Radio Shack 2012 Annual Report Download - page 75

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73
NOTE 18 – SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION
The obligation to pay principal and interest on the 2019 Notes is jointly and severally guaranteed on a full and unconditional
basis, subject to customary release provisions, by all of the guarantors under the 2016 Credit Facility. The 2019 Notes are
guaranteed by all of our wholly-owned domestic subsidiaries except Tandy Life Insurance Company. Refer to Note 5 –
“Indebtedness and Borrowing Facilities” for additional information on the 2019 Notes and the related exchange offer.
The following condensed consolidating financial information represents the financial information of RadioShack Corporation,
its guarantor subsidiaries, and its non-guarantor subsidiaries prepared on the equity basis of accounting. Earnings of
subsidiaries are, therefore, reflected in the parent company's investment accounts and earnings. The elimination entries
primarily eliminate investments in subsidiaries and intercompany balances and transactions. The non-guarantor subsidiaries
are comprised of the foreign subsidiaries of the Company and Tandy Life Insurance Company. The financial information may
not necessarily be indicative of results of operations, cash flows or financial position had the guarantor or non-guarantor
subsidiaries operated as independent entities.
Condensed Consolidating Statements of Comprehensive Income
For the Year Ended December 31, 2012
(In millions)
RadioShack
Corporation
(Parent Co.)
Guarantor
Subsidiaries
Non-
Guarantor
Subsidiaries
Eliminations
Consolidated
Net sales and operating revenues $ 4,103.1 $ 3,926.0 $ 145.0 $ (3,916.3) $ 4,257.8
Cost of products sold 2,773.2 3,744.7 94.4 (3,916.3) 2,696.0
Gross profit 1,329.9 181.3 50.6 -- 1,561.8
Operating expenses:
Selling, general and administrative 1,364.0 118.8 46.2 -- 1,529.0
Depreciation and amortization 63.7 6.3 2.3 -- 72.3
Impairment of long-lived assets and goodwill 9.7 11.7 -- -- 21.4
Total operating expenses 1,437.4 136.8 48.5 -- 1,622.7
Operating (loss) income (107.5) 44.5 2.1 -- (60.9)
Interest income 0.7 11.2 5.9 (15.9) 1.9
Interest expense (70.0) -- (0.4) 15.9 (54.5)
Other loss (0.6) -- -- -- (0.6)
(Loss) income from continuing operations
before income taxes
(177.4)
55.7
7.6
--
(114.1)
Income tax (benefit) expense (31.6) 54.6 2.3 -- 25.3
Equity in earnings of subsidiaries, net of income taxes 6.4 3.7 -- (10.1) --
(Loss) income from continuing operations (139.4) 4.8 5.3 (10.1) (139.4)
Discontinued operations, net of income taxes -- -- -- -- --
Net (loss) income $ (139.4) $ 4.8 $ 5.3 $ (10.1) $ (139.4)
Comprehensive (loss) income $ (135.0) $ 8.5 $ 9.2 $ (17.7) $ (135.0)