Circuit City 2006 Annual Report Download - page 31

REPORT OF DELOITTE & TOUCHE, LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of Systemax Inc.:
We have audited the accompanying consolidated statements of operations, shareholders’ equity, and cash flows of Systemax
Inc. and subsidiaries (the "Company") for the year ended December 31, 2004. Our audits also included the financial statement
schedule listed in the Index at Item 15 for the period ended December 31, 2004. These financial statements and financial
statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on the
financial statements and financial statement schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are appropriate in the circumstances but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the consolidated results of
operations and cash flows of Systemax Inc. and subsidiaries for the year ended December 31, 2004, in conformity with
accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement
schedule for year ended December 31, 2004, when considered in relation to the basic consolidated financial statements taken
as a whole, presents fairly, in all material respects, the information set forth therein.
As discussed in Note 2 to the consolidated financial statements, the accompanying consolidated financial statements had been
restated.
DELOITTE & TOUCHE LLP
New York, New York
April 13, 2005 (November 17, 2005 as to the effects of the restatement discussed in Note 2)
SYSTEMAX INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2006 AND 2005
(IN THOUSANDS, except for share data)
2006 2005
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ASSETS:
Current assets:
Cash and cash equivalents $86,964 $63,291
Accounts receivable, net of allowances of $11,370 (2006) and $12,508 (2005) 164,615 150,635
Inventories, net 233,136 192,102
Prepaid expenses and other current assets 26,919 15,877
Deferred income tax assets, net 7,727 9,227
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Total current assets 519,361 431,132
Property, plant and equipment, net 48,586 57,259
Deferred income tax assets, net 14,041 14,100
Other assets 2,173 2,053
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Total assets $584,161 $504,544
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Short-term borrowings, including current portions of long-term debt $12,788 $26,773
Accounts payable 201,486 171,667
Accrued expenses and other current liabilities 75,688 62,888
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Total current liabilities 289,962 261,328
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Long-term debt 483 8,028