CompUSA 2013 Annual Report Download - page 57

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Included in property, plant and equipment are assets under capital leases, as follows (in thousands):
Depreciation charged to operations for property, plant and equipment including capital leases in 2013, 2012, and 2011 was $17.4 million,
$16.6 million and $15.9 million, respectively.
The Company maintains a $125.0 million (which may be increased to $200.0 million, subject to certain conditions) secured revolving credit
agreement with a group of financial institutions which provides for borrowings in the United States. The credit facility has a five year term
and expires in October 2015. Availability is subject to a borrowing base formula that takes into account eligible receivables and eligible
inventory. Borrowings are secured by substantially all of the Company’
s assets, including accounts receivable, inventory and certain other
assets, subject to limited exceptions. The credit agreement contains certain operating, financial and other covenants, including limits on
annual levels of capital expenditures, availability tests related to payments of dividends and stock repurchases and fixed charge coverage
tests related to acquisitions. The revolving credit agreement requires that a minimum level of availability be maintained. If such availability
is not maintained, the Company will be required to maintain a fixed charge coverage ratio (as defined). The borrowings under the agreement
are subject to borrowing base limitations of up to 85% of eligible accounts receivable and up to 40% of qualified inventories. The interest
rate under this facility is computed at applicable market rates based on LIBOR or the Prime Rate, plus an applicable margin. The applicable
margin varies based on borrowing base availability. As of December 31, 2013, eligible collateral under this agreement was $110.4 million,
total availability was $105.5 million, total outstanding letters of credit were $4.9 million and there were no outstanding advances. The
Company was in compliance with all of the covenants under this facility as of December 31, 2013.
The Company’
s WStore subsidiary maintained a revolving credit agreement with a financial institution in France which was secured by
WStore accounts receivable balances. This credit facility was terminated by the Company in June 2012. Available amounts for borrowing
under this facility included all accounts receivable balances not over 60 days past due reduced by the greater of €
4.0 million or 10% of the
eligible accounts receivable.
The weighted average interest rate on short-term borrowings was 4.3%, 4.3%, and 4.5% in 2013, 2012 and 2011, respectively.
Accrued expenses and other current liabilities consist of the following (in millions):
The Company (through a subsidiary) has an outstanding Bond financing with the Development Authority of Jefferson, Georgia (the
“Authority”).
The Bonds were issued by the Authority and purchased by GE Government Finance Inc., and mature on October 1, 2018. The
proceeds from the Bond were used to finance capital equipment purchased for the Company’
s distribution facility located in Jefferson,
Georgia. The purchase and installation of the equipment for the facility was completed by December 31, 2011. Pursuant to the transaction,
the Company transferred to the Authority, for consideration consisting of the Bond proceeds, ownership of the equipment and the Authority
leased the equipment to the Company’
s subsidiary pursuant to a capital equipment lease expiring October 1, 2018. Under the capital
equipment lease, the Company has the right to acquire ownership of the equipment at any time for a purchase price sufficient to pay off all
principal and interest on the Bonds, plus $1.00. As of December 31, 2013, there was $4.1 million outstanding against this financing facility.
53
Table of Contents
2013
2012
Office, computer and other equipment
$
17.4
$
17.4
Less: Accumulated amortization
12.0
9.4
$
5.4
$
8.0
4.
CREDIT FACILITIES
5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
December 31,
2013
2012
Payroll and employee benefits
$
36.5
$
29.7
Freight
6.7
4.0
Advertising
10.0
9.0
Sales and VAT tax payable
9.0
9.7
Income taxes payable
1.2
5.1
Other
25.8
26.0
$
89.2
$
83.5
6.
LONG
-
TERM DEBT