Radio Shack 2009 Annual Report Download - page 21

Download and view the complete annual report

Please find page 21 of the 2009 Radio Shack annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

14
We lease, rather than own, most of our retail facilities. Our stores are located in shopping malls, stand-alone
buildings and shopping centers owned by other entities. We lease administrative offices throughout the
United States and one manufacturing plant in China. We closed our leased distribution center in Columbus,
Ohio, during the first half of 2008. We own the property on which our five distribution centers and two
manufacturing facilities are located within the United States. In 2008, we amended the lease for the
buildings and certain property at our corporate headquarters located in downtown Fort Worth, Texas. The
amended lease is for a reduced amount of space, requires no lease payments, and expires 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 At December 31,
(Sq. Ft.) 2009 2008 2007
U.S. RadioShack company-operated
stores
2,504
4,476
4,453
4,447
Kiosks
(1)
(2)
(3)
(4)
76 562 688 739
Mexico RadioShack company-operated
stores
1,288
204
200
--
Dealer and other outlets (5) N/A 1,321 1,411 1,484
Total number of retail locations 6,563 6,752 6,670
(1) In April 2009 we agreed with Sprint Nextel to cease our arrangement to jointly operate the Sprint-branded kiosks in
operation at that date. This agreement allowed us to operate these kiosks under the Sprint name for a reasonable
period of time, allowing us to transition the kiosks to a new format. In August 2009, we transitioned these kiosks to
multiple wireless carrier RadioShack-branded locations. 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.
(2) In February 2009, we signed a contract extension with Sam’s Club through March 31, 2011, with a transition period
ending June 30, 2011, to continue operating kiosks in certain Sam’s Club locations. As part of the terms of the
contract extension, we assigned the operation of 66 kiosk locations to Sam’s Club in 2009. We will assign at least
22 locations to Sam’s Club in 2010, and Sam’s Club still has the right to assume the operations of up to 23
additional kiosk locations.
(3) We are currently conducting a test rollout of kiosk locations in approximately 100 Target stores. This test will be
completed in 2010. At the conclusion of the test, a determination will be made with Target regarding whether these
operations will be expanded or closed.
(4) The decrease of 51 locations during 2008 was primarily related to our decision not to renew leases on
underperforming Sprint-branded kiosks.
(5) Our dealer and other outlets decreased by 90 and 73 locations, net of new openings, during 2009 and 2008,
respectively. These declines were primarily due to the closure of lower volume outlets.
Real Estate Owned and Leased
Approximate Square Footage
At December 31,
2009 2008
(In thousands) Owned Leased Total Owned Leased Total
Retail
RadioShack company-
operated stores
10
11,209
11,219
13
11,141
11,154
Kiosks -- 43 43 -- 68 68
Mexico company-
operated stores
--
263
263
--
253
253
Support Operations
Manufacturing 134 320 454 134 320 454
Distribution centers
and office space
2,077
334
2,411
2,229
1,021
3,250
2,221 12,169 14,390 2,376 12,803 15,179