XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.19.1

SEGMENT INFORMATION | 3 Months Ended
--- | ---
Mar. 30, 2019
Segment Reporting [Abstract] |
SEGMENT INFORMATION | NOTE 5. SEGMENT INFORMATION At March 30, 2019, the Company had three reportable segments: Business Solutions Division, Retail Division and the CompuCom Division. The Business Solutions Division sells nationally branded as well as the Company’s private branded office supply and adjacency products and services to customers in the United States, Puerto Rico, the 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 websites. 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 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 $3 million for the first quarter of 2019 and $1 million for the first quarter of 2018. The office supply products and services offered by the Business Solutions Division and the Retail Division are similar, but the CompuCom Division’s offerings are focused on IT services and related products. The Company’s three operating segments are the three reportable segments. The Business Solutions Division, the Retail Division and the 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. 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 Division, the Retail Division and the CompuCom Division, 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 |
|  | First Quarter |
(In millions) |  | 2019 |  |  | 2018 |
Business Solutions Division |  | $ | 1,344 |  |  | $ | 1,328 |
Retail Division |  |  | 1,175 |  |  |  | 1,244 |
CompuCom Division |  |  | 247 |  |  |  | 257 |
Other |  |  | 3 |  |  |  | 1 |
Total |  | $ | 2,769 |  |  | $ | 2,830 |
|  | Division Operating Income (Loss) |
|  | First Quarter |
(In millions) |  | 2019 |  |  | 2018 |
Business Solutions Division |  | $ | 46 |  |  | $ | 55 |
Retail Division |  |  | 67 |  |  |  | 72 |
CompuCom Division |  |  | (15 | ) |  |  | 5 |
Other |  |  | — |  |  |  | — |
Total |  | $ | 98 |  |  | $ | 132 |
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) |  | 2019 |  |  | 2018 |
Total Divisions operating income |  | $ | 98 |  |  | $ | 132 |
Add/(subtract): |  |  |  |  |  |  |  |
Asset impairments |  |  | (29 | ) |  |  | — |
Merger and restructuring expenses, net |  |  | (14 | ) |  |  | (17 | )
Unallocated expenses |  |  | (31 | ) |  |  | (38 | )
Interest income |  |  | 6 |  |  |  | 6 |
Interest expense |  |  | (23 | ) |  |  | (29 | )
Other income, net |  |  | 2 |  |  |  | 1 |
Income from continuing operations before income taxes |  | $ | 9 |  |  | $ | 55 |
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 29, 2018 |  | $ | 387 |  |  | $ | 78 |  |  | $ | 449 |  |  | $ | 914 |
Acquisitions |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | 5 |
Foreign currency rate impact |  |  | — |  |  |  | — |  |  |  | 3 |  |  |  | 3 |
Balance as of March 30, 2019 |  | $ | 392 |  |  | $ | 78 |  |  | $ | 452 |  |  | $ | 922 |
Refer to Note 2 for additional information on the acquisitions made during the first quarter of 2019. As of March 30, 2019, the Company believes that its goodwill and indefinite-lived intangible assets are recoverable for all reporting units. The Company continues to monitor the performance of its CompuCom Division, which reported an operating loss for the first quarter of 2019 mainly driven by lower than expected revenue from existing customer contracts, compounded by less than commensurate reductions in associated expenses. The Company believes that the revenue and profitability shortfall in the first quarter of 2019 at CompuCom were temporary, and the long-term projections management used in the last goodwill recoverability assessment are still achievable. This is supported by the fact that CompuCom’s business has not fundamentally changed since the last goodwill impairment analysis. In addition, the Company has undertaken several actions to improve the future operating performance of CompuCom, including streamlining its operational structure to increase service velocity and efficiency, reorganizing its customer-facing organization to better align with customer needs, and realigning its sales team to more effectively identify new opportunities to increase penetration of existing customers and accelerate cross-selling opportunities. However, if the Company’s actions do not result in improved financial performance at CompuCom, there is a reasonable possibility of future impairment of goodwill and indefinite-lived intangible assets for the CompuCom Division reporting unit.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration