Memorex 2012 Annual Report Download - page 40

As of December 31, 2012, we had $20 million of borrowings outstanding under the Amended Credit Agreement, all of
which was borrowed in the United States. Outstanding borrowings in the United States bear interest of 2.25 percent as of
December 31, 2012. As of December 31, 2012, our total remaining borrowing capacity under the Credit Facility was $90.3
million.
The Amended Credit Agreement contains covenants which are customary for similar credit agreements, including
covenants related to financial reporting and notification, payment of indebtedness, taxes and other obligations; compliance
with applicable laws; and limitations regarding additional liens, indebtedness, certain acquisitions, investments and
dispositions of assets. The Amended Credit Agreement contains a conditional financial covenant that requires Imation Corp.
to have a Consolidated Fixed Charge Coverage Ratio (as defined in the Amended Credit Agreement) of not less than 1.00 or
a liquidity requirement of $30.0 million of domestic borrowing availability. We were in compliance with the liquidity requirement
as of December 31, 2012.
As of December 31, 2012 and 2011 we had outstanding standby letters of credit of $0.4 million and $0.6 million,
respectively. The outstanding standby letters of credit are required by our insurance companies to cover potential deductibles
and reduce our allowed borrowing capacity under the Amended Credit Agreement.
We had $62 million of cash outside the U.S. at December 31, 2012. We also have significant net operating loss
carryforwards offset by a full valuation allowance in the U.S. The calculation of a deferred tax liability on the repatriation of the
cash outside the U.S. is impractical. However, because of the valuation allowance in the U.S., we do not believe there would
be any significant impact to earnings if we were to remit this foreign held cash.
Our liquidity needs for 2013 include the following: restructuring payments of approximately $35 million to $40 million,
$20 million repayment on our credit facility, capital expenditures of approximately $8 million to $12 million, pension funding of
approximately $2 million to $4 million, operating lease payments of approximately $8 million, any amounts associated with
strategic acquisitions, any amounts associated with organic investment opportunities and any amounts associated with the
repurchase of common stock under the authorization discussed above.
We expect that our cash positions in the U.S. and outside the U.S., together with cash flow from operations and
availability of borrowings under our Amended Credit Agreement, will provide liquidity sufficient to meet our needs for our
operations and our obligations in the countries in which we operate.
Off-Balance Sheet Arrangements
Other than the operating lease commitments discussed in Note 15 — Litigation, Commitments and Contingencies in our
Notes to the Consolidated Financial Statements, we are not using off-balance sheet arrangements, including special purpose
entities.
Summary of Contractual Obligations
Payments Due by Period
Total
Less Than
1 Year 1-3 Years 3-5 Years
More Than
5 Years
(In millions)
Operating lease obligations ................................ $ 18.8 $ 8.0 $ 7.0 $2.2 $ 1.6
Purchase obligations(1) ................................... 168.8 162.8 6.0 — —
Short-term debt ......................................... 20.0 20.0 — — —
Other liabilities(2) ........................................ 23.8 — — — 23.8
Total ............................................... $231.4 $190.8 $13.0 $2.2 $25.4
(1) The majority of the purchase obligations consist of 90-day rolling estimates. In most cases, we provide suppliers with a
three to six month rolling forecast of our demand. The forecasted amounts are generally not binding on us. However, it
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