8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: February 26, 2008

Commission file number 1-10948

OFFICE DEPOT, INC.

(Exact name of registrant as specified in its charter)

Delaware	59-2663954
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
2200 Old Germantown Road, Delray Beach, Florida	33445
(Address of principal executive offices)	(Zip Code)

(561) 438-4800

(Registrant’s telephone number, including area code)

Former name or former address, if changed since last report: N/A

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Attached hereto as Exhibit 99.1.1 and incorporated by reference herein is Office Depot, Inc.’s news release dated February 26, 2008, announcing its financial results for its fiscal fourth quarter and full year 2007. This release also contains forward-looking statements relating to Office Depot’s fiscal year 2008.

This information is furnished pursuant to Item 2.02 of Form 8-K. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

ITEM 7.01 REGULATION FD DISCLOSURE

The latest Investor Relations presentation that management of Office Depot, Inc. (the “Company”) intends to cover in any meetings with shareholders during the quarter is attached to this Current Report on Form 8-K as Exhibit 99.1.2. The presentation provides an overview of the Company, perspective on the office supply market and operating results for the Company’s fourth quarter and full year ended December 29, 2007. In addition, the presentation provides information on strategy, action plans and outlook. The Company will also post the attached materials on its web site (www.OfficeDepot.com) located in the Investor Relations section of that site.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

Exhibit 99.1.1 News release of Office Depot, Inc. issued on February 26, 2008.

Exhibit 99.1.2 Presentation Materials for Investor Relations Conferences for Office Depot, Inc.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	OFFICE DEPOT, INC.
Date: February 26, 2008	By:	/S/ ELISA D. GARCIA C.
		Elisa D. Garcia C.
		Executive Vice President, General Counsel and Corporate Secretary

3

EX-99.1.1

Exhibit 99.01.01

CONTACTS:

Brian Turcotte
Investor Relations
561-438-3657
brian.turcotte@officedepot.com

Brian Levine
Public Relations
561-438-2895
brian.levine@officedepot.com

OFFICE DEPOT ANNOUNCES FOURTH QUARTER RESULTS

Delray Beach, Fla., February 26, 2008 — Office Depot, Inc. (NYSE: ODP), a leading global provider of office products and services, today announced fourth quarter and full year results for the fiscal period ended December 29, 2007.

FOURTH QUARTER RESULTS ¹

Total Company sales for the fourth quarter increased 1% to $3.9 billion. Sales in the North American Retail Division were down 3% with comparable store sales down 7% for the quarter. The North American Business Solutions Division reported a 4% sales decline in the quarter while International Division sales increased 12% in U.S. dollars and 2% in local currencies.

Net earnings were $19 million compared to earnings of $127 million in the same period of 2006. Earnings per share on a diluted basis were $0.07 for the quarter, versus $0.45 in the fourth quarter of 2006. On an adjusted basis, diluted earnings per share were $0.10 for the quarter, versus $0.51 in the same period one year ago.

Total Company operating expenses, as adjusted, represented 26.3% of sales, an increase of 40 basis points over the fourth quarter of 2006. EBIT, as adjusted, was $6 million in the fourth quarter of 2007 or 0.2% as expressed as a percentage of sales, compared to $201 million or 5.2% in the prior-year period.

Results for the quarter included an as adjusted tax benefit of $30 million. The fourth quarter 2007 tax benefit was primarily due to lower North American income and a late quarter tax law change.

Return on Invested Capital for the trailing 4 quarters, adjusted for Charges and Credits, was 11.3%. The Return on Equity adjusted for Charges and Credits for the trailing four quarters was 15.2%.

FOURTH QUARTER DIVISION RESULTS

North American Retail Division

Fourth quarter sales in the North American Retail Division were down 3% at $1.7 billion. Comparable store sales in the 1,158 stores in the U.S. and Canada that have been open for more than one year decreased 7% for the fourth quarter. Results continue to be negatively impacted by difficult housing-related economic conditions in key markets, particularly Florida and California. Combined, these two states represented 26% of total store sales and about 40% of the total comparable sales decrease in the

¹ Includes non-GAAP information. Fourth quarter results include impacts of previously announced programs, a legal settlement and a 2006 gain on building sale (“Charges” or “Charges and Credits”). Additional information is provided in our Form 10-K filing. Reconciliations from GAAP to non-GAAP financial measures can be found in this release, as well as on the corporate web site, www.officedepot.com, under the category Investor Relations.

fourth quarter. This economic weakness has spread to other U.S. retail markets with housing issues, creating additional pressure on sales and margins.

Sales in the Northeast moderated slightly versus the previous quarter, but continued to be the Division’s best performing region in North America despite a limited retail presence in that market. Other drivers negatively impacting comparable sales included cannibalization from the new store build out, competitive intrusion and private brand penetration. The Design, Print and Ship business continued to perform well in the fourth quarter, slightly offsetting the negative drivers.

Operating profit in the North American Retail Division was $23 million for the fourth quarter, a decline from $109 million in the same period of the prior year. Although costs were managed effectively in the fourth quarter, broader economic factors continued to pressure profit margins, which decreased 490 basis points versus the fourth quarter 2006. A number of factors contributed to the operating margin decline, including lower than expected vendor program funding, lower product margins, a de-leveraging of fixed property costs, and higher shrink. Partially offsetting some of the decline was the impact of lower operational expenses.

Comparable average sales per square foot in the fourth quarter decreased to $231 and average order value was up about 2.3% in the fourth quarter.

During the fourth quarter, Office Depot opened 12 new stores and closed 2 stores, bringing the total store count to 1,222. The Company also remodeled 12 stores, bringing the yearly total to 177. As of year end, more than half of the chain was operating under the M2 format.
Inventory per store was $960 thousand as of the end of the fourth quarter of 2007, 3% greater than the same period last year. Average inventory per store during the quarter was $1,030 thousand for the fourth quarter of 2007, flat versus the same period last year.

North American Business Solutions Division

Total sales in the North American Business Solutions Division were $1.1 billion, down 4% compared to the fourth quarter of last year. Sales to small- to mid-sized customers were down 13%. This decrease overshadowed solid sales growth of 5% among large, national account customers and 10% sales growth to the public sector in the fourth quarter. Growth in state government and the K-12 educational sectors have been driving the results in the public sector, both delivering double-digit increases for all four quarters of 2007.

The North American Business Solutions Division had an operating profit of $1 million for the fourth quarter of 2007 compared to $72 million for the same period of the prior year. Operating margins declined by 640 basis points versus the fourth quarter 2006. Contributing factors to the margin decline included a less-favorable customer mix, lower vendor program funding, higher reserves for inventory clearance and returned product, and product cost increases that could not be fully passed through in higher prices.

International Division

The International Division reported a sales increase of 12% in the fourth quarter compared with the same period last year and organic sales in local currency increased by 2%. This marks the eighth consecutive quarter the division has grown the top-line in local currency. In particular, the Contract channel continued its strong performance, growing sales in local currency by 8% in the quarter. This is a reflection of the strength of Office Depot’s global brand with an increasingly global customer base.

Division operating profit was $60 million in the fourth quarter compared to $77 million in the prior year’s fourth quarter. Operating profit margin declined by 230 basis points to 5.3%, from 7.6% in the prior year, as the U.K. business continued to struggle.

Continued overall weakness in the U.K. business accounted for much of the profit decline and operating margin compression. Continued investment, including establishing regional offices in Asia and Latin America, centralization of certain support functions in Europe, green-field business expansion in Poland, and consolidation of warehouse facilities to better support the multi-channel business portfolio in Europe accounted for the remainder of the margin decline. Growth in the large customer segment, which has a lower margin rate than the small- to medium-sized customer segments, drove unfavorable customer mix and compressed overall operating margins as well.

FULL YEAR RESULTS ²

For the full year, sales increased 3% to $15.5 billion. Net earnings for fiscal 2007 were $396 million compared to earnings of $503 million in the same period of 2006. Earnings per share on a diluted basis were $1.43 in 2007 compared to $1.75 in the prior year. The as adjusted diluted earnings per share for fiscal 2007 were $1.54 versus $1.90 in 2006.

For the full year, EBIT, as adjusted, decreased 31% from the prior year and EBIT margins compressed by 180 basis points to 3.5%. The as adjusted effective tax rate for the full year was 15%.

Capital expenditures for 2007 were $461 million. Capital expenditure estimates for 2008 are expected to be around $375 million, reflecting a reduction in the number of planned new store openings from 150 to about 75, approximately 100 M2 store remodels, and investments in the Company’s global supply chain and IT initiatives. The Company will continue to evaluate spending in accordance with operating performance and financial guidelines, and the overall business environment.

In 2007, the Company repurchased approximately 5.7 million shares of its common stock for $200 million. The Company also previously announced that its Board has authorized the repurchase of an additional $500 million of its common stock. Current plans are to repurchase common stock if cash flow permits. Over the past three years, the Company has returned to shareholders about 140% of as adjusted after-tax earnings, 106% of operating cash flow and 140% of net cash flow, excluding share repurchases.

Other Matters

Office Depot is announcing that its Executive Vice President and Chief Financial Officer, Patricia A. McKay, is leaving the Company effective March 1, 2008. Charles E. Brown, the Company’s President, International, has agreed to assume the role of acting Chief Financial Officer following McKay’s departure. Brown was Office Depot’s Executive Vice President and Chief Financial Officer from 2001 to 2005. Office Depot plans to begin its search for a permanent Chief Financial Officer immediately and will announce a successor when this process is completed.

Commenting on McKay’s departure, Steve Odland, Office Depot’s Chief Executive Officer, said: “Pat has made valuable contributions to the Company since joining the management team in 2005. We thank her for her tireless work and dedication to the Company. We also wish her all the best in her future endeavors.”

Additionally, Kim Maguire, Executive Vice President, Merchandising, is leaving at the end of the month for personal reasons. The Company hopes to fill this role quickly.

² Includes non-GAAP information. Full year results include impacts of previously announced programs, a legal settlement and a 2006 gain on building sale (“Charges” or “Charges and Credits”). Additional information is provided in our Form 10-K filing. Reconciliations from GAAP to non-GAAP financial measures can be found in this release, as well as on the corporate web site, www.officedepot.com, under the category Investor Relations.

Non-GAAP Reconciliation

A reconciliation of GAAP results to non-GAAP results excluding certain items is presented in this release and also may be accessed on the corporate website, www.officedepot.com, under the category Company Info.

Conference Call Information

Office Depot will hold a conference call for investors and analysts at 9 a.m. (Eastern Daylight Time) today. The conference call will be available to all investors via Web cast at http://investor.officedepot.com. Interested parties may contact Investor Relations at 561-438-7893 for further information.

About Office Depot

Every day, Office Depot is Taking Care of Business for millions of customers around the globe. For the local corner store as well as Fortune 500 companies, Office Depot provides products and services to its customers through more than 1,600 worldwide retail stores, a dedicated sales force, top-rated catalogs and a $4.9 billion e-commerce operation. Office Depot has annual sales of approximately $15.5 billion, and employs about 49,000 associates around the world. The Company provides more office products and services to more customers in more countries than any other company, and currently sells to customers directly or through affiliates in 43 countries.

Office Depot’s common stock is listed on the New York Stock Exchange under the symbol ODP and is included in the S&P 500 Index. Additional press information can be found at: http://mediarelations.officedepot.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS: The Private Securities Litigation Reform Act of 1995, as amended (the “Act”) provides protection from liability in private lawsuits for “forward-looking” statements made by public companies under certain circumstances, provided that the public company discloses with specificity the risk factors that may impact its future results. We want to take advantage of the “safe harbor” provisions of the Act. Certain statements made in this press release are ‘forward-looking’ statements under the Act.  Except for historical financial and business performance information, statements made in this press release should be considered ‘forward-looking’ as referred to in the Act.  Much of the information that looks towards future performance of our company is based on various factors and important assumptions about future events that may or may not actually come true. As a result, our operations and financial results in the future could differ materially and substantially from those we have discussed in the forward-looking statements made in this press release. Certain risks and uncertainties are detailed from time to time in our filings with the United States Securities and Exchange Commission (“SEC”).  You are strongly urged to review all such filings for a more detailed discussion of such risks and uncertainties. The Company’s SEC filings are readily obtainable at no charge at www.sec.gov and at www.freeEDGAR.com, as well as on a number of other commercial web sites.

OFFICE DEPOT, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)

	As of			As of
	December 29,			December 30,
	2007			2006
Assets
Current assets:
Cash and cash equivalents	$	222,954		$	173,552
Receivables, net		1,511,681			1,480,316
Inventories		1,717,662			1,539,685
Deferred income taxes		120,162			131,977
Prepaid expenses and other current assets		143,255			116,931
Total current assets		3,715,714			3,442,461
Property and equipment, net		1,588,958			1,424,967
Goodwill		1,282,457			1,198,886
Other intangible assets		107,987			114,289
Other assets		561,424			376,835
Total assets	$	7,256,540		$	6,557,438
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable	$	1,591,154		$	1,561,784
Accrued expenses and other current liabilities		1,170,775			1,224,565
Income taxes payable		3,491			135,448
Short-term borrowings and current maturities of long-term debt		207,996			48,130
Total current liabilities		2,973,416			2,969,927
Deferred income taxes and other long-term liabilities		576,254			403,289
Long-term debt, net of current maturities		607,462			570,752
Minority interest		15,564			16,023
Commitments and contingencies
Stockholders’ equity:
Common stock — authorized 800,000,000 shares of $.01 par value; issued and outstanding shares — 428,777,625 in 2007 and 426,177,619 in 2006		4,288			4,262
Additional paid-in capital		1,784,184			1,700,976
Accumulated other comprehensive income		495,916			295,253
Retained earnings		3,783,805			3,370,538
Treasury stock, at cost — 155,819,358 shares in 2007 and 149,778,235 shares in 2006		(2,984,349	)		(2,773,582	)
Total stockholders’ equity		3,083,844			2,597,447
Total liabilities and stockholders’ equity	$	7,256,540		$	6,557,438

OFFICE DEPOT, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)

	13 Weeks Ended						52 Weeks Ended
	December 29,			December 30,			December 29,			December 30,
	2007			2006			2007			2006
Sales	$	3,866,927		$	3,843,030		$	15,527,537		$	15,010,781
Cost of goods sold and occupancy costs		2,844,391			2,655,929			11,024,639			10,363,437
Gross profit		1,022,536			1,187,101			4,502,898			4,647,344
Store and warehouse operating and selling expenses		851,985			862,296			3,381,129			3,296,443
Asset impairments		—			7,450			—			7,450
General and administrative expenses		183,546			173,582			645,661			651,696
Gain and amortization of deferred gain on sale of building		(1,874	)		(21,432	)		(7,493	)		(21,432	)
Operating profit (loss)		(11,121	)		165,205			483,601			713,187
Other income (expense):
Interest income		3,228			382			9,440			9,828
Interest expense		(13,093	)		(7,693	)		(63,080	)		(40,830	)
Loss on extinguishment of debt		—			(5,715	)		—			(5,715	)
Miscellaneous income, net		3,739			10,119			28,672			30,565
Earnings (loss) before income taxes		(17,247	)		162,298			458,633			707,035
Income taxes		(36,021	)		35,714			63,018			203,564
Net earnings	$	18,774		$	126,584		$	395,615		$	503,471
Earnings per common share:
Basic	$	0.07		$	0.46		$	1.45		$	1.79
Diluted		0.07			0.45			1.43			1.75
Weighted average number of common shares outstanding:
Basic		272,204			274,895			272,899			281,618
Diluted		273,309			280,351			275,940			287,722

OFFICE DEPOT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	52 Weeks Ended
	December 29,			December 30,
	2007			2006
Cash flow from operating activities:
Net earnings	$	395,615		$	503,471
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		281,383			279,005
Charges for losses on inventories and receivables		109,798			85,610
Net earnings from equity method investments		(34,825	)		(27,125	)
Compensation expense for share-based payments		37,738			39,889
Deferred income tax provision		(1,022	)		(15,847	)
Gain on disposition of assets		(25,190	)		(23,948	)
Asset impairments		—			7,450
Other operating activities		2,927			(1,704	)
Changes in assets and liabilities:
Decrease (increase) in receivables		25,909			(128,558	)
Increase in inventories		(191,685	)		(155,955	)
Net increase in prepaid expenses and other assets		(12,342	)		(23,212	)
Net (decrease) increase in accounts payable, accrued expenses and other long-term liabilities		(176,921	)		287,999
Total adjustments		15,770			323,604
Net cash provided by operating activities		411,385			827,075
Cash flows from investing activities:
Purchases of short-term investments		—			(961,450	)
Sales of short-term investments		—			961,650
Acquisitions, net of cash acquired, and related payments		(48,036	)		(248,319	)
Capital expenditures		(460,571	)		(343,415	)
Proceeds from disposition of assets and other		129,182			106,381
Dividends received		25,000			—
Restricted cash for pending transaction		(18,100	)		—
Net cash used in investing activities		(372,525	)		(485,153	)
Cash flows from financing activities:
Net proceeds from exercise of stock options and sale of stock under employee stock purchase plans		29,332			101,034
Tax benefit from employee share-based exercises		18,266			43,355
Acquisition of treasury stock under approved repurchase plans		(199,592	)		(970,640	)
Treasury stock additions from employee related plans		(11,201	)		(12,796	)
Proceeds from issuance of borrowings		177,413			8,494
Payments on long- and short-term borrowings		(6,292	)		(58,545	)
Net cash provided by (used in) financing activities		7,926			(889,098	)
Effect of exchange rate changes on cash and cash equivalents		2,616			17,531
Net increase (decrease) in cash and cash equivalents		49,402			(529,645	)
Cash and cash equivalents at beginning of period		173,552			703,197
Cash and cash equivalents at end of period	$	222,954		$	173,552

OFFICE DEPOT, INC.
Comparative Trailing Four Quarters Data and
GAAP to Non-GAAP Reconciliations
(Unaudited)

Total Company

	Trailing 4 Quarters
	December 29,			December 30,
(Dollars in millions)	2007			2006			Change
Sales	$	15,527.5		$	15,010.8			3	%
EBIT1	$	512.2		$	738.0			-31	%
% of sales		3.3	%		4.9	%	-160		bps
EBIT — as adjusted1	$	550.7		$	802.1			-31	%
% of sales		3.5	%		5.3	%	-180		bps
Net earnings	$	395.6		$	503.5			-21	%
Net earnings — as adjusted1	$	423.8		$	545.7			-22	%
Diluted Earnings Per Share	$	1.43		$	1.75			-18	%
Diluted Earnings Per Share — as adjusted1	$	1.54		$	1.90			-19	%
EBITDA — as adjusted1	$	813.7		$	1,060.8			-23	%
% of sales		5.2	%		7.1	%	-190		bps
Return on Equity (ROE) — as adjusted1		15.2	%		21.4	%	-620		bps
Return on Invested Capital (ROIC) — as adjusted 1		11.3	%		15.4	%	-410		bps
Average shares		275.9			287.7			-4	%

¹ EBIT and EBITDA are non-GAAP financial measures; EBIT — as adjusted and EBITDA — as adjusted exclude the Charges. (bps = basis points)

The Company is committed to measuring and reporting results in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, management also recognizes that some financial measures other than those prepared in accordance with GAAP (“non-GAAP”) can provide meaningful and useful information about performance and allow for an informed assessment of possible future performance. Certain non-GAAP performance measures (e.g. EBIT and ROIC) are used to determine variable pay awards throughout our Company.

Non-GAAP measures in these tables exclude certain charges (“Charges”) that are important and required under GAAP but that may not clearly convey the on-going results of operating the business during the period. These measures also exclude a gain on sale of a building and a legal settlement, both recognized in the fourth quarter of 2006.

OFFICE DEPOT, INC.
GAAP to Non-GAAP Reconciliations

The non-GAAP numbers presented along with the most closely related GAAP numbers, and the reconciliations are provided in the following tables. ($ in millions)

							Charges
				% of			and Other					% of
Q4 2007	GAAP			Sales			Adjustments			Non-GAAP		Sales
Gross Profit	$	1,022.5			26.4	%	$	0.1		$	1,022.6		26.4	%
Operating Expenses	$	1,033.6			26.7	%	$	(13.6	)	$	1,020.0		26.3	%
Operating Profit (Loss)	$	(11.1	)		-0.3	%	$	13.7		$	2.6		0.1	%
Net Earnings	$	18.8			0.5	%	$	7.8		$	26.6		0.7	%
Diluted Earnings Per Share	$	0.07					$	0.03		$	0.10

						Charges
			% of			and Other					% of
Q4 2006	GAAP		Sales			Adjustments			Non-GAAP		Sales
Gross Profit	$	1,187.1		30.9	%	$	0.2		$	1,187.3		30.9	%
Operating Expenses	$	1,021.9		26.6	%	$	(25.9	)	$	996.0		25.9	%
Operating Profit	$	165.2		4.3	%	$	26.1		$	191.3		5.0	%
Net Earnings	$	126.6		3.3	%	$	16.7		$	143.3		3.7	%
Diluted Earnings Per Share	$	0.45				$	0.06		$	0.51

						Charges
			% of			and Other					% of
YTD 2007	GAAP		Sales			Adjustments			Non-GAAP		Sales
Gross Profit	$	4,502.9		29.0	%	$	0.3		$	4,503.2		29.0	%
Operating Expenses	$	4,019.3		25.9	%	$	(38.2	)	$	3,981.1		25.6	%
Operating Profit	$	483.6		3.1	%	$	38.5		$	522.1		3.4	%
Net Earnings	$	395.6		2.5	%	$	28.2		$	423.8		2.7	%
Diluted Earnings Per Share	$	1.43				$	0.11		$	1.54

						Charges
			% of			and Other					% of
YTD 2006	GAAP		Sales			Adjustments			Non-GAAP		Sales
Gross Profit	$	4,647.3		31.0	%	$	0.9		$	4,648.2		30.9	%
Operating Expenses	$	3,934.1		26.2	%	$	(57.5	)	$	3,876.6		25.8	%
Operating Profit	$	713.2		4.8	%	$	58.4		$	771.6		5.1	%
Net Earnings	$	503.5		3.4	%	$	42.2		$	545.7		3.6	%
Diluted Earnings Per Share	$	1.75				$	0.15		$	1.90

Office Depot, Inc.
DIVISION INFORMATION
(Unaudited)

North American Retail Division

	Fourth Quarter						Year-to-Date
(Dollars in millions)	2007			2006			2007			2006
Sales	$	1,667.7		$	1,723.2		$	6,813.6		$	6,789.4
% change		-3	%		—	%		—	%		4	%
Division operating profit	$	23.5		$	109.3		$	354.5		$	454.3
% of sales		1.4	%		6.3	%		5.2	%		6.7	%

North American Business Solutions Division

	Fourth Quarter						Year-to-Date
(Dollars in millions)	2007			2006			2007			2006
Sales	$	1,064.7		$	1,110.5		$	4,518.4		$	4,576.8
% change		-4	%		1	%		-1	%		6	%
Division operating profit	$	0.8		$	71.9		$	220.1		$	367.0
% of sales		0.1	%		6.5	%		4.9	%		8.0	%

International Division

	Fourth Quarter						Year-to-Date
(Dollars in millions)	2007			2006			2007			2006
Sales	$	1,134.6		$	1,009.4		$	4,195.6		$	3,644.6
% change		12	%		13	%		15	%		5	%
% change in local currency sales		2	%		13	%		6	%		7	%
Division operating profit	$	59.6		$	76.8		$	231.1		$	249.2
% of sales		5.3	%		7.6	%		5.5	%		6.8	%

Division operating profit excludes Charges from the Division performance, as those Charges are evaluated at a corporate level.

Office Depot, Inc.
SELECTED FINANCIAL AND OPERATING DATA
(Unaudited)

Other Selected Financial Information

	52 Weeks Ended		52 Weeks Ended
	December 29,		December 30,
(In thousands, except operational data)	2007		2006
Cumulative share repurchases under approved repurchase plans ($):	$	199,592	$	970,640
Cumulative share repurchases under approved repurchase plans (shares):		5,702		26,417
Shares outstanding, end of quarter		272,958		276,399
Amount authorized for future share repurchases, end of quarter ($):	$	500,000

Selected Operating Highlights

	13 Weeks Ended				52 Weeks Ended
	December 29,		December 30,		December 29,		December 30,
	2007		2006		2007		2006
Store Statistics
United States and Canada:
Store count:
Stores opened		12		39		71		115
Stores closed		2		2		7		4
Stores relocated		2		2		3		7
Total U.S. and Canada stores		1,222		1,158		1,222		1,158
North American Retail Division square footage:		29,790,082		28,520,269
Average square footage per NAR store		24,378		24,629
Inventory per store (end of period)	$	960,000	$	935,000
International Division company-owned:
Store count:
Stores opened		5		5		26		13
Stores closed		1		—		3		—
Stores acquired		—		—		—		42
Total International company-owned stores		148		125		148		125

EX-99.1.2

Exhibit 99.01.02

Investor Presentation February / March 2008

Safe Harbor Statement The Private Securities Litigation Reform Act of 1995 (the "Act") provides protection from liability in private lawsuits for "forward-looking" statements made by public companies under certain circumstances, provided that the public company discloses with specificity the risk factors that may impact its future results. We want to take advantage of the "safe harbor" provisions of the Act. Certain statements made during this presentation are 'forward-looking' statements under the Act. Except for historical financial and business performance information, statements made during this presentation should be considered 'forward-looking' as referred to in the Act. Much of the information that looks towards future performance of our company is based on various factors and important assumptions about future events that may or may not actually come true. As a result, our operations and financial results in the future could differ materially and substantially from those we have discussed in the forward-looking statements made during this presentation. Certain risks and uncertainties are detailed from time to time in our filings with the United States Securities and Exchange Commission ("SEC"). You are strongly urged to review all such filings for a more detailed discussion of such risks and uncertainties. This presentation may refer to results which are not GAAP numbers. A reconciliation of non-GAAP numbers to GAAP results is available on our web site at www.officedepot.com.

Industry Perspective

U.S. Office Products Industry CAGR '02-'06 3.0% 3.4% 2.8% Source: SHOPA School and Office Products Industry - 2007 / Office Depot Estimates 2002 2003 2004 2005 2006 Retail 189 194 199 206 211 Delivery 105 108 112 117 120 Retail $189B Retail $194B Retail $199B Delivery $105B Delivery $108B Delivery $113B $294B $302B $312B Retail $206B Delivery $117B Retail $211B Delivery $120B $323B $331B Market is large and growing. We began to see some cyclicality from a weakening macroeconomic environment beginning in early 2007.

U.S. Office Products Industry Source: SHOPA School and Office Products Industry - 2007 / Office Depot Estimates Note: Figures may not add to 100% due to rounding Retail Specialty Retailers 0.203 Office Superstores 0.098 Mass Retailers 0.178 Food/Drug Stores 0.016 College/Bookstores 0.036 Copy/Printing Services 0.034 Internet/Direct Sales 0.03 Independent Dealers 0.063 Contract Specialists 0.21 Contract Stationers 0.013 Other 0.119 O.S.S. Independent Dealers Specialty Stores Food/Drug Stores Other Contract Stationers Mass Retailers ODP 3.4% SPLS 4.0% OMX 2.3% 2006 OSS Market Share Contract Specialists College/Bookstores Copy/Printing Services Internet/Direct Sales OSS comprise a small portion of the overall U.S. office supply industry

Office Depot Overview

Investor Relations Update History of creating value for our shareholders Over the past three years, we have returned to shareholders about 140% of our as adjusted after-tax earnings, 106% of our operating cash flow and 140% of our net cash flow, excluding share repurchases Recognized the need to improve our shareholder communication effort Hired an investor relations professional with corporate IR and buy-side investment experience in August 2007 Engaged an investor relations firm to conduct an investor perception study in third quarter 2007 Hosting an investor / sell-side analyst conference in 2008

Office Depot Overview Office Depot is a leading global provider of office products and services Annual sales of approximately $15.5 billion Sells to customer directly and through affiliates in 43 countries Multi-channel - stores, catalog, Internet and contract Three divisions using multi-channel capabilities to serve business customers of any size, from SOHO to Fortune 500 accounts North American Retail - Over 1,200 stores in U.S. and Canada North American Business Solutions - catalog, contract and e-commerce International - catalog, contract, e-commerce, and retail One of the world's largest e-commerce retailers - $4.9 billion in sales2 Provides office products and related services1 Supplies - 63% of sales Technology - 26% of sales Furniture and Other - 11% of sales Note: 12007 total Company sales mix by product category. "Furniture" refers to "Furniture, low tech, and other" as more fully described in our 2007 annual report on Form 10-K. 2 Trailing 12 months

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 East Office Depot Timeline Founded in Florida with the first store opening in Fort Lauderdale, FL Listed on the NASDAQ under the symbol "ODEP" Listed on the NYSE under the symbol "ODP" Acquired The Great Canadian Office Supplies warehouse chain Acquired six additional contract stationers in North America Opened licensed Office Depot stores in Colombia and Israel. Announced retail joint venture agreement in Mexico and licensing agreement in Poland Entered the contract stationer business via the acquisition of two industry leaders: Wilson Stationery & Printing Company and Eastman Office Products Corporation Staples / Office Depot merger fails Merged with Viking Office Products, the leading direct marketer of office products in Europe and Australia Office Depot added to S&P 500 Acquired Guilbert S.A., a leading European contract stationer, doubling the size of the Company's European business Acquired Allied Office Products, Best Office Co., Ltd., Papirius, and AsiaEC Acquired Axidata, a Canada-based office products delivery company Completed merger with Office Club Inc.

Acquisition Integration Dates Viking Office Products 1998 - Office Depot merged with Viking Office Products. Viking Office Products became a wholly owned subsidiary of Office Depot 2004 - Began consolidation of Viking brand into Office Depot catalog channel September 2005 - Office Depot announced plans to close the domestic operations of its Viking Office Products business and merged it within its Office Depot operations Guilbert S.A. June 2003 - Acquired Guilbert S.A., a leading European contract stationer 2005 - Integrated the former Guilbert operations and customers into Office Depot and Viking operations 2006 - Integrated the Guilbert brand into the Office Depot brand 2007 - Systems and back office still separate. Numerous and potentially redundant distribution centers still exist. Allied Office Products May 2006 - Acquired Allied Office Products, an independent dealer of office products and services Dec 2006 - Integration of Allied Office Products acquisition was substantially completed

State of the Business

Office Depot Issues 2004 Functionally-aligned organization with no divisional leadership Limited growth opportunities Duplicate costs due to non-integrated systems IT systems in disarray and impeding growth Non-integrated acquisitions, most running independently with duplicate overhead, multiple strategies and few synergies. Minimal process definition and sophistication Duplicate supply chain Operating margin gap versus largest competitor and no plan to close gap Stagnant growth Losing market share Aging stores and no plans to improve / standardize store format. Many versions of a new store format had been attempted but none finalized or proven 700 different store sets and at least five different retail formats - inconsistency in shopping experience and service, and lack of differentiation Resulted in $385M in charges from inception through the end of 2007

Office Depot Focus 2005 - 2006 North American Retail Improve North American retail profitability while continuing store build out program Finalize the format for the remodeled stores (M2 design proven by first quarter 2006) and make improvements that fuel productivity Improve service in stores North American Business Solutions Profitably grow market share organically and through acquisitions Expand large contract sales, add sales force Complete Viking integration Expand product / service portfolio International Improve profitability by growing European contract business, tightening cost control Initiate use of telephone account managers to acquire new customers in Europe Integrate various operations around the globe Expand geographic reach into developing areas

Strategic Priorities 2008 - Taking Care of Business North American Retail Improving product value offerings to micro-business customers Growing loyalty programs Enhancing service offerings to complement product offerings North American Business Solutions Developing a customer contact strategy Redesigning the telephone account management (TAM) program Implementing margin-enhancement initiatives International Executing an action plan to improve performance in the U.K. Maintaining a sharp focus on execution to improve productivity in existing businesses Leveraging global sourcing to increase direct import and private brand penetration in Europe and Asia

Outlook First quarter 2008 outlook Sales to date still remain sluggish in the U.S. and U.K. First and second quarter margins should be improved versus the fourth quarter 2007 Earnings per share most likely down versus prior year for the first half 2008 Cutting spending and shoring up margins while funding necessary labor levels in the stores; taking care of customers for the long run Longer term, business model can deliver improved results Mid-single digit top-line growth Mid-teens earnings per share growth Total margin expansion of up to 300 basis points from our key initiatives possible

Global Margin Improvement

EBIT 04 SL05 EBIT 05 SL 06 Shortfall EBIT 06 SL 1 07 Volume 07 F3 07 Saule 1 576 654 802 802 551 Saule 2 576 654 802 551 Saule 3 50 488 366 0 110 380 Column 4 28 26 26 2004 Mix / Margin Investment 2006 2007 Global Margin Improvement Initiative Progress (2004 -2007) Global margin improvement initiative progress was mostly offset by margin compression due to promotional pricing and sales mix shift Streamline / Volume 2005 Streamline / Volume Mix / Margin Investment Streamline EBIT Margin 4.6% 5.3% 3.5% 4.2%

Normalized Private Brand Direct Import Centralization Supply Chain Procurement IT Conversion Mix / Margin Investment 2012 East 4.6 4.6 6.1 7.3 7.9 7.6 7.6 1.5 1.2 0.6 0.4 0.7 +150bps +120bps +60bps +40bps - -70bps 2012 Global Margin Improvement Initiative Identified 300 basis points of potential margin improvement through the implementation of the global initiative ~5% ~8% EBIT Margin

Global Margin Improvement Initiative Projects In-Progress Leverage Global Spend BSD Pricing Global Tenders NA Consolidation and Harmonization of Financial Services in Eastern Europe (Pre-IT and post-IT) Global Direct Import Consolidation and Harmonization of Call Centers in Europe Global Negotiations with Large Vendors Increase Scan-Based Trading Penetration European CDC Micro Matte Lighting Reflector Private Brand Credit Card Global Tenders Europe Pro Fees Reduction Furniture Destroy No Credit Dynamic Routing Health Care Redesign Inventory Life Cycle Management Optimize Coupon Offers Worklife Rewards Reward Restructure Mail-in Rebate Program Revision Insurance Opportunities DPS Automation Store Satellite Delivery Model Legal Entity Consolidation Increase Percentage of Electronic Orders Globally

North American Supply Chain Initiative Currently have two separate North American supply chains 12 cross docks serving North American Retail 21 distribution centers serving North American Business Solutions 7.2M square feet over 33 buildings Plan to convert to 12 combination facilities with about 7M square feet and capacity for approximately 9M square feet to accommodate growth Each facility will have pick/pack and flow through capability to optimize service for Retail and Business Solutions Move from three warehouse management systems to one Development period of six years as current leases expire or capacity needs arise New buildings to be leased

International Supply Chain Initiative Over the next 3-5 years, expect to reduce supply chain network from 22 to 15 facilities Consolidate to one warehouse management system from seven systems Improve global supply chain expense as a percent of sales by 2012 50 basis points improvement

Information Technology Initiative IT Environment IT environment costly and complex due to historical legacy and acquired systems, major acquisitions in 1998 and 2003, multiple channels and no single integrated system 23 SKU databases 12 Customer databases/order management systems 13 Warehouse operating systems Multiple hardware platforms and software packages Redundant IT teams around the world to support duplicative platforms and applications Initiative To simplify, consolidate, globalize and standardize processes and practices, and support them with common applications and platforms The project is based on a global Oracle ERP system that replaces many separate platforms Office Depot utilized to run the entire corporation Narrow the Company's many different warehouse management systems to one Benefits Reduce IT costs as a percent of sales from current level of 1.7% and, coupled with other benefits, reduce costs by 40 bps+ over the next 3 to 5 years Enable easier integration of future business expansions and acquisitions Provide a consistent customer experience across the globe Provide better information and tools

North American Retail

North American Retail - Key Issues Margin erosion Macroeconomic impact - small business customer slowdown

North American Retail - Results & Variance Analysis Sales were down 3% and comparable store sales were 7% lower in the fourth quarter 2007 Operating profit of $23 million versus $109 million one year ago as broader economic factors continued to challenge profit margins Lower product margins due to promotional holiday season, sales mix, and inventory clearance Providing highest level of customer service - CSI scores increased year-over-year and sequentially Operating Margin Q4 2006 6.3% Vendor program funding -200 bps Product margins -140 bps Fixed property de-leveraging -100 bps Inventory shrink -75 bps Other +25 bps Q4 2007 1.4%

Vendor Program Funding Two types of agreements Annual purchase Over-and-above Fourth quarter 2007 impacts Annual purchase agreements: the Company did not hit the pre- determined purchase tiers as a result of softer sales and disciplined inventory management Pulling back purchases for 2007 severely impacted fourth quarter results for North American Retail and North American BSD About $30 million of the impact was a true up Over-and-above agreements: vendors also experiencing difficult sales environment, negatively impacting their participation in discretionary marketing investments

2004 2005 2006 2007 2004 2005 2006 Q3'07 YTD 2004 2005 2006 2007 7.6% 8.2% 10.6% 5.5% 5.0% 6.7% 6.4% 5.4% -4.4% 3.5% -7.3% 5.7% 68 79 111 64 68 96 98 88 -41 31 -68 49 68 147 258 322 68 164 262 350 -41 -10 -78 -29 Sq. Ft. Growth Net Stores Opened Cumulative Net Stores Opened North American OSS Store Trends Store Count Office Depot Staples OfficeMax Source: Store counts are from respective Annual Reports or Quarter-end reports. New store openings are based on the difference between the total number of stores of prior year. Staples Q3 2007 YTD store count is based on Office Depot market estimates. North American locations includes Canada, Puerto Rico, and US Virgin Islands. The source for Staples and OfficeMax square footage growth data is Goldman Sachs research and Office Depot estimates.

1,222 total stores at the end of 2007 71 opened, 7 closed Reducing the number of new store openings Targeting about 75 stores in 2008 M2 format store remodels 177 remodels completed in 2007 Targeting about 100 remodels in 2008 2005 2006 2007 2008E New Stores 100 115 71 75 M2 Format Stores 120 411 645 820 North American Retail - Store Growth New Stores Opened M2 Format Stores

North American Retail - M2 Store Remodels $225K - $250K per store, much could be considered maintenance 645 stores were in M2 format as of year-end 2007 Majority of remaining stores to be remodeled in next few years M2 remodeled stores expect to exceed hurdle rate Cumulative sales performance is slightly up versus control stores IMU positive versus control stores 2007 remodels performing better than 2006 remodels Easier to operate and improved customer experience with low site lines and complete storewide visibility

Increasing Private Brand Penetration and Direct Sourcing Increasing Private Brand Penetration and Direct Sourcing Increasing Private Brand Penetration and Direct Sourcing Increasing Private Brand Penetration and Direct Sourcing Increasing Private Brand Penetration and Direct Sourcing Expand Within Categories Expand to New Categories Direct Sourcing Build Brands Opened Global Sourcing Office in Shenzhen, China Office in Shenzhen, China Office in Shenzhen, China Private branded products can contribute 500 to 1,000 bps to gross margin over comparable, nationally branded products. Direct import provides additional contribution

North American Retail - Market Share1 Q4 2006 Q4 2007 $ share 0.362 0.356 Unit share 0.414 0.455 In fourth quarter 2007, market share trends in core categories were mixed Unit market share increased in all months within the office supply market versus the same period a year ago Furniture had positive dollar and unit share growth, with strong unit growth in seating and lighting Design, Print and Ship business, which had positive comparable sales for the quarter, also posted market share gains year-over-year in both dollars and units Dollar market share was down slightly, driven primarily by technology, as the office supply competition continued to intensify their technology offerings Office supplies were down slightly on both a dollar and unit share basis versus the prior year; although, successfully grew ink and toner unit share 1 The NPD Group data

Completed (New) Houses For Sale at end of month Houses: Median Number of Months For Sale Econometric Model Actual vs. Predicted Residuals Downturn in office supplies sales tracks closely to housing accelerated downturn in 2007 Jan02 Nov07 Jan02 Nov07 Independent econometric analysis shows housing industry performance correlated to sales Jan02 Nov07 Macro Economic Conditions

Florida and California totaled 26% of total store sales and about 40% of the total comparable sales decline in the fourth quarter 2007

North American Retail - Pricing Strategy Expand lower entry price points to improve value perception with very small business customer Offer a low-price guarantee which includes matching competitor pricing on identical products Utilize a category management framework supported by our price optimization solution, which helps us understand true customer demand and set prices across an entire category Customers can take advantage of significant savings across a wide range of products through various programs Buy More & Save Private Brands Worklife Rewards(tm)

North American Retail - Labor Strategy Designed to provide the appropriate levels of coverage in the following areas: Customer service (sales floor assistance) Tasks (receiving, stocking, planograms, cashiers, etc.) Management (Store, Assistant and Department Managers) Payroll is allocated using labor standard derived from time studies Payroll allocation will fluctuate based on changes in sales volume and activities A staffing model is used to staff a store with an appropriate mix of full-time, part-time and management associates Customer service index increased sequentially during fourth quarter 2007 and achieved its highest levels since the program was introduced in 2002

North American Retail - Taking Care of Business Focusing on improving product value offerings for our micro-business customers, especially in core supplies: Having the products in stock to meet customer demand Modifying assortment to deliver increased value Growing loyalty program to provide a stronger value proposition for our micro-business customers: Successfully relaunched Worklife RewardsTM customer loyalty program in third quarter 2007 Launched Worklife RewardsTM Visa card in November Enhancing service offerings to complement product assortment: DPS experienced sales growth in fourth quarter 2007 Tech Depot service became available at the customers' work or home locations in fourth quarter 2007

North American Business Solutions

North American Business Solutions - Key Issues Direct channel - losing sales in small-sized customer base Former Allied customer and key sales people recovery continues Largest but lowest margin customers have been growing at the fastest rate Coverage and retention issues exist with small- to medium- sized customers Existing incentive system limits accountability and P&L responsibility Strong focus on acquiring new customers but not enough emphasis on growing positions with existing customers Sales organization is often engaged in non-productive activities Need more effective marketing

North American BSD - Results & Variance Analysis Sales were down 4% in the fourth quarter 2007 Sales to small- to mid-size customers down 13% Partially offset by 5% sales growth with large, national account customers and 10% growth in sales to public sector Operating profit of $1 million versus $72 million one year ago Operating Margin Q4 2006 6.5% Customer mix -230 bps Vendor program funding -220 bps Inventory clearance reserves & returned product -160 bps Product cost increases -80 bps Other +50 bps Q4 2007 0.1%

North American BSD - Taking Care of Business Developing a detailed contact strategy to optimize penetration of existing customers: Pilot is underway, targeting national rollout in third quarter 2008 Direct marketing program redesign underway: Launched new telephone account management (TAM) structure and strategy Revising catalog marketing strategy Improving on-line marketing efficiency and effectiveness Implementing specific margin-enhancement initiatives that expect to show results early in 2008: Placing stricter controls on account-level pricing decisions Piloting simplified customer price plans

Customer Segmentation / Strategies Micro customers: 1-9 employees Retail action plan Small customers: 10-20 employees Remix catalog products / pricing Remodel catalog mailing depth and frequency Fix telephone account management (TAM) Add telephone account managers Add third party sales force "Feet on the Street"

Customer Segmentation / Strategies (continued) Medium customers: 20-100 employees Remodel catalog mailing depth and frequency Add telephone account managers Add third party sales force "Feet on the Street" Add prospecting from business development managers (BDM's) Add solutions Large customers: 100+ employees Contract Prioritize BDM activities Refocus account managers to deepen share of wallet Add solutions

International

International - Key Issues Margin erosion U.K. performance - Early signs of economic slowdown

International - Results & Variance Analysis Sales were up 12% in the fourth quarter 2007 Local currency organic sales were up 2% Operating profit was $60 million versus $77 million one year ago due primarily to weaker U.K. performance Operating Margin Q4 2006 7.6% U.K. performance -105 bps Investment spending -85 bps Customer mix -40 bps Q4 2007 5.3%

International - Global Strategy Evaluating emerging market growth opportunities Would consider partners with local expertise No large acquisition - too much integration risk

International - Taking Care of Business Improving service in the U.K. and adjusting to a slowing economy Isolated some controllable issues related to delivery service levels and are taking corrective steps Rolling out certain technology solutions throughout our distribution and transportation operations Expand share of wallet among small users Improving productivity in existing businesses Successfully transitioned the first wave of back-office accounting functions (U.K.) to shared service center in Eastern Europe Continued progress on consolidation of European call centers Consolidating distribution center footprint in Europe Leveraging Global Sourcing Office to increase direct import and drive private brand penetration in Europe and Asia Central Distribution Center launched in Europe Received first containers of goods from China in December Expect benefits to ramp through the year

Financial Results / Capital Structure

Financial Guidelines Drive profitable growth Increase free cash flow and margins Culture of thrift Streamline operations Disciplined capital management Economic value added mindset

Financial Model Base Case Mid- to upper- single digit top-line growth Very low single digit North American Retail comps Some gross margin expansion Some expense leverage Share buybacks with excess cash flow Solid mid-teens EPS growth Upside Store expansion Contract sales force and telephone account manager growth Category management Private brand expansion Direct sourcing acceleration Cost containment efforts Leverage from supply chain cost control

Capital Structure (in billions, except ratios) 2007 Long-Term Debt, Net $0.6 Imputed Debt (using 8x rent) $4.2 Total Adjusted Debt $4.8 Adjusted Debt / Enterprise Value 57% Adjusted Debt / Total Capital 61%

Why not lever up and buy back shares? Engaged four different investment banking firms to analyze capital structure and they advised management to maintain current structure for multiple reasons Funding cost is lower - lower interest expense Access to more sources of liquidity - long term bond markets Less restrictive covenants and no call on assets More flexibility to fund internal growth, share repurchases and acquisitions Lower operating lease costs Business has proven to be cyclical - need more flexibility

Capital Spending Summary 2004 2005 2006 2007 2008E East 391 261 343 461 375 New NAR Stores & M2 Remodels Global Supply Chain & IT Initiatives Maintenance & Other East 37.9 44.9 17 $ millions

Capital Spending Summary 2004 2005 2006 2007 2008E East 1.45 0.97 1.23 1.64 1.33 2004 2005 2006 2007 2008E East 0.029 0.018 0.023 0.03 0.024 Note: 2007 D&A used for 2008 estimate Note: Consensus estimates used for 2008 sales Industry Average1 Industry Average1 1 Average of 16 retailers for 2006

in millions, except ratios, returns and per share data Q4 2007 Q4 2007 Q4 2006 Q4 2006 B/W B/W Amount % Sales Amount % Sales % bps Sales $3,867 -- $3,843 -- 1% -- Operating Expense1 $1,020 26.3% $ 996 25.9% -2% -40 bps EBIT1 $ 6 0.2% $ 201 5.2% -97% -500 bps Net Earnings1 $ 27 0.7% $ 143 3.7% -81% -300 bps Net Earnings - GAAP $ 19 0.5% $ 127 3.3% -85% -280 bps Diluted Shares 273.3 -- 280.4 -- -3% -- EPS - GAAP $ 0.07 -- $ 0.45 -- -84% -- EPS1 $ 0.10 -- $ 0.51 -- -80% -- 1Non-GAAP numbers. A reconciliation of GAAP to non-GAAP numbers can be found on the Office Depot web site at www.officedepot.com. Consolidated Financials - Fourth Quarter 2007

in millions, except ratios, returns and per share data 2007 2007 2006 2006 B/W B/W Amount % Sales Amount % Sales % bps Sales $15,528 -- $ 15,011 -- 3% -- EBIT1 $ 551 3.5% $ 802 5.3% -31% -180 bps Net Earnings1 $ 424 2.7% $ 546 3.6% -22% -90 bps Net Earnings - GAAP $ 396 2.5% $ 503 3.4% -21% -90 bps Diluted Shares 275.9 -- 287.7 -- -4% -- EPS - GAAP $ 1.43 -- $ 1.75 -- -18% -- EPS1 $ 1.54 -- $ 1.90 -- -19% -- ROIC1 11.3% -- 15.4% -- -- -410 bps ROE1 15.2% -- 21.4% -- -- -620 bps 1Non-GAAP numbers. A reconciliation of GAAP to non-GAAP numbers can be found on the Office Depot web site at www.officedepot.com. 2007 Financial Summary

in millions Q4 Q4 Q4 2007 2006 Program to Date 2008 2009 Total Income Statement Charges $ 15 $ 31 $ 385 $ 62 $ 23 $ 470 Cash Flow Impact Cash $ 12 $ 9 $ 131 $ 47 $ 22 $ 200 Non-Cash $ 3 $ 22 $ 254 $ 15 $ 1 $ 270 Charges During the third quarter of 2005, we announced a number of material charges relating to asset impairments, exit costs and other operating decisions (the "Charges"). This announcement followed a wide-ranging assessment of assets and commitments which began in the second quarter of 2005. We indicated that these actions would continue to impact our results for several years, and expenses associated with future activities would be recognized as the individual plans are implemented and the applicable accounting recognition criteria are met. As with any estimate, the amounts may change when expenses are incurred.

Cash Flow Highlights in millions 2007 2006 % Change Net Cash Provided by Operating Activities $ 411 $ 827 -50% Depreciation & Amortization $ 281 $ 279 1% EBITDA1 $ 814 $ 1,061 -23% CAPEX $ 461 $ 343 34% Free Cash Flow (Use) - Before Share Repurchases $ -50 $ 484 -110% Share Repurchases $ 200 $ 971 -79% Acquisitions $ 48 $ 248 -81% 1Non-GAAP numbers. A reconciliation of GAAP to non-GAAP numbers can be found on the Office Depot web site at www.officedepot.com.

Balance Sheet Highlights in millions, except ratios and returns 2007 2006 % Change Inventory Per Store (end of period) $ 0.960 $ 0.935 3% Inventories $ 1,718 $ 1,540 12% Working Capital1 $ 727 $ 347 110% Working Capital as a % of Sales2 3.5% 2.5% 100 bps Net Debt (end of period) $ 593 $ 445 33% Return on Invested Capital, Adjusted3 11.3% 15.4% -410 bps Return on Equity, Adjusted3 15.2% 21.4% -620 bps 1 WC = (current assets - cash and short-term investments) - (current liabilities - current maturities of long-term debt) 2 WC as % of Sales = ((WC Q4 current year + WC Q4 prior year) / 2) / Trailing four quarter sales 3 Non-GAAP numbers. A reconciliation of GAAP to non-GAAP numbers can be found on the Office Depot web site at www.officedepot.com.