CompUSA 2014 Annual Report Download - page 40

We maintain our cash and cash equivalents primarily in non-
interest bearing cash accounts that partially offset banking fees as the earnings
credit for doing so exceeds current money market yields. As of December 31, 2014, we had no investments with maturities of greater than three
months. Accordingly, we do not believe that our cash balances have significant exposure to interest rate risk. At December 31, 2014 cash
balances held in foreign subsidiaries totaled approximately $64.4 million. These balances are held in local country banks and are not readily
available to the U.S. parent company on a tax efficient basis. The Company would need to accrue and pay income taxes on any cash repatriated
to the U.S. parent company. The Company has made the decision to indefinitely reinvest earnings in its foreign tax jurisdictions. The Company
had in excess of $220 million of liquidity (cash and undrawn line of credit) in the U.S. as of December 31, 2014, which is sufficient to fund its
U.S. operations and capital needs, including any dividend payments, for the foreseeable future.
We are obligated under non-
cancelable operating leases for the rental of most of our facilities and certain of our equipment which expires at
various dates through 2032. We have sublease agreements for unused space we lease in the United States. In the event the sub lessee is unable
to fulfill its obligations, we would be responsible for rents due under the leases.
As a result of the Technology Products business segment exiting the consumer electronics business in 2015 the Company will be seeking to
terminate certain of its retail store operating leases early or to sublet them where possible.
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, 2014 (in millions):
Our purchase and other obligations consist primarily of product purchase commitments, certain employment agreements and service agreements.
In addition to the contractual obligations noted above, we had $5.5 million of standby letters of credit outstanding as of December 2014.
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, 2014, the Company had no material uncertain tax positions.
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 an entity owned by Richard Leeds, Bruce Leeds, and Robert Leeds,
senior executives, Directors and controlling shareholders of the Company.
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Table of Contents
Total
Less than
1 year
1
-
3 years
3
-
5 years
More than
5 years
Contractual Obligations:
Capital lease obligations
$
3.7
2.8
0.9
-
-
Non
-cancelable operating leases, net of
subleases
204.0
27.8
72.4
45.2
58.6
Purchase & other obligations
66.3
49.9
8.2
8.2
-
Total contractual obligations
$
274.0
80.5
81.5
53.4
58.6