XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.22.4

LEASES | 12 Months Ended
--- | ---
Dec. 31, 2022
Leases [Abstract] |
LEASES | NOTE 9. LEASES The Company leases retail stores and other facilities, vehicles, and equipment under operating lease agreements. Facility leases typically are for a fixed non-cancellable term with one or more renewal options. In addition to rent payments, the Company is required to pay certain variable lease costs such as real estate taxes, insurance and common-area maintenance on most of the facility leases. For leases beginning in 2019, the Company accounts for lease components (e.g., fixed payments including rent) and non-lease components (e.g., real estate taxes, insurance costs and common-area maintenance costs) as a single lease component. Certain leases contain provisions for additional rent to be paid if sales exceed a specified amount, though such payments have been immaterial during the periods presented and are recognized as variable lease cost. The Company subleases certain real estate to third parties, consisting mainly of operating leases for retail stores. The components of lease expense were as follows:
(In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 14 |  |  | $ | 18 |  |  | $ | 18 |
Interest on lease liabilities |  |  | 2 |  |  |  | 3 |  |  |  | 4 |
Operating lease cost |  |  | 334 |  |  |  | 350 |  |  |  | 402 |
Short-term lease cost |  |  | 6 |  |  |  | 4 |  |  |  | 6 |
Variable lease cost |  |  | 94 |  |  |  | 99 |  |  |  | 112 |
Sublease income |  |  | (2 | ) |  |  | (2 | ) |  |  | (2 | )
Total lease cost |  | $ | 448 |  |  | $ | 472 |  |  | $ | 540 |
Supplemental cash flow information related to leases was as follows:
(In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from finance leases |  | $ | 2 |  |  | $ | 3 |  |  | $ | 4 |
Operating cash flows from operating leases |  |  | 370 |  |  |  | 408 |  |  |  | 447 |
Financing cash flows from finance leases |  |  | 18 |  |  |  | 22 |  |  |  | 20 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  |  | 4 |  |  |  | 3 |  |  |  | 29 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  |  | 228 |  |  |  | 127 |  |  |  | 117 |
Supplemental balance sheets information related to leases was as follows:
|  | December 31, |  |  | December 25, |
(In millions, except lease term and discount rate) |  | 2022 |  |  | 2021 |
Property and equipment, net |  | $ | 29 |  |  | $ | 39 |
Operating lease right-of-use assets |  |  | 874 |  |  |  | 936 |
Accrued expenses and other current liabilities |  |  | 281 |  |  |  | 304 |
Short-term borrowings and current maturities of long-term debt |  |  | 14 |  |  |  | 17 |
Long-term debt, net of current maturities |  |  | 24 |  |  |  | 35 |
Operating lease liabilities |  |  | 693 |  |  |  | 753 |
Weighted-average remaining lease term – finance leases |  | 3 |  |  | 4 |
Weighted-average remaining lease term – operating leases |  | 5 |  |  | 5 |
Weighted-average discount rate – finance leases |  |  | 4.9 | % |  |  | 5.0 | %
Weighted-average discount rate – operating leases |  |  | 6.1 | % |  |  | 5.8 | %
Maturities of lease liabilities as of December 31, 2022 were as follows:
|  | December 31, 2022 |
|  | Operating |  |  | Finance |
(In millions) |  | Leases(1) |  |  | Leases(2) |
2023 |  | $ | 333 |  |  | $ | 15 |
2024 |  |  | 251 |  |  |  | 10 |
2025 |  |  | 182 |  |  |  | 7 |
2026 |  |  | 142 |  |  |  | 5 |
2027 |  |  | 96 |  |  |  | 3 |
Thereafter |  |  | 125 |  |  |  | 1 |
|  |  | 1,129 |  |  |  | 41 |
Less imputed interest |  |  | (155 | ) |  |  | (3 | )
Total |  | $ | 974 |  |  | $ | 38 |
Reported as of December 31, 2022 |  |  |  |  |  |  |  |
Accrued expenses and other current liabilities |  | $ | 281 |  |  | $ | — |
Short-term borrowings and current maturities of long-term debt |  |  | — |  |  |  | 14 |
Long-term debt, net of current maturities |  |  | — |  |  |  | 24 |
Operating lease liabilities |  |  | 693 |  |  |  | — |
Total |  | $ | 974 |  |  | $ | 38 |
(1) | Operating lease payments include $47 million related to options to extend lease terms that are reasonably certain of being exercised.
(2) | Finance lease payments include $1 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $5 million of legally binding minimum lease payments for leases signed but not yet commenced.

X
- Definition Leases disclosure. + References No definition available. + Details
Name: | odp_LeasesDisclosureTextBlock
Namespace Prefix: | odp_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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