v2.4.0.6
Segment Reporting
 9 Months Ended
Oct. 27, 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 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 in 23 countries in Europe, Australia, South America and Asia that operate stores and that sell and deliver office products and services directly to consumers and businesses.

As discussed in Note E - Discontinued Operations, the Company has classified PSD, which was formerly part of the International Operations segment, as a discontinued operation. Accordingly, the segments measures for International Operations have been recast to exclude PSD for all periods presented.
 
Staples evaluates performance and allocates resources based on profit or loss from operations before goodwill and long-lived asset impairment charges, restructuring charges, stock-based compensation, interest and other expense, other 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 third quarter and year-to-date 2012 and 2011 (in thousands):
 
 
13 Weeks Ended
 
39 Weeks Ended
 
October 27, 2012
 
October 29, 2011
 
October 27, 2012
 
October 29, 2011
 
Sales
North American Delivery
$
2,609,034

 
$
2,582,729

 
$
7,576,860

 
$
7,527,592

North American Retail
2,646,554

 
2,656,612

 
6,959,524

 
7,029,840

International Operations
1,097,552

 
1,241,682

 
3,276,146

 
3,733,014

Total segment sales
$
6,353,140

 
$
6,481,023

 
$
17,812,530

 
$
18,290,446

 
 
 
 
 
 
 
 
 
Business Unit Income (Loss)
North American Delivery
$
227,736

 
$
244,997

 
$
614,462

 
$
646,612

North American Retail
285,477

 
284,204

 
540,846

 
564,425

International Operations
(1,692
)
 
35,641

 
(27,114
)
 
70,985

Business unit income
511,521

 
564,842

 
1,128,194

 
1,282,022

Stock-based compensation
(27,276
)
 
(35,602
)
 
(90,406
)
 
(117,072
)
Impairment of goodwill and long-lived assets
(810,996
)
 
—

 
(810,996
)
 
—

Restructuring charges
(30,396
)
 
—

 
(30,396
)
 
—

Interest and other expense, net
(40,882
)
 
(42,808
)
 
(123,413
)
 
(129,988
)
(Loss) income from continuing operations before income taxes
$
(398,029
)
 
$
486,432

 
$
72,983

 
$
1,034,962



The following table shows our assets by reportable segment (in thousands):
 
 
October 27, 2012
 
January 28, 2012
Assets:
 
 
 
 
North American Delivery
 
$
4,611,883

 
$
4,725,434

North American Retail
 
3,139,352

 
3,313,281

International Operations
 
4,214,801

 
5,391,907

Total segment assets
 
$
11,966,036

 
$
13,430,622

Current assets of discontinued operations
 
185,949

 
—

Total consolidated assets
 
$
12,151,985

 
$
13,430,622