Tech Data 2015 Annual Report Download - page 36

Table of Contents
program. During fiscal 2013, we repurchased 3,752,939 shares of our common stock at a cost of $185.1 million in connection with both of our
$100.0 million share repurchase programs approved by the Board of Directors in May 2012 and November 2011. The May 2012 and
November 2011 share repurchase programs were completed during fiscal 2013.
In conjunction with our share repurchase programs approved by the Board of Directors, 10b5-1 plans were executed that instruct the brokers
selected by us to repurchase shares on our behalf. The amount of common stock repurchased in accordance with the 10b5-1 plans on any given
trading day is determined by a formula in the plans, which is based on the market price of our common stock and average daily volumes.
Shares repurchased by us are held in treasury for general corporate purposes, including issuances under equity incentive and benefit plans.
Contractual Obligations
As of January 31, 2015, future payments of debt and amounts due under future minimum lease payments, including minimum commitments
under IT outsourcing agreements, are as follows (in thousands):
Fair value renewal and escalation clauses exist for a substantial portion of the operating leases included above. Purchase orders for the purchase
of inventory and other goods and services are not included in the table above. We are not able to determine the aggregate amount of such
purchase orders that represent contractual obligations, as purchase orders typically represent authorizations to purchase rather than binding
agreements. For the purposes of this table, contractual obligations for purchase of goods or services are defined as agreements that are
enforceable and legally binding on the Company and that specify all significant terms, including: fixed or minimum quantities to be purchased;
fixed, minimum or variable price provisions; and the approximate timing of the transaction. Our purchase orders are based on our current
demand expectations and are fulfilled by our vendors within short time horizons. We do not have significant non-cancelable agreements for the
purchase of inventory or other goods specifying minimum quantities or set prices that exceed our expected requirements for the next three
months. We also enter into contracts for outsourced services; however, the obligations under these contracts were not significant, other than the
IT outsourcing agreement included above, and the contracts generally contain clauses allowing for cancellation without significant penalty.
At January 31, 2015, we have $0.6 million recorded as a current liability for uncertain tax positions. We are not able to reasonably estimate the
timing of long-term payments, or the amount by which our liability will increase or decrease over time; therefore, the long-term portion of our
liability for uncertain tax position has not been included in the contractual obligations table above and is not material to our consolidated
financial statements (see Note 8 of Notes to Consolidated Financial Statements).
Off-Balance Sheet Arrangements
Synthetic Lease Facility
We have a synthetic lease facility with a group of financial institutions (the "Synthetic Lease") under which we lease certain logistics centers
and office facilities from a third-party lessor that expires in June 2018. Properties leased under the Synthetic Lease are located in Clearwater
and Miami, Florida; Fort Worth, Texas; Fontana, California; Suwanee, Georgia; Swedesboro, New Jersey; and South Bend, Indiana. The
Synthetic Lease is accounted for as an operating lease and rental payments are calculated at the applicable LIBOR rate plus a margin based on
our credit ratings.
30
Operating leases Capital lease Debt
(1)
Total
Fiscal year:
2016
$
47,500
$
544
$
25,973
$
74,017
2017
31,600
431
13,125
45,156
2018
28,500
431
358,458
387,389
2019
20,300
431
0
20,731
2020
17,900
431
0
18,331
Thereafter
43,900
2,314
0
46,214
Total payments
189,700
4,582
397,556
591,838
Less amounts representing interest
0
(320
)
(34,708
)
(35,028
)
Total principal payments
$
189,700
$
4,262
$
362,848
$
556,810
(1) Amounts include interest on the Senior Notes calculated at the fixed rate of 3.75% per year and excludes estimated interest on the committed and uncommitted revolving
credit facilities as these facilities are at variable rates of interest.