Radio Shack 2003 Annual Report Download - page 55

RADIOSHACK 2003 Annual Report 53
Note 24 Preferred Share Purchase Rights
In July 1999, we amended and restated a stockholder rights
plan which declared a dividend of one right for each
outstanding share of our common stock.The rights plan, as
amended and restated, will expire on July 26, 2009.The
rights are currently represented by our common stock cer-
tificates.When the rights become exercisable, they will
entitle each holder to purchase 1/10,000th of a share of our
Series A Junior Participating Preferred Stock for an exercise
price of $250 (subject to adjustment).The rights will
become exercisable and will trade separately from the
common stock only upon the date of public announce-
ment that a person, entity or group (“Person”) has acquired
15% or more of our outstanding common stock without
the consent or approval of the disinterested directors
(“Acquiring Person”) or ten days after the commencement
or public announcement of a tender or exchange offer
which would result in any Person becoming an Acquiring
Person.In the event that any Person becomes an Acquiring
Person,the rights will be exercisable for 60 days thereafter
for our common stock with a market value (as determined
under the rights plan) equal to twice the exercise price.
In the event that, after any Person becomes an Acquiring
Person, we engage in certain mergers, consolidations, or
sales of assets representing 50% or more of our assets or
earning power with an Acquiring Person (or Persons acting
on behalf of or in concert with an Acquiring Person) or in
which all holders of common stock are not treated alike,
the rights will be exercisable for common stock of the
acquiring or surviving company with a market value (as
determined under the rights plan) equal to twice the exercise
price.The rights will not be exercisable by any Acquiring
Person.The rights are redeemable at a price of $0.01 per
right prior to any Person becoming an Acquiring Person or,
under certain circumstances, after a Person becomes an
Acquiring Person.
Note 25 Dividends Declared
We declared dividends of $0.25, $0.22 and $0.165 for the
years 2003, 2002 and 2001, respectively. On July 25, 2001,
we announced that we would pay cash dividends on an
annual, instead of quarterly, basis beginning in 2002.
Dividends declared in 2002 and thereafter have been paid
annually in December.
Note 26 Product Sales Information
Our net sales and operating revenues are summarized by
groups of similar products and services as follows:
Year Ended December 31,
(In millions) 2003 2002 2001
Wireless products and services $1,623.2 $1,419.9 $1,297.5
Home entertainment products
and services 737.9 855.2 1,121.4
Computer products 455.9 456.8 461.1
Power and technical products 634.1 623.9 618.9
Personal electronics,toys and
personal audio products 588.1 576.2 562.0
Wired and radio products and
other(1) 610.1 645.2 714.8
$4,649.3 $4,577.2 $4,775.7
(1) Other includes outside sales of our retail support operations,service plan
income and store repair income.
Note 27 Supplemental Cash Flow Information
Cash flows from operating activities included cash payments
as follows:
Year Ended December 31,
(In millions) 2003 2002 2001
Interest paid $ 35.0 $ 43.9 $ 48.4
Income taxes paid 153.5 160.2 171.2
Note 28 Related Party Transactions
In April 2002, we entered into a supply chain management
consulting agreement with a company affiliated with a
corporation whose chairman and chief executive officer is a
member of our Board of Directors and who currently
serves on the Corporate Governance and Management
Development and Compensation Committees of our
Board of Directors. Under this agreement, we incurred
approximately $1.8 million and $8.2 million in consulting
fees during the years ended December 31, 2003 and
2002, respectively.