CompUSA 2013 Annual Report Download - page 55

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We purchase substantially all of our products and components directly from manufacturers and large wholesale distributors. In 2013, one
vendor accounted for 13.9% of our purchases. In 2012, no vendor accounted for 10% or more of our purchases and one vendor accounted
for 11.5% of our purchases in 2011. The loss of these vendors, or any other key vendors, could have a material adverse effect on us.
Recent 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 Company’s current operations.
In July 2013, the FASB issued ASU No. 2013-11,
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward,
a Similar Tax Loss, or Tax Credit Carryforward Exists
. This ASU requires entities to present an unrecognized tax benefit, or a portion of an
unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit
carryforward when under the tax law settlement in this manner is available. This ASU is effective prospectively for fiscal years, and interim
periods within those years, beginning after December 15, 2013. The Company is evaluating the impact, if any, of the ASU on the financial
statements.
The Company consolidated its United States consumer brands under the TigerDirect name and recorded a one-time, non-
cash impairment
charge related to the goodwill and intangible assets of CompUSA and Circuit City of approximately $35.3 million, pre-
tax, in the fourth
quarter of 2012; however, the CompUSA brand continued to be used in Puerto Rico during 2013. In the fourth quarter of 2013, certain
subsidiaries of the Company sold certain CompUSA intellectual property assets (primarily domain names, trademarks and certain historical
customer information) and accordingly the Company has discontinued using the CompUSA brand in Puerto Rico and has rebranded its
operations there as TigerDirect. As a result of the sale, the Company wrote off the remaining carrying value of the CompUSA intangible
assets of approximately $2.9 million, pre-tax.
Goodwill :
The following table provides information related to the carrying value of goodwill (in millions):
During 2013, the Company did not incur any impairment charges related to goodwill. During 2012, the Company incurred one-
time
impairment charges related to goodwill of approximately $0.9 million. This impairment charge was recorded in the Consolidated Statement
of Operations as special charges within the Technology Products segment.
51
Table of Contents
2.
GOODWILL AND INTANGIBLES
December 31,
December 31,
2013
2012
Balance January 1
$
2.4
$
3.3
Impairment charges
-
(0.9
)
Balance December 31
$
2.4
$
2.4