CompUSA 2012 Annual Report Download - page 26

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Recently Adopted and Newly Issued Accounting Pronouncements
Public companies in the United States are subject to the accounting and reporting requirements of various authorities, including the Financial
Accounting Standards Board (“FASB”) and the Securities and Exchange Commission (“SEC”). These authorities issue numerous
pronouncements, most of which are not applicable to the Company’s current or reasonably foreseeable operating structure. Below are the new
authoritative pronouncements that management believes are relevant to the Company’s current operations.
In July 2012, the FASB issued an update related to annual impairment testing for indefinite-lived intangible assets which provides companies
with the option to perform a qualitative impairment assessment for their indefinite-lived intangible assets that may allow them to skip the annual
fair value calculation. The qualitative assessment is similar to the screen companies can use to determine whether they must perform the two-
step goodwill impairment test. Companies must identify and evaluate changes in economic, industry and company-specific events and
circumstances that could affect the significant inputs used in determining the fair value of these assets. This ASU is effective for annual and
interim impairment tests performed for fiscal years beginning after September 15, 2012.
In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income . ASU 2011-05
eliminates the option to report other comprehensive income and its components in the statement of changes in shareholders’ equity and requires
that all items of net income, items of other comprehensive income and total comprehensive income be presented in either a single continuous
statement of comprehensive income or in two separate but consecutive statements. The Company adopted this ASU in the first quarter of 2012.
The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.
Highlights from 2012
The discussion of our results of operations and financial condition that follows will provide information that will assist in understanding our
financial statements and information about how certain accounting principles and estimates affect the consolidated financial statements. This
discussion should be read in conjunction with the consolidated financial statements included herein.
Table of Contents
•
Sales declined 3.7%, 1.9% on a constant currency basis, to $3.5 billion in 2012 compared to 2011.
•
Business to business channel sales grew 5.1%, 8.0% on a constant currency basis, to $2.1 billion in 2012 over 2011.
•
Consumer channel sales declined 14.0%, 13.7% on a constant currency basis, to $1.5 billion in 2012 compared to 2011.
• Movements in exchange rates negatively impacted European sales by approximately $57.6 million and Canadian sales by
approximately $7.1 million.
• Special one-time asset impairment charges of $35.3 million related to intangible assets and goodwill of CompUSA and Circuit
City.
•
Special one-time asset write downs of $4.6 million related to the exit from the PC manufacturing business.
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