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DIVISION INFORMATION
 3 Months Ended
Apr. 01, 2017
DIVISION INFORMATION

NOTE 11. DIVISION INFORMATION

Following the decision to sell the OD European Business and substantially all of the remaining operations that previously were presented as the International Division, and their presentation as discontinued operations, the Company has two operating segments which are also the 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 services. The North American Business Solutions Division sells office supply products and services in the United States, including Puerto Rico and 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 April 1, 2017 and have been presented as Other.

The office supply products and services offered across the 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 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, after the elimination of the discontinued operations for all periods.

 

     Sales  
     First Quarter  
(In millions)    2017      2016  

North American Retail Division

    $ 1,358    $ 1,506

North American Business Solutions Division

      1,315      1,368

Other

      3      2
  

 

 

     

 

 

  

Total

    $ 2,676    $ 2,876
  

 

 

     

 

 

  
     Division Operating Income
(loss)		  
     First Quarter  
(In millions)    2017      2016  

North American Retail Division

    $ 112    $ 102

North American Business Solutions Division

      58      46

Other

      (1 )      —    
  

 

 

     

 

 

  

Total

    $ 169    $ 148
  

 

 

     

 

 

  

 

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

 

     First Quarter  
(In millions)    2017      2016  

Total Division operating income

    $ 169    $ 148

Add/(subtract):

   

Merger, restructuring, and other operating expenses, net

      (20 )      (39 )

Unallocated expenses

      (22 )      (24 )

Interest income

      6      6

Interest expense

      (13 )      (22 )

Other income, net

      1      —    
  

 

 

     

 

 

  

Income from continuing operations before income taxes

    $ 121    $ 69
  

 

 

     

 

 

  

As of April 1, 2017, goodwill totaled $363 million, of which $78 million was recorded in the North American Retail Division and $285 million in the North American Business Solutions Division.