Office Depot 2005 Annual Report Download - page 56
Download and view the complete annual report
Please find page 56 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.1
2
7(,³
&
$3,7$/
6
7
2&.
3
U
HIH
UU
HG
6WRF
N
$
VRI'HFHPEHU
WKHUHZHUH
VKDUHVRI
SDU YDOXH SUHIHUUHG VWRFNDXWKRUL]HGRI ZKLFK QRQHZHUH LVVXHG
RURXWVWDQ
GL
Q
J
6
WRFNKROGHU5L
J
KWV3ODQ
2
XUVWRFNKROGHUULJKWVSODQ
³
WKH3ODQ´
ZDVDGRSWHGE\WKH
2II
LFH
'
HSRWERDUGRIGLUHFWRUVRQ6HSWHPEHUDQGDPHQGHGRQ
1
RYHPEHU
7KH3ODQKDVFHUWDLQDQWLWDNHRYHUSURYLVLRQV
WKDWPD\FDXVHVXEVWDQWLDOGLOXWLRQWRDSHUVRQRUJURXSWKDW
DWWHPSWVWRDFTXLUH2IILFH'HSRWRQWHUPVQRWDSSURYHGE\WKH
ERDUGRIGLUHFWRUV8QGHUWKH3ODQ
HDFK VWRFNKROGHU LV LVVXHG
RQHULJKWWRDFTXLUHRQHRQHWKRXVDQGWKR
I
DVKDUHR
I
-XQLRU
3
DUWLFLSDWLQJ3UHIHUUHG6WRFN6HULHV$DWDQH[HUFLVHSULFHRI
VXE
M
HFW WR DG
M
XVWPHQWIRUHDFKRXWVWDQGLQ
J
VKDUHRI
2II
LFH'HSRWFRPPRQVWRFNWKH\RZQ7KHVHULJKWVDUHRQO\H[HU
F
LVDEOH LI D VLQJOH SHUVRQ RU FRPSDQ\ DFTXLUHV RU PRUH RI
RXU RXWVWDQGLQ
J
FRPPRQVWRFNRULIDQDQQRXQFHGWHQGHURU
H
[FKDQJHR
II
HUZRXOGUHVXOWLQ
RUPRUHR
I
RXUFRPPRQVWRFN
EHLQJDFTXLUHG,I2IILFH'HSRWZHUHDFTXLUHGHDFKULJKWH[FHSW
WKRVHRIWKHDFTXLUHUVKDOOKDYHWKHUL
J
KWWRUHFHLYHWKHQXPEHURI
VKDUHV R
I
FRPPRQ VWRFN LQ
2II
LFH 'HSRW KDYLQJ D WKHQFXUUHQW
PDUNHWYDOXHRIWZLFHWKHH[HUFLVHSULFHRIWKHULJKW
,
QDGGLWLRQLI2IILFH'HSRWEHFRPHVLQYROYHGLQDPHUJHURURWKHU
EXVLQHVVFRPELQDWLRQZKHUH
2IILFH'HSRWLVQRWWKHVXUYLYLQ
J
F
RPSDQ\
2II
LFH'HSRW¶VFRPPRQVWRFNLVFKDQJHGRU
H
[FKDQJHGRURUPRUHRI2IILFH'HSRW¶VDVVHWVRUHDUQLQJ
SRZHUDUHVROGWKHQHDFKUL
J
KWH[FHSWWKRVHRIWKHDFTXLUHUZLOO
EH H[HUFLVDEOH
I
RU FRPPRQ VWRFN R
I
WKHDFTXLULQJFRUSRUDWLRQ
KDYLQJDPDUNHWYDOXHRIWZLFHWKHH[HUFLVHSULFHRIWKHULJKW,Q
DGGLWLRQWKHERDUGRIGLUHFWRUVKDVWKHRSWLRQRIH[FKDQ
J
LQ
J
DOORU
SDUWR
I
WKHULJKWV
I
RUDQHTXDOQXPEHUR
I
VKDUHVR
I
FRPPRQVWRFN
2IILFH'HSRWPD\UHGHHPWKHULJKWVIRU
SHUULJKWDWDQ\WLPH
SULRUWRDQDFTXLVLWLRQ
,
QUHVSRQVHWRDVKDUHKROGHUYRWHDWWKH
DQQXDOPHHWLQ
J
WKH
ERDUGRIGLUHFWRUVDGRSWHGFHUWDLQDPHQGPHQWVWRWKH3ODQZKLFK
EHFDPHH
II
HFWLYHRQ1RYHPEHU
8QGHUWKHWHUPVR
I
WKLV
DPHQGPHQWLQWKHHYHQWRIDFDVKRUPDUNHWDEOHVHFXULWLHVRIIH
U
IRUDOORI2IILFH'HSRW¶VFRPPRQVWRFNDQGLIUHTXHVWHGWRGRVR
E\WKHKROGHUVR
I
DWOHDVW
R
I
2II
LFH'HSRW¶VLVVXHGDQGRXW
VWDQGLQJ VWRFN WKH ERDUG RI GLUHFWRUV VKDOO HLWKHU FDOO D VSHFLDO
VWRFNKROGHUPHHWLQ
J
ZLWKLQ
GD
\
VWRDOORZDYRWHRQDUHVROXWLRQ
WRUHGHHPWKHULJKWVRUWKHULJKWVDXWRPDWLFDOO\ZLOOEHUHGHHPHG
7KHUHDUHFHUWDLQRWKHUFRQGLWLRQVRQZKDWFRQVWLWXWHVD³4XDOLI\LQJ
2
IIHU´ ZKLFK DUH GHWDLOHG LQ RXU ILOLQ
J
V ZLWK WKH 6(& 7KH UL
J
KWV
ZLOO H[
S
LUH RQ
6
H
S
WHPEHUXQOHVVHDUOLHUUHGHHPHGRU
H[FKDQJHG
7UHDVXU\6WRFN
7KH 2IILFH 'HSRW ERDUG RI GLUHFWRUV KDV DXWKRUL]HG D VHULHV R
I
FRPPRQVWRFNUH
S
XUFKDVH
S
ODQVWKHODWHVWRIZKLFKLVD
PLO
O
LRQDXWKRUL]DWLRQLQ
8
QGHU WKHVH DSSURYHG SODQV ZH SXUFKDVHG DSSUR[LPDWHO\
P
LOOLRQVKDUHVDWDFRVWRIPLOOLRQLQ
PLOOLRQVKDUHV
I
RU
PLOOLRQLQDQGPLOOLRQVKDUHVIRU
PLOOLRQLQ
$W'HFHPEHUDSSUR[LPDWHO\
PLOOLRQUHPDLQV
DYDLODEOHIRUUHSXUFKDVHXQGHUWKHFXUUHQWDXWKRUL]DWLRQ
12
7(-³($51,1
*6
3(5
6
+$5(
%DVLFHDUQLQJVSHUVKDUHLVEDVHGRQWKHZHLJKWHGDYHUDJHQXP
E
HU RI VKDUHV RXWVWDQGLQ
J
GXULQ
J
HDFK SHULRG 'LOXWHG HDUQLQ
J
V
S
HUVKDUHUH
I
OHFWVWKHLP
S
DFWR
I
DVVXPHGH[HUFLVHR
I
GLOXWLYHVWRFN
RSWLRQVDQGYHVWLQJR
I
UHVWULFWHGVWRFN
7KH
I
ROORZLQJWDEOHUHSUHVHQWVWKHFDOFXODWLRQR
I
QHWHDUQLQJVSH
U
FR
PP
R
Q
VKD
U
H
²
EDVLF
D
Q
G
GLOX
W
HG
,QWKRXVDQGVH[FHSWSHU
VKDUHDPRXQWV
1X
P
H
U
D
W
R
U
1
HWHDUQ
L
Q
J
V
'H
Q
R
P
L
Q
D
W
R
U
:
H
LJK
WH
G
DYHUD
J
HV
K
DUHVRXWVWDQ
GL
Q
J
%
DV
L
F
(IIHFWRIGLOXWLYHVWRFNRSWLRQV
D
Q
G
U
HV
WUL
F
W
HG
V
W
RF
N
'LO
XWH
G
1
HWHDUQ
L
Q
J
VSHUV
K
DUH
%DVLF
'LO
X
W
HG
2
SWLRQV WR SXUFKDVH PLOOLRQ PLOOLRQ DQG PLOOLRQ
V
KDUHVLQWKH\HDUVHQGHG'HFHPEHU'HFHPEHU
DQG'HFHPEHU
UHVSHFWLYHO\ZHUHQRWLQFOXGHGLQ
WKH FRPSXWDWLRQ RI HDUQLQ
J
V SHU VKDUH EHFDXVH WKH H[HUFLVH
S
ULFHVR
I
WKHVHRSWLRQVH[FHHGHGWKHDYHUDJHPDUNHWSULFHR
I
WKH
FRPPRQVKDUHVGXULQJWKHUHVSHFWLYHSHULRGV
2
)),
&
('(3
2
7$11
8
$/5(3
2
57
1
R
W
HV
W
R
&R
Q
VR
OL
GD
W
HG
)LQ
D
Q
F
L
D
O
6
W
D
W
H
P
H
QW
V
FRQWLQXHG