BRIGHTPOINT INC

CIK:0000918946|SEC Filings

Discontinued Operations

6 Months Ended

Jun. 30, 2012

5. Discontinued Operations

Details of discontinued operations for the three and six months ended June 30, 2012 and 2011 are as follows (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2012	2011		2012	2011
Gain (loss) from discontinued operations before income taxes (1)	$ (94)	$ (860)		$ (362)	$ 970
Income tax benefit	-	-		-	-
Gain (loss) from discontinued operations	(94)	(860)		(362)	970

Gain (loss) on disposal from discontinued operations (2)	272	(232)		(8)	(773)

Total discontinued operations, net of income taxes	$ 178	$(1,092)		$ (370)	$ 197

(1) Gain (loss) from discontinued operations before income taxes for the three and six months ended June 30, 2011 primarily relates to the liquidation of our discontinued France operation. We abandoned our France operation in the third quarter of 2009.

(2) Gain (loss) on disposal of discontinued operations for the three and six months ended June 30, 2012 and 2011 primarily relates to cumulative foreign currency translation adjustments.

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating activities
Net income (loss)	$ (1,991)	$ 19,970
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	25,953	22,789
Non-cash compensation	5,576	6,416
Restructuring charges	4,615	4,169
Change in deferred taxes	4,537	3,410
Gain on investment in Intcomex, Inc.	0	(3,038)
Other non-cash	(451)	616
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures:
Accounts receivable	83,342	47,874
Inventories	72,960	(25,414)
Other operating assets	(8,648)	15,411
Accounts payable and accrued expenses	(117,096)	(111,249)
Net cash provided by (used in) operating activities	68,797	(19,046)
Investing activities
Capital expenditures	(9,132)	(37,725)
Acquisitions, net of cash acquired	(9,426)	(16,420)
Decrease (increase) in other assets	1,773	(518)
Net cash used in investing activities	(16,785)	(54,663)
Financing activities
Net proceeds from (repayments on) lines of credit	(55,971)	55,019
Repayments on short-term financing	(69)	(407)
Deferred financing costs paid	0	(297)
Purchase of treasury stock	(3,821)	(3,778)
Excess (deficient) tax benefit from equity based compensation	(1,389)	1,992
Proceeds from common stock issuances under employee stock option plans	0	394
Net cash provided by (used in) financing activities	(61,250)	52,923
Effect of exchange rate changes on cash and cash equivalents	(1,557)	2,944
Net decrease in cash and cash equivalents	(10,795)	(17,842)
Cash and cash equivalents at beginning of period	40,842	41,658
Cash and cash equivalents at end of period	$ 30,047	$ 23,816

Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 30,047	$ 40,842
Accounts receivable (less allowance for doubtful accounts of $9,204 in 2012 and $8,236 in 2011)	480,349	568,947
Inventories, net	395,163	468,937
Other current assets	66,146	66,039
Total current assets	971,705	1,144,765
Property and equipment, net	141,664	145,948
Other intangibles, net	105,010	98,693
Other assets	40,537	37,927
Goodwill	86,470	79,578
Total assets	1,345,386	1,506,911
Current liabilities:
Accounts payable	679,183	766,825
Accrued expenses	142,890	171,108
Lines of credit and other short-term borrowings	9,100	6,465
Total current liabilities	831,173	944,398
Long-term liabilities:
Lines of credit, long-term	185,874	246,542
Other long-term liabilities	31,348	24,806
Total long-term liabilities	217,222	271,348
Total liabilities	1,048,395	1,215,746
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.01 par value: 1,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.01 par value: 100,000 shares authorized, 92,787 issued in 2012 and 91,470 issued in 2011	928	915
Additional paid-in-capital	660,793	656,533
Treasury stock, at cost, 23,610 shares in 2012 and 23,226 shares in 2011	(171,884)	(168,064)
Accumulated other comprehensive income	7,695	8,923
Accumulated deficit	(208,566)	(207,142)
Total Brightpoint, Inc. shareholders' equity	288,966	291,165
Non-controlling interest	8,025	0
Total shareholders' equity	296,991	291,165
Total liabilities and shareholders' equity	$ 1,345,386	$ 1,506,911