CompUSA 2008 Annual Report Download - page 83

48
3. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net consist of the following (in thousands):
December 31,
2008 2007
Land and buildings $26,556 $32,724
Furniture and fixtures, office, computer and other equipment and software 92,377 82,838
Leasehold improvements 14,839 12,748
133,772 128,310
Less accumulated depreciation and amortization 85,307 80,730
Property, plant and equipment, net $48,465 $47,580
Included in property, plant and equipment are assets under capital leases, as follows (in thousands):
2008 2007
Furniture and fixtures, office, computer and other equipment $4,300 $2,612
Less: Accumulated amortization 2,564 1,798
$1,736 $814
Depreciation charged to operations for property, plant and equipment in 2008, 2007, and 2006 was $10.1 million, $8.8
million and $8.2 million, respectively.
4. CREDIT FACILITIES
The Company maintains a revolving credit agreement with a group of financial institutions at an amount of $120 million
(which may be increased by up to $30 million, subject to certain conditions). The borrowings are secured by all of the
domestic and United Kingdom accounts receivable, the domestic inventories of the Company, the Company’ s United
Kingdom headquarters building and the Company’ s shares of stock in its domestic and United Kingdom subsidiaries. The
credit facility expires and outstanding borrowings thereunder are due on October 26, 2010. The borrowings under the
agreement are subject to borrowing base limitations of up to 85% of eligible accounts receivable and up to 40% of qualified
inventories. The interest on outstanding advances is payable monthly, at the Company’ s option, at the agent bank’ s base rate
(at December 31, 2008) plus 0.25% or the bank's daily LIBOR rate (at December 31, 2008) plus 1.25% to 2.25%. The
undrawn availability under the facility may not be less than $15 million until the last day of any month in which the
availability net of outstanding borrowings is at least $70 million. The facility also calls for a commitment fee payable
quarterly in arrears of 0.375% of the average daily unused portions of the facility. The revolving credit agreement requires
that a minimum level of availability be maintained. If such availability is not maintained, the Company will 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. We were in compliance with all of the covenants as of December 31,
2008. As of December 31, 2008, eligible collateral under the agreement was $103.5 million and total availability was $94.4
million. There were outstanding letters of credit of $9.1 million and there were no outstanding advances.
The Company’ s Netherlands subsidiary maintained a €5 million credit facility with a local financial institution. Borrowings
under the facility were secured by the subsidiary’ s accounts receivable and are subject to a borrowing base limitation of 85%
of the eligible accounts. The facility expired during 2008. At December 31, 2007 there was €2.6 million ($3.9 million) of
borrowings outstanding under this line with interest payable at a rate of 7.05%.
The weighted average interest rate on short-term borrowings was 5.1%, 7.5%, and 7.8% in 2008, 2007 and 2006.
5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following (in thousands):
December 31,
2008 2007
Payroll and employee benefits $25,669 $21,850
Income taxes payable 733 2,297
Freight 6,820 10,908
Deferred revenue 5,683 5,704
Advertising 5,286 4,785
Sales and VAT tax payable 8,061 2,140
Other 23,351 33,953
$75,603 $81,637