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  "documentTitle": "Office Depot, Inc. (ODP)",
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  "authorName": "Starboard Value",
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  "notes": "Includes a detailed table breaking down synergy estimates by cost category with red-text annotations explaining the rationale for each.",
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      "text": "Buying / Sourcing / SKU rationalization / Yield improvements. Analysts estimate that SPLS achieved 0.9% improvement in CXP merger. Eliminate excess and overlap spend, change mix to higher ROI spend. SPLS at only 2.2% advertising as a percentage of revenue. Starboard estimates that ODP N.A. Corporate overhead alone is close to $300 million (excluding International overhead and overhead for N.A. Divisions). Analysts estimate that SPLS achieved 0.8% reduction on CXP where there is less overlap",
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      "text": "We believe that synergies, excluding store closures, with a properly executed thoughtful plan could amount to between $500 million and $700 million within the first two years alone.",
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      "text": "Office Depot and OfficeMax have publicly stated they project synergies of $400 million to $600 million over three years, excluding any synergies related to store closures. However, we believe that the synergies from the combination of Office Depot and OfficeMax could be substantially higher given the opportunities in Cost of Goods Sold, Advertising, and Corporate G&A. We believe that synergies, excluding store closures, with a properly executed thoughtful plan could amount to between $500 million and $700 million within the first two years alone. Including synergies related to store closures as well as improved long-term execution, we believe the potential for margin improvement is significantly higher.",
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      "text": "synergies: $500-$700",
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      "text": "(1) Gross margins for Office Depot are adjusted to be more similar to OfficeMax's calculations and include shipping and handling expenses per the 2012 10-K and an estimate for other product related costs of $18 million, which equals the other product related costs from 2011 according to ODP's November 2012 investor presentation.",
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      "kind": "title",
      "text": "Our Nominees Can Help Drive an Even Greater Upside in a Merger with OfficeMax",
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