Office Depot 2007 Annual Report Download - page 74

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72
Third quarter of 2006: We completed the acquisition of Papirius s.r.o, one of the largest business-to-business
suppliers of office products and services in Eastern Europe. Papirius has sales in the Czech Republic, Lithuania,
Hungary, and Slovakia.
Fourth quarter of 2006: We acquired a majority stake in AsiaEC, one of the largest suppliers of office products
and services in China.
The size of these acquisitions is not material to periods presented and therefore pro forma financial information has
not been provided.
NOTE N — INVESTMENT IN UNCONSOLIDATED JOINT VENTURE
Since 1994, we have participated in a joint venture in Mexico, Office Depot de Mexico. Because we participate
equally in this business with a partner, we account for this investment using the equity method. Our proportionate
share of Office Depot de Mexico’s net income or loss is presented in miscellaneous income, net in the Consolidated
Statements of Earnings.
The following table provides summarized unaudited information from the balance sheet and statement of earnings
for Office Depot de Mexico:
(Dollars in thousands) 2007 2006
Balance Sheet (December 31):
Current assets ........................................................................... $ 202,188 $ 219,388
Non-current assets.................................................................... 250,561 209,779
Current liabilities...................................................................... 169,592 163,768
Non-current liabilities .............................................................. — —
Statement of earnings (fiscal year):
Sales ......................................................................................... 850,824 715,679
Gross profit............................................................................... 245,295 202,274
Net income ............................................................................... 69,651 54,250
NOTE O — QUARTERLY FINANCIAL DATA (UNAUDITED)
(In thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter(1)
Fiscal Year Ended December 29, 2007
Net sales....................................................................
.
$4,093,600 $ 3,631,599 $ 3,935,411 $ 3,866,927
Gross profit...............................................................
.
1,269,108 1,096,119 1,115,135 1,022,536
Net earnings..............................................................
.
153,771 105,582 117,488 18,774
Net earnings per share*:
Basic .....................................................................
.
$ 0.56 $ 0.39 $ 0.43 $ 0.07
Diluted ..................................................................
.
0.55 0.38 0.43 0.07
____________
* Due to rounding, the sum of the quarterly earnings per share amounts may not equal the reported earnings per
share for the year.
(1) Net earnings for the quarter includes pretax Charges of approximately $15 million (aggregate of $40 million
through the four quarters of 2007). Additionally, in the fourth quarter, it became apparent that we were not
going to reach the anticipated full year inventory purchase levels and we reduced our vendor program
recognition accordingly. The impact of this change in estimate primarily attributable to modifications of
previously-anticipated purchase volume tiers was to reduce fourth quarter pretax results by approximately $30
million.