v2.3.0.11
Segment Reporting
 6 Months Ended
Jul. 30, 2011
Segment Reporting Disclosure [Abstract]  
Segment Reporting
Segment Reporting
 
Staples has three reportable segments: North American Delivery, North American Retail and International Operations. Staples’ North American Delivery segment consists of the U.S. and Canadian businesses that sell and deliver office products and services directly to customers and businesses and includes Staples Advantage, Staples.com and Quill.com.  The North American Retail segment consists of the U.S. and Canadian businesses that operate office products stores. The International Operations segment consists of businesses that operate office products stores and that sell and deliver office products and services directly to customers and businesses in 24 countries in Europe, Australia, South America and Asia.
 
Staples evaluates performance and allocates resources based on profit or loss from operations before integration and restructuring costs, stock-based compensation, interest and other expense, non-recurring items, and the impact of changes in accounting principles (“business unit income”).    Intersegment sales and transfers are recorded at Staples’ cost; therefore, there is no intercompany profit or loss recognized on these transactions.
 
Staples’ North American Delivery and North American Retail segments are managed separately because the way they market products is different, the classes of customers they service may be different, and the distribution methods used to deliver products to customers are different.  The International Operations are considered a separate reportable segment because of the significant differences in the operating environment from the North American operations.
 
The following is a summary of sales and business unit income by reportable segment for the second quarter and first half of 2011 and 2010 and a reconciliation of business unit income to consolidated income before income taxes (in thousands):
 
 
13 Weeks Ended
 
26 Weeks Ended
 
July 30, 2011
 
July 31, 2010
 
July 30, 2011
 
July 31, 2010
 
Sales
 
Sales
North American Delivery
$
2,433,217


 
$
2,359,427


 
$
4,944,863


 
$
4,822,081


North American Retail
2,045,143


 
2,010,549


 
4,373,228


 
4,322,759


International Operations
1,341,252


 
1,164,264


 
2,674,459


 
2,447,195


Total segment sales
$
5,819,612


 
$
5,534,240


 
$
11,992,550


 
$
11,592,035


 
 
 
 
 
 
 
 
 
Business Unit Income
 
Business Unit Income
North American Delivery
$
204,765


 
$
206,421


 
$
401,615


 
$
409,937


North American Retail
102,872


 
105,694


 
280,221


 
282,243


International Operations
16,576


 
13,546


 
26,100


 
50,434


Business unit income
$
324,213


 
$
325,661


 
$
707,936


 
$
742,614


Stock-based compensation
(46,074
)
 
(35,864
)
 
(81,470
)
 
(69,629
)
Interest and other expense, net
(40,735
)
 
(55,882
)
 
(87,257
)
 
(110,216
)
Integration and restructuring costs
—


 
(21,644
)
 
—


 
(42,526
)
Consolidated income before income taxes
$
237,404


 
$
212,271


 
$
539,209


 
$
520,243