Ingram Micro 2013 Annual Report Download - page 33

Table of Contents
Operating activities provided net cash of $466,040, $45,721 and $295,859 in 2013, 2012 and 2011, respectively. The cash flows from operations in
2013 primarily reflects net income before noncash charges and the favorable impact of the changes in working capital noted above. The cash provided by
operations in 2012 reflected the lower net income before noncash charges as well as the unfavorable changes of working capital. The net cash provided by
operating activities in 2011 principally reflected our net income before noncash charges, offset partially by an increase in our net working capital.
Investing activities used net cash of $228,356, $989,029 and $124,620 in 2013, 2012 and 2011, respectively. The net cash used in 2013 was
primarily due to cash payments related to the acquisitions of SoftCom, CloudBlue and Shipwire totaling $135,763 and capital expenditures of $95,639.
The net cash used in 2012 was primarily due to cash payments related to the acquisitions of BrightPoint, Aptec and Promark totaling $899,464 and capital
expenditures of $92,300. The net cash used in 2011 was primarily related to capital expenditures of $122,188. The capital expenditures for 2013 and 2012
were lower than 2011 driven by higher investments in 2011 to enhance our underlying infrastructure and IT systems and an incremental investment in a new
warehouse facility in Australia in 2011. We presently estimate that our capital expenditures will approximate $115,000 in 2014 for ongoing investments to
support existing infrastructure and continued enhancements to our IT systems.
Financing activities used net cash of $155,910 and $414,042 in 2013 and 2011, respectively, and provided net cash of $639,761 in 2012. The net
cash used by financing activities in 2013 primarily reflects the net payment of $195,729 on our revolving credit facilities with funds generated from
operating cash flows; partially offset by the proceeds of $43,384 from the exercise of stock options. The net cash provided by financing activities in 2012
primarily reflects (i) $296,256 in net proceeds from the issuance of our $300,000 senior unsecured notes due in 2022 issued primarily to help fund the
BrightPoint acquisition, (ii) net proceeds of $355,918 from our other debt facilities and (iii) proceeds from exercises of stock options of $31,335; all partially
offset by the repurchase of Class A Common Stock for $50,000 under our stock repurchase programs. The increased proceeds from our financing activities
in 2012 were largely used to finance our acquisition of BrightPoint. The net cash used by financing activities in 2011 primarily reflects the repayment of the
outstanding principal balance of our senior unsecured term loan and related interest rate swap agreement of $239,752 and the repurchase of $225,905 of
Class A Common Stock with funds generated from operating cash flows and existing cash balances.
Our levels of debt and cash and cash equivalents are highly influenced by our working capital needs. As such, our cash and cash equivalents balances
and borrowings fluctuate at each quarter end and may also fluctuate significantly within a quarter. The fluctuation is 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 other point
in time.
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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 $3,531,000, of which $846,226 was outstanding, at December 28, 2013. These facilities have staggered maturities through
2022. Our cash and cash equivalents totaled $674,390 and $595,147 at December 28, 2013 and December 29, 2012, respectively, of which $521,571 and
$533,585, respectively, resided in operations outside of the U.S. We currently intend to use these funds to finance our foreign operations. Additionally, 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 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 28, 2013 and December 29, 2012, we had book overdrafts of $347,837 and $415,207,
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 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 Item 3. “Legal Proceedings” under Part I for further discussion of identified contingencies), for at least the next twelve
months. Nevertheless, depending on capital and credit market conditions, we may from time to time seek to increase or decrease our available capital resources
through changes in our 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 and 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. The following is a detailed discussion of our various financing facilities.
In August 2012, we issued through a public offering $300,000 of 5.00% senior unsecured notes due 2022, resulting in cash proceeds of approximately
$296,256, net of discount and issuance costs of $1,794 and $1,950, respectively. Interest on the notes is payable semiannually in arrears on February 10
and August 10, commencing February 10, 2013. At December 28, 2013 and December 29, 2012, our senior unsecured notes due 2022 had a carrying value of
$298,454 and $298,275, respectively, net of
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