Radio Shack 2012 Annual Report Download - page 30

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expenditures. The following table is a reconciliation of cash
flows from operating activities to free cash flow.
Year Ended December 31,
(In millions) 2012 2011
2010
Net cash (used in) provided
by operating activities $ (43.0) $ 217.9 $ 155.0
Less:
Additions to property, plant
and equipment 67.8 82.1 80.1
Dividends paid 24.9 49.6 26.5
Free cash flow $ (135.7) $ 86.2 $ 48.4
SOURCES OF LIQUIDITY
As of December 31, 2012, we had $535.7 million in cash and cash equivalents, compared with $591.7 million as of December
31, 2011. The table below lists our credit commitments from various financial institutions at December 31, 2012.
(In millions) Commitment Expiration per Period
Credit Commitments
Total Amounts
Committed
Less Than
1 Year 1-3 Years 3-5 Years
Over
5 Years
Lines of credit
(1)
$450.0 $ -- $ -- $450.0 $ --
Standby letters of credit -- -- -- -- --
Total commercial commitments $450.0 $ -- $ -- $450.0 $ --
(1) At December 31, 2012, our maximum availability for revolving borrowings was $393.7 million. No revolving borrowings have been made under the facility, and
letters of credit totaling $3.1 million had been issued as of December 31, 2012, resulting in $390.6 million of availability for revolving borrowings.
2016 Credit Facility: In August 2012 we entered into an
amended and restated credit agreement (“Restated 2016
Credit Facility” or “2016 Credit Facility”) with a group of
lenders with Bank of America, N.A., as the administrative
and collateral agent. The Restated 2016 Credit Facility
amends and restates the Company’s existing asset-based
revolving credit agreement (the “Original 2016 Credit
Facility”). The Restated 2016 Credit Facility revised the
terms of the Original 2016 Credit Facility to, among other
things, provide for $75 million of term loans.
Like the Original 2016 Credit Facility, the Restated 2016
Credit Facility matures on January 4, 2016, and provides
for an asset-based revolving credit line of $450 million,
subject to a borrowing base, which was $642.8 million at
December 31, 2012. As with the Original 2016 Credit
Facility, obligations under the Restated 2016 Credit Facility
are secured by substantially all of our inventory, accounts
receivable, cash, and cash equivalents. Obligations under
the Restated 2016 Credit Facility are also secured by
certain real estate.
As with the Original 2016 Credit Facility, revolving
borrowings under the Restated 2016 Credit Facility bear
interest at our choice of a bank’s prime rate plus 1.25% to
1.75% or LIBOR plus 2.25% to 2.75%. The applicable rates
in these ranges are based on the aggregate average
availability under the facility. The Restated 2016 Credit
Facility also contains a $200 million sub-limit for the
issuance of standby and commercial letters of credit. The
issuance of letters of credit reduces the amount available
under the facility. Letter of credit fees are 2.25% to 2.75%
for standby letters of credit and 1.125% to 1.375% for
commercial letters of credit. We pay commitment fees to
the lenders at an annual rate of 0.50% of the unused
amount of the facility.
The maximum availability for revolving borrowings under
the 2016 Credit Facility is determined at the end of each
month and is calculated as the lesser of:
• $450 million, or
• Our borrowing base for revolving borrowings less
$45 million (calculated as $597.8 million at
December 31, 2012), or
• Our borrowing base for revolving borrowings up to a
maximum amount of $450 million less the greater of
12.5% (currently $56.3 million) or $45 million if we
do not meet a specified consolidated fixed charge
coverage ratio during a trailing twelve-month period
(calculated as $393.7 million at December 31, 2012).
As of December 31, 2012, our maximum availability for
revolving borrowings under the 2016 Credit Facility was
$393.7 million as a result of us not meeting the
consolidated fixed charge coverage ratio at December 31,
2012. As of December 31, 2012, no revolving borrowings