Office Depot 2005 Annual Report Download - page 45
Download and view the complete annual report
Please find page 45 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
$/5(3
2
57
+
DGFRP
S
HQVDWLRQFRVW
I
RU DZDUGV XQGHU RXU VWRFNEDVHG FRP
S
HQVDWLRQ SODQV EHHQ GHWHUPLQHG XVLQJ WKH IDLU YDOXH PHWKRG
SUHVFULEHGE
\
6WDWHPHQWRI)LQDQFLDO$FFRXQWLQ
J
6WDQGDUG
³)$6´
1R
$
FFRXQWLQJ
I
RU
6
WRFN%DVHG
&
RPSHQVDWLRQDVDPHQGHG
ZHZRXOGKDYHUHFRJQL]HGDGGLWLRQDOFRPSHQVDWLRQH[SHQVH7KH
S
UHYLRXVO
\
GLVFORVHGSURIRUPDHIIHFWVDUHSUHVHQWHGEHORZ7KH
S
UR
I
RUPD DPRXQWV
I
RU UH
I
OHFW WKH LP
S
DFW
I
RU WKH
I
LUVW VL[
P
RQWKVRIWKH\HDUSULRUWRWKHDGRSWLRQRI)$65
,QWKRXVDQGVH[FHSWSHU
V
KDUHDPRXQWV
1
HWHDUQLQJV
$VUHSRUWH
G
3U
R
IR
UP
D
%
DV
L
FHDUQ
L
Q
J
VSHUV
K
DUH
$VUHSRUWH
G
3U
R
I
R
UP
D
'LOXWHGHDUQLQ
J
VSHUVKDUH
$
VUH
S
RUWH
G
3UR
I
RUPD
7KH
I
DLUYDOXHR
I
HDFKVWRFNRSWLRQJUDQWHGLVHVWDEOLVKHGRQWKH
GDWH RI WKH
J
UDQW XVLQ
J
WKH%ODFN6FKROHVRSWLRQSULFLQ
J
PRGHO
7KHZHLJKWHGDYHUDJH
I
DLUYDOXHVR
I
RSWLRQVJUDQWHGGXULQJ
DQGZHUH
DQG
UHVSHFWLYHO\XVLQJ
WKHIROORZLQ
J
ZHL
J
KWHGDYHUD
J
HDVVXPSWLRQVIRU
J
UDQWV
5LVN
I
UHHLQWHUHVWUDWHVR
I
I
RU
I
RU
DQG
IRU
([SHFWHGOLYHVRIDQG
\
HDUVIRU
UHVSHFW
L
YH
O
\
$GLYLGHQG\LHOGRI]HURIRUDOOWKUHH\HDU
V
([SHFWHGYRODWLOLW
\
UDQ
J
LQ
J
IURPWRIRUIRU
DQG
I
RU
5HYHQXH 5HFRJQLWLRQ 5HYHQXH LV UHFRJQL]HG DW WKH SRLQW R
I
V
DOHIRUUHWDLOWUDQVDFWLRQVDQGDWWKHWLPHRIVXFFHVVIXOGHOLYHU\
I
RUFRQWUDFWFDWDOR
J
DQG LQWHUQHW VDOHV :H XVH
M
XG
J
PHQW LQ
HVWLPDWLQJ VDOHV UHWXUQV FRQVLGHULQJ QXPHURXV
I
DFWRUV VXFK DV
FXUUHQW RYHUDOO DQG LQGXVWU\VSHFLILF HFRQRPLF FRQGLWLRQV DQG
KL
VWRU
L
FD
O
VD
O
HVUHWXUQUDWHV
$O
W
K
RX
JK
ZHFRQV
LG
HURXUVD
O
HVUHWXUQ
U
HVHUYHV WR EH DGHTXDWH DQG SURSHU FKDQJHV LQ KLVWRULFDO FXV
WRPHUSDWWHUQVFRXOGUHTXLUHDGMXVWPHQWVWRWKHSURYLVLRQIRU
UH
W
X
UQ
V
:
H
D
O
VR
U
HFR
U
G
U
HGXF
WL
R
Q
V
W
R
RX
UU
H
Y
H
Q
XHV
I
R
U
FXV
W
R
P
H
U
S
URJUDPVDQGLQFHQWLYHR
II
HULQJVLQFOXGLQJVSHFLDOSULFLQJDJUHH
P
HQWVFHUWDLQSURPRWLRQVDQGRWKHUYROXPHEDVHGLQFHQWLYHV
5
HYHQXHIURPVDOHVRIH[WHQGHGZDUUDQW
\
VHUYLFHSODQVLVHLWKH
U
U
HFRJQL]HGDWWKHSRLQWR
I
VDOHRURYHUWKHZDUUDQW \SHULRGGHSHQG
L
QJRQWKHGHWHUPLQDWLRQRIOHJDOREOLJRUVWDWXV$OOSHUIRUPDQFH
REOL
J
DWLRQVDQGULVNRIORVVDVVRFLDWHGZLWKVXFKFRQWUDFWVDUH
WUDQV
I
HUUHG WR DQ XQUHODWHG WKLUGSDUW\ DGPLQLVWUDWRU DW WKH WLPH
W
KHFRQWUDFWVDUHVROG
&
RVWVDVVRFLDWHGZLWKWKHVHFRQWUDFWVDUH
UHFRJQL]HGLQWKHVDPHSHULRGDVWKHUHODWHGUHYHQXH
6
KLSSLQJ DQG +DQGOLQJ )HHV DQG &RVWV ,QFRPH JHQHUDWHG
IURPVKLSSLQ
J
DQGKDQGOLQ
J
IHHVLVFODVVLILHGDVUHYHQXHVIRUDOO
S
HULRGVSUHVHQWHG)UHLJKWFRVWVLQFXUUHGWREULQJPHUFKDQGLVHWR
V
WRUHVDQGZDUHKRXVHVDUHLQFOXGHGDVDFRPSRQHQWRILQYHQWRU\
D
QGFRVWVRI
J
RRGVVROG)UHL
J
KWFRVWVLQFXUUHGWRVKLSPHUFKDQ
G
LVHWRFXVWRPHUVDUHUHFRUGHGDVDFRP
S
RQHQWR
I
VWRUHDQGZDUH
K
RXVHRSHUDWLQJDQGVHOOLQJH[SHQVHV6KLSSLQJFRVWVFRPELQHG
ZLWK ZDUHKRXVH KDQGOLQ
J
FRVWVWRWDOHGPLOOLRQLQ
PLOOLRQLQDQG
PLOOLRQLQ
$G
YHUW
L
V
L
QJ
$G
YHUW
L
V
L
QJFRVWVDUHH
L
W
K
HU F
K
DUJH
G
WR H[SHQVH
ZKHQLQFXUUHGRULQWKHFDVHR
I
GLUHFWPDUNHWLQJDGYHUWLVLQJFDS
L
WD
OL
]H
G
DQ
G
DPRUW
L
]H
G
L
QSURSRUW
L
RQWRW
K
HUH
O
DWH
G
UHYHQXHV
:
HSDUW
L
F
L
SDWH
L
QFRRSHUDW
L
YHD
G
YHUW
L
V
L
Q
J
SUR
J
UDPVZ
L
W
K
RXUYHQ
G
RUV LQ ZKLFK WKH\ UHLPEXUVH XV
I
RUDSRUWLRQR
I
RXUDGYHUWLVLQJ
FRVWV3ULRUWR
WKHVHYHQGRUDUUDQJHPHQWVUHGXFHGDGYHU
W
LVLQ
J
H[SHQVH IRU WKH SHULRG )ROORZLQ
J
DFKDQ
J
H LQ DFFRXQWLQ
J
UXOHVWKDWEHFDPHH
II
HFWLYHDWWKHEHJLQQLQJR
I
I
LVFDO\HDU
ZHQRZFODVVL
I
\VXFKUHLPEXUVHPHQWVDVDUHGXFWLRQR
I
WKHFRVWV
R
IRXULQYHQWRU
\
DQGFRVWRI
J
RRGVVROG
VHH1RWH1
$GYHUWLVLQ
J
H
[SHQVHUHFRJQL]HGZDV
PLOOLRQLQ
PLOOLRQLQ
DQG
PLOOLRQLQ
3
UHRSHQLQJ ([SHQVHV 3UHRSHQLQJ H[SHQVHV UHODWHG WR
RSHQ
L
Q
J
QHZVWRUHVDQ
G
ZDUH
K
RXVHVRUUH
O
RFDW
L
Q
J
H[
L
VW
L
Q
J
VWRUHV
D
Q
G
ZDUH
K
RXVHVDUHH[
S
HQVH
G
DV
L
QFXUUH
G
DQ
G
L
QF
O
X
G
H
G
L
QRW
K
H
U
R
SHUDWLQJH[SHQVHV
6
HOI,QVXUDQFH2IILFH'HSRWLVSULPDULO\VHOILQVXUHGIRUZRUNHUV¶
FRPSHQVDW
L
RQ DXWR DQ
G
J
HQHUD
O
OL
D
ELOL
W
\
DQ
G
HPS
O
R
\
HH PH
GL
FD
O
L
QVXUDQFHSURJUDPV
6
HO
I
LQVXUDQFHOLDELOLWLHVDUHEDVHGRQFODLPV
ILOHGDQGHVWLPDWHVRIFODLPVLQFXUUHGEXWQRWUHSRUWHG7KHVHOLD
ELOL
W
LHV
D
U
H
Q
R
W
GLVFRX
QW
HG
&RPSUHKHQVLYH,QFRPH&RPSUHKHQVLYHLQFRPHUHSUHVHQWVWKH
FKDQJHLQVWRFNKROGHUV¶HTXLW\
I
URPWUDQVDFWLRQVDQGRWKHUHYHQWV
D
QG FLUFXPVWDQFHV DULVLQJ IURP QRQVWRFNKROGHU VRXUFHV
&
RPSUHKHQVLYHLQFRPHFRQVLVWVRIQHWHDUQLQ
J
VIRUHL
J
QFXUUHQF
\
W
UDQVODWLRQDGMXVWPHQWVUHDOL]HGRU XQUHDOL]HG JDLQV
ORVVHV
RQ
L
QYHVWPHQWVHFXULWLHVWKDWDUHDYDLODEOHIRUVDOHDQG HOHPHQWVR
I
T
XDOLI
\
LQ
J
FDVKIORZKHG
J
HVQHWRIDSSOLFDEOHLQFRPHWD[HV
'H
U
L
Y
DWL
Y
H
)L
Q
D
Q
FLDO
,
Q
VW
U
X
P
H
Q
WV
&
HUWDLQ GHULYDWLYH ILQDQFLDO
L
QVWUXPHQWVPD\EHXVHGWRKHGJHWKHH[SRVXUHWR
I
RUHLJQ FXU
UHQF\H[FKDQJHUDWHIXHOSULFHFKDQJHDQGLQWHUHVWUDWHULVNV
V
X
EM
HFWWRDQHVWD
EOL
V
K
H
G
U
L
V
N
PDQD
J
HPHQWSR
OL
F
\
)L
QDQF
L
D
O
L
QVWUX
P
HQWVDXWKRUL]HGXQGHUWKLVSROLF\LQFOXGHVZDSVRSWLRQVFDSV