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SEGMENT INFORMATION | 12 Months Ended
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Dec. 26, 2015
SEGMENT INFORMATION | NOTE 17. SEGMENT INFORMATION The Company has three reportable segments: North American Retail Division, North American Business Solutions Division, and International Division. The North American Retail Division includes retail stores in the United States, including Puerto Rico and the U.S. Virgin Islands, which offer office supplies, technology products and solutions, business machines and related supplies, facilities products, and office furniture. Most stores also have a copy and print center offering printing, reproduction, mailing and shipping. The North American Business Solutions Division sells office supply products and services in Canada and the United States, including Puerto Rico and the U.S. Virgin Islands. North American Business Solutions Division customers are served through dedicated sales forces, through catalogs, telesales, and electronically through its Internet sites. The International Division sells office products and services through direct mail catalogs, contract sales forces, Internet sites, and retail stores in Europe and Asia/Pacific. The office supply products and services offered across all operating segments are similar. The Company’s three operating segments are the three reportable segments. The North American Retail Division and North American Business Solutions Division are managed separately, primarily because of the way customers are reached and served. The International Division is managed separately because of the geographical, operational and marketplace differences outside of North America. Due to the sale of the Company’s interest in Grupo OfficeMax in August 2014, the joint venture’s results have been reported as Other to align with how this information was presented for management reporting. The accounting policies for each segment are the same as those described in Note 1. Division operating income 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. Certain operating expenses and credits are not allocated to the Divisions including Asset impairments, Merger, restructuring and other operating expenses, net, and Legal accrual, as well as expenses and credits retained at the Corporate level, including certain management costs and legacy pension and environmental matters. 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. Assets for 2014 and 2013 reflect adoption in 2015 of the accounting standards as discussed in Note 1. 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 |  |  | 2015 |  |  | $ | 6,004 |  |  | $ | 5,708 |  |  | $ | 2,773 |  |  | $ | — |  |  | $ | 14,485 |
|  |  | 2014 |  |  |  | 6,528 |  |  |  | 6,013 |  |  |  | 3,400 |  |  |  | 155 |  |  |  | 16,096 |
|  |  | 2013 |  |  |  | 4,614 |  |  |  | 3,580 |  |  |  | 3,008 |  |  |  | 40 |  |  |  | 11,242 |
Division operating income |  |  | 2015 |  |  |  | 310 |  |  |  | 226 |  |  |  | 23 |  |  |  | — |  |  |  | 559 |
|  |  | 2014 |  |  |  | 126 |  |  |  | 232 |  |  |  | 53 |  |  |  | — |  |  |  | 411 |
|  |  | 2013 |  |  |  | 8 |  |  |  | 113 |  |  |  | 36 |  |  |  | — |  |  |  | 157 |
Capital expenditures |  |  | 2015 |  |  |  | 56 |  |  |  | 70 |  |  |  | 19 |  |  |  | 18 |  |  |  | 163 |
|  |  | 2014 |  |  |  | 44 |  |  |  | 29 |  |  |  | 29 |  |  |  | 21 |  |  |  | 123 |
|  |  | 2013 |  |  |  | 63 |  |  |  | 24 |  |  |  | 39 |  |  |  | 11 |  |  |  | 137 |
Depreciation and amortization |  |  | 2015 |  |  |  | 130 |  |  |  | 82 |  |  |  | 31 |  |  |  | 40 |  |  |  | 283 |
|  |  | 2014 |  |  |  | 140 |  |  |  | 85 |  |  |  | 35 |  |  |  | 53 |  |  |  | 313 |
|  |  | 2013 |  |  |  | 105 |  |  |  | 51 |  |  |  | 29 |  |  |  | 24 |  |  |  | 209 |
Charges for losses on receivables and inventories |  |  | 2015 |  |  |  | 42 |  |  |  | 11 |  |  |  | 7 |  |  |  | — |  |  |  | 60 |
|  | 2014 |  |  |  | 48 |  |  |  | 4 |  |  |  | 13 |  |  |  | 1 |  |  |  | 66 |
|  |  | 2013 |  |  |  | 38 |  |  |  | 9 |  |  |  | 12 |  |  |  | — |  |  |  | 59 |
Net earnings from equity method investments |  |  | 2015 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | 2014 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  | 2013 |  |  |  | — |  |  |  | — |  |  |  | 14 |  |  |  | — |  |  |  | 14 |
Assets |  |  | 2015 |  |  |  | 1,625 |  |  |  | 1,607 |  |  |  | 963 |  |  |  | 2,247 |  |  |  | 6,442 |
|  |  | 2014 |  |  |  | 1,736 |  |  |  | 1,687 |  |  |  | 1,160 |  |  |  | 2,174 |  |  |  | 6,757 |
|  |  | 2013 |  |  | $ | 1,804 |  |  | $ | 1,554 |  |  | $ | 1,152 |  |  | $ | 2,855 |  |  | $ | 7,365 |
* | Amounts included in “Corporate, Eliminations, and Other” consist of (i) assets (including all cash and cash equivalents) and depreciation related to corporate activities, (ii) accounts and balances associated with Grupo OfficeMax prior to disposition, and (iii) $377 million of goodwill in December 28, 2013, which was allocated to reporting units in 2014.
A reconciliation of the measure of Division operating income to Income (loss) before income taxes follows:
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Division operating income |  | $ | 559 |  |  | $ | 411 |  |  | $ | 157 |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |
Other operating income (loss) |  |  | — |  |  |  | 8 |  |  |  | (2 | )
Asset impairments |  |  | (13 | ) |  |  | (88 | ) |  |  | (70 | )
Merger, restructuring, and other operating expenses, net |  |  | (332 | ) |  |  | (403 | ) |  |  | (201 | )
Legal accrual |  |  | — |  |  |  | (81 | ) |  |  | — |
Unallocated expenses |  |  | (99 | ) |  |  | (122 | ) |  |  | (89 | )
Interest income |  |  | 24 |  |  |  | 24 |  |  |  | 5 |
Interest expense |  |  | (93 | ) |  |  | (89 | ) |  |  | (69 | )
Gain on disposition of joint venture |  |  | — |  |  |  | — |  |  |  | 382 |
Other income, net |  |  | 1 |  |  |  | — |  |  |  | 14 |
Income (loss) before income taxes |  | $ | 47 |  |  | $ | (340 | ) |  | $ | 127 |
As of December 26, 2015, the Company sold to customers throughout North America, Europe, and Asia/Pacific. The Company operates through wholly-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:
|  | Sales |  |  |  |  | Property and Equipment, Net |
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |  |  |  |  | 2015 |  |  | 2014 |  |  | 2013 |
United States |  | $ | 11,387 |  |  | $ | 12,132 |  |  | $ | 8,119 |  |  |  |  | $ | 617 |  |  | $ | 757 |  |  | $ | 977 |
International |  |  | 3,098 |  |  |  | 3,964 |  |  |  | 3,123 |  |  |  |  |  | 168 |  |  |  | 206 |  |  |  | 332 |
Total |  | $ | 14,485 |  |  | $ | 16,096 |  |  | $ | 11,242 |  |  |  |  | $ | 785 |  |  | $ | 963 |  |  | $ | 1,309 |
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, cleaning and breakroom items 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 category were as follows:
|  | 2015 |  |  | 2014 |  |  | 2013 |
Supplies |  |  | 47.6% |  |  |  | 47.2% |  |  |  | 46.6% |
Technology |  |  | 37.3% |  |  |  | 38.0% |  |  |  | 40.6% |
Furniture and other |  |  | 15.1% |  |  |  | 14.8% |  |  |  | 12.8% |
|  |  | 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 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 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=51669610&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 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 Reference 8: 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=51669610&loc=d3e8984-108599 Reference 9: 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=51669610&loc=d3e9031-108599 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=51669610&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 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
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