Radio Shack 2012 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 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

53
The changes in the carrying amount of goodwill by reportable segment were as follows for the years ended December 31,
2012 and 2011:
(In millions)
U.S.
RadioShack
Stores
Target
Mobile
Other (1)
Total
Balances at December 31, 2010
Goodwill $ 2.9 $ -- $ 38.3 $ 41.2
Accumulated impairment losses -- -- -- --
2.9 -- 38.3 41.2
Foreign currency translation adjustment -- -- (4.2) (4.2)
Balances at December 31, 2011
Goodwill 2.9 -- 34.1 37.0
Accumulated impairment losses -- -- -- --
2.9 -- 34.1 37.0
Acquisition of dealer 0.1 -- -- 0.1
Goodwill impairment (3.0) -- -- (3.0)
Foreign currency translation adjustment -- -- 2.5 2.5
Balances at December 31, 2012
Goodwill 3.0 -- 36.6 39.6
Accumulated impairment losses (3.0) -- -- (3.0)
$ -- $ -- $ 36.6 $ 36.6
(1) Goodwill classified as Other in the above table primarily relates to goodwill recorded on our Mexican subsidiary reporting unit.
NOTE 5 – INDEBTEDNESS AND BORROWING
FACILITIES
Long-Term Debt:
December 31,
(In millions) 2012 2011
Five year 2.5% unsecured
convertible notes due in
August 2013
$ 286.9
$ 375.0
Credit facility term loan due in
January 2016
50.0
--
Credit facility term loan due in
September 2017
25.0
--
Term loan due in September 2017 100.0 --
Eight year 6.75% unsecured
notes payable due in May 2019
325.0
325.0
Other 1.0 1.0
787.9 701.0
Unamortized debt discounts (10.2) (30.4)
777.7 670.6
Less current portion of:
Notes payable 286.9 --
Unamortized debt discount (8.2) --
278.7 --
Total long-term debt $ 499.0 $ 670.6
Long-term borrowings outstanding at December 31, 2012,
mature as follows:
Long-Term
Borrowings
(In millions)
2013 $ 286.9
2014 2.7
2015 6.7
2016 56.7
2017 109.9
2018 and thereafter 325.0
Total $ 787.9
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.