Office Depot 2011 Annual Report Download - page 225

Common stock consists of common nominative shares at a par value of $10 per share. Series A shares represent 50% of
common stock and may only be acquired by Mexican citizens. Series B shares represent 50% of common stock and may be
freely subscribed. Variable capital is unlimited.
17
10. Stockholders’ equity
a. Common stock at
p
ar value (historical
p
esos) as of December 31, 2011 and 2010 (unaudited) is as follows:
Number of Shares Amoun
t
Fixed ca
p
ital:
Series A 2,500 $25
Series B 2,500 25
5,000 5
0
Variable ca
p
ital:
Series A 27,749,159 277,492
Series B 27,749,159 277,492
Total 55,498,318 554,984
55,503,318 $555,034
b. Pursuant to a resolution at the general ordinary stockholders’ meeting held on April 8, 2011, a dividend was declared out o
f
the net tax income account (CUFIN) for $600,000.
c. Pursuant to a resolution at the general ordinary stockholders’ meeting held on January 16, 2009, a dividend was declared
out of the net tax income account (CUFIN) for $400,000.
d. Retained earnings include the statutory legal reserve. The General Corporate Law requires that at least 5% of net income of
the year be transferred to the legal reserve until the reserve equals 20% of capital stock at par value (historical pesos). The
legal reserve may be capitalized but may not be distributed unless the entity is dissolved. The legal reserve must be
replenished if it is reduced for any reason. As of December 31, 2011 and 2010, the legal reserve, in historical pesos, was
$111,007.
e. Stockholders’ equity, except restated paid-in capital and tax retained earnings will be subject to ISR payable by the
Company at the rate in effect upon distribution. Any tax paid on such distribution may be credited against annual and
estimated income taxes of the
y
ear in which the tax on dividends is
p
aid and the followin
g
two fiscal
y
ears.
f. The balances of the stockholders’ e
q
uit
y
tax accounts as of December 31, are:
2011 2010
(Unaudited)
Contributed ca
p
ital account $1,515,297 $2,867,218
Net tax income account (CUFIN)
4,785,758 4,940,345
Total $6,301,055 $7,807,563