Staples 2002 Annual Report Download - page 89

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STAPLES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE M Segment Reporting (Continued)
Staples evaluates performance and allocates resources based on profit or loss from operations before interest and
income taxes and other charges. The accounting policies of the reportable segments are the same as those described in
the summary of significant accounting policies. Intersegment sales and transfers are recorded at Staples’ cost; therefore,
there is no intercompany profit or loss recognized on these transactions.
Staples’ North American Retail and North American Delivery segments are managed separately because the way
they market products is different, the classes of customers they service may be different, and the distribution methods
used to deliver products to customers is different. The European operations are considered a separate reportable
segment because of the significant difference in the operating environment from the North American operations.
The following is a summary of significant accounts and balances by reportable segment for fiscal years 2002, 2001
and 2000 (in thousands):
Year Ended Year Ended Year Ended
February 1, February 2, February 3,
2003 2002 2001
Sales:
North American Retail ................................ $ 7,166,105 $ 6,914,219 $ 7,001,339
North American Delivery .............................. 3,389,625 3,008,618 2,779,921
European Operations ................................. 1,040,345 796,356 717,069
Total ........................................... $11,596,075 $10,719,193 $10,498,329
Divested Businesses .................................. — 25,180 175,342
Consolidated ..................................... $11,596,075 $10,744,373 $10,673,671
Business Unit Income:
North American Retail ................................ $ 413,895 $ 321,364(1) $ 427,954
North American Delivery .............................. 265,055 205,630 112,100
European Operations ................................. 3,722 (6,584) (24,378)
Total ........................................... $ 682,672 $ 520,410 $ 515,676
Divested Businesses .................................. — (1,537) (27,833)
Consolidated ..................................... $ 682,672 $ 518,873 $ 487,843
Depreciation & Amortization:
North American Retail ................................ $ 184,270 $ 172,612 $ 150,184
North American Delivery .............................. 55,673 51,946 48,883
European Operations ................................. 27,266 24,407 20,101
Total ........................................... $ 267,209 $ 248,965 $ 219,168
Divested Businesses .................................. — — 4,342
Consolidated ..................................... $ 267,209 $ 248,965 $ 223,510
Capital Expenditures:
North American Retail ................................ $ 179,856 $ 218,504 $ 293,314
North American Delivery .............................. 38,170 75,246 92,034
European Operations ................................. 46,666 46,368 61,320
Total ........................................... $ 264,692 $ 340,118 $ 446,668
Divested Businesses .................................. — — 3,549
Consolidated ..................................... $ 264,692 $ 340,118 $ 450,217
(1) Includes a $7.4 million charge for the write-down of inventory at 31 stores closed in the first quarter of 2002.
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