Circuit City 2004 Annual Report Download - page 58

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60
Year Ended December 31,
-----------------------
2004 2003 2002
---- ---- ----
Net Sales:
----------
Computer products $1,776,517 $1,523,815 $1,414,455
Industrial products 151,630 131,921 137,481
------- ------- -------
Consolidated $1,928,147 $1,655,736 $1,551,936
========== ========== ==========
Depreciation expense:
---------------------
Computer products $9,081 $12,118 $11,493
Industrial products 1,789 1,555 1,965
Software application 178
Corporate 266 265 194
--- --- ---
Consolidated $11,314 $13,938 $13,652
======= ======= =======
Operating Income (Loss):
------------------------
Computer products $16,873 $9,574 $19,747
Industrial products 10,782 5,036 1,864
Software application (4,954) (2,501)
Corporate and other expenses (3,702) (2,959) (28,636)
------ ------ -------
Consolidated income (loss) from
operations $18,999 $9,150 $(7,025)
======= ====== =======
Year Ended December 31,
payable are considered to be representative of their respective fair values as their interest rates are based on
market rates. The estimated fair value of the Company's mortgage loan payable was $9.0 million at December 31,
2004 and $8.8 million at December 31, 2003.
Concentration of Credit Risk - Financial instruments that potentially subject the Company to concentrations of
credit risk consist of cash, cash equivalents and accounts receivable. Concentrations of credit risk with respect to
accounts receivable are limited due to the large number of customers and their geographic dispersion comprising
the Company's customer base.
12.
SEGMENT AND RELATED INFORMATION (As restated)
The Company operates in one primary business as a reseller of business products to commercial and consumer
users. The Company operates and is internally managed in two operating segments, Computer Products and
Industrial Products. The Company has also separately disclosed its costs associated with the development of the
Company's new web-hosted software application, for which no revenues have been recognized. The Company's
chief operating decision-maker is the Company's Chief Executive Officer. The Company evaluates segment
performance based on income from operations before net interest, foreign exchange gains and losses,
restructuring and other charges and income taxes. Corporate costs not identified with the disclosed segments and
restructuring and other charges are grouped as "Corporate and other expenses". The chief operating decision-
maker reviews assets and makes capital expenditure decisions for the Company on a consolidated basis only. The
accounting policies of the segments are the same as those of the Company described in Note 1.
Financial information relating to the Company's operations by reportable segment was as follows (in thousands):
Financial information relating to the Company's operations by geographic area was as follows (in thousands):