FORM 10-K/A GAMCO Investors, Inc. - Gabelli

Shelf Registration
On December 28, 2001, we filed a “shelf” registration statement registering $400 million in aggregate amount of debt and other securities. The issuance of the mandatory
convertible securities used $180 million and the issuance of the 5.5% Senior Notes used $100 million of the shelf registration leaving $120 million for future use. Such securities
may be issued as debt securities, trust preferred securities or class A common stock.
In May 2006, the SEC declared effective the Company’s $400 million “shelf” registration statement on Form S-3. This provides us flexibility to sell any combination of senior and
subordinate debt securities, convertible debt securities and equity securities (including common and preferred securities) up to a total amount of $520 million, which includes the
remaining $120 million available under our shelf registration filed in 2001.
G. Capital Lease
We lease office space from an entity controlled by members of the Chairman’s family. We have recorded a capital lease asset and liability for the fair value of the leased
property. The lease provides that all operating expenses relating to the property (such as property taxes, utilities and maintenance) are to be paid by the lessee, GBL. Accumulated
amortization on the leased property was approximately $1,994,000 and $2,241,000 at December 31, 2005 and 2006, respectively.
Future minimum lease payments for this capitalized lease at December 31, 2006 are as follows:
(In thousands)
2007 $ 856
2008 765
2009 765
2010 765
2011 765
Thereafter 1,020
Total minimum obligations 4,936
Interest 2,136
Present value of net obligations $ 2,800
Lease payments under this agreement amounted to approximately $772,000, $802,000 and $834,000 for each of the years ended December 31, 2004, 2005 and 2006,
respectively. The capital lease contains an escalation clause tied to the change in the Consumer Price Index which may cause the future minimum payments to exceed $765,000
annually. Future minimum lease payments have not been reduced by related minimum future sublease rentals of approximately $222,000, of which approximately $95,000 is due
from an affiliated entity. Total minimum obligations exclude the operating expenses to be borne by us, which are estimated to be approximately $740,000 per year.
H. Commitments
We rent office space under leases which expire at various dates through January 2009. Future minimum lease commitments under these operating leases as of December 31, 2006
are as follows:
(In thousands)
2007 $ 242
2008 35
2009 1
$ 278
Equipment rentals and occupancy expense amounted to approximately $1,752,000, $2,662,000 and $2,722,000, respectively, for the years ended December 31, 2004, 2005 and
2006.
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