On a GAAP basis, the company reported fourth quarter 2012 net income of $90 million, or $0.14 per share, from continuing operations attributable to Staples, Inc., compared to net income of $284 million, or $0.41 per diluted share, achieved in the fourth quarter of 2011. Excluding the impact of charges taken during the fourth quarter of 2012, the company reported non-GAAP net income from continuing operations attributable to Staples, Inc. of $308 million, or $0.46 per diluted share, compared to $284 million, or $0.41 per diluted share, achieved in the fourth quarter of 2011. Fourth quarter 2012 results on a GAAP basis include $181 million of pre-tax charges related to European store closures and restructuring, U.S. store closures and accelerated Australia tradename amortization, a $57 million pre-tax charge related to the early extinguishment of debt, as well as a $26 million pre-tax charge related to the termination of the company’s existing joint venture agreement in India. The company’s fourth quarter 2012 results on a GAAP basis also include pre-tax income of $83 million related to the extra week in 2012.
On a GAAP basis, fourth quarter 2012 operating income rate declined 257 basis points to 4.78 percent compared to the fourth quarter of 2011. Excluding the pre-tax charges related to European store closures and restructuring, U.S. store closures and accelerated Australia tradename amortization described above, non-GAAP fourth quarter 2012 operating income rate improved 18 basis points versus the fourth quarter of 2011 to 7.53 percent. This increase primarily reflects reduced incentive compensation and marketing expense, partially offset by lower product margin.
|Full Year 2012 Financial Summary|
|(dollar amounts in millions)||2012||2011||Change|
|Total company sales||$24,381||$24,665||(1.2%)|
|Total company sales excluding the 53rd week in 2012*||$23,919||$24,665||(3.0%)|
|GAAP operating income||$510||$1,634||($1,124)|
|Non-GAAP operating income*||$1,548||$1,634||($86)|
|GAAP operating income rate||2.1%||6.6%||(453 basis points)|
|Non-GAAP operating income rate*||6.3%||6.6%||(27 basis points)|
|GAAP (loss) earnings per share from continuing operations attributable to Staples, Inc.||($0.24)||$1.40||NM|
|Non-GAAP earnings per diluted share from continuing operations attributable to Staples, Inc.*||$1.39||$1.37||1%|
*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. Full year 2012 non-GAAP measures include results for the 53rd week in 2012, unless otherwise noted.
For the full year 2012, total company sales decreased one percent to $24.4 billion compared to full year 2011. Excluding the favorable impact of the extra week in 2012, total company sales decreased three percent to $23.9 billion versus the prior year.
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