Radio Shack 2004 Annual Report Download - page 47

Medium-Term Notes: We also issued, in various amounts and
on various dates from December 1997 through September
1999, medium-term notes totaling $150.0 million under the
shelf registration described above. At December 31, 2004,
$5.0 million of these notes remained outstanding. The interest
rate at December 31, 2004, for the outstanding $5.0 million in
medium-term notes was 6.42%. These notes have a maturity
in 2008. As of December 31, 2004, there was no availability
under this shelf registration.
Short-Term Borrowing Facilities
Year Ended December 31,
(In millions) 2004 2003 2002
Domestic seasonal bank credit lines
and bank money market lines:
Lines available at year end $600.0 $700.0 $705.0
Loans outstanding at year end –––
Weighted average interest
rate at year end –––
Weighted average loans
outstanding $–$–$–
Weighted average interest
rate during year –––
Short-term foreign credit lines:
Lines available at year end $ 7.2 $ 7.2 $ 15.8
Loans outstanding at year end –––
Weighted average interest
rate at year end –––
Weighted average loans
outstanding $–$–$–
Weighted average interest
rate during year –– 2.1%
Letters of credit and banker’s
acceptance lines of credit:
Lines available at year end $168.5 $162.7 $167.4
Acceptances outstanding
at year end –––
Letters of credit open against
outstanding purchase
orders at year end $ 30.3 $ 20.0 $ 26.4
Commercial paper credit facilities:
Commercial paper outstanding
at year end $–$–$–
Weighted average interest
rate at year end –––
Weighted average commercial paper
outstanding $–$ – $ 0.1
Weighted average interest
rate during year –– 2.0%
Our short-term credit facilities, including revolving credit lines,
are summarized in the accompanying short-term borrowing
facilities table above. The method used to compute averages
in the short-term borrowing facilities table is based on a daily
weighted average computation that takes into consideration
the time period such debt was outstanding, as well as the
amount outstanding. Our financing, primarily short-term
debt, if utilized, would consist primarily of commercial paper,
which is described in more detail below.
Commercial Paper: We have access to short-term debt instru-
ments, such as commercial paper issuances, available to
supplement our short-term financing needs. The commercial
paper program, when utilized, has a typical maturity of 90
days or less. The amount of commercial paper that can be out-
standing is limited to a maximum of the unused portion of our
$600 million revolving credit facilities described in more detail
below. We currently have no commercial paper outstanding.
Credit Facilities: In the second quarter of 2004, we replaced
our existing $300.0 million 364-day revolving credit facility
with a new five-year credit facility maturing in June 2009.
The terms of this revolving credit facility are substantially
similar to the previous facility. This credit facility, in addition
to our existing $300.0 million five-year credit facility which
expires in June 2007, will support our commercial paper
borrowings and is otherwise available for general corporate
purposes. As of December 31, 2004, there were no out-
standing borrowings under these credit facilities. Our out-
standing debt and bank syndicated credit facilities have
customary covenants, and we were in compliance with
these covenants as of December 31, 2004.
Other Indebtedness: We established an employee stock own-
ership trust in June 1990. Further information on the trust and
its related indebtedness, which we guaranteed, is detailed in
the discussion of the RadioShack 401(k) Plan in Note 19.
In the second quarter of 2002, we sold and leased back our
corporate technology center building, recording this transac-
tion as a financing obligation, because we retained certain
responsibilities during the lease term. Under a financing obli-
gation, the associated assets remain on our balance sheet.
This obligation has a three-year term expiring in 2005 with
renewal options. The lessors are unrelated third-parties. We
entered into this transaction in contemplation of and to facili-
tate the relocation of our corporate headquarters to a new
custom-built corporate campus, which was substantially com-
plete at December 31, 2004. We began to occupy the new
campus in the fourth quarter of 2004 and will be completed
in the first quarter of 2005.
Notes to Consolidated Financial Statements continued
RadioShack Corporation and Subsidiaries
45
AR2004