Division Information

9 Months Ended

Sep. 24, 2011

Division Information [Abstract]

Division Information

Note E – Division Information

Office Depot operates in three segments: North American Retail Division, North American Business Solutions Division, and International Division. The following is a summary of our significant accounts and balances by segment (or "Division"), reconciled to consolidated totals.

	Sales
	Third quarter				Year-to-Date
(In thousands)	2011		2010		2011		2010
North American Retail Division	$	1,232,692	$	1,280,081	$	3,633,384	$	3,728,520
North American Business Solutions Division		820,864		841,824		2,430,431		2,492,678
International Division		783,181		777,812		2,456,023		2,449,964
Total	$	2,836,737	$	2,899,717	$	8,519,838	$	8,671,162

	Division Operating Profit
	Third quarter				Year-to-Date
(In thousands)	2011		2010		2011		2010
North American Retail Division	$	41,904	$	29,662	$	102,363	$	111,288
North American Business Solutions Division		39,145		25,073		100,370		59,328
International Division		19,460		29,670		59,862		90,171
Total	$	100,509	$	84,405	$	262,595	$	260,787

A reconciliation of the measure of Division operating profit to consolidated earnings before income taxes is as follows:

	Third quarter				Year-to-Date
(In thousands)	2011		2010		2011		2010
Total Division operating profit	$	100,509	$	84,405	$	262,595	$	260,787
Unallocated general and administrative expenses		(77,309)		(74,580)		(229,874)		(223,517)
Unallocated corporate expenses		(4,083)		(1,512)		(11,239)		(1,050)
Interest income		317		2,513		1,158		3,493
Interest expense		17,306		(6,093)		(19,512)		(40,456)
Miscellaneous income, net		5,536		11,189		19,869		21,969
Earnings before income taxes	$	42,276	$	15,922	$	22,997	$	21,226

During the first quarter of 2011, the company acquired Svanströms Gruppen (Frans Svanströms & Co AB), an entity that sells office supplies and services in Sweden. The operations and assets of this entity have been included in the International Division since acquisition. See Note L.

Our Condensed Consolidated Balance Sheet as of September 24, 2011 reflects a goodwill balance of approximately $61.6 million, and on each of December 25, 2010 and September 25, 2010, a balance of approximately $19.4 million. The gross amount of goodwill and the amount of accumulated impairment losses as of September 24, 2011 are provided in the following table:

(Dollars in thousands)	North American Retail Division		North American Business Solutions Division		International Division		Total
Balance as of December 26, 2009
Goodwill	$	1,842	$	367,790	$	863,134	$	1,232,766
Accumulated impairment losses		(1,842)		(348,359)		(863,134)		(1,213,335)
Balance as of December 25, 2010		—		19,431		—		19,431
2011 Changes:
Goodwill acquired during the year		—		—		45,805		45,805
Foreign currency exchange rate changes		—		—		(3,628)		(3,628)
Balance as of September 24, 2011	$	—	$	19,431	$	42,177	$	61,608

The company's accounting policy is to test for goodwill impairment during the fourth quarter each year but, should events occur or circumstances change, that more likely than not would reduce a reporting unit's fair value below its carrying value, that test would be accelerated. No substantive indicators have been identified through the end of the third quarter of 2011 that would change the timing of our annual impairment test.