RSH » Topics » Other Income

This excerpt taken from the RSH 10-Q filed Nov 4, 2005.

Other Income

During the first quarter of 2005, we sold all rights, title and interest to the “Tandy” name within Australia and New Zealand to an affiliate of Dick Smith Electronics, an Australia-based consumer electronics retailer. This transaction resulted in the recognition of $10.2 million in other income.

During the quarters ended September 30, 2005, and 2004, we received no payments and recorded no income under our tax sharing agreement with O’Sullivan Industries Holdings, Inc. (“O’Sullivan”). However, during the nine months ended September 30, 2004, we received payments and recorded income of $2.0 million under this agreement. During 2005 we received no payments from O’Sullivan. Future payments under the tax sharing agreement will vary based on the level of O’Sullivan’s future earnings and are also dependent on O’Sullivan’s overall financial condition and ability to pay. O’Sullivan filed a voluntary petition for Chapter 11 bankruptcy protection on October 14, 2005, with the U.S. Bankruptcy Court for the Northern District of Georgia in Atlanta, which could have an adverse effect on our right to receive future payments under the tax sharing agreement. We cannot give any assurances as to the amount or frequency of payment, if any, that we may receive from O’Sullivan in future periods.

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