Commitments and Contingencies

12 Months Ended

Feb. 01, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Staples leases certain retail and support facilities under long-term non-cancelable lease agreements. Most lease agreements contain renewal options and rent escalation clauses and, in some cases, allow termination within a certain number of years with notice and a fixed payment. Certain agreements provide for contingent rental payments based on sales.

Other long-term obligations at February 1, 2014 include $94.9 million relating to future rent escalation clauses and lease incentives under certain existing operating lease arrangements. These rent obligations are recognized on a straight-line basis over the respective terms of the leases. Future minimum lease commitments due for retail, distribution, fulfillment and support facilities (including restructured facilities and lease commitments for two retail stores not yet opened at February 1, 2014) and equipment leases under non-cancelable operating leases are as follows (in thousands):

Fiscal Year:	Total
2014	$	799,591
2015	690,828
2016	572,597
2017	450,745
2018	316,086
Thereafter	778,068
	$	3,607,915

Future minimum lease commitments exclude the impact of $43.0 million of minimum rentals due under non-cancelable subleases.

Rent expense was $801.4 million, $838.9 million and $839.6 million for 2013, 2012 and 2011, respectively.

As of February 1, 2014, Staples had contractual purchase obligations that are not reflected in the Company's consolidated balance sheets totaling $564.8 million. Many of the Company's purchase commitments may be canceled by the Company without advance notice or payment and, accordingly, the Company has excluded such commitments from the following schedule. Contracts that may be terminated by the Company without cause or penalty, but that require advance notice for termination, are valued on the basis of an estimate of what the Company would owe under the contract upon providing notice of termination. Expected payments related to such purchase obligations are as follows (in thousands):

Fiscal Year:	Total
2014	$	429,991
2015	42,516
2016	30,911
2018	16,852
2019	11,744
Thereafter	32,748
	$	564,762

Letters of credit are issued by Staples during the ordinary course of business through major financial institutions as required by certain vendor contracts. As of February 1, 2014, Staples had open standby letters of credit totaling $105.8 million.

Legal Proceedings

From time to time, the Company is involved in litigation arising from the operation of its business that is considered routine and incidental to its business. The company estimates exposures and establishes reserves for amounts that are probable and can be reasonably estimated.  However, litigation is inherently unpredictable and the outcome of legal proceedings and other contingencies could be unexpected or differ from the Company’s reserves.  The Company does not believe it is reasonably possible that a loss in excess of the amounts recognized in the consolidated financial statements as of February 1, 2014 would have a material adverse effect on its business, results of operations or financial condition.