Staples, Inc. annonce ses résultats pour le troisième trimestre 2012

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Staples, Inc. (Nasdaq : SPLS) a annoncé aujourd'hui ses résultats pour le troisième trimestre, clos au 27 octobre 2012. Le total des ventes de la société au troisième trimestre 2012 s'élevait à 6,4 milliards de dollars, en recul de 2 % en dollars américains et de 1 % en devise locale par rapport au troisième trimestre 2011. Suite à l'annonce des charges précédemment faite, sur une base GAAP, la société a enregistré une perte nette de 569 millions de dollars, soit 0,85 dollar par action, dans le cadre des activités poursuivies attribuables à Staples, Inc., comparé au revenu net de 324 millions de dollars, soit 0,46 dollars par action diluée, enregistré au troisième trimestre 2011. En excluant les écarts d'acquisition et autres biens, ainsi que la restructuration, l'amortissement accéléré et les frais fiscaux encourus au troisième trimestre 2012, la société a généré un revenu net, sur une base non-GAAP, d'un montant de 310 millions de dollars, soit 0,46 dollar par action diluée, dans le cadre des activités poursuivies attribuables à Staples, Inc.

« Au cours du troisième trimestre, nous avons lancé un nouveau plan stratégique qui devrait nous permettre de nous imposer en tant que référence produit auprès des entreprises, de restructurer notre organisation et générer de solides revenus hors charges »

Synthèse financière du troisième trimestre 2012

(dollar amounts in millions, except per share data)		Q3 2012		Q3 2011		Year over Year Change
Total company sales		$6,353		$6,481		-2.0%
Total company sales growth on a local currency basis*						-1.4%
GAAP operating (loss) income		($357)		$529		($886)
Non-GAAP operating income*		$500		$529		($29)
GAAP operating (loss) income rate		(5.62%)		8.17%		(1,379 basis points)
Non-GAAP operating income rate*		7.87%		8.17%		(30 basis points)
GAAP (loss) income per share from continuing operations attributable to Staples, Inc.		($0.85)		$0.46		($1.31)
Non-GAAP earnings per diluted share from continuing operations attributable to Staples, Inc.*		$0.46		$0.46		$0.00

*Indicates a non-GAAP measure. Refer to “Presentation of Non-GAAP Information” and the accompanying reconciliations for more detailed information about these non-GAAP measures. Non-GAAP operating income, non-GAAP operating income rate, and non-GAAP earnings per diluted share from continuing operations attributable to Staples, Inc. exclude the impact of Q3 2012 charges related to the impairment of goodwill and other assets, restructuring charges and accelerated tradename amortization. Non-GAAP earnings per diluted share from continuing operations attributable to Staples, Inc. also excludes Q3 2012 tax charges. In total, these charges negatively impacted Q3 2012 GAAP earnings per share from continuing operations attributable to Staples, Inc. by $1.31.

« Au cours du troisième trimestre, nous avons lancé un nouveau plan stratégique qui devrait nous permettre de nous imposer en tant que référence produit auprès des entreprises, de restructurer notre organisation et générer de solides revenus hors charges », a déclaré Ron Sargent, Chairman and Chief Executive Officer de Staples. « Notre position est aujourd'hui bien plus forte, ce qui nous permettra de tirer pleinement parti de nos meilleures opportunités de croissance. »

La marge d'exploitation totale, sur une base non-GAAP, de l'entreprise a reculé de 30 points de base et se situe aujourd'hui à 7,87 %, contre 8,17 % au troisième trimestre 2011. Ce recul s'explique en grande partie par un rétrécissement des marges sur les produits en Amérique du Nord et à l'international, ainsi que la réalisation d'investissements afin de soutenir la croissance de Staples.com. Il a été partiellement compensé par la réduction des charges sur les rémunérations et des dépenses marketing.

La société a généré un flux de trésorerie provenant des activités d'exploitation de 895 millions de dollars, dont 204 millions ont été consacrés à ce jour à des dépenses d'investissement, ce qui a permis de dégager un flux de trésorerie disponible de 691 millions de dollars depuis le début de l'exercice. La société a racheté 9,4 millions d'actions pour un montant de 111 millions de dollars au troisième trimestre 2012 et 27,4 millions d'actions pour un montant de 362 millions de dollars depuis le début de l'exercice. Elle a également remboursé 325 millions de dollars correspondant à l'arrivée à échéance d'une obligation au 1er octobre 2012. À la fin du troisième trimestre, la société disposait de 2,2 milliards de dollars de trésorerie, dont 1 milliard de dollars en liquidités et équivalents.

North American Delivery

Les ventes de North American Delivery au troisième trimestre 2012 se sont élevées à 2,6 milliards de dollars, en hausse de 1 % par rapport au troisième trimestre 2011. Ce résultat, en partie masqué par la perte précédemment annoncée de deux gros clients au cours du troisième trimestre 2011, s'explique principalement par la croissance du secteur des fournitures pour services généraux, des espaces de détente et des services de copie et d'impression. La résultat d'exploitation a diminué de 76 points de base par rapport au troisième trimestre 2011 et se situe aujourd'hui à 8,73 %. Ce recul, partiellement contrebalancé par la réduction des dépenses marketing, traduit un rétrécissement des marges sur les produits ainsi que la réalisation d'investissements afin de soutenir la croissance de Staples.com.

North American Retail

Les ventes de North American Retail, établies à 2,6 milliards de dollars, sont restées stables par rapport au troisième trimestre 2011. Les ventes en magasin, à nombre de jours comparable, ont reculé de 1 % au troisième trimestre 2012 en raison d'une baisse de 2 % de la fréquentation et de l'augmentation de 1 % du montant moyen des commandes par rapport à l'exercice précédent. Le recul des ventes d'ordinateurs et de logiciels a été quelque peu compensé par la croissance des services de copie et d'impression et des fournitures de bureau, notre cœur de métier. Le résultat d'exploitation s'élève à 10,79 % en augmentation de 9 points de base par rapport au troisième trimestre 2011. Cette progression, en partie absorbée par des investissements réalisés dans des activités promotionnelles, traduit essentiellement une réduction des dépenses d'exploitation et un renforcement de l'efficacité de la distribution.

Opérations internationales

Le volume de ventes enregistré par nos activités internationales a atteint 1,1 milliard de dollars au troisième trimestre, soit une baisse de 12 % en dollars américains et de 8 % en devise locale par rapport au troisième trimestre 2011. Ces résultats reflètent la faiblesse des ventes en Europe et en Australie. La faiblesse de l'économie a entraîné un ralentissement des activités de vente à distance ainsi qu'un recul de 6 % des ventes en magasin, à nombre de jours comparable, sur le continent européen. Le résultat d'exploitation a diminué de 302 points de base par rapport au troisième trimestre 2011 et se traduit par une perte établie àde 0,15 %. En excluantles 16 millions de dollars attribués à l'amortissement accéléré de l'appellation commerciale australienne au cours du troisième trimestre, le résultat d'exploitation atteint aujourd'hui 1,27 %, soit une diminution de 160 points de base par rapport à l'exercice précédent. Ce recul, partiellement compensé par les économies réalisées suite à la réduction des effectifs en Europe et en Australie, s'explique en grande partie par le poids des coûts fixes en Europe et en Australie, ainsi que par une contraction des marges sur les produits en Europe.

Activités abandonnées

Au cours du troisième trimestre 2012, la société a enregistré une perte après impôt de 28 millions de dollars dans le cadre de ses activités abandonnées dans le secteur des systèmes d'impression en Europe, dont 23 millions de dollars de charges liées à la restructuration et à l'augmentation des charges fiscales. Ce résultat est à mettre en parallèle avec le revenu net de 3 millions de dollars généré par les activités abandonnées au troisième trimestre 2011.

Prévisions

Les prévisions financières de la société tiennent compte de l'impact de la 53e semaine de l'exercice 2012, ainsi que des fluctuations des taux de change des monnaies étrangères. La société table sur une stabilité de ses ventes par rapport à l'exercice précédent. Elle prévoit également d'enregistrer une croissance inférieure à 5 % des bénéfices dilués par action non-GAAP générés dans le cadre des activités poursuivies, dont le montant s'élevait à 1,37 dollar en 2011. Les estimations des bénéfices dilués par action non-GAAP ne tiennent pas compte des charges enregistrées au cours du troisième trimestre 2012, ni des charges avant impôts, comprises entre 160 et 200 millions de dollars environ, précédemment annoncées et liées à la restructuration européenne, la fermeture de magasins aux États-Unis et l'amortissement accéléré de l'appellation commerciale australienne que la société prévoit d'enregistrer au quatrième trimestre 2012.

La société s'attend à générer un flux de trésorerie disponible de plus de 1 milliard de dollars et envisage de poursuivre le rachat de ses actions ordinaires sur le marché ouvert, dont le montant total devrait atteindre environ 450 millions de dollars au cours de l'année 2012.

Presentation of Non-GAAP Information

This press release presents certain results with and without the impact of charges incurred during the third quarter of 2012 related to the impairment of goodwill and other assets, restructuring charges, accelerated tradename amortization, and the establishment of valuation allowances, net of tax benefits. This press release also presents certain results for 2011 and 2012 both with and without the impact of fluctuations in foreign currency exchange rates, and the impact of a tax refund in 2011. The presentation of results that excludes these items, as well as the presentation of free cash flow, are non-GAAP financial measures that should be considered in addition to, and should not be considered superior to, or as a substitute for, the presentation of results determined in accordance with GAAP. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the accompanying tables of financial information. Management believes that the non-GAAP financial measures enable management and investors to understand and analyze the company’s performance by providing meaningful information relevant to certain events and foreign currency fluctuations that impact the comparability of underlying business results from period to period. Management has adjusted for impairment of goodwill and other assets, which relates to the company’s European retail and catalog businesses, and accelerated tradename amortization, which relates to rebranding of the company’s Australian business, because such charges are non-cash and because the timing and amount of such charges are inconsistent and cannot be predicted or planned for. Management has adjusted for restructuring charges, which relate to severance and other costs associated with European restructuring and the planned closure of retail stores in the U.S., and the establishment of valuation allowances, which relates to previously recorded deferred tax assets in the company’s European retail and catalog businesses, because the exclusion of such amounts facilitates the comparison of the company’s financial results to its historical operating results. Management uses these non-GAAP financial measures to evaluate the operating results of the company’s business against prior year results and its operating plan, and to forecast and analyze future periods. Management recognizes there are limitations associated with the use of non-GAAP financial measures as they may reduce comparability with other companies that use different methods to calculate similar non-GAAP measures. Management generally compensates for the limitations resulting from the exclusion of these items by considering the impact of these items separately in GAAP as well as non-GAAP results. In addition, management presents the most comparable GAAP measures ahead of non-GAAP measures and provides a reconciliation that indicates and describes the adjustments made.

Téléconférence de ce jour

Aujourd'hui à 8h00 (ET), la société tiendra une téléconférence afin de procéder à l'examen de ces résultats et de ses prévisions. Les investisseurs peuvent l'écouter sur http://investor.staples.com.

À propos de Staples

Staples est le premier fournisseur mondial de matériel et de fournitures de bureau et un acteur de choix dans les solutions de bureau. La société fournit ses clients en produits et services et apporte son expertise dans les segments suivants : fournitures de bureau, copie et impression, technologies, services généraux et espaces de détente et mobilier. Staples a inventé le concept d'hypermarché de l'univers bureautique en 1986 et affiche actuellement un chiffre d'affaires annuel de 25 milliards de dollars, se classant au deuxième rang des ventes mondiales par Internet. Avec 88 000 collaborateurs dans le monde entier, Staples fournit des entreprises et des clients de toutes tailles dans 26 pays en Amérique du Nord et du Sud, en Europe, en Asie et en Australie. Le siège du groupe se trouve dans la banlieue de Boston. Plus d'informations à propos de Staples (Nasdaq: SPLS) sur www.staples.com/media.

Certain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995 including, but not limited to, the information set forth under “Outlook” and other statements regarding our future business and financial performance. Any statements contained in this news release that are not statements of historical fact should be considered forward-looking statements. You can identify these forward-looking statements by the use of the words “believes”, “expects”, “anticipates”, “plans”, “may”, “will”, “would”, “intends”, “estimates”, and other similar expressions, whether in the negative or affirmative. Forward-looking statements are based on a series of expectations, assumptions, estimates and projections which involve substantial uncertainty and risk, including the review of our assessments by our outside auditor and changes in management’s assumptions and projections. Actual results may differ materially from those indicated by such forward-looking statements as a result of risks and uncertainties, including but not limited to: global economic conditions could adversely affect our business and financial performance; we face uncertainties in connection with the implementation of our strategies to transform our business; we have recognized substantial goodwill impairment charges in the current period and may be required to recognize additional goodwill impairment charges in the future; our market is highly competitive and we may not be able to continue to compete successfully; if the products and services that we offer fail to meet our customer needs, our performance could be adversely affected; we may be unable to continue to enter new markets successfully; our international operations expose us to risks inherent in foreign operations; failure to manage growth and our operations successfully could adversely affect our financial results; our effective tax rate may fluctuate; fluctuations in foreign exchange rates could lead to lower earnings; we may be unable to attract, train, engage and retain qualified associates; our quarterly operating results are subject to significant fluctuation; our indebtedness could adversely affect us by reducing our flexibility to respond to changing business and economic conditions; our expanded offering of proprietary branded products may not improve our financial performance and may expose us to intellectual property liability, product liability, import/export liability, government investigations and claims, and other risks associated with global sourcing; problems in our information systems and technologies may disrupt our operations; compromises of our information systems or unauthorized access to confidential information or our customers’ or associates’ personal information may materially harm our business or damage our reputation; our business may be adversely affected by the actions of and risks associated with third-party vendors and service providers; various legal proceedings may adversely affect our business and financial performance; failure to comply with laws, rules and regulations could negatively affect our business operations and financial performance; and those factors discussed or referenced in our most recent quarterly report on Form 10-Q filed with the SEC, under the heading “Risk Factors” and elsewhere, and any subsequent periodic or current reports filed by us with the SEC. In addition, any forward-looking statements represent our estimates only as of the date such statements are made (unless another date is indicated) and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

Les informations financières suivront.

STAPLES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollar Amounts in Thousands, Except Share Data)
(Unaudited)
		October 27, 2012				January 28, 2012
ASSETS
Current assets:
Cash and cash equivalents		$	1,020,043			$	1,264,149
Receivables, net		1,892,390				2,033,680
Merchandise inventories, net		2,417,366				2,431,845
Deferred income tax assets		281,481				305,611
Prepaid expenses and other current assets		286,119				255,535
Current assets of discontinued operations		185,949				—
Total current assets		6,083,348				6,290,820
Property and equipment:
Land and buildings		1,009,754				1,034,983
Leasehold improvements		1,332,450				1,330,373
Equipment		2,526,041				2,462,351
Furniture and fixtures		1,100,325				1,084,358
Total property and equipment		5,968,570				5,912,065
Less: Accumulated depreciation		4,052,158				3,831,704
Net property and equipment		1,916,412				2,080,361
Intangible assets, net of accumulated amortization		395,504				449,781
Goodwill		3,169,260				3,982,130
Other assets		587,461				627,530
Total assets		$	12,151,985			$	13,430,622
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	2,170,422			$	2,220,414
Accrued expenses and other current liabilities		1,326,441				1,414,721
Debt maturing within one year		119,046				439,143
Current liabilities of discontinued operations		143,911				—
Total current liabilities		3,759,820				4,074,278
Long-term debt		1,541,786				1,599,037
Other long-term obligations		671,650				735,094
Stockholders’ equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized; no shares issued		—				—
Common stock, $.0006 par value, 2,100,000,000 shares authorized; issued and outstanding 929,838,181 and 674,178,263 shares at October 27, 2012 and 922,126,579 shares and 695,743,547 shares at January 28, 2012, respectfully		558				553
Additional paid-in capital		4,661,932				4,551,299
Accumulated other comprehensive loss		(380,313		)		(319,743		)
Retained earnings		6,688,614				7,199,060
Less: Treasury stock at cost, 255,659,918 shares at October 27, 2012 and 226,383,032 shares at January 28, 2012		(4,799,238		)		(4,416,018		)
Total Staples, Inc. stockholders’ equity		6,171,553				7,015,151
Noncontrolling interests		7,176				7,062
Total stockholders’ equity		6,178,729				7,022,213
Total liabilities and stockholders’ equity		$	12,151,985			$	13,430,622

STAPLES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income
(Amounts in Thousands, Except Per Share Data)
(Unaudited)
		13 Weeks Ended								39 Weeks Ended
		October 27, 2012				October 29, 2011				October 27, 2012				October 29, 2011
Sales		$	6,353,140			$	6,481,023			$	17,812,530			$	18,290,446
Cost of goods sold and occupancy costs		4,601,286				4,660,041				13,040,678				13,319,460
Gross profit		1,751,854				1,820,982				4,771,852				4,970,986
Operating expenses:
Selling, general and administrative		1,237,196				1,275,785				3,673,598				3,756,593
Impairment of goodwill and long-lived assets		810,996				—				810,996				—
Restructuring charges		30,396				—				30,396				—
Amortization of intangibles		30,413				15,957				60,466				49,443
Total operating expenses		2,109,001				1,291,742				4,575,456				3,806,036
Operating (loss) income		(357,147		)		529,240				196,396				1,164,950
Other (expense) income:
Interest income		1,249				1,774				4,251				5,662
Interest expense		(40,343		)		(40,906		)		(124,195		)		(131,422		)
Other expense		(1,788		)		(3,676		)		(3,469		)		(4,228		)
(Loss) income from continuing operations before income taxes		(398,029		)		486,432				72,983				1,034,962
Income tax expense		170,703				162,712				323,780				331,155
(Loss) income from continuing operations, including the portion attributable to the noncontrolling interests		(568,732		)		323,720				(250,797		)		703,807
Discontinued Operations:
(Loss) income from discontinued operations, net of income taxes		(27,559		)		2,610				(38,084		)		(3,495		)
Consolidated net (loss) income		(596,291		)		326,330				(288,881		)		700,312
Loss attributed to the noncontrolling interests		(39		)		(50		)		(119		)		(751		)
(Loss) income attributed to Staples, Inc.		$	(596,252	)		$	326,380			$	(288,762	)		$	701,063
Amounts attributable to Staples, Inc.
(Loss) income from continuing operations		$	(568,693	)		$	323,770			$	(250,678	)		$	704,558
(Loss) income from discontinued operations		(27,559		)		2,610				(38,084		)		(3,495		)
(Loss) income attributed to Staples, Inc.		$	(596,252	)		$	326,380			$	(288,762	)		$	701,063
Basic Earnings Per Common Share:
Continuing operations attributed to Staples, Inc.		$	(0.85	)		$	0.47			$	(0.37	)		$	1.01
Discontinued operations attributed to Staples, Inc.		(0.04		)		—				(0.06		)		(0.01		)
Net (loss) income attributed to Staples, Inc.		$	(0.89	)		$	0.47			$	(0.43	)		$	1.00
Diluted Earnings Per Common Share:
Continuing operations attributed to Staples, Inc.		$	(0.85	)		$	0.46			$	(0.37	)		$	1.00
Discontinued operations attributed to Staples, Inc.		(0.04		)		0.01				(0.06		)		(0.01		)
Net (loss) income attributed to Staples, Inc.		$	(0.89	)		$	0.47			$	(0.43	)		$	0.99
Dividends declared per common share		$	0.11			$	0.10			$	0.33			$	0.30

Condensed Consolidated Statements of Comprehensive Income
		13 Weeks Ended								39 Weeks Ended
		October 27, 2012				October 29, 2011				October 27, 2012				October 29, 2011
Comprehensive (loss) income from continuing operations		$	(437,206	)		$	241,953			$	(310,544	)		$	804,720
Comprehensive (loss) income from discontinued operations		(24,438		)		1,553				(38,674		)		(37		)
Comprehensive (loss) income from consolidated operations		$	(461,644	)		$	243,506			$	(349,218	)		$	804,683
Comprehensive income (loss) attributed to noncontrolling interests		128				96				114				(399		)
Comprehensive (loss) income attributed to Staples, Inc.		$	(461,772	)		$	243,410			$	(349,332	)		$	805,082
Weighted Average Shares Outstanding:
Basis		$	666,989			$	691,205			$	673,366			$	698,813
Diluted		$	666,989			$	698,009			$	673,366			$	708,028

STAPLES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Dollar Amounts in Thousands)
(Unaudited)
		39 Weeks Ended
		October 27, 2012				October 29, 2011
Operating Activities:
Consolidated net (loss) income, including loss from the noncontrolling interests		$	(288,881	)		$	700,312
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		301,840				311,190
Amortization of intangible assets		60,466				49,443
Impairment of goodwill and long-lived assets		810,996				—
Stock-based compensation		90,406				117,072
Excess tax benefits from stock-based compensation arrangements		(179		)		(1,023		)
Deferred income tax expense		68,915				127,328
Other		(932		)		19,828
Changes in assets and liabilities:
Decrease (increase) in receivables		10,622				(118,920		)
Increase in merchandise inventories		(40,094		)		(146,023		)
(Increase) decrease in prepaid expenses and other assets		(65,109		)		58,692
Increase in accounts payable		31,188				103,474
Decrease in accrued expenses and other liabilities		(40,855		)		(133,249		)
(Decrease) increase in other long-term obligations		(42,997		)		7,508
Net cash provided by operating activities		895,386				1,095,632
Investing Activities:
Acquisition of property and equipment		(204,163		)		(243,740		)
Proceeds from the sale of property and equipment		9,500				—
Acquisition of businesses, net of cash acquired		(1,941		)		—
Net cash used in investing activities		(196,604		)		(243,740		)
Financing Activities:
Proceeds from the exercise of stock options		26,039				32,989
Proceeds from borrowings		70,031				214,669
Payments on borrowings		(423,303		)		(789,931		)
Purchase of noncontrolling interest		(5,651		)		(3,591		)
Cash dividends paid		(221,682		)		(209,604		)
Excess tax benefits from stock-based compensation arrangements		179				1,023
Purchase of treasury stock, net		(383,220		)		(512,496		)
Net cash used in financing activities		(937,607		)		(1,266,941		)
Effect of exchange rate changes on cash and cash equivalents		(4,640		)		14,156
Net decrease in cash and cash equivalents		(243,465		)		(400,893		)
Cash and cash equivalents at beginning of period		1,264,149				1,461,257
Cash and cash equivalents at end of period		$	1,020,684			$	1,060,364
Less: Cash and cash equivalents attributed to discontinued operations		(641		)		—
Cash and cash equivalents at the end of the period attributed to continuing operations		$	1,020,043			$	1,060,364

STAPLES, INC. AND SUBSIDIARIES
Segment Reporting
(Dollar Amounts in Thousands)
(Unaudited)
		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

STAPLES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Income Statement Disclosures
(Dollar Amounts in Thousands, Except Per Share Data)
(Unaudited)
		13 Weeks Ended
		October 27, 2012
						Adjustments
		As Reported				Impairment of Goodwill and Long-Lived Assets (1)				Restructuring Charges (2)				Accelerated trade-name amortization (3)				Non-GAAP
Operating (loss) income		$	(357,147	)		$	810,996			$	30,396			$	15,599			$	499,844
Interest and other expense, net		(40,882		)														(40,882		)
(Loss) income from continuing operations before income taxes		$	(398,029	)														$	458,962
Income tax expense		$	170,703															$	170,703
Adjustments (4)		—																(21,541		)
Adjusted income tax		$	170,703															$	149,162
(Loss) income from continuing operations		$	(568,732	)														$	309,800
Loss attributed to the noncontrolling interests		(39		)														(39		)
(Loss) income from continuing operations attributed to Staples, Inc.		$	(568,693	)														$	309,839
Effective Tax Rate		(42.9		)%														32.5		%
Per share (loss) income from continuing operations attributed to Staples, Inc:
Basic and diluted earnings per common share		$	(0.85	)														$	0.46
Weighted average common shares outstanding		666,989																666,989
Effect of dilutive securities		—																4,354
Weighted average common shares outstanding assuming dilution		666,989																671,343

(1) Consists of goodwill impairment charges of $468.1 million and $303.3 million related to the Company's Europe Catalog and Europe Retail reporting units, respectively, and $39.5 million for the write-down of fixed assets primarily related to the planned closure and consolidation of certain operations.

(2) Restructuring charges include $19.2 million for severance and benefits and $11.2 million of other associated costs related to the planned closure of 46 retail stores and the consolidation of certain sub-scale delivery businesses in Europe.

(3) Relates to a strategic decision to transition from using the legacy Corporate Express tradename in the Company's Australian business to the exclusive use of the Staples tradename.

(4) The $21.5 million adjustment to income tax expense in 2012 relates to the establishment of valuation allowances for previously recorded deferred tax assets as a result of the planned closure and consolidation of certain operations in the Company's Europe Retail and Europe Catalog reporting units, net of tax benefits related to the impairment and restructuring charges and accelerated tradename amortization.

STAPLES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Income Statement Disclosures
(Dollar Amounts in Thousands, Except Per Share Data)
(Unaudited)
		52 Weeks Ended
		January 28, 2012
		As revised to present discontinued operations				Adjustments				Non-GAAP
Income from continuing operations before income taxes		$	1,464,644			$	—			$	1,464,644
Income tax expense		477,247				20,800				498,047
Income (loss) from continuing operations, including the portion attributable to the noncontrolling interests		987,397				(20,800		)		966,597
Discontinued Operations:										—
Loss from discontinued operations, net of tax benefit		(3,564		)		—				(3,564		)
Consolidated net income (loss)		983,833				(20,800		)		963,033
Loss attributed to the noncontrolling interests		(823		)		—				(823		)
Net income (loss) attributed to Staples, Inc.		$	984,656			$	(20,800	)		$	963,856
Amounts attributable to Staples, Inc.
Income (loss) from continuing operations		$	988,220			$	(20,800	)		$	967,420
Loss from discontinued operations		(3,564		)						(3,564		)
Net income (loss) attributed to Staples, Inc.		$	984,656			$	(20,800	)		$	963,856
Diluted Earnings Per Common Share:
Continuing operations attributed to Staples, Inc.		$	1.40			$	(0.03	)		$	1.37
Discontinued operations attributed to Staples, Inc.		—				—				—
Net (loss) income attributed to Staples, Inc.		$	1.40			$	(0.03	)		$	1.37
Number of shares used in computing earnings per share		704,019

STAPLES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Sales Growth
(Dollar Amounts in Thousands)
(Unaudited)
		13 Weeks Ended October 27, 2012
		Sales Growth GAAP			Impact of Local Currency			Sales Growth on a Local Currency Basis
Sales:
North American Delivery		1.0	%		(0.1	)%		0.9	%
North American Retail		(0.4	)%		(0.3	)%		(0.7	)%
International Operations		(11.6	)%		4.0	%		(7.6	)%
Total sales		(2.0	)%		0.6	%		(1.4	)%
		39 Weeks Ended October 27, 2012
		Sales Growth GAAP			Impact of Local Currency			Sales Growth on a Local Currency Basis
Sales:
North American Delivery		0.7	%		0.1	%		0.8	%
North American Retail		(1.0	)%		0.4	%		(0.6	)%
International Operations		(12.2	)%		5.0	%		(7.2	)%
Total sales		(2.6	)%		1.2	%		(1.4	)%

This presentation refers to growth rates in local currency so that business results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Staples' business performance. To present this information, current period results for entities reporting in currencies other than U.S. dollars are converted into U.S. dollars at the prior year average monthly exchange rates.

STAPLES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Income Statement Disclosures
(Dollar Amounts in Thousands)
(Unaudited)
		39 Weeks Ended
		October 27, 2012				October 29, 2011
Net cash provided by operating activities		$	895,386			$	1,095,632
Acquisition of property and equipment		(204,163		)		(243,740		)
Free cash flow		$	691,223			$	851,892

Free cash flow is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies. The company defines free cash flow as net cash provided by operating activities less capital expenditures. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The company believes free cash flow is a useful measure of performance and uses this measure as an indication of the company's ability to generate cash and invest in its business.