Ingram Micro 2005 Annual Report Download

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Ingram Micro Annual Report 2005

Table of contents

  • Page 1
    Ingram Micro Annual Report 2005

  • Page 2
    ...out there and Ingram Micro-at the forefront of the global technology marketplace-is making a difference-by offering an incredible array of solutions and services to over 160,000 resellers and by distributing and marketing hundreds of thousands of IT products worldwide from more than 1,300 suppliers.

  • Page 3
    ... industry-from network and systems solutions to peripherals and software. Add to that Ingram Micro's entrance into the high-end consumer electronics industry and the company has created a strategic, diversified mix of products and services that this year generated $28.8 billion in worldwide sales.

  • Page 4
    THEM

  • Page 5
    ... for wireless mobility, including notebook computers, smart handhelds and AIDC/POS products; the convergence of consumer and commercial markets; the automation of the home; and the millions of small and mediumsized businesses in need of complete IT solutions. And yet, in the world of IT distribution...

  • Page 6
    ENTER NEW MARKETS Even more doors continue to open for us-particularly abroad where Ingram Micro is the only global broadline distributor in Asia-Pacific. There, just over a year since the company acquired Tech Pacific, the integration of the two companies is now complete and the region has become a...

  • Page 7
    THERE

  • Page 8
    Indeed, the door is open. Beyond the threshold is a company at the forefront of a growing, vibrant industry-a company that has created a winning formula of strong management, a careful yet innovative diversification strategy and an unwavering commitment to their business partners.

  • Page 9
    EVERYWHERE YOU ENTER >

  • Page 10
    THE WORLD OF INGRAM MICRO

  • Page 11
    ...E. Spierkel Chief Executive Officer Worldwide Executive Team In 2005, Ingram Micro opened doors of opportunity in the form of new markets and new geographies. The year was a significant turning point in our history, as the company charged ahead, outperforming our peers and generating profit levels...

  • Page 12
    ... and other pursuits, such as a new distribution agreement with Juniper Networks, helped us to reach our target, the real push came from the things that we do every day: providing excellent customer service, superior execution and smart management. > (1) Source: CIA World Fact Book, 2005 and IDC WW...

  • Page 13
    ... in the region is not limited to our integration of Tech Pacific. China is another success story. My thanks to the Ingram Micro associates from around the world who did a tour of duty in China, helping to improve our infrastructure, management processes and business controls. These actions have paid...

  • Page 14
    ...2003, 2002 and 2001, respectively, which amounts represent all of the undivided interests in transferred accounts receivable sold to and held by third parties as of the respective balance sheet dates. (3) Please refer to Schedule 1 for more detailed information and reconciliation of GAAP to Non-GAAP...

  • Page 15
    ... (State or other jurisdiction of incorporation or organization) 62-1644402 (I.R.S. Employer Identification No.) 1600 E. ST. ANDREW PLACE, SANTA ANA, CALIFORNIA 92705 (Address, including zip code, of principal executive offices) (714) 566-1000 (Registrant's telephone number, including area code...

  • Page 16
    ... CONTENTS PART I 1 ITEM 1. BUSINESS 1 Introduction 1 History 1 Industry 1 Company Strengths 2 Customers 4 Sales and Marketing 5 Products 5 Services 6 Suppliers 6 Competition 6 Asset Management 7 Trademarks and Service Marks 8 Employees 8 Available Information 8 EXECUTIVE OFFICERS OF...

  • Page 17
    ... largest global information technology (""IT'') wholesale distributor, providing sales, marketing, and logistics services for the IT industry worldwide. Ingram Micro provides a vital link in the IT supply chain by generating demand and developing markets for our technology partners. We create value...

  • Page 18
    ... representatives in 34 countries, and sell our products and services to resellers in more than 140 countries. We have local sales offices and/or Ingram Micro sales representatives in North America (United States and Canada), Europe (Austria, Belgium, Denmark, Finland, France, Germany, Hungary, Italy...

  • Page 19
    ... maximizing profits. We help our supply chain clients deliver products to key customers and new markets on a fee-for-service basis, leveraging over 20 years of experience in our core distribution activities. Services vary depending on customer requirements and can include end-to-end order management...

  • Page 20
    ... working relationship within Ingram Micro's North America locations. We leverage our IT systems and warehouse locations to support custom shipment requirements, and by optimizing delivery methodologies, we deliver faster, while reducing shipping costs. We remain focused on ensuring that our catalog...

  • Page 21
    ...market research, on-line marketing, retail programs, sales promotions, training, solutions marketing, and assistance with trade shows and other events. Products We distribute and market hundreds of thousands of IT products worldwide from the industry's premier computer hardware suppliers, networking...

  • Page 22
    ..., warranties and support, configuration and assembly, packaged services, and mobile communication services). Services We offer fee-based supply chain services to suppliers and customers desiring to outsource specific supply chain functions through our Ingram Micro Logistics division in North America...

  • Page 23
    .... We compete, in some cases, with hardware suppliers and software publishers that sell directly to reseller customers and end-users. However, we may become a business partner to these companies by providing supply chain services optimized for the IT market. Additionally, as consolidation occurs...

  • Page 24
    ... of various trademarks and service marks, including, among others, ""Ingram Micro,'' the Ingram Micro logo, ""V7'' (Video Seven), ""VentureTech Network,'' ""Nimax,'' and ""AVAD.'' Certain of these marks are registered, or are in the process of being registered, in the United States and various other...

  • Page 25
    ... Micro Europe Executive Vice President and President, Ingram Micro Asia-Pacific Senior Vice President, Secretary and General Counsel Senior Vice President and President, Ingram Micro Latin America Senior Vice President and Chief Information Officer Senior Vice President, Human Resources Corporate...

  • Page 26
    .... Larry C. Boyd. Mr. Boyd, age 53, has been our senior vice president, secretary and general counsel since March 2004. He previously served as senior vice president, U.S. legal services, for Ingram Micro North America from January 2000 to January 2004. Prior to joining Ingram Micro, he was a partner...

  • Page 27
    ... our prices in response to the actions of our competitors and thereby experience a further reduction in our gross margins. Furthermore, to remain competitive we may be forced to offer more credit or extended payment terms to our customers. This could increase our required capital, financing costs...

  • Page 28
    ...customers from accessing our price and product availability information. From time to time we may acquire other businesses having information systems and records, which may be converted and integrated into IMpulse or other Ingram Micro information systems. This can be a lengthy and expensive process...

  • Page 29
    ... sales terms and conditions, such as reducing the amount of price protection and return rights as well as reducing the level of purchase discounts and rebates they make available to us. In most cases, we have no guaranteed price or delivery agreements with suppliers. In certain product categories...

  • Page 30
    ... in general, and the IT products and services distribution industry in particular, experienced a severe downturn in demand for fiscal 2000 through most of fiscal 2003. This downturn resulted in a decline in our net sales and gross profit and impacted financial results of many of our customers and...

  • Page 31
    ... risk of declines in inventory value. If major suppliers decrease the availability of price protection to us, such a change in policy could lower our gross margins on products we sell or cause us to record inventory write-downs. We expect the restrictive supplier terms and conditions to continue for...

  • Page 32
    ...our suppliers and/or competitors and the prices we charge our customers, which in turn may negatively impact our revenues and/or gross margins; ‚ currency fluctuations in countries in which we operate; ‚ variations in our levels of excess inventory and doubtful accounts, and changes in the terms...

  • Page 33
    ... Our corporate headquarters is located in Santa Ana, California. We support our global operations through an extensive sales office and distribution network throughout North America, Europe, Latin America, and Asia-Pacific. As of December 31, 2005, we operated 89 distribution centers worldwide...

  • Page 34
    ... report, through the solicitation of proxies or otherwise. PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS Common Stock. Our Common Stock is traded on the New York Stock Exchange under the symbol IM. The following table sets forth the high and low price per...

  • Page 35
    ...Information. The following table provides information, as of December 31, 2005, with respect to equity compensation plans under which equity securities of our company... (b) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (c) Number of Securities Remaining Available for...

  • Page 36
    ... per share data) 2001 Selected Operating Information Net sales Gross profit Income from operations(1 Income before income taxes and cumulative effect of adoption of a new accounting standard(2 Income before cumulative effect of adoption of a new accounting standard(3 Net income (loss)(4 Basic...

  • Page 37
    ..., as well as the cumulative effect of adoption of a new accounting standard, net of income taxes, of $280,861 in 2002 relating to the adoption of Statement of Financial Accounting Standards No. 142, ""Goodwill and Other Intangible Assets.'' All balance sheet data are given at end of period. Includes...

  • Page 38
    ... of numerous acquisitions worldwide, the addition of new product categories and suppliers, the addition of new customers, increased sales to our existing customer base, and growth in the IT products and services distribution industry in general. In 2001, our worldwide net sales declined by...

  • Page 39
    ... and custom installers serving the home automation and entertainment market in the United States, or U.S. This strategic acquisition accelerates our entry into the adjacent consumer electronics market and improves the operating margin in our North American operations. Our Reorganization and Profit...

  • Page 40
    ... including certain North America positions in finance and shared services, customer service, vendor management and certain U.S. positions in technical support and inside sales (excluding field sales and management positions) Ì to a leading global business process outsource provider. As part of the...

  • Page 41
    ...; the value and adequacy of collateral received from our customers in certain circumstances; and our historical loss experience. ‚ Vendor Programs - We receive funds from vendors for price protection, product rebates, marketing/promotion, infrastructure reimbursement and meet competition programs...

  • Page 42
    ... As additional information becomes available, or these uncertainties are resolved with the taxing authorities, revisions to these liabilities may be required, resulting in additional provision for or benefit from income taxes in our consolidated income statement. Our U.S. federal tax returns for the...

  • Page 43
    ... indicated. 2005 2004 2003 Net sales Cost of sales Gross profit Operating expenses: Selling, general and administrative Reorganization costs Income from operations Other expense, net Income before income taxes Provision for (benefits from) income taxes Net income 100.0% 100.0% 100.0% 94...

  • Page 44
    ... profit enhancement program, the reduction of related implementation costs of $23.4 million from 2003 (see Note 3 to our consolidated financial statements) and a $20 million charge in 2003 related to the bankruptcy of Micro Warehouse in the U.S., one of our former customers. As a percentage of net...

  • Page 45
    ... of the charge related to the Micro Warehouse bankruptcy of approximately 0.2% of North America revenue in 2003, as well as economies of scale from the higher volume of business, the benefits of our comprehensive profit enhancement program and reduction of the related implementation costs, partially...

  • Page 46
    ... elsewhere in this Annual Report on Form 10-K. The operating results for any quarter shown are not necessarily indicative of results for any future period. Net Sales Income Income Before Gross From Income Net Profit Operations Taxes Income (In millions, except per share data) Diluted Earnings Per...

  • Page 47
    ...enhancement program costs. The decrease in accounts receivable reflects strong working capital management during the year. Our debt levels may increase and/or our cash balance may decrease if we experience an increase in our working capital days or if we experience significant sales growth. Net cash...

  • Page 48
    ... acquired certain net assets of AVAD, the leading distributor for solution providers and custom installers serving the home automation and entertainment market in the U.S. This strategic acquisition accelerated our entry into the adjacent consumer electronics market and has improved operating margin...

  • Page 49
    ... sufficient resources to meet our present and future working capital and cash requirements for at least the next twelve months. On-Balance Sheet Capital Resources On July 29, 2004, we entered into a revolving accounts receivable-based financing program in the U.S., which provides for up to $500...

  • Page 50
    collect the receivables by the relevant supplier under applicable local law. Based on our assessment of the duration of these programs, the history and strength of the financial partners involved, other historical data, various remedies available to us under these programs, and the remoteness of ...

  • Page 51
    ... as our European off-balance sheet accounts receivable-based factoring facility, including minimum tangible net worth, restrictions on funded debt and interest coverage and trade accounts receivable portfolio performance covenants, including metrics related to receivables and payables. We are also...

  • Page 52
    ... 2002, we entered into an agreement with a third-party provider of IT outsourcing services. The services to be provided include mainframe, major server, desktop and enterprise storage operations, wide-area and local-area network support and engineering; systems management services; help desk 36

  • Page 53
    ...leading global business process outsource service provider. The services to be provided include selected North America positions in finance and shared services, customer service, vendor management and selected U.S. positions in technical support and inside sales (excluding field sales and management...

  • Page 54
    ...election as an executive officer, if later. At December 31, 2005 and January 1, 2005, our employee loans receivable balance was $0.6 million and $0.5 million, respectively. In July 2005, we assumed from AVAD agreements with certain representative companies owned by the former owners of AVAD, who are...

  • Page 55
    ...the discussion of new accounting standards. Market Risk We are exposed to the impact of foreign currency fluctuations and interest rate changes due to our international sales and global funding. In the normal course of business, we employ established policies and procedures to manage our exposure to...

  • Page 56
    ... Consolidated Balance Sheet Consolidated Statement of Income Consolidated Statement of Stockholders' Equity Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Schedule II Ì Valuation and Qualifying Accounts Report of Independent Registered Public Accounting Firm...

  • Page 57
    INGRAM MICRO INC. CONSOLIDATED BALANCE SHEET Fiscal Year End 2005 2004 (Dollars in 000s, except share data) ASSETS Current assets: Cash and cash equivalents Trade accounts receivable (less allowances of $81,831 and $93,465 Inventories Other current assets Total current assets Property and ...

  • Page 58
    INGRAM MICRO INC. CONSOLIDATED STATEMENT OF INCOME Fiscal Year 2005 2004 2003 (Dollars in 000s, except per share data) Net sales Cost of sales Gross profit Operating expenses: Selling, general and administrative Reorganization costs Income from operations Other expense (income): Interest ...

  • Page 59
    ... of Class A Common Stock related to Employee Stock Purchase Plan Stock-based compensation expense Surrender of restricted Class A Common Stock associated with payment of withholding taxÏÏÏÏ Comprehensive income January 1, 2005 Stock options exercised Income tax benefit from exercise of...

  • Page 60
    ... on sale of a business Noncash charges for interest and compensation Loss on redemption of senior subordinated notes Deferred income taxes Changes in operating assets and liabilities, net of effects of acquisitions: Changes in amounts sold under accounts receivable programs Accounts receivable...

  • Page 61
    .... The net impact on gross margin from estimated sales returns is included in allowances against trade accounts receivable in the consolidated balance sheet. Vendor Programs Funds received from vendors for price protection, product rebates, marketing/promotion, infrastructure reimbursement and meet...

  • Page 62
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) Packard Company. There were no other vendors that represented 10% or more of the Company's net sales in each of the last three years. Warranties The Company's suppliers generally warrant the products distributed by the ...

  • Page 63
    ... America for fiscal year 2005 relates to the acquisition of certain net assets of AVAD (see Note 4 for the detailed discussion of the AVAD acquisition). In 2002, the Company acquired a value-add IT distributor in Belgium. The purchase agreement required payments of an initial purchase price plus...

  • Page 64
    ...on the final computation agreed to by the sellers and the Company. During 2005, the Company acquired the remaining shares of stock held by minority shareholders of its subsidiaries in New Zealand and India. The total purchase price for these acquisitions consisted of cash payments of $596, resulting...

  • Page 65
    ... adjustments. Earnings Per Share The Company reports a dual presentation of Basic Earnings Per Share (""Basic EPS'') and Diluted Earnings Per Share (""Diluted EPS''). Basic EPS excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during...

  • Page 66
    ... the computation of Diluted EPS because the exercise price was greater than the average market price of the Class A Common Stock, thereby resulting in an antidilutive effect. Accounting for Stock-Based Compensation The Company has adopted the provisions of Statement of Financial Accounting Standards...

  • Page 67
    ... FSP 143-1 provides guidance on the accounting for certain obligations associated with the Waste Electrical and Electronic Equipment Directive (the ""Directive''), adopted by the EU. Under the Directive, the waste management obligation for historical equipment (products put on the market on or prior...

  • Page 68
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) ment and certain U.S. positions in technical support and inside sales (excluding field sales and management positions) Ì to a leading global business process outsource provider. As part of the plan, the Company also ...

  • Page 69
    ... plan in North America, $6,709 relating to the integration of Tech Pacific in Asia-Pacific; partially offset by net adjustments of $280 for detailed actions taken in previous periods discussed below. The reorganization costs of $9,847 in North America include employee termination benefits of $7,219...

  • Page 70
    ..., distribution centers, returns processing centers and configuration centers throughout North America, consolidation and/or exit of warehouse and office facilities in Europe, Latin America and Asia-Pacific; and other costs primarily comprised of contract termination expenses associated with...

  • Page 71
    ... and custom installers serving the home automation and entertainment market in the U.S. This strategic acquisition accelerated the Company's entry into the adjacent consumer electronics market and improved the Company's operating margin in its North American operations. AVAD was acquired for...

  • Page 72
    ... significantly strengthens the Company's management team and ability to execute its operational objectives in the growing Asia-Pacific region. The total cost of the acquisition is as follows: Purchase price: Cash paid to sellers Debt assumed (net of cash acquired Acquisition costs 385,022 162...

  • Page 73
    ..., the Company acquired substantially all of the assets and assumed certain liabilities of Nimax, Inc., a privately held distributor of automatic identification and data capture and point-of-sale solutions. The purchase price, consisting of a cash payment of $8,749 in 2004 and $1,000 payable on or...

  • Page 74
    ... off-balance sheet debt, are included in Other expense (income) in the Company's consolidated statement of income. Note 6 Ì Property and Equipment Property and equipment consist of the following: Fiscal Year End 2005 2004 Land Buildings and leasehold improvements Distribution equipment Computer...

  • Page 75
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) commercial paper rates plus a predetermined margin at the drawdown date. At December 31, 2005 and January 1, 2005, the Company had borrowings of $38,726 and $0, respectively, under this trade accounts receivable-based ...

  • Page 76
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) support purchases by its subsidiaries, payment of insurance premiums and flooring arrangements. The Company's available capacity under the current agreement is reduced by the amount of any issued and outstanding letters of ...

  • Page 77
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) as the amount of common stock that it can repurchase annually. At December 31, 2005, the Company was in compliance with all covenants or other requirements set forth in the credit agreements or other agreements with the ...

  • Page 78
    .... The Softbank common stock was sold in the public market by certain of Ingram Micro's foreign subsidiaries, which are located in a low-tax jurisdiction. At the time of sale, the Company concluded that U.S. taxes were not currently payable on the gains based on its internal assessment and opinions...

  • Page 79
    ... balance was $566 and $548, respectively. In July 2005, the Company assumed from AVAD agreements with certain representative companies owned by the former owners of AVAD, who are now employed with Ingram Micro. These include agreements with two of the representative companies to sell products...

  • Page 80
    ..., major server, desktop and enterprise storage operations, wide-area and local-area network support and engineering; systems management services; help desk services; and worldwide voice/PBX. This agreement expires in December 2009, but is cancelable at the option of the Company subject to payment of...

  • Page 81
    ... segment profit is income from operations. Geographic areas in which the Company operated during 2005 include North America (United States and Canada), Europe (Austria, Belgium, Denmark, Finland, France, Germany, Hungary, Italy, The Netherlands, Norway, Spain, Sweden, Switzerland, and United Kingdom...

  • Page 82
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) Financial information by geographic segments is as follows: As of and for the Fiscal Year Ended 2005 2004 2003 Net sales North America Sales to unaffiliated customers Intergeographic sales Europe Asia-Pacific Latin ...

  • Page 83
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) Supplemental information relating to reorganization costs and other profit enhancement program costs by geographic segment is as follows: 2005 Fiscal Year 2004 2003 Reorganization costs North America Europe Asia-Pacific ...

  • Page 84
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) In August 2001, the Human Resources Committee of the Company's Board of Directors authorized a modification of the exercise schedule to retirees under the Equity Incentive Plans. The modification extended the exercise period...

  • Page 85
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) Stock options exercisable totaled approximately 20,416,000, 18,470,000 and 20,637,000 at December 31, 2005, January 1, 2005 and January 3, 2004, respectively, at weighted-average exercise prices of $15.79, $16.74 and $16.92,...

  • Page 86
    INGRAM MICRO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued) There were no issued and outstanding shares of Class B Common Stock during the three-year period ended December 31, 2005. The detail of changes in the number of issued and outstanding shares of Class A Common Stock for the ...

  • Page 87
    INGRAM MICRO INC. SCHEDULE II Ì VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Year Charged to Costs and Expenses Deductions (Dollars in 000s) Balance at End of Year Description Other(*) Allowance for doubtful accounts receivable and sales returns: 2005 2004 2003 $93,465 91,613 ...

  • Page 88
    ...INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Ingram Micro Inc.: We have completed integrated audits of Ingram Micro Inc.'s December 31, 2005 and January 1, 2005 consolidated financial statements and of its internal control over financial reporting as of...

  • Page 89
    ... regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements...

  • Page 90
    ...ended December 31, 2005. Our management's assessment of the effectiveness of our internal control over financial reporting as of December 31, 2005 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears in this Form 10...

  • Page 91
    ... Accounts'' of this Annual Report under ""Item 8. Financial Statements and Supplemental Data.'' (a) 3. List of Exhibits Exhibit No. Exhibit 3.1 3.2 3.3 4.1 10.1 10.2 10.3 10.4 Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.01 to the Company's Registration...

  • Page 92
    ... year (the ""2003 10-K'') Ingram Micro Inc. Executive Incentive Plan (incorporated by reference to Exhibit 10.44 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 29, 2002) Executive Officer Severance Policy adopted October 2003 (incorporated by reference to Exhibit 10.52 to...

  • Page 93
    ... Receivables Transfer and Servicing Agreement between BNP Paribas Bank N.V. as Transferee and Ingram Micro Distribution GMBH as Originator and Ingram Micro Holding GMBH as Depositor, dated August 14, 2003 and restated as of March 31, 2004 (incorporated by reference to Exhibit 10.2 to the Company...

  • Page 94
    ... Ingram Micro Code of Conduct (incorporated by reference to Exhibit 14.1 to the Company's Current Report on Form 8-K filed on August 24, 2005) 21.1 Subsidiaries of the Registrant 23.1 Consent of Independent Registered Public Accounting Firm 31.1 Certification by Principal Executive Officer pursuant...

  • Page 95
    ... AUTHORIZED. INGRAM MICRO INC. By: /s/ Larry C. Boyd Larry C. Boyd Senior Vice President, Secretary and General Counsel March 14, 2006 PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS REPORT HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE REGISTRANT AND IN...

  • Page 96
    Signature Title Date /s/ Linda Fayne Levinson Linda Fayne Levinson /s/ Gerhard Schulmeyer Gerhard Schulmeyer /s/ Michael T. Smith Michael T. Smith /s/ Joe B. Wyatt Joe B. Wyatt Director March 14, 2006 Director March 14, 2006 Director March 14, 2006 Director March 14, 2006 80

  • Page 97
    ... BY PRINCIPAL EXECUTIVE OFFICER (SOX 302) I, Gregory M. E. Spierkel, certify that: 1. I have reviewed this annual report on Form 10-K of Ingram Micro Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to...

  • Page 98
    ... BY PRINCIPAL FINANCIAL OFFICER (SOX 302) I, William D. Humes, certify that: 1. I have reviewed this annual report on Form 10-K of Ingram Micro Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make...

  • Page 99
    ... of complying with Section 1350 of Chapter 63 of Title 18 of the United States Code. In my capacity as chief executive officer of Ingram Micro Inc., I hereby certify that, to the best of my knowledge, Ingram Micro Inc.'s annual report on Form 10-K for the fiscal year ended December 31, 2005 as filed...

  • Page 100
    ... of complying with Section 1350 of Chapter 63 of Title 18 of the United States Code. In my capacity as chief financial officer of Ingram Micro Inc., I hereby certify that, to the best of my knowledge, Ingram Micro Inc.'s annual report on Form 10-K for the fiscal year ended December 31, 2005 as filed...

  • Page 101
    SCHEDULE 1 TO INGRAM MICRO 2005 ANNUAL REPORT RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Dollars in 000s, except per share data) 2005 Income from operations (GAAP Reorganization costs Other major-program costs included in: Selling, general and administrative expenses Cost of sales ...

  • Page 102
    ... NYSE corporate governance listing standards as required by NYSE Rule 303A.12(a). Regional Management Keith W. F. Bradley Executive Vice President and President Ingram Micro North America Hans T. Koppen Executive Vice President and President Ingram Micro Europe Alain Monié Executive Vice President...

  • Page 103
    © 2006 Ingram Micro Inc. All rights reserved. Ingram Micro and the Ingram Micro logo are trademarks used under license by Ingram Micro Inc. All other trademarks are the property of their respective companies.