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SEGMENT INFORMATION | 9 Months Ended
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Sep. 29, 2018
Segment Reporting [Abstract] |
SEGMENT INFORMATION | NOTE 5. SEGMENT INFORMATION The Company had two reportable segments during 2017 until the acquisition of CompuCom on November 8, 2017, at which time a third reportable segment was formed for that business based on how the Company is managed. The Business Solutions Division sells office supply products and services across the United States, Puerto Rico, U.S. Virgin Islands, and Canada. Business Solutions Division customers are served through dedicated sales forces, catalogs, telesales, and electronically through the Company’s internet sites. The Retail Division includes retail stores in the United States, Puerto Rico and the U.S. Virgin Islands, which offer office supplies, technology products and solutions, business machines and related supplies, print, cleaning, breakroom and facilities products, and office furniture as well as business services including copying, printing, mailing, shipping and technology support services. In addition, the print needs for retail and business customers are also facilitated through the Company’s regional print production centers. The CompuCom Division, which reflects the operations of CompuCom since its acquisition by the Company, sells information technology (“IT”) outsourcing services and products to enterprise organizations in the United States and Canada, and offers a broad range of solutions including end user computing support, managed IT services, data center monitoring and management, service desk, network infrastructure, IT workforce solutions, mobile device management and cloud services. The retained global sourcing operations previously included in the former International Division are not significant and have been presented as Other. Also included in Other is the elimination of intersegment revenues of $4 million and $10 million for the third quarter and year-to-date 2018, respectively. The Company’s three operating segments are the three reportable segments. The Business Solutions Division, Retail Division and CompuCom Division are managed separately as they represent separate channels in the way the Company serves its customers and are managed accordingly. The accounting policies for each segment are the same as those described in Note 1 in the Company’s 2017 Form 10-K. 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 Business Solutions, Retail, and CompuCom Divisions, including Asset impairments and Merger and restructuring 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. In addition, the Company regularly evaluates the appropriateness of the reportable segments based on how the business is managed, including decision-making about resources allocation and assessing performance of the segments, particularly in light of organizational changes, merger and acquisition activity and changing laws and regulations. Therefore, the current reportable segments may change in the future. The following is a summary of sales and operating income (loss) by each of the Divisions and Other, reconciled to consolidated totals, after the elimination of the discontinued operations for all periods.
|  | Sales |
|  | Third Quarter |  |  | Year-to-Date |
(In millions) |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Business Solutions Division |  | $ | 1,364 |  |  | $ | 1,288 |  |  | $ | 3,990 |  |  | $ | 3,851 |
Retail Division |  |  | 1,254 |  |  |  | 1,329 |  |  |  | 3,551 |  |  |  | 3,799 |
CompuCom Division |  |  | 268 |  |  |  | — |  |  |  | 803 |  |  |  | — |
Other |  |  | 1 |  |  |  | 3 |  |  |  | 1 |  |  |  | 9 |
Total |  | $ | 2,887 |  |  | $ | 2,620 |  |  | $ | 8,345 |  |  | $ | 7,659 |
|  | Division Operating Income (Loss) |
|  | Third Quarter |  |  | Year-to-Date |
(In millions) |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Business Solutions Division |  | $ | 67 |  |  | $ | 71 |  |  | $ | 189 |  |  | $ | 193 |
Retail Division |  |  | 70 |  |  |  | 82 |  |  |  | 165 |  |  |  | 214 |
CompuCom Division |  |  | 1 |  |  |  | — |  |  |  | 12 |  |  |  | — |
Other |  |  | — |  |  |  | (1 | ) |  |  | (1 | ) |  |  | (2 | )
Total |  | $ | 138 |  |  | $ | 152 |  |  | $ | 365 |  |  | $ | 405 |
A reconciliation of the measure of Division operating income to Consolidated income from continuing operations before income taxes is as follows:
|  | Third Quarter |  |  | Year-to-Date |
(In millions) |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Total Divisions operating income |  | $ | 138 |  |  | $ | 152 |  |  | $ | 365 |  |  | $ | 405 |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset impairments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1 | )
Merger and restructuring expenses, net |  |  | (14 | ) |  |  | (22 | ) |  |  | (45 | ) |  |  | (62 | )
Unallocated expenses |  |  | (19 | ) |  |  | (25 | ) |  |  | (90 | ) |  |  | (70 | )
Interest income |  |  | 7 |  |  |  | 6 |  |  |  | 18 |  |  |  | 17 |
Interest expense |  |  | (31 | ) |  |  | (13 | ) |  |  | (91 | ) |  |  | (39 | )
Other income, net |  |  | 4 |  |  |  | 2 |  |  |  | 11 |  |  |  | 8 |
Income from continuing operations before income taxes |  | $ | 85 |  |  | $ | 100 |  |  | $ | 168 |  |  | $ | 258 |
The components of goodwill by segment are provided in the following table:
|  | Business Solutions |  |  | Retail |  |  | CompuCom |  |  |  |  |
(In millions) |  | Division |  |  | Division |  |  | Division |  |  | Total |
Balance as of December 30, 2017 |  | $ | 328 |  |  | $ | 78 |  |  | $ | 445 |  |  | $ | 851 |
Acquisitions |  |  | 42 |  |  |  | — |  |  |  | 13 |  |  |  | 55 |
Foreign currency rate impact |  |  | — |  |  |  | — |  |  |  | (6 | ) |  |  | (6 | )
Purchase accounting adjustments |  |  | 3 |  |  |  | — |  |  |  | 5 |  |  |  | 8 |
Balance as of September 29, 2018 |  | $ | 373 |  |  | $ | 78 |  |  | $ | 457 |  |  | $ | 908 |
Refer to Note 2 for additional information on the acquisitions made during year-to-date 2018.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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