CompUSA 2008 Annual Report Download - page 59

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to the requisite service having been rendered. The guidance in this FSP applies to the calculation of
Earnings Per Share (“EPS”) under Statement 128 for share-based payment awards with rights to
dividends or dividend equivalents. Unvested share-based payment awards that contain non-forfeitable
rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall
be included in the computation of EPS pursuant to the two-class method. This FSP is effective for
financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within
those years. All prior-period EPS data presented shall be adjusted retrospectively (including interim
financial statements, summaries of earnings, and selected financial data) to conform with the provisions
of this FSP. The Company does not expect the adoption of this FSP to have a material impact on its
consolidated financial statements.
In December 2007, the FASB issued SFAS No. 141R, “Business Combinations,” which replaces FASB
Statement 141. SFAS No.141R retains the requirement that the acquisition method of accounting be used
for business combinations. The objective of SFAS No. 141R is to improve the relevance, representational
faithfulness and comparability that reporting entities provide in their financial reports about business
combinations and their effects. SFAS No. 141R establishes principles and requirements for how an
acquirer 1) recognizes and measures identifiable assets acquired, the liabilities assumed and any non-
controlling interest in the acquiree, 2) recognizes and measures the goodwill acquired in the combination
or a gain from a bargain purchase and 3) determines what information to disclose to enable users of the
financial statements to evaluate the nature and financial effects of the business combination. SFAS No.
141R is effective for annual periods beginning after December 15, 2008 and will be applied prospectively
for all business combinations entered into after the date of adoption. The impact of SFAS No. 141R will
depend on the nature and terms of any future business combinations, if any.
In December 2007, the FASB issued SFAS No. 160, “Accounting and Reporting of Non-controlling
Interest”. The objective of SFAS No. 160 is to improve the relevance, comparability and transparency of
the financial information that reporting entities provide related to non-controlling interests, sometimes
referred to as minority interests. SFAS No. 160 requires, among other things, that non-controlling
interests be shown separately in the consolidated entity’ s equity section of the balance sheet. SFAS
No. 160 also establishes accounting and reporting standards for ownership interest in subsidiaries held by
parties other than the parent, for presentation of amounts of consolidated net income attributable to the
parent and the non-controlling interest, for consistency in accounting for changes in a parent’ s ownership
interest when the parent retains a controlling interest, for the valuation of retained non-controlling equity
interests when a subsidiary is deconsolidated and for providing sufficient disclosure that identifies and
distinguishes the interests of the parent and the interests of the non-controlling owners. SFAS No. 160 is
effective beginning January 1, 2009. The Company does not expect the adoption of SFAS No.160 to have
a material impact on its consolidated financial statements.
Highlights from 2008
The discussion of our results of operations and financial condition that follows will provide information
that will assist in understanding our financial statements and information about how certain accounting
principles and estimates affect the consolidated financial statements. This discussion should be read in
conjunction with the consolidated financial statements included herein.
Sales increase of 9% in 2008 over 2007
CompUSA.com and CompUSA retail contributed $226.3 million in sales
Movements in exchange rates positively impacted European and Canadian sales by
approximately $13 million and $5 million, respectively
Revenue growth slowed in the second half of 2008