Radio Shack 2012 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2012 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 92

  • 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

11
entail significant risks and uncertainties, however, including
without limitation:
• Economic, social and political instability in any
particular country or region
• Changes in currency exchange rates
• Changes in government restrictions on converting
currencies or repatriating funds
• Changes in U.S. or foreign laws and regulations or in
trade, monetary or fiscal policies
• High inflation and monetary fluctuations
• Changes in restrictions on imports and exports
• Difficulties in hiring, training and retaining qualified
personnel, particularly finance and accounting
personnel with expertise in generally accepted
accounting principles in the United States
• Inability to obtain access to fair and equitable
political, regulatory, administrative and legal systems
• Changes in government tax policy
• Difficulties in enforcing our contractual rights or
enforcing judgments or obtaining a just result in
foreign jurisdictions
• Potentially adverse tax consequences of operating in
multiple jurisdictions
• Managing our relationship and contractual rights with
any partner we enter into business with in a foreign
country
• Access to sufficient capital
Any of these factors, by itself or in combination with others,
could materially adversely affect our results of operations
and financial condition.
We may be unable to keep existing retail locations or
open new retail locations in desirable places, which
could materially adversely affect our sales and
profitability.
We may be unable to keep existing retail locations or open
new retail locations in desirable places in the future. We
compete with other retailers and businesses for suitable
retail locations. Local land use, local zoning issues,
environmental regulations and other regulations may affect
our ability to find suitable retail locations and also influence
the cost of leasing, building or buying them. We also may
have difficulty negotiating real estate leases and purchase
agreements on acceptable terms. Further, to relocate or
open new retail locations successfully, we must hire and
train employees for them. Construction, environmental,
zoning and real estate delays may negatively affect retail
location openings and increase costs and capital
expenditures. In addition, when we open new retail
locations in markets where we already have a presence,
our existing locations may experience a decline in sales as
a result, and when we open retail locations in new markets,
we may encounter difficulties in attracting customers due to
a lack of customer familiarity with our brand, our lack of
familiarity with local customer preferences, competition with
new competitors or with existing competitors with a large,
established market presence, and seasonal differences in
the market. We cannot be certain that new or relocated
retail locations will produce the anticipated sales or return
on investment or that existing retail locations will not be
materially adversely affected by new or expanded
competition in their market areas.
Terrorist activities and governmental efforts to thwart
them could materially adversely affect our results of
operations and financial condition.
A terrorist attack or series of attacks on the United States
could have a significant adverse effect on its economy. This
downturn in the economy could, in turn, materially
adversely affect our results of operations and financial
condition. The potential for future terrorist attacks, the
national and international responses to terrorist attacks,
and other acts of war or hostility could cause greater
uncertainty and cause the economy to suffer in ways that
we cannot predict.
ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
ITEM 2. PROPERTIES.
Information on our properties is presented in our MD&A and
financial statements included in this Annual Report on Form
10-K and is incorporated into this Item 2 by reference.
The following items are discussed further in the Notes to
Consolidated Financial Statements:
Summary of Significant Accounting Policies –
Property, Plant and Equipment
Note 2
Supplemental Balance Sheet Disclosures –
Property, Plant and Equipment, Net
Note 3
Commitments and Contingencies Note 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 in
Mexico, Hong Kong, and Taiwan. We own the property on
which our three distribution centers and two manufacturing
facilities are located within the United States. Previously,
we leased a manufacturing plant in China. Our lease for
this plant ended on December 31, 2011. We ceased
manufacturing operations in this plant in 2011.