Staples 2004 Annual Report Download - page 78

APPENDIX A
STAPLES, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollar Amounts in Thousands, Except Per Share Amounts)
Fiscal Year Ended
January 29, January 31, February 1, February 2, February 3,
2005(1) 2004(2)(3) 2003(4)(5) 2002(6) 2001(7)
(52 weeks) (52 weeks) (52 weeks) (52 weeks) (53 weeks)
Statement of Income Data:
Sales ..................................... $14,448,378 $12,967,022 $11,596,075 $10,744,373 $10,673,671
Gross profit ................................ 4,104,735 3,498,132 2,943,482 2,570,493 2,576,505
Net income ................................ 708,388 490,211 446,100 264,970 59,712
Basic earnings/(loss) per common share(8):
Staples, Inc. Stock ........................ 1.43 1.01 0.96 0.40 —
Staples RD Stock ......................... — — — 0.18 0.16
Staples.com Stock ......................... — — — 0.01 (0.84)
Diluted earnings/(loss) per common share(8):
Staples, Inc. Stock ........................ 1.40 0.99 0.94 0.40 —
Staples RD Stock ......................... — — — 0.17 0.15
Staples.com Stock ......................... — — — 0.01 (0.84)
Dividends ................................. 0.20 ————
Selected Operating Data (at period end):
Stores open ............................. 1,680 1,559 1,488 1,436 1,307
Balance Sheet Data:
Working capital .......................... $1,584,751 $ 1,355,670 $ 542,150 $ 807,128 $ 644,832
Total assets ............................. 7,071,448 6,503,046 5,721,388 4,093,035 3,983,923
Total long-term debt, less current portion ......... 557,927 567,433 732,041 350,225 441,257
Stockholders’ equity ....................... $ 4,115,196 $ 3,662,900 $ 2,658,892 $ 2,054,174 $ 1,749,424
(1) The results of operations for this period include the results of acquired businesses since the relevant acquisition date. The
Company acquired Globus Office World plc on August 4, 2004, Malling Beck A/S on September 2, 2004, Pressel Versand
International GmbH on September 7, 2004 and Officenet SA on November 29, 2004 (see Note C and Management’s Discussion
and Analysis of Financial Condition and Results of Operations, ‘‘MD&A’’).
(2) Results of operations for this period have been reclassified to conform with EITF Issue No. 03-10, ‘‘Application of Issue No. 02-16
by Resellers to Sales Incentives Offered to Consumers by Manufacturers’’, which requires that vendor consideration received in
the form of sales incentives be recorded as a reduction of cost of goods sold when recognized, rather than as a component of
sales. As a result of this reclassification and a reclassification of certain other coupons, sales, gross profit and operating and selling
expenses decreased, but there was no impact on net income (see Note B and MD&A).
(3) Results of operations for this period reflect a $98.0 million ($61.7 million net of taxes) non-cash adjustment for the inclusion of
cooperative advertising and other performance based rebates in inventory as required by EITF Issue No. 02-16, ‘‘Accounting by a
Customer (Including a Reseller) for Certain Consideration Received from a Vendor’’ (see Note B and MD&A).
(4) Results of operations for this period include a tax benefit of $29.0 million related to Staples Communications. In fiscal 2000, the
Company recognized an impairment loss related to the goodwill and fixed assets of Staples Communications, which was not
recorded as a deduction for tax purposes. In fiscal 2002, the Company received approval from the Internal Revenue Service to
take an ordinary deduction for the Company’s investment in, and advances to, Staples Communications (see Note H and
MD&A).
(5) The results of operations for this period include the results of acquired businesses since the relevant acquisition date. The
Company acquired Medical Arts Press, Inc. on July 17, 2002 and the European mail order businesses on October 18, 2002 (see
Note C and MD&A).
(6) Results of operations for this period include a store closure charge of $50.1 million ($30.8 million after taxes) related to the
closure of 31 underperforming stores, a $7.4 million ($4.6 million after taxes) charge to cost of goods sold related to inventory
write-downs to net realizable value for the closed stores and $10.7 million ($6.6 million after taxes) in other charges related to
workforce reductions and fulfillment and call center closures.
(7) Results of operations for this period include $205.8 million of asset impairment and other charges related to the impairment of
goodwill and fixed assets associated with Staples Communications and the write-down of investment values in various e-
commerce companies. These results also include a $7.3 million ($4.3 million after taxes) store closure credit, reflecting a
reduction in the number of stores expected to be closed in connection with the 1998 store closure plan.
(8) From the first quarter of fiscal year ending February 3, 2001 through the second quarter of fiscal year ending February 2, 2002,
earnings per share is omitted for Staples Inc. as a result of the approval of the Tracking Stock Proposal which changed Staples’
capital structure by creating Staples.com Stock and reclassifying Staples, Inc. common stock (‘‘Staples, Inc. Stock’’) as Staples RD
Stock. Staples.com’s net loss per share has also been retroactively restated to reflect the effect of a recapitalization through a one-
for-two reverse stock split approved by the Board on March 7, 2000 and effected on April 5, 2000.
The Company’s fiscal year is the 52 or 53 weeks ending the Saturday closest to January 31.
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