XML 38 R24.htm IDEA: XBRL DOCUMENT
v3.6.0.2

SEGMENT INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2016
SEGMENT INFORMATION | NOTE 16. SEGMENT INFORMATION Following the application of discontinued operations accounting for substantially all of the businesses formerly presented as the International Division, the Company has two reportable segments: North American Retail Division and North American Business Solutions 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 throughout North America, including the United States, Puerto Rico, the U.S. Virgin Islands and Canada. North American Business Solutions Division customers are served through dedicated sales forces, through catalogs, telesales, and electronically through its internet sites. The retained operations previously included in the International Division are not significant at December 31, 2016 and have been presented as Other, pending management assessment of the future of this business and how it will be managed. The office supply products and services offered across all operating segments are similar. The Company’s two operating segments are the two 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. Due to the sale of the Company’s interest in Grupo OfficeMax in August 2014, the joint venture’s results have been reported as the Corporate level 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 (income) 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. A summary of significant accounts and balances by segment, reconciled to consolidated totals, after the elimination of discontinued operations for all periods is as follows.
(In millions) |  |  |  |  | North American Retail |  |  | North American Business Solutions |  |  | Other |  |  | Corporate, Eliminations, and Discontinued Operations* |  |  | Consolidated Total |
Sales |  |  | 2016 |  |  | $ | 5,603 |  |  | $ | 5,400 |  |  | $ | 18 |  |  | $ | — |  |  | $ | 11,021 |
|  |  | 2015 |  |  |  | 6,004 |  |  |  | 5,708 |  |  |  | 15 |  |  |  | — |  |  |  | 11,727 |
|  |  | 2014 |  |  |  | 6,528 |  |  |  | 6,013 |  |  |  | 14 |  |  |  | 155 |  |  |  | 12,710 |
Division operating income |  |  | 2016 |  |  |  | 299 |  |  |  | 265 |  |  |  | 1 |  |  |  | — |  |  |  | 565 |
|  |  | 2015 |  |  |  | 310 |  |  |  | 226 |  |  |  | 3 |  |  |  | — |  |  |  | 539 |
|  |  | 2014 |  |  |  | 126 |  |  |  | 232 |  |  |  | 1 |  |  |  | — |  |  |  | 359 |
Capital expenditures |  |  | 2016 |  |  |  | 58 |  |  |  | 42 |  |  |  | — |  |  |  | 11 |  |  |  | 111 |
|  |  | 2015 |  |  |  | 56 |  |  |  | 70 |  |  |  | — |  |  |  | 18 |  |  |  | 144 |
|  |  | 2014 |  |  |  | 44 |  |  |  | 29 |  |  |  | — |  |  |  | 23 |  |  |  | 96 |
Depreciation and amortization |  |  | 2016 |  |  |  | 90 |  |  |  | 69 |  |  |  | — |  |  |  | 22 |  |  |  | 181 |
|  |  | 2015 |  |  |  | 130 |  |  |  | 82 |  |  |  | — |  |  |  | 41 |  |  |  | 253 |
|  |  | 2014 |  |  |  | 140 |  |  |  | 85 |  |  |  | — |  |  |  | 52 |  |  |  | 277 |
Charges for losses on receivables and inventories |  |  | 2016 |  |  |  | 58 |  |  |  | 20 |  |  |  | — |  |  |  | — |  |  |  | 78 |
|  |  | 2015 |  |  |  | 42 |  |  |  | 11 |  |  |  | — |  |  |  | — |  |  |  | 53 |
|  |  | 2014 |  |  |  | 48 |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 52 |
Assets |  |  | 2016 |  |  |  | 1,542 |  |  |  | 1,713 |  |  |  | 4 |  |  |  | 2,281 |  |  |  | 5,540 |
|  |  | 2015 |  |  |  | 1,625 |  |  |  | 1,607 |  |  |  | 4 |  |  |  | 3,206 |  |  |  | 6,442 |
|  |  | 2014 |  |  |  | 1,736 |  |  |  | 1,687 |  |  |  | 4 |  |  |  | 3,330 |  |  |  | 6,757 |
* | Amounts included in “Corporate, Eliminations, and Discontinued Operations” consist of (i) assets (including all cash and cash equivalents) and depreciation related to corporate activities of continuing operations, (ii) assets of discontinued operations amounting to $142 million, $1.1 billion and $1.2 billion for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, respectively, and (iii) accounts and balances associated with Grupo OfficeMax prior to disposition.
A reconciliation of the measure of Division operating income to Consolidated income (loss) from continuing operations before income taxes is as follows:
(In millions) |  | 2016 |  |  | 2015 |  |  | 2014 |
Division operating income |  | $ | 565 |  |  | $ | 539 |  |  | $ | 359 |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |
Other operating income (loss) |  |  | — |  |  |  | — |  |  |  | 8 |
Asset impairments |  |  | (15 | ) |  |  | (13 | ) |  |  | (56 | )
Merger, restructuring, and other operating income (expenses), net |  |  | 80 |  |  |  | (242 | ) |  |  | (334 | )
Legal accrual |  |  | — |  |  |  | — |  |  |  | (81 | )
Unallocated expenses |  |  | (99 | ) |  |  | (101 | ) |  |  | (124 | )
Interest income |  |  | 22 |  |  |  | 22 |  |  |  | 22 |
Interest expense |  |  | (80 | ) |  |  | (91 | ) |  |  | (87 | )
Loss on extinguishment of debt |  |  | (15 | ) |  |  | — |  |  |  | — |
Other income (expense), net |  |  | 1 |  |  |  | 1 |  |  |  | 2 |
Income (loss) from continuing operations before income taxes |  | $ | 459 |  |  | $ | 115 |  |  | $ | (291 | )
There is no single customer that accounts for 10% or more of the Company’s total sales. The Company classifies products into three broad categories: (1) supplies, (2) technology, and (3) furniture and other. The supplies category includes products such as paper, writing instruments, office supplies, cleaning and breakroom items. The technology category includes products such as toner and ink, computers, tablets and accessories, printers, electronic storage, as well as services for technology products. The furniture and other category includes products such as desks, seating, and luggage, as well as sales in our copy and print centers. Total Company sales by product category were as follows:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Supplies |  |  | 45.2% |  |  |  | 44.4% |  |  |  | 43.6% |
Technology |  |  | 38.9% |  |  |  | 40.2% |  |  |  | 41.2% |
Furniture and other |  |  | 15.9% |  |  |  | 15.4% |  |  |  | 15.2% |
|  |  | 100.0% |  |  |  | 100.0% |  |  |  | 100.0% |
As of December 31, 2016, goodwill totaled $363 million, of which $78 million was recorded in the North American Retail Division and $285 million in the North American Solutions Division.

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 34 -URI http://asc.fasb.org/extlink&oid=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration