Tech Data 2013 Annual Report Download - page 36

Table of Contents
facilities at January 31, 2013, at a weighted average interest rate of 4.76%, and $48.0 million outstanding at January 31, 2012 at a weighted average
interest rate of 7.15%.
In consideration of the financial covenants discussed below, our maximum borrowing availability on our credit facilities is approximately $767.1
million, of which $167.0 million was outstanding at January 31, 2013. Certain of our credit facilities contain limitations on the amounts of annual
dividends and repurchases of common stock. Additionally, certain credit facilities require compliance with certain warranties and covenants. The
financial ratio covenants contained within these credit facilities include a debt to capitalization ratio and a minimum interest coverage ratio. At
January 31, 2013, we were in compliance with all such financial covenants, however, as discussed above, the Company has entered into certain
waiver agreements with its financial institutions in connection with the Company's restatement discussed in Note 2 of Notes to Consolidated
Financial Statements. The ability to draw funds under certain credit facilities is dependent upon sufficient collateral (in the case of the Receivables
Securitization Program) and meeting the aforementioned financial covenants, which may limit our ability to draw the full amount of these facilities.
At January 31, 2013, we had also issued standby letters of credit of $84.4 million. These letters of credit typically act as a guarantee of payment to
certain third parties in accordance with specified terms and conditions. The issuance of these letters of credit reduces our borrowing availability
under certain of the above-mentioned facilities.
Accounts Receivable Purchase Agreements
We have certain uncommitted accounts receivable purchase agreements under which certain accounts receivable may be sold, without recourse, to
third-party financial institutions. Under these programs, we may sell certain accounts receivable in exchange for cash less a discount, as defined in
the agreements. Available capacity under these programs, which we use as a source of working capital funding, is dependent on the level of
accounts receivable eligible to be sold into these programs and the financial institutions' willingness to purchase such receivables. In addition,
certain of these agreements also require that we continue to service, administer and collect the sold accounts receivable. At January 31, 2013 and
2012, the Company had a total of $284.7 million and $176.6 million , respectively, of accounts receivable sold to and held by financial institutions
under these agreements. During the fiscal years ended January 31, 2013, 2012 and 2011, discount fees recorded under these facilities were $2.6
million , $1.1 million , and $0.5 million, respectively, which are included as a component of "other expense (income), net" in the Company's
Consolidated Statement of Income.
Share Repurchase Programs
During fiscal 2013, we repurchased 3,752,939 shares of our common stock at a cost of $185.1 million in connection with both of our $100.0 million
share repurchase programs approved by the Board of Directors in May 2012 and November 2011. Both share repurchase programs were completed
during fiscal 2013. In addition, 125,609 shares were acquired outside of the stock repurchase programs related to the exercise of an employee’s
equity incentive grants.
In conjunction with our share repurchase programs approved by the Board of Directors, 10b5-1 plans were executed that instruct the brokers
selected by us to repurchase shares on our behalf. The amount of common stock repurchased in accordance with the 10b5-1 plans on any given
trading day is determined by a formula in the plans, which is based on the market price of our common stock and average daily volumes. Shares
repurchased by us are held in treasury for general corporate purposes, including issuances under equity incentive and benefit plans.
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