v2.3.0.15
Segment Reporting
9 Months Ended
Oct. 29, 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 stores that sell office products and services. The International Operations segment consists of businesses that operate 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 third quarter and year-to-date 2011 and 2010 and a reconciliation of business unit income to consolidated income before income taxes (in thousands):
 
 
13 Weeks Ended
 
39 Weeks Ended
 
October 29, 2011
 
October 30, 2010
 
October 29, 2011
 
October 30, 2010
 
Sales
 
Sales
North American Delivery
$
2,582,729

 
$
2,537,094

 
$
7,527,592

 
$
7,359,175

North American Retail
2,656,612

 
2,644,347

 
7,029,840

 
6,967,106

International Operations
1,330,586

 
1,356,235

 
4,005,045

 
3,803,430

Total segment sales
$
6,569,927

 
$
6,537,676

 
$
18,562,477

 
$
18,129,711

 
 
 
 
 
 
 
 
 
Business Unit Income
 
Business Unit Income
North American Delivery
$
244,997

 
$
224,613

 
$
646,612

 
$
634,550

North American Retail
284,204

 
279,640

 
564,425

 
561,883

International Operations
39,589

 
58,771

 
65,689

 
109,205

Business unit income
568,790

 
563,024

 
1,276,726

 
1,305,638

Stock-based compensation
(35,602
)
 
(39,580
)
 
(117,072
)
 
(109,209
)
Interest and other expense, net
(42,833
)
 
(52,554
)
 
(130,090
)
 
(162,771
)
Integration and restructuring costs
—

 
(9,019
)
 
—

 
(51,545
)
Consolidated income before income taxes
$
490,355

 
$
461,871

 
$
1,029,564

 
$
982,113