Radio Shack 2012 Annual Report Download - page 54

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52
Property, Plant and Equipment, Net:
December 31,
(In millions) 2012 2011
Land $ 2.5 $ 2.5
Buildings 62.9 62.4
Furniture, fixtures, equipment
and software
685.9
663.0
Leasehold improvements 355.7 360.9
Total PP&E 1,107.0 1,088.8
Less accumulated depreciation
and amortization
(868.0)
(818.6)
Property, plant and equipment, net $ 239.0 $ 270.2
Other Assets, Net:
December 31,
(In millions) 2012 2011
Notes receivable $ 12.2 $ 8.9
Deferred income taxes -- 17.1
Other 29.4 29.1
Total other assets, net $ 41.6 $ 55.1
Accrued Expenses and Other Current Liabilities:
December 31,
(In millions) 2012 2011
Insurance $ 58.7 $ 65.3
Payroll and bonuses 49.5 45.7
Sales and payroll taxes 41.6 41.1
Advertising 21.6 30.8
Gift card deferred revenue 21.9 20.6
Other 70.6 84.4
Total accrued expenses and
other current liabilities
$ 263.9
$ 287.9
Other Non-Current Liabilities:
December 31,
(In millions) 2012 2011
Liability for unrecognized tax benefits $ 135.8 $ 33.6
Deferred compensation 27.0 28.9
Deferred rent 24.7 28.7
Deferred income taxes 21.2 --
Other 14.5 23.9
Total other non-current liabilities $ 223.2 $ 115.1
NOTE 4 – GOODWILL
For the first half of 2012, we experienced a significant
decline in the market capitalization of our common stock,
which was driven primarily by lower than expected
operating results. Our market capitalization was lower than
our consolidated net book value for much of this period. We
determined that these facts were an indicator that we
should conduct an interim goodwill impairment test in the
third quarter.
After reviewing our reporting units, we determined that the
fair value of our U.S. RadioShack company-operated stores
reporting unit could not support its $3.0 million of goodwill
due to our lower market capitalization. This resulted in a
$3.0 million impairment charge that was included in our
operating results for the third quarter of 2012. Our U.S.
RadioShack company-operated stores reporting unit is
comprised of our U.S. RadioShack company-operated
stores operating segment, our overhead and corporate
expenses that are not allocated to our operating segments,
and all of our interest expense.
As a result of our fourth quarter impairment analyses, we
determined that no additional impairment charges to
goodwill were required.