CPU gets a $40,000,000 rebate.
You have to hand it to CPU management. Not only have they managed to turn all the remaining Computer City stores around, they even managed to knock 20% off the purchase price!
From the 9/23/98 10-K:
On August 31, 1998, the Company completed its acquisition of Computer City,
Inc. ("Computer City") from Tandy Corporation for approximately $211 million,
payable in a note and cash. The purchase price is subject to certain
post-closing adjustments based on the completion of an audit of Computer City's
balance sheet as of the closing date.
From the 11/10/98 10-Q:
On August 31, 1998, the Company completed its acquisition of
Computer City, Inc. ("Computer City") from Tandy Corporation ("Tandy"), for
an initial purchase price of $211 million, payable in a note and cash. The
purchase price is subject to certain post-closing adjustments based on the
completion of an audit of Computer City's balance sheet as of the closing
date. Based upon the preliminary balance sheet of Computer City as of the
closing date, the Company has recorded a receivable of approximately $39
million from Tandy for the excess of the consideration paid at closing over
the purchase price due in accordance with the provisions of the purchase
agreement, resulting in a revised purchase price of approximately $172
million. Such receivable is included in prepaid expenses and other in the
accompanying balance sheet. |
