Staples 2012 Annual Report Download - page 125

C-13
STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
The table below shows the restructuring charges recorded during 2012 and the related liability balances as of February 2,
2013 for each major type of cost associated with the Plan (in thousands):
Continuing Operations Discontinued
Operations
Contractual
Obligation Employee Related Other Total Employee Related
Accrued restructuring balance as of
January 28, 2012 $—$—$—$—$—
Charges 106,438 75,630 24,948 207,016 20,064
Adjustments — — — — —
Cash Payments (5,813) (8,892)(8,346)(23,051)(8,893)
Non-cash relief of accrual — — (10,323)(10,323)—
Foreign currency translations 1,936 1,521 166 3,623 582
Accrued restructuring balance as of
February 2, 2013 $ 102,561 $ 68,259 $ 6,445 $ 177,265 $ 11,753
The Company expects that payments related to employee related liabilities will be substantially completed by the end of
fiscal 2013. The Company anticipates payments related to facility lease obligations will be substantially complete by fiscal year
2026.
For the accrued restructuring liabilities related to continuing operations, $30.5 million of the contractual obligations and
all of the employee-related and other obligations are included within Accrued expenses and other current liabilities and $72.0
million of the contractual obligations are included in Other long-term obligations in the Company's consolidated balance sheet as
of February 2, 2013. For discontinued operations, all liabilities are classified within Current liabilities of discontinued operations.
The restructuring charges related to continuing operations are presented within Integration and restructuring costs in the
Company's consolidated statements of income. The table below summarizes how the $207.0 million of restructuring charges
related to continuing operations would have been allocated if the Company had recorded the expenses within the functional
department of the restructured activities (in thousands):
Fiscal Year Ended
February 2, 2013
Cost of goods sold and occupancy costs $ 118,693
Selling, general and administrative 88,323
Total $ 207,016
As a result of the closure of the 46 retail stores in Europe and the 15 retail stores in the United States and the consolidation
of certain sub-scale delivery businesses in Europe, the Company incurred long-lived asset impairment charges of $34.7 million
in 2012 (see Note C - Goodwill and Long-Lived Assets).
Note C - Goodwill and Long-Lived Assets
Goodwill
As described in Note A - Summary of Significant Accounting Policies, the Company reviews goodwill for impairment
annually during its fourth fiscal quarter and whenever events or changes in circumstances indicate the carrying value of
goodwill may not be recoverable.
During 2012, the Company continued to monitor its European businesses, which the Company had disclosed were at risk
for impairment. With the continued political and economic instability in Europe, recent history of declining sales and profits for
its businesses in that region, a sustained decline of its stock price and revised short-term and long-term outlooks for its European
businesses, the Company determined in its third fiscal quarter that sufficient indicators of impairment existed to require an interim
goodwill impairment analysis for its Europe Retail and Europe Catalog reporting units, both of which are included in the Company's
International Operations segment.
In September 2012, management presented, and the Board of Directors approved, a strategic plan to accelerate growth