Office Depot 2012 Annual Report Download - page 165

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The accompanying consolidated financial statements of the Company are prepared in accordance with MFRS, which may vary
in certain significant respects from U.S. GAAP. Note 3 to the accompanying consolidated financial statements summarizes the
accounting policies adopted by the Company. The principal differences between MFRS and U.S. GAAP as they affect the
Company’s consolidated net income, consolidated stockholders’ equity, presentation of consolidated financial information and
the relevant disclosures are summarized below:
23
18. Differences between MFRS and accounting principles generally accepted in the United States of America (“U.S. GAA
P
”)
2012 2011 2010
(Unaudited)
Consolidated net income under MFRS
$819,662
$728,262
$777,116
(i) Elimination of effects of inflation
24,056
30,57
0
25,467
(ii) Em
p
lo
y
ee retirement obli
g
ations
972
(485)
2,209
(iii) Rent holida
y
s
(9,251) 411
(4,664)
(v) Deferred PTU asset
(4) 79
(1,018)
Total U.S. GAAP ad
j
ustments
15,773
30,575
21,994
(vi) Deferred income tax effects on U.S. GAAP ad
j
ustments
(3,569)
22,927
(5,412)
Consolidated net income under U.S. GAAP
$831,866
$781,764
$ 793,698
2012 2011
Consolidated stockholders’ e
q
uit
y
under MFRS (1)
$6,608,947
$5,825,437
(i) Elimination effects of inflation
(422,222)
(449,849)
(ii) Chan
g
e in em
p
lo
y
ee retirement obli
g
ations
967 1,392
(iii) Rent holidays
(48,719)
(39,600)
(iv) Amortization of
g
oodwill
13,812
13,812
(v) Deferred PTU asset
(808)
(798)
Total U.S. GAAP ad
j
ustments
$(456,970) $(475,043)
(vi) Deferred income tax effects on U.S. GAAP ad
j
ustments
135,183 140,543
Consolidated stockholders’ e
q
uit
y
under U.S. GAAP
$6,287,160
$5,490,937
(1) Individual adjustments to the accompanying reconciliation of stockholders’ equity include the effects of translation of
forei
g
n o
p
erations whose functional currenc
y
is different from the Mexican
p
eso.
(i)
E
limination of the effects of inflation
—
Through December 31, 2007, MFRS required the recognition of the
comprehensive effects of inflation on consolidated financial information. Beginning January 1, 2008, MFRS only
requires the recognition of the effects of inflation for entities that operate in an inflationary environment (one whose
cumulative inflation for the preceding three-year periods equals or exceeds 26%). Since that date, Mexico has
ceased to be an inflationary economic environment. However assets and stockholders’ equity under MFRS include
the effects of inflation recognized through December 31, 2007. The elimination of the effects of inflation on
individual line items in the consolidated balance sheets under MFRS are as follows:
2012 2011
Pro
p
ert
y
, e
q
ui
p
ment and leasehold im
p
rovements
$407,875
$435,386
Intan
g
ible assets
45
0
566
Goodwill
13,897
13,897
Total ad
j
ustment
$422,222
$449,849