Full Description

Office Depot, Inc., incorporated in 1986, is a global supplier of office products and services. The Company is organized into three business segments: North American Retail division, North American Business Solutions division and International division. Its sales are processed through multiple channels, consisting of office supply stores, a contract sales force, an outbound telephone account management sales force, Internet sites, direct marketing catalogs and call centers, supported by its network of crossdocks, warehouses and delivery operations. In April 2008, Office Depot, Inc. and Reliance Retail Limited, a subsidiary of Reliance Industries Limited, announced that they have entered into a joint venture to provide office products and services to business customers in India. Office Depot, Inc. and Reliance also announced the acquisition of eOfficePlanet, one of the dealers of office products and services to corporate customers in India. eOfficePlanet provides a range of national and private brand office products and solutions to its customers.

North American Retail Division

The North American Retail division sells a range of merchandise through its chain of office supply stores in the United States and Canada. It offers general office supplies, computer supplies, business machines and related supplies, and office furniture from national brands, as well as its own brands, which include Office Depot, Foray, Ativa, Break Escapes, Worklife and Christopher Lowell. Most stores also contain a design, print and ship center offering graphic design, printing, reproduction, mailing, shipping, and other services. Office Depot, Inc. has developed a store format called M2. This format is used for all new store openings and remodels. In fiscal 2007, it remodeled 177 stores. During the fiscal year ended December 27, 2008 (fiscal 2008), North American Retail division operated 1,267 office supply stores throughout the United States and Canada.

North American Business Solutions Division

The North American Business Solutions division office supplies, technology products, furniture and services through sales force, catalogs and electronically through its Internet sites. The Company’s direct customers can order products from its catalogs, by phone or through its public Website (www.officedepot.com), including the Company’s public Website for technology products (www.techdepot.com). Contract and direct customers orders are filled primarily through deliveries from its distribution centers (DCs) located across the United States and Canada. Some DCs and some retail locations also house sales offices and administrative offices. The Company has outsourced its inbound call center activities. In fiscal 2008, the Company operated 20 DCs.

International Division

The Company’s International Division sells office products and services through direct mail catalogs, contract sales forces, Internet sites and retail stores, using a mix of Company-owned operations, joint ventures, licensing and franchise agreements, alliances and other arrangements. As of December 27, 2008, it sold to customers in 48 countries throughout North America, Europe, Asia and Central America either through wholly owned entities, majority-owned entities or other ventures covering 38 countries, and through alliances in an additional 10 countries. The Company offers products under the Viking name that is co-branded with Office Depot.

Office Depot, Inc. has catalog offerings in 14 countries outside of North America, and it operates approximately 35 separate Websites in the International Division. During fiscal 2008, the International Division operated, through wholly owned or majority-owned entities, 162 retail stores in France, Hungary, Israel, Japan, South Korea and Sweden. In addition, the Company also participates under licensing and merchandise arrangements in 98 stores in South Korea and Thailand. Including Company-owned operations, joint ventures, licensing and franchise agreements it sells office products through 446 retail stores outside North America.