Henry Schein 2013 Annual Report Download - page 59

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50
Accounts receivable days sales outstanding and inventory turns
Our accounts receivable days sales outstanding from operations increased to 40.0 days as of December 28,
2013 from 39.8 days as of December 29, 2012. During the years ended December 28, 2013 and December 29,
2012, we wrote off approximately $8.3 million and $8.3 million, respectively, of fully reserved accounts receivable
against our trade receivable reserve. Our inventory turns from operations decreased to 5.9 for the year ended
December 28, 2013 from 6.2 for the year ended December 29, 2012. Our working capital accounts may be
impacted by current and future economic conditions.
Contractual obligations
The following table summarizes our contractual obligations related to fixed and variable rate long-term debt,
including interest (assuming an average long-term rate of interest of 2.5%), as well as operating and capital lease
obligations, inventory purchase commitments and fixed asset obligations as of December 28, 2013:
Payments due by period (in thousands)
< 1 year 2 - 3 years 4 - 5 years > 5 years Total
Contractual obligations:
Long-term debt, including interest ......................
.
$ 15,654 $ 194,421 $ 65,240 $ 256,405 $ 531,720
Inventory purchase commitments ........................
.
41,920 44,533 48,339 53,294 188,086
Operating lease obligations .................................
.
75,394 106,392 58,866 61,680 302,332
Capital lease obligations, including interest ........
.
847 756 35 - 1,638
Fixed asset obligations .........................................
.
1,565 - - - 1,565
Total ....................................................................
.
$ 135,380 $ 346,102 $ 172,480 $ 371,379 $ 1,025,341
Credit Facilities
On September 12, 2012, we entered into a new $500 million revolving credit agreement (the “Credit
Agreement”) with a $200 million expansion feature, which expires on September 12, 2017. This credit facility
replaced our then existing $400 million revolving credit facility with a $100 million expansion feature, which
would have expired on September 5, 2013. There were no borrowings outstanding under this revolving credit
facility as of December 28, 2013. The interest rate is based on the USD LIBOR plus a spread based on our
leverage ratio at the end of each financial reporting quarter. The Credit Agreement provides, among other things,
that we are required to maintain certain interest coverage and maximum leverage ratios, and contains customary
representations, warranties and affirmative covenants. The Credit Agreement also contains customary negative
covenants, subject to negotiated exceptions on liens, indebtedness, significant corporate changes (including
mergers), dispositions and certain restrictive agreements. As of December 28, 2013, there were $10.1 million of
letters of credit provided to third parties under the credit facility.
As of December 28, 2013, we had various other short-term bank credit lines available, of which approximately
$29.5 million was outstanding. At December 28, 2013, borrowings under all of our credit lines had a weighted
average interest rate of 2.73%.