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54
Year Ended December 31, 2004
Corporate
Sector
Public
Sector Berbee
Headquarters /
Other Consolidated
Net sales $ 4,105,090 $ 1,632,684 $ - $ - $ 5,737,774
Income (loss) from operations $ 327,520 $ 93,411 $ - $ (28,172) $ 392,759
Net interest income and
other expense 7,101
Income before income taxes $ 399,860
Total assets $ 411,381 $ 237,686 $ - $ 871,868 $ 1,520,935
The $25.0 million litigation settlement, as described in Note 15, is reflected in the
Headquarters/Other loss from operations in 2006.
Our assets are primarily managed by our headquarters functions, including the majority of all
cash, cash equivalents, and marketable securities, inventory, and property and equipment. As a
result, capital expenditures and related depreciation are immaterial for the operating segments.
The operating segments’ assets consist principally of accounts receivable, and, for the Berbee
segment specifically, goodwill and other intangible assets.
No single customer accounted for more than 1% of net sales in fiscal years 2006, 2005 or 2004.
During 2006, approximately 2% of our sales were to customers outside of the continental United
States, primarily in Canada.
17. Share Repurchase Programs
Since 1998, we have repurchased a total of 17.5 million shares of our common stock at a total
cost of $876.9 million under various share repurchase programs authorized by our Board of
Directors. The program authorizing the repurchase of 4,529,600 shares that was approved by
our Board of Directors in April 2005 was completed in March 2006. In April 2006, our Board of
Directors authorized a new share repurchase program of up to 5,000,000 shares of our common
stock. Share repurchases may be made from time to time in both open market and private
transactions, as conditions warrant. The new program is expected to remain in effect through
April 2008, unless earlier terminated by the Board or completed. The following table presents
share repurchases during the years ended December 31, 2006, 2005 and 2004 (in thousands):
Year
Shares Amount
2006
4,059 $ 227,669
2005
4,570 $ 258,298
2004
1,352 $ 86,010
As of December 31, 2006, 3.2 million shares remained available for repurchase under our current
program. Repurchased shares are held in treasury pending use for general corporate purposes,
including issuances under various employee stock plans.
18. Micro Warehouse Transactions
During September 2003, we purchased selected U.S. assets and the Canadian operations of
Micro Warehouse, a reseller of computers, software and peripheral products. The U.S.
transaction, completed on September 9, 2003, was accounted for as a purchase of assets, with
the $20.0 million purchase price allocated to the assets purchased, including inventory, fixed