Ingram Micro 1999 Annual Report Download - page 44

4422
Ingram Micro
Annual Report
The Company also established certain other facilities relating to accounts receivable in Europe and Canada during 1999. Under
these programs, the Company has sold approximately $188,000 of trade accounts receivable in the aggregate resulting in a further
reduction of trade accounts receivable on the Company’s Consolidated Balance Sheet at January 1, 2000.
Fees in the amount of $7,223, $8,667, and $11,102 in 1999, 1998 and 1997, respectively, related to the sale of trade accounts
receivable facilities are included in other expenses in the Consolidated Statement of Income.
Note 6 — Property and Equipment
Property and equipment consists of the following:
Fiscal Year End
1999 1998
Land $8,237 $9,443
Buildings and leasehold improvements 93,282 59,370
Distribution equipment 180,147 188,045
Computer equipment and software 249,753 171,364
531,419 428,222
Accumulated depreciation (214,776) (173,504)
$316,643 $254,718
Depreciation expense was $74,701, $57,673 and $42,880 in 1999, 1998, and 1997, respectively.
Note 7 — Long-Term Debt
The Company has a $1,000,000 revolving credit agreement (the “U.S. Credit Facility”) with a syndicate of banks.The U.S.
Credit Facility is unsecured and matures on October 30, 2001.The Company also has two additional multicurrency revolving credit
agreements of $500,000 (the “European Credit Facility”) and $150,000 (the “Canadian Credit Facility”) with two bank syndicates.
The European Credit Facility and the Canadian Credit Facility are unsecured and mature on October 28, 2002, and October 28,
2001, respectively.The Company intends to exercise its option to extend its U.S. and Canadian credit facilities, subject to concur-
rence from the banks, to match the European Credit Facility term. Collectively, the U.S. Credit Facility, the European Credit
Facility and the Canadian Credit Facility are referred to as the “Credit Facilities.”
Revolving loan rate and competitive bid interest rate options are available under the Credit Facilities.The spread over
LIBOR for revolving rate loans and associated facility fees are determined by reference to certain financial ratios or credit ratings
by recognized rating agencies on the Company’s senior unsecured debt. At January 1, 2000, and January 2, 1999, the Company
had $503,537 and $994,549 in outstanding borrowings under the Credit Facilities.The weighted average interest rate on outstand-
ing borrowings under the Credit Facilities at January 1, 2000, and January 2, 1999, was 6.52% and 4.95%, respectively.
The Company is required to comply with certain financial covenants, including minimum tangible net worth, restrictions on
funded debt and interest coverage.The credit facilities also restrict the amount of dividends the Company can pay as well as the
amount of common stock that the Company can repurchase annually. At January 1, 2000, the Company was in compliance with
these covenants.
At January 1, 2000 and January 2, 1999, commercial paper outstanding was $155,470 and $199,673, respectively, and is
included in other long-term debt.The 1998 amount includes $150,000 of commercial paper issued under the Company’s accounts
receivable program (see Note 5) with the remainder issued in Europe.The weighted average interest rate on the commercial paper
was 3.68% and 5.27% at January 1, 2000 and January 2, 1999, respectively.
continued
nnootteess ttoo ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Dollars in 000s, except per share data