Office Depot 2005 Annual Report Download - page 27
Download and view the complete annual report
Please find page 27 of the 2005 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.2
)),
&
('(3
2
7$11
8
$/5(3
2
57
R
I
ZDV
$W'HFHPEHUZHKDGD
SS
UR[L
P
DWHO\
PLOOLRQRIDYDLODEOHFUHGLWXQGHURXUUHYROYLQJFUHGLW
I
DFLOLW
\
WKDWLQFOXGHVFRYHUD
J
HRIPLOOLRQRIRXWVWDQGLQ
J
OHW
WHUVRIFUHGLW:HKDGDQDGGLWLRQDO
PLOOLRQRIOHWWHUVRIFUHGLW
RXWVWDQGLQJXQGHUDVHSDUDWHWUDGHDJUHHPHQW
:
HDUHLQFRPSOLDQFHZLWKDOOUHVWULFWLYHFRYHQDQWVLQFOXGHGLQRXU
G
H
E
WD
J
UHHPHQWV
:
H FRQWLQXDOO
\
UHYLHZ RXU ILQDQFLQ
J
RSWLRQV$OWKRX
J
K ZH FXU
U
HQWO\DQWLFLSDWHWKDWZHZLOO
I
XQGRXURSHUDWLRQVH[SDQVLRQ
DQGRWKHUDFWLYLWLHVWKURXJKFDVKRQKDQGIXQGVJHQHUDWHGIURP
RSHUDWLRQV SURSHUW
\
DQGHTXLSPHQWOHDVHVDQGIXQGVDYDLODEOH
X
QGHURXUFUHGLW
I
DFLOLWLHVZHPD\FRQVLGHUDOWHUQDWLYH
I
LQDQFLQJ
DVDSSURSULDWH
I
RUPDUNHWFRQGLWLRQV
:
HKDYHQHYHUSDLGDFDVKGLYLGHQGRQRXUFRPPRQVWRFN:KLOH
RXU ERDUG RI GLUHFWRUV UH
J
XODUO
\
DVVHVVHV RXU GLYLGHQG SROLF
\
W
K
HUHDUHQRFXUUHQW
SO
DQVWR
G
HF
O
DUHD
GL
Y
LG
HQ
G
&
DVKSURYLGHGE\
XVHGLQ
RXURSHUDWLQJLQYHVWLQJDQG
I
LQDQFLQJ
DFWLYLWLHVLVVXPPDUL]HGDV
I
ROORZV
'ROODUVLQPLOOLRQV
2
SHUDWLQJDFWLYLWLH
V
,
QYHVWLQJDFWLYLWLHV
)
LQDQFLQJDFWLYLWLHV
2
SHUDWLQ
J
$FWLYLWLHV
7KH FKDQJH LQ FDVK
I
ORZ
I
URP RSHUDWLQJ DFWLYLWLHV GXULQJ
U
HIOHFWVLQFUHDVHGFRQWULEXWLRQIURPWKHFRUHEXVLQHVVDIWHUFRQ
V
LGHULQ
J
QRQFDVK HOHPHQWV RI WKH &KDU
J
HV DQG QRQFDVK
HTXLW\ FRPSHQVDWLRQ R
II
VHWE\WKHUHGXFWLRQR
I
WUDGHSD\DEOHV
DQGSD\PHQWRIWD[HV$GGLWLRQDOO\ZLWKWKHDGRSWLRQRI)$65
WKHSUHVHQWDWLRQRIWD[EHQHILWVUHFHLYHGIURPWKHH[HUFLVHRI
V
WRFN R
S
WLRQVLQH[FHVV R
I
WKHWD[EHQH
I
LWRQ WKHLUHVWLPDWHG
I
DLU
Y
DOXHKDVFKDQJHGIURPDFRPSRQHQWRIRSHUDWLQJDFWLYLWLHVWRD
FRPSRQHQW RI ILQDQFLQ
J
DFWLYLWLHV LQ WKH VWDWHPHQW RI FDVK IORZV
I
RU
2
SHUDWLQJ FDVK
I
ORZ LQ LQFOXGHV WKH LPSDFW R
I
K
LJKHUDFFRXQWVUHFHLYDEOHEDODQFHVIURPLQFUHDVHGIRXUWKTXDU
WHUVDOHVFRPSDUHGWR
DVZHOODVDQLQFUHDVHLQUHFHLYDEOHV
I
URP YHQGRUV 7KH KLJKHU YROXPH R
I
SXUFKDVHV
I
LQDOL]HG DW WKH
HQGRIWKH\HDUDORQJZLWKWKHLQFUHDVHLQSURPRWLRQDODFWLYLW\
FR
QWUL
EX
W
HG
W
R
WK
H
LQ
F
U
HDVH
LQU
HFH
LY
DE
O
HV
IU
R
P
RX
UY
H
Q
GR
U
V
FR
P
S
DUHGWR
,
QYHVWLQJ$FWLYLWLHV
'XULQJZHLQYHVWHG
PLOOLRQLQFDSLWDOH[SHQGLWXUHV
7KLV DFWLYLW
\
LQFOXGHV WKH RSHQLQ
J
UHORFDWLQ
J
DQGUHPRGHOLQ
J
RI
UHWDLOVWRUHVLQ1RUWK$PHULFDDVZHOODVZDUHKRXVHORJLVWLFVDQG
L
QIUDVWUXFWXUH LPSURYHPHQWV LQ WKH ,QWHUQDWLRQDO 'LYLVLRQ 7KH
FDSLWDOH[SHQGLWXUHVLQ1RUWK$PHULFDLQFOXGHPLOOLRQ
W
RDF
T
XLUHUHWDLOVWRUHORFDWLRQVLQDQDVVHW
S
XUFKDVHWUDQVDFWLRQ
:H DOVR DFTXLUHG UHWDLO VWRUHV LQ +XQJDU\ WKDW KDG RSHUDWHG DV
2IILFH'HSRWVWRUHVXQGHUDOLFHQVLQ
J
D
J
UHHPHQWLQWKDWFRXQWU
\
,QYHVWLQ
J
DFWLYLWLHVIRULQFOXGHDSSUR[LPDWHO
\
PLOOLRQIR
U
S
D\PHQWVPDGHLQFRQQHFWLRQZLWKRXU(XURSHDQDFTXLVLWLRQQHW
R
I FDVK DFTXLUHG 6HH 1RWH 0 WR RXU &RQVROLGDWHG )LQDQFLDO
6WDWHPHQWVIRUDGGLWLRQDOGLVFXVVLRQRIWKHSXUFKDVHWUDQVDFWLRQ
,QYHVWLQJDFWLYLWLHVLQDQGDOVRLQFOXGH
PLOOLRQDQG
PLOOLRQUHVSHFWLYHO\LQYHVWHGLQDPXWXDOIXQGWKDWSULPDULO\
L
QYHVWVLQ86*RYHUQPHQWD
J
HQF
\
REOL
J
DWLRQV7KRVHIXQGVZHUH
OLTXLGDWHG LQ UHVXOWLQJ LQ D QHW LQFUHDVH R
I
DSSUR[LPDWHO\
PLOOLRQWRFDVKDQGFDVKHTXLYDOHQWV
)
LQDQFLQJ$FWLYLWLHV
7KH2IILFH'HSRWERDUGRIGLUHFWRUVKDVDXWKRUL]HGRSHQPDUNHW
S
XUFKDVHVR
I
WKHFRPSDQ\¶VFRPPRQVWRFNXQGHUYDULRXVUHSXU
FKDVHSODQVWKDWZHUHLQH
II
HFWGXULQJWKHWKUHH\HDUVWKURXJK
8QGHU WKH DSSURYHG SODQV ZH SXUFKDVHG
PLOOLRQ
V
KDUHV LQ DW D FRVW RI
PLOOLRQ
PLOOLRQVKDUHVLQ
DWDFRVWRI
PLOOLRQDQGPLOOLRQVKDUHVLQDW
D
FRVWRIPLOOLRQ7KHSXUFKDVHVFRPSOHWHGWKH
P
LOOLRQFRPPRQVWRFNUH
S
XUFKDVH
S
ODQ DXWKRUL]HG LQ
6
H
S
WHPEHU
DQG KDV XVHG
PLOOLRQ RI D
PLOOLRQ FRPPRQ
V
WRFNUHSXUFKDVHSODQDSSURYHGLQ2FWREHU3URFHHGVIURP
L
VVXDQFH R
I
FRPPRQ VWRFN XQGHU RXU HPSOR\HH UHODWHG SODQV
ZHUHPLOOLRQLQPLOOLRQLQDQGPLO
OLRQLQ
,Q'HFHPEHUZHUHGHHPHGWKHHQWLUHLVVXHRIRXUPLO
OLRQVHQLRUVXERUGLQDWHGQRWHV
S
XUVXDQWWRWKHR
S
WLRQDOUHGHP
S
WLRQ
S
URYLVLRQV RI WKH VXERUGLQDWHG QRWHV LQGHQWXUH 7KH SD\PHQW RI
D
SSUR[LPDWHO
\
PLOOLRQLQFOXGHGWKH SULQFLSDODFFUXHGLQWHU
H
VWWRWKHWHUPLQDWLRQGDWH
DQGFRQWUDFWXDOLQWHUHVW
GLVFRXQWHGDW
W
KHDSSURSULDWH867UHDVXU\UDWHSOXVEDVLVSRLQWV
,Q$XJXVWZHLVVXHGPLOOLRQRIVHQLRUQRWHVGXH
$
X
J
XVW6LPXOWDQHRXVZLWKFRPSOHWLQ
J
WKHRIIHULQ
J
ZHOLTXL
G
DWHGDWUHDVXU\UDWHORFN7KHSURFHHGVDUHEHLQJDPRUWL]HGRYH
U
W
KHWHUPRIWKHQRWHVUHGXFLQJWKHHIIHFWLYHLQWHUHVWUDWHWR