Radio Shack 2009 Annual Report Download

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Table of Contents
Financial Highlights
Letter to Shareholders
Form 10-K
Part I
Item 1. Business.
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 2. Properties
Item 3. Legal Proceedings
Item 4. Submission of Matters to a Vote of Security Holders
Executive Officers of the Registrant
Part II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and issuer purchases of equity securities
Item 6. Selected Financial Data
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
Item 8. Financial Statements and Supplementary Data
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A. Controls and Procedures
Item 9B. Other Information
Part III
Item 10. Directors, Executive Officers and Corporate Governance
Item 11. Executive Compensation
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14. Principal Accounting Fees and Services
Part IV
Item 15. Exhibits and Financial Statement Schedules
Signatures
Index to Consolidated Financial
Report of Independent Registered Public Accounting Firm
Index to Exhibits

Table of contents

  • Page 1
    ... with Accountants on Accounting and Financial Disclosure Item 9A. Controls and Procedures Item 9B. Other Information Part III Item 10. Directors, Executive Officers and Corporate Governance Item 11. Executive Compensation Item 12. Security Ownership of Certain Beneficial Owners and Management and...

  • Page 2
    2009 ANNUAL REPORT ® IS WHO WE ARE.

  • Page 3
    ... audio and video technology; and Enercell® for batteries TM and power products that help our customers to live Life Empowered. A NETWORK OF CONVENIENT LOCATIONS (1) 4,680 Company-operated stores in the United States and Mexico 1,300 + Dealer outlets worldwide 560+ Wireless phone kiosks 34...

  • Page 4
    ... EARNINGS PER SHARE $2.0 6,000 $1.5 4,000 $1.0 2,000 $0.5 BY PRODUCT PLATFORM 38% Wireless 25% Accessory 13% Modern Home 11% Personal Electronics 5% Power 4% Technical 4% Service and all other 07 08 09 07 08 09 U.S. Company-Operated Stores Kiosks Mexico Company-Operated Stores Dealer...

  • Page 5
    ...steps to control costs, to meet customer needs profitably, and to fortify our balance sheet. Our financial results reflect these actions. In 2009, we increased net sales and operating revenues to $4.28 billion, an improvement of 1.2 percent compared with 2008. We delivered net income of $205 million...

  • Page 6
    ... will too. 60 million+ ESTIMATED TOTAL NUMBER OF MOBILE PHONES SOLD BY THE SHACK and friendly sales experts. Over the past several years, we have leveraged these strengths to become a leader in high-demand mobile technology and connectivity products and services. We have aggressively developed our...

  • Page 7
    ... TO LIVE STRONG THROUGH RADIOSHACK mobile technology. In 2009, we set out to close this perception gap by launching a new brand platform - The Shack - that communicates both the current reality and future aspirations of our brand. Since we introduced The Shack, we have sparked consumer interest...

  • Page 8
    ... executive offices) 75-1047710 (I.R.S. Employer Identification No.) 76102 (Zip Code) Registrant's telephone number, including area code (817) 415-3011 _____ SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: Title of each class Common Stock, par value $1 per share Name of each exchange...

  • Page 9
    ..., 2009, the aggregate market value of the voting common stock of the registrant held by non-affiliates of the registrant was $1,295,767,233 based on the New York Stock Exchange closing price. For the purposes of this disclosure only, the registrant has assumed that its directors, executive officers...

  • Page 10
    ... 13. Item 14. PART IV Item 15. Exhibits, Financial Statement Schedules Signatures Index to Consolidated Financial Statements Report of Independent Registered Public Accounting Firm Index to Exhibits 43 44 45 46 82 Directors, Executive Officers and Corporate Governance Executive Compensation Security...

  • Page 11
    PART I ITEM 1. BUSINESS. GENERAL RadioShack Corporation was incorporated in Delaware in 1967. We primarily engage in the retail sale of consumer electronics goods and services through our RadioShack store chain and non-RadioShackbranded kiosk operations. Our strategy is to provide cost-effective ...

  • Page 12
    ... available through this Web site. Additionally, certain products ordered online may be picked up, exchanged or returned at RadioShack stores. RadioShack Service Centers: We maintain a service and support network to service the consumer electronics and personal computer retail industry in the U.S. We...

  • Page 13
    ... business strategy depends, in part, upon our ability to offer name brand and private brand products, as well as to provide our customers access to third-party services. We utilize a large number of suppliers located in various parts of the world to obtain raw materials and private brand merchandise...

  • Page 14
    ..., our specially trained sales staff is capable of providing cost-effective solutions for our customers' routine electronics needs and distinct electronics wants, assisting with the selection of appropriate products and accessories and, when applicable, assisting customers with service activation...

  • Page 15
    ...our comparable store sales and our business generally Our inability to keep our extensive store distribution system updated and conveniently located near our target customers Our employees' inability to provide solutions, answers, and information related to increasingly complex consumer electronics...

  • Page 16
    ..., including increased sales of lower margin products, such as personal electronics products and name brand products, or declines in average selling prices of key products. If sales of lower margin items continue to increase and become a larger percentage of our business, our gross margin will be...

  • Page 17
    ... our results of operations. We maintain significant receivable balances from various service providers, such as Sprint Nextel, AT&T, and T-Mobile, consisting of commissions, residuals and other funds related to these relationships. Changes in the financial markets or financial condition of these...

  • Page 18
    ...able to meet the demands of our customers, and our sales and profitability could be adversely affected. We purchase a significant portion of our inventory from manufacturers located in China. Changes in trade regulations (including tariffs on imports) could increase the cost of those items. Although...

  • Page 19
    ... the number of individual transactions we process each year. Our information systems include an in-store point-of-sale system that provides information used to track sales performance, inventory replenishment, product availability information, product margin information and customer information. In...

  • Page 20
    ... affect our sales and profitability. We may be unable to keep existing stores in current locations or open new stores in desirable locations in the future. We compete with other retailers and businesses for suitable locations for our stores. Local land use, local zoning issues, environmental...

  • Page 21
    ...in June of 2011, with one two-year option to renew approximately half of the space at market-based rents. RETAIL LOCATIONS The table below shows our retail locations at December 31, 2009, allocated among U.S. and Mexico company-operated stores, kiosks and dealer and other outlets. Average Store Size...

  • Page 22
    ... Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming District of Columbia Puerto Rico U.S. Virgin Islands...

  • Page 23
    ...removal from office. (1) Mr. Day was appointed Chief Executive Officer and Chairman of the Board of RadioShack in July 2006. Prior to his appointment, Mr. Day was a private investor. Mr. Day became the President and Chief Operating Officer of Kmart Corporation, a mass merchandising company, in March...

  • Page 24
    ...Gooch served as Executive Vice President - Chief Financial Officer of Entertainment Publications, a discount and promotions company, from May 2005 to August 2006. From 1996 to May 2005, Mr. Gooch served in various positions at Kmart Corporation, a mass merchandising company, including Vice President...

  • Page 25
    ...$ HOLDERS OF RECORD At February 16, 2010, there were 18,050 holders of record of our common stock. DIVIDENDS The Board of Directors annually reviews our dividend policy. On November 9, 2009, our Board of Directors declared an annual dividend of $0.25 per share. The dividend was paid on December 16...

  • Page 26
    ... an investment of $100 at the close of trading on December 31, 2004, in RadioShack common stock, the S&P 500 Index and the S&P Specialty Retail Index. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among RadioShack Corporation, The S&P 500 Index And S&P Specialty Retail Index $140 $120 $100 $80...

  • Page 27
    ...' equity Return on average assets Annual inventory turnover Other Data (2) Adjusted EBITDA Dividends declared per share Capital expenditures Number of retail locations at year end: U.S. RadioShack company-operated stores Kiosks Mexico RadioShack company-operated stores Dealer and other outlets Total...

  • Page 28
    .... We managed and reported 111 of these locations as extensions of existing RadioShack company-operated stores located in the same shopping malls at December 31, 2009; current year results of such kiosks are included with these RadioShack company-operated stores for purposes of comparable store sales...

  • Page 29
    ... in GPS products, digital-to-analog converter boxes, wireless accessories, digital music players, batteries, and digital cameras. Consolidated net sales and operating revenues also benefited from the consolidation of our Mexico subsidiary for all of 2009. Gross margin increased 40 basis points to...

  • Page 30
    .... We managed and reported 111 of these locations as extensions of existing RadioShack company-operated stores located in the same shopping malls at December 31, 2009; current year results of such kiosks are included with these RadioShack company-operated stores for purposes of comparable store sales...

  • Page 31
    ... Service Other Net sales and operating revenues 29.8% 25.9 13.6 16.4 6.5 4.7 2.7 0.4 100.0% Sales in our wireless platform (includes postpaid and prepaid wireless handsets, commissions, residual income and communication devices such as scanners and GPS products) increased 25.3% in 2009. This sales...

  • Page 32
    ... information regarding our arrangement with Sam's Club, see the Kiosks section in Item 1 - "Business" in this Annual Report on Form 10-K. Other Sales Other sales include sales to our independent dealers, outside sales through our service centers, sales generated by our www.radioshack.com Web site...

  • Page 33
    ...awareness of our new brand creative platform, THE SHACKâ„¢. The increase in other taxes was partially driven by increased payroll taxes associated with increased compensation expense. Additionally, we recorded an $8.2 million sales and use tax benefit from the settlement of a sales tax issue in 2008...

  • Page 34
    ...headquarters in Fort Worth, Texas, which we had previously sold to Kan Am and then leased for a period of 20 years in a sale and lease-back transaction in December 2005. In connection with the above sale to TCC, we entered into an agreement with TCC to convey certain personal property located in the...

  • Page 35
    ...the execution of a closing agreement with respect to a Puerto Rico income tax matter during the year, which resulted in a credit to income tax expense; this discrete item lowered the effective tax rate for 2008 by 1.0 percentage point. In addition, the 2008 effective tax rate was affected by the net...

  • Page 36
    ... boxes, video gaming products and accessories, and laptop computers, as well as a product shift away from higher-rate new activations to lower-rate existing customer upgrades in our postpaid wireless business. Gross margin was also negatively affected by lower average selling prices in GPS and media...

  • Page 37
    ... the execution of a closing agreement with respect to a Puerto Rico income tax issue during the year, which resulted in a credit to income tax expense; this discrete item lowered the effective tax rate for 2008 by 1.0 percentage point. In addition, the 2008 effective tax rate was affected by the net...

  • Page 38
    ... Mexico. Capital expenditures of $81.0 million in 2009 were consistent with last year. Capital expenditures primarily relate to our U.S. RadioShack company-operated stores and information system projects. Financing Activities: Net cash used in financing activities was $71.6 million in 2009 compared...

  • Page 39
    ... debt, change dividend payments or fund other uses of capital that management believes will enhance shareholder value. The comparable financial measure to free cash flow under generally accepted accounting principles is cash flows from operating activities, which was $245.8 million in 2009, $274...

  • Page 40
    ... ratings include free cash flow and cash levels, changes in our operating performance, the adoption of a more aggressive financial strategy, the economic environment, conditions in the retail and consumer electronics industries, sales declines in comparable stores, our financial position and changes...

  • Page 41
    ... the five consecutive business days immediately after any 10 consecutive trading day period in which the average trading price per $1,000 principal amount of 2013 Convertible Notes was less than 98% of the product of the closing price of the common stock on such date and the conversion rate on such...

  • Page 42
    ...$43.2 million of our 2011 Notes and an increase in stockholders' equity primarily due to 2009 net income. Dividends: We have paid common stock cash dividends for 23 consecutive years. On November 9, 2009, our Board of Directors declared an annual dividend of $0.25 per share. The dividend was paid on...

  • Page 43
    ... Committee of our Board of Directors. Revenue Recognition Description Our revenue is derived principally from the sale of name brand and private brand products and services to consumers. Revenue is recognized, net of an estimate for customer refunds and product returns, when persuasive evidence...

  • Page 44
    .... In order for management to make the appropriate determination of market value, the following items are commonly considered: inventory turnover statistics, current selling prices, seasonality factors, consumer trends, competitive pricing, performance of similar products or accessories, planned...

  • Page 45
    ...tax positions, timing of income and deductions, and allocation procedures across multiple jurisdictions. Our accounting for tax estimates and contingencies requires us to evaluate tax issues and establish reserves in our consolidated financial statements based on our estimate of current probable tax...

  • Page 46
    ... these intangible assets is based on estimates of future profitability, cash flows and other judgmental factors. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. We review our goodwill and other intangible asset balances on an annual basis, during the...

  • Page 47
    ... cost of the stock-based compensation. Additionally, if actual employee forfeitures significantly differ from our estimated forfeitures, we may have an adjustment to our financial statements in future periods. A 10% change in our stock-based compensation expense in 2009 would have affected our net...

  • Page 48
    ... internal control over financial reporting. ITEM 9B. OTHER INFORMATION. None. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. We will file a definitive proxy statement with the Securities and Exchange Commission on or about April 16, 2010. The information called for by this...

  • Page 49
    ... Statement for the 2010 Annual Meeting under the headings "Compensation Discussion and Analysis," "Executive Compensation," "Non-Employee Director Compensation," "Other Matters Involving Executive Officers," "Compensation Committee Interlocks and Insider Participation" and "Report of the Management...

  • Page 50
    ...for the 2010 Annual Meeting under the headings "Fees and Services of the Independent Auditors" and "Policy for Pre-Approval of Audit and Permissible Non-Audit Services of Independent Auditors." PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES. Documents filed as part of this Annual Report on...

  • Page 51
    ... authorized. RADIOSHACK CORPORATION February 22, 2010 /s/ Julian C. Day Julian C. Day Chairman of the Board and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Annual Report on Form 10-K has been signed below by the following persons on...

  • Page 52
    RADIOSHACK CORPORATION INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm Consolidated Statements of Income for each of the three years in the period ended December 31, 2009 Consolidated Balance Sheets at December 31, 2009 and 2008 Consolidated ...

  • Page 53
    ...on these financial statements and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the...

  • Page 54
    RADIOSHACK CORPORATION AND SUBSIDIARIES Consolidated Statements of Income 2009 (In millions, except per share amounts) Net sales and operating revenues Cost of products sold (includes depreciation amounts of $9.2 million, $11.2 million and $10.0 million, respectively) Gross profit Operating expenses...

  • Page 55
    RADIOSHACK CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets December 31, (In millions, except for share amounts) Assets Current assets: Cash and cash equivalents Accounts and notes receivable, net Inventories Other current assets Total current assets Property, plant and equipment, net ...

  • Page 56
    ... long-lived assets Stock-based compensation Net change in liability for unrecognized tax benefits Deferred income taxes Other non-cash items Provision for credit losses and bad debts Changes in operating assets and liabilities: Accounts and notes receivable Inventories Other current assets Accounts...

  • Page 57
    ... stock options Stock-based compensation Net stock-based compensation income tax benefits Conversion option of convertible notes Purchase of convertible notes hedges Tax benefit from purchase of convertible notes hedges Sale of common stock warrants End of year Retained earnings Beginning of year Net...

  • Page 58
    ... of Significant Accounting Policies Supplemental Balance Sheet Disclosures Acquisitions Indebtedness and Borrowing Facilities Stockholders' Equity Stock-Based Incentive Plans Employee Benefit Plans Income Taxes Net Income Per Share Derivative Financial Instruments Fair Value Measurements Commitments...

  • Page 59
    ...Puerto Rico and the U.S. Virgin Islands. These stores are located in major shopping malls and strip centers, as well as individual storefronts. Each location carries a broad assortment of both name brand and private brand consumer electronics products. Our product lines are categorized into a number...

  • Page 60
    ... available through this Web site. Additionally, certain products ordered online may be picked up, exchanged or returned at RadioShack stores. RadioShack Service Centers: We maintain a service and support network to service the consumer electronics and personal computer retail industry in the U.S. We...

  • Page 61
    ... certain banks. Outstanding checks in excess of deposits with these banks are classified as short-term debt in the Consolidated Balance Sheets. Changes in these overdrafts from period to period are reported in the Consolidated Statements of Cash Flows as a financing activity. Accounts Receivable and...

  • Page 62
    ... from the sale of name brand and private brand products and services to consumers. Revenue is recognized, net of an estimate for customer refunds and product returns, when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed or...

  • Page 63
    ... its customer, generally on a monthly basis. Sales of wireless handsets and the related commissions and residual income constitute more than one-third of our total revenue. Our three largest third-party wireless service providers are Sprint Nextel, AT&T, and T-Mobile. Cost of Products Sold: Cost of...

  • Page 64
    ... company's balance sheet. It also changes the manner in which the net income of the subsidiary is reported and disclosed in the controlling company's income statement. This guidance was effective for fiscal years beginning after December 15, 2008. We adopted this guidance effective January 1, 2009...

  • Page 65
    ...income statement. The guidance requires retrospective application to all periods presented and was effective for fiscal years beginning after December 15, 2008. On January 1, 2009, as a result of adopting the new accounting guidance, we recorded an adjustment to reduce the carrying value of our 2013...

  • Page 66
    ... 2009, the FASB issued new accounting guidance to improve financial reporting by companies involved with variable interest entities and to provide more relevant and reliable information to users of financial statements. This guidance is effective for fiscal years beginning after November 15, 2009...

  • Page 67
    ...of 200 RadioShack-branded stores and 14 dealers throughout Mexico at the time of acquisition. The purchase price was $44.9 million which consisted of $42.2 million in cash paid and transaction costs, net of cash acquired, plus $2.7 million in assumed debt. The acquisition was accounted for using the...

  • Page 68
    ... the five consecutive business days immediately after any 10 consecutive trading day period in which the average trading price per $1,000 principal amount of 2013 Convertible Notes was less than 98% of the product of the closing price of the common stock on such date and the conversion rate on such...

  • Page 69
    ...exceeds the conversion price (initially $24.25 per share). We will include the effect of the additional shares that may be issued from conversion in our diluted net income per share calculation using the treasury stock method. Application of the FASB's New Accounting Guidance: On January 1, 2009, as...

  • Page 70
    ... of our 2013 Convertible Notes. NOTE 6 - STOCKHOLDERS' EQUITY Stock Repurchase Programs: 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...

  • Page 71
    ... employees with stock-based compensation, which are described below. Stock Option Plans: Under the Incentive Stock Plans ("ISPs") described below, the exercise price of options must be equal to or greater than the fair market value of a share of our common stock on the date of grant. The Management...

  • Page 72
    ... restricted stock, restricted stock units, stock appreciation rights, or other stock-based awards. The 2009 ISP also permits directors to elect to receive shares in lieu of cash payments for their annual retainer fees and board and committee meeting fees. Full-value awards granted under the 2009 ISP...

  • Page 73
    ..., 2009, there were approximately 353,000 shares of restricted stock outstanding under the 1997 ISP and 2007 RSP. Deferred Stock Units: In 2004, the stockholders approved the RadioShack 2004 Deferred Stock Unit Plan for Non-Employee Directors ("Deferred Plan"). The Deferred Plan replaced the one-time...

  • Page 74
    ...February 2007, the Board of Directors amended the Deferred Plan to provide that, in lieu of the original amounts described above, each non-employee director now receives a one-time initial grant of units equal to the number of shares of our common stock that represent a fair market value of $150,000...

  • Page 75
    ... credit generated prior service costs that are not required to be immediately recognized, but that are amortized for purposes of the net periodic benefit cost calculation over the estimated average remaining service period for active employee participants. We use the last day of our fiscal year...

  • Page 76
    ... increase Actuarial assumptions used to determine net periodic benefit cost for the years ended December 31 were as follows: 2009 5.9% 3.5% 2008 5.7% 3.5% 2007 5.9% 3.5% Discount rate Rate of compensation increase We base our discount rate on the rates of return available on high-quality bonds...

  • Page 77
    ... Insurance reserves Reserve for estimated wireless service deactivations Deferred compensation Indirect effect of unrecognized tax benefits Accrued average rent Deferred revenue Convertible debt original issue discount Other Total deferred tax assets 2009 $ 22.9 18.0 14.1 13.6 10.1 8.7 7.9 2.5 42...

  • Page 78
    ... the Consolidated Balance Sheets as follows: December 31, (In millions) Other current assets Other non-current assets Net deferred tax assets $ $ 2009 68.8 53.1 121.9 $ $ 2008 63.9 66.8 130.7 We anticipate that we will generate sufficient pre-tax income in the future to realize the full benefit of...

  • Page 79
    ... and denominator used in the basic and diluted earnings per share calculations for the years ended December 31, 2009, 2008 and 2007. (In millions, except per share amounts) Numerator: Net income Denominator: Weighted-average common shares outstanding Dilutive effect of stock-based awards Weighted...

  • Page 80
    ...term interest rates. Under these agreements, we have contracted to pay a variable rate of LIBOR plus a markup and to receive fixed rates of 7.375%. The swap agreements were originally designated as fair value hedges of the related debt and met the requirements to be accounted for under the short-cut...

  • Page 81
    ... acquire these swaps from a commercial bank that was ready to transact and, therefore, the interest rate swaps are considered a level 2 item. Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, short-term debt, accounts...

  • Page 82
    ... 2) Significant Unobservable Inputs (Level 3) (In millions) Year Ended December 31, 2009 Long-lived assets held and used $ Fair Value of Assets (Liabilities) 1.0 -- -- $ 1.0 In 2009, long-lived assets held and used in our U.S. RadioShack company-operated stores and kiosks with a carrying...

  • Page 83
    ... for the Northern District of California, based on allegations that RadioShack failed to properly reimburse employees in California for mileage expenses associated with their use of personal vehicles to make transfers of merchandise between Company stores. On February 9, 2009, the court granted the...

  • Page 84
    ... based on operating income, which is defined as sales less cost of products sold and certain direct operating expenses, including labor, rent, and occupancy costs. Asset balances by reportable segment have not been included in the segment table below, as these are managed on a company-wide level...

  • Page 85
    ... category reflect our business activities that are not separately reportable, which include our dealer network, e-commerce, third-party service centers, manufacturing and foreign operations. (In millions) 2009 Net sales and operating revenues: U.S. RadioShack company-operated stores Kiosks (1) Other...

  • Page 86
    Product Sales Information: Our consolidated net sales and operating revenues are summarized by groups of similar products and services, as follows: Consolidated Net Sales and Operating Revenues Year Ended December 31, 2009 2008 2007 $1,633.3 38.2% $1,387.3 32.8% $1,415.8 1,058.6 24.8 1,174.6 27.8 1,...

  • Page 87
    .... (In millions, except per share amounts) Year ended December 31, 2009: Net sales and operating revenues Cost of products sold Gross profit SG&A expense Depreciation and amortization Impairment of long-lived assets Total operating expenses Operating income Interest income Interest expense Other loss...

  • Page 88
    (In millions, except per share amounts) Year ended December 31, 2008: Net sales and operating revenues Cost of products sold Gross profit SG&A expense Depreciation and amortization Impairment of long-lived assets Total operating expenses Operating income Interest income Interest expense Other loss ...

  • Page 89
    ... New Note due 2011 (filed as Exhibit 4.2 to RadioShack's Form S-4, filed on June 8, 2001, and incorporated herein by reference). Indenture, dated as of August 18, 2008, between RadioShack Corporation and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.1 to RadioShack...

  • Page 90
    ...on December 16, 2008, and incorporated herein by reference). RadioShack Corporation Officers Deferred Compensation Plan as restated July 10, 1992 (filed as Exhibit 10d to RadioShack's Form 10-K filed on March 30, 1994, for the fiscal year ended December 31, 1993, and incorporated herein by reference...

  • Page 91
    ... the fiscal year ended December 31, 2002, and incorporated herein by reference). Second Amended and Restated RadioShack Corporation Unfunded Deferred Compensation Plan for Directors, effective as of December 31, 2008 (filed as Exhibit 10.57 to RadioShack's Form 10-K filed on February 24, 2009, and...

  • Page 92
    ... the fiscal quarter ended March 31, 2002, and incorporated herein by reference). RadioShack 2004 Annual and Long-Term Incentive Compensation Plan (the written description of which is contained on pages 26 through 29 of RadioShack's Proxy Statement filed on April 8, 2004, for the 2004 Annual Meeting...

  • Page 93
    ... RadioShack Corporation Officer's Supplemental Executive Retirement Plan (filed as Exhibit 10.59 to RadioShack's Form 10-K filed on February 24, 2009, and incorporated herein by reference). RadioShack Corporation Officers' Severance Program (filed as Exhibit 10.3 to RadioShack's Form 8-K filed...

  • Page 94
    ...and Restated RadioShack Corporation Termination Protection Plan (Level I), effective as of December 31, 2008 (filed as Exhibit 10.55 to RadioShack's Form 10-K filed on February 24, 2009, and incorporated herein by reference). 2009 RadioShack Corporation Annual & Long-Term Incentive Compensation Plan...

  • Page 95
    ® IS HERE, THERE AND EVERYWHERE. CORPORATE AND DEALER LOCATIONS (as of Dec. 31, 2009) 130 35 11 118 23 129 191 43 84 259 225 155 234 39... Saudi Arabia St. Maarten Trinidad United Arab Emirates Venezuela 24 51 3 Hawaii Hawaii Puerto Rico Puerto Rico U.S. Virgin Islands U.S. Virgin Islands

  • Page 96
    ... Public Accounting Firm PricewaterhouseCoopers LLP Fort Worth, Texas RADIOSHACK has included as Exhibits 31(a) and 31(b) to its Annual Report on Form 10-K for fiscal year 2009 filed with the Securities and Exchange Commission certificates of the Chief Executive Officer and Chief Financial Officer...

  • Page 97
    RadioShack Corporation 300 RadioShack Circle Fort Worth, TX 76102 THESHACK.com RadioShack.com RadioShackCorporation.com