Staples 2002 Annual Report Download - page 90

STAPLES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE M Segment Reporting (Continued)
The following is a reconciliation of business unit income to income before income taxes for fiscal years ended 2002,
2001 and 2000 (in thousands):
Year Ended Year Ended Year Ended
February 1, 2003 February 2, 2002 February 3, 2001
Total business unit income .................................. $682,672 $518,873 $487,843
Asset impairment and other charges ............................ — (10,717) (205,750)
Store closure (charge) credit ................................. — (50,092) 7,250
Interest and other expense, net ............................... (20,609) (27,219) (45,158)
Income before income taxes ................................. $662,063 $430,845 $244,185
February 1, 2003 February 2, 2002
Assets:
North American Retail ............................................... $2,835,460 $2,885,343
North American Delivery .............................................. 1,239,886 781,552
European Operations ................................................. 1,662,604 527,696
Total .......................................................... 5,737,950 4,194,591
Elimination of intercompany receivables .................................... (16,562) (101,556)
Total consolidated assets ........................................... $5,721,388 $4,093,035
February 1, 2003 February 2, 2002
Long-lived Assets:
North America ..................................................... $1,909,573 $1,361,558
Europe .......................................................... 1,013,844 275,469
Consolidated Total .................................................. $2,923,417 $1,637,027
NOTE N Guarantor Subsidiaries
Under the terms of the Company’s Senior Notes and Notes, certain subsidiaries guarantee repayment of the debt.
The Senior Notes and the Notes are fully and unconditionally guaranteed on an unsecured, joint and several basis by
Staples the Office Superstore, Inc. and certain of its subsidiaries, Staples the Office Superstore East, Inc. and Staples
Contract & Commercial, Inc., all of which are wholly owned subsidiaries of Staples (the ‘‘Guarantor Subsidiaries’’). The
term of guarantees is equivalent to the term of the related debt. The following condensed consolidating financial data is
presented for the holders of the Senior Notes and the Notes and illustrates the composition of Staples, Inc. (the ‘‘Parent
Company’’), Guarantor Subsidiaries, and non-guarantor subsidiaries as of February 1, 2003 and February 2, 2002 and for
the fiscal years ended February 1, 2003, February 2, 2002 and February 3, 2001. The non-guarantor subsidiaries represent
more than an inconsequential portion of the consolidated assets and revenues of Staples. Separate complete financial
statements of the respective Guarantor Subsidiaries, however, would not provide additional information which would be
useful in assessing the financial condition of the Guarantor Subsidiaries and thus are not presented.
Investments in subsidiaries are accounted for by the Parent Company on the equity method for purposes of the
supplemental consolidating presentation. Earnings of subsidiaries are, therefore, reflected in the Parent Company’s
investment accounts and earnings. The principal elimination entries eliminate the Parent Company’s investment in
subsidiaries and intercompany balances and transactions.
C-27