Radio Shack 2004 Annual Report Download - page 31

The table below contains our known contractual commitments as of December 31, 2004.
Payments Due by Period
(In millions) Total Amounts Less than Over
Contractual Obligations Committed 1 year 1-3 years 3-5 years 5 years
Long-term debt obligations $ 506.9 $ – $158.2 $ 5.0 $ 343.7
Interest obligations 193.9 36.8 69.9 51.7 35.5
Capital lease obligations 0.6 0.6 – – –
Operating lease obligations 669.5 182.3 270.2 136.4 80.6
Purchase obligations(1) 485.9 464.2 18.3 3.4 –
Other long-term liabilities reflected on the balance sheet 130.3 27.1 50.5 37.8 14.9
Total $1,987.1 $711.0 $567.1 $ 234.3 $ 474.7
(1) Purchase obligations include our product commitments, marketing agreements and freight commitments.
For more information regarding long-term debt and lease commitments, refer to
Notes 7 and 15, respectively, of our “Notes to Consolidated Financial Statements.”
The table below contains our credit commitments from various financial institutions.
Commitment Expiration per Period
(In millions) Total Amounts Less than Over
Credit Commitments Committed 1 year 1-3 years 3-5 years 5 years
Lines of credit $600.0 $ – $300.0 $300.0 $ –
Stand-by letters of credit 18.5 0.9 17.6 – –
Total credit commitments $618.5 $ 0.9 $ 317.6 $300.0 $ –
Management’s Discussion and Analysis of Financial Condition and Results of Operations continued
RadioShack Corporation and Subsidiaries
Treasury Stock
On December 11, 2003, our Board of Directors approved the
retirement of 45.0 million shares of our common stock held as
treasury stock. These shares returned to the status of author-
ized and unissued. See our 2003 Consolidated Statement of
Stockholders’ Equity for additional details of this transaction.
We have contingent liabilities related to retail leases of
locations which were assigned to other businesses. The
majority of these contingent liabilities relate to various
lease obligations arising from leases that were assigned to
CompUSA, Inc. as part of the sale of our Computer City,
Inc. subsidiary to CompUSA, Inc. in August 1998. In the
event CompUSA or the other assignees, as applicable, are
unable to fulfill their obligations, we would be responsible
for rent due under the leases. Our rent exposure from
the remaining undiscounted lease commitments with no
projected sublease income is approximately $154 million.
However, we have no reason to believe that CompUSA or
the other assignees will not fulfill their obligations under
these leases or that we would be unable to sublet the
properties; consequently, we do not believe there will be
a material impact on our financial statements from any
fulfillment of these contingencies.
Off-Balance Sheet Arrangements
Other than the operating leases described above, we do not
have any off-balance sheet financing arrangements, transac-
tions, or special purpose entities.
Inflation
Inflation has not significantly impacted us over the past three
years. We do not expect inflation to have a significant impact
on our operations in the foreseeable future, unless internation-
al events substantially affect the global economy.
Contractual and Credit Commitments
The following tables, as well as the information contained
in Note 7 - “Indebtedness and Borrowing Facilities” to our
“Notes to Consolidated Financial Statements,” provide a
summary of our various contractual commitments, debt and
interest repayment requirements, and available credit lines.
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