Staples 2005 Annual Report Download - page 74

A-1
APPENDIX A
STAPLES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollar Amounts in Thousands, Except Per Share Data)
Fiscal Year Ended
January 28,
2006(2)
(52 weeks)
January 29,
2005(3)
(52 weeks)
January 31,
2004(4)(5)
(52 weeks)
February 1,
2003(6)(7)
(52 weeks)
February 2,
2002(8)
(52 weeks)
Statement of Income Data:
Sales ............................................ $16,078,852 $ 14,448,378 $ 12,967,022 $ 11,596,075 $ 10,744,373
Gross profit....................................... 4,585,542 4,104,735 3,498,132 2,943,482 2,570,493
Net income....................................... 834,409 708,388 490,211 446,100 264,970
Basic earnings per common share(1)(9):
Staples, Inc. Stock ............................. 1.14 0.95 0.68 0.64 0.27
Staples RD Stock .............................. — — — — 0.12
Staples.com Stock ............................. — — — — 0.01
Diluted earnings per common share(1)(9):
Staples, Inc. Stock ............................. 1.12 0.93 0.66 0.63 0.26
Staples RD Stock .............................. — — — — 0.12
Staples.com Stock ............................. — — — — 0.01
Dividends(1)...................................... $ 0.17 $ 0.13 $ — $ — $ —
Statistical Data:
Stores open at end of period..................... 1,780 1,680 1,559 1,488 1,436
Balance Sheet Data:
Working capital ............................... $ 1,664,638 $ 1,584,751 $ 1,355,670 $ 542,150 $ 807,128
Total assets ................................... 7,676,589 7,071,448 6,503,046 5,721,388 4,093,035
Total long-term debt, less current portion ......... 527,606 557,927 567,433 732,041 350,225
Stockholders’ equity ........................... $ 4,425,471 $ 4,115,196 $ 3,662,900 $ 2,658,892 $ 2,054,174
(1) All share and per share amounts reflect, or have been restated to reflect, the three-for-two common stock split that was effected
in the form of a common stock dividend distributed on April 15, 2005.
(2) Results of operations for this period include the acquired businesses since the relevant acquisition date and Staples China since
becoming a majority-owned subsidiary of the Company during the first quarter of 2005. See Note C to the Consolidated Financial
Statements.
(3) 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 to the Consolidated Financial Statements and
Management’s Discussion and Analysis of Financial Condition and Results of Operations, “MD&A”).
(4) 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 to the Consolidated Financial
Statements).
(5) 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 to the Consolidated Financial
Statements).
(6) 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.
(7) 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.
(8) 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.
(9) From the first quarter of fiscal year beginning February 4, 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 of Directors 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.