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APPENDIX C
C-17 STAPLES Form 10-K
STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
NOTE D — SALE OF BUSINESSES AND ASSETS
During 2015, the Company sold certain real estate properties
and other property and equipment, as well as a small business
unit in Australia. The company recognized a net loss of $5
million in 2015 related to these sales.
During the first quarter of 2014, the Company completed
the sale of its Smilemakers, Inc. business unit, recognizing
a gain of $23 million. Smilemakers, Inc. was a component
of the Company’s North American Commercial segment.
The Company also completed the sale of a small business
in Europe in the first quarter of 2014 and the sale of a small
U.S. business that was a component of the Company’s North
American Commercial segment in the third quarter of 2014,
recognizing a $2 million loss and a $6 million gain on the
sales, respectively.
On October 5, 2013, the Company completed the sale of
PSD, recognizing a preliminary loss on disposal of $81 million
in 2013 that was subject to the impact of a working capital
adjustment to the purchase price. The amount of the working
capital adjustment is in dispute between the parties in the
transaction. See Note I - Commitments and Contingencies for
an update on the status of this dispute.
The loss on disposal was included in Loss from discontinued
operations, net of income taxes in the consolidated statements
of income. The following table details PSD’s results of
operations for 2013, which has been reported in discontinued
operations (in millions):
35 Weeks Ended
October 5, 2013
Sales $199
Loss from discontinued operations, before income taxes
(including loss on disposal of $81 million in 2013) (88)
Income tax benefit (1)
Loss from discontinued operations, net of income taxes $(87)
NOTE E — ACCRUED EXPENSES AND OTHER CURRENT
LIABILITIES
The major components of Accrued expenses and other current liabilities are as follows (in millions):
January 30, 2016 January 31, 2015
Taxes $201 $235
Employee related 357 416
Acquisition and restructuring reserves 131 123
Advertising and marketing 70 96
Other 594 460
Total $1,353 $1,330
NOTE F — DEBT AND CREDIT AGREEMENTS
The major components of the Company’s outstanding debt are as follows (in millions):
January 30, 2016 January 31, 2015
January 2018 Notes $498 $497
January 2023 Notes 496 496
Other lines of credit 2 77
Capital lease obligations and other notes payable 39 40
1,035 1,110
Less: current portion (17) (92)
Net long-term debt $1,018 $1,018