Circuit City 2004 Annual Report Download - page 42

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Net cash provided by (used in) financing activities (6,753) (3,831) 33,784
------------- ------------- --------------
EFFECTS OF EXCHANGE RATES ON CASH (114) (4,183) 2,611
------------- ------------- --------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,445) (24,293) 26,531
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 38,702 62,995 36,464
------------- ------------- --------------
CASH AND CASH EQUIVALENTS - END OF YEAR $36,257 $38,702 $62,995
============= ============= ==============
Supplemental disclosures:
Interest paid $3,385 $2,697 $1,375
============= ============= ==============
Income taxes paid $4,676 $13,840 $5,397
============= ============= ==============
Supplemental disclosures of non-cash investing and financing activities:
Acquisitions of equipment through capital leases - $1,576 -
============= ============= ==============
45
Deferred stock-based compensation related to restricted unit stock
granted $5,740 - -
============= ============= ==============
See notes to consolidated financial statements
46
SYSTEMAX INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
- The accompanying consolidated financial statements include the accounts of
Systemax Inc. and its wholly-owned subsidiaries (collectively, the "Company" or "Systemax"). All significant
intercompany accounts and transactions have been eliminated in consolidation. The Company began
consolidating a 50%-owned joint venture in the first quarter of 2004 in accordance with Financial Accounting
Standards Board Interpretation 46 (Revised) ("FIN 46R"), "Consolidation of Variable Interest Entities (see
"Recent Accounting Pronouncements", below). The Company previously used the equity method of accounting
for this investment. The results of operations of this investee are not material to the results of operations of the
Company.
Certain items in the consolidated financial statements of prior years have been reclassified to conform to the
current year's presentation. Acquisitions of property, plant and equipment through capital leases on the
consolidated statement of cash flows for the year ended December 31, 2003 were reclassified from a cash flow
used in investing activities and a cash flow provided by financing activities to a non-cash investing and financing
activity.
Use of Estimates In Financial Statements -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.