Circuit City 2006 Annual Report Download - page 34

Accounts payable, accrued expenses and other current liabilities 37,055 20,430 16,767
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Net cash provided by operating activities 34,326 27,345 12,758
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CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Investments in property, plant and equipment (6,701) (5,896) (8,583)
Proceeds from disposals of property, plant and equipment 18,938 103 247
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Net cash provided by (used in) investing activities 12,237 (5,793) (8,336)
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CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
(Repayments) proceeds of borrowings from banks (16,473) 13,889 (5,254)
Repayments of long-term debt and capital lease obligations (8,305) (9,978) (1,768)
Proceeds from issuance of common stock 1,602 780 269
Excess tax benefit from exercises of stock options 1,030 - -
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Net cash provided by (used in) financing activities (22,146) 4,691 (6,753)
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EFFECTS OF EXCHANGE RATES ON CASH (744) 791 (114)
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 23,673 27,034 (2,445)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 63,291 36,257 38,702
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CASH AND CASH EQUIVALENTS - END OF YEAR $86,964 $63,291 $36,257
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Supplemental disclosures:
Interest paid $1,861 $2,498 $3,385
Income taxes paid $26,465 $15,522 $4,676
Supplemental disclosures of non-cash investing and financing activities:
Acquisitions of equipment through capital leases $776 - -
Deferred stock-based compensation related to restricted unit stock -
granted - $5,740
* 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, 2006, 2005 AND 2004
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. Certain prior year balance sheet amounts have been
reclassified to conform to current year presentation.
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.
Fiscal Year
— The Company’s fiscal year ends on December 31. The Company’s North American computer business
follows a fiscal year that ends on the last Saturday of the calendar year. Normally each fiscal year consists of 52 weeks,
but every five or six years, their fiscal year consists of 53 weeks, which was the case in 2005. The sales recorded in the
additional week of 2005 represented less than one percent of the year’s sales. Fiscal years 2006 and 2004 consisted of
52 weeks for this business.
Foreign Currency Translation
— The financial statements of the Company’s foreign entities are translated into U.S.
dollars, the reporting currency, using year-end exchange rates for assets and liabilities, average exchange rates for the
statement of operations items and historical rates for equity accounts. The translation differences are recorded as a
separate component of shareholders
’
equity.
Cash and Cash Equivalents — The Company considers amounts held in money market accounts and other short-term