XML 47 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.8

DIVISION INFORMATION | 6 Months Ended
--- | ---
Jun. 28, 2014
DIVISION INFORMATION | NOTE 12. DIVISION 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. At June 28, 2014, 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 contract and Canadian business are included in the North American Business Solutions Division. The former OfficeMax businesses in Australia and New Zealand are included in the International Division. The former OfficeMax business in Mexico is presented as Other. Because of the pending sale, the integration of this business into the International Division was suspended during the second quarter and it is currently managed and reported independently of the Company’s other international businesses. Prior period segment information has been recast to reflect this change in the reporting structure. The office supply products and services offered across all operating segments are similar. 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. The following is a summary of significant accounts and balances by each of the Divisions, reconciled to consolidated totals.
|  | Sales |
|  | Second Quarter |  |  | First Half |
(In millions) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
North American Retail Division |  | $ | 1,457 |  |  | $ | 940 |  |  | $ | 3,267 |  |  | $ | 2,083 |
North American Business Solutions Division |  |  | 1,491 |  |  |  | 781 |  |  |  | 3,032 |  |  |  | 1,597 |
International Division |  |  | 834 |  |  |  | 698 |  |  |  | 1,768 |  |  |  | 1,457 |
Other |  |  | 59 |  |  |  | — |  |  |  | 127 |  |  |  | — |
Total |  | $ | 3,841 |  |  | $ | 2,419 |  |  | $ | 8,194 |  |  | $ | 5,137 |
|  | Division Operating Income (Loss) |
|  | Second Quarter |  |  | First Half |
(In millions) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
North American Retail Division |  | $ | (6 | ) |  | $ | (20 | ) |  | $ | 31 |  |  | $ | 1 |
North American Business Solutions Division |  |  | 59 |  |  |  | 31 |  |  |  | 99 |  |  |  | 57 |
International Division |  |  | (2 | ) |  |  | (5 | ) |  |  | 14 |  |  |  | 2 |
Total |  | $ | 51 |  |  | $ | 6 |  |  | $ | 144 |  |  | $ | 60 |
A reconciliation of the measure of Division operating income to Consolidated loss before income taxes is as follows:
|  | Second Quarter |  |  | First Half |
(In millions) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Total Division operating income |  | $ | 51 |  |  | $ | 6 |  |  | $ | 144 |  |  | $ | 60 |
Add/(subtract): |  |  |  |  |  |  |  |
Other operating income |  |  | 2 |  |  |  | — |  |  |  | 8 |  |  |  | — |
Asset impairments |  |  | (22 | ) |  |  | (4 | ) |  |  | (72 | ) |  |  | (10 | )
Merger, restructuring, and other operating expenses, net |  |  | (103 | ) |  |  | (27 | ) |  |  | (204 | ) |  |  | (46 | )
Legal accrual |  |  | (80 | ) |  |  | — |  |  |  | (80 | ) |  |  | — |
Unallocated expenses |  |  | (33 | ) |  |  | (20 | ) |  |  | (59 | ) |  |  | (39 | )
Interest income |  |  | 6 |  |  |  | — |  |  |  | 12 |  |  |  | — |
Interest expense |  |  | (16 | ) |  |  | (17 | ) |  |  | (41 | ) |  |  | (33 | )
Other income (expense), net |  |  | (2 | ) |  |  | 8 |  |  |  | (2 | ) |  |  | 13 |
Loss before income taxes |  | $ | (197 | ) |  | $ | (54 | ) |  | $ | (294 | ) |  | $ | (55 | )
The gross amount of goodwill and the amount of accumulated impairment losses as of June 28, 2014 are provided in the following table:
(In millions) |  | North American Retail Division |  |  | North American Business Solutions Division |  |  | International Division |  |  | Corporate |  |  | Total |
Goodwill |  | $ | 2 |  |  | $ | 370 |  |  | $ | 907 |  |  | $ | 377 |  |  | $ | 1,656 |
Accumulated impairment losses |  |  | (2 | ) |  |  | (349 | ) |  |  | (907 | ) |  |  | — |  |  |  | (1,258 | )
Balance as of December 28, 2013 |  |  | — |  |  |  | 21 |  |  |  | — |  |  |  | 377 |  |  |  | 398 |
2014 Changes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Measurement period adjustments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (8 | ) |  |  | (8 | )
Balance as of June 28, 2014 |  | $ | — |  |  | $ | 21 |  |  | $ | — |  |  | $ | 369 |  |  | $ | 390 |
Because the allocation of consideration related to the Merger is incomplete, the goodwill associated with the transaction has not yet been allocated to the reporting units and is included in Corporate above. The purchase price allocation and the allocation of goodwill on a relative fair value basis are expected to be complete within the measurement period that will not exceed one year from the transaction date. Refer to Note 2 for additional information on the goodwill associated with the Merger and measurement period adjustments.

X
- 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 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 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 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: 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 5: 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 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration