Ingram Micro 2006 Annual Report Download - page 56

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Covenant Compliance
We are required to comply with certain financial covenants under some of our on-balance sheet financing
facilities, as well as our European off-balance sheet accounts receivable-based factoring facility, including
minimum tangible net worth, restrictions on funded debt and interest coverage and trade accounts receivable
portfolio performance covenants, including metrics related to receivables and payables. We are also restricted in the
amount of indebtedness we can incur, dividends we can pay, as well as the amount of common stock that we can
repurchase annually. At December 30, 2006, we were in compliance with all material covenants or other
requirements set forth in our financing facilities discussed above.
Contractual Obligations
The following summarizes our financing capacity and contractual obligations at December 30, 2006 (in
millions), and the effects of scheduled payments on such obligations are expected to have on our liquidity and cash
flows in future periods. The amounts do not include interest, substantially all of which is incurred at variable rates.
Contractual Obligations
Total
Capacity
Balance
Outstanding
Less Than
1 Year 1 — 3 Years 3 — 5 Years
After
5 years
Payments Due by Period
North American revolving accounts
receivable-based financing
facilities(1) ..................... $ 679.0 $234.4 $ — $ — $234.4 $ —
European revolving trade accounts
receivable-backed financing
facilities(1) ..................... 444.0 — — — — —
Asia-Pacific revolving trade accounts
receivable-backed financing
facilities(1) ..................... 197.0 36.3 — 36.3 — —
Revolving senior unsecured credit
facilities(2) ..................... 254.0 — — — — —
Bank overdrafts and other(3) .......... 796.0 238.8 238.8 — — —
Subtotal ........................ 2,370.0 509.5 238.8 36.3 234.4 —
European accounts receivable-based
factoring programs(4) .............. 236.0 68.5 68.5 — — —
Minimum payments under operating
leases and IT and business process
outsourcing agreements(5) .......... 405.4 405.4 93.5 165.6 90.1 56.2
Total ............................ $3,011.4 $983.4 $400.8 $201.9 $324.5 $56.2
(1) The capacity amount in the table above represents the maximum capacity available under these facilities. Our
actual capacity is dependent upon the actual amount of eligible trade accounts receivable that may be used to
support these facilities. As of December 30, 2006, our actual aggregate capacity under these programs based on
eligible accounts receivable was approximately $974 million (see Note 7 to our consolidated financial
statements).
(2) The capacity amount in the table above represents the maximum capacity available under these facilities. These
facilities can also be used to support letters of credit. At December 30, 2006, letters of credit totaling
$30.6 million were issued to certain vendors and financial institutions to support purchases by our subsidiaries,
payment of insurance premiums and flooring arrangements. The issuance of these letters of credit reduces our
available capacity by the same amount.
(3) Certain of these programs can also be used to support letters of credit. At December 30, 2006, letters of credit
totaling approximately $36.9 million were issued principally to certain vendors to support purchases by our
subsidiaries. The issuance of these letters of credit also reduces our available capacity by the same amount.
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