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Restatement of Consolidated Financial Statements (Tables)
 6 Months Ended
Jul. 31, 2013
Accounting Changes and Error Corrections [Abstract]  
Restatement to Prior Year Consolidated Financial Statements
The following tables present the impact of the restatement on the Company’s previously issued consolidated financial statements.






 
 
 
 
 
 
Consolidated Statement of Income
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended July 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands, except per share amounts)
 
 
 
 
 
 
Net sales
$
5,961,500

 
$
6,919

(1) 
$
5,968,419

Cost of products sold
5,660,256

 
5,570

(1) 
5,665,826

Gross profit
301,244

 
1,349

(2) 
302,593

Selling, general and administrative expenses
241,988

 
294

 
242,282

Operating income
59,256

 
1,055

 
60,311

Interest expense
3,422

 
0

 
3,422

Other expense (income), net
1,178

 
634

(3) 
1,812

Income before income taxes
54,656

 
421

 
55,077

Provision for income taxes
16,370

 
180

(4) 
16,550

Consolidated net income
38,286

 
241

 
38,527

Net income attributable to noncontrolling interest
(3,828
)
 
0

 
(3,828
)
Net income attributable to shareholders of Tech Data Corporation
$
34,458

 
$
241

 
$
34,699

 
 
 
 
 
 
Net income per share attributable to shareholders of Tech Data Corporation:
 
 
 
 
 
Basic
$
0.89

 
$
0.00

 
$
0.89

Diluted
$
0.88

 
$
0.01

 
$
0.89

 
 
 
 
 
 
(1) Net sales and cost of products sold adjustments primarily reflect the impact of sales cutoff errors that were not appropriately recorded based on the delivery terms.
(2) Gross profit adjustments primarily reflect the impact of both vendor accounting errors in the Company's primary operating subsidiary in the UK and two other European subsidiaries of $2.3 million, and the reversal of an improper deferral of net foreign currency exchange losses in a European subsidiary of $0.2 million, partially offset by various other immaterial errors.
(3) Other expense (income), net has been adjusted to reclassify investment losses of $0.6 million related to the Company’s deferred
compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan.
(4) The provision for income taxes has been adjusted primarily to increase the tax expense as a result of the increase in profit resulting from the restatement adjustments described herein.





 
Six months ended July 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands, except per share amounts)
 
 
 
 
 
 
Net sales
$
11,857,061

 
$
21,421

(1) 
$
11,878,482

Cost of products sold
11,235,600

 
16,881

(1) 
11,252,481

Gross profit
621,461

 
4,540

(2) 
626,001

Selling, general and administrative expenses
481,312

 
1,920

(3) 
483,232

Operating income
140,149

 
2,620

 
142,769

Interest expense
6,491

 
0

 
6,491

Other expense (income), net
2,522

 
(475
)
(4) 
2,047

Income before income taxes
131,136

 
3,095

 
134,231

Provision for income taxes
39,324

 
368

(5) 
39,692

Consolidated net income
91,812

 
2,727

 
94,539

Net income attributable to noncontrolling interest
(5,662
)
 
0

 
(5,662
)
Net income attributable to shareholders of Tech Data Corporation
$
86,150

 
$
2,727

 
$
88,877

Net income per share attributable to shareholders of Tech Data Corporation:
 
 
 
 
 
Basic
$
2.15

 
$
0.07

 
$
2.22

Diluted
$
2.14

 
$
0.06

 
$
2.20


(1) Net sales and cost of products sold adjustments primarily reflect the impact of sales cutoff errors that were not appropriately recorded based on the delivery terms.
(2) Gross profit adjustments primarily reflect the impact of both vendor accounting errors in the Company's primary operating subsidiary in the UK and two other European subsidiaries of $5.9 million, and the reversal of an improper deferral of net foreign currency exchange losses in a European subsidiary of $0.6 million, partially offset by various other immaterial errors.
(3) Selling, general and administrative expenses include an adjustment to reclassify investment income of $0.5 million related to the Company’s deferred compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan to other expense (income), net and various other adjustments to correct immaterial errors.
(4) Other expense (income), net has been adjusted to reclassify investment income of $0.5 million related to the Company’s deferred compensation plan assets from selling, general and administrative expenses where it was recorded as a reduction of the corresponding payroll expense related to the plan.
(5) The provision for income taxes has been adjusted primarily to increase tax expense as a result of the increase in profit resulting from the restatement adjustments described herein.



Consolidated Statement of Comprehensive Income
 
 
 
 
 
Three months ended July 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands)
 
 
 
 
 
 
Consolidated net income
$
38,286

 
$
241

 
$
38,527

Other comprehensive loss:
 
 
 
 
 
Foreign currency translation adjustment
(111,257
)
 
114

 
(111,143
)
Total comprehensive loss
(72,971
)
 
355

 
(72,616
)
Comprehensive income attributable to noncontrolling interest
(1,758
)
 
0

 
(1,758
)
Comprehensive loss attributable to shareholders of Tech Data Corporation
$
(74,729
)
 
$
355

 
$
(74,374
)


 
Six months ended July 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands)
Consolidated net income
$
91,812

 
$
2,727

 
$
94,539

Other comprehensive loss:
 
 
 
 

Foreign currency translation adjustment
(83,261
)
 
(711
)
 
(83,972
)
Total comprehensive income
8,551

 
2,016

 
10,567

Comprehensive income attributable to noncontrolling interest
(3,942
)
 
0

 
(3,942
)
Comprehensive income attributable to shareholders of Tech Data Corporation
$
4,609

 
$
2,016

 
$
6,625


Consolidated Statement of Cash Flows
 
 
 
 
 
 
Six months ended July 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
 
Cash received from customers
$
12,030,773

 
$
579,011

 
$
12,609,784

Cash paid to vendors and employees
(11,956,158
)
 
(599,762
)
 
(12,555,920
)
Interest paid, net
(5,516
)
 
0

 
(5,516
)
Income taxes paid
(65,004
)
 
0

 
(65,004
)
Net cash provided by (used in) operating activities
4,095

 
(20,751
)
 
(16,656
)
Cash flows from investing activities:
 
 
 
 

Acquisition of businesses, net of cash acquired
(8,782
)
 
0

 
(8,782
)
Expenditures for property and equipment
(6,758
)
 
(1,664
)
 
(8,422
)
Software development costs
(13,570
)
 
(1,274
)
 
(14,844
)
Net cash used in investing activities
(29,110
)
 
(2,938
)
 
(32,048
)
Cash flows from financing activities:
 
 
 
 
 
Proceeds from the reissuance of treasury stock
3,037

 
0

 
3,037

Cash paid for purchase of treasury stock
(180,781
)
 
0

 
(180,781
)
Return of capital to joint venture partner
(9,074
)
 
0

 
(9,074
)
Net repayments on revolving credit loans
(9,764
)
 
0

 
(9,764
)
Principal payments on long-term debt
(247
)
 
0

 
(247
)
Excess tax benefit from stock-based compensation
4,915

 
0

 
4,915

Net cash used in financing activities
(191,914
)
 
0

 
(191,914
)
Effect of exchange rate changes on cash and cash equivalents
(10,616
)
 
374

 
(10,242
)
Net decrease in cash and cash equivalents
(227,545
)
 
(23,315
)
 
(250,860
)
Cash and cash equivalents at beginning of year
505,178

 
(18,916
)
 
486,262

Cash and cash equivalents at end of year
$
277,633

 
$
(42,231
)
 
$
235,402

Reconciliation of net income to net cash provided by (used in) operating activities:
 
 
 
 

Net income attributable to shareholders of Tech Data Corporation
$
86,150

 
$
2,727

 
$
88,877

Net income attributable to noncontrolling interest
5,662

 
0

 
5,662

Consolidated net income
91,812

 
2,727

 
94,539

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 

 

Depreciation and amortization
26,590

 
0

 
26,590

Provision for losses on accounts receivable
5,241

 
89

 
5,330

Stock-based compensation expense
6,682

 
(75
)
 
6,607

Accretion of debt discount on Senior Notes and convertible senior debentures
0

 
0

 
0

Excess tax benefit from stock-based compensation
(4,915
)
 
0

 
(4,915
)
Changes in operating assets and liabilities:
 
 

 

Accounts receivable
180,171

 
(41,848
)
 
138,323

Inventories
(59,537
)
 
115

 
(59,422
)
Prepaid expenses and other assets
(5,552
)
 
968

 
(4,584
)
Accounts payable
(117,813
)
 
12,485

 
(105,328
)
Accrued expenses and other liabilities
(118,584
)
 
4,788

 
(113,796
)
Total adjustments
(87,717
)
 
(23,478
)
 
(111,195
)
Net cash provided by (used in) operating activities
$
4,095

 
$
(20,751
)
 
$
(16,656
)