In addition, we have taken a number of actions to improve the operating performance of our contract sales business. After a close evaluation of our contract operations, we have trimmed our sales force by ten percent, and we are in the process of consolidating 24 Office Depot call centers into seven upgraded and technologically advanced customer service centers.

We have also carefully reviewed the value of our holdings in a number of Internet companies, most of which are strategic marketing partners with Office Depot. In the fourth quarter, we reduced the value on our books of certain Internet holdings to better reflect their value relative to current economic conditions, today’s market for Internet companies and the changing environment for investments in these kinds of businesses. We also wrote down a portion of goodwill related to our 1999 acquisition of the remaining 50 percent ownership interest in our Japanese operations.

It is clear that Office Depot remains aggressively focused on finding methods to accelerate the growth of our businesses and is highly committed to executing these methods. In 2001, we will make significant incremental investments to improve the customer experience in our North American Retail stores and in all other channels in which we sell. We will exploit new ways to capitalize on our already strong presence in the international arena and maximize our status as the clear industry e-commerce leader to expand our rapidly growing Internet business. We will continue to seek cost savings in our warehouse operations without sacrificing service levels. We will also seek to grow our rapidly expanding international business.

In addition, we are committed to improving our relationships with the financial community. After a difficult 2000, we are working diligently to provide meaningful, informative and consistent guidance to rebuild our credibility with our shareholders, analysts and others in the investment community.

In short, we are making every effort at Office Depot to ensure that our Company becomes a more compelling place to invest. We firmly believe that if we serve our customers and shareholders better, build stronger supplier relationships and make Office Depot a more rewarding place for our people, we will be able to recapture our long-held position as our industry’s leader—and ultimately generate a superior return on investment for our valued shareholders.