CompUSA 2010 Annual Report Download - page 92

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41
3. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net consist of the following (in thousands):
December 31,
2010 2009
Land and buildings $ 27,844 $
28,458
Furniture and fixtures, office, computer and other equipment and software 130,022 123,876
Leasehold improvements 23,944 19,212
181,810 171,546
Less accumulated depreciation and amortization 108,045 105,948
Property, plant and equipment, net $ 73,765 $
65,598
Included in property, plant and equipment are assets under capital leases, as follows (in thousands):
2010 2009
Furniture and fixtures, office, computer and other equipment $ 14,896 $
5,525
Less: Accumulated amortization 4,994 3,510
$ 9,902 $
2,015
Depreciation charged to operations for property, plant and equipment including capital leases in 2010, 2009, and 2008 was $12.9
million, $11.2 million and $10.1 million, respectively.
4. CREDIT FACILITIES
The Company maintains a $125.0 million (which may be increased to $200 million, subject to certain conditions) secured
revolving credit agreement with a group of financial institutions which provides for borrowings in the United States and United
Kingdom. Availability is subject to a borrowing base formula that takes into account eligible receivables and eligible inventory.
Borrowings are secured by substantially all of the Company’ s assets, including accounts receivable, inventory and certain other
assets, subject to limited exceptions, including the exclusion of certain foreign assets from the collateral. The amended and
restated credit agreement contains certain operating, financial and other covenants, including limits on annual levels of capital
expenditures, availability tests related to payments of dividends and stock repurchases and fixed charge coverage tests related to
acquisitions. The credit facility has a five year term and expires in October 2015. 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 prime rate (3.25% at December 31, 2010) or the
overnight daily LIBOR rate (0.25% at December 31, 2010) plus 1.00% to 2.50%. 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 expenditure, acquisitions and payments of dividends. We were in compliance with all of the covenants as of December 31,
2010. As of December 31, 2010, eligible collateral under the agreement was $125.0 million and total availability was $115.9
million. There were outstanding letters of credit of $9.1 million and there were no outstanding advances.
The Company’ s Inmac WStore subsidiary maintains a secured revolving credit agreement with a financial institution in France
which is secured by WStore Europe SA accounts receivable balances. Available amounts for borrowing under this facility
includes all accounts receivable balances not over 60 days past due reduced by the greater of €4.0 million or 10% of the eligible
accounts receivable. As of December 31, 2010 there was availability under this credit facility of approximately €15.6 million
($20.9 million) and there were no outstanding borrowings. The credit facility duration is indefinite; however either party may
cancel the agreement with ninety days notice. Under this agreement the Company is subject to certain non-financial covenants
which it was in compliance with at December 31, 2010.
The Company’ s WStore UK subsidiary maintained a £2 million secured revolving credit agreement with a financial institution in
the United Kingdom. The Company terminated this facility in July 2010.
The weighted average interest rate on short-term borrowings was 3.5%, 3.3%, and 5.1% in 2010, 2009 and 2008, respectively.