Division Information

3 Months Ended

Mar. 31, 2012

Division Information [Abstract]

Division Information

Note G – 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
	First Quarter
(In thousands)	2012		2011
North American Retail Division	$	1,219,582	$	1,320,567
North American Business Solutions Division		827,740		806,247
International Division		825,487		846,146
Total	$	2,872,809	$	2,972,960

	Division Operating Profit
	First Quarter
(In thousands)	2012		2011
North American Retail Division	$	44,411	$	57,960
North American Business Solutions Division		42,500		16,241
International Division		15,216		27,305
Total	$	102,127	$	101,506

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

	First Quarter
(In thousands)	2012			2011
Total Division operating profit	$	102,127		$	101,506
Add/(subtract):
Recovery of purchase price		68,314			—
Charges outside of Division operating profit		(8,948	)		(2,309	)
Unallocated general, administrative and corporate expenses, net		(83,803	)		(80,721	)
Interest income		367			599
Interest expense		(14,478	)		(17,987	)
Loss on extinguishment of debt		(12,069	)		—
Miscellaneous income, net		8,979			7,345
Earnings before income taxes	$	60,489		$	8,433

Our Condensed Consolidated Balance Sheet reflects a goodwill balance of approximately $63.7 million, $61.9 million and $62.9 million as of March 31, 2012, December 31, 2011 and March 26, 2011, respectively. The gross amount of goodwill and the amount of accumulated impairment losses as of March 31, 2012 are provided in the following table:

(Dollars in thousands)	North American Retail Division			North American Business Solutions Division			International Division			Total
Goodwill	$	1,842		$	367,790		$	905,602		$	1,275,234
Accumulated impairment losses		(1,842	)		(348,359	)		(863,134	)		(1,213,335	)
Balance as of December 31, 2011		—			19,431			42,468			61,899
2012 Changes:
Goodwill		1,842			367,790			905,602			1,275,234
Accumulated impairment losses		(1,842	)		(348,359	)		(863,134	)		(1,213,335	)
		—			19,431			42,468			61,899
Foreign currency exchange rate changes		—			—			1,751			1,751
Balance as of March 31, 2012	$	—		$	19,431		$	44,219		$	63,650

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 first quarter of 2012 that would change the timing of our annual impairment test.