Ingram Micro 2000 Annual Report Download - page 48

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INGRAM MICRO
In April 1999, the Company acquired ITG Computers,an Australian computer products distributor. In addition, the Company
increased its ownership of Walton Kft.,a Hungarian based computer products distributor, to 100% in September 1999, including a
33% interest previously held by the Company’s majority-owned subsidiary Ingram Macrotron AG.Total cash paid for these acquisi-
tions was approximately $4,532, net of cash acquired.These acquisitions were accounted for using the purchase method,and the
results of their operations have been combined with those of the Company since their acquisition dates.The purchase price was
allocated to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition.The excess
of the purchase prices over the net assets acquired was approximately $4,922 and is being amortized on a straight-line basis over
10 years.
In July 1998,the Company completed the acquisition of approximately 99% and 91% of the outstanding common and pre-
ferred stock, respectively, of Macrotron AG (“Macrotron”) for approximately $100,000 in cash.Macrotron is based in Munich,
Germany, and operates primarily in Germany, Austria, and Switzerland.The acquisition was accounted for using the purchase
method, and the results of Macrotron’s operations have been combined with those of the Company since July 1, 1998, the effective
date of acquisition.The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair val-
ues at the date of acquisition.The excess of the purchase price over the net assets acquired was approximately $80,000 and is being
amortized on a straight-line basis over 30 years.
In June 1998, the Company completed its acquisition of Tulip Computer N.V.’s assembly facility and related business in
’s-Rosmalen,The Netherlands. In October 1998, the Company completed its purchase of the remaining 30% minority interest
in Ingram Dicom S.A.de C.V. (“Dicom”), a Mexican subsidiary. In December 1998, the Company completed the acquisition of
Nordemaq Commercial de Maquinas Nordeste Ltda, a Brazilian computer products distributor.The combined consideration paid
was approximately $19,000.The acquisitions were accounted for using the purchase method of accounting and the results of opera-
tions have been combined with those of the Company since the respective dates of acquisition.The purchase price was allocated to
the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.The excess of the purchase
price over net assets acquired for these acquisitions totaled approximately $9,000 and is being amortized on a straight-line basis
over 20 years.
The Company had no significant acquisitions in 2000.
N o t e 5 — A c c o u n t s r e c e i v a b l e
The Company has an arrangement pursuant to which certain U.S. trade accounts receivable of the Company are transferred
to a trust, which in turn has sold certificates representing undivided interests in the total pool of trade receivables without
recourse.The trust has issued fixed-rate medium-term certificates to investors and has the ability to issue variable rate certificates
to support a commercial paper program.In March 2000, the Company completed a new 5-year accounts receivable securitization
program,which provides for the issuance of up to $700,000 in commercial paper. Sales of receivables under these programs result
in a reduction of total accounts receivable on the Company’s consolidated balance sheet.Retained interests are carried at their fair
value estimated as the net realizable value, which considers the relatively short liquidation period and includes an estimated provi-
sion for credit losses. At December 30, 2000 and January 1, 2000,the amount of medium-term certificates outstanding totaled
$50,000 and $75,000, respectively, and the amount of commercial paper outstanding under the new program totaled $650,000
and $0, respectively.
The Company also established certain other facilities relating to accounts receivable in Europe and Canada which provide up to
approximately $260,000 of additional financing capacity. Under these programs,the Company had sold approximately $210,000
and $188,000 of trade accounts receivable in the aggregate at December 30,2000 and January 1,2000, respectively, resulting in a
further reduction of trade accounts receivable on the Company’s consolidated balance sheet.
Fees in the amount of $13,351, $7,223,and $8,667 in 2000, 1999 and 1998, respectively, related to the sale of trade accounts
receivable facilities are included in other expenses in the Company’s consolidated statement of income.