Staples 2007 Annual Report Download - page 136

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STAPLES, INC. AND SUBSIDIARIES
Notes To Consolidated Financial Statements (Continued)
NOTE M Quarterly Summary (Unaudited) (Continued)
First Second Third Fourth
Quarter Quarter Quarter(2) Quarter(3)
Fiscal Year Ended February 3, 2007
Sales .......................................... $4,237,646 $3,880,674 $4,756,550 $5,285,919
Gross profit ..................................... 1,188,997 1,096,604 1,362,458 1,545,942
Net income ...................................... 186,074 161,177 289,928 336,498
Basic earnings per common share ....................... $ 0.26 $ 0.22 $ 0.40 $ 0.47
Diluted earnings per share ............................ $ 0.25 $ 0.22 $ 0.39 $ 0.46
(1) Results of operations for this period include a $24.3 million charge, net of taxes ($0.04 per diluted share) related to
the settlement of California wage and hour class action litigation.
(2) Results of operations for this period include a $33.3 million ($0.05 per diluted share) reduction in income taxes
related to the favorable resolution of certain foreign and domestic tax matters and an $8.6 million charge, net of
taxes ($0.01 per diluted share) to correct the measurement dates used to calculate prior years’ stock-based
compensation (see Note H).
(3) Fiscal year 2006 includes 53 weeks in accordance with the Company’s 52 week, 53 week retail calendar; accordingly,
the fourth quarter includes 14 weeks.
NOTE N Subsequent Event (Unaudited)
On February 19, 2008, the Company announced that it had made a proposal to Corporate Express NV (NYSE:
CXP), a Dutch office products distributor with operations in North America, Europe, Australia and New Zealand, to
acquire all of the outstanding shares of its ordinary stock for a cash consideration of 7.25 Euros per share, representing a
total enterprise value of approximately 2.5 billion Euros (approximately $3.7 billion). To finance a portion of this
proposed acquisition, the Company entered into a bridge loan commitment letter with Lehman Brothers on customary
terms and conditions. The Company may only borrow amounts pursuant to this committed financing in connection with
the proposed acquisition of Corporate Express NV. The Company believes that this committed financing together with
the Company’s cash and available credit under its revolving credit facility will be sufficient to finance the acquisition.
Corporate Express, in a public statement issued the same day, rejected the Company’s proposal.
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