Radio Shack 2008 Annual Report Download - page 43

2008, to stockholders of record on November 28, 2008. The dividend payment of $31.3 million was funded
from cash on hand.
Operating Leases
We use operating leases, primarily for our retail locations and our corporate campus, to lower our capital
requirements.
Share Repurchases
In February 2005, our Board of Directors approved a share repurchase program with no expiration date
authorizing management to repurchase up to $250 million of our common stock in open market
purchases. During 2008, we repurchased approximately 0.1 million shares or $1.4 million of our common
stock under this program. During 2007, we repurchased 8.7 million shares or $208.5 million of our
common stock under this program. As of December 31, 2008, there were no further share repurchases
authorized under this program.
In July 2008, our Board of Directors approved a share repurchase program with no expiration date
authorizing management to repurchase up to $200 million of our common stock. During the third quarter
of 2008, we repurchased 6.0 million shares or $110.0 million of our common stock under this plan. As of
December 31, 2008, there was $90.0 million available for share repurchases under this plan.
Seasonal Inventory Buildup
Typically, our annual cash requirements for pre-seasonal inventory buildup range between $200 million
and $400 million. The funding required for this buildup comes primarily from cash on hand and cash
generated from net sales and operating revenues. We had $814.8 million in cash and cash equivalents as
of December 31, 2008, as a resource for our funding needs. Additionally, borrowings may be utilized to
fund the inventory buildup as described in “Available Financing” above.
Contractual and Credit Commitments
The following tables, as well as the information contained in Note 5 - "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.
The table below contains our known contractual commitments as of December 31, 2008.
(In millions) Payments Due by Period
Contractual Obligations
Total Amounts
Committed
Less Than
1 Year 1-3 Years 3-5 Years
Over
5 Years
Long-term debt obligations $ 726.0 $ -- $ 350.0 $ 375.0 $ 1.0
Interest obligations 178.7 49.5 85.9 43.3 --
Operating lease obligations 640.3 193.5 283.2 115.1 48.5
Purchase obligations (1) 283.8 269.4 14.2 0.2 --
Other long-term liabilities
reflected on the balance sheet (2)
96.5 -- 22.4
7.2
20.8
Total $ 1,925.3 $ 512.4 $ 755.7 $ 540.8 $ 70.3
(1) Purchase obligations include our product commitments, marketing agreements and freight commitments.
(2) Includes a $46.1 million liability for unrecognized tax benefits. We are not able to reasonably estimate the timing of
the payments or the amount by which the liability will increase or decrease over time; therefore the related balances
have not been reflected in the ‘‘Payments Due by Period’’ section of the table.
For more information regarding long-term debt and lease commitments, refer to Note 5 – “Indebtedness
and Borrowing Facilities” and Note 12 – Commitments and Contingencies”, respectively, of our Notes to
Consolidated Financial Statements.
36