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DIVISION INFORMATION
 3 Months Ended
Mar. 26, 2016
DIVISION INFORMATION

NOTE 11. DIVISION 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 services. 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. 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 and Merger, restructuring and other operating expenses, net, 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.

The following is a summary of Sales and Division operating income (loss) by each of the Divisions, reconciled to consolidated totals.

 

     Sales  
     First Quarter  
(In millions)    2016      2015  

North American Retail Division

    $ 1,506       $ 1,653   

North American Business Solutions Division

      1,368         1,477   

International Division

      670         747   
  

 

 

     

 

 

  

Total

    $ 3,544       $ 3,877   
  

 

 

     

 

 

  
     Division Operating Income (Loss)  
     First Quarter  
(In millions)    2016      2015  

North American Retail Division

    $ 102       $ 86   

North American Business Solutions Division

      46         58   

International Division

      (10 )       14   
  

 

 

     

 

 

  

Total

    $ 138       $ 158   
  

 

 

     

 

 

  

 

A reconciliation of the measure of Division operating income to Consolidated income before income taxes is as follows:

 

     First Quarter  
(In millions)    2016      2015  

Total Division operating income

    $ 138       $ 158   

Add/(subtract):

      

Asset impairments

      —           (5 ) 

Merger, restructuring, and other operating expenses, net

      (44 )       (43 ) 

Unallocated expenses

      (23 )       (22 ) 

Interest income

      6         6   

Interest expense

      (22 )       (25 ) 

Other income, net

      —           1   
  

 

 

     

 

 

  

Income before income taxes

    $ 55       $ 70   
  

 

 

     

 

 

  

As of March 26, 2016 and December 26, 2015, goodwill totaled $378 million, of which $78 million was recorded in the North American Retail Division, $285 in the North American Business Solutions Division and $15 million in the International Division.