v2.4.0.6
Segment Reporting
 3 Months Ended
Apr. 28, 2012
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 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 and a reconciliation of business unit income to consolidated income before income taxes for the first quarter of 2012 and 2011 (in thousands):
 
 
13 Weeks Ended
 
April 28, 2012
 
April 30, 2011
 
Sales
North American Delivery
$
2,555,071

 
$
2,511,646

North American Retail
2,323,831

 
2,328,085

International Operations
1,225,923

 
1,333,207

Total segment sales
$
6,104,825

 
$
6,172,938

 
 
 
 
 
Business Unit Income (Loss)
North American Delivery
$
200,959

 
$
196,850

North American Retail
166,955

 
177,349

International Operations
(18,770
)
 
9,524

Business unit income
349,144

 
383,723

Stock-based compensation
(31,088
)
 
(35,396
)
Interest and other expense, net
(40,999
)
 
(46,522
)
Consolidated income before income taxes
$
277,057

 
$
301,805