Radio Shack 2009 Annual Report Download - page 60

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53
RadioShack.com: Products and information are available through our commercial Web site
www.radioshack.com. Online customers can purchase, return or exchange various products 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 are a vendor-authorized service provider
for many top tier manufacturers, such as Hewlett-Packard, LG Electronics, Motorola, Nokia and Sony,
among others. In addition, we perform repairs for third-party extended service plan providers. At December
31, 2009, we had six RadioShack service centers in the U.S. and one in Puerto Rico.
International Operations: As of December 31, 2009, there were 204 company-operated stores under the
RadioShack brand, 10 dealers, and one distribution center in Mexico. Prior to December 2008, these
operations were overseen by a joint venture in which we were a slightly less than 50% minority owner with
Grupo Gigante, S.A.B. de C.V. In December 2008, we acquired 100% ownership of this joint venture. All of
our 23 locations in Canada were closed by January 31, 2007.
Support Operations:
Our retail stores, along with our kiosks and dealer outlets, are supported by an established infrastructure.
Below are the major components of this support structure.
Distribution Centers - At December 31, 2009, we had four U.S. distribution centers shipping
approximately 875,000 cartons each month, on average, to our U.S. retail stores and dealer outlets.
One of these distribution centers also serves as a fulfillment center for our online customers.
Additionally, we have a distribution center that ships fixtures to our U.S. company-operated stores.
During the first half of 2008, we closed our distribution center in Columbus, Ohio.
RadioShack Technology Services (“RSTS”) - Our management information system architecture is
composed of a distributed, online network of computers that links all stores, customer channels,
delivery locations, service centers, credit providers, distribution facilities and our home office into a
fully integrated system. Each store has its own server to support the point-of-sale (“POS”) system.
The majority of our U.S. company-operated stores communicate through a broadband network, which
provides efficient access to customer support data. This design also allows store management to
track daily sales and inventory at the product or sales associate level. RSTS provides the majority of
our programming and systems analysis needs.
RadioShack Global Sourcing (“RSGS”) - RSGS serves our wide-ranging international import/export,
sourcing, evaluation, logistics and quality control needs. RSGS’s activities support our name brand and
private brand businesses.
Consumer Electronics Manufacturing - We operate two manufacturing facilities in the United States
and one in China. These three manufacturing facilities employed approximately 2,100 employees as of
December 31, 2009. We manufacture a variety of products, primarily sold through our retail outlets,
including telephones, antennas, wire and cable products, and a variety of “hard-to-find” parts and
accessories for consumer electronics products.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation The consolidated financial statements include the accounts of RadioShack
Corporation and all majority-owned domestic and foreign subsidiaries. All intercompany accounts and
transactions are eliminated in consolidation. We have evaluated subsequent events for recognition or
disclosure through February 22, 2010, which was the date we filed this Annual Report on Form 10-K with
the Securities and Exchange Commission (“SEC”).
Use of Estimates: The preparation of financial statements in accordance with accounting principles
generally accepted in the United States requires us to make estimates and assumptions that affect the
reported amounts of assets and liabilities, related revenues and expenses, and the disclosure of gain and