v2.4.0.6
Segment Reporting
 12 Months Ended
Jan. 28, 2012
Segment Reporting Disclosure [Abstract]  
Segment Reporting
Segment Reporting
Staples has three reportable segments: North American Delivery, North American Retail and International Operations. The North American Delivery segment consists of the U.S. and Canadian businesses that sell and deliver office products and services directly to consumers 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 consumers 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"). The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note A. 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, business unit income, and significant accounts and balances by reportable segment (in thousands):
 
 
2011
 
2010
 
2009
Sales:
 
 
 
 
 
 
North American Delivery
 
$
10,056,011

 
$
9,849,218

 
$
9,640,390

North American Retail
 
9,660,847

 
9,529,757

 
9,364,190

International Operations
 
5,305,334

 
5,166,138

 
5,270,871

Total segment sales
 
$
25,022,192

 
$
24,545,113

 
$
24,275,451

Business Unit Income:
 

 
 
 
 
North American Delivery
 
$
877,867

 
$
841,429

 
$
786,723

North American Retail
 
804,396

 
770,122

 
774,529

International Operations
 
97,993

 
166,606

 
122,028

Business unit income
 
1,780,256

 
1,778,157

 
1,683,280

Depreciation & Amortization:
 

 
 
 
 
North American Delivery
 
$
149,826

 
$
157,960

 
$
175,058

North American Retail
 
199,885

 
217,177

 
229,362

International Operations
 
132,345

 
123,726

 
148,021

Total depreciation & amortization
 
$
482,056

 
$
498,863

 
$
552,441

Capital Expenditures:
 

 
 
 
 
North American Delivery
 
$
131,295

 
$
140,247

 
$
93,309

North American Retail
 
169,652

 
183,828

 
133,161

International Operations
 
82,707

 
84,814

 
86,758

Total capital expenditures
 
$
383,654

 
$
408,889

 
$
313,228


The following is a reconciliation of total business unit income to consolidated income before income taxes (in thousands):
 
 
2011
 
2010
 
2009
Total business unit income
 
$
1,780,256

 
$
1,778,157

 
$
1,683,280

Stock-based compensation
 
(151,822
)
 
(146,879
)
 
(174,691
)
Integration and restructuring costs
 
—

 
(57,765
)
 
(84,244
)
Impact of wage and hour settlement
 
—

 
—

 
(42,000
)
Interest and other expense, net
 
(169,293
)
 
(216,918
)
 
(226,451
)
Consolidated income before income taxes
 
$
1,459,141

 
$
1,356,595

 
$
1,155,894


The following table shows our assets by reportable segment (in thousands):
 
 
January 28, 2012
 
January 29, 2011
 
January 30, 2010
Assets:
 
 
 
 
 
 
North American Delivery
 
$
4,725,434

 
$
4,999,421

 
$
4,998,220

North American Retail
 
3,313,281

 
3,165,648

 
3,145,853

International Operations
 
5,391,907

 
5,746,598

 
5,573,261

Total consolidated assets
 
$
13,430,622

 
$
13,911,667

 
$
13,717,334


The following table shows our sales by each major category as a percentage of total sales for the periods indicated:
 
 
Fiscal Year Ended
 
 
January 28, 2012
 
January 29, 2011
 
January 30, 2010
Office supplies
 
43.9
%
 
43.3
%
 
43.1
%
Services
 
6.0
%
 
5.5
%
 
5.2
%
Office machines and related products
 
30.1
%
 
30.7
%
 
31.3
%
Computers and related products
 
15.0
%
 
15.3
%
 
15.2
%
Office furniture
 
5.0
%
 
5.2
%
 
5.2
%
 
 
100.0
%
 
100.0
%
 
100.0
%

Geographic Information:
 
 
2011
 
2010
 
2009
Sales:
 
 
 
 
 
 
United States
 
$
16,643,255

 
$
16,462,822

 
$
16,343,340

Canada
 
3,073,603

 
2,916,153

 
2,661,238

International
 
5,305,334

 
5,166,138

 
5,270,873

Total consolidated sales
 
$
25,022,192

 
$
24,545,113

 
$
24,275,451

 
 
January 28, 2012
 
January 29, 2011
 
January 29, 2011
Long-lived Assets:
 
 
 
 
 
 
United States
 
$
3,381,719

 
$
3,461,083

 
$
3,561,702

Canada
 
274,679

 
281,555

 
263,761

International
 
2,875,846

 
3,023,609

 
3,028,198

Total consolidated long-lived assets
 
$
6,532,244

 
$
6,766,247

 
$
6,853,661