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Restatement of Consolidated Financial Statements (Tables)
 9 Months Ended
Oct. 31, 2012
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 October 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands, except per share amounts)
 
 
 
 
 
 
Net sales
$
6,040,556

 
$
(3,081
)
 
$
6,037,475

Cost of products sold
5,732,295

 
(899
)
 
5,731,396

Gross profit
308,261

 
(2,182
)
(1) 
306,079

Selling, general and administrative expenses
238,715

 
3,769

(2) 
242,484

Operating income
69,546

 
(5,951
)
 
63,595

Interest expense
4,359

 
0

 
4,359

Other expense (income), net
2,044

 
(974
)
(3) 
1,070

Income before income taxes
63,143

 
(4,977
)
 
58,166

Provision for income taxes
16,122

 
(2,016
)
(4) 
14,106

Consolidated net income
47,021

 
(2,961
)
 
44,060

Net income attributable to noncontrolling interest
(1,123
)
 
0

 
(1,123
)
Net income attributable to shareholders of Tech Data Corporation
$
45,898

 
$
(2,961
)
 
$
42,937

 
 
 
 
 
 
Net income per share attributable to shareholders of Tech Data Corporation:
 
 
 
 
 
Basic
$
1.22

 
$
(0.08
)
 
$
1.14

Diluted
$
1.21

 
$
(0.08
)
 
$
1.13

 
 
 
 
 
 

(1) Gross profit adjustments primarily reflect the impact of vendor accounting errors of $3.5 million, partially offset by various other immaterial errors.
(2) Selling, general and administrative expenses adjustments primarily reflect the impact of errors in the Company's primary operating subsidiary in the UK and two other European subsidiaries of $2.9 million and an adjustment to reclassify investment income of $0.9 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.
(3) Other expense (income), primarily includes an adjustment to reclassify investment income of $0.9 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 decrease tax expense as a result of the decrease in profit resulting from the restatement adjustments described herein.





 
Nine months ended October 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands, except per share amounts)
 
 
 
 
 
 
Net sales
$
17,897,617

 
$
18,340

(1) 
$
17,915,957

Cost of products sold
16,967,895

 
15,982

(1) 
16,983,877

Gross profit
929,722

 
2,358

(2) 
932,080

Selling, general and administrative expenses
720,027

 
5,689

(3) 
725,716

Operating income
209,695

 
(3,331
)
 
206,364

Interest expense
10,850

 
0

 
10,850

Other expense (income), net
4,566

 
(1,449
)
(4) 
3,117

Income before income taxes
194,279

 
(1,882
)
 
192,397

Provision for income taxes
55,446

 
(1,648
)
(5) 
53,798

Consolidated net income
138,833

 
(234
)
 
138,599

Net income attributable to noncontrolling interest
(6,785
)
 
0

 
(6,785
)
Net income attributable to shareholders of Tech Data Corporation
$
132,048

 
$
(234
)
 
$
131,814

Net income per share attributable to shareholders of Tech Data Corporation:
 
 
 
 
 
Basic
$
3.37

 
$
(0.01
)
 
$
3.36

Diluted
$
3.34

 
$
(0.01
)
 
$
3.33


(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 vendor accounting errors in the Company's primary operating subsidiary in the UK and two other European subsidiaries of $4.8 million, partially offset by various other immaterial errors.
(3) Selling, general and administrative expenses adjustments primarily reflect the impact of errors in the Company's primary operating subsidiary in the UK and two other European subsidiaries of $3.1 million, an adjustment to reclassify investment income of $1.4 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), primarily includes an adjustment to reclassify investment income of $1.4 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 reduce tax expense as a result of the reduction in profit resulting from the restatement adjustments described herein.



Consolidated Statement of Comprehensive Income
 
 
 
 
 
Three months ended October 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands)
 
 
 
 
 
 
Consolidated net income
$
47,021

 
$
(2,961
)
 
$
44,060

Other comprehensive income:
 
 
 
 
 
Foreign currency translation adjustment
81,127

 
(191
)
 
80,936

Total comprehensive income
128,148

 
(3,152
)
 
124,996

Comprehensive income attributable to noncontrolling interest
(1,795
)
 
0

 
(1,795
)
Comprehensive income attributable to shareholders of Tech Data Corporation
$
126,353

 
$
(3,152
)
 
$
123,201



 
Nine months ended October 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands)
 
 
 
 
 
 
Consolidated net income
$
138,833

 
$
(234
)
 
$
138,599

Other comprehensive loss:
 
 
 
 
 
Foreign currency translation adjustment
(2,134
)
 
(902
)
 
(3,036
)
Total comprehensive income
136,699

 
(1,136
)
 
135,563

Comprehensive income attributable to noncontrolling interest
(5,736
)
 
0

 
(5,736
)
Comprehensive income attributable to shareholders of Tech Data Corporation
$
130,963

 
$
(1,136
)
 
$
129,827




Consolidated Statement of Cash Flows
 
 
 
 
 
 
Nine months ended October 31, 2012
 
As Previously Reported
 
Adjustments
 
As Restated
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
 
Cash received from customers
$
17,996,786

 
$
888,612

 
$
18,885,398

Cash paid to vendors and employees
(17,875,711
)
 
(907,754
)
 
(18,783,465
)
Interest paid, net
(8,238
)
 
0

 
(8,238
)
Income taxes paid
(75,629
)
 
0

 
(75,629
)
Net cash provided by operating activities
37,208

 
(19,142
)
 
18,066

Cash flows from investing activities:
 
 
 
 
 
Acquisition of businesses, net of cash acquired
(8,782
)
 
0

 
(8,782
)
Expenditures for property and equipment
(10,512
)
 
(1,988
)
 
(12,500
)
Software development costs
(18,097
)
 
(1,274
)
 
(19,371
)
Net cash used in investing activities
(37,391
)
 
(3,262
)
 
(40,653
)
Cash flows from financing activities:
 
 

 
 
Proceeds from the reissuance of treasury stock
3,172

 
0

 
3,172

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

 
(180,781
)
Repayments on long-term loans from joint venture partner
(49,549
)
 
0

 
(49,549
)
Acquisition of noncontrolling interest in joint venture
(117,220
)
 
0

 
(117,220
)
Return of capital to joint venture partner
(9,074
)
 
0

 
(9,074
)
Proceeds from issuance of Senior Notes, net of expense
345,810

 
0

 
345,810

Net borrowings on revolving credit loans
17,412

 
0

 
17,412

Principal payments on long-term debt
(372
)
 
0

 
(372
)
Excess tax benefit from stock-based compensation
5,229

 
(214
)
 
5,015

Net cash provided by financing activities
14,627

 
(214
)
 
14,413

Effect of exchange rate changes on cash and cash equivalents
(3,834
)
 
(868
)
 
(4,702
)
Net increase (decrease) in cash and cash equivalents
10,610

 
(23,486
)
 
(12,876
)
Cash and cash equivalents at beginning of year
505,178

 
(18,916
)
 
486,262

Cash and cash equivalents at end of year
$
515,788

 
$
(42,402
)
 
$
473,386

Reconciliation of net income to net cash provided by operating activities:
 
 
 
 
 
Net income attributable to shareholders of Tech Data Corporation
$
132,048

 
$
(234
)
 
$
131,814

Net income attributable to noncontrolling interest
6,785

 
0

 
6,785

Consolidated net income
138,833

 
(234
)
 
138,599

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

 
 
Depreciation and amortization
40,114

 
0

 
40,114

Provision for losses on accounts receivable
9,346

 
110

 
9,456

Stock-based compensation expense
10,328

 
(176
)
 
10,152

Accretion of debt discount on Senior Notes
22

 
0

 
22

Excess tax benefit from stock-based compensation
(5,229
)
 
214

 
(5,015
)
Changes in operating assets and liabilities:
 
 

 
 
Accounts receivable
95,330

 
(39,987
)
 
55,343

Inventories
(218,175
)
 
53,127

 
(165,048
)
Prepaid expenses and other assets
15,817

 
(5,901
)
 
9,916

Accounts payable
53,352

 
(36,618
)
 
16,734

Accrued expenses and other liabilities
(102,530
)
 
10,323

 
(92,207
)
Total adjustments
(101,625
)
 
(18,908
)
 
(120,533
)
Net cash provided by operating activities
$
37,208

 
$
(19,142
)
 
$
18,066