Circuit City 2008 Annual Report Download - page 31

Table of Contents
from debt and capital leases obligations provided approximately $4.0 million of cash. Net cash used in financing activities was $42.5 million
during 2007, attributable to dividends paid of $36.6 million, repayment of short term debt of $9.0 million, offset by proceeds of stock option
exercises, related excess tax benefits and share repurchases of $3.1 million. Net cash of $22.1 million was used in financing activities for 2006.
Repayment of short and long-term borrowings used approximately $24.8 million of cash and proceeds from stock option exercises and excess
tax benefits from stock option exercises provided approximately $2.6 million of cash.
We have a $120.0 million secured revolving credit agreement (which may be increased by up to an additional $30.0 million, subject to certain
conditions). The facility expires in October 2010. Borrowings under the agreement are subject to borrowing base limitations of up to 85% of
eligible accounts receivable and 40% of qualified inventories and are secured by accounts receivable, inventories and certain other assets. The
undrawn availability under the facility may not be less than $15.0 million until the last day of any month in which the availability net of
outstanding borrowings is at least $70.0 million. The revolving credit agreement requires that we maintain a minimum level of availability. If
such availability is not maintained, we will then be required to maintain a fixed charge coverage ratio (as defined). The agreement contains
certain other covenants, including restrictions on capital expenditures and payments of dividends. As of December 31, 2008, the Company was
in compliance with all of the covenants under the credit facility. Eligible collateral under the facility was $103.5 million, total availability was
$94.4 million, outstanding letters of credit of were $9.1 million and there were no outstanding advances.
The Company’s Netherlands subsidiary maintained a €5.0 million credit facility with a local financial institution. This facility expired in
November 2008 and was not renewed.
In April 2002, we entered into a ten year, $8.4 million mortgage loan on our Suwanee, Georgia distribution facility. During the first quarter of
fiscal 2006, we sold this facility and repaid the remaining balance on the loan. The facility was replaced by a larger, leased distribution center in
a nearby area.
We are obligated under non-cancelable operating leases for the rental of most of our facilities and certain of our equipment which expire at
various dates through 2026. We have sublease agreements for unused space we lease in Wellingborough, England. In the event the sublessee is
unable to fulfill its obligations, we would be responsible for rent due under the lease.
Following is a summary of our contractual obligations for future principal payments on our debt, minimum rental payments on our non-
cancelable operating leases and minimum payments on our other purchase obligations as of December 2008 (in thousands):
29
Total
Less than
1 year
1
-
3 years
3
-
5 years
More than
5 years
Contractual Obligations:
Capital lease obligations
$
2,451
$
905
$
1,421
$
125
$
—
Non
-cancelable operating leases, net of
subleases
135,609
19,034
47,880
31,794
36,901
Purchase & other obligations
28.483
21,093
4,531
2,859
—
Tax contingencies
1,195
1,195
—
—
—
Total contractual obligations
$
167,738
$
42,227
$
53,832
$
34,778
$
36,901