Office Depot 2007 Annual Report Download - page 59

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NOTE B — PROPERTY AND EQUIPMENT
Property and equipment consisted of:
(Dollars in thousands)
December 29,
2007
December 30,
2006
Land .................................................................................................................... $ 97,300 $ 101,442
Buildings............................................................................................................. 308,860 297,438
Leasehold improvements .................................................................................... 1,212,749 1,014,814
Furniture, fixtures and equipment....................................................................... 1,671,812 1,513,137
3,290,721 2,926,831
Less accumulated depreciation ........................................................................... (1,701,763) (1,501,864)
Total.................................................................................................................... $ 1,588,958 $ 1,424,967
Depreciation expense was $266.7 million, $265.6 million and $252.3 million in 2007, 2006 and 2005, respectively.
The amounts for 2007 and 2006 include accelerated depreciation related to the Charges discussed in Note L.
The above table of property and equipment includes assets held under capital leases as follows:
(Dollars in thousands)
December 29,
2007
December 30,
2006
Buildings......................................................................................................... $ 126,994 $ 112,544
Furniture, fixtures and equipment................................................................... 31,430 29,560
158,424 142,104
Less accumulated depreciation ....................................................................... (47,605) (38,141)
Total................................................................................................................ $ 110,819 $ 103,963
NOTE C — GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
The components of goodwill by segment are listed below:
(Dollars in thousands)
North
American
Retail
Division
North
American
Business
Solutions
Division
International
Division Total
Balance as of December 30, 2006 ......................................... $ 1,961 $ 359,417 $ 837,508 $ 1,198,886
Goodwill on 2007 acquisitions........................................... — 6,745 — 6,745
Purchase price adjustments on 2006
acquisitions ........................................................................ — 2,024 9,106 11,130
Foreign currency translation .............................................. 354 442 69,985 70,781
Other adjustments.............................................................. — — (5,085) (5,085)
Balance as of December 29, 2007........................................ $ 2,315 $ 368,628 $ 911,514 $ 1,282,457
Other adjustments include a change in a tax valuation allowance related to an earlier acquisition and impacts from the
adoption of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”) relating to tax
uncertainties associated with an earlier period acquisition. During 2007, we completed the acquisition of Axidata Inc.,
which is described in Note M. Some fair value estimates remain in process and may impact goodwill in future periods.
Other Intangible Assets
Indefinite-lived intangible assets related to acquired trade names were $68.8 million and $61.6 million, at December
29, 2007 and December 30, 2006, respectively, and are included in other intangible assets in the Consolidated
Balance Sheets. The change in this balance during 2007 resulted from changes in foreign currency rates. Indefinite-
lived intangible assets are not subject to amortization, however, during 2005, we adopted a plan to phase out the
Guilbert trade name in France. Concurrent with the adoption of this plan, we tested the asset for impairment which
resulted in the recognition of an impairment charge of $9.5 million during the fourth quarter of 2005. The remaining
balance of the intangible asset was amortized during 2006.