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SEGMENT INFORMATION | 12 Months Ended
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Dec. 28, 2013
SEGMENT INFORMATION | NOTE 19. SEGMENT INFORMATION As a result of the Merger, the Company is in a period of transition as it relates to organizational alignment and management reporting which could impact segment reporting in future periods. However at December 28, 2013, the Company had the following three reportable segments: North American Retail Division, North American Business Solutions Division, and International Division. Following the date of the Merger, the former OfficeMax U.S. Retail business is included in the North American Retail Division. The former OfficeMax United States and Canada Contract business is included in the North American Business Solutions Division. The former OfficeMax businesses in Australia, New Zealand and Mexico are included in the International Division. The office supply products and services offered across all operating segments are similar. Certain operating segments are aggregated into the way the business is managed and evaluated. The accounting policies for each segment are the same as those described in Note 1. Division operating income (loss) is determined based on the measure of performance reported internally to manage the business and for resource allocation. This measure charges to the respective Divisions those expenses considered directly or closely related to their operations and allocates support costs. Other companies may charge more or less of these items to their segments and results may not be comparable to similarly titled measures used by other entities. During the fourth quarter of 2013, the Company modified its measure of business segment operating income for management reporting purposes to exclude from the determination of segment operating results the impact related to asset impairments, Merger and integration, restructuring and other charges and credits. Oversight of these activities starting in fourth quarter of 2013 was provided at the Corporate level. Prior period operating expenses have been recast to conform to the current period presentation for the change in measurement of Division operating results. Asset impairment of $11 million recorded in 2011 remained in the determination of North America Retail Division operating results. A summary of significant accounts and balances by segment, reconciled to consolidated totals follows.
(In millions) |  |  |  |  | North American Retail |  |  | North American Business Solutions |  |  | International |  |  | Corporate, Eliminations and Other* |  |  | Consolidated Total |
Sales |  |  | 2013 |  |  | $ | 4,614 |  |  | $ | 3,580 |  |  | $ | 3,048 |  |  | $ | — |  |  | $ | 11,242 |
|  |  | 2012 |  |  | $ | 4,458 |  |  | $ | 3,215 |  |  | $ | 3,023 |  |  | $ | — |  |  | $ | 10,696 |
|  |  | 2011 |  |  | $ | 4,870 |  |  | $ | 3,262 |  |  | $ | 3,357 |  |  | $ | — |  |  | $ | 11,489 |
Division operating income |  |  | 2013 |  |  | $ | 8 |  |  | $ | 113 |  |  | $ | 34 |  |  | $ | — |  |  | $ | 155 |
|  |  | 2012 |  |  | $ | 24 |  |  | $ | 110 |  |  | $ | 36 |  |  | $ | — |  |  | $ | 170 |
|  |  | 2011 |  |  | $ | 42 |  |  | $ | 78 |  |  | $ | 66 |  |  | $ | — |  |  | $ | 186 |
Capital expenditures |  |  | 2013 |  |  | $ | 63 |  |  | $ | 24 |  |  | $ | 39 |  |  | $ | 11 |  |  | $ | 137 |
|  |  | 2012 |  |  | $ | 61 |  |  | $ | 31 |  |  | $ | 25 |  |  | $ | 3 |  |  | $ | 120 |
|  |  | 2011 |  |  | $ | 71 |  |  | $ | 32 |  |  | $ | 26 |  |  | $ | 1 |  |  | $ | 130 |
Depreciation and amortization |  |  | 2013 |  |  | $ | 105 |  |  | $ | 51 |  |  | $ | 30 |  |  | $ | 23 |  |  | $ | 209 |
|  |  | 2012 |  |  | $ | 103 |  |  | $ | 43 |  |  | $ | 34 |  |  | $ | 23 |  |  | $ | 203 |
|  |  | 2011 |  |  | $ | 109 |  |  | $ | 42 |  |  | $ | 37 |  |  | $ | 23 |  |  | $ | 211 |
Charges for losses on receivables and inventories |  |  | 2013 |  |  | $ | 38 |  |  | $ | 9 |  |  | $ | 12 |  |  | $ | — |  |  | $ | 59 |
|  | 2012 |  |  | $ | 40 |  |  | $ | 6 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 65 |
|  | 2011 |  |  | $ | 31 |  |  | $ | 7 |  |  | $ | 18 |  |  | $ | — |  |  | $ | 56 |
Net earnings from equity method investments |  |  | 2013 |  |  | $ | — |  |  | $ | — |  |  | $ | 14 |  |  | $ | — |  |  | $ | 14 |
|  | 2012 |  |  | $ | — |  |  | $ | — |  |  | $ | 30 |  |  | $ | — |  |  | $ | 30 |
|  | 2011 |  |  | $ | — |  |  | $ | — |  |  | $ | 31 |  |  | $ | — |  |  | $ | 31 |
Assets |  |  | 2013 |  |  | $ | 1,847 |  |  | $ | 1,573 |  |  | $ | 1,327 |  |  | $ | 2,730 |  |  | $ | 7,477 |
|  |  | 2012 |  |  | $ | 1,189 |  |  | $ | 670 |  |  | $ | 1,312 |  |  | $ | 840 |  |  | $ | 4,011 |
* | Amounts included in “Eliminations and Other” consist of assets (including all cash and cash equivalents) and depreciation related to corporate activities. Also, the December 28, 2013 Assets balance in Corporate, Eliminations and Other includes $377 million of goodwill that will be allocated to reporting units when the purchase price allocation process is complete.
A reconciliation of the measure of Division operating income to Income (loss) before income taxes follows.
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Division operating income |  | $ | 155 |  |  | $ | 170 |  |  | $ | 186 |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |
Recovery of purchase price |  |  | — |  |  |  | 68 |  |  |  | — |
Asset impairments |  |  | (70 | ) |  |  | (139 | ) |  |  | — |
Merger, restructuring, and other operating expenses, net |  |  | (201 | ) |  |  | (56 | ) |  |  | (56 | )
Unallocated expenses |  |  | (89 | ) |  |  | (74 | ) |  |  | (96 | )
Interest income |  |  | 5 |  |  |  | 2 |  |  |  | 1 |
Interest expense |  |  | (69 | ) |  |  | (69 | ) |  |  | (33 | )
Loss on extinguishment of debt |  |  | — |  |  |  | (12 | ) |  |  | — |
Gain on disposition of joint venture |  |  | 382 |  |  |  | — |  |  |  | — |
Other income (expense), net |  |  | 14 |  |  |  | 35 |  |  |  | 31 |
Income (loss) before income taxes |  | $ | 127 |  |  | $ | (75 | ) |  | $ | 33 |
As of December 28, 2013, the Company sold to customers throughout North America, Europe, Asia/Pacific and Latin America. The Company operates through wholly-owned and majority-owned entities and participates in other ventures and alliances. There is no single country outside of the United States or single customer that accounts for 10% or more of the Company’s total sales. Geographic financial information relating to the Company’s business is as follows (in millions).
|  | Sales |  |  |  |  | Property and Equipment, Net |
|  | 2013 |  |  | 2012 |  |  | 2011 |  |  |  |  | 2013 |  |  | 2012 |  |  | 2011 |
United States |  | $ | 8,119 |  |  | $ | 7,671 |  |  | $ | 8,108 |  |  |  |  | $ | 977 |  |  | $ | 707 |  |  | $ | 902 |
International |  |  | 3,123 |  |  |  | 3,025 |  |  |  | 3,381 |  |  |  |  |  | 332 |  |  |  | 149 |  |  |  | 165 |
Total |  | $ | 11,242 |  |  | $ | 10,696 |  |  | $ | 11,489 |  |  |  |  | $ | 1,309 |  |  | $ | 856 |  |  | $ | 1,067 |
The Company classifies products into three categories: (1) supplies, (2) technology, and (3) furniture and other. The supplies category includes products such as paper, binders, writing instruments, and school supplies. The technology category includes products such as desktop and laptop computers, monitors, tablets, printers, ink and toner, cables, software, digital cameras, telephones, and wireless communications products. The furniture and other category includes products such as desks, chairs, luggage, sales in the copy and print centers, and other miscellaneous items. Total Company sales by product group were as follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Supplies |  |  | 46.6% |  |  |  | 45.8% |  |  |  | 44.6% |
Technology |  |  | 40.6% |  |  |  | 41.8% |  |  |  | 43.5% |
Furniture and other |  |  | 12.8% |  |  |  | 12.4% |  |  |  | 11.9% |
|  |  | 100.0% |  |  |  | 100.0% |  |  |  | 100.0% |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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