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v3.22.2.2

SEGMENT INFORMATION (Tables) | 9 Months Ended
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Sep. 24, 2022
Segment Reporting [Abstract] |
Summary of Sales and Operating Income (Loss) by Each of the Divisions, Reconciled to Consolidated Totals | The following is a summary of sales and operating income (loss) by each of the Divisions, reconciled to consolidated totals:
(In millions) |  | ODP Business Solutions Division |  |  | Office Depot Division |  |  | Veyer Division |  |  | Varis Division |  |  | Eliminations |  |  | Total |
Third Quarter of 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (external) |  | $ | 1,030 |  |  | $ | 1,133 |  |  | $ | 7 |  |  | $ | 2 |  |  | $ | - |  |  | $ | 2,172 |
Sales (internal) |  |  | 5 |  |  |  | 10 |  |  |  | 1,477 |  |  |  | - |  |  |  | (1,492 | ) |  | $ | - |
Total sales |  | $ | 1,035 |  |  | $ | 1,143 |  |  | $ | 1,484 |  |  | $ | 2 |  |  | $ | (1,492 | ) |  | $ | 2,172 |
Division operating income (loss) |  | $ | 48 |  |  | $ | 83 |  |  | $ | 9 |  |  | $ | (17 | ) |  | $ | - |  |  | $ | 123 |
Year-to-Date 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (external) |  | $ | 3,004 |  |  | $ | 3,358 |  |  | $ | 18 |  |  | $ | 5 |  |  | $ | - |  |  | $ | 6,385 |
Sales (internal) |  |  | 15 |  |  |  | 25 |  |  |  | 4,415 |  |  |  | - |  |  |  | (4,455 | ) |  |  | - |
Total sales |  | $ | 3,019 |  |  | $ | 3,383 |  |  | $ | 4,433 |  |  | $ | 5 |  |  | $ | (4,455 | ) |  | $ | 6,385 |
Division operating income (loss) |  | $ | 103 |  |  | $ | 228 |  |  | $ | 25 |  |  | $ | (48 | ) |  | $ | - |  |  | $ | 308 |
Third Quarter of 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (external) |  | $ | 940 |  |  | $ | 1,229 |  |  | $ | 8 |  |  | $ | 2 |  |  | $ | - |  |  | $ | 2,179 |
Sales (internal) |  |  | 7 |  |  |  | 10 |  |  |  | 1,520 |  |  |  | - |  |  |  | (1,537 | ) |  |  | - |
Total sales |  | $ | 947 |  |  | $ | 1,239 |  |  | $ | 1,528 |  |  | $ | 2 |  |  | $ | (1,537 | ) |  | $ | 2,179 |
Division operating income (loss) |  | $ | 34 |  |  | $ | 108 |  |  | $ | 7 |  |  | $ | (10 | ) |  | $ | - |  |  | $ | 139 |
Year-to-Date 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (external) |  | $ | 2,697 |  |  | $ | 3,699 |  |  | $ | 24 |  |  | $ | 3 |  |  | $ | - |  |  | $ | 6,423 |
Sales (internal) |  |  | 19 |  |  |  | 26 |  |  |  | 4,493 |  |  |  | - |  |  |  | (4,538 | ) |  |  | - |
Total sales |  | $ | 2,716 |  |  | $ | 3,725 |  |  | $ | 4,517 |  |  | $ | 3 |  |  | $ | (4,538 | ) |  | $ | 6,423 |
Division operating income (loss) |  | $ | 55 |  |  | $ | 266 |  |  | $ | 22 |  |  | $ | (21 | ) |  | $ | - |  |  | $ | 322 |
Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) from Continuing Operations Before Income Taxes | The 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) | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Total Divisions operating income | $ | 123 |  |  | $ | 139 |  |  | $ | 308 |  |  | $ | 322 |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset impairments |  | (3 | ) |  |  | (5 | ) |  |  | (8 | ) |  |  | (18 | )
Merger, restructuring and other operating expenses, net |  | (8 | ) |  |  | (13 | ) |  |  | (42 | ) |  |  | (37 | )
Unallocated expenses |  | (28 | ) |  |  | (17 | ) |  |  | (70 | ) |  |  | (64 | )
Interest income |  | 1 |  |  |  | — |  |  |  | 3 |  |  |  | — |
Interest expense |  | (1 | ) |  |  | (7 | ) |  |  | (10 | ) |  |  | (20 | )
Other income, net |  | 5 |  |  |  | 3 |  |  |  | 9 |  |  |  | 19 |
Income from continuing operations before income taxes | $ | 89 |  |  | $ | 100 |  |  | $ | 190 |  |  | $ | 202 |
Summary of Disaggregated Revenue from Major Sales Categories | The following table provides information about disaggregated sales by major categories:
|  | Third Quarter |  |  | Year-to-Date |
(In millions) |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Major sales categories |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supplies |  | $ | 1,080 |  |  | $ | 1,023 |  |  | $ | 3,106 |  |  | $ | 2,879 |
Technology |  |  | 597 |  |  |  | 658 |  |  |  | 1,871 |  |  |  | 2,118 |
Furniture and other |  |  | 336 |  |  |  | 341 |  |  |  | 948 |  |  |  | 987 |
Copy and print |  |  | 159 |  |  |  | 157 |  |  |  | 460 |  |  |  | 439 |
Total |  | $ | 2,172 |  |  | $ | 2,179 |  |  | $ | 6,385 |  |  | $ | 6,423 |
Summary of Total Assets by Each of the Divisions, Reconciled to Consolidated Totals | The following table provides information about total assets by each of the Divisions, reconciled to consolidated totals:
(In millions) |  | Balance as of September 24, 2022 |
ODP Business Solutions Division |  | $ | 784 |
Office Depot Division |  |  | 1,700 |
Veyer Division |  |  | 1,104 |
Varis Division |  |  | 112 |
Corporate and other |  |  | 718 |
Total |  | $ | 4,418 |
Schedule of Goodwill by Segment | Goodwill and indefinite-lived intangible assets are tested for impairment annually as of the first day of fiscal December or more frequently when events or changes in circumstances indicate that impairment may have occurred. The changes in reportable segments described above also resulted in the change of the Company’s reporting units during the third quarter of 2022, where each reportable segment also represents a reporting unit. Goodwill was allocated to the new reporting units using their relative fair values. The Company performed a qualitative goodwill impairment assessment of its legacy reporting units immediately before the change and determined that it was more likely than not that the respective fair values of the legacy reporting units were greater than their respective carrying values. The Company also performed a quantitative goodwill impairment assessment of its current reporting units immediately after the change and determined the fair values of all reporting units exceeded their carrying amounts. Changes in goodwill by segment were as follows:
(In millions) |  | Balance as of December 25, 2021 |  |  | Allocation to New segment |  |  | Balance as of September 24, 2022 |  |
Business Solutions Division |  | $ | 318 |  |  | $ | (318 | ) |  | $ | — |  |
Retail Division |  |  | 78 |  |  |  | (78 | ) |  |  | — |  |
Other |  |  | 68 |  |  |  | (68 | ) |  |  | — |  |
ODP Business Solutions Division |  |  | — |  |  |  | 142 |  |  |  | 142 |  |
Office Depot Division |  |  | — |  |  |  | 219 |  |  |  | 219 |  |
Veyer Division |  |  | — |  |  |  | 35 |  |  |  | 35 |  |
Varis Division |  |  | — |  |  |  | 68 |  |  |  | 68 |  |
Total |  | $ | 464 |  |  | $ | — |  |  | $ | 464 |  |

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