Office Depot operates in three reportable segments: North American Retail Division, Business Services Group ("BSG"), and International Division. Each of these segments is managed separately primarily because it serves different customer groups. The accounting policies for each segment are the same as those described in the summary of significant accounting policies (see Note A).

The following is a summary of the significant accounts and balances by segment, reconciled to the consolidated totals.

(Dollars in Thousands)		North American Retail Division			BSG			International Division			Eliminations and Other*			Consolidated Total
Sales	2002	$	5,804,449		$	3,913,902		$	1,641,411		$	(3,129	)	$	11,356,633
	2001		5,842,648			3,763,006			1,480,103			(3,645	)		11,082,112
	2000		6,487,522			3,618,768			1,393,154			(3,951	)		11,495,493
Segment Operating Profit	2002	$	419,738		$	364,624		$	212,127		$	(647	)	$	995,842
	2001		308,300			291,208			212,179			(655	)		811,032
	2000		216,975			177,286			167,382			(224	)		561,419
Capital Expenditures	2002	$	50,149		$	28,524		$	67,551		$	55,994		$	202,218
	2001		76,337			44,087			57,509			30,123			208,056
	2000		106,646			55,690			32,264			72,398			266,998
Depreciation and Amortization	2002	$	88,737		$	39,336		$	16,487		$	56,187		$	200,747
	2001		88,227			45,699			15,973			48,324			198,223
	2000		92,276			42,588			16,853			52,536			204,253
Charges for Losses on	2002	$	36,627		$	36,991		$	19,602			-		$	93,220
Receivables and Inventories	2001		35,739			53,712			19,239			-			108,690
	2000		30,121			57,628			30,902			-			118,651
Net Earnings from	2002		-			-		$	9,279			-		$	9,279
Equity Method Investments	2001		-			-			10,892			-			10,892
	2000		-			-			9,436			-			9,436
Assets	2002	$	1,695,907		$	1,115,586		$	771,734		$	1,182,585		$	4,765,812
	2001		1,802,278			1,138,200			621,059			770,106			4,331,643

*	Amounts included in "Eliminations and Other" consist of inter-segment sales, which are generally recorded at the cost to the selling entity, and assets (including all cash and equivalents) and depreciation related to corporate activities.

Senior management evaluates the performance of each business segment based on segment operating profit, which is defined as sales less cost of sales, store and warehouse operating expenses, and facility closure costs. General and administrative expenses, financing costs and certain other items are not allocated to the business segments because they are viewed as corporate functions that support all activities and the cost of allocation would exceed the benefit received. A reconciliation of the measure of segment operating profit to consolidated earnings from continuing operations before income taxes follows.

(Dollars in thousands)	2002			2001			2000
Segment operating profit	$	995,842		$	811,032		$	561,419
(Add)/subtract:
General and administrative expenses		486,279			445,538			447,693
Other operating expenses		9,855			12,125			6,733
Interest expense, net		27,686			30,359			21,338
Miscellaneous (income) expense		(7,183	)		9,057			(4,632	)
Earnings from continuing
operations before income taxes	$	479,205		$	313,953		$	90,287

The Company sells office products and services through either wholly owned operations or through joint ventures or licensing arrangements, in Austria, Belgium, Canada, Costa Rica, France, Germany, Guatemala, Hungary, Ireland, Israel, Italy, Japan, Luxembourg, Mexico, the Netherlands, Poland, Portugal, Spain, Switzerland, Thailand, the United Kingdom and the United States. There is no single country outside of the United States in which we generate 10% or more of our total revenues. Geographic financial information relating to our business is as follows.

	Sales										Long-Lived Assets
(Dollars in thousands)	2002			2001			2000				2002			2001
United States	$	9,575,457		$	9,452,453		$	9,901,975			$	874,247		$	913,987
International		1,781,176			1,629,659			1,593,518				243,815			185,631
Total	$	11,356,633		$	11,082,112		$	11,495,493			$	1,118,062		$	1,099,618