Summary of Significant Accounting Policies	9 Months Ended
Sep. 29, 2012
Summary of Significant Accounting Policies	Note A – Summary of Significant Accounting Policies *Basis of Presentation:* Office Depot, Inc., including consolidated subsidiaries (“Office Depot”), is a global supplier of office products and services. Fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. Fiscal year 2011 was a 53-week year. The Condensed Consolidated Balance Sheet at December 31, 2011 has been derived from audited financial statements at that date. The condensed consolidated interim financial statements as of September 29, 2012 and September 24, 2011, and for the 13-week and 39-week periods ended September 29, 2012 (also referred to as “the third quarter of 2012” and the “year-to-date 2012”) and September 24, 2011 (also referred to as “the third quarter of 2011” and the “year-to-date 2011”) are unaudited. However, in our opinion, these financial statements reflect all adjustments of a normal recurring nature necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. Prior period amounts in the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flow for 2011 have been reclassified to correspond to the 2012 disclosure of asset impairments. We have included the balance sheet from September 24, 2011 to assist in analyzing our company. These interim results are not necessarily indicative of the results that should be expected for the full year. For a better understanding of Office Depot and its condensed consolidated financial statements, we recommend reading these condensed interim financial statements in conjunction with the audited financial statements which are included in our Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 28, 2012 with the U.S. Securities and Exchange Commission (“SEC”). *Cash Management:* Our cash management process generally utilizes zero balance accounts which provide for the settlement of the related disbursement accounts and cash concentration on a daily basis. Accounts payable and accrued expenses as of September 29, 2012, December 31, 2011 and September 24, 2011 included $40 million, $50 million and $45 million, respectively, of amounts not yet presented for payment drawn in excess of disbursement account book balances, after considering offset provisions. We may borrow to meet working capital and other needs throughout any given quarter, which may result in higher levels of borrowings and invested cash within the period. At the end of the quarter, excess cash may be used to minimize borrowings outstanding at the balance sheet date. Approximately $149 million of cash and cash equivalents was held outside the U.S. at September 29, 2012. *New Accounting Pronouncements:* There are no recently issued accounting standards that are expected to have a material effect on our financial condition, results of operations or cash flows.

Note A – Summary of Significant Accounting Policies

Basis of Presentation: Office Depot, Inc., including consolidated subsidiaries (“Office Depot”), is a global supplier of office products and services. Fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. Fiscal year 2011 was a 53-week year. The Condensed Consolidated Balance Sheet at December 31, 2011 has been derived from audited financial statements at that date. The condensed consolidated interim financial statements as of September 29, 2012 and September 24, 2011, and for the 13-week and 39-week periods ended September 29, 2012 (also referred to as “the third quarter of 2012” and the “year-to-date 2012”) and September 24, 2011 (also referred to as “the third quarter of 2011” and the “year-to-date 2011”) are unaudited. However, in our opinion, these financial statements reflect all adjustments of a normal recurring nature necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. Prior period amounts in the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flow for 2011 have been reclassified to correspond to the 2012 disclosure of asset impairments. We have included the balance sheet from September 24, 2011 to assist in analyzing our company.

These interim results are not necessarily indicative of the results that should be expected for the full year. For a better understanding of Office Depot and its condensed consolidated financial statements, we recommend reading these condensed interim financial statements in conjunction with the audited financial statements which are included in our Annual Report on Form 10-K for the year ended December 31, 2011, filed on February 28, 2012 with the U.S. Securities and Exchange Commission (“SEC”).

Cash Management: Our cash management process generally utilizes zero balance accounts which provide for the settlement of the related disbursement accounts and cash concentration on a daily basis. Accounts payable and accrued expenses as of September 29, 2012, December 31, 2011 and September 24, 2011 included $40 million, $50 million and $45 million, respectively, of amounts not yet presented for payment drawn in excess of disbursement account book balances, after considering offset provisions. We may borrow to meet working capital and other needs throughout any given quarter, which may result in higher levels of borrowings and invested cash within the period. At the end of the quarter, excess cash may be used to minimize borrowings outstanding at the balance sheet date. Approximately $149 million of cash and cash equivalents was held outside the U.S. at September 29, 2012.

New Accounting Pronouncements: There are no recently issued accounting standards that are expected to have a material effect on our financial condition, results of operations or cash flows.