Circuit City 2010 Annual Report Download - page 9

Software Solutions
In June 2009, the Company announced plans to exit the Software Solutions segment as the result of economic conditions and difficulties in
marketing the segment’s products successfully (See Note 7 to the Consolidated Financial Statements included in Item 15 of this Form 10-K).
The Software Solutions segment participated in the emerging market for on-demand, web-based business software applications through the
marketing of its PCS ProfitCenter Software ™ application. Substantially all of the third party business activities of the Software Solutions
segments ended as of December 31, 2009. Current and prior year results of Software Solutions are now included in ‘Corporate and other”.
Employees
As of December 31, 2010, we employed a total of approximately 5,600 employees, of whom 4,200 were in North America and 1,400 were in
Europe.
Seasonality
As the Company’s consumer channel sales have grown significantly in the past few years, the fourth quarter has represented a greater portion of
annual sales than historically. Net sales have historically been modestly weaker during the second and third quarters as a result of lower business
activity during those months. See Item 7, Management’s Discussions and Analysis of Financial Condition and Results of Operations;
Seasonality.
Environmental Matters
Under various national, state and local environmental laws and regulations in North America and Western Europe, a current or previous owner
or operator (including the lessee) of real property may become liable for the costs of removal or remediation of hazardous substances at such real
property. Such laws and regulations often impose liability without regard to fault. We lease most of our facilities. In connection with such leases,
we could be held liable for the costs of removal or remedial actions with respect to hazardous substances. Although we have not been notified of,
and are not otherwise aware of, any material real property environmental liability, claim or non-compliance, there can be no assurance that we
will not be required to incur remediation or other costs in connection with real property environmental matters in the future.
Financial Information About Foreign and Domestic Operations
We conduct our business in North America (the United States, Puerto Rico and Canada) and Europe. Approximately 35.9%, 33.5% and 37.9%
of our net sales during 2010, 2009 and 2008, respectively were made by subsidiaries located outside of the United States. For information
pertaining to our international operations, see Note 11, “Segment and Related Information,”
to the Consolidated Financial Statements included in
Item 15 of this Form 10-K. The following sets forth selected information with respect to our operations in those two geographic markets (in
thousands):
See Item 7, Management’s Discussions and Analysis of Financial Condition and Results of Operations, for further information with respect to
our operations.
North
America
Europe
Total
2010
Net sales
$
2,543,014
$
1,046,975
$
3,589,989
Operating income
$
47,739
$
21,006
$
68,745
Identifiable assets
$
665,686
$
228,414
$
894,100
2009
Net sales
$
2,317,475
$
848,520
$
3,165,995
Operating income
$
62,308
$
11,321
$
73,629
Identifiable assets
$
591,990
$
224,911
$
816,901
2008
Net sales
$
2,092,372
$
940,589
$
3,032,961
Operating income
$
62,513
$
21,099
$
83,612
Identifiable assets
$
552,459
$
149,994
$
702,453
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