Circuit City 2010 Annual Report Download - page 46

Accrued expenses and other current liabilities consist of the following (in thousands):
On September 23, 2010, the Company (through a subsidiary) completed tax exempt Recovery Zone Facility Bond (the “Bonds”)
financing
for up to $15 million with the Development Authority of Jefferson, Georgia (the “Authority”).
The Bonds were issued by the Authority
and initially purchased by GE Government Finance Inc., and mature on October 1, 2018. Interest on the Bonds is calculated at the rate of
4.15% per annum and principal and interest payments are due monthly. The proceeds of the Bonds are used to finance or repay the costs
of capital equipment purchased for the Company’
s distribution facility located in Jefferson, Georgia. The purchase and installation of all
the equipment for the facility is expected to be completed by December 31, 2011. Pursuant to the transaction, the Company will transfer
to the Authority for consideration consisting of the Bond proceeds ownership of the equipment to be used at the distribution facility and
the Authority in turn will lease the equipment to the Company’
s subsidiary pursuant to a capital equipment lease expiring October 1,
2018. Under the capital equipment lease the Company has the right to acquire ownership of the equipment at any time for a purchase price
sufficient to pay off all principal and interest on the Bonds, plus $1.00. As a result of the capital lease treatment for this transaction, the
leased equipment is included in property, plant and equipment in the Company’
s consolidated balance sheet. As of December 31, 2010 the
Company had $7.9 million outstanding against this facility.
Long-term debt consists of (in thousands):
The aggregate maturities of long-term debt outstanding at December 31, 2010 are as follows (in thousands):
The Company announced plans to exit its Software Solutions segment, in the second quarter of 2009, as the result of economic
conditions and difficulties in marketing the segment’s products successfully. Total charges incurred for the years ended December 31,
2010 and December 31, 2009 were $0.3 million and $2.9 million, respectively. These costs were recorded in selling, general and
administrative expenses within the Corporate and Other segment in the accompanying condensed consolidated statement of operations.
The following table reconciles the associated liabilities incurred (in thousands):
5.
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
December 31,
2010
2009
Payroll and employee benefits
$
30,166
$
27,715
Freight
17,142
9,171
Advertising
8,033
8,030
Sales and VAT tax payable
8,613
7,989
Other
20,726
25,936
$
84,680
$
78,841
6.
LONG
-
TERM DEBT
December 31,
2010
2009
Capitalized equipment lease obligations
$
10,041
$
2,223
Less: current portion
2,655
1,029
$
7,386
$
1,194
2011
2012
2013
2014
2015
Maturities
$
2,655
$
2,329
$
2,249
$
1,967
$
841
7.
BUSINESS EXIT AND REORGANIZATION COSTS
Severance
and
Personnel
Costs
Contract
Termination
Costs
Other Exit Costs
Total
Balance January 1, 2009
$
-
$
-
$
-
$
-
Charged to expense
1,208
1,644
80
2,932
Paid or otherwise settled
(1,208
)
(697
)
(80
)
(1,985
)
Balance December 31, 2009
-
947
-
947
Charged to expense
-
284
-
284
Paid or otherwise settled
-
(918
)
-
(918
)
Balance December 31, 2010
$
-
$
313
$
-
$
313
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