Radio Shack 2003 Annual Report Download - page 34

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RADIOSHACK 2003 Annual Report
32
However, we have no reason to believe that CompUSA or
the other assignees will not fulfill their obligations under
these leases; consequently, we do not believe there will
be a material impact on our financial statements from
any fulfillment of these commitments.
Off-Balance Sheet Arrangements
Other than the operating leases described above, we do
not have any off-balance sheet financing arrangements,
transactions, or special purpose entities.
Inflation
Inflation has not significantly impacted us over the past
three years.We do not expect inflation to have a
significant impact on our operations in the foreseeable
future, unless international events substantially affect
the global economy.
The first table below contains the contractual commit-
ments associated with our financing obligations, lease
obligations, and marketing agreements. Purchase obliga-
tions include our product commitments, marketing
agreements, utility and freight commitments.
We have contingent liabilities related to retail leases of
locations which were assigned to other businesses. The
majority of these contingent liabilities relate to various
lease obligations arising from leases that were assigned to
CompUSA, Inc. as part of the sale of our Computer City, Inc.
subsidiary to CompUSA, Inc. in August 1998. In the event
CompUSA or the other assignees, as applicable, are unable
to fulfill their obligations, we would be responsible for
rent due under the leases. Our rent exposure from the
remaining undiscounted lease commitments with no pro-
jected sublease income is approximately $183 million.
Payments Due by Period
(In millions)
Total Amounts
Less than Over
Contractual Obligations Committed 1 year 1-3 years 3-5 years 5 years
Long-term debt obligations $ 582.9 $ 39.5 $ 37.4 $155.0 $351.0
Capitalized lease obligations 0.3 0.2 0.1 — —
Operating lease obligations 695.4 183.7 279.7 137.0 95.0
Purchase obligations 467.7 436.8 24.2 6.7 —
Other long-term liabilities reflected on the balance sheet 75.2 7.4 22.9 8.4 36.5
$1,821.5 $667.6 $364.3 $307.1 $482.5
The table below contains our credit commitments from various financial institutions.
Commitment Expiration per Period
(In millions)
Total Amounts
Less than Over
Credit Commitments Committed 1 year 1-3 years 3-5 years 5 years
Lines of credit $600.0 $300.0 $300.0 — —
Stand-by letters of credit 12.7 2.4 10.3 — —
Total credit commitments $612.7 $302.4 $310.3 — —