Staples 2013 Annual Report Download - page 146

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STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
C-15
During the fourth quarters of 2012 and 2013, the Company performed its annual goodwill impairment testing, and
determined that no further impairment charges were required at those times.
The changes in the carrying amounts of goodwill during fiscal 2012 and 2013 are as follows (in thousands):
Goodwill
at January 28, 2012
2012 Impairment
Charges 2012 Adjustments
Foreign
Exchange
Fluctuations
Goodwill
at February 2, 2013
North American
Commercial $ 1,245,034 $ — $ — $ — $ 1,245,034
North American Stores
& Online 629,554 — (3,103) 222 626,673
International Operations 2,107,542 (771,493)(414) 13,820 1,349,455
Consolidated $ 3,982,130 $ (771,493) $ (3,517) $ 14,042 $ 3,221,162
Goodwill
at February 2,
2013 2013 Additions
2013
Adjustments Held for Sale
Foreign
Exchange
Fluctuations
Goodwill
at February 1,
2014
North American Commercial $ 1,245,034 $ 18,377 $ (5,462) $ (11,163) $ — $ 1,246,786
North American Stores &
Online 626,673 15,945 — — (4,593) 638,025
International Operations 1,349,455 — — — (669) 1,348,786
Consolidated $ 3,221,162 $ 34,322 $ (5,462) $ (11,163) $ (5,262) $ 3,233,597
As of February 1, 2014, the Company has taken $771.5 million of accumulated goodwill impairment charges.
Long-Lived Assets
Prior to performing the goodwill impairment tests for Europe Retail and Europe Catalog in the third quarter of 2012, the
Company tested long-lived assets to be held and used by these reporting units for impairment on an undiscounted cash flow basis.
Based on the results of this testing, the Company recorded a $4.8 million impairment charge related to the ongoing operations of
Europe Retail and determined that the long-lived assets associated with the ongoing operations of Europe Catalog were not impaired.
The impairment charge primarily related to leasehold improvements at retail stores and was based on estimates of the fair values
of the related assets which were derived using a DCF valuation analysis, incorporating similar assumptions and estimates as
discussed above.
During 2012, the Company closed 46 retail stores in Europe and 15 retail stores in the United States and consolidated
several sub-scale delivery businesses in Europe (see Note B - Restructuring Charges). As a result of these actions, the Company
recorded long-lived asset impairment charges of $29.6 million and $5.1 million related to the Company's International Operations
and North American Stores and Online segments, respectively, primarily relating to leasehold improvements and company-owned
facilities.
See Note G - Fair Value Measurements for disclosures related to fair value measurements incorporated in the calculations
of the goodwill and long-lived asset impairment charges.
Also during 2012, the Company rebranded its Australian business, a component of the Company's International Operations
segment, pursuant to which the Company accelerated the transition from the legacy Corporate Express tradename to the exclusive
use of the Staples brand name. As a result, the Company accelerated the remaining amortization totaling $20.0 million in 2012.
This amount was recorded in Amortization of intangibles in the consolidated statement of income. Prior to the decision to rebrand
this business, the carrying value of the tradename was scheduled to be amortized through the end of the Company's fiscal year
2014.