Office Depot 2011 Annual Report Download - page 214

Office Depot de México, S. A. de C. V. and Subsidiaries
(A 50% Owned Subsidiary of Grupo Gigante, S. A. B. de C. V.
and a 50% Owned Affiliate of Office Depot Delaware Overseas Finance 1, LLC)
Notes to Consolidated Financial Statements
As of December 31, 2011 and 2010 (Unaudited) and for the years ended December 31, 2011, 2010 (Unaudited) and 2009
(Unaudited)
(In thousands of Mexican pesos, unless stated otherwise)
Office Depot de México, S. A. de C. V. (“ODM”, a 50% owned subsidiary of Grupo Gigante, S. A. B. de C. V. and 50% owned
affiliate of Office Depot Delaware Overseas Finance 1, LLC) and subsidiaries (collectively, the “Company”) is a chain of 201
stores in Mexico, five in Costa Rica, six in Guatemala, three in El Salvador, two in Honduras, three in Panama, 12 in Colombia,
nine distribution centers, a cross dock in Mexico that sell office supplies and electronic goods, and a printing service specializing
in the retail and catalogue business for office supplies.
Acquisition of subsidiaries: On September 30, 2010, ODM acquired, directly and indirectly through its subsidiaries, 100%
of the voting common stock of the companies Formas Eficientes, S. A. de C. V. and Papelera General, S. A. de C. V. in
Mexico, Ofixpres, S. A. S. in Colombia, Ofixpres, S. A. de C. V. in El Salvador; and FESA Formas Eficientes, S. A. in
Costa Rica. The primary activities of these companies include the distribution and handling of inventories as well as
fabrication of printed forms. The activities of the acquired companies are aligned with the business strategy of ODM to
increase sales and augment presence in Latin America
The results of operations of the entities were included in the Company’s consolidated financial statements beginning
October 1, 2010.
Consideration paid, in cash, totaled U.S.$15,408 million, equivalent to $192,293.
As of December 31, 2010, the allocation of the consideration paid to the assets acquired and the liabilities assumed was
provisional as the Company was in the process of identifying certain intangibles and obtaining fair values for the assets
acquired and liabilities assumed. This process was concluded in May 2011. The final allocation of the consideration paid to
the acquired assets and assumed liabilities as of the date of acquisition, is presented below.
6
1. Nature of business
2. Basis of presentation
a. Comparability
—
The most significant events and transactions affecting comparability of the accompanying consolidated
financial statements are discussed below:
Balance as of
Se
p
tember 30, 2010
Current assets $509,271
Fixed assets
55,224
Intan
g
ible assets 93,805
Other assets
217
Total assets 658,517
Current liabilities (461,679)
Lon
g
-term liabilities (4,545)
Total liabilities (466,224)
Net assets ac
q
uired $192,293