Staples 2007 Annual Report Download - page 130

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STAPLES, INC. AND SUBSIDIARIES
Notes To Consolidated Financial Statements (Continued)
NOTE K Segment Reporting (Continued)
The following is a reconciliation of total segment income to income before income taxes and minority interest for
fiscal years 2007, 2006 and 2005 (in thousands):
2007 2006 2005
Total segment income ......................................... $1,586,249 $1,473,898 $1,234,081
Other income ............................................... 6,233 8,259 1,218
Impact of correction of prior years’ stock-based compensation ............ — (10,829) —
Impact of wage and hour settlement ............................... (38,000) — —
Income before income taxes and minority interest ..................... $1,554,482 $1,471,328 $1,235,299
February 2, 2008 February 3, 2007 January 28, 2006
Assets:
North American Retail ................................ $3,554,465 $3,693,771 $3,472,130
North American Delivery .............................. 2,521,384 2,191,130 2,042,065
International Operations ............................... 2,973,099 2,510,596 2,238,833
Total ........................................... 9,048,948 8,395,497 7,753,028
Elimination of net intercompany receivables ................ (12,604) 1,768 (20,308)
Total consolidated assets ............................. $9,036,344 $8,397,265 $7,732,720
Geographic Information:
2007 2006 2005
Sales:
United States ........................................... $14,160,733 $13,514,677 $11,967,718
Canada ................................................ 2,474,410 2,287,302 2,015,456
International ............................................ 2,737,539 2,358,810 2,095,678
Consolidated ............................................ $19,372,682 $18,160,789 $16,078,852
February 2, 2008 February 3, 2007 January 28, 2006
Long-lived Assets:
United States ....................................... $2,002,548 $1,857,093 $1,667,475
Canada ........................................... 311,723 271,660 275,672
International ....................................... 1,874,505 1,566,443 1,469,279
Consolidated ....................................... $4,188,776 $3,695,196 $3,412,426
NOTE L Guarantor Subsidiaries
Under the terms of the Company’s Notes and its Amended and Restated Revolving Credit Agreement, certain
subsidiaries guarantee repayment of the debt. The Notes are fully and unconditionally guaranteed on an unsecured, joint
and several basis by Staples the Office Superstore, LLC, Staples the Office Superstore East, Inc., Staples Contract &
Commercial, Inc., and Staples the Office Superstore, Limited Partnership, 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 Notes and illustrates the composition
of Staples, Inc. (the ‘‘Parent Company’’), Guarantor Subsidiaries, and non-guarantor subsidiaries as of February 2, 2008
and February 3, 2007 and for the fiscal years ended February 2, 2008, February 3, 2007 and January 28, 2006. The
non-guarantor subsidiaries represent more than an inconsequential portion of the consolidated assets and revenues of
Staples.
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