Memorex 2014 Annual Report Download - page 41

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See Note 4 - Acquisitions in our Notes to Consolidated Financial Statements for further information regarding
our acquisitions.
Cash Flows (Used in) Provided by Financing Activities:
Years Ended December 31,
2014 2013 2012
(In millions)
Purchase of treasury stock $ (2.5) $ (2.5) $ (6.5)
Debt issuance costs — (0.4) (2.4)
Debt borrowings 38.7 4.9 25.0
Debt repayments (39.2) (4.9) (5.0)
Contingent consideration payments — (0.5) (1.2)
Exercise of stock options 0.4 — —
Net cash (used in) provided by financing activities $ (2.6) $ (3.4) $ 9.9
On May, 2, 2012, our Board of Directors authorized a share repurchase program that allowed for the
repurchase of 5.0 million shares of common stock. The Company's previous authorization, which had 1.2 million
shares remaining for purchase, was canceled with the new authorization. Since the inception of this authorization,
we have repurchased 2.6 million shares of common stock at an average price of $4.43 per share and as of
December 31, 2014 we had remaining authorization to repurchase up to 2.4 million shares. We repurchased 0.8
million, 0.6 million and 1.2 million shares in 2014, 2013 and 2012, respectively.
No dividends were declared or paid during 2014, 2013 or 2012. Any future dividends are at the discretion of and
subject to the approval of our Board of Directors.
Cash used in financing activities included borrowings of $38.7 million, $4.9 million and $25.0 million and
repayments of $39.2 million, $4.9 million and $5.0 million during 2014, 2013 and 2012, respectively on our credit
facilities primarily for the use in financing our working capital seasonal needs. During 2014 we did not capitalize any
debt issuance costs.
Credit Facilities
As of December 31, 2014 and 2013, we had short-term borrowings of $18.9 million and $20.0 million,
respectively. The borrowings in 2014 were primarily from our credit agreements with various banks in the United
States, Europe, and Japan.
On March 30, 2006, we entered into a credit agreement with a group of banks (the Credit Agreement).
Subsequently, we entered into various amendments which, among other things, added Imation Europe B.V. as a
borrower (European Borrower).
On May 18, 2012, we entered into an amendment (the Amendment) to the Credit Agreement (as amended to
date, the Amended Credit Agreement). The Amendment modified the Credit Agreement by extending the expiration
date of the borrowing arrangement to May 18, 2017, requiring that the equity interests of material foreign
subsidiaries be pledged to support the obligations, if any, of the European Borrower, lowered the applicable margin
on interest, lowered the Company's minimum required Consolidated Fixed Charge Coverage Ratio (as defined in
the Amended Credit Agreement) to be maintained as well as provided for certain other less significant changes.
The Amended Credit Agreement includes a senior revolving credit facility that allows for the borrowing of
amounts up to a maximum of $170 million, including sublimits of $140 million in the United States and $30 million in
Europe. Borrowings in both the United States and Europe are limited to the lesser of the sublimit(s) and the
borrowing base as defined in the Amended Credit Agreement and are payable upon expiration of the Amended
Credit Agreement or immediately, but only to the extent the applicable sublimit(s) are reduced to an amount less
than the amount borrowed at that time. Our borrowing base is calculated each quarter unless our outstanding loan
amount is greater than $5.0 million in which our borrowing base is calculated monthly. Our borrowing base is based
on our amounts of receivables, inventories and other factors that influence the borrowing base and, to the extent
any outstanding borrowing exceeds the borrowing base, any such excess is due and payable immediately.
As of December 31, 2014, we had $8.0 million of borrowings outstanding under the Amended Credit
Agreement, all of which was borrowed in the United States and bore interest at a rate of 2.58 percent as of