CompUSA 2012 Annual Report Download - page 33

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 31, 2012 (in millions):
Our purchase and other obligations consist primarily of certain employment agreements and service agreements.
In addition to the contractual obligations noted above, we had $6.0 million of standby letters of credit outstanding as of December 2012.
We are party to certain litigation, the outcome of which we believe, based on discussions with legal counsel, will not have a material adverse
effect on our consolidated financial statements.
Tax contingencies are related to uncertain tax positions taken on income tax returns that may result in additional tax, interest and penalties being
paid to taxing authorities. As of December 31, 2012, the Company had no material uncertain tax positions.
In January 2013, the Company entered into a lease for the European Technology Products segment’
s shared services center. The facility, located
in Budapest, Hungary, is approximately 52,000 square feet and is leased through March 2023. The following table details the contractual
obligations related to this lease (in millions):
Off-Balance Sheet Arrangements
We have not created, and are not party to, any special-purpose or off-balance sheet entities for the purpose of raising capital, incurring debt or
operating our business. We do not have any arrangements or relationships with entities that are not consolidated into the financial statements that
are reasonably likely to materially affect our liquidity or the availability of capital resources.
The Company currently leases its facility in Port Washington, NY from Addwin Realty Associates, an entity owned by Richard Leeds, Bruce
Leeds, and Robert Leeds, senior executives, Directors and controlling shareholders of the Company.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
We are exposed to market risks, which include changes in U.S. and international interest rates as well as changes in currency exchange rates
(principally British Pounds Sterling, European Union Euros and Canadian Dollars) as measured against the U.S. Dollar and each other.
The translation of the financial statements of our operations located outside of the United States is impacted by movements in foreign currency
exchange rates. Changes in currency exchange rates as measured against the U.S. dollar may positively or negatively affect income statement,
balance sheet and cash flows as expressed in U.S. dollars. Sales would have fluctuated by approximately $140.0 million and pretax income
would have fluctuated by approximately $4.0 million if average foreign exchange rates changed by 10% in 2012. We have limited involvement
with derivative financial instruments and do not use them for trading purposes. We may enter into foreign currency options or forward exchange
contracts aimed at limiting in part the impact of certain currency fluctuations, but as of December 31, 2012 we had no outstanding forward
exchange contracts.
Table of Contents
Total
Less than
1 year
1
-
3 years
3
-
5 years
More than
5 years
Contractual Obligations:
Capital lease obligations
$
9.7
3.3
6.2
0.2
-
Non
-cancelable operating leases, net of
subleases
233.3
28.4
75.3
59.3
70.3
Purchase & other obligations
46.8
28.2
9.6
9.0
-
Total contractual obligations
$
289.8
59.9
91.1
68.5
70.3
Payments due by period
2013
2014
2015
2016
2017
After 2017
Shared services center operating lease
$
0.3
$
0.9
$
1.1
$
1.1
$
1.1
$
5.5
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