Ingram Micro 2000 Annual Report Download - page 27

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.2 0 |INGRAM MICRO
of $325.6 million were outstanding under the revolving credit and additional facilities. In addition,on June 9, 1998,the Company
sold $1.33 billion aggregate principal amount at maturity of its Zero Coupon Convertible Senior Debentures due 2018 in a private
placement.The Company subsequently registered the resale of these debentures with the Securities and Exchange Commission (the
“SEC”) and they are now generally saleable under Rule 144. Gross proceeds from this offering were $460.4 million.In 2000 and
1999, the Company repurchased Zero Coupon Convertible Senior Debentures with a total carrying value of $235.2 million and
$56.5 million, respectively, as of their repurchase dates for approximately $231.3 million and $50.3 million in cash, respectively.
The debenture repurchases resulted in an extraordinary gain, net of income taxes, of $2.4 million and $3.8 million in 2000 and
1999, respectively.The Company’s interest expense for a substantial portion of its existing, as well as any future, indebtedness will
be subject to fluctuations in interest rates which may cause fluctuations in the Company’s net income.
R e s u l t s o f o p e r a t i o n s
The following table sets forth the Company’s net sales by geographic region (excluding intercompany sales), and the percent-
age of total net sales represented thereby, for each of the periods indicated.
Fiscal Year
2 0 0 0 1 9 9 9 1 9 9 8
( D o llars in mill i o n s )
N e t Sales by Geographic Re g i o n :
United States $ 18,452 60.1% $ 16,814 59.9% $ 14,393 65.3%
Europe 7,472 24.3 7,344 26.2 5,624 25.5
Other international 4,791 15.6 3,911 13.9 2,017 9.2
Total $ 30,715 100.0% $ 28,069 100.0% $ 22,034 100.0%
The following table sets forth certain items from the Company’s consolidated statement of income as a percentage of net sales,
for each of the periods indicated.
Percentage of Net Sales
Fiscal Year
2 0 0 0 1 9 9 9 1 9 9 8
Net sales 100.0% 100.0% 100.0%
Cost of sales 94.9 95.2 93.7
Gross profit 5.1 4.8 6.3
Expenses:
SG&A expenses 3.9 4.0 4.1
Reorganization costs — 0.0 —
Income from operations 1.2 0.8 2.2
Other (income) expense, net (0.0) (0.3) 0.4
Income before income taxes
and extraordinary item 1.2 1.1 1.8
Provision for income taxes 0.5 0.4 0.7
Income before extraordinary item 0.7 0.7 1.1
Extraordinary item 0.0 0.0 —
Net income 0.7% 0.7% 1.1%
Ma n a g e m e n t’s discu s sion and analysis ]c o n t i nu e d