Ingram Micro 1999 Annual Report Download - page 22

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Ingram Micro
Annual Report
facilities, of which approximately $263 million of accounts receivable were sold as of January 1, 2000.The Company also has
revolving credit facilities of approximately $1.65 billion, as well as uncommitted facilities of approximately $601.0 million. In
addition, on June 9, 1998, the Company sold $1.33 billion aggregate principal amount at maturity of its Zero Coupon Convertible
Senior Debentures due 2018 in a private placement.The Company subsequently registered the resale of these debentures with the
Securities and Exchange Commission (the “SEC”). Gross proceeds from this offering were $460.4 million. In March 1999, the
Company repurchased Zero Coupon Convertible Senior Debentures with a carrying value of $56.5 million as of the repurchase
date for approximately $50.3 million in cash.The debenture repurchase resulted in an extraordinary gain of $3.8 million (net of
$2.4 million in income taxes).The Company’s interest expense for any current or future indebtedness will be subject to fluctua-
tions in interest rates and may cause fluctuations in the Company’s net income.
Results of Operations
The following table sets forth the Company’s net sales by geographic region (excluding intercompany sales), and the percent-
age of total net sales represented thereby, for each of the periods indicated.
Fiscal Year
1999 1998 1997
(Dollars in millions)
Net sales by geographic region:
United States $16,814 59.9% $14,393 65.3% $11,540 69.6%
Europe 7,344 26.2 5,624 25.5 3,353 20.2
Other international 3,911 13.9 2,017 9.2 1,689 10.2
Total $28,069 100.0% $22,034 100.0% $16,582 100.0%
The following table sets forth certain items from the Company’s Consolidated Statement of Income as a percentage of net
sales, for each of the periods indicated.
Percentage of Net Sales
Fiscal Year
1999 1998 1997
Net sales 100.0% 100.0% 100.0%
Cost of sales 95.2 93.7 93.5
Gross profit 4.8 6.3 6.5
Expenses:
SG&A expenses 4.0 4.1 4.2
Reorganization costs 0.0 — —
Income from operations 0.8 2.2 2.3
Other (income) expense, net (0.3) 0.4 0.3
Income before income taxes, minority
interest and extraordinary item 1.1 1.8 2.0
Provision for income taxes 0.4 0.7 0.8
Income before minority interest
and extraordinary item 0.7 1.1 1.2
Minority interest — — 0.0
Income before extraordinary item 0.7 1.1 1.2
Extraordinary item 0.0 — —
Net income 0.7% 1.1% 1.2%