XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

REVENUE RECOGNITION | 9 Months Ended
--- | ---
Sep. 26, 2020
Revenue From Contract With Customer [Abstract] |
REVENUE RECOGNITION | NOTE 4. REVENUE RECOGNITION PRODUCTS AND SERVICES REVENUE The following table provides information about disaggregated revenue by Division, and major products and services categories.
|  | Third Quarter of 2020 |
(In millions) |  | Business Solutions Division |  |  | Retail Division |  |  | CompuCom Division |  |  | Other |  |  | Total |
Major products and services categories |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supplies |  | $ | 632 |  |  | $ | 401 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 1,035 |
Technology |  |  | 303 |  |  |  | 473 |  |  |  | 45 |  |  |  | (2 | ) |  |  | 819 |
Furniture and other |  |  | 192 |  |  |  | 163 |  |  |  | — |  |  |  | — |  |  |  | 355 |
Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Technology |  |  | — |  |  |  | 6 |  |  |  | 149 |  |  |  | (3 | ) |  |  | 152 |
Copy, print, and other |  |  | 70 |  |  |  | 104 |  |  |  | 3 |  |  |  | 1 |  |  |  | 178 |
Total |  | $ | 1,197 |  |  | $ | 1,147 |  |  | $ | 197 |  |  | $ | (2 | ) |  | $ | 2,539 |
|  | Third Quarter of 2019 |
(In millions) |  | Business Solutions Division |  |  | Retail Division |  |  | CompuCom Division |  |  | Other |  |  | Total |
Major products and services categories |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supplies |  | $ | 758 |  |  | $ | 495 |  |  | $ | — |  |  | $ | 4 |  |  | $ | 1,257 |
Technology |  |  | 302 |  |  |  | 422 |  |  |  | 71 |  |  |  | — |  |  | $ | 795 |
Furniture and other |  |  | 204 |  |  |  | 119 |  |  |  | — |  |  |  | 2 |  |  | $ | 325 |
Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Technology |  |  | — |  |  |  | 7 |  |  |  | 176 |  |  |  | (3 | ) |  | $ | 180 |
Copy, print, and other |  |  | 86 |  |  |  | 134 |  |  |  | 5 |  |  |  | — |  |  | $ | 225 |
Total |  | $ | 1,350 |  |  | $ | 1,177 |  |  | $ | 252 |  |  | $ | 3 |  |  | $ | 2,782 |
|  | Year-to-Date 2020 |
(In millions) |  | Business Solutions Division |  |  | Retail Division |  |  | CompuCom Division |  |  | Other |  |  | Total |
Major products and services categories |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supplies |  | $ | 1,934 |  |  | $ | 1,085 |  |  | $ | — |  |  | $ | 10 |  |  | $ | 3,029 |
Technology |  |  | 890 |  |  |  | 1,379 |  |  |  | 166 |  |  |  | 1 |  |  |  | 2,436 |
Furniture and other |  |  | 514 |  |  |  | 420 |  |  |  | — |  |  |  | 4 |  |  |  | 938 |
Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Technology |  |  | — |  |  |  | 21 |  |  |  | 471 |  |  |  | (10 | ) |  |  | 482 |
Copy, print, and other |  |  | 216 |  |  |  | 311 |  |  |  | 9 |  |  |  | 1 |  |  |  | 537 |
Total |  | $ | 3,554 |  |  | $ | 3,216 |  |  | $ | 646 |  |  | $ | 6 |  |  | $ | 7,422 |
|  | Year-to-Date 2019 |
(In millions) |  | Business Solutions Division |  |  | Retail Division |  |  | CompuCom Division |  |  | Other |  |  | Total |
Major products and services categories |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Products |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supplies |  | $ | 2,264 |  |  | $ | 1,302 |  |  | $ | — |  |  | $ | 10 |  |  | $ | 3,576 |
Technology |  |  | 941 |  |  |  | 1,294 |  |  |  | 209 |  |  |  | 1 |  |  |  | 2,445 |
Furniture and other |  |  | 576 |  |  |  | 320 |  |  |  | — |  |  |  | 4 |  |  |  | 900 |
Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Technology |  |  | — |  |  |  | 21 |  |  |  | 539 |  |  |  | (9 | ) |  |  | 551 |
Copy, print, and other |  |  | 241 |  |  |  | 415 |  |  |  | 10 |  |  |  | 1 |  |  |  | 667 |
Total |  | $ | 4,022 |  |  | $ | 3,352 |  |  | $ | 758 |  |  | $ | 7 |  |  | $ | 8,139 |
Products revenue includes the sale of:
| • | Supplies such as paper, writing instruments, office supplies, cleaning and breakroom items;
| • | Technology related products such as toner and ink, printers, computers, tablets and accessories, and electronic storage; and
| • | Furniture and other products such as desks, seating, and luggage.
The Company sells its supplies, furniture and other products through its Business Solutions and Retail Divisions, and its technology products through all three Divisions. Customers can purchase products through the Company’s call centers, electronically through its Internet websites, or through its retail stores. Revenues from supplies, technology, and furniture and other product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. Furniture and other products also include arrangements where customers can make special furniture interior design and installation orders that are customized to their needs. The performance obligations related to these arrangements are satisfied over time. Services revenue includes the sale of:
| • | Technology service offerings provided through the Company’s CompuCom Division, such as technology lifecycle management, end user computing and collaboration, service desk, remote technology monitoring and management, and information technology (“IT”) workforce solutions, as well as technology support services offerings provided in the Company’s retail stores, such as installation and repair, and;
| • | Copy, print, and other service offerings such as managed print and fulfillment services, product subscriptions, and sales of third party software, gift cards, warranties, remote support as well as rental income on operating lease arrangements where the Company conveys to its customers the right to use devices and other equipment for a stated period.
The largest offering in the technology service category is end user computing, which provides on-site services to assist corporate end users with their IT needs. Services are either billed on a rate per hour, per event, or per user, or on a fixed recurring basis. For the majority of technology service offerings contracts, the Company has the right to invoice the customer for an amount that directly corresponds with the value to the customer of the Company’s performance to date and as such the Company recognizes revenue based on the amount billable to the customer in accordance with the practical expedient provided by the current revenue guidance. Substantially all of the Company’s other service offerings are satisfied at a point in time and revenue is recognized as such. The largest other service offering is copy and print services, which includes printing, copying, and digital imaging. The majority of copy and print services are fulfilled through retail stores and the related performance obligations are satisfied within a short period of time (generally within the same day). REVENUE RECOGNITION AND SIGNIFICANT JUDGMENTS Revenue is recognized upon transfer of control of promised products or services to customers for an amount that reflects the consideration the Company is entitled to receive in exchange for those products or services. For product sales, transfer of control occurs at a point in time, typically upon delivery to the customer. For service offerings, the transfer of control and satisfaction of the performance obligation is either over time or at a point in time. When performance obligations are satisfied over time, the Company evaluates the pattern of delivery and progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Revenue is recognized net of allowance for returns and net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling costs are considered fulfillment activities and are recognized within the Company’s cost of goods sold. Contracts with customers could include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Determining the standalone selling price also requires judgment. The Company did not have significant revenues generated from such contracts year-to-date 2020 and year-to-date 2019. Products are generally sold with a right of return and the Company may provide other incentives, such as rebates and coupons, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company estimates returns and incentives at contract inception and includes the amount in the transaction price for which significant reversal is not probable. These estimates are updated at the end of each reporting period as additional information becomes available. The Company offers a customer loyalty program that provides customers with rewards that can be applied to future purchases or other incentives. Loyalty rewards are accounted for as a separate performance obligation and deferred revenue is recorded in the amount of the transaction price allocated to the rewards, inclusive of the impact of estimated breakage. The estimated breakage of loyalty rewards is based on historical redemption rates experienced under the loyalty program. Revenue is recognized when the loyalty rewards are redeemed or expire. As of both September 26, 2020 and December 28, 2019, the Company had $12 million of deferred revenue related to the loyalty program, which is included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. The Company recognizes revenue in certain circumstances before product delivery occurs (commonly referred to as bill-and-hold transactions). Revenue from bill-and-hold transactions is recognized when all specific requirements for transfer of control under a bill-and-hold arrangement have been met which include, among other things, a request from the customer that the product be held for future scheduled delivery. For these bill-and-hold arrangements, the associated product inventory is identified separately as belonging to the customer and is ready for physical transfer. CONTRACT BALANCES The timing of revenue recognition may differ from the timing of invoicing to customers. A receivable is recognized in the period the Company delivers goods or provides services, and is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is also recognized for unbilled services where the Company’s right to consideration is unconditional, and is recorded based on an estimate of time and materials. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that the contracts do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services. The Company receives payments from customers based upon contractual billing schedules. Contract assets include amounts related to deferred contract acquisition costs (refer to the section “Costs to Obtain a Contract” below) and if applicable, the Company’s conditional right to consideration for completed performance under a contract. The short- and long-term components of contract assets in the table below are included in Prepaid expenses and other current assets, and Other assets, respectively, in the Condensed Consolidated Balance Sheets. Contract liabilities include payments received in advance of performance under the contract, which are recognized as revenue when the performance obligation is completed under the contract, as well as accrued contract acquisition costs, liabilities related to the Company’s loyalty program and gift cards. The short- and long-term components of contract liabilities in the table below are included in Accrued expenses and other current liabilities, and Deferred income taxes and other long-term liabilities, respectively, in the Condensed Consolidated Balance Sheets. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:
|  | September 26, |  |  | December 28, |
(In millions) |  | 2020 |  |  | 2019 |
Trade receivables, net |  | $ | 523 |  |  | $ | 599 |
Short-term contract assets |  |  | 17 |  |  |  | 23 |
Long-term contract assets |  |  | 14 |  |  |  | 17 |
Short-term contract liabilities |  |  | 51 |  |  |  | 52 |
Long-term contract liabilities |  |  | 3 |  |  |  | 1 |
Year-to-date 2020 and year-to-date 2019, the Company did not have any contract assets related to conditional rights. The Company recognized revenues of $25 million both year-to-date 2020 and year-to-date 2019, which were included in the short-term contract liability balance at the beginning of each respective period. There were no contract assets and liabilities that were recognized year-to-date 2020 and year-to-date 2019 as a result of business combinations. There were no significant adjustments to revenue from performance obligations satisfied in previous periods and there were no contract assets recognized at the beginning of each respective period that transferred to receivables year-to-date 2020 and year-to-date 2019. A majority of the purchase orders and statements of work related to contracts with customers require delivery of the product or service within one year or less. For certain service contracts that exceed one year, the Company recognizes revenue at the amount to which it has the right to invoice for services performed. Accordingly, the Company has applied the optional exemption provided by the new revenue recognition standard relating to unsatisfied performance obligations and does not disclose the value of unsatisfied performance obligations for its contracts. COSTS TO OBTAIN A CONTRACT The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain rebate incentive programs meet the requirements to be capitalized. These costs are periodically reviewed for impairment, and are amortized on a straight-line basis over the expected period of benefit. As of September 26, 2020 and December 28, 2019, capitalized acquisition costs amounted to $31 million and $40 million, respectively, and are reflected in short-term contract assets and long-term contract assets in the table above. In the third quarter and year-to-date 2020, amortization expense was $8 million and $23 million, respectively. In the third quarter and year-to-date 2019, amortization expense was $9 million and $26 million, respectively. The Company had no asset impairment charges related to contract assets in the periods presented herein. There is uncertainty regarding the impacts of COVID-19, the novel coronavirus disease that was declared a pandemic by the World Health Organization on March 11, 2020, on the global and national economies, which could negatively affect our customers and result in future impairments of contract assets.

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

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration