Staples 2013 Annual Report Download - page 147

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STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
C-16
The Company's intangible assets are amortized on a straight-line basis over their estimated useful lives and are summarized
below (in thousands):
Weighted
Average
Amortization
Period
February 1, 2014 February 2, 2013
Gross
Carrying
Amount
Accumulated
Amortization Net
Gross
Carrying
Amount
Accumulated
Amortization Net
Customer relationships 12.2 years $ 686,399 $ (357,239) $ 329,160 $ 680,846 $ (305,245) $ 375,601
Technology 5.0 years 48,193 (862) 47,331 — — —
Tradenames 16.0 years 204,598 (198,389) 6,209 208,449 (199,441) 9,008
Total 11.8 years $ 939,190 $ (556,490) $ 382,700 $ 889,295 $ (504,686) $ 384,609
Estimated future amortization expense associated with the intangible assets at February 1, 2014 is as follows (in thousands):
Fiscal Year Total
2014 $ 59,767
2015 63,114
2016 61,617
2017 61,278
2018 57,694
Thereafter 79,230
$ 382,700
Note D — Divestitures
On October 5, 2013, the Company completed the sale of PSD, a former component of the Company's International
Operations segment, which operated in five countries in Europe and focused on the sale, rental and servicing of printing machinery.
The Company recognized a preliminary loss on disposal of $80.9 million in the third quarter of 2013, which was included in Loss
from discontinued operations, net of income taxes in the consolidated statements of income, and which is subject to a working
capital adjustment, which has not yet been finalized. The loss reflects an insignificant amount of curtailment and settlement gains
and losses associated with the defined benefit pension plans related to PSD.
The following table details PSD's results of operations for 2013, 2012 and 2011, which have been reported in discontinued
operations (in thousands):
35 Weeks Ended 53 Weeks Ended 52 Weeks Ended
October 5, 2013 February 2, 2013 January 28, 2012
Sales $ 199,224 $ 291,428 $ 357,440
Restructuring Charges — 20,064 —
Loss from discontinued operations, before income taxes
(including loss on disposal of $80.9 million in 2013) (88,301)(51,074)(5,503)
Income tax benefit (1,366)(1,096)(1,939)
Loss from discontinued operations, net of income taxes $ (86,935) $ (49,978) $ (3,564)