What could be the financial impact on Office Depot of choosing not to bid on the U.S. Communities/LA County RFP?
A. Given that the operating profit for this business is currently in the low single digits as a percentage of projected annual sales of approximately $515 million, we believe that we could manage our infrastructure costs as needed in the short term to mitigate the potential financial impact of current business not retained. We also intend to work aggressively to retain our customers and grow the business directly and through new cooperative agreements either with U.S. Communities or other associations.
