Policy

NOTE 16 — INTERIM FINANCIAL INFORMATION (UNAUDITED)

As discussed in greater detail in Note 2 - Restatement of Consolidated Financial Statements, the Company determined that it needed to restate its previously issued consolidated financial information for the quarterly periods ended April 30, 2012, July 31, 2012, October 31, 2012 and each of the quarterly periods in the fiscal year ended January 31, 2012 and the unaudited financial results for the quarterly period ended January 31, 2013 previously announced and filed in a Current Report on Form 8-K on March 4, 2013. The following tables summarize the effects of the restatement, a subsequent event unrelated to the restatement as discussed further in Note 14 - Commitments and Contingencies, and presentation reclassifications on our previously issued unaudited condensed consolidated financial statements:



	Quarter ended
AS RESTATED	April 30		July 31		October 31		January 31 ^(1)(2)(3)
	(In thousands, except per share amounts)
Fiscal year 2013:
Net sales	$	5,910,063	$	5,968,419	$	6,037,475	$	7,442,372
Gross profit	323,408		302,593		306,079		370,974
Operating income	82,458		60,311		63,595		57,356
Consolidated net income	56,012		38,527		44,060		44,441
Net income attributable to shareholders of Tech Data Corporation	$	54,178	$	34,699	$	42,937	$	44,441
Net income per share attributable to shareholders of Tech Data Corporation:
Basic	$	1.32	$	0.89	$	1.14	$	1.18
Diluted	$	1.30	$	0.89	$	1.13	$	1.17



	Quarter ended
AS RESTATED	April 30		July 31		October 31		January 31⁽⁴⁾
	(In thousands, except per share amounts)
Fiscal year 2012:
Net sales	$	6,154,033	$	6,214,304	$	6,404,585	$	6,874,391
Gross profit	337,315		336,085		337,778		366,263
Operating income	77,552		73,138		83,252		70,604
Consolidated net income	51,585		46,995		53,506		49,116
Net income attributable to shareholders of Tech Data Corporation	$	51,566	$	45,346	$	49,862	$	43,976
Net income per share attributable to shareholders of Tech Data Corporation:
Basic	$	1.10	$	1.01	$	1.18	$	1.07
Diluted	$	1.09	$	0.99	$	1.17	$	1.05


(1)	Amounts presented for the fourth quarter of fiscal 2013 are not restated, however the amounts presented herein include adjustments to previously reported amounts furnished in a Current Report on Form 8-K filed on March 4, 2013.


(2)	During the fourth quarter of fiscal 2013, the Company recorded a $41.0 million increase in an accrual for various value added tax matters in one of the Company’s subsidiaries in Spain, which decreased earnings per diluted share by $0.89 for the quarter ended January 31, 2013 (see Note 14 - Commitments and Contingencies for further discussion).


(3)	During the fourth quarter of fiscal 2013, the Company recorded an income tax benefit of $25.1 million for the reversal of deferred tax valuation allowances related to a specific jurisdiction in Europe which had been recorded in prior fiscal years, which increased earnings per diluted share by $0.66 for the quarter ended January 31, 2013 (see further discussion in Note 9 - Income Taxes).


(4)	During the fourth quarter of fiscal 2012, the Company recorded a $28.3 million loss on disposal of subsidiaries related to the closure of the commercial operations in Brazil and Colombia, which decreased earnings per diluted share by $0.46 for the quarter ended January 31, 2012 (see also Note 7 - Loss on Disposal of Subsidiaries).



Consolidated Statement of Income

	Quarter ended
AS RESTATED	April 30			July 31			October 31			January 31
	(In thousands, except per share amounts)
Fiscal year 2013:
Net sales	$	5,910,063		$	5,968,419		$	6,037,475		$	7,442,372
Cost of products sold	5,586,655			5,665,826			5,731,396			7,071,398
Gross profit	323,408			302,593			306,079			370,974
Operating expenses:
Selling, general and administrative expense	240,950			242,282			242,484			284,156
Value added tax assessment	0			0			0			29,462
	240,950			242,282			242,484			313,618
Operating income	82,458			60,311			63,595			57,356
Interest expense	3,069			3,422			4,359			19,276
Other expense, net	235			1,812			1,070			1,011
Income before income taxes	79,154			55,077			58,166			37,069
Provision for income taxes	23,142			16,550			14,106			(7,372		)
Consolidated net income	56,012			38,527			44,060			44,441
Net income attributable to noncontrolling interest	(1,834		)	(3,828		)	(1,123		)	0
Net income attributable to shareholders of Tech Data Corporation	$	54,178		$	34,699		$	42,937		$	44,441
Net income per share attributable to shareholders of Tech Data Corporation:
Basic	$	1.32		$	0.89		$	1.14		$	1.18
Diluted	$	1.30		$	0.89		$	1.13		$	1.17



	Quarter ended
AS REPORTED	April 30			July 31			October 31			January 31 ⁽¹⁾
	(In thousands, except per share amounts)
Fiscal year 2013:
Net sales	$	5,895,561		$	5,961,500		$	6,040,556		$	7,463,400
Cost of products sold	5,575,344			5,660,256			5,732,295			7,083,520
Gross profit	320,217			301,244			308,261			379,880
Operating expenses:
Selling, general and administrative expense	239,324			241,988			238,715			286,350
Value added tax assessment	0			0			0			0
	239,324			241,988			238,715			286,350
Operating income	80,893			59,256			69,546			93,530
Interest expense	3,069			3,422			4,359			7,691
Other expense, net	1,344			1,178			2,044			2,503
Income before income taxes	76,480			54,656			63,143			83,336
Provision for income taxes	22,954			16,370			16,122			794
Consolidated net income	53,526			38,286			47,021			82,542
Net income attributable to noncontrolling interest	(1,834		)	(3,828		)	(1,123		)	0
Net income attributable to shareholders of Tech Data Corporation	$	51,692		$	34,458		$	45,898		$	82,542
Net income per share attributable to shareholders of Tech Data Corporation:
Basic	$	1.26		$	0.89		$	1.22		$	2.18
Diluted	$	1.24		$	0.88		$	1.21		$	2.17



	Quarter ended
ADJUSTMENTS ⁽²⁾	April 30			July 31		October 31			January 31 ⁽³⁾
	(In thousands, except per share amounts)
Fiscal year 2013:
Net sales	$	14,502		$	6,919	$	(3,081	)	$	(21,028	)
Cost of products sold	11,311			5,570		(899		)	(12,122		)
Gross profit	3,191			1,349		(2,182		)	(8,906		)
Operating expenses:
Selling, general and administrative expense	1,626			294		3,769			(2,194		)
Value added tax assessment	0			0		0			29,462
	1,626			294		3,769			27,268
Operating income	1,565			1,055		(5,951		)	(36,174		)
Interest expense	0			0		0			11,585
Other expense, net	(1,109		)	634		(974		)	(1,492		)
Income before income taxes	2,674			421		(4,977		)	(46,267		)
Provision for income taxes	188			180		(2,016		)	(8,166		)
Consolidated net income	2,486			241		(2,961		)	(38,101		)
Net income attributable to noncontrolling interest	0			0		0			0
Net income attributable to shareholders of Tech Data Corporation	$	2,486		$	241	$	(2,961	)	$	(38,101	)
Net income per share attributable to shareholders of Tech Data Corporation:
Basic	$	0.06		$	0.00	$	(0.08	)	$	(1.00	)
Diluted	$	0.06		$	0.01	$	(0.08	)	$	(1.00	)


(1)	As previously reported in Current Report on Form 8-K filed on March 4, 2013.


(2)	The adjustments are to correct errors previously discussed in Note 2 - Restatement of Consolidated Financial Statements.


(3)	Adjustments to previously reported amounts in Current Report on Form 8-K filed March 4, 2013 (see Note 2 - Restatement of Consolidated Financial Statements).



	Quarter ended
AS RESTATED	April 30			July 31			October 31			January 31
	(In thousands, except per share amounts)
Fiscal year 2012:
Net sales	$	6,154,033		$	6,214,304		$	6,404,585		$	6,874,391
Cost of products sold	5,816,718			5,878,219			6,066,807			6,508,128
Gross profit	337,315			336,085			337,778			366,263
Operating expenses:
Selling, general and administrative expense	259,763			262,947			254,526			267,365
Loss on disposal of subsidiaries	0			0			0			28,294
	259,763			262,947			254,526			295,659
Operating income	77,552			73,138			83,252			70,604
Interest expense	8,675			8,089			8,378			6,235
Other expense (income), net	(1,298		)	958			1,868			(670		)
Income before income taxes	70,175			64,091			73,006			65,039
Provision for income taxes	18,590			17,096			19,500			15,923
Consolidated net income	51,585			46,995			53,506			49,116
Net income attributable to noncontrolling interest	(19		)	(1,649		)	(3,644		)	(5,140		)
Net income attributable to shareholders of Tech Data Corporation	$	51,566		$	45,346		$	49,862		$	43,976
Net income per share attributable to shareholders of Tech Data Corporation:
Basic	$	1.10		$	1.01		$	1.18		$	1.07
Diluted	$	1.09		$	0.99		$	1.17		$	1.05



	Quarter ended
AS REPORTED	April 30			July 31			October 31			January 31
	(In thousands, except per share amounts)
Fiscal year 2012:
Net sales	$	6,332,128		$	6,449,461		$	6,593,983		$	7,112,552
Cost of products sold	5,998,666			6,108,623			6,249,236			6,737,608
Gross profit	333,462			340,838			344,747			374,944
Operating expenses:
Selling, general and administrative expense	257,779			262,063			255,178			262,819
Loss on disposal of subsidiaries	0			0			0			28,294
	257,779			262,063			255,178			291,113
Operating income	75,683			78,775			89,569			83,831
Interest expense	8,641			8,089			8,378			6,235
Other expense (income), net	666			(212		)	428			311
Income before income taxes	66,376			70,898			80,763			77,285
Provision for income taxes	17,656			19,142			23,600			18,076
Consolidated net income	48,720			51,756			57,163			59,209
Net income attributable to noncontrolling interest	(19		)	(1,649		)	(3,644		)	(5,140		)
Net income attributable to shareholders of Tech Data Corporation	$	48,701		$	50,107		$	53,519		$	54,069
Net income per share attributable to shareholders of Tech Data Corporation:
Basic	$	1.04		$	1.11		$	1.27		$	1.31
Diluted	$	1.03		$	1.10		$	1.26		$	1.29



	Quarter ended
ADJUSTMENTS ⁽¹⁾	April 30			July 31			October 31			January 31
	(In thousands, except per share amounts)
Fiscal year 2012:
Net sales	$	(178,095	)	$	(235,157	)	$	(189,398	)	$	(238,161	)
Cost of products sold	(181,948		)	(230,404		)	(182,429		)	(229,480		)
Gross profit	3,853			(4,753		)	(6,969		)	(8,681		)
Operating expenses:
Selling, general and administrative expense	1,984			884			(652		)	4,546
Loss on disposal of subsidiaries	0			0			0			0
	1,984			884			(652		)	4,546
Operating income	1,869			(5,637		)	(6,317		)	(13,227		)
Interest expense	34			0			0			0
Other expense (income), net	(1,964		)	1,170			1,440			(981		)
Income before income taxes	3,799			(6,807		)	(7,757		)	(12,246		)
Provision for income taxes	934			(2,046		)	(4,100		)	(2,153		)
Consolidated net income	2,865			(4,761		)	(3,657		)	(10,093		)
Net income attributable to noncontrolling interest	0			0			0			0
Net income attributable to shareholders of Tech Data Corporation	$	2,865		$	(4,761	)	$	(3,657	)	$	(10,093	)
Net income per share attributable to shareholders of Tech Data Corporation:
Basic	$	0.06		$	(0.10	)	$	(0.09	)	$	(0.24	)
Diluted	$	0.06		$	(0.11	)	$	(0.09	)	$	(0.24	)


(1)	The adjustments are to correct errors previously discussed in Note 2 - Restatement of Consolidated Financial Statements.



Consolidated Balance Sheet
	As of
AS RESTATED	April 30			July 31			October 31			January 31
	(In thousands)
Fiscal year 2013:
Current assets:
Cash and cash equivalents	$	409,529		$	235,402		$	473,386		$	340,564
Accounts receivable	2,595,886			2,574,108			2,729,523			3,215,920
Inventories	2,067,543			1,946,033			2,100,482			2,254,510
Prepaid expenses and other assets	180,364			191,358			199,963			334,431
Total current assets	5,253,322			4,946,901			5,503,354			6,145,425
Property and equipment, net	89,093			82,770			83,373			84,395
Other assets, net	317,882			299,599			309,730			601,140
Total assets	$	5,660,297		$	5,329,270		$	5,896,457		$	6,830,960

Current liabilities:
Accounts payable	$	2,998,673		$	2,924,397		$	3,123,351		$	3,657,251
Accrued expenses and other liabilities	471,216			429,744			458,493			620,167
Revolving credit loans and current maturities of long-term debt, net	30,933			37,912			65,848			167,522
Total current liabilities	3,500,822			3,392,053			3,647,692			4,444,940
Long-term debt, less current maturities	57,816			53,659			354,267			354,458
Other long-term liabilities	82,078			80,531			80,911			113,193
Total liabilities	3,640,716			3,526,243			4,082,870			4,912,591

Shareholders’ equity:
Common stock	89			89			89			89
Additional paid-in capital	754,300			756,008			673,489			680,715
Treasury stock, at cost	(766,558		)	(907,777		)	(907,533		)	(905,900		)
Retained earnings	1,691,281			1,725,980			1,768,917			1,813,358
Accumulated other comprehensive income	309,960			200,887			278,625			330,107
Equity attributable to shareholders of Tech Data Corporation	1,989,072			1,775,187			1,813,587			1,918,369
Noncontrolling interest	30,509			27,840			0			0
Total equity	2,019,581			1,803,027			1,813,587			1,918,369
Total liabilities and equity	$	5,660,297		$	5,329,270		$	5,896,457		$	6,830,960



	As of
AS REPORTED	April 30			July 31			October 31			January 31
	(In thousands)
Fiscal year 2013:
Current assets:
Cash and cash equivalents	$	447,038		$	277,633		$	515,788		$	392,132
Accounts receivable	2,656,030			2,622,811			2,781,490			3,262,751
Inventories	1,949,279			1,819,233			2,025,424			2,132,760
Prepaid expenses and other assets	184,928			199,185			206,095			343,425
Total current assets	5,237,275			4,918,862			5,528,797			6,131,068
Property and equipment, net	88,246			81,953			83,049			84,220
Other assets, net	318,662			300,248			310,471			590,965
Total assets	$	5,644,183		$	5,301,063		$	5,922,317		$	6,806,253

Current liabilities:
Accounts payable	$	2,952,182		$	2,862,684		$	3,111,391		$	3,603,038
Accrued expenses and other liabilities	483,060			444,899			469,171			588,766
Revolving credit loans and current maturities of long-term debt, net	30,933			37,913			65,848			164,341
Total current liabilities	3,466,175			3,345,496			3,646,410			4,356,145
Long-term debt, less current maturities	57,816			53,659			354,267			354,458
Other long-term liabilities	82,414			80,862			86,780			118,020
Total liabilities	3,606,405			3,480,017			4,087,457			4,828,623

Shareholders’ equity:
Common stock	89			89			89			89
Additional paid-in capital	750,878			752,763			670,346			677,682
Treasury stock, at cost	(766,558		)	(907,777		)	(907,533		)	(905,900		)
Retained earnings	1,711,459			1,745,917			1,791,815			1,874,357
Accumulated other comprehensive income	311,401			202,214			280,143			331,402
Equity attributable to shareholders of Tech Data Corporation	2,007,269			1,793,206			1,834,860			1,977,630
Noncontrolling interest	30,509			27,840			0			0
Total equity	2,037,778			1,821,046			1,834,860			1,977,630
Total liabilities and equity	$	5,644,183		$	5,301,063		$	5,922,317		$	6,806,253



	As of
ADJUSTMENTS ⁽¹⁾	April 30			July 31			October 31			January 31
	(In thousands)
Fiscal year 2013:
Current assets:
Cash and cash equivalents	$	(37,509	)	$	(42,231	)	$	(42,402	)	$	(51,568	)
Accounts receivable	(60,144		)	(48,703		)	(51,967		)	(46,831		)
Inventories	118,264			126,800			75,058			121,750
Prepaid expenses and other assets	(4,564		)	(7,827		)	(6,132		)	(8,994		)
Total current assets	16,047			28,039			(25,443		)	14,357
Property and equipment, net	847			817			324			175
Other assets, net	(780		)	(649		)	(741		)	10,175
Total assets	$	16,114		$	28,207		$	(25,860	)	$	24,707

Current liabilities:
Accounts payable	$	46,491		$	61,713		$	11,960		$	54,213
Accrued expenses and other liabilities	(11,844		)	(15,155		)	(10,678		)	31,401
Revolving credit loans and current maturities of long-term debt, net	0			(1		)	0			3,181
Total current liabilities	34,647			46,557			1,282			88,795
Long-term debt, less current maturities	0			0			0			0
Other long-term liabilities	(336		)	(331		)	(5,869		)	(4,827		)
Total liabilities	34,311			46,226			(4,587		)	83,968

Shareholders’ equity:
Common stock	0			0			0			0
Additional paid-in capital	3,422			3,245			3,143			3,033
Treasury stock, at cost	0			0			0			0
Retained earnings	(20,178		)	(19,937		)	(22,898		)	(60,999		)
Accumulated other comprehensive income	(1,441		)	(1,327		)	(1,518		)	(1,295		)
Equity attributable to shareholders of Tech Data Corporation	(18,197		)	(18,019		)	(21,273		)	(59,261		)
Noncontrolling interest	0			0			0			0
Total equity	(18,197		)	(18,019		)	(21,273		)	(59,261		)
Total liabilities and equity	$	16,114		$	28,207		$	(25,860	)	$	24,707


(1)	The adjustments are to correct errors previously discussed in Note 2 - Restatement of Consolidated Financial Statements.



	As of
AS RESTATED	April 30			July 31			October 31			January 31
	(In thousands)
Fiscal year 2012:
Current assets:
Cash and cash equivalents	$	652,315		$	791,557		$	796,895		$	486,262
Accounts receivable	2,863,654			2,750,223			2,863,609			2,778,641
Inventories	2,439,798			2,085,967			2,098,746			1,932,289
Prepaid expenses and other assets	206,074			192,681			207,351			197,308
Total current assets	6,161,841			5,820,428			5,966,601			5,394,500
Property and equipment, net	96,045			91,330			88,178			88,881
Other assets, net	293,053			287,816			317,443			312,887
Total assets	$	6,550,939		$	6,199,574		$	6,372,222		$	5,796,268

Current liabilities:
Accounts payable	$	3,179,558		$	3,005,199		$	3,279,802		$	3,091,611
Accrued expenses and other liabilities	528,053			494,456			508,790			533,835
Revolving credit loans and current maturities of long-term debt, net	418,444			424,320			411,909			48,490
Total current liabilities	4,126,055			3,923,975			4,200,501			3,673,936
Long-term debt, less current maturities	64,889			62,810			61,223			57,253
Other long-term liabilities	67,847			63,796			76,809			82,950
Total liabilities	4,258,791			4,050,581			4,338,533			3,814,139

Shareholders’ equity:
Common stock	89			89			89			89
Additional paid-in capital	764,574			765,055			767,933			773,087
Treasury stock, at cost	(486,330		)	(632,154		)	(728,600		)	(739,614		)
Retained earnings	1,497,919			1,543,265			1,593,127			1,637,103
Accumulated other comprehensive income	489,962			445,928			371,476			283,139
Equity attributable to shareholders of Tech Data Corporation	2,266,214			2,122,183			2,004,025			1,953,804
Noncontrolling interest	25,934			26,810			29,664			28,325
Total equity	2,292,148			2,148,993			2,033,689			1,982,129
Total liabilities and equity	$	6,550,939		$	6,199,574		$	6,372,222		$	5,796,268



	As of
AS REPORTED	April 30			July 31			October 31			January 31
	(In thousands)
Fiscal year 2012:
Current assets:
Cash and cash equivalents	$	807,554		$	905,138		$	899,666		$	505,178
Accounts receivable	2,916,549			2,833,724			2,928,041			2,871,243
Inventories	2,271,537			1,878,911			1,961,299			1,802,976
Prepaid expenses and other assets	210,514			198,006			213,952			202,505
Total current assets	6,206,154			5,815,779			6,002,958			5,381,902
Property and equipment, net	95,955			91,242			88,092			88,595
Other assets, net	295,378			290,045			319,583			314,921
Total assets	$	6,597,487		$	6,197,066		$	6,410,633		$	5,785,418

Current liabilities:
Accounts payable	$	3,211,201		$	2,985,230		$	3,295,867		$	3,042,809
Accrued expenses and other liabilities	539,169			503,413			520,751			551,280
Revolving credit loans and current maturities of long-term debt, net	418,444			424,320			411,909			48,490
Total current liabilities	4,168,814			3,912,963			4,228,527			3,642,579
Long-term debt, less current maturities	64,889			62,810			61,223			57,253
Other long-term liabilities	69,368			65,315			76,864			83,438
Total liabilities	4,303,071			4,041,088			4,366,614			3,783,270

Shareholders’ equity:
Common stock	89			89			89			89
Additional paid-in capital	762,873			763,025			765,525			769,826
Treasury stock, at cost	(486,330		)	(632,154		)	(728,600		)	(739,614		)
Retained earnings	1,502,072			1,552,179			1,605,698			1,659,767
Accumulated other comprehensive income	489,778			446,029			371,643			283,755
Equity attributable to shareholders of Tech Data Corporation	2,268,482			2,129,168			2,014,355			1,973,823
Noncontrolling interest	25,934			26,810			29,664			28,325
Total equity	2,294,416			2,155,978			2,044,019			2,002,148
Total liabilities and equity	$	6,597,487		$	6,197,066		$	6,410,633		$	5,785,418



	As of
ADJUSTMENTS ⁽¹⁾	April 30			July 31			October 31			January 31
	(In thousands)
Fiscal year 2012:
Current assets:
Cash and cash equivalents	$	(155,239	)	$	(113,581	)	$	(102,771	)	$	(18,916	)
Accounts receivable	(52,895		)	(83,501		)	(64,432		)	(92,602		)
Inventories	168,261			207,056			137,447			129,313
Prepaid expenses and other assets	(4,440		)	(5,325		)	(6,601		)	(5,197		)
Total current assets	(44,313		)	4,649			(36,357		)	12,598
Property and equipment, net	90			88			86			286
Other assets, net	(2,325		)	(2,229		)	(2,140		)	(2,034		)
Total assets	$	(46,548	)	$	2,508		$	(38,411	)	$	10,850

Current liabilities:
Accounts payable	$	(31,643	)	$	19,969		$	(16,065	)	$	48,802
Accrued expenses and other liabilities	(11,116		)	(8,957		)	(11,961		)	(17,445		)
Revolving credit loans and current maturities of long-term debt, net	0			0			0			0
Total current liabilities	(42,759		)	11,012			(28,026		)	31,357
Long-term debt, less current maturities	0			0			0			0
Other long-term liabilities	(1,521		)	(1,519		)	(55		)	(488		)
Total liabilities	(44,280		)	9,493			(28,081		)	30,869

Shareholders’ equity:
Common stock	0			0			0			0
Additional paid-in capital	1,701			2,030			2,408			3,261
Treasury stock, at cost	0			0			0			0
Retained earnings	(4,153		)	(8,914		)	(12,571		)	(22,664		)
Accumulated other comprehensive income	184			(101		)	(167		)	(616		)
Equity attributable to shareholders of Tech Data Corporation	(2,268		)	(6,985		)	(10,330		)	(20,019		)
Noncontrolling interest	0			0			0			0
Total equity	(2,268		)	(6,985		)	(10,330		)	(20,019		)
Total liabilities and equity	$	(46,548	)	$	2,508		$	(38,411	)	$	10,850


(1)	The adjustments are to correct errors previously discussed in Note 2 - Restatement of Consolidated Financial Statements.

TECH DATA CORP | 2013 | FY |

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