Ingram Micro 1999 Annual Report Download - page 43

4411
Ingram Micro
Annual Report
ues at the date of acquisition.The excess of the purchase price over the net assets acquired was approximately $80,000 and
is being amortized on a straight-line basis over 30 years.
In June 1998, the Company completed its acquisition of Tulip Computer N.V.’s assembly facility and related business in
’s-Hertogenbosch,The Netherlands. In October 1998, the Company completed its purchase of the remaining 30% minority
interest in Ingram Dicom S.A. de C.V. (“Dicom”), a Mexican subsidiary. In December 1998, the Company completed the acquisi-
tion of Nordemaq Commercial de Maquinas Nordeste Ltda, a Brazilian computer products distributor.The combined consideration
paid was approximately $19,000.The acquisitions were accounted for using the purchase method of accounting and the results
of operations have been combined with those of the Company since the respective dates of acquisition.The purchase price was
allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.The excess
of the purchase price over net assets acquired for these acquisitions totaled approximately $9,000 and is being amortized on a
straight-line basis over 20 years.
On July 18, 1997, the Company completed the acquisition of the Intelligent Electronics Inc. indirect distribution business,
its Reseller Network Division (“RND”).The purchase price was $73,000, payable by the assumption of liabilities in excess of
current assets (including $30,000 in cash acquired), based on the balance sheet of RND at closing.This acquisition was accounted
for using the purchase method, and the results of RND’s operations have been combined with those of the Company since the date
of acquisition.The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values at
the date of acquisition.The excess of purchase price over net assets acquired of approximately $88,000 is being amortized on a
straight-line basis over 20 years.
In April 1997, the Company acquired Tallgrass Technologies AS., a distributor of computer products based in Norway. In
August 1997, the Company acquired J&W Computer GmbH, a distributor of computer products with operations in Germany,
France, Switzerland, and Austria. In November 1997, the Company acquired Computacion Tecnica, S.A., a distributor of computer
products with operations in Chile, Brazil, Peru, and Florida. In December 1997, the Company acquired Latino Americana de
Software, a distributor of primarily software products with operations in Brazil, and TT Microtrading Oy, a software distribution
company based in Finland.The combined consideration paid was approximately $75,053.The acquisitions were accounted for using
the purchase method of accounting and the results of operations of the acquired companies have been combined with those of
the Company since the respective dates of acquisition.The purchase price was allocated to the assets acquired and the liabilities
assumed based upon their estimated fair values at the respective dates of acquisition.The excess of purchase price over net assets
acquired for all five acquisitions totaled approximately $50,000 and is being amortized on a straight-line basis over 20 years.
Pro forma financial information has not been presented because the effect of the 1999, 1998 and 1997 acquisitions was
not significant.
Note 5 — Accounts Receivable
The Company has an arrangement pursuant to which certain U.S. trade accounts receivable of the Company are transferred
to a trust, which in turn has sold certificates representing undivided interests in the total pool of trade receivables without
recourse.The trust has issued fixed-rate, medium-term certificates to investors (which results in a reduction of trade accounts
receivable on the Company’s Consolidated Balance Sheet) to reflect the sale of such receivables and a variable-rate certificate
to support a commercial paper program. At January 1, 2000, and January 2, 1999, the amount of medium-term certificates
outstanding totaled $75,000 and $100,000, respectively. The amortization period for the commercial paper program began
October 1, 1999, and terminated effective December 31, 1999. Accordingly, there were no amounts outstanding under this
commercial paper program at January 1, 2000.The amount outstanding under this commercial paper program at January 2, 1999,
totaled $150,000.
In March 2000, the Company completed a new 5-year accounts receivable securitization program in the U.S., which provides
for the issuance of up to $700,000 in commercial paper.