Office Depot 2010 Annual Report Download - page 48

Download and view the complete annual report

Please find page 48 of the 2010 Office Depot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

NOTE F — GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
During the fourth quarter of 2008, we performed our annual goodwill impairment testing, which indicated that
the goodwill in four of our five reporting units was fully impaired. This resulted in impairment charges totaling
$1,213.3 million, most of which was related to acquisitions made in our International and North American
Business Solutions Divisions. Approximately $19.4 million of goodwill was not impaired during the fourth
quarter of 2008. This remaining goodwill is associated with our North American Business Solutions Division,
and the balance has remained constant since December 27, 2008. The components of goodwill by segment are
provided in the following table:
(Dollars in thousands)
North
American
Retail
Division
North
American
Business
Solutions
Division
International
Division Total
Balance as of December 27, 2008
Goodwill ....................................... $1,842 $ 367,790 $ 863,134 $ 1,232,766
Accumulated impairment losses .................... (1,842) (348,359) (863,134) (1,213,335)
— 19,431 — 19,431
2009 Changes ................................... — — — —
Balance as of December 26, 2009
Goodwill ..................................... 1,842 367,790 863,134 $ 1,232,766
Accumulated impairment losses .................. (1,842) (348,359) (863,134) (1,213,335)
— 19,431 — 19,431
2010 Changes
Balance as of December 25, 2010
Goodwill ..................................... 1,842 367,790 863,134 $ 1,232,766
Accumulated impairment losses .................. (1,842) (348,359) (863,134) (1,213,335)
$ — $ 19,431 $ — $ 19,431
Other Intangible Assets
Indefinite-lived intangible assets related to acquired trade names were $5.6 million and $6.2 million, at
December 25, 2010 and December 26, 2009, respectively, and are included in other intangible assets in the
Consolidated Balance Sheets. Indefinite-lived intangibles are not subject to amortization. Instead, they are tested
for impairment at least annually. The change in the balance during 2010 resulted from changes in foreign
currency rates.
Amortizing intangible assets, which are included in other intangible assets in the Consolidated Balance Sheets,
include the following:
December 25, 2010 December 26, 2009
(Dollars in thousands)
Gross
Carrying Value
Accumulated
Amortization
Gross
Carrying Value
Accumulated
Amortization
Customer lists ............................... $ 28,000 $ (11,773) $ 28,000 $ (9,228)
Other ...................................... 2,600 (2,600) 2,600 (2,302)
Total ...................................... $ 30,600 $ (14,373) $ 30,600 $ (11,530)
47