Henry Schein 2013 Annual Report Download - page 82

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(in thousands, except per share data)
73
Note 4 – Investments and Other
Investments and other consisted of the following:
December 28, December 29,
2013 2012
Investment in unconsolidated affiliates ............................................................................ $ 205,556 $ 191,075
N
on-current deferred foreign, state and local income taxes ............................................. 48,470 37,737
N
otes receivable (1) ......................................................................................................... 10,836 9,851
Auction rate securities, net of temporary impairment ...................................................... 2,654 2,816
Distribution rights and exclusivity agreements, net of amortization ................................ 3,321 4,030
Security deposits .............................................................................................................. 3,341 3,291
Debt issuance costs, net of amortization .......................................................................... 2,011 7,207
Acquisition related indemnification ................................................................................. 13,880 14,168
Acquisition related loan receivable (2) ............................................................................ 145,000 -
Other long-term assets ...................................................................................................... 26,876 22,759
Total ........................................................................................................................ $ 461,945 $ 292,934
(1)Long-term notes receivable carry interest rates ranging from 2.17% to 12.0% and are due in varying installments through
December 31, 2020.
(2) See Note 9 - Business Acquisitions, Divestiture and Other Transaction for additional details of the loan receivable from
BioHorizons, Inc.
Amortization expense related to other long-term assets for the years ended December 28, 2013, December 29,
2012 and December 31, 2011 was $6.0 million, $4.6 million and $4.0 million.
Note 5 – Debt
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 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%.