CompUSA 2014 Annual Report Download - page 62

7.
LONG-TERM DEBT
The Company (through a subsidiary) has an outstanding Bond financing with the Development Authority of Jefferson, Georgia (the
“Authority”).
The Bonds were issued by the Authority and purchased by GE Government Finance Inc., and mature on October 1, 2018.
The proceeds from the Bond were used to finance capital equipment purchased for the Company’
s distribution facility located in Jefferson,
Georgia. The purchase and installation of the equipment for the facility was completed by December 31, 2011. Pursuant to the transaction,
the Company transferred to the Authority, for consideration consisting of the Bond proceeds, ownership of the equipment and the Authority
leased the equipment to the Company’
s subsidiary pursuant to a capital equipment lease expiring October 1, 2018. Under the capital
equipment lease, the Company has the right to acquire ownership of the equipment at any time for a purchase price sufficient to pay off all
principal and interest on the Bonds, plus $1.00. As of December 31, 2014, there was $2.2 million outstanding against this financing facility.
Long-term debt consists of (in millions):
The aggregate maturities of long-term debt outstanding at December 31, 2014 are as follows (in millions):
8.
SPECIAL CHARGES, NET
The Company’s Technology Products segment incurred special charges of approximately $24. 3
million in 2014. These charges, estimates
of which were previously disclosed, included approximately $11.7 million in estimated workforce reductions related to the restructuring of
our European operations, $0.5 million in continued recruitment costs to staff the European shared services center, $0.1 million for changes
in the estimate of lease valuation accruals and the buyout of the two retail store leases that were exited in 2013 prior to lease expiration
(Other Exit Costs), $0.3 million in other costs related to the retail stores that were closed in 2013, $0.2 million in charges related to the final
sale of the facility which had been used in connection with our previously exited PC manufacturing business and $1.5 million of additional
legal and professional fees related to the previously disclosed investigation and settlement with former officers and employees. In the fourth
quarter of 2014, after conducting an evaluation of the long-
lived and intangible assets in its operations in the United States and Canada, an
impairment charge of approximately $10.0 million, pre-tax, was recorded.
The balance of the workforce reduction costs and retail store closing liabilities are included in the Consolidated Balance Sheet within
accrued expenses and other current liabilities and other non-current liabilities.
The following table details the associated liabilities incurred related to the Technology Products segments special charges (in millions):
Corporate and other segment incurred $0.1 million of special charges related to severance costs in the year.
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Table of Contents
December 31,
2014 2013
Warehouse capitalized equipment lease
$
2.2
$
4.1
Other capitalized equipment lease
1.4
1.3
Subtotal
3.6
5.4
Less: current portion
2.7
2.5
$
0.9
$
2.9
2015
2016
2017
2018
2019
Maturities
$
2.7
$
0.6
$
0.3
$
-
$
-
Workforce
Reductions and
Personnel Costs
Other Exit
Costs
Total
Balance January 1, 2014
$
7.0
$
5.1
$
12.1
Charged to expense
11.7
0.1
11.8
Paid or otherwise settled
(14.0
)
(5.2
)
(19.2
)
Balance December 31, 2014
$
4.7
$
-
$
4.7