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SEGMENT INFORMATION
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 4. SEGMENT INFORMATION

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM uses sales and operating income (which includes certain shared service cost allocations directly attributable to each of the segments) for each reportable segment. The CODM uses this information in the annual forecasting process, as well as on a periodic basis when evaluating actual segment performance against forecast, and making decisions about allocating operating and capital resources. The decisions to allocate resources include the Company’s pricing strategy, acquisitions, divestitures, investments in technology and other capital assets, and workforce levels, among others.

At December 28, 2024, the Company had three reportable segments:

ODP Business Solutions Division – The Company’s leading B2B distribution solutions provider serving small, medium, and enterprise level companies, including those in the public and education sectors. This segment operates in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The ODP Business Solutions Division sells nationally branded, as well as the Company’s private branded, office supply and adjacency products and services to customers, who are served through a dedicated sales force, catalogs, telesales, and electronically through the Company’s Internet websites. Adjacency products and services include cleaning, janitorial and breakroom supplies, office furniture, technology products, and copy and print services. Starting in 2025, ODP BSD expanded its hospitality supplies categories within its adjacency products. This segment also includes our Federation entities, which are over 20 regional office supply distribution businesses acquired by the Company as part of its transformation to expand its reach and distribution network into geographic areas that were previously underserved, and which continue to operate under their own brand names. The acquisition of these businesses has allowed for an effective and accretive means to expand our distribution reach, target new business customers, and grow our offerings beyond traditional office supplies.

Office Depot Division – The Company’s leading provider of retail consumer and small business products and services distributed through a fully integrated omni-channel platform of 869 Office Depot and OfficeMax retail locations in the United States, Puerto Rico and the U.S. Virgin Islands, and an eCommerce presence (www.officedepot.com). The Office Depot Division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture as well as offering business services including copying, printing, digital imaging, mailing, shipping and technology support services. In addition, the print needs for retail and business customers are facilitated through the Company’s regional print production centers.

Veyer Division – The Company’s supply chain, distribution, procurement and global sourcing operation, which specializes in B2B and consumer business service delivery, with core competencies in distribution, fulfillment, transportation, global sourcing and purchasing. The Veyer Division’s customers include our Office Depot Division and ODP Business Solutions Division, as well as third-party customers. The Veyer Division also includes the Company’s global sourcing operations in Asia.

On April 24, 2024, management obtained the Board of Directors’ approval and committed to a plan to sell its Varis Division through a single disposal group. The Varis Division was the Company’s tech-enabled B2B indirect procurement marketplace, which provided a seamless way for buyers and suppliers to transact through the platform’s consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. The Varis Division disposal group met the accounting criteria to be classified as held for sale as of April 2024 and is presented as discontinued operations beginning in the second quarter of 2024. On October 18, 2024, the Company sold its Varis Division to an affiliate of Arising Ventures, while retaining a minority interest of 19.9% after the sale. Refer to Note 16 for additional information.

Division operating income represents segment profit and 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 Divisions, including asset impairments and merger, restructuring and other operating expenses, 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.

The following table presents sales and operating income by each of the Divisions, reconciled to consolidated sales and income from continuing operations before income taxes. The table also includes significant expenses of the Divisions:

 

(In millions)

 

ODP Business Solutions Division

 

 

Office Depot Division

 

 

Veyer Division

 

 

Total

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Sales (external)

 

$

3,578

 

 

$

3,358

 

 

$

54

 

 

$

6,990

 

Sales (internal)

 

 

9

 

 

 

30

 

 

 

4,668

 

 

 

4,707

 

Total sales

 

$

3,587

 

 

$

3,388

 

 

$

4,722

 

 

$

11,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of intersegment revenues

 

 

 

 

 

 

 

 

 

 

 

(4,707

)

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

$

6,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods (and occupancy costs)

 

 

3,080

 

 

 

2,544

 

 

 

4,628

 

 

 

 

Selling, general and administrative expenses

 

 

395

 

 

 

723

 

 

 

72

 

 

 

 

Division operating income

 

$

112

 

 

$

121

 

 

$

22

 

 

$

255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Less unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

82

 

Asset impairments

 

 

 

 

 

 

 

 

 

 

 

33

 

Merger, restructuring and other operating expenses, net

 

 

 

 

 

 

 

 

 

 

 

47

 

Legal matter monetization

 

 

 

 

 

 

 

 

 

 

 

(70

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

17

 

Income from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

$

146

 

 

(In millions)

 

ODP Business Solutions Division

 

 

Office Depot Division

 

 

Veyer Division

 

 

Total

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Sales (external)

 

$

3,904

 

 

$

3,884

 

 

$

35

 

 

$

7,823

 

Sales (internal)

 

 

13

 

 

 

34

 

 

 

5,253

 

 

 

5,300

 

Total sales

 

$

3,917

 

 

$

3,918

 

 

$

5,288

 

 

$

13,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of intersegment revenues

 

 

 

 

 

 

 

 

 

 

 

(5,300

)

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

$

7,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods (and occupancy costs)

 

 

3,310

 

 

 

2,881

 

 

 

5,171

 

 

 

 

Selling, general and administrative expenses

 

 

433

 

 

 

807

 

 

 

83

 

 

 

 

Division operating income

 

$

174

 

 

$

230

 

 

$

34

 

 

$

438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Less unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

87

 

Asset impairments

 

 

 

 

 

 

 

 

 

 

 

17

 

Merger, restructuring and other operating expenses, net

 

 

 

 

 

 

 

 

 

 

 

4

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

1

 

Income from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

$

329

 

 

 

(In millions)

 

ODP Business Solutions Division

 

 

Office Depot Division

 

 

Veyer Division

 

 

Total

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

Sales (external)

 

$

4,005

 

 

$

4,451

 

 

$

28

 

 

$

8,484

 

Sales (internal)

 

 

19

 

 

 

36

 

 

 

5,855

 

 

 

5,910

 

Total sales

 

$

4,024

 

 

$

4,487

 

 

$

5,883

 

 

$

14,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of intersegment revenues

 

 

 

 

 

 

 

 

 

 

 

(5,910

)

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

$

8,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods (and occupancy costs)

 

 

3,453

 

 

 

3,318

 

 

 

5,778

 

 

 

 

Selling, general and administrative expenses

 

 

431

 

 

 

884

 

 

 

77

 

 

 

 

Division operating income

 

$

140

 

 

$

285

 

 

$

28

 

 

$

453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Less unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

94

 

Asset impairments

 

 

 

 

 

 

 

 

 

 

 

14

 

Merger, restructuring and other operating expenses, net

 

 

 

 

 

 

 

 

 

 

 

39

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

1

 

Income from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

$

305

 

The following table provides information about disaggregated sales by major categories:

 

(In millions)

 

2024

 

 

2023

 

 

2022

 

Major sales categories

 

 

 

 

 

 

 

 

 

Supplies

 

$

3,451

 

 

$

3,899

 

 

$

4,144

 

Technology

 

 

1,928

 

 

 

2,171

 

 

 

2,454

 

Furniture and other

 

 

991

 

 

 

1,102

 

 

 

1,255

 

Copy and print

 

 

620

 

 

651

 

 

 

631

 

Total

 

$

6,990

 

 

$

7,823

 

 

$

8,484

 

The following table provides information about other significant balances by each of the Divisions, reconciled to consolidated totals:

(In millions)

 

ODP Business Solutions Division

 

 

Office Depot Division

 

 

Veyer Division

 

 

Corporate and
Discontinued
Operations*

 

 

Consolidated Total

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

8

 

 

$

24

 

 

$

30

 

 

$

36

 

 

$

98

 

Depreciation and amortization

 

 

19

 

 

 

41

 

 

 

33

 

 

 

4

 

 

 

97

 

Assets

 

 

686

 

 

 

1,197

 

 

 

1,101

 

 

 

545

 

 

 

3,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

10

 

 

 

20

 

 

 

21

 

 

 

30

 

 

 

81

 

Depreciation and amortization

 

 

17

 

 

 

44

 

 

 

35

 

 

 

3

 

 

 

99

 

Assets

 

 

768

 

 

 

1,556

 

 

 

1,076

 

 

 

487

 

 

 

3,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

5

 

 

 

14

 

 

 

20

 

 

 

16

 

 

 

55

 

Depreciation and amortization

 

 

21

 

 

 

56

 

 

 

37

 

 

 

4

 

 

 

118

 

Assets

 

 

749

 

 

 

1,553

 

 

 

993

 

 

 

854

 

 

 

4,149

 

*Amounts included in “Corporate and Discontinued Operations” consist of (i) assets (including all cash and cash equivalents) and depreciation related to corporate activities of continuing operations, and (ii) $74 million of assets at December 30, 2023, related to discontinued operations.