Staples 2012 Annual Report Download - page 129

Download and view the complete annual report

Please find page 129 of the 2012 Staples annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 166

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

C-17
STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
The following table shows the carrying amounts of the major classes of the assets and liabilities included in the disposal
group as of February 2, 2013 (in thousands):
February 2, 2013
ASSETS
Receivables, net $ 108,011
Merchandise inventories, net 41,218
Deferred income tax assets 3,946
Prepaid expenses and other current assets 8,851
Non-current assets 8,793
Total assets of discontinued operations $ 170,819
LIABILITIES
Accounts payable $ 74,920
Accrued expenses and other current liabilities 35,847
Debt maturing within one year 2,528
Other long-term obligations 16,377
Total liabilities of discontinued operations $ 129,672
In connection with the Company's ongoing efforts to sell PSD, the Company incurred restructuring charges of
approximately $20.1 million in 2012 for employee severance and benefit costs associated with a plan to restructure PSD's operations.
The Company also incurred $4.5 million of incremental tax expense in 2012 related to the planned sale. These charges are included
in Loss from discontinued operations, net of income taxes in the consolidated statement of income.
The consolidated statements of income for 2012, 2011 and 2010 include certain indirect corporate overhead costs in
Selling, general and administrative which had previously been allocated to PSD. These indirect corporate overhead costs do not
qualify for classification within discontinued operations and, therefore, continue to be included in Selling, general and
administrative in continuing operations on the consolidated statement of income.
The following table details PSD's results of operations for 2012, 2011 and 2010, which have been reported in discontinued
operations (in thousands):
Fiscal Year Ended
February 2, 2013 January 28, 2012 January 29, 2011
Sales $ 291,428 $ 357,440 $ 409,860
Restructuring Charges 20,064 — —
Loss from discontinued operations, before income taxes (51,074)(5,503)(9,942)
Income tax (benefit) expense (1,096)(1,939) 449
Loss from discontinued operations, net of income taxes $ (49,978)$ (3,564)$ (10,391)
Note E — Business Combinations and Acquisition of Noncontrolling Interest
ASC Topic 805 Business Combinations requires that companies record acquisitions using the acquisition method of
accounting. Accordingly, the purchase price is assigned to the tangible assets and liabilities and identifiable intangible assets
acquired, based on their estimated fair values. The excess purchase price over the fair value is recorded as goodwill. Purchased
intangibles with finite lives are amortized over their respective useful lives.
With the acquisition of Corporate Express in July 2008, the Company acquired more than 99% of the capital stock of
Corporate Express and became approximately a 59% shareholder of Corporate Express Australia Limited ("Corporate Express
Australia"), a public company traded on the Australian Securities Exchange. In September 2010, through a compulsory acquisition