CompUSA 2014 Annual Report Download - page 31

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 April 2014, the FASB issued ASU 2014-08, “
Presentation of Financial Statements and Property, Plant and Equipment: Reporting
Discontinued Operations and Disclosures of Disposals of Components of an Entity”.
This ASU provides new guidance related to the definition
of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the
definition of a discontinued operation. This new guidance is effective for annual periods beginning on or after December 15, 2014 and interim
periods within those years. Beginning in 2015, the Company will apply this new guidance, as applicable.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”.
This ASU provides new guidance related to how an
entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those goods and services. In addition, this ASU specifies new accounting for costs
associated with obtaining or fulfilling contracts with customers and expands the required disclosures related to revenue and cash flows from
contracts with customers. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15,
2016, and can be adopted either retrospectively to each reporting period presented or as a cumulative effect adjustment as of the date of the
adoption, with early application not permitted. The Company is currently determining its implementation approach and assessing the impact, if
any, on the condensed consolidated financial statements.
Highlights from 2014
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.
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Table of Contents
• Consolidated sales increased 2.7% to $3.4 billion; on a constant currency basis and excluding SCC Services, sales increased 0.6%.
• B2B channel sales increased 8.9% to $2.6 billion; on a constant currency basis and excluding SCC Services, sales increased 5.6%.
• B2C channel sales declined 11.7% to $0.9 billion; on a constant currency basis, sales declined 11.0%.
•
Movements in exchange rates positively impacted European sales by approximately $24.0 million and negatively impacted Canadian
sales by approximately $13.8 million.
• $11.7 million in estimated workforce reductions related to the restructuring of our European operations were recorded.
• Impairment charges related to long-lived and other intangible assets of $10.0 million, pre-tax, were incurred.