Ingram Micro 2010 Annual Report Download - page 43

used by financing activities in 2008 primarily reflects net repayments of $323,243 on our debt facilities and the
repurchase of Class A Common Stock of $222,346, partially offset by $250,000 of proceeds from our senior
unsecured term loan and $23,256 in proceeds from the exercise of stock options.
Our debt and cash levels are highly influenced by our working capital needs. As such, our cash balances and
borrowings fluctuate from period-to-period and may also fluctuate significantly within a quarter. The fluctuation is
primarily the result of the concentration of payments received from customers toward the end of each month, as well
as the timing of payments made to our vendors. Accordingly, our period-end debt and cash balances may not be
reflective of our average levels or maximum debt and/or minimum cash levels during the periods presented or at any
point in time.
Acquisitions and Dispositions
In 2010, we acquired all of the outstanding shares of interAct and Albora in our EMEA region and the assets
and liabilities of Asiasoft in our Asia Pacific region. These acquisitions further strengthened our capabilities in
virtualization, security and middleware solutions and enterprise computing. These entities were acquired for an
aggregate cash price of $8,329.
In 2009, we acquired certain assets of CCD in the United Kingdom and the assets and liabilities of VAD in New
Zealand, which further strengthened our distribution capabilities in the mid- to high-end enterprise markets in
EMEA and Asia Pacific. In 2009, we also acquired the assets and liabilities of Vantex, which operated in five
countries in the Asia Pacific region. The Vantex acquisition further strengthened our distribution capabilities for
AIDC/POS technologies. These three businesses were acquired for an aggregate cash price of $32,681 plus an
estimated earn-out amount of $935. In 2009, we sold our broadline operations in Denmark. The sales proceeds and
the related gain on sale were not material.
In 2008, we acquired Eurequat in France, Intertrade in Germany, Paradigm in the United Kingdom and
Cantechs Group in China. These acquisitions further expanded our value-added distribution of AIDC/POS solutions
in EMEA and in Asia Pacific. These businesses were acquired for an aggregate cash price of $12,347, including
related acquisition costs, plus an estimated earn-out subject to final true-up.
For a full discussion of the above acquisitions and disposition, refer to Note 4 of our consolidated financial
statements.
Capital Resources
We have maintained a conservative capital structure which we believe will continue to serve us well in an
economic environment that, while having shown marked recovery from the recent recession, remains somewhat
uncertain. We have a range of financing facilities which are diversified by type, maturity and geographic region with
various financial institutions worldwide. These facilities have staggered maturities through 2017. A significant
portion of our cash and cash equivalents balance generally resides in our operations outside of the U.S. and are
deposited and/or invested with various financial institutions globally that we endeavor to monitor regularly for
credit quality. However, we are exposed to risk of loss on funds deposited with the various financial institutions and
money market mutual funds and we may experience significant disruptions in our liquidity needs if one or more of
these financial institutions were to suffer bankruptcy or similar restructuring. We believe that our existing sources of
liquidity provide sufficient resources to meet our capital requirements, including the potential need to post cash
collateral for identified contingencies (see Note 10 to our consolidated financial statements and Part I, Item 3.
“Legal Proceedings”), for at least the next twelve months. Nevertheless, depending on capital and credit market
conditions, we may from time to time seek to increase our available capital resources through additional debt or
other financing facilities. Finally, since the capital and credit markets can be volatile, we may be limited in our
ability to replace in a timely manner maturing credit facilities or other indebtedness on terms acceptable to us, or at
all, or to access committed capacities due to the inability of our finance partners to meet their commitments to us.
In August 2010, we issued through a public offering $300,000 of 5.25% senior unsecured notes due 2017 in
North America, resulting in cash proceeds of approximately $297,152, net of discount and issuance costs of
approximately $2,848. Interest on the notes is payable semiannually in arrears on March 1 and September 1,
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