CompUSA 2008 Annual Report Download - page 64

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from debt and capital leases obligations provided approximately $4.0 million of cash. Net cash used in
financing activities was $42.5 million during 2007, attributable to dividends paid of $36.6 million,
repayment of short term debt of $9.0 million, offset by proceeds of stock option exercises, related excess
tax benefits and share repurchases of $3.1 million. Net cash of $22.1 million was used in financing
activities for 2006. Repayment of short and long-term borrowings used approximately $24.8 million of
cash and proceeds from stock option exercises and excess tax benefits from stock option exercises
provided approximately $2.6 million of cash.
We have a $120.0 million secured revolving credit agreement (which may be increased by up to an
additional $30.0 million, subject to certain conditions). The facility expires in October 2010. Borrowings
under the agreement are subject to borrowing base limitations of up to 85% of eligible accounts
receivable and 40% of qualified inventories and are secured by accounts receivable, inventories and
certain other assets. The undrawn availability under the facility may not be less than $15.0 million until
the last day of any month in which the availability net of outstanding borrowings is at least $70.0 million.
The revolving credit agreement requires that we maintain a minimum level of availability. If such
availability is not maintained, we will then be required to maintain a fixed charge coverage ratio (as
defined). The agreement contains certain other covenants, including restrictions on capital expenditures
and payments of dividends. As of December 31, 2008, the Company was in compliance with all of the
covenants under the credit facility. Eligible collateral under the facility was $103.5 million, total
availability was $94.4 million, outstanding letters of credit of were $9.1 million and there were no
outstanding advances.
The Company’ s Netherlands subsidiary maintained a €5.0 million credit facility with a local financial
institution. This facility expired in November 2008 and was not renewed.
In April 2002, we entered into a ten year, $8.4 million mortgage loan on our Suwanee, Georgia
distribution facility. During the first quarter of fiscal 2006, we sold this facility and repaid the remaining
balance on the loan. The facility was replaced by a larger, leased distribution center in a nearby area.
We are obligated under non-cancelable operating leases for the rental of most of our facilities and certain
of our equipment which expire at various dates through 2026. We have sublease agreements for unused
space we lease in Wellingborough, England. In the event the sublessee is unable to fulfill its obligations,
we would be responsible for rent due under the lease.
Following is a summary of our contractual obligations for future principal payments on our debt,
minimum rental payments on our non-cancelable operating leases and minimum payments on our other
purchase obligations as of December 2008 (in thousands):
Total Less than
1 year 1-3 years 3-5 years
More than
5 years
Contractual Obligations:
Capital lease obligations $ 2,451 $ 905 $ 1,421 $ 125 $ -
Non-cancelable operating
leases, net of subleases 135,609 19,034 47,880 31,794 36,901
Purchase & other obligations 28.483 21,093 4,531 2,859 -
Tax contingencies 1,195 1,195 - - -
Total contractual obligations $ 167,738 $ 42,227 $ 53,832 $ 34,778 $ 36,901