CompUSA 2013 Annual Report Download - page 29

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Recently Adopted and Newly Issued Accounting Pronouncements
Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial
Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”).
These authorities issue numerous
pronouncements, most of which are not applicable to the Company’
s current or reasonably foreseeable operating structure. Below are the new
authoritative pronouncements that management believes are relevant to the Company’s current operations.
In July 2013, the FASB issued ASU No. 2013-11,
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a
Similar Tax Loss, or Tax Credit Carryforward Exists
. This ASU requires entities to present an unrecognized tax benefit, or a portion of an
unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit
carryforward when under the tax law settlement in this manner is available. This ASU is effective prospectively for fiscal years, and interim
periods within those years, beginning after December 15, 2013. The Company is evaluating the impact, if any, of the ASU on the financial
statements.
Highlights from 2013
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.
25
Table of Contents
• Sales declined 5.4%, 5.6% on a constant currency basis, to $3.4 billion in 2013 compared to 2012.
• B2B channel sales increased 2.3%, 2.0% on a constant currency basis, to $2.2 billion in 2013 over 2012.
• B2C channel sales declined 16.8%, 16.7% on a constant currency basis, to $1.2 billion in 2013 compared to 2012.
•
Movements in exchange rates positively impacted European sales by approximately $12.1 million and negatively impacted
Canadian sales by approximately $6.2 million.
•
Expended $5.9 million in workforce reductions and other exit costs related to the European shared services center
implementation and other European workforce reductions.
• Closed retail stores resulting in charges for lease costs and severances of approximately $7.5 million.
• Write off of $2.9 million related to intangible assets of the CompUSA brand that was sold.
•
Net asset write downs of $1.0 million related to the exit from the PC manufacturing business.