Radio Shack 2010 Annual Report Download - page 77

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67
primarily offer wireless products and associated
accessories. These reportable segments are managed
separately due to our kiosks’ narrow product offerings and
performance relative to size.
We evaluate the performance of each reportable segment
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 and are not fully allocated to each
segment for management reporting purposes. Amounts in
the other category reflect our business activities that are not
separately reportable, which include sales to our
independent dealers, sales to other third parties through
our service centers, sales generated by our
www.radioshack.com website and our Mexican subsidiary,
sales to commercial customers, and sales to other third
parties through our global sourcing and manufacturing
operations.
Year Ended December 31,
(In millions) 2010 2009 2008
Net sales and operating revenues:
U.S. RadioShack company-operated stores $ 3,808.2 $ 3,650.9 $ 3,611.1
Kiosks 271.6 250.0 283.5
Other
(1)
392.9 375.1 329.9
$ 4,472.7 $ 4,276.0 $ 4,224.5
Operating income:
U.S. RadioShack company-operated stores $ 675.4 $ 702.8 $ 716.4
Kiosks 21.2 15.4 8.4
Other
(1)
41.8 39.9 44.1
738.4 758.1 768.9
Unallocated
(2) (3
)
(363.0) (388.7) (446.7)
Operating income 375.4 369.4 322.2
Interest income 2.6 4.8 14.6
Interest expense (41.9) (44.1) (34.9)
Other loss -- (1.6) (2.4)
Income before income taxes $ 336.1 $ 328.5 $ 299.5
Depreciation and amortization:
U.S. RadioShack company-operated stores $ 45.4 $ 45.8 $ 52.9
Kiosks 2.3 3.2 5.8
Other 3.7 5.8 1.8
51.4 54.8 60.5
Unallocated
(
4
)
32.8 38.1 38.6
$ 84.2 $ 92.9 $ 99.1
(1) Net sales and operating revenues and operating income for 2010 and 2009 include the consolidation of our Mexican subsidiary.
(2) The unallocated category included in operating income relates to our overhead and corporate expenses that are not allocated to our operating segments for
management reporting purposes. Unallocated costs include corporate departmental expenses such as labor and benefits, as well as advertising, insurance,
distribution and information technology costs plus certain unusual or infrequent gains or losses.
(3) Unallocated operating income for 2008 includes net charges aggregating $12.1 million associated with the amended lease for our corporate headquarters.
(4) Depreciation and amortization included in the unallocated category primarily relate to our information technology assets.