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Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 26, 2011 shares
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 26, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1
Trading Symbol	odp
Entity Registrant Name	OFFICE DEPOT INC
Entity Central Index Key	0000800240
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	277,571,087

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 26, 2011	Mar. 27, 2010	Dec. 25, 2010
Current assets:
Cash and cash equivalents	$ 494,207	$ 663,299	$ 627,478
Receivables, net	990,080	1,009,642	963,787
Inventories	1,217,192	1,142,478	1,233,657
Prepaid expenses and other current assets	190,969	169,633	203,020
Total current assets	2,892,448	2,985,052	3,027,942
Property and equipment, net	1,138,657	1,236,772	1,157,013
Goodwill	62,907	19,431	19,431
Other intangible assets	41,524	24,066	21,840
Deferred income taxes	44,363	76,634	33,319
Other assets	328,154	292,846	309,892
Total assets	4,508,053	4,634,801	4,569,437
Current liabilities:
Trade accounts payable	1,008,969	973,422	1,080,276
Accrued expenses and other current liabilities	1,108,437	1,171,088	1,188,233
Income taxes payable	2,881	18,652	2,568
Short-term borrowings and current maturities of long-term debt	91,412	59,128	72,368
Total current liabilities	2,211,699	2,222,290	2,343,445
Deferred income taxes and other long-term liabilities	556,998	615,300	514,218
Long-term debt, net of current maturities	657,015	661,104	659,820
Total liabilities	$ 3,425,712	$ 3,498,694	$ 3,517,483
Commitments and contingencies
Redeemable preferred stock, net (liquidation preference - $368,516 in March 2011, December 2010 and March 2010)	$ 355,979	$ 355,979	$ 355,979
Office Depot, Inc. stockholders' equity:
Common stock - authorized 800,000,000 shares of $.01 par value; issued and outstanding shares - 283,486,355 in 2011, 283,059,236 in December 2010 and 281,418,223 in March 2010	2,835	2,814	2,831
Additional paid-in capital	1,155,193	1,189,611	1,161,409
Accumulated other comprehensive income	265,781	201,474	223,807
Accumulated deficit	(640,232)	(560,727)	(634,818)
Treasury stock, at cost - 5,915,268 shares in 2011, December 2010 and March 2010	(57,733)	(57,733)	(57,733)
Total Office Depot, Inc. stockholders' equity	725,844	775,439	695,496
Noncontrolling interest	518	4,689	479
Total stockholders' equity	726,362	780,128	695,975
Total liabilities and stockholders' equity	$ 4,508,053	$ 4,634,801	$ 4,569,437

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 26, 2011	Mar. 27, 2010
Condensed Consolidated Statements of Operations
Sales	$ 2,972,960	$ 3,071,970
Cost of goods sold and occupancy costs	2,094,772	2,158,239
Gross profit	878,188	913,731
Store and warehouse operating and selling expenses	693,886	690,011
General and administrative expenses	165,826	168,217
Operating profit	18,476	55,503
Other income (expense):
Interest income	599	537
Interest expense	(17,987)	(17,772)
Miscellaneous income, net	7,345	6,099
Earnings before income taxes	8,433	44,367
Income tax expense	13,823	15,127
Net earnings (loss)	(5,390)	29,240
Less: Net earnings (loss) attributable to the noncontrolling interest	24	(228)
Net earnings (loss) attributable to Office Depot, Inc.	(5,414)	29,468
Preferred stock dividends	9,213	9,475
Income (loss) available to common shareholders	$ (14,627)	$ 19,993
Earnings (loss) per share:
Basic	$ (0.05)	$ 0.07
Diluted	$ (0.05)	$ 0.07
Weighted average number of common shares outstanding:
Basic	276,986	274,233
Diluted	276,986	274,233

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2011	Mar. 27, 2010
Cash flows from operating activities:
Net earnings (loss)	$ (5,390)	$ 29,240
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization	51,269	52,702
Charges for losses on inventories and receivables	18,413	12,195
Changes in working capital and other	(158,912)	(41,503)
Net cash provided by (used in) operating activities	(94,620)	52,634
Cash flows from investing activities:
Capital expenditures	(28,587)	(41,440)
Acquisition, net of cash acquired	(72,667)
Release of restricted cash	46,509
Proceeds from assets sold and other	4,238	13,770
Net cash used in investing activities	(50,507)	(27,670)
Cash flows from financing activities:
Proceeds from exercise of stock options and sale of stock under employee stock purchase plans	472	777
Tax benefits from employee share-based payments		1,635
Share transactions under employee related plans	(583)	(1,269)
Preferred stock dividends	(9,213)
Debt related fees		(4,688)
Net proceeds (payments) on long- and short-term borrowings	9,927	(2,799)
Net cash provided by (used in) financing activities	603	(6,344)
Effect of exchange rate changes on cash and cash equivalents	11,253	(15,219)
Net increase (decrease) in cash and cash equivalents	(133,271)	3,401
Cash and cash equivalents at beginning of period	627,478	659,898
Cash and cash equivalents at end of period	$ 494,207	$ 663,299

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 26, 2011
Summary of Significant Accounting Policies
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. The Condensed Consolidated Balance Sheet at December 25, 2010 has been derived from audited financial statements at that date. The condensed consolidated interim financial statements as of March 26, 2011 and March 27, 2010, and for the 13-week periods ended March 26, 2011 (also referred to as "the first quarter of 2011") and March 27, 2010 (also referred to as "the first quarter of 2010") are unaudited. However, in our opinion, these financial statements reflect adjustments (consisting only of normal, recurring items) necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. We have included the balance sheet from March 27, 2010 to assist in analyzing our company. The balance of short-term deferred income taxes in the March 27, 2010 balance sheet has been combined with prepaid expenses and other current assets to conform to presentations used at December 25, 2010 and March 26, 2011. 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 25, 2010, as amended (the "2010 Form 10-K/A"), filed on April 6, 2011 with the U.S. Securities and Exchange Commission ("SEC"). *Cash Management:* Our cash management process generally utilizes zero balance accounts which provide for the reimbursement of the related disbursement accounts on a daily basis. Accounts payable and accrued expenses as of March 26, 2011, December 25, 2010 and March 27, 2010 included $54 million, $64 million and $66 million, respectively, of disbursements not yet presented for payment drawn in excess of our book deposit balances where offset provisions exist. 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. *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.

Asset Impairments, Exit Costs and Other Charges

3 Months Ended

Mar. 26, 2011

Asset Impairments, Exit Costs and Other Charges

Asset Impairments, Exit Costs and Other Charges

Note B – Asset Impairments, Exit Costs and Other Charges

The company has been adversely affected by the downturn in the global economy in recent years and has taken actions to adapt to the changing and increasingly competitive conditions including closing stores and distribution centers ("DCs"), consolidating functional activities and disposing of businesses and assets. During the first quarter of 2011, termination benefits in Europe of approximately $5 million related to these initiatives were recognized and included in Store and warehouse operating and selling expenses on the Condensed Consolidated Statement of Operations and included in determination of operating profit of the International Division. Additionally, approximately $3 million related to the accretion, adjustments and settlements of lease obligations from facilities closed in prior years was recognized and included in Store and warehouse operating and selling expenses on the Condensed Consolidated Statement of Operations.

Exit cost accruals related to prior and current actions are as follows:


(Dollars in millions)	Balance at December 25, 2010		Charges Incurred		Cash Payments		Currency and Other Adjustments		Balance at March 26, 2011

Termination benefits	$	4	$	5	$	(4)	$	—	$	5
Lease and contract obligations		113		3		(11)		2		107

Total	$	117	$	8	$	(15)	$	2	$	112

Stockholders' Equity and Comprehensive Income

3 Months Ended

Mar. 26, 2011

Stockholders' Equity and Comprehensive Income

Stockholders' Equity and Comprehensive Income

Note C – Stockholders' Equity and Comprehensive Income

The following table reflects the changes in stockholders' equity attributable to both Office Depot and our noncontrolling subsidiary interests.


(In thousands)	Attributable to Office Depot, Inc.		Attributable to noncontrolling interest		Total

Stockholders' equity at December 25, 2010	$	695,496	$	479	$	695,975
Comprehensive income:
Net earnings (loss)		(5,414)		24		(5,390)
Other comprehensive income:		41,974		15		41,989

Comprehensive income		36,560		39		36,599
Preferred stock dividends		(9,213)		—		(9,213)
Share transactions under employee related plans		(115)		—		(115)
Amortization of long-term incentive stock grants		3,116		—		3,116

Stockholders' equity at March 26, 2011	$	725,844	$	518	$	726,362


Stockholders' equity at December 26, 2009	$	786,415	$	2,827	$	789,242
Comprehensive income:
Net earnings (loss)		29,468		(228)		29,240
Other comprehensive income (loss):		(36,905)		(27)		(36,932)

Comprehensive income (loss)		(7,437)		(255)		(7,692)
Capital contributions from noncontrolling interest		—		2,117		2,117
Preferred stock dividends		(9,475)		—		(9,475)
Share transactions under employee related plans		1,143		—		1,143
Amortization of long-term incentive stock grants		4,793		—		4,793

Stockholders' equity at March 27, 2010	$	775,439	$	4,689	$	780,128

Comprehensive income includes all non-owner changes in stockholders' equity and consists of the following:


	First Quarter
(In thousands)	2011		2010

Net earnings (loss)	$	(5,390)	$	29,240
Other comprehensive income (loss), net of tax where applicable:
Foreign currency translation adjustments		41,244		(38,027)
Amortization of gain on cash flow hedge		(415)		(415)
Change in deferred pension		210		971
Change in deferred cash flow hedge		950		102
Other		—		437

Total other comprehensive income (loss), net of tax, where applicable		41,989		(36,932)

Comprehensive income (loss)		36,599		(7,692)
Less: comprehensive income (loss) attributable to the noncontrolling interest		39		(255)

Comprehensive income (loss) attributable to Office Depot, Inc.	$	36,560	$	(7,437)

Earnings Per Share

3 Months Ended

Mar. 26, 2011

Earnings Per Share

Earnings Per Share

Note D – Earnings Per Share

The following table represents the calculation of net earnings (loss) per common share:


	First Quarter
(In thousands, except per share amounts)	2011		2010

Basic Earnings Per Share
Numerator:
Income (loss) available to common shareholders	$	(14,627)	$	19,993

Denominator:
Weighted-average shares outstanding		276,986		274,233

Basic earnings (loss) per common share	$	(0.05)	$	0.07


Diluted Earnings Per Share
Numerator:
Net earnings (loss) attributable to Office Depot, Inc.	$	(5,414)	$	29,468

Denominator:
Weighted-average shares outstanding		276,986		274,233
Effect of dilutive securities:
Stock options and restricted stock		6,556		6,372
Redeemable preferred stock		73,703		73,596


Diluted weighted-average shares outstanding		357,245		354,201

Diluted earnings (loss) per common share		N/A		N/A

Following the company's issuance of redeemable preferred stock in 2009, basic earnings per share is computed after consideration of preferred stock dividends. Diluted earnings per share is based on earnings before preferred stock dividends, but after assumed conversion into common stock unless such computation results in a number that is less dilutive. For the first quarter of 2011 and 2010, the diluted weighted-average share outstanding amounts are provided for informational purposes as basic earnings (loss) per share is the most dilutive for the periods presented.

The quarterly preferred stock dividends payable on April 1, 2010 through April 1, 2011 were paid in cash. Should the company pay dividends on preferred shares in-kind during future periods, the reported earnings per share attributable to preferred and common shareholders may be different. Shares of redeemable preferred stock have certain participation rights with common stock. A two class security earnings per share presentation will be provided for any period in which these rights impact the earnings per share calculation.

Awards of options and nonvested shares representing approximately 9.5 million and 12.2 million additional shares of common stock were outstanding for the first quarter of 2011, and 2010, respectively, but were not included in the computation of diluted earnings per share because their effect would have been antidilutive. For weighted average shares purposes, no tax benefits have been assumed in jurisdictions with valuation allowances.

Division Information

3 Months Ended

Mar. 26, 2011

Division Information

Division Information

Note E – 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)	2011		2010

North American Retail Division	$	1,320,567	$	1,347,545
North American Business Solutions Division		806,247		830,611
International Division		846,146		893,814

Total	$	2,972,960	$	3,071,970


	Division Operating Profit
	First Quarter
(In thousands)	2011		2010

North American Retail Division	$	57,960	$	72,955
North American Business Solutions Division		16,241		20,169
International Division		27,305		41,589

Total	$	101,506	$	134,713

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


	First Quarter
(In thousands)	2011		2010

Total Division operating profit	$	101,506	$	134,713
Unallocated general, administrative and corporate expenses		(83,030)		(79,210)
Interest income		599		537
Interest expense		(17,987)		(17,772)
Miscellaneous income (expense), net		7,345		6,099

Earnings (loss) before income taxes	$	8,433	$	44,367

During the first quarter of 2011, the company acquired an entity that sells office supplies and services in Sweden. The operations and assets of that entity have been included in the International Division since acquisition. See Note L.

Our Condensed Consolidated Balance Sheet as of March 26, 2011 reflects a goodwill balance of approximately $62.9 million, and on each of December 25, 2010 and March 27, 2010, a balance of approximately $19.4 million. The gross amount of goodwill and the amount of accumulated impairment losses as of March 26, 2011 are provided in the following table:


(Dollars in thousands)	North American Retail Division		North American Business Solutions Division		International Division		Total

Balance as of December 26, 2009
Goodwill		1,842		367,790		863,134	$	1,232,766
Accumulated impairment losses		(1,842)		(348,359)		(863,134)		(1,213,335)

Balance as of December 25, 2010	$	—	$	19,431	$	—	$	19,431
2011 Changes:
Goodwill acquired during the year		—		—		43,476		43,476

Balance as of March 26, 2011	$	—	$	19,431	$	43,476	$	62,907

Employee Benefit Plans

3 Months Ended

Mar. 26, 2011

Employee Benefit Plans

Employee Benefit Plans

Note F – Employee Benefit Plans

Pension Disclosures

The components of net periodic pension cost for our foreign pension plan are as follows:


	First Quarter
(In millions)	2011		2010

Service cost	$	—	$	—
Interest cost		2.4		2.6
Expected return on plan assets		(2.3)		(2.0)

Net periodic pension cost	$	0.1	$	0.6

The pension plan was part of an entity acquired in 2003. The plan was curtailed and frozen in 2008 and no future service cost will be recognized. The original Sale and Purchase Agreement ("SPA") included a provision whereby the seller is required to pay to the company an amount of unfunded benefit obligation as measured based on certain 2008 data. The calculation was completed by the plan's actuary, but the amount was disputed by the seller. Under the SPA, any dispute on this matter that could not be resolved between the parties would progress to arbitration, which would be a final ruling. On March 7, 2011, the arbitration tribunal issued its final decision, declaring, among other things, that the seller must pay the company approximately $67.8 million (at March 26, 2011 exchange rates) plus interest at EURIBOR plus 50 basis points accruing from January 31, 2009 until paid. As of the April 26, 2011, the seller has not paid the amount awarded and the company is commencing an action in the French courts to enforce the award.

The company will account for the award when received. The amount received, adjusted for any related assets, liabilities or expenses, will result in a credit to the consolidated statement of operations. Funds collected will be contributed to the pension plan, reducing or eliminating its unfunded position. This settlement and contribution will be addressed with the plan trustees in determining future funding requirements.

Income Taxes	3 Months Ended
Income Taxes	Mar. 26, 2011
Income Taxes
Income Taxes	Note G – Income Taxes The effective tax rate for the first quarter of 2011 and 2010 was 164% and 34%, respectively. The rate in 2011 is based on an annual estimated effective tax rate ("AETR"), adjusted in interim periods for multijurisdictional operating loss entities. Because the company has valuation allowances in several jurisdictions, operating losses in those jurisdictions do not result in deferred tax benefits being recognized in the condensed consolidated statement of operations. Accordingly, tax expense recognized in jurisdictions with positive earnings and no tax benefit on certain jurisdictions with losses causes the effective rate to exceed net pretax earnings. This interim accounting is likely to result in significant variability of the effective tax rate throughout the course of the year. Changes in income projections and the mix of income across jurisdictions could impact the AETR each quarter. We file a U.S. federal income tax return and other income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to active U.S. federal, state and local, or non-U.S. income tax examinations for years before 2007. Our U.S. federal filings for the years 2007 through 2009 are under routine examination, and it is reasonably possible that audits for some of these periods will be closed prior to the end of 2011. Additionally, the U.S. federal tax return for 2010 is under concurrent review. Significant international tax jurisdictions include the U.K., the Netherlands, France and Germany. Generally, we are subject to routine examination for years 2006 and forward in these foreign jurisdictions, and it is reasonably possible that certain of these audits will close within the next twelve months which could result in a decrease of as much as $88 million or an increase of as much as $17 million to our accrued uncertain tax positions. Additionally, we anticipate that it is reasonably possible that new issues will be raised or resolved by tax authorities that may require changes to the balance of unrecognized tax benefits, however, an estimate of such changes cannot reasonably be made at this time.

Fair Value Measurements

3 Months Ended

Mar. 26, 2011

Fair Value Measurements

Fair Value Measurements

Note H – Fair Value Measurements

The company applies authoritative accounting guidance for fair value measurements of financial and nonfinancial assets and liabilities. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The related rules provide the following hierarchy for measuring fair value:

Level 1:

Quoted prices in active markets for identical assets or liabilities.

Level 2:

Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3:

Significant unobservable inputs that are not corroborated by market data. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows or option pricing models using our own estimates and assumptions or those expected to be used by market participants.

Foreign currency contracts are valued at amounts receivable or payable to terminate the agreements at the reporting date and are based on observable market data for similar assets and liabilities. The carrying amounts of trade and other accounts receivable, trade and other accounts payable and other accrued expenses approximate fair value because of the short maturity of those instruments.

Fair value estimates may be required to measure certain assets and liabilities on a nonrecurring basis for asset impairments and exit cost valuations.

The following table summarizes the company's financial liabilities measured at fair value on a recurring basis:


	Level 2
(In thousands)	Fair Value Measurement Category
	March 26, 2011		December 25, 2010		March 27, 2010
Assets
Commodity contracts - fuel	$	4,511	$	253	$	—
Foreign exchange contracts	$	633	$	—	$	—
Liabilities:
Foreign exchange contracts	$	331	$	434	$	168

The company records its senior notes payable at par value, adjusted for amortization of a fair value hedge which was cancelled in 2005. The fair value of the senior notes indicated in the following table was determined based on quoted market prices.


	March 26, 2011				December 25, 2010				March 27, 2010
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
$400 million senior notes	$	400,032	$	404,800	$	400,067	$	398,000	$	400,145	$	383,000

Derivative Instruments and Hedging Activity

3 Months Ended

Mar. 26, 2011

Derivative Instruments and Hedging Activity

Derivative Instruments and Hedging Activity

Note I – Derivative Instruments and Hedging Activity

As a global supplier of office products and services we are exposed to risks associated with changes in foreign currency exchange rates, commodity prices and interest rates. Our foreign operations are typically, but not exclusively, conducted in the currency of the local environment. We are exposed to the risk of foreign currency exchange rate changes when we make purchases, sell products, or arrange financings that are denominated in a currency different from the entity's functional currency. Depending on the settlement timeframe and other factors, we may enter into foreign currency derivative transactions to mitigate those risks. We may designate and account for such qualifying arrangements as hedges. Gains and losses on these cash flow hedging transactions are deferred in other comprehensive income ("OCI") and recognized in earnings in the same period as the hedged item. Transactions that are not designated as cash flow hedges are marked to market at each period with changes in value included in earnings. Historically, we have not entered into transactions to hedge our net investment in foreign operations but may in future periods.

We also are exposed to the risk of changing fuel prices from inbound and outbound transportation arrangements. The structure of many of these transportation arrangements, however, precludes applying hedge accounting. In those circumstances, we may enter into derivative transactions to offset the risk of commodity price changes, and the value of the derivative contract is marked to market at each reporting period with changes recognized in earnings. To the extent fuel arrangements qualify for hedge accounting, gains and losses are deferred in OCI until such time as the hedged item impacts earnings. At the end of the first quarter 2011, the company had contracts for approximately 8.1 million gallons of fuel that will be settled monthly through December 2011. Those contracts were not designated as hedging instruments.

Interest rate changes on our obligations may result from external market factors, as well as changes in our credit rating. We manage our exposure to interest rate risks at the corporate level. Interest rate sensitive assets and liabilities are monitored and assessed for market risk. Currently, no interest rate related derivative arrangements are in place. OCI includes the deferred gain from a hedge contract terminated in a prior period. This deferral is being amortized to interest expense through 2013.

Our risk management policies allow the use of specified financial instruments for hedging purposes only; speculation is not permitted.

The following tables provide information on our hedging and derivative positions and activity.

Fair Value of Derivative Instruments


(Dollars in thousands)	Balance sheet location	March 26, 2011		December 25, 2010		March 27, 2010

Derivatives designated as hedging instruments:
Foreign exchange contracts	Other current liabilities	$	—	$	317	$	168
Foreign exchange contracts	Other current assets		633		—		—
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Other current liabilities	$	331	$	117	$	—
Commodity contracts – fuel	Other current assets		4,511		253		—

Total Liabilities		$	331	$	434	$	168

Total Assets		$	5,144	$	253	$	—


Derivatives not designated as hedging instruments	Location of gain/(loss) recognized in earnings	Amount of gain/(loss) recognized in earnings
(Dollars in thousands)		March, 26 2011		March 27, 2010
Foreign exchange contracts	Miscellaneous income (expense), net	$	(331)	$	—
Commodity contracts – fuel	Cost of goods sold and occupancy costs & Store and warehouse operating and selling expenses*		4,463		—

Total		$	4,132	$	—


Derivatives designated as cash flow hedges:	Amount of gain/(loss) recognized in OCI				Location of gain/(loss) reclassified from OCI into earnings	Amount of gain/(loss) reclassified from OCI into earnings
(Dollars in thousands)	March 26, 2011		March 27, 2010			March 26, 2011		March 27, 2010
Foreign exchange contracts		725		(618)	Cost of goods sold and occupancy costs		(234)		(637)

Total	$	725	$	(618)		$	(234)	$	(637)

*	Approximately 60% of the amounts for 2011 and 2010 are reflected in cost of goods sold and occupancy costs. The remaining 40% of the amounts are reflected in store and warehouse operating and selling expenses.

The existing hedge contracts are highly effective and the ineffective portion is considered immaterial. The foreign exchange contracts extend through June 2011. Losses currently deferred in OCI are expected to be recognized in earnings within the next twelve months. As of March 26, 2011, there were no hedging arrangements requiring collateral. However, we may be required to provide collateral on certain arrangements in the future. The fair values of our foreign currency contracts and fuel contracts are the amounts receivable or payable to terminate the agreements at the reporting date, taking into account current exchange rates. The values are based on market-based inputs or unobservable inputs that are corroborated by market data.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 26, 2011
Commitments and Contingencies
Commitments and Contingencies	Note K – Commitments and Contingencies We are involved in litigation arising in the normal course of our business. While, from time to time, claims are asserted that make demands for a large sum of money (including, from time to time, actions which are asserted to be maintainable as class action suits), we do not believe that contingent liabilities related to these matters (including the matters discussed below), either individually or in the aggregate, will materially affect our financial position, results of our operations or cash flows. In early November 2007, two putative class action lawsuits were filed against the company and certain of its executive officers alleging violations of the Securities Exchange Act of 1934 and seeking damages, fees, costs and equitable relief. The allegations made in these lawsuits primarily related to the accounting for vendor program funds. Each of the foregoing lawsuits was filed in the United States District Court for the Southern District of Florida and captioned as follows: (1) Nichols v. Office Depot, Inc., Steve Odland and Patricia McKay filed on November 6, 2007 and (2) Sheet Metal Worker Local 28 Pension Fund v. Office Depot, Inc., Steve Odland and Patricia McKay filed on November 5, 2007. On March 21, 2008, the district court entered an Order consolidating the class action lawsuits (the "Consolidated Lawsuit"). Lead plaintiff in the Consolidated Lawsuit, the New Mexico Educational Retirement Board, filed its Consolidated Amended Complaint on July 2, 2008, and its Second Consolidated Amended Complaint on April 20, 2009. On January 14, 2010, the district court dismissed the Second Consolidated Amended Complaint with prejudice and, on December 13, 2010, the United States Court of Appeals for the Eleventh Circuit affirmed the dismissal with prejudice of the Second Consolidated Amended Complaint. On April 6, 2011, a putative class action lawsuit was filed against the company and certain current and former executive officers alleging violations of the Securities Exchange Act of 1934 and seeking damages, fees, costs and equitable relief. The foregoing lawsuit was filed in the United States District Court for the Southern District of Florida and is captioned as Climo v. Office Depot, Inc, Steve Odland, Michael D. Newman and Neil R. Austrian. The allegations made in this lawsuit primarily relate to the company's previous financial disclosures and reports regarding certain tax losses. By way of background, on March 31, 2011, Office Depot announced that the Internal Revenue Service had denied the company's claim to carry back certain tax losses to prior tax years under economic stimulus-based tax legislation enacted in 2009. As a result, on April 6, 2011, the company restated its financial results to revise the accounting treatment regarding its original tax position. The periods covered by the restatement were the fiscal year ended December 25, 2010 and the quarters ended June 26, 2010 and September 25, 2010. In addition, in the ordinary course of business, our sales to and transactions with government customers may be subject to investigations, audits and review by governmental authorities and regulatory agencies, with which we cooperate. Many of these investigations, audits and reviews are resolved without incident. While claims in these matters may at times assert large demands, we do not believe that contingent liabilities related to these matters, either individually or in the aggregate, will materially affect our financial position, results of our operations or cash flows. Among such matters, during the first quarter of 2011, we were notified that the United States Department of Justice has commenced an investigation into certain pricing practices related to an expired agreement that was in place between January 2, 2006 and January 1, 2011, pursuant to which state, local and non-profit agencies could purchase office supplies.

Acquisition	3 Months Ended
Acquisition	Mar. 26, 2011
Acquisition
Acquisition	Note L – Acquisition On February 25, 2011, the company acquired all of the shares of Svanströms Gruppen (Frans Svanströms & Co AB), a supplier of office products and services headquartered in Stockholm, Sweden to complement the company's existing business in that region. The all-cash transaction is subject to final working capital adjustments. The company recognized approximately $95 million of assets related to the acquisition, including $43 million of goodwill, primarily attributable to anticipated synergies, $20 million of amortizing intangible assets for customer relationships and proprietary names, and $18 million of net working capital and property and equipment. Allocation of the purchase price to the fair value of assets acquired and liabilities assumed is not yet complete. Accounting integration and valuation activity that could impact the opening balances is expected to be complete by the end of the second quarter of 2011. Operations have been included in the International Division results since the date of acquisition. Supplemental pro forma information as if the entities were combined at earlier periods is not provided based on materiality considerations.

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 26, 2011
Subsequent Event
Subsequent Event	Note M – Subsequent Event On April 8, 2011, our joint venture in Mexico, Office Depot de Mexico, declared a cash dividend to be paid to the two equal shareholders on June 21, 2011. The company's portion of the total dividend is approximately $25 million (at current exchange rates).

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 26, 2011	Dec. 25, 2010	Mar. 27, 2010
Condensed Consolidated Balance Sheets
Redeemable preferred stock, liquidation preference	$ 368,516	$ 368,516	$ 368,516
Common stock, authorized shares	800,000,000	800,000,000	800,000,000
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, issued shares	283,486,355	283,059,236	281,418,223
Common stock, outstanding shares	283,486,355	283,059,236	281,418,223
Treasury stock, shares	5,915,268	5,915,268	5,915,268