Ingram Micro 2000 Annual Report Download - page 49

.4 2 |INGRAM MICRO
N o t e 6 — P r o p e r t y a n d e q u i p m e n t
Property and equipment consists of the following:
Fiscal Year End
2 0 0 0 1 9 9 9
Land $ 6, 5 5 2 $ 8, 2 3 7
Buildings and leasehold improvements 1 3 2, 1 5 8 9 3, 2 8 2
Distribution equipment 2 0 5, 5 4 6 1 8 0, 1 4 7
Computer equipment and software 2 9 8, 9 3 3 249,753
6 4 3, 1 8 9 531,419
Accumulated depreciation ( 2 9 2, 3 6 0 ) (214,776)
$3 5 0, 8 2 9 $ 316,643
N o t e 7 — L o n g - t e r m d e b t
The Company has a $1,000,000 revolving credit agreement (the “U.S.Credit Facility”) with a syndicate of banks.The U.S.
Credit Facility is unsecured and matures on October 30, 2001.The Company also has two additional multicurrency revolving credit
agreements of $500,000 (the “European Credit Facility”) and $150,000 (the “Canadian Credit Facility”) with two bank syndicates.
The European Credit Facility and the Canadian Credit Facility are unsecured and mature on October 28, 2002 and October 28,
2001, respectively. Collectively, the U.S.Credit Facility, the European Credit Facility and the Canadian Credit Facility are referred
to as the “Credit Facilities.”
Revolving loan rate and competitive bid interest rate options are available under the Credit Facilities.The spreads over LIBOR
for revolving rate loans and associated facility fees are determined by reference to certain financial ratios or credit ratings by recog-
nized rating agencies on the Company’s senior unsecured debt.At December 30, 2000 and January 1, 2000, the Company had
$75,484 and $503,537 in outstanding borrowings under the Credit Facilities.The weighted average interest rate on outstanding
borrowings under the Credit Facilities at December 30,2000 and January 1,2000, was 7.28% and 6.52%, respectively.
The Company is required to comply with certain financial covenants,including minimum tangible net worth, restrictions on
funded debt and interest coverage.The credit facilities also restrict the amount of dividends the Company can pay as well as the
amount of common stock that the Company can repurchase annually. At December 30,2000, the Company was in compliance
with these covenants.
On June 9, 1998,the Company sold $1,330,000 aggregate principal amount at maturity of its Zero Coupon Convertible
Senior Debentures (“Debentures”) due 2018 in a private placement.The Company subsequently registered the resale of these
Debentures with the SEC and they are now generally saleable under Rule 144.The Debentures were sold at an issue price of
$346.18 per $1,000 principal amount at maturity (representing a yield to maturity of 5.375% per annum), and are convertible
into shares of the Company’s Class A Common Stock at a rate of 5.495 shares per $1,000 principal amount at maturity, subject to
adjustment under certain circumstances. Gross proceeds from the offering were $460,400. In 2000 and 1999, the Company repur-
chased Debentures with a total car rying value of $235,219 and $56,504, respectively, as of their repurchase dates for approximately
$231,330 and $50,321 in cash, respectively.The Debenture repurchases resulted in extraordinary gains of $2,420 and $3,778 in
2000 and 1999, respectively, net of $1,469 and $2,405 in income taxes, respectively. At December 30, 2000 and January 1,2000,
the carrying value of the outstanding Debentures was $220,035 and $440,943, respectively.
At December 30, 2000,the outstanding Debentures were convertible into approximately 3.1 million shares of the Company’s
Class A Common Stock.The Debentures are redeemable at the option of the Company on or after June 9,2003 at the issue price
N o tes to co n s o l i d a ted financial st a t e m e nts ]c o n t i nu e d
Dollars in 000s,except per share data