Ingram Micro 2011 Annual Report Download - page 47

loan. The net cash used by financing activities in 2009 primarily reflects net repayments of $89,898 on our debt
facilities and our senior unsecured term loan, partially offset by $34,635 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 2011, we acquired the assets and liabilities of Aretê Sistemas S.A. (“Aretê”) in Spain, which further
strengthened our capabilities in value-added distribution in our EMEA region. This entity was acquired for an
aggregate cash price of $2,106. We also have recorded the earn-out at $2,062, which reflects the estimated fair
value of the payout to be achieved, out of a maximum potential earn-out of $5,000. The earnout period ends in
2014.
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
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.
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 capital structure which we believe will continue to support us in an economic
environment that remains uncertain. We have a range of financing facilities which are diversified by type,
maturity and geographic region with various financial institutions worldwide with a total capacity of
approximately $2,707,000, of which $392,428 was outstanding, at December 31, 2011. These facilities have
staggered maturities through 2017. Our cash and cash equivalents totaled $891,403 and $1,155,551 at
December 31, 2011 and January 1, 2011, respectively, of which $773,816 and $714,014, respectively, resided in
operations outside of the U.S. Our ability to repatriate these funds to the U.S. in an economical manner may be
limited. Our cash balances 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. As of December 31, 2011 and January 1, 2011, we had book overdrafts of $511,172 and $517,107,
respectively, representing checks issued on disbursement bank accounts but not yet paid by such banks. These
amounts are classified as accounts payable in our consolidated balance sheet and are typically paid by the banks
in a relatively short period of time. We believe that our existing sources of liquidity provide sufficient resources
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