Ingram Micro 2000 Annual Report Download - page 52

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|.4 5
INGRAM MICRO
Reconciliation of the statutory U.S.federal income tax rate to the Company’s effective tax rate is as follows:
Fiscal Year
2000 1999 1998
U.S. statutory rate 35% 35% 35%
State income taxes, net of federal income tax benefit 3 3 4
Foreign rates in excess of statutory rate 1 — 1
Other (1) — —
Effective tax rate 38% 38% 40%
At December 30,2000, the Company had foreign net operating tax loss carryforwards of approximately $166,000 of which
approximately $146,000 has no expiration date.The remaining foreign net operating tax loss carryforwards expire through the
year 2010.
The Company does not provide for income taxes on undistri b uted earnings of foreign subsidiaries as such earnings are intended
to be perm a n e n t ly re i nvested in those operat i o n s.
N o t e 9 — C o m m i t m e n t s a n d c o n t i n g e n c i e s
There are various claims, lawsuits and pending actions against the Company incident to the Company’s operations. It is the
opinion of management that the ultimate resolution of these matters will not have a material adverse effect on the Company’s finan-
cial position or results of operations.
The Company has arrangements with certain finance companies that provide accounts receivable and inventory financing facili-
ties for its customers. In conjunction with certain of these arrangements, the Company has agreements with the finance companies
that would require it to repurchase certain inventory which might be repossessed from the customers by the finance companies.
Such repurchases have been insignificant to date.
The Company leases the majority of its facilities and certain equipment under noncancelable operating leases. Renewal and
purchase options at fair values exist for a substantial portion of the leases. Rental expense for the years ended 2000,1999, and
1998 was $102,334, $82,781, and $55,906, respectively.
Future minimum rental commitments on operating leases that have remaining noncancelable lease terms in excess of one year
as of December 30, 2000 were as follows:
2001 $ 6 4, 1 8 2
2002 5 4, 4 7 8
2003 4 5, 9 4 4
2004 4 2, 5 9 9
2005 4 1, 7 1 4
Thereafter 2 2 9, 0 6 7
$4 7 7, 9 8 4