| |
| 1. |
Organization and Summary of Significant
Accounting Policies |
Description of Business
As
of December 31, 2002, SCP Pool Corporation and its wholly-owned
subsidiaries (the Company, which may be referred to as SCP,
we, us or our), maintained 185 service centers
in North America and Europe from which we sell swimming pool equipment,
parts and supplies to pool builders, retail stores and service companies.
We distribute products through two national networks: The SCP network
and the Superior Pool Products (SPP) network.
Net
sales by geographic region were as follows (in thousands):
| |
|
|
|
|
| |
|
|
|
2002
|
|
|
2001
|
|
|
2000
|
|
|
| United States |
|
|
$ |
945,357 |
|
$ |
833,939 |
|
$ |
653,251 |
|
| International |
|
|
|
37,889 |
|
|
20,295 |
|
|
19,022 |
|
|
| |
|
|
$ |
983,246 |
|
$ |
854,234 |
|
$ |
672,273 |
|
|
Property and equipment by geographic region were
as follows (in thousands):
| |
|
|
|
|
| |
|
|
|
2002
|
|
|
2001
|
|
|
2000
|
|
|
| United States |
|
|
$ |
19,996 |
|
$ |
15,275 |
|
$ |
8,841 |
|
| International |
|
|
|
925 |
|
|
569 |
|
|
388 |
|
|
| |
|
|
$ |
20,921 |
|
$ |
15,844 |
|
$ |
9,229 |
|
|
Basis
of Presentation and Principles of Consolidation
We
prepared the consolidated financial statements following accounting
principles generally accepted in the United States (GAAP) and the
requirements of the Securities and Exchange Commission (SEC). The
financial statements include all normal and recurring adjustments
that are necessary for a fair presentation of our financial position
and operating results.
The
consolidated financial statements include the accounts of SCP Pool
Corporation and our wholly-owned subsidiaries. We eliminated all
significant intercompany accounts and transactions.
Use
of Estimates
In
order to prepare financial statements that conform to GAAP, we make
estimates and assumptions that affect the amounts reported in our
financial statements and accompanying notes. Our most significant
estimates are those relating to the allowance for doubtful accounts
and the inventory reserve. We continually review our estimates and
make adjustments as necessary, but actual results could be significantly
different from what we expected when we made these estimates.
Segment
Reporting
Financial
Accounting Standards Board (FASB) Statement of Financial Accounting
Standards (SFAS) 131, Disclosures about Segments of an Enterprise
and Related Information, establishes standards for the way that
public companies report information about operating segments in
annual financial statements and establishes standards for related
disclosures about products and services, geographic areas and major
customers. We have reviewed SFAS 131 and determined that we have
a single reportable segment.
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