CompUSA 2014 Annual Report Download - page 61

Included in property, plant and equipment are assets under capital leases, as follows (in thousands):
Depreciation charged to operations for property, plant and equipment including capital leases in 2014, 2013, and 2012 was $15.4 million,
$17.4 million and $16.6 million, respectively. As a result of negative cash flows in its Technology Products segment operations in North
America, and a forecast for continued use of cash, the Company conducted an evaluation of the long-
lived assets in those operations and
concluded that those assets were impaired. Accordingly an impairment charge of approximately $9.5 million, pre-tax, was recorded.
5. CREDIT FACILITIES
The Company maintains a $125.0 million (which may be increased to $200.0 million, subject to certain conditions) secured revolving credit
agreement with a group of financial institutions which provides for borrowings in the United States. The credit facility has a five year term
and expires in October 26, 2015 and the Company expects to renew the facility on or before that date in 2015. 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. The 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 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 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 rate under this facility is computed at applicable market
rates based on LIBOR or the Prime Rate, plus an applicable margin. The applicable margin varies based on borrowing base availability. As
of December 31, 2014, eligible collateral under this agreement was $121.9 million, total availability was $116.4 million, total outstanding
letters of credit were $5.5 million and there were no outstanding advances. The Company was in compliance with all of the covenants under
this facility as of December 31, 2014.
The weighted average interest rate on short-term borrowings was 4.3%, 4.3%, and 4.3% in 2014, 2013 and 2012, respectively.
6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following (in millions):
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Table of Contents
2014
2013
Office, computer and other equipment
$
17.4
$
17.4
Less: Accumulated amortization
14.5
12.0
$
2.9
$
5.4
December 31,
2014
2013
Payroll and employee benefits
$
34.6
$
33.0
Advertising
11.9
10.0
Sales and VAT tax payable
9.3
9.0
Freight
8.0
6.7
Reorganization costs
4.7
8.0
Other
24.5
22.5
$
93.0
$
89.2