Office Depot 2007 Annual Report Download - page 60

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Amortizing intangible assets, which are included in other intangible assets in the Consolidated Balance Sheets,
include the following:
December 29, 2007 December 30, 2006
(Dollars in thousands)
Gross
Carrying Value
Accumulated
Amortization
Gross
Carrying Value
Accumulated
Amortization
Customer lists ................................................................ $ 112,238 $ (74,563) $ 108,086 $ (57,636)
Other.............................................................................. 2,608 (1,056) 2,600 (406)
Total............................................................................... $ 114,846 $ (75,619) $ 110,686 $ (58,042)
In conjunction with our 2006 acquisitions, we recorded $31.4 million of amortizing intangible assets. These assets,
primarily customer lists, are being amortized over four to eleven years, with a weighted average of ten years. We did
not record any identifiable intangible assets in conjunction with our acquisition of Axidata, Inc. in 2007.
Amortization of intangible assets was $15.3 million in 2007, $13.6 million in 2006 and $13.4 million in 2005 (at
average foreign currency exchange rates).
Estimated future amortization expense related to finite-lived intangible assets at December 29, 2007 exchange rates
is as follows:
(Dollars in thousands)
2008 ...................................................................................................... $ 8,467
2009 ...................................................................................................... 4,304
2010 ...................................................................................................... 3,898
2011 ...................................................................................................... 3,654
2012 ...................................................................................................... 3,654
NOTE D —DEBT
Debt consists of the following:
(Dollars in thousands)
December 29,
2007
December 30,
2006
Short-term borrowings and current maturities of long-term debt:
Short-term borrowings...................................................................... $ 200,290 $ 40,066
Capital lease obligations ................................................................... 7,706 8,064
$ 207,996 $ 48,130
Long-term debt, net of current maturities:
Revolving credit facility ................................................................... $ 90,420 $ 64,361
$400 million senior notes.................................................................. 400,384 400,489
Capital lease obligations ................................................................... 116,658 105,902
$ 607,462 $ 570,752
In May 2007, we amended and extended our Revolving Credit Facility (the “Agreement”). The Agreement provides
for multi-currency borrowings of up to $1 billion which, upon approval of the lenders, may be increased to $1.25
billion. The Agreement has a sub-limit of up to $350 million for standby and trade letters of credit issuances.
Amounts may be borrowed, repaid and reborrowed through May 25, 2012. Borrowings under this Agreement bear
interest at either (a) the base rate, described in the Agreement as a fluctuating rate equal to the lead bank’s base rate,
(b) the Eurodollar rate, described in the Agreement as a periodic fixed rate equal to the London Interbank Offering
Rate (“LIBOR”) plus a percentage spread based on our credit rating and fixed charge coverage ratio, or (c) the rate
set through a bid process. The effective interest rate on yen borrowings was 1.4625% and other borrowings was
5.275% at the end of 2007. At December 29, 2007, our aggregate short- and long-term borrowings under the
Agreement totaled approximately $235.4 million. We had approximately $688.7 million of available credit under
this Agreement that includes coverage of $75.9 million outstanding letters of credit. We had an additional $56.9
million of letters of credit outstanding under separate agreements.