Ingram Micro 2006 Annual Report Download - page 74

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The changes in the carrying amount of goodwill for fiscal years 2006 and 2005 are as follows:
North
America Europe
Asia-
Pacific
Latin
America Total
Balance at January 1, 2005 ........... $ 78,495 $12,775 $468,395 $— $559,665
Acquisitions .................... 77,609 645 3,928 — 82,182
Foreign currency translation ........ 28 (1,693) (1,766) — (3,431)
Balance at December 31, 2005 ........ 156,132 11,727 470,557 — 638,416
Acquisitions .................... 603 1,011 (5,909) — (4,295)
Foreign currency translation ........ (3) 1,430 8,166 — 9,593
Balance at December 30, 2006 ........ $156,732 $14,168 $472,814 $— $643,714
Note 5 — Accounts Receivable
The Company has trade accounts receivable-based factoring facilities in Europe, which provide up to
approximately $236,000 of additional financing capacity, depending upon the level of trade accounts receivable
eligible to be transferred or sold. At December 30, 2006 and December 31, 2005, $68,505 and $0, respectively, of
trade accounts receivable were sold to and held by third parties under the Company’s European programs. At
December 30, 2006, the Company’s actual aggregate capacity under these programs, based on eligible accounts
receivable, was approximately $157,550. The Company is required to comply with certain financial covenants
under some of its European financing facilities, including minimum tangible net worth, restrictions on funded debt,
interest coverage and trade accounts receivable portfolio performance covenants. The Company is also restricted in
the amount of dividends it can pay as well as the amount of common stock that it can repurchase annually. At
December 30, 2006, the Company was in compliance with all covenants or other requirements set forth in its
accounts receivable-based factoring programs discussed above.
Losses in the amount of $1,503, $1,552 and $5,015 for the fiscal years 2006, 2005 and 2004, respectively,
related to the sale of trade accounts receivable under these facilities, or off-balance sheet debt, are included in other
expense (income) in the Company’s consolidated statement of income.
Note 6 — Property and Equipment
Property and equipment consist of the following:
2006 2005
Fiscal Year End
Land .................................................... $ 4,864 $ 2,041
Buildings and leasehold improvements ........................... 124,589 138,071
Distribution equipment ....................................... 233,866 204,679
Computer equipment and software............................... 309,151 284,505
672,470 629,296
Accumulated depreciation . . ................................... (501,035) (449,861)
$ 171,435 $ 179,435
50
INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)