000 Other committed and uncommitted revolving credit facilities, average interest rate of 8.11% and 8.05% at April 30, 2019 and January 31, 2019, respectively 117,312 102,271 Other long-term debt 10,511 15,817 1,421,035 1,410,922 Less—current maturities (included as “revolving credit loans and current maturities of long-term debt, net”) (123,092 ) (110,368 ) Total long-term debt $ 1,297,943 $ 1,300,554 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the Company’s restricted stock activity for the three months ended April 30, 2019 is as follows: Shares Nonvested at January 31, 2019 649,122 Granted 209,700 Vested (229,536 ) Canceled (10,278 ) Nonvested at April 30, 2019 619,008 |
Schedule of Nonvested Performance-based Units Activity | A summary of the Company’s performance based restricted stock activity, assuming maximum achievement for nonvested awards, for the three months ended April 30, 2019 is as follows: Shares Nonvested at January 31, 2019 293,216 Granted 108,771 Vested (16,996 ) Canceled (5,039 ) Nonvested at April 30, 2019 379,952 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Fair Value, Assets 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: April 30, 2019 January 31, 2019 Fair value measurement category Fair value measurement category Balance sheet location Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) ASSETS Net investment hedges: Foreign currency forward contracts Prepaid expenses and other assets $ 92 $ — Foreign currency forward contracts Other assets, net 2,720 — Cash flow hedges: Cross-currency swap Prepaid expenses and other assets 120 — Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other assets 4,767 3,830 LIABILITIES Cash flow hedges: Cross-currency swap Accrued expenses and other liabilities $ 695 $ — Derivatives not designated as hedging instruments: Foreign currency forward contracts Accrued expenses and other liabilities 5,066 6,641 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Schedule of Cash Flow Hedges in AOCI [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The aggregate notional values of the Company's outstanding net investment hedge contracts by year of maturity are as follows: Fiscal Year: Notional Value (in millions) 2020 $ 4.6 2021 9.3 2022 9.3 2023 254.6 Total $ 277.8 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the effects of the Company's net investment hedges on accumulated other comprehensive income ("AOCI") and earnings: Three months ended April 30, 2019 Derivatives designated as net investment hedges: Amount of gain (loss) recognized in other comprehensive income (loss) Amount of gain (loss) reclassified from AOCI into income Location of gain (loss) recognized in income (amount excluded from effectiveness testing) Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) (in thousands) Foreign currency forward contracts $ 2,496 $ — Interest expense $ 316 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the effects of the Company's cash flow hedges on AOCI and earnings: Three months ended April 30, 2019 Derivatives designated as cash flow hedges: Amount of gain (loss) recognized in other comprehensive income (loss) Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) reclassified from AOCI into income (in thousands) Cross-currency swap $ (575 ) Interest expense $ 120 Other (income) expense, net (484 ) Total $ (575 ) $ (364 ) |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The total amount of gains (losses) recognized in earnings on the Company's derivatives not designated as hedges for the three months ended April 30, 2019 and 2018 are as follows: Gains (losses) recognized in earnings for the three months ended April 30: Derivatives not designated as hedges Income statement location 2019 2018 (in millions) Foreign currency forward contracts Cost of products sold $ 0.9 $ 6.6 Foreign currency forward contracts Other (income) expense, net (0.3 ) (7.3 ) Total $ 0.6 $ (0.7 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Shareholders Equity [Abstract] | ||
Class of Treasury Stock | The Company’s common share issuance activity for the three months ended April 30, 2019 is summarized as follows: Shares Weighted-average Treasury stock balance at January 31, 2019 22,305,464 $ 46.53 Shares of treasury stock repurchased under share repurchase program 345,927 103.15 Shares of treasury stock reissued for equity incentive plans (167,862 ) Treasury stock balance at April 30, 2019 22,483,529 $ 47.40 | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables summarize the change in the components of AOCI for the three months ended April 30, 2019 and 2018 : Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total Balance at January 31, 2019 $ 43,786 $ — $ 43,786 Other comprehensive income (loss) before reclassification (40,523 ) (575 ) (41,098 ) Reclassification of (gain) loss from AOCI into income — 364 364 Balance at April 30, 2019 $ 3,263 $ (211 ) $ 3,052 | Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total Balance at January 31, 2018 $ 288,292 $ — $ 288,292 Other comprehensive income (loss) before reclassification (88,252 ) — (88,252 ) Reclassification of (gain) loss from AOCI into income — — — Balance at April 30, 2018 $ 200,040 $ — $ 200,040 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Balance Sheet Classification of Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents the contractual maturities of the Company's operating lease liabilities as of April 30, 2019 : Fiscal year: (in thousands) 2020 (remaining 9 months) $ 49,173 2021 58,975 2022 39,114 2023 28,405 2024 21,325 Thereafter 35,172 Total payments $ 232,164 Less amount of lease payments representing interest (26,395 ) Total present value of lease payments $ 205,769 |
Schedule Of Assets And Liabilities Lease Table [Table Text Block] | The following amounts were recorded in the Company's Consolidated Balance Sheet as of April 30, 2019 : Operating leases Balance sheet location April 30, 2019 (in thousands) Operating lease right-of-use assets Other assets, net $ 206,773 Current operating lease liabilities Accrued expenses and other liabilities 63,411 Non-current operating lease liabilities Other long-term liabilities 142,358 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental cash flow information related to the Company's operating leases is as follows: Cash flow information Three months ended April 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: $ 17,515 Non-cash right-of-use assets obtained in exchange for lease liabilities: 6,183 |
Lessee, Operating Lease, Disclosure [Table Text Block] | The weighted-average remaining lease term and discount rate were as follows as of April 30, 2019 : Operating lease term and discount rate Operating Leases Weighted-average remaining lease term 4.9 years Weighted-average discount rate 4.8 % |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information by geographic segment is as follows (in thousands): Three months ended April 30, 2019 2018 Net sales: Americas (1) $ 3,789,198 $ 3,618,206 Europe 4,309,500 4,661,702 Asia-Pacific 307,726 268,411 Total $ 8,406,424 $ 8,548,319 Operating income (loss): Americas (2) $ 68,633 $ 61,342 Europe (3) 36,420 17,318 Asia-Pacific 876 (577 ) Stock-based compensation expense (8,305 ) (7,587 ) Total $ 97,624 $ 70,496 Depreciation and amortization: Americas $ 23,649 $ 23,259 Europe 11,510 14,991 Asia-Pacific 2,098 2,231 Total $ 37,257 $ 40,481 Capital expenditures: Americas $ 8,272 $ 4,379 Europe 6,127 3,717 Asia-Pacific 880 359 Total $ 15,279 $ 8,455 As of: April 30, 2019 January 31, 2019 Identifiable assets: Americas $ 5,517,978 $ 5,402,316 Europe 6,194,424 6,970,822 Asia-Pacific 599,347 613,414 Total $ 12,311,749 $ 12,986,552 Long-lived assets: Americas (1) $ 215,504 $ 217,863 Europe 51,481 52,162 Asia-Pacific 4,921 4,892 Total $ 271,906 $ 274,917 Goodwill & acquisition-related intangible assets, net: Americas $ 1,070,187 $ 1,083,699 Europe 560,214 575,776 Asia-Pacific 58,582 60,154 Total $ 1,688,983 $ 1,719,629 (1) Net sales in the United States represented 88% and 87% , respectively, of the total Americas' net sales for the three months ended April 30, 2019 and 2018 . Total long-lived assets in the United States represented 96% of the Americas' total long-lived assets at both April 30, 2019 and January 31, 2019 . (2) Operating income in the Americas for the three months ended April 30, 2019 and 2018 includes acquisition, integration and restructuring expenses of $2.9 million and $13.9 million , respectively (see further discussion in Note 3 – Acquisition, Integration and Restructuring Expenses ). Operating income in the Americas includes a gain related to legal settlements and other, net, of $0.3 million and $3.0 million for the three months ended April 30, 2019 and 2018 (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies). (3) Operating income in Europe for the three months ended April 30, 2019 and 2018 includes acquisition, integration and restructuring expenses of $3.0 million and $18.0 million |
Business And Summary Of Signi_4
Business And Summary Of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | |||
Accounts receivable sold | $ 800 | $ 1,100 | |
Discount fees on sale of accounts receivable | $ 3.7 | $ 2.7 | |
Apple | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 14.00% | |
Cisco Systems, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 11.00% | |
HP, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 12.00% |
Business And Summary Of Signi_5
Business And Summary Of Significant Accounting Policies | Recently Adopted Accounting Standards (Details) $ in Thousands | Apr. 30, 2019USD ($) |
New Accounting Pronouncement | |
Operating Lease, Right-of-Use Asset | $ 206,773 |
Operating Lease, Liability | $ 205,769 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 55,400 | $ 33,699 |
Weighted average common shares - basic | 37,011,000 | 38,281,000 |
Equity based awards | 236,000 | 280,000 |
Weighted average common shares - diluted | 37,247,000 | 38,561,000 |
Basic Earnings Per Share | $ 1.50 | $ 0.88 |
Diluted Earnings Per Share | $ 1.49 | $ 0.87 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 322 | 8,439 |
Acquisition, Integration and _3
Acquisition, Integration and Restructuring Expenses | TS Acquisition (Details) $ in Billions | 1 Months Ended |
Feb. 28, 2017USD ($)shares | |
Business Acquisition | |
Business Acquisition, Effective Date of Acquisition | Feb. 27, 2017 |
TS | |
Business Acquisition | |
Payments to Acquire Businesses, Gross | $ 2.5 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,785,402 |
Business Combination, Consideration Transferred | $ 2.8 |
Acquisition, Integration and _4
Acquisition, Integration and Restructuring Expenses | TS Acquisition, Integration and Restructuring Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | $ 6,221 | $ 33,225 |
TS | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | 27,617 | |
TS | Restructuring Charges | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | 10,872 | |
TS | IT Related Costs [Member] | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | 7,330 | |
TS | Professional services | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | 3,567 | |
TS | Transaction Related Costs [Member] | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | 878 | |
TS | Other Expense | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | 4,970 | |
Americas | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | 2,900 | 13,900 |
Americas | Restructuring Charges | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | 3,400 | |
Europe | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | $ 3,000 | 18,000 |
Europe | Restructuring Charges | ||
Acquisition and integration expenses [Line Items] | ||
Business Combination, Acquisition Related Costs | $ 7,500 |
Acquisition, Integration and _5
Acquisition, Integration and Restructuring Expenses | Global Business Optimization Program (Details) - Global Business Optimization Program - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Restructuring Cost and Reserve | ||
Restructuring Charges | $ 6,221 | $ 5,608 |
Restructuring and Related Cost, Cost Incurred to Date | 48,762 | |
Restructuring Charges | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 6,221 | |
Employee Severance | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 4,147 | 3,269 |
Restructuring and Related Cost, Cost Incurred to Date | 30,574 | |
Professional services | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 2,074 | 2,339 |
Restructuring and Related Cost, Cost Incurred to Date | 18,188 | |
Minimum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 70,000 | |
Maximum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 80,000 | |
Europe | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 3,000 | 4,700 |
Europe | Minimum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 40,000 | |
Europe | Maximum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 45,000 | |
Americas | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 2,900 | $ 900 |
Americas | Minimum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 30,000 | |
Americas | Maximum | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Expected Cost | 35,000 | |
Asia-Pacific | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | $ 300 |
Acquisition, Integration and _6
Acquisition, Integration and Restructuring Expenses | Global Business Optimization Restructuring Activity (Details) - Global Business Optimization Program - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 6,221 | $ 5,608 |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve - Beginning Balance | 14,798 | |
Restructuring Charges | 4,147 | 3,269 |
Payments for Restructuring | 5,188 | |
Restructuring Reserve, Translation and Other Adjustment | (242) | |
Restructuring Reserve - Ending Balance | 13,515 | |
Professional services | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve - Beginning Balance | 631 | |
Restructuring Charges | 2,074 | $ 2,339 |
Payments for Restructuring | 1,725 | |
Restructuring Reserve, Translation and Other Adjustment | (16) | |
Restructuring Reserve - Ending Balance | 964 | |
Restructuring Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve - Beginning Balance | 15,429 | |
Restructuring Charges | 6,221 | |
Payments for Restructuring | 6,913 | |
Restructuring Reserve, Translation and Other Adjustment | (258) | |
Restructuring Reserve - Ending Balance | $ 14,479 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 | Jan. 31, 2017 |
Debt Instrument | |||
Other Long-term Debt | $ 10,511 | $ 15,817 | |
Debt and Capital Lease Obligations | 1,421,035 | 1,410,922 | |
Less-current maturities (included as Revolving credit loans and current portion of long-term debt, net) | (123,092) | (110,368) | |
Long-term Debt and Capital Lease Obligations | 1,297,943 | 1,300,554 | |
Senior Notes | |||
Debt Instrument | |||
Unamortized debt discount and debt issuance costs | (6,788) | (7,166) | |
Senior Notes, net | 993,212 | 992,834 | |
Senior Notes | 3.70% Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | 500,000 | 500,000 | $ 500,000 |
Senior Notes | 4.95% Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | 500,000 | 500,000 | $ 500,000 |
Term Loan | |||
Debt Instrument | |||
Loans Payable | 300,000 | 300,000 | |
Other Committed And Uncommitted Revolving Credit Facilities | |||
Debt Instrument | |||
Revolving Credit Loan | 117,312 | 102,271 | |
Fair Value, Inputs, Level 1 | Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Fair Value Disclosure | $ 1,010,000 | $ 988,000 |
Debt | Senior Notes (Details)
Debt | Senior Notes (Details) - Senior Notes - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 | Jan. 31, 2017 |
3.70% Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | $ 500,000 | $ 500,000 | $ 500,000 |
Debt Instrument, Redemption Price, Discounted Scheduled Payments, Discount Rate, Basis Spread on Variable Rate | 0.30% | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | ||
4.95% Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Face Amount | $ 500,000 | $ 500,000 | $ 500,000 |
Debt Instrument, Redemption Price, Discounted Scheduled Payments, Discount Rate, Basis Spread on Variable Rate | 0.40% | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.95% |
Debt | Other Credit Facilities
Debt | Other Credit Facilities (Details) - USD ($) | Apr. 30, 2019 | Jan. 31, 2019 | Nov. 02, 2016 |
Line of Credit Facility | |||
Accounts receivable, net | $ 5,423,370,000 | $ 6,241,740,000 | |
Standby Letters Of Credit | 25,600,000 | ||
Credit Agreement | |||
Line of Credit Facility | |||
Line of Credit, Amount Outstanding | 0 | 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000,000 | ||
Term loan credit agreement | |||
Line of Credit Facility | |||
Debt Instrument, Face Amount | $ 1,000,000,000 | ||
Term loan credit agreement | 5 year maturity | |||
Line of Credit Facility | |||
Other Loans Payable, Long-term, Noncurrent | $ 300,000,000 | $ 300,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 3.99% | |
Receivables Securitization Program | |||
Line of Credit Facility | |||
Line of Credit, Amount Outstanding | $ 0 | $ 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | 750,000,000 | |
Accounts receivable, net | 1,700,000,000 | 1,700,000,000 | |
Other Committed And Uncommitted Revolving Credit Facilities | |||
Line of Credit Facility | |||
Line of Credit, Amount Outstanding | 117,312,000 | $ 102,271,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,800,000 | ||
Line of Credit Facility, Interest Rate at Period End | 8.11% | 8.05% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock-based compensation expense | $ 8,305 | $ 7,587 |
Number of Shares Authorized | 2,000,000 | |
Number of Shares Available for Grant | 1,700,000 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award Vesting Period | 3 years | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award Vesting Period | 1 year | |
Restricted Stock Units (RSUs) | ||
Stock-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | ||
Nonvested at January 31, 2019 | 649,122 | |
Granted | 209,700 | |
Vested | (229,536) | |
Canceled | (10,278) | |
Nonvested at April 30, 2019 | 619,008 | |
Performance Based Restricted Stock Units (PSRUs) | ||
Stock-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | ||
Nonvested at January 31, 2019 | 293,216 | |
Granted | 108,771 | |
Vested | (16,996) | |
Canceled | (5,039) | |
Nonvested at April 30, 2019 | 379,952 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life Insurance, Corporate or Bank Owned, Amount | $ 42,600 | $ 39,200 |
Deferred Compensation Liability, Current and Noncurrent | 42,200 | 39,100 |
Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Carrying Value of Senior Notes, net | 993,212 | 992,834 |
Fair Value, Inputs, Level 1 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt Instrument, Fair Value Disclosure | 1,010,000 | 988,000 |
Fair Value, Inputs, Level 2 | Other Current Assets [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 92 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 120 | 0 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 4,767 | 3,830 |
Fair Value, Inputs, Level 2 | Other Noncurrent Assets [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 2,720 | 0 |
Fair Value, Inputs, Level 2 | Other Current Liabilities [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 695 | 0 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 5,066 | $ 6,641 |
Derivative Instruments | Net In
Derivative Instruments | Net Investment Hedge Notional Amounts (Details) $ in Millions | Apr. 30, 2019USD ($) |
Maturity Year One [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 4.6 |
Maturity Year Two [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 9.3 |
Maturity Year Three [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 9.3 |
Maturity Year Four [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 254.6 |
Net Investment Hedging [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 277.8 |
Derivative Instruments | Net _2
Derivative Instruments | Net Investment Hedges - Impact on AOCI (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2019USD ($) | |
Net Investment Hedges - Impact on AOCI [Abstract] | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 2,496 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 316 |
Derivative Instruments | Cash F
Derivative Instruments | Cash Flow Hedges - Impact on AOCI (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2019USD ($) | |
Cash Flow Hedges - Impact on AOCI [Line Items] | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ (575) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (364) |
Interest Expense | |
Cash Flow Hedges - Impact on AOCI [Line Items] | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 120 |
Other Nonoperating Income (Expense) [Member] | |
Cash Flow Hedges - Impact on AOCI [Line Items] | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | $ (484) |
Derivative Instruments | Deriva
Derivative Instruments | Derivatives not Designated as Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 0.6 | $ (0.7) |
Cost of Sales [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 0.9 | 6.6 |
Nonoperating Income (Expense) [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (0.3) | $ (7.3) |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Derivative [Line Items] | ||
Weighted Average Notional Amount Of Foreign Currency Derivatives | $ 1,300 | $ 1,400 |
Derivative, Average Remaining Maturity | 24 days | 30 days |
Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 4.5 |
Shareholders' Equity | Company'
Shareholders' Equity | Company's Common Share Repurchase and Issuance Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Apr. 30, 2019 | Feb. 26, 2019 | Jan. 31, 2019 | Oct. 02, 2018 | |
Equity [Abstract] | ||||
Stock Repurchase Program, Authorized Amount | $ 300 | $ 200 | ||
Stock Repurchase Program Additional Authorized Amount | $ 100 | |||
Increase (Decrease) in Treasury Stock | ||||
Treasury stock balance at January 31, 2019 | 22,305,464 | |||
Shares of treasury stock repurchased | 345,927 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 103.15 | |||
Treasury stock balance at April 30, 2019 | 22,483,529 | |||
Treasury Stock Held, Average Cost Per Share | $ 47.40 | $ 46.53 | ||
Equity Incentive Plans | ||||
Increase (Decrease) in Treasury Stock | ||||
Shares of Treasury Stock Reissued for Equity Incentive Plans | 167,862 |
Shareholders' Equity | Componen
Shareholders' Equity | Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 43,786 | $ 288,292 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (41,098) | (88,252) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 364 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 3,052 | 200,040 |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 43,786 | 288,292 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (40,523) | (88,252) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 3,263 | 200,040 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (575) | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 364 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (211) | $ 0 |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2019USD ($)Rate | |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 4.80% |
Operating Leases, Rent Expense | $ | $ 21.6 |
Leases | Maturities of Operatin
Leases | Maturities of Operating Lease Liabilities (Details) $ in Thousands | Apr. 30, 2019USD ($) |
Maturities of Operating Lease Liabilities [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 49,173 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 58,975 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 39,114 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 28,405 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 21,325 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 35,172 |
Lessee, Operating Lease, Liability, Payments, Due | 232,164 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (26,395) |
Operating Lease, Liability | $ 205,769 |
Leases | Balance Sheet Classifi
Leases | Balance Sheet Classification of Leases (Details) $ in Thousands | Apr. 30, 2019USD ($) |
Balance Sheet Classification of Leases [Abstract] | |
Operating Lease, Right-of-Use Asset | $ 206,773 |
Operating Lease, Liability, Current | 63,411 |
Operating Lease, Liability, Noncurrent | $ 142,358 |
Leases | Supplemental Cash Flow
Leases | Supplemental Cash Flow Information Pertaining to Leases (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2019USD ($) | |
Supplemental Cash Flow Information Pertaining to Leases [Abstract] | |
Operating Lease, Payments | $ 17,515 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 6,183 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Apr. 30, 2019USD ($) |
Brazil | |
Loss Contingencies | |
Loss Contingency, Estimate of Possible Loss | $ 19.4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | ||
Segment Reporting Information | ||||
Revenues | $ 8,406,424 | $ 8,548,319 | ||
Operating income (loss): | 97,624 | 70,496 | ||
Stock-based compensation expense | (8,305) | (7,587) | ||
Depreciation and amortization: | 37,257 | 40,481 | ||
Capital expenditures: | 15,279 | 8,455 | ||
Identifiable assets: | 12,311,749 | $ 12,986,552 | ||
Long-lived assets: | 271,906 | 274,917 | ||
Goodwill & acquisition-related intangible assets, net: | 1,688,983 | 1,719,629 | ||
Legal settlements and other, net | (282) | (2,965) | ||
Acquisition, integration and restructuring expenses | 6,221 | 33,225 | ||
Americas | ||||
Segment Reporting Information | ||||
Revenues | [1] | 3,789,198 | 3,618,206 | |
Operating income (loss): | [2] | 68,633 | 61,342 | |
Depreciation and amortization: | $ 23,649 | $ 23,259 | ||
Sales to unaffiliated customers, as percentage of total sales | 88.00% | 87.00% | ||
Capital expenditures: | $ 8,272 | $ 4,379 | ||
Identifiable assets: | 5,517,978 | 5,402,316 | ||
Long-lived assets: | [1] | 215,504 | 217,863 | |
Goodwill & acquisition-related intangible assets, net: | $ 1,070,187 | $ 1,083,699 | ||
Long-lived assets, as percentage of total assets | 96.00% | 96.00% | ||
Legal settlements and other, net | $ (300) | (3,000) | ||
Acquisition, integration and restructuring expenses | 2,900 | 13,900 | ||
Europe | ||||
Segment Reporting Information | ||||
Revenues | 4,309,500 | 4,661,702 | ||
Operating income (loss): | [3] | 36,420 | 17,318 | |
Depreciation and amortization: | 11,510 | 14,991 | ||
Capital expenditures: | 6,127 | 3,717 | ||
Identifiable assets: | 6,194,424 | $ 6,970,822 | ||
Long-lived assets: | 51,481 | 52,162 | ||
Goodwill & acquisition-related intangible assets, net: | 560,214 | 575,776 | ||
Acquisition, integration and restructuring expenses | 3,000 | 18,000 | ||
Asia-Pacific | ||||
Segment Reporting Information | ||||
Revenues | 307,726 | 268,411 | ||
Operating income (loss): | 876 | (577) | ||
Depreciation and amortization: | 2,098 | 2,231 | ||
Capital expenditures: | 880 | $ 359 | ||
Identifiable assets: | 599,347 | 613,414 | ||
Long-lived assets: | 4,921 | 4,892 | ||
Goodwill & acquisition-related intangible assets, net: | $ 58,582 | $ 60,154 | ||
[1] | Net sales in the United States represented 88% and 87% , respectively, of the total Americas' net sales for the three months ended April 30, 2019 and 2018 . Total long-lived assets in the United States represented 96% of the Americas' total long-lived assets at both April 30, 2019 and January 31, 2019 . | |||
[2] | Operating income in the Americas for the three months ended April 30, 2019 and 2018 includes acquisition, integration and restructuring expenses of $2.9 million and $13.9 million , respectively (see further discussion in Note 3 – Acquisition, Integration and Restructuring Expenses ). Operating income in the Americas includes a gain related to legal settlements and other, net, of $0.3 million and $3.0 million for the three months ended April 30, 2019 and 2018 (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies). | |||
[3] | Operating income in Europe for the three months ended April 30, 2019 and 2018 includes acquisition, integration and restructuring expenses of $3.0 million and $18.0 million , respectively. |
Subsequent Events | Subsequent
Subsequent Events | Subsequent Events (Details) - Credit Agreement - USD ($) $ in Millions | May 15, 2019 | Apr. 30, 2019 |
Subsequent Event [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 1,500 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,750 |