Circuit City 2005 Annual Report Download - page 48

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* As previously restated – see Note 2.
See notes to consolidated financial statements
SYSTEMAX INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003
Income taxes payable/receivable
527
6,335
(3,915
)
Accounts payable, accrued expenses and other current liabilities
(8,624
)
Net cash provided by (used in) operating activities
(6,607
)
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Investments in property, plant and equipment
(5,896
)
(8,583
)
(7,123
)
Proceeds from disposals of property, plant and equipment
103
247
11
Purchase of minority interest
(2,560
)
Net cash used in investing activities
(5,793
)
(8,336
)
(9,672
)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Proceeds (repayments) of borrowings from banks
(5,254
)
(2,951
)
Repayments of long
-
term debt and capital lease obligations
(9,978
)
(1,768
)
(1,299
)
Issuance of common stock
780
269
419
Net cash provided by (used in) financing activities
4,691
(6,753
)
(3,831
)
EFFECTS OF EXCHANGE RATES ON CASH
791
(114
)
(4,183
)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(2,445
)
(24,293
)
CASH AND CASH EQUIVALENTS
-
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS
-
END OF YEAR
$70,925
$36,257
$38,702
Supplemental disclosures:
Interest paid
Income taxes paid
$15,522
$13,840
Supplemental disclosures of non
-
cash investing and financing activities:
Acquisitions of equipment through capital leases
--
--
$
1,576
Deferred stock
-
based compensation related to restricted unit stock
granted
--
$
5,740
--
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.” The
Company previously used the equity method of accounting for this investment. The results of operations of this
investee are not material to the consolidated results of operations of the Company.
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