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QUARTERLY FINANCIAL DATA | 12 Months Ended
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Dec. 31, 2016
QUARTERLY FINANCIAL DATA | NOTE 17. QUARTERLY FINANCIAL DATA (UNAUDITED)
(In millions, except per share amounts) |  | First Quarter |  |  | Second Quarter |  |  | Third Quarter(3) |  |  | Fourth Quarter |
Fiscal Year Ended December 31, 2016* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 2,876 |  |  | $ | 2,583 |  |  | $ | 2,836 |  |  | $ | 2,725 |
Gross profit |  |  | 715 |  |  |  | 613 |  |  |  | 726 |  |  |  | 653 |
Operating income |  |  | 85 |  |  |  | 271 |  |  |  | 117 |  |  |  | 57 |
Net income from continuing operations(1) |  |  | 62 |  |  |  | 232 |  |  |  | 330 |  |  |  | 55 |
Discontinued operations, net of tax |  |  | (16 | ) |  |  | (22 | ) |  |  | (137 | ) |  |  | 25 |
Net income (loss) |  |  | 46 |  |  |  | 210 |  |  |  | 193 |  |  |  | 80 |
Basic earnings (loss) per share(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 0.11 |  |  | $ | 0.42 |  |  | $ | 0.62 |  |  | $ | 0.11 |
Discontinued operations |  | $ | (0.03 | ) |  | $ | (0.04 | ) |  | $ | (0.26 | ) |  | $ | 0.05 |
Basic earnings per share |  | $ | 0.08 |  |  | $ | 0.38 |  |  | $ | 0.36 |  |  | $ | 0.15 |
Diluted earnings (loss) per share(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 0.11 |  |  | $ | 0.41 |  |  | $ | 0.61 |  |  | $ | 0.10 |
Discontinued operations |  | $ | (0.03 | ) |  | $ | (0.04 | ) |  | $ | (0.25 | ) |  | $ | 0.05 |
Diluted earnings per share |  | $ | 0.08 |  |  | $ | 0.38 |  |  | $ | 0.35 |  |  | $ | 0.15 |
* | Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The first quarter and second quarter amounts reflect application of discontinued operations accounting that was effective in the third quarter.
(1) | In the first, second, third and fourth quarters of 2016, captions include pre-tax Merger, restructuring, and other operating expenses, net totaling $40 million, $(193) million, $31 million and $43 million, respectively, and asset impairments of $0 million, $0 million, $9 million and $6 million, respectively. The second quarter of 2016 Merger, restructuring and other operating expenses, net includes $250 million Termination Fee received pursuant to termination of the Staples Merger Agreement. The third quarter and fourth quarters include non-cash tax benefits of approximately $240 million and $140 million, respectively, from the release of valuation allowances on deferred tax assets.
(2) | The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding.
(3) | The amounts in the table above for the third quarter 2016 are as corrected to adjust for an error that was not material to the overall presentation. When the Company committed to a plan to sell substantially all of the business formerly reported as the International Division, it provided reference to the cumulative translation adjustment (“CTA”) balance that existed at the end of the third quarter 2016, but did not include CTA in its impairment analysis. As a result, the loss amount of Discontinued operations, net of tax was overstated. The measurement has been corrected for the full year 2016 amounts. This correcting adjustment is provided below and would impact the same captioned line items in various portions of the third quarter financial statements by the same amount, as well as the current assets of discontinued operations, accumulated deficit and totals including those accounts.
|  | Third Quarter 2016 |  |  | Year-to-Date Third Quarter 2016 |
($ in Millions, except per share) |  | As Reported |  |  | Adjustment |  |  | As Corrected |  |  | As Reported |  |  | Adjustment |  |  | As Corrected |
Discontinued operations, net of tax |  | $ | (286 | ) |  | $ | 149 |  |  | $ | (137 | ) |  | $ | (324 | ) |  | $ | 149 |  |  | $ | (175 | )
Net income (loss) |  | $ | 44 |  |  | $ | 149 |  |  | $ | 193 |  |  | $ | 300 |  |  | $ | 149 |  |  | $ | 449 |
Basic earnings (loss) per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discontinued operations |  | $ | (0.54 | ) |  | $ | 0.28 |  |  | $ | (0.26 | ) |  | $ | (0.60 | ) |  | $ | 0.28 |  |  | $ | (0.32 | )
Net earnings (loss) |  | $ | 0.08 |  |  | $ | 0.28 |  |  | $ | 0.36 |  |  | $ | 0.55 |  |  | $ | 0.27 |  |  | $ | 0.82 |
Diluted earnings per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discontinued operations |  | $ | (0.54 | ) |  | $ | 0.29 |  |  | $ | (0.25 | ) |  | $ | (0.60 | ) |  | $ | 0.28 |  |  | $ | (0.32 | )
Net earnings (loss) |  | $ | 0.08 |  |  | $ | 0.27 |  |  | $ | 0.35 |  |  | $ | 0.54 |  |  | $ | 0.27 |  |  | $ | 0.81 |
(In millions, except per share amounts) |  | First Quarter |  |  | Second Quarter |  |  | Third Quarter |  |  | Fourth Quarter |
Fiscal Year Ended December 26, 2015* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 3,131 |  |  | $ | 2,784 |  |  | $ | 3,046 |  |  | $ | 2,767 |
Gross profit |  |  | 761 |  |  |  | 659 |  |  |  | 787 |  |  |  | 656 |
Operating income (loss) |  |  | 88 |  |  |  | (27 | ) |  |  | 81 |  |  |  | 42 |
Net income (loss) from continuing operations(1) |  |  | 49 |  |  |  | (31 | ) |  |  | 42 |  |  |  | 31 |
Discontinued operations, net of tax |  |  | (4 | ) |  |  | (27 | ) |  |  | (36 | ) |  |  | (16 | )
Net income (loss)(1) |  |  | 45 |  |  |  | (58 | ) |  |  | 6 |  |  |  | 15 |
Basic earnings (loss) per share(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 0.09 |  |  | $ | (0.06 | ) |  | $ | 0.08 |  |  | $ | 0.06 |
Discontinued operations |  | $ | (0.01 | ) |  | $ | (0.05 | ) |  | $ | (0.07 | ) |  | $ | (0.03 | )
Basic earnings per share |  | $ | 0.08 |  |  | $ | (0.11 | ) |  | $ | 0.01 |  |  | $ | 0.03 |
Diluted earnings (loss) per share(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 0.09 |  |  | $ | (0.06 | ) |  | $ | 0.08 |  |  | $ | 0.06 |
Discontinued operations |  | $ | (0.01 | ) |  | $ | (0.05 | ) |  | $ | (0.07 | ) |  | $ | (0.03 | )
Diluted earnings per share |  | $ | 0.08 |  |  | $ | (0.11 | ) |  | $ | 0.01 |  |  | $ | 0.03 |
* | Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The amounts reflect application of discontinued operations accounting.
(1) | In the first, second, third and fourth quarters of 2015, captions include pre-tax Merger, restructuring, and other operating expenses, net totaling $29 million, $96 million, $79 million and $38 million, respectively, and asset impairments of $5 million, $4 million, $1 million and $3 million, respectively.
(2) | The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding.

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- Definition The entire disclosure for quarterly financial data. Includes, but is not limited to, tabular presentation of financial information for fiscal quarters, effect of year-end adjustments, and an explanation of matters or transactions that affect comparability of the information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=68076893&loc=d3e1570-108306 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e765-108305 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305 + Details
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