Ingram Micro 2013 Annual Report Download - page 35

Table of Contents
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We are required to comply with certain financial covenants under the terms of certain of our financing facilities, including restrictions on funded debt
and liens and covenants related to tangible net worth, leverage and interest coverage ratios and trade accounts receivable portfolio performance including
metrics related to receivables and payables. We are also restricted by other covenants, including, but not limited to, restrictions on the amount of additional
indebtedness we can incur, dividends we can pay, and the amount of common stock that we can repurchase annually. At December 28, 2013, we were in
compliance with all material covenants or other material requirements set forth in our trade accounts receivable-backed programs, senior unsecured notes due
2017 and 2022, revolving unsecured credit facility and other credit agreements, as discussed above.
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We have several uncommitted factoring programs under which trade accounts receivable of two large customers may be sold, without recourse, to
financial institutions. Available capacity under these programs is dependent on the level of our trade accounts receivable eligible to be sold into these programs
and the financial institutions’ willingness to purchase such receivables. At December 28, 2013 and December 29, 2012, we had a total of $381,451 and
$242,626, respectively, of trade accounts receivable sold to and held by the financial institutions under these programs.

The following table summarizes our financing capacity and contractual obligations at December 28, 2013, and the effects that scheduled payments on
such obligations are expected to have on our liquidity and cash flows in future periods. The amounts do not include interest. Except for interest related to our
$300,000 of 5.00% and $300,000 of 5.25% senior unsecured notes, all other interest is incurred at variable rates (see Note 6 to our consolidated financial
statements).
Payments Due by Period
Contractual Obligations
Total
Capacity
Balance
Outstanding
Less Than
1 Year
1 — 3 Years
3 — 5 Years
After
5 Years
Senior unsecured notes $598,454
$598,454
$ —
$ —
$300,000
$298,454
North American revolving trade accounts
receivable-backed financing program(1) 675,000
199,000
—
199,000
—
—
Europe revolving trade accounts receivable-
backed financing programs(1) 207,000
—
—
—
—
—
Asia-Pacific revolving trade accounts
receivable-backed financing program(1) 142,000
—
—
—
—
—
Revolving senior unsecured credit
facilities(2) 940,000
—
—
—
—
—
Lines of credit and other(2) 969,000
48,772
48,772
—
—
—
Subtotal 3,531,454
846,226
48,772
199,000
300,000
298,454
Minimum payments under:
Operating leases(3) 422,447
422,447
102,351
131,644
92,002
96,450
Total $3,953,901
$1,268,673
$151,123
$330,644
$392,002
$394,904
(1) The aggregate capacity amount of $1,024,000 for these programs in the table above represents the maximum capacity available under these facilities.
Our actual capacity is dependent upon the amount of eligible trade accounts receivable that may be used to support these facilities. As of December 28,
2013, our actual aggregate capacity under these programs based on eligible trade accounts receivable was approximately $997,000, of which
$199,000 of such capacity was used.
(2) The capacity amount in the table above represents the maximum capacity available under these facilities. Certain of these facilities can also be used to
support letters of credit. At December 28, 2013, letters of credit totaling $39,632 were issued to certain vendors to support payment of insurance
claims or the performance by our subsidiaries with respect to certain lease agreements, vendor purchase obligations, or other operating liabilities. The
issuance of these letters of credit also reduces our available capacity under the respective facilities by the same amount.
(3) We lease the majority of our facilities and certain vehicles and equipment under noncancelable operating leases. Amounts in this table represent future
minimum payments on operating leases that have original noncancelable lease terms in excess of 12 months.
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