Document And Entity Information
Document And Entity Information - $ / shares | 6 Months Ended | ||
Jul. 31, 2019 | Aug. 29, 2019 | Jan. 31, 2019 | |
Document and Entity Information [Abstract] | |||
Title of 12(b) Security | Common stock, par value $.0015 per share | ||
Common Stock, Par or Stated Value Per Share | $ 0.0015 | $ 0.0015 | |
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-14625 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | Q2 | ||
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 | 35,601,760 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Address, Address Line One | 5350 Tech Data Drive | ||
Entity Address, City or Town | Clearwater | ||
Entity Address, State or Province | FL | ||
Entity Tax Identification Number | 59-1578329 | ||
Entity Address, Postal Zip Code | 33760 | ||
City Area Code | 727 | ||
Local Phone Number | 539-7429 | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 738,265 | $ 799,123 |
Accounts receivable, net | 5,390,102 | 6,241,740 |
Inventories | 3,115,899 | 3,297,385 |
Prepaid expenses and other assets | 360,027 | 354,601 |
Total current assets | 9,604,293 | 10,692,849 |
Property and equipment, net | 273,128 | 274,917 |
Goodwill | 880,657 | 892,990 |
Intangible assets, net | 899,076 | 950,858 |
Other assets, net | 397,901 | 174,938 |
Total assets | 12,055,055 | 12,986,552 |
Current liabilities: | ||
Accounts payable | 6,459,858 | 7,496,466 |
Accrued expenses and other liabilities | 987,418 | 1,000,126 |
Revolving credit loans and current maturities of long-term debt, net | 128,453 | 110,368 |
Total current liabilities | 7,575,729 | 8,606,960 |
Long-term debt, less current maturities | 1,297,212 | 1,300,554 |
Other long-term liabilities | 292,492 | 142,315 |
Total liabilities | 9,165,433 | 10,049,829 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity: | ||
Common stock, par value $.0015; 200,000,000 shares authorized; 59,245,585 shares issued at July 31, 2019 and January 31, 2019 | 89 | 89 |
Additional paid-in capital | 843,159 | 844,206 |
Treasury stock, at cost (23,288,420 and 22,305,464 shares at July 31, 2019 and January 31, 2019) | (1,146,289) | (1,037,872) |
Retained earnings | 3,221,164 | 3,086,514 |
Accumulated other comprehensive (loss) income | (28,501) | 43,786 |
Total shareholders' equity | 2,889,622 | 2,936,723 |
Total liabilities and shareholders' equity | $ 12,055,055 | $ 12,986,552 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Jul. 31, 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 | 23,288,420 | 22,305,464 |
Consolidated Statement Of Incom
Consolidated Statement Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 9,092,244 | $ 8,886,101 | $ 17,498,668 | $ 17,434,420 |
Cost of products sold | 8,530,594 | 8,359,071 | 16,427,639 | 16,384,273 |
Gross profit | 561,650 | 527,030 | 1,071,029 | 1,050,147 |
Selling, general and administrative expenses | 431,694 | 415,319 | 837,510 | 837,680 |
Acquisition, integration and restructuring expenses | 5,209 | 13,297 | 11,430 | 46,522 |
Legal settlements and other, net | 0 | (5,234) | (282) | (8,199) |
Gain on disposal of subsidiary | 0 | (6,717) | 0 | (6,717) |
Operating expenses | 436,903 | 416,665 | 848,658 | 869,286 |
Operating income | 124,747 | 110,365 | 222,371 | 180,861 |
Interest expense | 20,986 | 28,053 | 47,243 | 53,975 |
Other expense, net | 2,896 | 901 | 2,203 | 2,818 |
Income before income taxes | 100,865 | 81,411 | 172,925 | 124,068 |
Provision for income taxes | 21,615 | 5,545 | 38,275 | 14,503 |
Net income | $ 79,250 | $ 75,866 | $ 134,650 | $ 109,565 |
Earnings per share: | ||||
Basic | $ 2.17 | $ 1.97 | $ 3.67 | $ 2.86 |
Diluted | $ 2.16 | $ 1.97 | $ 3.64 | $ 2.84 |
Weighted average common shares outstanding: | ||||
Basic | 36,476 | 38,428 | 36,739 | 38,356 |
Diluted | 36,661 | 38,566 | 36,964 | 38,565 |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 79,250 | $ 75,866 | $ 134,650 | $ 109,565 |
Other comprehensive loss: | ||||
Foreign currency translation adjustment, net of tax | (31,822) | (102,055) | (72,345) | (190,307) |
Unrealized gain on cash flow hedges, net of tax | 269 | 0 | 58 | 0 |
Other comprehensive income (loss) | (31,553) | (102,055) | (72,287) | (190,307) |
Total comprehensive income (loss) | $ 47,697 | $ (26,189) | $ 62,363 | $ (80,742) |
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 Balance at Jan. 31, 2018 | $ 2,921,492 | $ 89 | $ 827,301 | $ (940,124) | $ 2,745,934 | $ 288,292 |
Issuance of treasury stock for benefit plan and equity-based awards exercised | (5,814) | 0 | (12,771) | 6,957 | 0 | 0 |
Stock-based compensation expense | 7,587 | 0 | 7,587 | 0 | 0 | 0 |
Other comprehensive income (loss) | (88,252) | 0 | 0 | 0 | 0 | (88,252) |
Net income | 33,699 | 0 | 0 | 0 | 33,699 | 0 |
Stockholders' Equity Balance at Apr. 30, 2018 | $ 2,868,712 | 89 | 822,117 | (933,167) | 2,779,633 | 200,040 |
Common Stock, Shares, Issued at Jan. 31, 2018 | 59,246,000 | |||||
Stockholders' Equity Balance at Jan. 31, 2018 | $ 2,921,492 | 89 | 827,301 | (940,124) | 2,745,934 | 288,292 |
Other comprehensive income (loss) | (190,307) | |||||
Net income | 109,565 | |||||
Stockholders' Equity Balance at Jul. 31, 2018 | $ 2,850,711 | 89 | 829,002 | (931,864) | 2,855,499 | 97,985 |
Common Stock, Shares, Issued at Apr. 30, 2018 | 59,246,000 | |||||
Stockholders' Equity Balance at Apr. 30, 2018 | $ 2,868,712 | 89 | 822,117 | (933,167) | 2,779,633 | 200,040 |
Issuance of treasury stock for benefit plan and equity-based awards exercised | 220 | 0 | (1,083) | 1,303 | 0 | 0 |
Stock-based compensation expense | 7,968 | 0 | 7,968 | 0 | 0 | 0 |
Other comprehensive income (loss) | (102,055) | 0 | 0 | 0 | 0 | (102,055) |
Net income | 75,866 | 0 | 0 | 0 | 75,866 | 0 |
Stockholders' Equity Balance at Jul. 31, 2018 | $ 2,850,711 | 89 | 829,002 | (931,864) | 2,855,499 | 97,985 |
Common Stock, Shares, Issued at Jan. 31, 2019 | 59,246,000 | |||||
Stockholders' Equity Balance at Jan. 31, 2019 | $ 2,936,723 | 89 | 844,206 | (1,037,872) | 3,086,514 | 43,786 |
Repurchases of common stock | (35,681) | 0 | 0 | (35,681) | 0 | 0 |
Issuance of treasury stock for benefit plan and equity-based awards exercised | (8,107) | 0 | (16,003) | 7,896 | 0 | 0 |
Stock-based compensation expense | 8,305 | 0 | 8,305 | 0 | 0 | 0 |
Other comprehensive income (loss) | (40,734) | 0 | 0 | 0 | 0 | (40,734) |
Net income | 55,400 | 0 | 0 | 0 | 55,400 | 0 |
Stockholders' Equity Balance at Apr. 30, 2019 | $ 2,915,906 | 89 | 836,508 | (1,065,657) | 3,141,914 | 3,052 |
Common Stock, Shares, Issued at Jan. 31, 2019 | 59,246,000 | |||||
Stockholders' Equity Balance at Jan. 31, 2019 | $ 2,936,723 | 89 | 844,206 | (1,037,872) | 3,086,514 | 43,786 |
Other comprehensive income (loss) | (72,287) | |||||
Net income | 134,650 | |||||
Stockholders' Equity Balance at Jul. 31, 2019 | $ 2,889,622 | 89 | 843,159 | (1,146,289) | 3,221,164 | (28,501) |
Common Stock, Shares, Issued at Apr. 30, 2019 | 59,246,000 | |||||
Stockholders' Equity Balance at Apr. 30, 2019 | $ 2,915,906 | 89 | 836,508 | (1,065,657) | 3,141,914 | 3,052 |
Repurchases of common stock | (82,011) | 0 | 0 | (82,011) | 0 | 0 |
Issuance of treasury stock for benefit plan and equity-based awards exercised | (25) | 0 | (1,404) | 1,379 | 0 | 0 |
Stock-based compensation expense | 8,055 | 0 | 8,055 | 0 | 0 | 0 |
Other comprehensive income (loss) | (31,553) | 0 | 0 | 0 | 0 | (31,553) |
Net income | 79,250 | 0 | 0 | 0 | 79,250 | 0 |
Stockholders' Equity Balance at Jul. 31, 2019 | $ 2,889,622 | $ 89 | $ 843,159 | $ (1,146,289) | $ 3,221,164 | $ (28,501) |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Cash flows from operating activities: | ||
Cash received from customers | $ 23,717,345 | $ 22,873,693 |
Cash paid to vendors and employees | (23,530,536) | (22,793,148) |
Interest paid, net | (46,204) | (48,829) |
Income taxes paid | (37,767) | (37,179) |
Net cash provided by (used in) operating activities | 102,838 | (5,463) |
Cash flows from investing activities: | ||
Proceeds from sale of business, net of cash divested | 0 | 8,985 |
Acquisition of businesses, net of cash acquired | 0 | (2,818) |
Expenditures for property and equipment | (18,806) | (14,131) |
Software and software development costs | (14,704) | (8,592) |
Other | 117 | 1,096 |
Net cash used in investing activities | (33,393) | (15,460) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | (7,368) | (105,845) |
Cash paid for debt issuance costs | (3,909) | 0 |
Net borrowings (repayments) on revolving credit loans | 19,786 | (8,700) |
Payments for employee tax withholdings on equity awards | (9,134) | (6,702) |
Proceeds from the reissuance of treasury stock | 1,002 | 920 |
Payments for Repurchase of Common Stock | (117,692) | 0 |
Net cash used in financing activities | (117,315) | (120,327) |
Effect of exchange rate changes on cash and cash equivalents | (12,988) | (21,519) |
Net decrease in cash and cash equivalents | (60,858) | (162,769) |
Cash and cash equivalents at beginning of year | 799,123 | 955,628 |
Cash and cash equivalents at end of period | 738,265 | 792,859 |
Reconciliation of net income to net cash provided by (used in) operating activities: | ||
Net income | 134,650 | 109,565 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Gain on disposal of subsidiary | 0 | (6,717) |
Depreciation and amortization | 74,759 | 80,399 |
Provision for losses on accounts receivable | 14,432 | 6,270 |
Stock-based compensation expense | 16,360 | 15,555 |
Accretion of debt discount and debt issuance costs | 1,700 | 1,805 |
Deferred income taxes | (1,879) | (11,396) |
Changes in operating assets and liabilities, net of acquisitions and disposition: | ||
Accounts receivable | 737,724 | 602,579 |
Inventories | 139,997 | (166,800) |
Prepaid expenses and other assets | (10,535) | (40,180) |
Accounts payable | (923,917) | (486,900) |
Accrued expenses and other liabilities | (80,453) | (109,643) |
Total adjustments | (31,812) | (115,028) |
Net cash provided by (used in) operating activities | $ 102,838 | $ (5,463) |
Business And Summary Of Signifi
Business And Summary Of Significant Accounting Policies (Notes) | 6 Months Ended |
Jul. 31, 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 July 31, 2019 , its consolidated statements of income, comprehensive income (loss), and shareholders' equity for the three and six months ended July 31, 2019 and 2018 , and its consolidated cash flows for the six months ended July 31, 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 and six months ended July 31, 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 13 – 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 the three and six months ended July 31, 2019 and 2018 (as a percent of consolidated net sales): Three months ended July 31, Six months ended July 31, 2019 2018 2019 2018 Apple, Inc. 14% 14% 13% 14% Cisco Systems, Inc. 12% 11% 11% 11% HP Inc. 11% 12% 11% 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 July 31, 2019 and January 31, 2019 , the Company had a total of $938 million and $1.1 billion , respectively, of outstanding accounts receivable sold to and held by financial institutions under these agreements. During the three months ended July 31, 2019 and 2018 , discount fees recorded under these facilities were $4.0 million and $3.7 million , respectively, and during the six months ended July 31, 2019 and 2018 , discount fees recorded under these facilities were $7.7 million and $6.3 million , respectively. These discount fees are included as a component of "other 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 initial 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 11 – 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 had no 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. Reclassifications Certain reclassifications have been made to the prior period amounts to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 6 Months Ended |
Jul. 31, 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 7 – Stock-Based Compensation for further discussion) using the treasury stock method. The composition of basic and diluted EPS is as follows: Three months ended July 31, Six months ended July 31, 2019 2018 2019 2018 (in thousands, except per share data) Net income $ 79,250 $ 75,866 $ 134,650 $ 109,565 Weighted average common shares - basic 36,476 38,428 36,739 38,356 Effect of dilutive securities: Equity based awards 185 138 225 209 Weighted average common shares - diluted 36,661 38,566 36,964 38,565 Earnings per share: Basic $ 2.17 $ 1.97 $ 3.67 $ 2.86 Diluted $ 2.16 $ 1.97 $ 3.64 $ 2.84 For the three months ended July 31, 2019 and 2018 , there were 692 and 46,727 shares, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the six months ended July 31, 2019 and 2018 , there were 692 and 46,212 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) | 6 Months Ended |
Jul. 31, 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 (income) 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 (income) costs includes a gain of $9.6 million related to the final working capital adjustment for the acquisition of TS as part of a settlement agreement with Avnet, as well as 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 and six months ended July 31, 2019 and does not expect to incur any additional costs in future periods. Acquisition, integration and restructuring expenses for the three and six months ended July 31, 2018 related to the acquisition of TS are comprised of the following : Three months ended July 31, Six months ended July 31, 2018 2018 (in thousands) Restructuring costs $ 3,777 $ 14,649 IT related costs 1,156 8,486 Professional services 839 4,406 Transaction related costs 315 1,193 Other (income) costs (5,525 ) (555 ) Total $ 562 $ 28,179 During the three months ended July 31, 2018 , the Company recorded restructuring costs related to the acquisition of TS of $0.1 million in the Americas and $3.7 million in Europe. During the six months ended July 31, 2018 , the Company recorded restructuring costs related to the acquisition of TS of $3.5 million in the Americas and $11.1 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 July 31, Six months ended July 31, Cumulative Amounts Incurred to Date 2019 2018 2019 2018 (in thousands) Severance costs $ 3,187 $ 5,605 $ 7,334 $ 8,874 $ 33,761 Professional services and other costs 2,022 7,130 4,096 9,469 20,210 Total $ 5,209 $ 12,735 $ 11,430 $ 18,343 $ 53,971 Restructuring costs related to the GBO Program by segment are as follows: Three months ended July 31, Six months ended July 31, 2019 2018 2019 2018 (in thousands) Americas $ 1,341 $ 6,485 $ 4,252 $ 7,336 Europe 3,229 6,125 6,253 10,882 Asia-Pacific 639 125 925 125 Total $ 5,209 $ 12,735 $ 11,430 $ 18,343 Restructuring activity during the six months ended July 31, 2019 related to the GBO Program is as follows: Six months ended July 31, 2019 Severance Professional services and other costs Total (in thousands) Balance at January 31, 2019 $ 14,798 $ 631 $ 15,429 Fiscal 2020 restructuring expenses 7,334 4,096 11,430 Cash payments (10,297 ) (3,825 ) (14,122 ) Foreign currency translation (220 ) (15 ) (235 ) Balance at July 31, 2019 $ 11,615 $ 887 $ 12,502 |
Gain on Disposal of Subsidiary
Gain on Disposal of Subsidiary (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 4 — GAIN ON DISPOSAL OF SUBSIDIARY During the second quarter of fiscal 2019, the Company executed an agreement to sell certain of its operations in Ireland for a total sales price of approximately $15.3 million . The Company recorded a gain on sale of $6.7 million during the three and six months ended July 31, 2018 , which includes the reclassification of $5.1 million from accumulated other comprehensive income for cumulative translation adjustments associated with the Company’s investment in this foreign entity. The operating results of this entity during the three and six months ended July 31, 2018 were insignificant relative to the Company's consolidated financial results. |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 5 — DEBT The carrying value of the Company's outstanding debt consists of the following (in thousands): As of: July 31, 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 (6,410 ) (7,166 ) Senior Notes, net 993,590 992,834 Term Loans, interest rate of 6.00% and 3.99% at July 31, 2019 and January 31, 2019, respectively 300,000 300,000 Other committed and uncommitted revolving credit facilities, average interest rate of 8.08% and 8.05% at July 31, 2019 and January 31, 2019, respectively 123,759 102,271 Other long-term debt 8,316 15,817 1,425,665 1,410,922 Less—current maturities (included as “revolving credit loans and current maturities of long-term debt, net”) (128,453 ) (110,368 ) Total long-term debt $ 1,297,212 $ 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 The Company has a $1.5 billion revolving credit facility with a syndicate of banks (the “Credit Agreement”) which, among other things, provides for (i) a maturity date of May 15, 2024, (ii) an interest rate on borrowings, facility fees and letter of credit fees based on the Company’s debt rating, (iii) the ability to increase the facility to a maximum of $1.75 billion , subject to certain conditions and (iv) 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. There were no amounts outstanding under the Credit Agreement at July 31, 2019 and January 31, 2019 . The Company entered into a term loan credit agreement in November 2016 with a syndicate of banks (the "2016 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 paid interest on advances under the 2016 Term Loan Credit Agreement at a variable rate based on LIBOR plus a predetermined margin based on the Company's debt rating. The Company had $300 million outstanding under the 2016 Term Loan Credit Agreement at both July 31, 2019 and January 31, 2019 . On August 2, 2019, the Company entered into a new term loan credit agreement (the “2019 Term Loan Credit Agreement”), the proceeds of which were used to repay in full the amounts outstanding under the 2016 Term Loan Credit Agreement. The 2019 Term Loan Credit Agreement, among other things, (i) provides for a $300 million term loan credit facility with a maturity date of August 2, 2021, (ii) provides for an interest rate on the outstanding principal amount of the loan that is based on LIBOR plus a predetermined margin, and (iii) may be increased up to a total of $500 million , subject to certain conditions. The Company also has an agreement with a syndicate of banks (the “Receivables Securitization Program”) that allows the Company to transfer an undivided interest in a designated pool of U.S. accounts receivable, on an ongoing basis, to provide collateral for borrowings up to a maximum of $1.0 billion . The scheduled termination date of the agreement is April 16, 2021. 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 $1.6 billion and $1.7 billion at July 31, 2019 and January 31, 2019 , respectively. As collections reduce accounts receivable balances included in the collateral pool, the Company may transfer interests in new receivables to bring the amount available to be borrowed up to the maximum. 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 July 31, 2019 and January 31, 2019 . In addition to the facilities described above, the Company has various other committed and uncommitted lines of credit, short-term loans and overdraft facilities totaling approximately $433.2 million at July 31, 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 $123.8 million outstanding on these facilities at July 31, 2019 , at a weighted average interest rate of 8.08% , and there was $102.3 million outstanding at January 31, 2019 , at a weighted average interest rate of 8.05% . At July 31, 2019 , the Company had also issued standby letters of credit of $23.7 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 certain 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 July 31, 2019 |
Income Taxes (Notes)
Income Taxes (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Income Taxes [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 6 — INCOME TAXES The Company's effective tax rate was 21.4% and 6.8% for the three months ended July 31, 2019 and 2018 , respectively, and 22.1% and 11.7% for the six months ended July 31, 2019 and 2018 , respectively. On an absolute dollar basis, the provision for income taxes increased to $21.6 million for the second quarter of fiscal 2020 compared to $5.5 million for the second quarter of fiscal 2019 and increased to $38.3 million for the first semester of fiscal 2020 compared to $14.5 million for the first semester of fiscal 2019 . The increase in both the effective tax rate and the provision for income taxes for the three and six months ended July 31, 2019 , as compared to the prior year is primarily due to a $12.8 million income tax benefit that was recognized during the three and six months ended July 31, 2018. The income tax benefit was due to the Company's finalization of the geographic allocation of the purchase price for the acquisition of TS for tax reporting purposes as part of a settlement agreement with Avnet, which resulted in the recognition of a deferred tax asset in the U.S. for future tax deductions related to the amortization of goodwill for tax purposes. Additionally, the increase in the absolute dollar value of the provision for income taxes for both the three and six months ended July 31, 2019 as compared to the prior year is due to an increase in taxable earnings. |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 7 — STOCK-BASED COMPENSATION For the six months ended July 31, 2019 and 2018 , the Company recorded $16.4 million and $15.6 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 July 31, 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 six months ended July 31, 2019 is as follows: Shares Nonvested at January 31, 2019 649,122 Granted 227,543 Vested (257,325 ) Canceled (23,628 ) Nonvested at July 31, 2019 595,712 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 six months ended July 31, 2019 is as follows: Shares Nonvested at January 31, 2019 293,216 Granted 108,771 Vested (16,996 ) Canceled (15,606 ) Nonvested at July 31, 2019 369,385 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures | NOTE 8 — 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: July 31, 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 $ 254 $ — Foreign currency forward contracts Other assets, net 5,628 — Cash flow hedges: Cross-currency swap Prepaid expenses and other assets 137 — Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other assets 5,214 3,830 LIABILITIES Net investment hedges: Foreign currency forward contracts Other long-term liabilities $ 5,919 $ — Cash flow hedges: Cross-currency swap Accrued expenses and other liabilities 143 — Derivatives not designated as hedging instruments: Foreign currency forward contracts Accrued expenses and other liabilities 3,237 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 9 – 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 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 $42.7 million and $42.6 million , respectively, at July 31, 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 5 – 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 $1.03 billion and $988 million , respectively, at July 31, 2019 and January 31, 2019 and the carrying value was $993.6 million and $992.8 million , respectively, at July 31, 2019 and January 31, 2019 |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Derivatives [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 9 — 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 The Company has 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 as of July 31, 2019 are as follows: Fiscal Year: Notional Value (in millions) 2020 $ 10.8 2021 21.6 2022 21.6 2023 267.0 2024 12.4 Thereafter 293.4 Total $ 626.8 The following tables present the effects of the Company's net investment hedges on accumulated other comprehensive income ("AOCI") and earnings for the three and six months ended July 31, 2019 : Three months ended July 31, 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 Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) Location of gain (loss) recognized in income (amount excluded from effectiveness testing) (in thousands) Foreign currency forward contracts $ (5,938 ) $ — $ 3,089 Interest expense Six months ended July 31, 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 Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) Location of gain (loss) recognized in income (amount excluded from effectiveness testing) (in thousands) Foreign currency forward contracts $ (3,442 ) $ — $ 3,405 Interest expense The Company had no net investment hedges outstanding during the three and six months ended July 31, 2018. Cash Flow Hedges The Company has 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 July 31, 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 tables present the effects of the Company's cash flow hedges on AOCI and earnings for the three and six months ended July 31, 2019 : Three months ended July 31, 2019 Derivatives designated as cash flow hedges: Amount of gain (loss) recognized in other comprehensive income (loss) Amount of gain (loss) reclassified from AOCI into income Location of gain (loss) reclassified from AOCI into income (in thousands) Cross-currency swap $ 720 $ 168 Interest expense 283 Other expense, net Total $ 720 $ 451 Six months ended July 31, 2019 Derivatives designated as cash flow hedges: Amount of gain (loss) recognized in other comprehensive income (loss) Amount of gain (loss) reclassified from AOCI into income Location of gain (loss) reclassified from AOCI into income (in thousands) Cross-currency swap $ 145 $ 288 Interest expense (201 ) Other expense, net Total $ 145 $ 87 The Company had no cash flow hedges outstanding during the three and six months ended July 31, 2018. 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 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 and six months ended July 31, 2019 and 2018 are as follows: Gains (losses) recognized in earnings Three months ended July 31, Six months ended July 31, Derivatives not designated as hedges Income statement location 2019 2018 2019 2018 (in millions) Foreign currency forward contracts Cost of products sold $ 2.1 $ 5.4 $ 3.0 $ 12.0 Foreign currency forward contracts Other expense, net (3.1 ) (4.1 ) (3.3 ) (11.4 ) Total $ (1.0 ) $ 1.3 $ (0.3 ) $ 0.6 The Company's average notional amounts of derivatives not designated as hedges outstanding during the three months ended July 31, 2019 and 2018 were approximately $1.2 billion and $1.3 billion , respectively, with average maturities of 26 days and 28 days , respectively. The Company's average notional amounts of derivatives not designated as hedges outstanding during the six months ended July 31, 2019 and 2018 were approximately $1.2 billion and $1.4 billion , respectively, with average maturities of 25 days and 29 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 8 – Fair Value Measurements |
Shareholders' Equity (Notes)
Shareholders' Equity (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Shareholders Equity [Abstract] | |
Shareholders' Equity and Share-based Payments | NOTE 10 — 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 six months ended July 31, 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 1,179,176 99.81 Shares of treasury stock reissued for equity incentive plans (196,220 ) Treasury stock balance at July 31, 2019 23,288,420 $ 49.22 As of July 31, 2019, the Company had $75.3 million available for future repurchases of its common stock under the authorized share repurchase program. In August 2019, the Company's Board of Directors authorized the repurchase of up to an additional $200.0 million of the Company's common stock. Accumulated Other Comprehensive Income The following tables summarize the change in the components of AOCI for the three and six months ended July 31, 2019 and 2018 : Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total (in thousands) Balance at April 30, 2019 $ 3,263 $ (211 ) $ 3,052 Other comprehensive income (loss) before reclassification (31,822 ) 720 (31,102 ) Reclassification of (gain) loss from AOCI into income — (451 ) (451 ) Balance at July 31, 2019 $ (28,559 ) $ 58 $ (28,501 ) Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total (in thousands) Balance at April 30, 2018 $ 200,040 $ — $ 200,040 Other comprehensive income (loss) before reclassification (96,982 ) — (96,982 ) Reclassification of (gain) loss from AOCI into income (5,073 ) — (5,073 ) Balance at July 31, 2018 $ 97,985 $ — $ 97,985 Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total (in thousands) Balance at January 31, 2019 $ 43,786 $ — $ 43,786 Other comprehensive income (loss) before reclassification (72,345 ) 145 (72,200 ) Reclassification of (gain) loss from AOCI into income — (87 ) (87 ) Balance at July 31, 2019 $ (28,559 ) $ 58 $ (28,501 ) Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total (in thousands) Balance at January 31, 2018 $ 288,292 $ — $ 288,292 Other comprehensive income (loss) before reclassification (185,234 ) — (185,234 ) Reclassification of (gain) loss from AOCI into income (5,073 ) — (5,073 ) Balance at July 31, 2018 $ 97,985 $ — $ 97,985 |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | NOTE 11 — 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 July 31, 2019 : Fiscal year: (in thousands) 2020 (remaining 6 months) $ 33,408 2021 63,070 2022 41,811 2023 30,247 2024 22,390 Thereafter 35,788 Total payments $ 226,714 Less amount of lease payments representing interest (25,834 ) Total present value of lease payments $ 200,880 Rental expense for all operating leases totaled $21.8 million and $43.4 million during the three and six months ended July 31, 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 July 31, 2019 : Operating leases Balance sheet location July 31, 2019 (in thousands) Operating lease right-of-use assets Other assets, net $ 201,782 Current operating lease liabilities Accrued expenses and other liabilities 64,361 Non-current operating lease liabilities Other long-term liabilities 136,519 Supplemental cash flow information related to the Company's operating leases is as follows: Cash flow information Six months ended July 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: $ 35,067 Non-cash right-of-use assets obtained in exchange for lease liabilities: 18,036 The weighted-average remaining lease term and discount rate were as follows as of July 31, 2019 : Operating lease term and discount rate Operating Leases Weighted-average remaining lease term 4.7 years Weighted-average discount rate 4.8 % |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 6 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12 — COMMITMENTS AND 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 $20.2 million at July 31, 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 subject to 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. In July 2019, the Competition Authority delivered a rapport (report), which is a further step towards proposing charges in this matter. The Competition Authority has taken similar action against the Company's supplier and another of its distributors. The administrative proceedings could result in the imposition of a fine against the Company, which could be material in amount. If a fine is imposed, the Company would be entitled to appeal the administrative determination to the French courts, although the Company would be required to pay the fine before doing so. At this time, the Company cannot assess the likelihood that these proceedings will be finally resolved against Tech Data, and the Company cannot reasonably estimate the amount of fine that may be imposed. 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) | 6 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 13 — 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 July 31, Six months ended July 31, 2019 2018 2019 2018 Net sales: Americas (1) $ 4,316,731 $ 4,043,331 $ 8,105,929 $ 7,661,537 Europe 4,439,627 4,549,127 8,749,127 9,210,829 Asia-Pacific 335,886 293,643 643,612 562,054 Total $ 9,092,244 $ 8,886,101 $ 17,498,668 $ 17,434,420 Operating income: Americas (2), (3) $ 93,085 $ 87,930 $ 161,718 $ 149,272 Europe (4), (5) 37,649 29,085 74,069 46,403 Asia-Pacific 2,068 1,318 2,944 741 Stock-based compensation expense (8,055 ) (7,968 ) (16,360 ) (15,555 ) Total $ 124,747 $ 110,365 $ 222,371 $ 180,861 Depreciation and amortization: Americas $ 23,790 $ 23,591 $ 47,439 $ 46,850 Europe 12,021 14,016 23,531 29,007 Asia-Pacific 1,691 2,311 3,789 4,542 Total $ 37,502 $ 39,918 $ 74,759 $ 80,399 Capital expenditures: Americas $ 10,526 $ 8,233 $ 18,798 $ 12,612 Europe 6,658 5,362 12,785 9,079 Asia-Pacific 1,047 673 1,927 1,032 Total $ 18,231 $ 14,268 $ 33,510 $ 22,723 As of: July 31, 2019 January 31, 2019 Identifiable assets: Americas $ 5,569,530 $ 5,402,316 Europe 5,870,713 6,970,822 Asia-Pacific 614,812 613,414 Total $ 12,055,055 $ 12,986,552 Long-lived assets: Americas (1) $ 216,638 $ 217,863 Europe 51,310 52,162 Asia-Pacific 5,180 4,892 Total $ 273,128 $ 274,917 Goodwill & acquisition-related intangible assets, net: Americas $ 1,057,818 $ 1,083,699 Europe 542,938 575,776 Asia-Pacific 57,014 60,154 Total $ 1,657,770 $ 1,719,629 (1) Net sales in the United States represented 91% of the total Americas' net sales for both the three months ended July 31, 2019 and 2018 , and 90% and 89% , respectively, of the total Americas' net sales for the six months ended July 31, 2019 and 2018 . Total long-lived assets in the United States represented 96% of the Americas' total long-lived assets at both July 31, 2019 and January 31, 2019 . (2) Operating income in the Americas for the three months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $1.3 million and $(0.9) million , respectively. Operating income in the Americas for the six months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $4.3 million and $13.1 million , respectively (see further discussion in Note 3 – Acquisition, Integration and Restructuring Expenses ). (3) Operating income in the Americas includes a gain related to legal settlements and other, net, of $5.2 million for the three months ended July 31, 2018 . Operating income in the Americas includes a gain related to legal settlements and other, net, of $0.3 million and $8.2 million for the six months ended July 31, 2019 and 2018 , respectively (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies). (4) Operating income in Europe for the three months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $3.2 million and $13.3 million , respectively. Operating income in Europe for the six months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $6.3 million and $31.3 million , respectively. (5) Operating income in Europe for the three and six months ended July 31, 2018 includes a gain on disposal of a subsidiary of $6.7 million (see further discussion in Note 4 – Gain on Disposal of Subsidiary ). |
Business And Summary Of Signi_2
Business And Summary Of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 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 July 31, 2019 , its consolidated statements of income, comprehensive income (loss), and shareholders' equity for the three and six months ended July 31, 2019 and 2018 , and its consolidated cash flows for the six months ended July 31, 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 and six months ended July 31, 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 13 – 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 the three and six months ended July 31, 2019 and 2018 (as a percent of consolidated net sales): Three months ended July 31, Six months ended July 31, 2019 2018 2019 2018 Apple, Inc. 14% 14% 13% 14% Cisco Systems, Inc. 12% 11% 11% 11% HP Inc. 11% 12% 11% 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 July 31, 2019 and January 31, 2019 , the Company had a total of $938 million and $1.1 billion , respectively, of outstanding accounts receivable sold to and held by financial institutions under these agreements. During the three months ended July 31, 2019 and 2018 , discount fees recorded under these facilities were $4.0 million and $3.7 million , respectively, and during the six months ended July 31, 2019 and 2018 , discount fees recorded under these facilities were $7.7 million and $6.3 million , respectively. These discount fees are included as a component of "other 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 initial 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 11 – 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 had no 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. |
Reclassification, Policy | Certain reclassifications have been made to the prior period amounts to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. |
Business And Summary Of Signi_3
Business And Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 31, 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 the three and six months ended July 31, 2019 and 2018 (as a percent of consolidated net sales): Three months ended July 31, Six months ended July 31, 2019 2018 2019 2018 Apple, Inc. 14% 14% 13% 14% Cisco Systems, Inc. 12% 11% 11% 11% HP Inc. 11% 12% 11% 12% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 31, 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 July 31, Six months ended July 31, 2019 2018 2019 2018 (in thousands, except per share data) Net income $ 79,250 $ 75,866 $ 134,650 $ 109,565 Weighted average common shares - basic 36,476 38,428 36,739 38,356 Effect of dilutive securities: Equity based awards 185 138 225 209 Weighted average common shares - diluted 36,661 38,566 36,964 38,565 Earnings per share: Basic $ 2.17 $ 1.97 $ 3.67 $ 2.86 Diluted $ 2.16 $ 1.97 $ 3.64 $ 2.84 For the three months ended July 31, 2019 and 2018 , there were 692 and 46,727 shares, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the six months ended July 31, 2019 and 2018 , there were 692 and 46,212 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) | 6 Months Ended |
Jul. 31, 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 and six months ended July 31, 2019 and does not expect to incur any additional costs in future periods. Acquisition, integration and restructuring expenses for the three and six months ended July 31, 2018 related to the acquisition of TS are comprised of the following : Three months ended July 31, Six months ended July 31, 2018 2018 (in thousands) Restructuring costs $ 3,777 $ 14,649 IT related costs 1,156 8,486 Professional services 839 4,406 Transaction related costs 315 1,193 Other (income) costs (5,525 ) (555 ) Total $ 562 $ 28,179 |
Global Business Optimization Program | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Restructuring costs related to the GBO Program by segment are as follows: Three months ended July 31, Six months ended July 31, 2019 2018 2019 2018 (in thousands) Americas $ 1,341 $ 6,485 $ 4,252 $ 7,336 Europe 3,229 6,125 6,253 10,882 Asia-Pacific 639 125 925 125 Total $ 5,209 $ 12,735 $ 11,430 $ 18,343 Restructuring expenses related to the GBO Program are comprised of the following : Three months ended July 31, Six months ended July 31, Cumulative Amounts Incurred to Date 2019 2018 2019 2018 (in thousands) Severance costs $ 3,187 $ 5,605 $ 7,334 $ 8,874 $ 33,761 Professional services and other costs 2,022 7,130 4,096 9,469 20,210 Total $ 5,209 $ 12,735 $ 11,430 $ 18,343 $ 53,971 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Restructuring activity during the six months ended July 31, 2019 related to the GBO Program is as follows: Six months ended July 31, 2019 Severance Professional services and other costs Total (in thousands) Balance at January 31, 2019 $ 14,798 $ 631 $ 15,429 Fiscal 2020 restructuring expenses 7,334 4,096 11,430 Cash payments (10,297 ) (3,825 ) (14,122 ) Foreign currency translation (220 ) (15 ) (235 ) Balance at July 31, 2019 $ 11,615 $ 887 $ 12,502 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The carrying value of the Company's outstanding debt consists of the following (in thousands): As of: July 31, 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 (6,410 ) (7,166 ) Senior Notes, net 993,590 992,834 Term Loans, interest rate of 6.00% and 3.99% at July 31, 2019 and January 31, 2019, respectively 300,000 300,000 Other committed and uncommitted revolving credit facilities, average interest rate of 8.08% and 8.05% at July 31, 2019 and January 31, 2019, respectively 123,759 102,271 Other long-term debt 8,316 15,817 1,425,665 1,410,922 Less—current maturities (included as “revolving credit loans and current maturities of long-term debt, net”) (128,453 ) (110,368 ) Total long-term debt $ 1,297,212 $ 1,300,554 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the Company’s restricted stock activity for the six months ended July 31, 2019 is as follows: Shares Nonvested at January 31, 2019 649,122 Granted 227,543 Vested (257,325 ) Canceled (23,628 ) Nonvested at July 31, 2019 595,712 |
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 six months ended July 31, 2019 is as follows: Shares Nonvested at January 31, 2019 293,216 Granted 108,771 Vested (16,996 ) Canceled (15,606 ) Nonvested at July 31, 2019 369,385 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 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: July 31, 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 $ 254 $ — Foreign currency forward contracts Other assets, net 5,628 — Cash flow hedges: Cross-currency swap Prepaid expenses and other assets 137 — Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other assets 5,214 3,830 LIABILITIES Net investment hedges: Foreign currency forward contracts Other long-term liabilities $ 5,919 $ — Cash flow hedges: Cross-currency swap Accrued expenses and other liabilities 143 — Derivatives not designated as hedging instruments: Foreign currency forward contracts Accrued expenses and other liabilities 3,237 6,641 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jul. 31, 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 as of July 31, 2019 are as follows: Fiscal Year: Notional Value (in millions) 2020 $ 10.8 2021 21.6 2022 21.6 2023 267.0 2024 12.4 Thereafter 293.4 Total $ 626.8 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables present the effects of the Company's net investment hedges on accumulated other comprehensive income ("AOCI") and earnings for the three and six months ended July 31, 2019 : Three months ended July 31, 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 Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) Location of gain (loss) recognized in income (amount excluded from effectiveness testing) (in thousands) Foreign currency forward contracts $ (5,938 ) $ — $ 3,089 Interest expense Six months ended July 31, 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 Amount of gain (loss) recognized in income (amount excluded from effectiveness testing) Location of gain (loss) recognized in income (amount excluded from effectiveness testing) (in thousands) Foreign currency forward contracts $ (3,442 ) $ — $ 3,405 Interest expense The Company had no net investment hedges outstanding during the three and six months ended July 31, 2018. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables present the effects of the Company's cash flow hedges on AOCI and earnings for the three and six months ended July 31, 2019 : Three months ended July 31, 2019 Derivatives designated as cash flow hedges: Amount of gain (loss) recognized in other comprehensive income (loss) Amount of gain (loss) reclassified from AOCI into income Location of gain (loss) reclassified from AOCI into income (in thousands) Cross-currency swap $ 720 $ 168 Interest expense 283 Other expense, net Total $ 720 $ 451 Six months ended July 31, 2019 Derivatives designated as cash flow hedges: Amount of gain (loss) recognized in other comprehensive income (loss) Amount of gain (loss) reclassified from AOCI into income Location of gain (loss) reclassified from AOCI into income (in thousands) Cross-currency swap $ 145 $ 288 Interest expense (201 ) Other expense, net Total $ 145 $ 87 The Company had no cash flow hedges outstanding during the three and six months ended July 31, 2018. |
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 and six months ended July 31, 2019 and 2018 are as follows: Gains (losses) recognized in earnings Three months ended July 31, Six months ended July 31, Derivatives not designated as hedges Income statement location 2019 2018 2019 2018 (in millions) Foreign currency forward contracts Cost of products sold $ 2.1 $ 5.4 $ 3.0 $ 12.0 Foreign currency forward contracts Other expense, net (3.1 ) (4.1 ) (3.3 ) (11.4 ) Total $ (1.0 ) $ 1.3 $ (0.3 ) $ 0.6 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Shareholders Equity [Abstract] | |
Class of Treasury Stock | The Company’s common share issuance activity for the six months ended July 31, 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 1,179,176 99.81 Shares of treasury stock reissued for equity incentive plans (196,220 ) Treasury stock balance at July 31, 2019 23,288,420 $ 49.22 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables summarize the change in the components of AOCI for the three and six months ended July 31, 2019 and 2018 : Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total (in thousands) Balance at April 30, 2019 $ 3,263 $ (211 ) $ 3,052 Other comprehensive income (loss) before reclassification (31,822 ) 720 (31,102 ) Reclassification of (gain) loss from AOCI into income — (451 ) (451 ) Balance at July 31, 2019 $ (28,559 ) $ 58 $ (28,501 ) Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total (in thousands) Balance at April 30, 2018 $ 200,040 $ — $ 200,040 Other comprehensive income (loss) before reclassification (96,982 ) — (96,982 ) Reclassification of (gain) loss from AOCI into income (5,073 ) — (5,073 ) Balance at July 31, 2018 $ 97,985 $ — $ 97,985 Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total (in thousands) Balance at January 31, 2019 $ 43,786 $ — $ 43,786 Other comprehensive income (loss) before reclassification (72,345 ) 145 (72,200 ) Reclassification of (gain) loss from AOCI into income — (87 ) (87 ) Balance at July 31, 2019 $ (28,559 ) $ 58 $ (28,501 ) Foreign currency translation adjustment, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Total (in thousands) Balance at January 31, 2018 $ 288,292 $ — $ 288,292 Other comprehensive income (loss) before reclassification (185,234 ) — (185,234 ) Reclassification of (gain) loss from AOCI into income (5,073 ) — (5,073 ) Balance at July 31, 2018 $ 97,985 $ — $ 97,985 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 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 July 31, 2019 : Fiscal year: (in thousands) 2020 (remaining 6 months) $ 33,408 2021 63,070 2022 41,811 2023 30,247 2024 22,390 Thereafter 35,788 Total payments $ 226,714 Less amount of lease payments representing interest (25,834 ) Total present value of lease payments $ 200,880 |
Schedule Of Assets And Liabilities Lease Table [Table Text Block] | The following amounts were recorded in the Company's Consolidated Balance Sheet as of July 31, 2019 : Operating leases Balance sheet location July 31, 2019 (in thousands) Operating lease right-of-use assets Other assets, net $ 201,782 Current operating lease liabilities Accrued expenses and other liabilities 64,361 Non-current operating lease liabilities Other long-term liabilities 136,519 |
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 Six months ended July 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: $ 35,067 Non-cash right-of-use assets obtained in exchange for lease liabilities: 18,036 |
Lessee, Operating Lease, Disclosure [Table Text Block] | The weighted-average remaining lease term and discount rate were as follows as of July 31, 2019 : Operating lease term and discount rate Operating Leases Weighted-average remaining lease term 4.7 years Weighted-average discount rate 4.8 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information by geographic segment is as follows (in thousands): Three months ended July 31, Six months ended July 31, 2019 2018 2019 2018 Net sales: Americas (1) $ 4,316,731 $ 4,043,331 $ 8,105,929 $ 7,661,537 Europe 4,439,627 4,549,127 8,749,127 9,210,829 Asia-Pacific 335,886 293,643 643,612 562,054 Total $ 9,092,244 $ 8,886,101 $ 17,498,668 $ 17,434,420 Operating income: Americas (2), (3) $ 93,085 $ 87,930 $ 161,718 $ 149,272 Europe (4), (5) 37,649 29,085 74,069 46,403 Asia-Pacific 2,068 1,318 2,944 741 Stock-based compensation expense (8,055 ) (7,968 ) (16,360 ) (15,555 ) Total $ 124,747 $ 110,365 $ 222,371 $ 180,861 Depreciation and amortization: Americas $ 23,790 $ 23,591 $ 47,439 $ 46,850 Europe 12,021 14,016 23,531 29,007 Asia-Pacific 1,691 2,311 3,789 4,542 Total $ 37,502 $ 39,918 $ 74,759 $ 80,399 Capital expenditures: Americas $ 10,526 $ 8,233 $ 18,798 $ 12,612 Europe 6,658 5,362 12,785 9,079 Asia-Pacific 1,047 673 1,927 1,032 Total $ 18,231 $ 14,268 $ 33,510 $ 22,723 As of: July 31, 2019 January 31, 2019 Identifiable assets: Americas $ 5,569,530 $ 5,402,316 Europe 5,870,713 6,970,822 Asia-Pacific 614,812 613,414 Total $ 12,055,055 $ 12,986,552 Long-lived assets: Americas (1) $ 216,638 $ 217,863 Europe 51,310 52,162 Asia-Pacific 5,180 4,892 Total $ 273,128 $ 274,917 Goodwill & acquisition-related intangible assets, net: Americas $ 1,057,818 $ 1,083,699 Europe 542,938 575,776 Asia-Pacific 57,014 60,154 Total $ 1,657,770 $ 1,719,629 (1) Net sales in the United States represented 91% of the total Americas' net sales for both the three months ended July 31, 2019 and 2018 , and 90% and 89% , respectively, of the total Americas' net sales for the six months ended July 31, 2019 and 2018 . Total long-lived assets in the United States represented 96% of the Americas' total long-lived assets at both July 31, 2019 and January 31, 2019 . (2) Operating income in the Americas for the three months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $1.3 million and $(0.9) million , respectively. Operating income in the Americas for the six months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $4.3 million and $13.1 million , respectively (see further discussion in Note 3 – Acquisition, Integration and Restructuring Expenses ). (3) Operating income in the Americas includes a gain related to legal settlements and other, net, of $5.2 million for the three months ended July 31, 2018 . Operating income in the Americas includes a gain related to legal settlements and other, net, of $0.3 million and $8.2 million for the six months ended July 31, 2019 and 2018 , respectively (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies). (4) Operating income in Europe for the three months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $3.2 million and $13.3 million , respectively. Operating income in Europe for the six months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $6.3 million and $31.3 million , respectively. (5) Operating income in Europe for the three and six months ended July 31, 2018 includes a gain on disposal of a subsidiary of $6.7 million (see further discussion in Note 4 – Gain on Disposal of Subsidiary ). |
Business And Summary Of Signi_4
Business And Summary Of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | |||||
Accounts receivable sold | $ 938 | $ 938 | $ 1,100 | ||
Discount fees on sale of accounts receivable | $ 4 | $ 3.7 | $ 7.7 | $ 6.3 | |
Apple | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 14.00% | 14.00% | 13.00% | 14.00% | |
Cisco Systems, Inc. | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 12.00% | 11.00% | 11.00% | 11.00% | |
HP, Inc. | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 11.00% | 12.00% | 11.00% | 12.00% |
Business And Summary Of Signi_5
Business And Summary Of Significant Accounting Policies | Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Apr. 30, 2019 |
New Accounting Pronouncement | ||
Operating Lease, Right-of-Use Asset | $ 201,782 | $ 206,800 |
Operating Lease, Liability | $ 200,880 | $ 205,800 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 79,250 | $ 55,400 | $ 75,866 | $ 33,699 | $ 134,650 | $ 109,565 |
Weighted average common shares - basic | 36,476,000 | 38,428,000 | 36,739,000 | 38,356,000 | ||
Equity based awards | 185,000 | 138,000 | 225,000 | 209,000 | ||
Weighted average common shares - diluted | 36,661,000 | 38,566,000 | 36,964,000 | 38,565,000 | ||
Basic Earnings Per Share | $ 2.17 | $ 1.97 | $ 3.67 | $ 2.86 | ||
Diluted Earnings Per Share | $ 2.16 | $ 1.97 | $ 3.64 | $ 2.84 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 692 | 46,727 | 692 | 46,212 |
Acquisition, Integration and _3
Acquisition, Integration and Restructuring Expenses | TS Acquisition (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Business Acquisition | |||||
Business Acquisition, Effective Date of Acquisition | Feb. 27, 2017 | ||||
Acquisition, integration and restructuring expenses | $ 5,209 | $ 13,297 | $ 11,430 | $ 46,522 | |
TS | |||||
Business Acquisition | |||||
Payments to Acquire Businesses, Gross | $ 2,500,000 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,785,402 | ||||
Business Combination, Consideration Transferred | $ 2,800,000 | ||||
Acquisition, integration and restructuring expenses | $ 562 | 28,179 | |||
Deferred Other Tax Expense (Benefit) | (12,800) | ||||
Working Capital Adjustment Gain/Loss [Domain] | TS | |||||
Business Acquisition | |||||
Acquisition, integration and restructuring expenses | $ (9,600) |
Acquisition, Integration and _4
Acquisition, Integration and Restructuring Expenses | TS Acquisition, Integration and Restructuring Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | $ 5,209 | $ 13,297 | $ 11,430 | $ 46,522 |
TS | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | 562 | 28,179 | ||
TS | Restructuring Charges | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | 3,777 | 14,649 | ||
TS | IT Related Costs [Member] | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | 1,156 | 8,486 | ||
TS | Professional services | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | 839 | 4,406 | ||
TS | Transaction Related Costs [Member] | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | 315 | 1,193 | ||
TS | Other (income) expense | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | (5,525) | (555) | ||
Americas | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | (900) | 13,100 | ||
Americas | Restructuring Charges | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | 100 | 3,500 | ||
Europe | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | 13,300 | 31,300 | ||
Europe | Restructuring Charges | ||||
Acquisition and integration expenses [Line Items] | ||||
Acquisition, integration and restructuring expenses | $ 3,700 | $ 11,100 |
Acquisition, Integration and _5
Acquisition, Integration and Restructuring Expenses | Global Business Optimization Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Restructuring Cost and Reserve | ||||
Acquisition, integration and restructuring expenses | $ 5,209 | $ 13,297 | $ 11,430 | $ 46,522 |
Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | 5,209 | 12,735 | 11,430 | 18,343 |
Restructuring and Related Cost, Cost Incurred to Date | 53,971 | 53,971 | ||
Restructuring Charges | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | 11,430 | |||
Employee Severance | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | 3,187 | 5,605 | 7,334 | 8,874 |
Restructuring and Related Cost, Cost Incurred to Date | 33,761 | 33,761 | ||
Professional services | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | 2,022 | 7,130 | 4,096 | 9,469 |
Restructuring and Related Cost, Cost Incurred to Date | 20,210 | 20,210 | ||
Minimum | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 70,000 | 70,000 | ||
Maximum | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 80,000 | 80,000 | ||
Europe | ||||
Restructuring Cost and Reserve | ||||
Acquisition, integration and restructuring expenses | 13,300 | 31,300 | ||
Restructuring Charges | 3,229 | 6,300 | ||
Europe | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | 6,125 | 10,882 | ||
Europe | Restructuring Charges | ||||
Restructuring Cost and Reserve | ||||
Acquisition, integration and restructuring expenses | 3,700 | 11,100 | ||
Europe | Minimum | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 40,000 | 40,000 | ||
Europe | Maximum | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 45,000 | 45,000 | ||
Americas | ||||
Restructuring Cost and Reserve | ||||
Acquisition, integration and restructuring expenses | (900) | 13,100 | ||
Restructuring Charges | 1,341 | 4,252 | ||
Americas | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | 6,485 | 7,336 | ||
Americas | Restructuring Charges | ||||
Restructuring Cost and Reserve | ||||
Acquisition, integration and restructuring expenses | 100 | 3,500 | ||
Americas | Minimum | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 30,000 | 30,000 | ||
Americas | Maximum | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 35,000 | 35,000 | ||
Asia-Pacific | Global Business Optimization Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | $ 639 | $ 125 | $ 925 | $ 125 |
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 | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 5,209 | $ 12,735 | $ 11,430 | $ 18,343 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 14,798 | |||
Restructuring Charges | 3,187 | 5,605 | 7,334 | 8,874 |
Payments for Restructuring | 10,297 | |||
Restructuring Reserve, Translation and Other Adjustment | (220) | |||
Restructuring Reserve - Ending Balance | 11,615 | 11,615 | ||
Professional services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 631 | |||
Restructuring Charges | 2,022 | $ 7,130 | 4,096 | $ 9,469 |
Payments for Restructuring | 3,825 | |||
Restructuring Reserve, Translation and Other Adjustment | (15) | |||
Restructuring Reserve - Ending Balance | 887 | 887 | ||
Restructuring Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 15,429 | |||
Restructuring Charges | 11,430 | |||
Payments for Restructuring | 14,122 | |||
Restructuring Reserve, Translation and Other Adjustment | (235) | |||
Restructuring Reserve - Ending Balance | $ 12,502 | $ 12,502 |
Gain on Disposal of Subsidiar_2
Gain on Disposal of Subsidiary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 15,300 | $ 15,300 | ||
Translation Adjustment Functional to Reporting Currency, Gain (Loss), Reclassified to Earnings, Net of Tax | 5,100 | |||
Gain on disposal of subsidiary | $ 0 | $ 6,717 | $ 0 | 6,717 |
Europe | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal of subsidiary | $ 6,700 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 | Jan. 31, 2017 |
Debt Instrument | |||
Other Long-term Debt | $ 8,316 | $ 15,817 | |
Debt and Lease Obligation | 1,425,665 | 1,410,922 | |
Less-current maturities (included as Revolving credit loans and current portion of long-term debt, net) | (128,453) | (110,368) | |
Long-term Debt and Lease Obligation | 1,297,212 | 1,300,554 | |
Senior Notes | |||
Debt Instrument | |||
Unamortized debt discount and debt issuance costs | (6,410) | (7,166) | |
Senior Notes, net | 993,590 | 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 | 123,759 | 102,271 | |
Fair Value, Inputs, Level 1 | Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Fair Value Disclosure | $ 1,030,000 | $ 988,000 |
Debt | Senior Notes (Details)
Debt | Senior Notes (Details) - Senior Notes - USD ($) $ in Thousands | Jul. 31, 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 ($) | Aug. 02, 2019 | Jul. 31, 2019 | Jan. 31, 2019 | Nov. 02, 2016 |
Line of Credit Facility | ||||
Accounts receivable, net | $ 5,390,102,000 | $ 6,241,740,000 | ||
Standby Letters Of Credit | 23,700,000 | |||
Credit Agreement | ||||
Line of Credit Facility | ||||
Line of Credit, Amount Outstanding | 0 | $ 0 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,750,000,000 | |||
Line of Credit Facility, Current Borrowing Capacity | $ 1,500,000,000 | |||
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 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 3.99% | ||
2016 Term loan credit agreement [Member] | 5 year maturity | ||||
Line of Credit Facility | ||||
Debt Instrument, Face Amount | $ 300,000,000 | $ 300,000,000 | ||
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 | |||
Accounts receivable, net | 1,600,000,000 | $ 1,700,000,000 | ||
Other Committed And Uncommitted Revolving Credit Facilities | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 433,200,000 | |||
Line of Credit Facility, Interest Rate at Period End | 8.08% | 8.05% | ||
Subsequent Event [Member] | 2019 Term loan credit agreement [Member] | 2 year maturity [Member] | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | |||
Debt Instrument, Face Amount | $ 300,000,000 | |||
Term Loan | ||||
Line of Credit Facility | ||||
Loans Payable | $ 300,000,000 | $ 300,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Tax [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 21.40% | 6.80% | 22.10% | 11.70% |
Provision for income taxes | $ 21,615 | $ 5,545 | $ 38,275 | $ 14,503 |
TS | ||||
Tax [Line Items] | ||||
Deferred Other Tax Expense (Benefit) | $ (12,800) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 8,055 | $ 7,968 | $ 16,360 | $ 15,555 |
Number of Shares Authorized | 2,000,000 | 2,000,000 | ||
Number of Shares Available for Grant | 1,700,000 | 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 | 227,543 | |||
Vested | (257,325) | |||
Canceled | (23,628) | |||
Nonvested at July 31, 2019 | 595,712 | 595,712 | ||
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 | (15,606) | |||
Nonvested at July 31, 2019 | 369,385 | 369,385 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jan. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Life Insurance, Corporate or Bank Owned, Amount | $ 42,700 | $ 39,200 |
Deferred Compensation Liability, Current and Noncurrent | 42,600 | 39,100 |
Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Carrying Value of Senior Notes, net | 993,590 | 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 | 1,030,000 | 988,000 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value | 5,919 | 0 |
Fair Value, Inputs, Level 2 | Other Current Assets [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Net investment hedges - foreign currency forward contracts | 254 | 0 |
Cash flow hedge - cross-currency swap | 137 | 0 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 5,214 | 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 | ||
Net investment hedges - foreign currency forward contracts | 5,628 | 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 | ||
Cash flow hedge - cross-currency swap | 143 | 0 |
Net investment hedges - foreign currency forward contracts | $ 3,237 | $ 6,641 |
Derivative Instruments | Net In
Derivative Instruments | Net Investment Hedge Notional Amounts (Details) $ in Millions | Jul. 31, 2019USD ($) |
Maturity Year One [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 10.8 |
Maturity Year Two [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 21.6 |
Maturity Year Three [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 21.6 |
Maturity Year Four [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 267 |
Maturity Year Five [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 12.4 |
Maturity After Year Five [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 293.4 |
Net Investment Hedging [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 626.8 |
Derivative Instruments | Net _2
Derivative Instruments | Net Investment Hedges - Impact on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 31, 2019 | Jul. 31, 2019 | |
Net Investment Hedges - Impact on AOCI [Abstract] | ||
Gain (loss) recognized in other comprehensive income (loss) | $ (5,938) | $ (3,442) |
Gain (loss) reclassified from accumulated OCI into income | 0 | 0 |
Gain (loss) recognized in income, amount excluded from effectiveness testing | $ 3,089 | $ 3,405 |
Derivative Instruments | Cash F
Derivative Instruments | Cash Flow Hedges - Impact on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 31, 2019 | Jul. 31, 2019 | |
Cash Flow Hedges - Impact on AOCI [Line Items] | ||
Gain (loss) recognized in other comprehensive income (loss) | $ 720 | $ 145 |
Gain (loss) reclassified from AOCI into income | 451 | 87 |
Interest Expense | ||
Cash Flow Hedges - Impact on AOCI [Line Items] | ||
Gain (loss) reclassified from AOCI into income | 168 | 288 |
Other Nonoperating Income (Expense) [Member] | ||
Cash Flow Hedges - Impact on AOCI [Line Items] | ||
Gain (loss) reclassified from AOCI into income | $ 283 | $ (201) |
Derivative Instruments | Deriva
Derivative Instruments | Derivatives not Designated as Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (1) | $ 1.3 | $ (0.3) | $ 0.6 |
Cost of Sales [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 2.1 | 5.4 | 3 | 12 |
Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (3.1) | $ (4.1) | $ (3.3) | $ (11.4) |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | |
Derivative [Line Items] | ||||
Weighted Average Notional Amount Of Foreign Currency Derivatives | $ 1,200 | $ 1,300 | $ 1,200 | $ 1,400 |
Derivative, Average Remaining Maturity | 26 days | 28 days | 25 days | 29 days |
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Number of Instruments Held | 0 | 0 | ||
Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Number of Instruments Held | 0 | 0 | ||
Derivative, Notional Amount | $ 4.5 | $ 4.5 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Feb. 26, 2019 | Oct. 02, 2018 |
Shareholders' Equity Narrative [Abstract] | |||
Stock Repurchase Program Additional Authorized Amount | $ 100 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 75.3 | ||
Stock Repurchase Program, Authorized Amount | $ 300 | $ 200 |
Shareholders' Equity | Company'
Shareholders' Equity | Company's Common Share Repurchase and Issuance Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jul. 31, 2019 | Feb. 26, 2019 | Jan. 31, 2019 | |
Treasury Stock Roll Forward | |||
Stock Repurchase Program Additional Authorized Amount | $ 100 | ||
Change in Treasury Stock | |||
Treasury stock balance at January 31, 2019 | 22,305,464 | ||
Shares of treasury stock repurchased | 1,179,176 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 99.81 | ||
Treasury stock balance at July 31, 2019 | 23,288,420 | ||
Treasury Stock Held, Average Cost Per Share | $ 49.22 | $ 46.53 | |
Equity Incentive Plans | |||
Change in Treasury Stock | |||
Shares of Treasury Stock Reissued for Equity Incentive Plans | 196,220 |
Shareholders' Equity | Componen
Shareholders' Equity | Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) balance | $ 3,052 | $ 200,040 | $ 43,786 | $ 288,292 |
Other comprehensive income (loss), before reclassification | (31,102) | (96,982) | (72,200) | (185,234) |
Reclassification of (gain) loss form AOCI into income | (451) | (5,073) | (87) | (5,073) |
Accumulated other comprehensive income (loss) balance | (28,501) | 97,985 | (28,501) | 97,985 |
Foreign currency translation adjustment, net of taxes | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) balance | 3,263 | 200,040 | 43,786 | 288,292 |
Other comprehensive income (loss), before reclassification | (31,822) | (96,982) | (72,345) | (185,234) |
Reclassification of (gain) loss form AOCI into income | 0 | (5,073) | 0 | (5,073) |
Accumulated other comprehensive income (loss) balance | (28,559) | 97,985 | (28,559) | 97,985 |
Unrealized gains (losses) on cash flow hedges, net of taxes | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) balance | (211) | 0 | 0 | 0 |
Other comprehensive income (loss), before reclassification | 720 | 0 | 145 | 0 |
Reclassification of (gain) loss form AOCI into income | (451) | 0 | (87) | 0 |
Accumulated other comprehensive income (loss) balance | $ 58 | $ 0 | $ 58 | $ 0 |
Shareholders' Equity | Subseque
Shareholders' Equity | Subsequent Event (Details) - USD ($) $ in Millions | Aug. 29, 2019 | Feb. 26, 2019 |
Subsequent Event [Line Items] | ||
Stock Repurchase Program Additional Authorized Amount | $ 100 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Stock Repurchase Program Additional Authorized Amount | $ 200 |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 31, 2019USD ($)Rate | Jul. 31, 2019USD ($)Rate | |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 8 months 12 days | 4 years 8 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 4.80% | 4.80% |
Operating Leases, Rent Expense | $ | $ 21.8 | $ 43.4 |
Leases | Maturities of Operatin
Leases | Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Apr. 30, 2019 |
Maturities of Operating Lease Liabilities [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 33,408 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 63,070 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 41,811 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 30,247 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 22,390 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 35,788 | |
Lessee, Operating Lease, Liability, Payments, Due | 226,714 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (25,834) | |
Operating Lease, Liability | $ 200,880 | $ 205,800 |
Leases | Balance Sheet Classifi
Leases | Balance Sheet Classification of Leases (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Apr. 30, 2019 |
Balance Sheet Classification of Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 201,782 | $ 206,800 |
Operating Lease, Liability, Current | 64,361 | |
Operating Lease, Liability, Noncurrent | $ 136,519 |
Leases | Supplemental Cash Flow
Leases | Supplemental Cash Flow Information Pertaining to Leases (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2019USD ($) | |
Supplemental Cash Flow Information Pertaining to Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 35,067 |
Non-cash right-of-use asset obtained in exchange for lease liability | $ 18,036 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Jul. 31, 2019USD ($) |
Brazil | |
Loss Contingencies | |
Loss Contingency, Estimate of Possible Loss | $ 20.2 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2019 | ||||
Segment Reporting Information | ||||||||
Net sales | $ 9,092,244 | $ 8,886,101 | $ 17,498,668 | $ 17,434,420 | ||||
Operating income: | 124,747 | 110,365 | 222,371 | 180,861 | ||||
Stock-based compensation expense | (8,055) | (7,968) | (16,360) | (15,555) | ||||
Depreciation and amortization: | 37,502 | 39,918 | 74,759 | 80,399 | ||||
Capital expenditures: | 18,231 | 14,268 | 33,510 | 22,723 | ||||
Identifiable assets: | 12,055,055 | 12,055,055 | $ 12,986,552 | |||||
Long-lived assets: | 273,128 | 273,128 | 274,917 | |||||
Goodwill & acquisition-related intangible assets, net: | 1,657,770 | 1,657,770 | 1,719,629 | |||||
Legal settlements and other, net | 0 | (5,234) | (282) | (8,199) | ||||
Acquisition, integration and restructuring expenses | 5,209 | 13,297 | 11,430 | 46,522 | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 6,717 | 0 | 6,717 | ||||
Americas | ||||||||
Segment Reporting Information | ||||||||
Net sales | [1] | 4,316,731 | 4,043,331 | 8,105,929 | 7,661,537 | |||
Operating income: | [2],[3] | 93,085 | 87,930 | 161,718 | 149,272 | |||
Depreciation and amortization: | $ 23,790 | $ 23,591 | $ 47,439 | $ 46,850 | ||||
Sales to unaffiliated customers, as percentage of total sales | 91.00% | 91.00% | 90.00% | 89.00% | ||||
Capital expenditures: | $ 10,526 | $ 8,233 | $ 18,798 | $ 12,612 | ||||
Identifiable assets: | 5,569,530 | 5,569,530 | 5,402,316 | |||||
Long-lived assets: | [1] | 216,638 | 216,638 | 217,863 | ||||
Goodwill & acquisition-related intangible assets, net: | $ 1,057,818 | $ 1,057,818 | $ 1,083,699 | |||||
Long-lived assets, as percentage of total assets | 96.00% | 96.00% | 96.00% | |||||
Restructuring Charges | $ 1,341 | $ 4,252 | ||||||
Legal settlements and other, net | (5,200) | (300) | (8,200) | |||||
Acquisition, integration and restructuring expenses | (900) | 13,100 | ||||||
Europe | ||||||||
Segment Reporting Information | ||||||||
Net sales | 4,439,627 | 4,549,127 | 8,749,127 | 9,210,829 | ||||
Operating income: | [4] | 37,649 | 29,085 | [5] | 74,069 | 46,403 | [5] | |
Depreciation and amortization: | 12,021 | 14,016 | 23,531 | 29,007 | ||||
Capital expenditures: | 6,658 | 5,362 | 12,785 | 9,079 | ||||
Identifiable assets: | 5,870,713 | 5,870,713 | $ 6,970,822 | |||||
Long-lived assets: | 51,310 | 51,310 | 52,162 | |||||
Goodwill & acquisition-related intangible assets, net: | 542,938 | 542,938 | 575,776 | |||||
Restructuring Charges | 3,229 | 6,300 | ||||||
Acquisition, integration and restructuring expenses | 13,300 | 31,300 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 6,700 | |||||||
Asia-Pacific | ||||||||
Segment Reporting Information | ||||||||
Net sales | 335,886 | 293,643 | 643,612 | 562,054 | ||||
Operating income: | 2,068 | 1,318 | 2,944 | 741 | ||||
Depreciation and amortization: | 1,691 | 2,311 | 3,789 | 4,542 | ||||
Capital expenditures: | 1,047 | $ 673 | 1,927 | $ 1,032 | ||||
Identifiable assets: | 614,812 | 614,812 | 613,414 | |||||
Long-lived assets: | 5,180 | 5,180 | 4,892 | |||||
Goodwill & acquisition-related intangible assets, net: | $ 57,014 | $ 57,014 | $ 60,154 | |||||
[1] | Net sales in the United States represented 91% of the total Americas' net sales for both the three months ended July 31, 2019 and 2018 , and 90% and 89% , respectively, of the total Americas' net sales for the six months ended July 31, 2019 and 2018 . Total long-lived assets in the United States represented 96% of the Americas' total long-lived assets at both July 31, 2019 and January 31, 2019 . | |||||||
[2] | Operating income in the Americas includes a gain related to legal settlements and other, net, of $5.2 million for the three months ended July 31, 2018 . Operating income in the Americas includes a gain related to legal settlements and other, net, of $0.3 million and $8.2 million for the six months ended July 31, 2019 and 2018 , respectively (see further discussion in Note 1 - Business and Summary of Significant Accounting Policies). | |||||||
[3] | Operating income in the Americas for the three months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $1.3 million and $(0.9) million , respectively. Operating income in the Americas for the six months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $4.3 million and $13.1 million , respectively (see further discussion in Note 3 – Acquisition, Integration and Restructuring Expenses | |||||||
[4] | Operating income in Europe for the three months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $3.2 million and $13.3 million , respectively. Operating income in Europe for the six months ended July 31, 2019 and 2018 includes acquisition, integration and restructuring expenses of $6.3 million and $31.3 million , respectively. | |||||||
[5] | Operating income in Europe for the three and six months ended July 31, 2018 includes a gain on disposal of a subsidiary of $6.7 million (see further discussion in Note 4 – Gain on Disposal of Subsidiary ). |