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Document and Entity Information	3 Months Ended
Document and Entity Information	Apr. 01, 2017 shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 01, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Trading Symbol	ODP
Entity Registrant Name	OFFICE DEPOT INC
Entity Central Index Key	0000800240
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	516,639,998

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Sales	$ 2,676	$ 2,876
Cost of goods sold and occupancy costs	2,001	2,161
Gross profit	675	715
Selling, general and administrative expenses	528	591
Merger, restructuring, and other operating expenses, net	20	39
Operating income	127	85
Other income (expense):
Interest income	6	6
Interest expense	(13)	(22)
Other income, net	1
Income from continuing operations before income taxes	121	69
Income tax expense	47	7
Net income from continuing operations	74	62
Discontinued operations, net of tax	42	(16)
Net income	$ 116	$ 46
Basic earnings (loss) per share
Continuing operations	$ 0.14	$ 0.11
Discontinued operations	0.08	(0.03)
Net earnings per share	0.22	0.08
Diluted earnings (loss) per share
Continuing operations	0.14	0.11
Discontinued operations	0.08	(0.03)
Net diluted earnings per share	0.22	$ 0.08
Dividends per common share	$ 0.025

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Net income	$ 116	$ 46
Other comprehensive income, net of tax, where applicable:
Foreign currency translation adjustments	6	8
Other		(2)
Total other comprehensive income, net of tax, where applicable	6	6
Comprehensive income	$ 122	$ 52

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Apr. 01, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 744	$ 763
Receivables, net	688	687
Inventories	1,179	1,279
Prepaid expenses and other current assets	130	102
Current assets of discontinued operations	183	142
Total current assets	2,924	2,973
Property and equipment, net	586	601
Goodwill	363	363
Other intangible assets, net	32	33
Timber notes receivable	879	885
Deferred income taxes	432	466
Other assets	219	219
Total assets	5,435	5,540
Current liabilities:
Trade accounts payable	835	893
Accrued expenses and other current liabilities	888	1,002
Income taxes payable	3	3
Short-term borrowings and current maturities of long-term debt	28	29
Current liabilities of discontinued operations	92	104
Total current liabilities	1,846	2,031
Deferred income taxes and other long-term liabilities	351	361
Pension and postretirement obligations, net	139	140
Long-term debt, net of current maturities	353	358
Non-recourse debt	792	798
Total liabilities	3,481	3,688
Commitments and contingencies
Stockholders' equity:
Common stock-authorized 800,000,000 shares of $.01 par value; issued shares - 561,635,744 at April 1, 2017 and 557,892,568 at December 31, 2016	6	6
Additional paid-in capital	2,609	2,618
Accumulated other comprehensive loss	(123)	(129)
Accumulated deficit	(338)	(453)
Treasury stock, at cost - 44,995,746 shares at April 1, 2017 and 42,802,998 shares at December 31, 2016	(200)	(190)
Total stockholders'equity	1,954	1,852
Total liabilities and stockholders' equity	$ 5,435	$ 5,540

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 01, 2017	Dec. 31, 2016
Common stock, authorized	800,000,000	800,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, issued shares	561,635,744	557,892,568
Treasury stock, shares	44,995,746	42,802,998

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Cash flows from operating activities of continuing operations:
Net income	$ 116	$ 46
Income (loss) from discontinued operations, net of tax	42	(16)
Net income from continuing operations	74	62
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	40	48
Charges for losses on inventories and receivables	18	16
Deferred income taxes	35
Changes in working capital and other	(79)	(193)
Net cash provided by (used in) operating activities of continuing operations	88	(67)
Cash flows from investing activities of continuing operations:
Capital expenditures	(30)	(24)
Proceeds from disposition of assets and other	8	1
Net cash used in investing activities of continuing operations	(22)	(23)
Cash flows from financing activities of continuing operations:
Net payments on long and short-term borrowings	(6)	(26)
Cash dividends on common stock	(13)
Share purchase for taxes on employee-related plans	(9)
Repurchase of common stock for treasury	(10)
Net cash used in financing activities of continuing operations	(38)	(26)
Cash flows from discontinued operations:
Operating activities of discontinued operations	14	(72)
Investing activities of discontinued operations	(49)	(2)
Financing activities of discontinued operations	0	0
Net cash provided by (used in) discontinued operations	(35)	(74)
Effect of exchange rate changes on cash and cash equivalents	2
Net decrease in cash and cash equivalents	(5)	(190)
Cash and cash equivalents at beginning of period	807	1,069
Cash and cash equivalents at end of period-total	802	879
Cash and cash equivalents of discontinued operations	(58)	(129)
Cash and cash equivalent at end of the period-continuing operations	$ 744	$ 750

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Apr. 01, 2017

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Office Depot, Inc., including consolidated subsidiaries (“Office Depot” or the “Company”), is a supplier of office products and services. The Company currently operates under several banners, including Office Depot ^® and OfficeMax ^® and utilizes proprietary company and product brand names. The Company’s common stock is traded on the NASDAQ Global Select Market under the ticker symbol “ODP.” As of April 1, 2017, the Company sold to customers through two reportable segments (or “Divisions”): North American Retail Division and North American Business Solutions Division.

In September 2016, the Company’s Board of Directors committed to a plan to sell substantially all of the International Division operations (the “International Operations”). Accordingly, the Company has presented the International Operations as discontinued operations beginning in the third quarter 2016. The Company has reclassified the financial results of the International Operations to Discontinued operations, net of tax in the Condensed Consolidated Statements of Operations for all periods presented. The Company also classified the related assets and liabilities as current assets and liabilities of discontinued operations on the accompanying Condensed Consolidated Balance Sheets as of April 1, 2017 and December 31, 2016. Cash flows from the Company’s discontinued operations are presented in the Condensed Consolidated Statements of Cash Flows for all periods. Certain portions of the International Division assets and operations are being retained or did not meet the held for sale criteria and therefore remain in continuing operations, with prior periods adjusted, where appropriate. Additional information on the planned dispositions is provided in Note 3 and Note 12.

The Condensed Consolidated Financial Statements as of April 1, 2017 and for the 13-week periods ended April 1, 2017 (also referred to as “the first quarter of 2017”) and March 26, 2016 (also referred to as “the first quarter of 2016”) are unaudited. However, in management’s opinion, these condensed consolidated financial statements reflect all adjustments of a normal recurring nature necessary to provide a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented.

The Company has prepared the Condensed Consolidated Financial Statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Some information and note disclosures, which would normally be included in comprehensive annual financial statements prepared in accordance with accounting principles generally accepted in the United States, have been condensed or omitted pursuant to those SEC rules and regulations. For a better understanding of the Company and its Condensed Consolidated Financial Statements, we recommend reading these Condensed Consolidated Financial Statements in conjunction with the audited financial statements which are included in the 2016 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year.

Cash Management

The cash management process generally utilizes zero balance accounts which provide for the settlement of the related disbursement and cash concentration accounts on a daily basis. Trade accounts payable and Accrued expenses and other current liabilities as of April 1, 2017 and December 31, 2016 included $51 million and $58 million, respectively, of amounts not yet presented for payment drawn in excess of disbursement account book balances, after considering offset provisions.

At April 1, 2017, cash and cash equivalents from continuing operations but held outside the United States amounted to $89 million. Additionally, $58 million of cash held outside the United States was included in current assets of discontinued operations.

New Accounting Standards

Standards that are not yet adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that supersedes most current revenue recognition guidance and modifies the accounting for certain costs associated with revenue generation. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a number of steps to apply to achieve that principle and requires additional disclosures. The standard was originally to be effective for the Company’s first quarter of 2017. In July 2015, the FASB approved a one year extension to the required implementation date but also permitted companies to adopt the standard at the original effective date of 2017. The new revenue standard may be applied retrospectively to each prior period presented or modified retrospectively with the cumulative effect recognized as of the date of adoption.

The Company continues to assess the impact this new standard will have on its Consolidated Financial Statements and has not yet decided on which adoption alternative to apply upon adoption in the first quarter of 2018. However, based on this ongoing assessment, the Company expects that the new standard will require the impacts of its loyalty programs to be presented as a reduction of revenue, rather than as cost accruals as is permitted under existing accounting rules. Also, costs associated with catalogs will be expensed as incurred, rather than capitalized and amortized over the anticipated benefit period. Additionally, the timing of revenue recognition will be accelerated for items where the Company’s performance obligation is complete, such as certain commission arrangements, and delayed where performance obligations remain, such as certain coupons and incentives offered from time-to-time.

In February 2016, the FASB issued an accounting standards update which will require lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The accounting treatment for lessors will remain relatively unchanged. The accounting standards update also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Lessees and lessors are required to use a modified retrospective transition method for existing leases and accordingly, apply the new accounting model for the earliest year presented in the financial statements. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements but anticipates it will result in significant right of use assets and related liabilities associated with its operating leases. Substantially all of the Company’s retail store locations and supply chain facilities are subject to operating lease arrangements. The Company will adopt the standard in the first quarter of 2019.

In March 2017, the FASB issued an accounting standards update which changes the income statement presentation of defined benefit plan expense by requiring that an employer report the service cost component of pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit pension cost will be presented in the income statement separately from the service cost component and outside a subtotal of operating income. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. The guidance is effective for fiscal years after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption of this accounting standard update to reduce operating income but have no impact on net income.

Standards that were adopted

During the first quarter of 2017, the Company adopted the new accounting standard which modifies several aspects of the accounting and reporting for employee share-based payments and related tax accounting impacts, including the presentation in the statements of operations and cash flows of certain tax benefits or deficiencies and employee tax withholdings, as well as the accounting for award forfeitures over the vesting period. Starting this quarter, stock-based compensation excess tax benefits or deficiencies are reflected in the Consolidated Statements of Operations as a component of the provision for income taxes, whereas they previously were recognized in equity. Additionally, the Consolidated Statements of Cash Flows now present excess tax benefits as an operating activity, which was applied prospectively in accordance with the standard and therefore prior periods have not been adjusted. Finally, the Company has elected to account for forfeitures as they occur rather than estimate expected forfeitures, which was applied on a modified retrospective basis resulting in a cumulative effect reduction to retained earnings of approximately $1 million as of January 1, 2017.

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MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY

3 Months Ended

Apr. 01, 2017

MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY

NOTE 2. MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY

Merger and Restructuring

In recent years, the Company has taken actions to adapt to changing and competitive conditions. These actions include closing facilities, consolidating functional activities, eliminating redundant positions, disposing of businesses and assets, and taking actions to improve process efficiencies. In 2013, the OfficeMax merger (the “Merger”) was completed and integration activities similar to the actions described above began. The Company also assumed certain restructuring liabilities previously recorded by OfficeMax. In mid-2014, the Company’s real estate strategy (the “Real Estate Strategy”) identified 400 retail stores for closure and integration of the supply chain. During the second quarter of 2016, the Company completed the retail store closures under this program. The changes to the supply chain related to the Merger are anticipated to be complete in 2017.

Staples Acquisition and Merger Agreement Termination

On February 4, 2015, Staples, Inc. (“Staples”) and the Company announced that the companies entered into a definitive merger agreement (the “Staples Merger Agreement”), under which Staples would acquire all of the outstanding shares of Office Depot and the Company would become a wholly owned subsidiary of Staples (the “Staples Acquisition”).

On December 7, 2015, the United States Federal Trade Commission (the “FTC”) informed Office Depot and Staples that it intended to block the Staples Acquisition. On the same date, Office Depot and Staples announced their intent to contest the FTC’s decision to challenge the transaction. On May 10, 2016, the U.S. District Court for the District of Columbia granted the FTC’s request for a preliminary injunction against the proposed acquisition, and as a result, the companies terminated the Staples Merger Agreement on May 16, 2016.

Comprehensive Business Review

During August 2016, the Company announced the results of a comprehensive business review of its strategy (the “Comprehensive Business Review”), which, among other things, includes a plan to close approximately 300 additional retail stores in North America over the next three years, and to lower operating and general and administrative expenses through efficiencies and organizational optimization. The significant components of expenses relating to the cost saving programs activities are discussed below.

Merger, restructuring, and other operating expenses, net

The Company presents Merger, restructuring and other operating expenses, net on a separate line in the Condensed Consolidated Statements of Operations to identify these activities apart from the activities to sell to and service its customers. These expenses are not included in the determination of Division operating income. The table below and narrative that follows provides the major components of Merger, restructuring and other operating expenses, net.


	First Quarter
(In millions)	2017		2016
Merger related expenses
Severance, retention, and relocation	$	—	$	1
Transaction and integration		6		11
Facility closure, contract termination and other expenses, net		4		2

Total Merger related expenses		10		14

Staples Acquisition expenses
Retention		—		2
Transaction		—		20

Total Staples Acquisition expenses		—		22

Comprehensive Business Review and Other Restructuring expenses
Severance		9		3
Facility closure, contract termination, professional fees and other expenses, net		1		—

Total Comprehensive Business Review and Other Restructuring expenses		10		3

Total Merger, restructuring and other operating expenses, net	$	20	$	39

Merger related expenses

Transaction and integration expenses include integration-related professional fees, incremental temporary contract labor, salary and benefits for employees dedicated to the Merger activity, travel costs, non-capitalizable software integration costs, and other direct costs to combine the companies. Such costs are being recognized as incurred.

Facility closure, contract termination, and other costs, net primarily relate to facility closure accruals, contract termination cost, gains and losses on asset dispositions, and accelerated depreciation. Facility closure expenses include amounts incurred by the Company to close retail stores in the United States as part of the Real Estate Strategy, as well as supply chain facilities. During the first quarter of 2017, the Company recognized a gain of $1 million from the sale of a warehouse facility that had been classified as assets held for sale. The gain is included in Merger, restructuring and other operating expenses, net, as the disposition was part of the supply chain integration associated with the Merger.

Staples Acquisition expenses

Expenses include retention accruals and transaction costs, including costs associated with regulatory filings and professional fees. The Staples Merger Agreement was terminated on May 16, 2016 and no further expenses are expected.

Comprehensive Business Review and Other Restructuring expenses

Expenses include severance, facility closure costs, contract termination and accelerated depreciation associated with the announced closure of approximately 300 retail store locations through 2018, as well as severance and reorganization costs associated with reductions in staff functions. Severance costs are being accrued through the anticipated facility closure or termination date and consider timing, terms of existing severance plans, expected employee turnover and attrition.

In the first quarter of 2016, the Company incurred $3 million of severance expense associated with the restructuring of certain selling activities in advance of the Comprehensive Business Review.

Merger and Restructuring Accruals

The activity in the merger and restructuring accruals is presented in the table below. Of the total $20 million Merger, restructuring and other operating expenses, net incurred in the first quarter of 2017 Condensed Consolidated Statement of Operations, $11 million relates to Merger and restructuring liabilities and are included as Charges incurred in the table below. The remaining $9 million expense is comprised of $6 million in Merger transaction and integration expenses and $4 million in property expenses, professional fees, non-cash items and other expenses, partially offset by a $1 million gain on the disposition of a warehouse facility which was part of the supply chain integration associated with the Merger. These remaining amounts are excluded from the table below because they are charges that are recorded as incurred, non-cash, or otherwise not associated with Merger and restructuring balance sheet accounts.


(In millions)	Balance as of December 31, 2016		Charges Incurred			Cash Payments			Lease Accretion and Other Adjustments		Balance as of April 1, 2017
Termination benefits:
Merger-related accruals	$	5	$	—		$	(1	)	$	—	$	4
Comprehensive Business Review		8		9			(12	)		—		5
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		40		3			(11	)		—		32
Comprehensive Business Review		13		(1	)		(4	)		—		8
Other restructuring accruals		5		—			(1	)		—		4
Acquired entity accruals		18		—			(2	)		1		17

Total	$	89	$	11		$	(31	)	$	1	$	70

The short-term and long-term components of these liabilities are included in Accrued expenses and other current liabilities and Deferred income taxes and other long-term liabilities, respectively, on the Condensed Consolidated Balance Sheets.

Assets held for sale

Certain facilities identified for closure through integration and other activities have been accounted for as assets held for sale. Assets held for sale primarily consist of supply chain facilities, and are presented in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. The assets held for sale activity for the first quarter 2017 is presented in the table below.


(In millions)
Balance as of December 31, 2016	$	23
Disposition		(3	)

Balance as of April 1, 2017	$	20

Gains on dispositions associated with Merger or restructuring activities are recognized at the Corporate level and included when realized in Merger, restructuring and other operating expenses, net in the Condensed Consolidated Statements of Operations. Losses, if any, are recognized when classified as held for sale. Gains or losses associated with dispositions of properties not associated with Merger or restructuring activities are presented as a component of operations when the related accounting criteria are met.

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DISCONTINUED OPERATIONS

3 Months Ended

Apr. 01, 2017

DISCONTINUED OPERATIONS

NOTE 3. DISCONTINUED OPERATIONS

In the second quarter of 2016, following termination of the Staples Merger Agreement, the Company disclosed its intention to explore strategic alternatives regarding its European business of the International Division.

On September 23, 2016, the Company announced that it had received an irrevocable offer from Aurelius Rho Invest DS GmbH, a subsidiary of The AURELIUS Group (the “Purchaser”) to acquire the Company’s European business operations (the “OD European Business”). The transaction was structured as an equity sale with the Purchaser acquiring the OD European Business with its operating assets and liabilities.

In addition to approving the sale of the OD European Business in the third quarter of 2016, the Company’s Board of Directors approved a plan to sell substantially all of the remaining operations of the International Division. Collectively, the OD European Business sale and other planned dispositions represent a strategic shift that has a major impact on the Company’s operations and financial results and has been accounted for as discontinued operations. On December 31, 2016, the Company closed the sale of the OD European Business contemplated by the Sale and Purchase Agreement dated November 22, 2016, as amended (the “SPA”). Approximately $70 million was accrued at December 31, 2016 under a working capital adjustment provision, of which $35 million was paid during the first quarter of 2017. The Purchaser has disagreed with certain items related to the draft working capital adjustment payment schedule. As provided for in the SPA, the parties have engaged an independent accountant to finalize the working capital payment amount. The remaining working capital adjustment will be paid to the Purchaser once the independent accountant completes their review, which is currently expected to be in July 2017. The Company currently does not believe that the resolution of the items under disagreement will result in a material adjustment.

In April 2017, the Company announced that it had entered into definitive agreements to sell its businesses in Australia and New Zealand. The transaction to sell the businesses in Australia and New Zealand is subject to regulatory approval and the sale is expected to be completed later in 2017. The sale of the Company’s business in South Korea was completed on April 26, 2017. Refer to Note 12 Subsequent Events for further discussion. The Company is also actively marketing for sale its business in mainland China and expects to complete the disposition within the one year period associated with held for sale assets.

The Company has presented the operating results of the OD European Business within discontinued operations, net of tax in 2016. In addition, the Company’s businesses in Australia, New Zealand, South Korea and mainland China are presented within discontinued operations, net of tax in the Consolidated Statements of Operations for all periods presented. The related assets and liabilities of the disposal groups are presented as current assets and liabilities of discontinued operations in the Condensed Consolidated Balance Sheets as of April 1, 2017 and December 31, 2016. Cash flows from the Company’s discontinued operations are presented in the Condensed Consolidated Statements of Cash Flows for all periods. Certain portions of the former International Division assets and operations are being retained or did not meet the held for sale criteria at April 1, 2017 and, therefore, remain in continuing operations. These assets and operations are presented as Other in Note 11, Division Information.

The Company recorded an adjustment in the first quarter of 2017 to its carrying amount of the remaining entities that are held for sale based on its updated estimate of fair value less cost to sell. The adjustment resulted in a reduction in the related valuation allowance and is included in the net reduction of loss on discontinued operations in the table below. The adjusted carrying amount does not exceed the carrying amount of the entities at the time they were initially classified as held for sale. Completion of the sale of the remaining international operations may be for amounts different from the current estimates and will be evaluated each reporting period until the dispositions are complete.

Restructuring charges incurred by the International Division that previously had been presented as part of Corporate costs have been included in the measurement and presentation of discontinued operations in all periods presented.

With respect to the sale of the OD European Business, the SPA contains customary warranties of the Company and the Purchaser, with the Company’s warranties limited to an aggregate of EUR 10 million. The Company monitors its estimated exposure to liabilities under the warranties under the SPA. As of April 1, 2017, the Company believes it has made adequate provisions for its potential exposures related to these warranties. The Company will continue to provide various transition and product sourcing services to the Purchaser for a period of six to 24 months under a separate agreement. The proceeds and related costs from these services are presented in Other income, net in the Condensed Consolidated Statements of Operations. Also, as part of the disposition, the Company retained responsibility for the frozen defined benefits pension plan in the United Kingdom, which has been classified in continuing operations.

The Company retains guarantees in place as of September 23, 2016 with respect to the liabilities or obligations of the OD European Business and remains contingently liable for these obligations. As part of the OD European Business sale transaction, the Purchaser must indemnify and hold the Company harmless for any losses in connection with these guarantees and must obtain an unconditional and irrevocable release of a guarantee in certain circumstances. The Company currently does not believe it is probable it would be required to perform under any of these guarantees or any of the underlying obligations.

The major components of Discontinued operations, net of tax presented in the Condensed Consolidated Statements of Operations for the first quarter of 2017 and 2016 include the following.


	First Quarter
(In millions)	2017		2016
Sales	$	168	$	668
Cost of goods sold and occupancy costs		136		527
Operating expenses		27		150
Restructuring charges		1		5
Other income, net		1		—
Net reduction of loss on discontinued operations		38		—
Income tax expense		1		2

Discontinued operations, net of tax	$	42	$	(16	)

Assets and liabilities of discontinued operations presented in the Condensed Consolidated Balance Sheets as of April 1, 2017 and December 31, 2016 are included in the following table. As the sale of the OD European Business was completed before year end 2016, the assets and liabilities of that business are not included in either period presented below.


(In millions)	April 1, 2017			December 31, 2016
Assets
Cash and cash equivalents	$	58		$	44
Receivables, net		88			88
Inventories		63			82
Prepaid expenses and other current assets		2			4
Property and equipment, net		32			31
Other assets		7			6
Valuation allowance		(67	)		(113	)

Current assets of discontinued operations	$	183		$	142

Liabilities
Trade accounts payable	$	49		$	60
Accrued expenses and other current liabilities		28			27
Income taxes payable		1			2
Short-term borrowings and current maturities of long-term debt		9			9
Deferred income taxes and other long-term liabilities		5			6

Current liabilities of discontinued operations	$	92		$	104

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2941-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

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DEBT

3 Months Ended

Apr. 01, 2017

DEBT

NOTE 4. DEBT

Amended Credit Agreement

Based on the March borrowing base certificate, at April 1, 2017, the Company had approximately $1.0 billion of available credit under the Second Amended and Restated Credit Agreement. In May 2011, Office Depot entered into an amended and restated agreement, which was amended and restated in May 2016 for an additional five years, and was further amended in December 2016 (the “Amended Credit Agreement”). The $1.2 billion facility will mature on May 13, 2021. The Amended Credit Agreement reduces the overall fees and applicable spread on borrowing and modifies certain covenants to provide additional flexibility for incremental indebtedness, acquisitions, asset sales and restricted payments. In connection with the May 2016 amendment, the Company recorded $6 million in debt acquisition costs, which are included in Other assets in the Condensed Consolidated Balance Sheet and will be amortized ratably through May 2021.

As of April 1, 2017, letters of credit outstanding under the Amended Credit Agreement totaled $82 million. There were no borrowings under the Amended Credit Agreement in the first quarter of 2017.

Other

The Company was in compliance with all applicable financial covenants at April 1, 2017.

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INCOME TAXES

3 Months Ended

Apr. 01, 2017

INCOME TAXES

NOTE 5. INCOME TAXES

The effective tax rate for the first quarter of 2017 was 39% compared to 10% for the first quarter of 2016. The effective tax rate for the first quarter of 2017 was primarily impacted by the effect of state taxes and nondeductible expenses while the effective tax rate for the first quarter of 2016 was primarily impacted by the valuation allowances on the U.S. deferred tax assets. The impact of the valuation allowance for the first quarter of 2016 was to reduce the amount of U.S. tax expense recognized, reducing the overall effective tax rate. Changes in pretax income projections and the mix of income across jurisdictions could impact the effective tax rate each quarter.

During 2016, the Company concluded that it was more likely than not that a benefit from a substantial portion of its U.S. federal and state deferred tax assets would be realized. This conclusion was based on a detailed evaluation of all available positive and negative evidence and the weight of such evidence, the current financial position and results of operations for the current and preceding years, and the expectation of continued earnings. The Company determined that approximately $400 million of its U.S. federal and state valuation allowance should be reversed in 2016, with approximately $240 million in the third quarter as a discrete non-cash income tax benefit and the remainder as an adjustment to the estimated annual effective tax rate.

After the 2016 valuation allowance reversal, the Company continues to have a U.S. valuation allowance for certain U.S. federal credits and state tax attributes. The remaining valuation allowances relate to deferred tax assets that require certain types of income or for income to be earned in certain jurisdictions in order to be realized. It is reasonably possible that the Company will realize a portion of the remaining valuation allowance in the future based upon continued profitability. The Company will continue to assess the realizability of its deferred tax assets in the U.S. and remaining foreign jurisdictions in future periods.

The Company files a U.S. federal income tax return and other income tax returns in various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state and local income tax examinations for years before 2016 and 2009, respectively. The acquired OfficeMax U.S. consolidated group is no longer subject to U.S. federal and state and local income tax examinations for years before 2013 and 2006, respectively. The U.S. federal income tax return for 2016 is currently under review. Generally, the Company is subject to routine examination for years 2008 and forward in its international tax jurisdictions.

It is not reasonably possible that certain tax positions will be resolved within the next 12 months. Additionally, the Company anticipates that it is reasonably possible that new issues will be raised or resolved by tax authorities that may require changes to the balance of unrecognized tax benefits; however, an estimate of such changes cannot be reasonably made.

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STOCKHOLDERS' EQUITY

3 Months Ended

Apr. 01, 2017

STOCKHOLDERS' EQUITY

NOTE 6. STOCKHOLDERS’ EQUITY

The following table reflects the changes in stockholders’ equity.


(In millions)
Stockholders’ equity at December 31, 2016	$	1,852
Net income		116
Repurchase of common stock for treasury		(10	)
Dividends paid on common stock		(13	)
Share transactions under employee-related plan		(9	)
Other comprehensive income		6
Amortization of long-term incentive stock grants		12

Stockholders’ equity at April 1, 2017	$	1,954

Accumulated other comprehensive income (loss) activity, net of tax, where applicable, is provided in the following table:


(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension and Other			Total
Balance at December 31, 2016	$	(67	)	$	(62	)	$	(129	)
Other comprehensive income (loss) activity before reclassifications		6			—			6

Balance at April 1, 2017	$	(61	)	$	(62	)	$	(123	)

Treasury Stock

In May 2016, the Company’s Board of Directors authorized a stock repurchase program of up to $100 million of its outstanding common stock. In August 2016, the Board of Directors authorized increasing the share repurchase program to $250 million. The stock repurchase authorization permits the Company to repurchase stock from time-to-time through a combination of open market repurchases, privately negotiated transactions, 10b5-1 trading plans, accelerated stock repurchase transactions and/or other derivative transactions. The authorization extends to the end of 2018 and may be suspended or discontinued at any time. The exact number and timing of share repurchases will depend on market conditions and other factors, and will be funded through existing liquidity.

Under the stock repurchase program, in the first quarter 2017, the Company purchased approximately 2 million shares at a cost of $10 million. As of April 1, 2017, $108 million remains available for repurchase under the current authorization. Refer to Item 2 Unregistered Sales of Equity Securities and Use of Proceeds for more information.

Dividends on Common Stock

In February 2017, the Board of Directors declared a cash dividend of $0.025 per share on its common stock. The total per share dividend of $0.025 was paid on March 15, 2017 to shareholders of record at the close of business on March 3, 2017, resulting in a total cash payment of $13 million. Dividends have been recorded as a reduction to additional paid-in capital as the Company is in an accumulated deficit position. Additionally, payment of dividends is permitted under our existing credit facilities provided that the Company has the required minimum liquidity or fixed charge ratio but may be limited if the Company does not meet the necessary requirements.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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EARNINGS PER SHARE

3 Months Ended

Apr. 01, 2017

EARNINGS PER SHARE

NOTE 7. EARNINGS PER SHARE

The following table represents the calculation of net earnings (loss) per common share – basic and diluted:


	First Quarter
(In millions, except per share amounts)	2017		2016
Basic Earnings Per Share
Numerator:
Net income from continuing operations	$	74	$	62
Income (loss) from discontinued operations, net of tax		42		(16	)

Net income	$	116	$	46

Denominator:
Weighted-average shares outstanding		515		549
Basic earnings (loss) per share:
Continuing operations	$	0.14	$	0.11
Discontinued operations		0.08		(0.03	)

Net earnings per share	$	0.22	$	0.08

Diluted Earnings Per Share
Numerator:
Net income from continuing operations	$	74	$	62
Income (loss) from discontinued operations, net of tax		42		(16	)

Net income	$	116	$	46

Denominator:
Weighted-average shares outstanding		515		549
Effect of dilutive securities:
Stock options and restricted stock		17		6

Diluted weighted-average shares outstanding		532		555
Diluted earnings (loss) per share:
Continuing operations	$	0.14	$	0.11
Discontinued operations		0.08		(0.03	)

Net diluted earnings per share	$	0.22	$	0.08

Awards of stock options and nonvested shares representing approximately 4 million and 6 million additional shares of common stock were outstanding for the first quarters of 2017 and 2016, respectively, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive.

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EMPLOYEE BENEFIT PLANS

3 Months Ended

Apr. 01, 2017

EMPLOYEE BENEFIT PLANS

NOTE 8. EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans – North America

The components of net periodic pension benefit for the Company’s North American pension plans are as follows:


	First Quarter
(In millions)	2017			2016
Service cost	$	2		$	2
Interest cost		10			11
Expected return on plan assets		(12	)		(14	)

Net periodic pension benefit	$	—		$	(1	)

In the first quarter of 2017, cash contributions to the North American pension plans were not significant. The Company expects to make additional cash contributions of $2 million to the North American pension plans the remainder of 2017.

Pension Plan – UK

The components of net periodic pension benefit for the Company’s UK pension plan are as follows:


	First Quarter
(In millions)	2017			2016
Service cost	$	—		$	—
Interest cost		2			2
Expected return on plan assets		(3	)		(3	)

Net periodic pension benefit	$	(1	)	$	(1	)

As part of the OD European Business sale, the Company retained the United Kingdom defined benefit pension plan. The United Kingdom pension plan is in a net asset position. In the first quarter of 2017, cash contributions of $1 million were made to the UK pension plan. The Company expects to make additional cash contributions of $1 million to the UK pension plan the remainder of 2017.

Net periodic pension benefits for the North American and UK pension and other postretirement benefit plans are recorded in Selling, general and administrative expenses at the Corporate level in the Condensed Consolidated Statements of Operations.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Apr. 01, 2017

FAIR VALUE MEASUREMENTS

NOTE 9. FAIR VALUE MEASUREMENTS

The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In developing its fair value estimates, the Company uses the following hierarchy:


Level 1:		Quoted prices in active markets for identical assets or liabilities.

Level 2:		Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3:		Significant unobservable inputs that are not corroborated by market data. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows or option pricing models using the Company’s own estimates and assumptions or those expected to be used by market participants.

Recurring Fair Value Measurements

In accordance with accounting principles generally accepted in the United States, certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Company’s assets and liabilities that are adjusted to fair value on a recurring basis are money market funds that qualify as cash equivalents, and derivative financial instruments.


	Level 1
(In millions)	April 1, 2017		December 31, 2016
Money market funds	$	135	$	135

The fair values of the Company’s foreign currency contracts and fuel contracts are the amounts receivable or payable to terminate the agreements at the reporting date, taking into account current interest rates, exchange rates and commodity prices. The values are based on market-based inputs or unobservable inputs that are corroborated by market data. Amounts associated with derivative financial instruments are considered Level 1 measurements but were not significant for the reported periods. At April 1, 2017 and December 31, 2016, Accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets included less than $1 million related to derivative fuel contracts.

Nonrecurring Fair Value Measurements

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis as required by accounting principles generally accepted in the United States. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company did not recognize asset impairment charges associated with continuing operations for the first quarters of 2017 and 2016.

Other Fair Value Disclosures

The fair values of cash and cash equivalents, receivables, trade accounts payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature.

The following table presents information about financial instruments at the balance sheet dates indicated.


	April 1, 2017				December 31, 2016
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Timber notes receivable	$	879	$	886	$	885	$	884
Company-owned life insurance		86		86		89		89
Financial liabilities
Recourse debt
Revenue bonds, due in varying amounts periodically through 2029		186		184		186		181
American & Foreign Power Company, Inc. 5% debentures, due 2030		14		12		14		12
Non-recourse debt		792		798		798		800

The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

•

Timber notes receivable: Fair value is determined as the present value of expected future cash flows discounted at the current interest rate for loans of similar terms with comparable credit risk (Level 2 measure).

•

Company-owned life insurance: In connection with the Merger, the Company acquired company owned life insurance policies on certain former employees. The fair value of the company-owned life insurance policies is derived using determinable net cash surrender value (Level 2 measure).

•

Recourse debt: Recourse debt for which there were no transactions on the measurement date was valued based on quoted market prices near the measurement date when available or by discounting the future cash flows of each instrument using rates based on the most recently observable trade or using rates currently offered to the Company for similar debt instruments of comparable maturities (Level 2 measure).

•

Non-recourse debt: Fair value is estimated by discounting the future cash flows of the instrument at rates currently available to the Company for similar instruments of comparable maturities (Level 2 measure).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Apr. 01, 2017

COMMITMENTS AND CONTINGENCIES

NOTE 10. COMMITMENTS AND CONTINGENCIES

Legal Matters

The Company is involved in litigation arising in the normal course of business. While, from time to time, claims are asserted that make demands for a large sum of money (including, from time to time, actions which are asserted to be maintainable as class action suits), the Company does not believe that contingent liabilities related to these matters (including the matters discussed below), either individually or in the aggregate, will materially affect the Company’s financial position, results of operations or cash flows.

In addition, in the ordinary course of business, sales to and transactions with government customers may be subject to lawsuits, investigations, audits and review by governmental authorities and regulatory agencies, with which the Company cooperates. Many of these lawsuits, investigations, audits and reviews are resolved without material impact to the Company. While claims in these matters may at times assert large demands, the Company does not believe that contingent liabilities related to these matters, either individually or in the aggregate, will materially affect its financial position, results of operations or cash flows.

In addition to the foregoing, OfficeMax is named a defendant in a number of lawsuits, claims, and proceedings arising out of the operation of certain paper and forest products assets prior to those assets being sold in 2004, for which OfficeMax agreed to retain responsibility. Also, as part of that sale, OfficeMax agreed to retain responsibility for all pending or threatened proceedings and future proceedings alleging asbestos-related injuries arising out of the operation of the paper and forest products assets prior to the closing of the sale. The Company has made provision for losses with respect to the pending proceedings. Additionally, as of April 1, 2017, the Company has made provision for environmental liabilities with respect to certain sites where hazardous substances or other contaminants are or may be located. For these environmental liabilities, our estimated range of reasonably possible losses was approximately $10 million to $25 million. The Company regularly monitors its estimated exposure to these liabilities. As additional information becomes known, these estimates may change, however, the Company does not believe any of these OfficeMax retained proceedings are material to the Company’s financial position, results of operations or cash flows.

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DIVISION INFORMATION

3 Months Ended

Apr. 01, 2017

DIVISION INFORMATION

NOTE 11. DIVISION INFORMATION

Following the decision to sell the OD European Business and substantially all of the remaining operations that previously were presented as the International Division, and their presentation as discontinued operations, the Company has two operating segments which are also the reportable segments: North American Retail Division and North American Business Solutions Division. The North American Retail Division includes retail stores in the United States, including Puerto Rico and the U.S. Virgin Islands, which offer office supplies, technology products and solutions, business machines and related supplies, facilities products, and office furniture. Most stores also have a copy and print center offering printing, reproduction, mailing and shipping services. The North American Business Solutions Division sells office supply products and services in the United States, including Puerto Rico and the U.S. Virgin Islands and Canada. North American Business Solutions Division customers are served through dedicated sales forces, through catalogs, telesales, and electronically through its Internet sites.

The retained operations previously included in the International Division are not significant at April 1, 2017 and have been presented as Other.

The office supply products and services offered across the segments are similar. 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 Divisions including Merger, restructuring and other operating 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.

The following is a summary of Sales and Division operating income (loss) by each of the Divisions, reconciled to consolidated totals, after the elimination of the discontinued operations for all periods.


	Sales
	First Quarter
(In millions)	2017			2016
North American Retail Division	$	1,358		$	1,506
North American Business Solutions Division		1,315			1,368
Other		3			2

Total	$	2,676		$	2,876


	Division Operating Income (loss)
	First Quarter
(In millions)	2017			2016
North American Retail Division	$	112		$	102
North American Business Solutions Division		58			46
Other		(1	)		—

Total	$	169		$	148

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)	2017			2016
Total Division operating income	$	169		$	148
Add/(subtract):
Merger, restructuring, and other operating expenses, net		(20	)		(39	)
Unallocated expenses		(22	)		(24	)
Interest income		6			6
Interest expense		(13	)		(22	)
Other income, net		1			—

Income from continuing operations before income taxes	$	121		$	69

As of April 1, 2017, goodwill totaled $363 million, of which $78 million was recorded in the North American Retail Division and $285 million in the North American Business Solutions Division.

- 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.

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+ Details

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SUBSEQUENT EVENTS

3 Months Ended

Apr. 01, 2017

SUBSEQUENT EVENTS

NOTE 12. SUBSEQUENT EVENTS

On April 18, 2017, the Company entered into a definitive sale and purchase agreement to sell the Company’s Australian and New Zealand business operations. The transaction is structured as an equity sale, with the purchaser acquiring the Australian and New Zealand businesses with its assets and liabilities, and is expected to close within the next several months, subject to the purchaser obtaining necessary regulatory approval. Until the closing date, the Company has agreed to operate the Australian and New Zealand businesses in the ordinary course.

On April 7, 2017, the Company entered into a definitive sale and purchase agreement to sell the Company’s Korean business operations. The transaction was structured as an equity sale, with the purchaser acquiring the Korean business with its assets and liabilities. The transaction closed on April 26, 2017.

The Company may provide certain transitional services to the purchasers for a limited period of time following the closing.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Apr. 01, 2017
Basis of Presentation	Basis of Presentation Office Depot, Inc., including consolidated subsidiaries (“Office Depot” or the “Company”), is a supplier of office products and services. The Company currently operates under several banners, including Office Depot ^® and OfficeMax ^® and utilizes proprietary company and product brand names. The Company’s common stock is traded on the NASDAQ Global Select Market under the ticker symbol “ODP.” As of April 1, 2017, the Company sold to customers through two reportable segments (or “Divisions”): North American Retail Division and North American Business Solutions Division. In September 2016, the Company’s Board of Directors committed to a plan to sell substantially all of the International Division operations (the “International Operations”). Accordingly, the Company has presented the International Operations as discontinued operations beginning in the third quarter 2016. The Company has reclassified the financial results of the International Operations to Discontinued operations, net of tax in the Condensed Consolidated Statements of Operations for all periods presented. The Company also classified the related assets and liabilities as current assets and liabilities of discontinued operations on the accompanying Condensed Consolidated Balance Sheets as of April 1, 2017 and December 31, 2016. Cash flows from the Company’s discontinued operations are presented in the Condensed Consolidated Statements of Cash Flows for all periods. Certain portions of the International Division assets and operations are being retained or did not meet the held for sale criteria and therefore remain in continuing operations, with prior periods adjusted, where appropriate. Additional information on the planned dispositions is provided in Note 3 and Note 12. The Condensed Consolidated Financial Statements as of April 1, 2017 and for the 13-week periods ended April 1, 2017 (also referred to as “the first quarter of 2017”) and March 26, 2016 (also referred to as “the first quarter of 2016”) are unaudited. However, in management’s opinion, these condensed consolidated financial statements reflect all adjustments of a normal recurring nature necessary to provide a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. The Company has prepared the Condensed Consolidated Financial Statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Some information and note disclosures, which would normally be included in comprehensive annual financial statements prepared in accordance with accounting principles generally accepted in the United States, have been condensed or omitted pursuant to those SEC rules and regulations. For a better understanding of the Company and its Condensed Consolidated Financial Statements, we recommend reading these Condensed Consolidated Financial Statements in conjunction with the audited financial statements which are included in the 2016 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year.
Cash Management	Cash Management The cash management process generally utilizes zero balance accounts which provide for the settlement of the related disbursement and cash concentration accounts on a daily basis. Trade accounts payable and Accrued expenses and other current liabilities as of April 1, 2017 and December 31, 2016 included $51 million and $58 million, respectively, of amounts not yet presented for payment drawn in excess of disbursement account book balances, after considering offset provisions. At April 1, 2017, cash and cash equivalents from continuing operations but held outside the United States amounted to $89 million. Additionally, $58 million of cash held outside the United States was included in current assets of discontinued operations.
New Accounting Standards	New Accounting Standards Standards that are not yet adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that supersedes most current revenue recognition guidance and modifies the accounting for certain costs associated with revenue generation. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a number of steps to apply to achieve that principle and requires additional disclosures. The standard was originally to be effective for the Company’s first quarter of 2017. In July 2015, the FASB approved a one year extension to the required implementation date but also permitted companies to adopt the standard at the original effective date of 2017. The new revenue standard may be applied retrospectively to each prior period presented or modified retrospectively with the cumulative effect recognized as of the date of adoption. The Company continues to assess the impact this new standard will have on its Consolidated Financial Statements and has not yet decided on which adoption alternative to apply upon adoption in the first quarter of 2018. However, based on this ongoing assessment, the Company expects that the new standard will require the impacts of its loyalty programs to be presented as a reduction of revenue, rather than as cost accruals as is permitted under existing accounting rules. Also, costs associated with catalogs will be expensed as incurred, rather than capitalized and amortized over the anticipated benefit period. Additionally, the timing of revenue recognition will be accelerated for items where the Company’s performance obligation is complete, such as certain commission arrangements, and delayed where performance obligations remain, such as certain coupons and incentives offered from time-to-time. In February 2016, the FASB issued an accounting standards update which will require lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The accounting treatment for lessors will remain relatively unchanged. The accounting standards update also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Lessees and lessors are required to use a modified retrospective transition method for existing leases and accordingly, apply the new accounting model for the earliest year presented in the financial statements. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements but anticipates it will result in significant right of use assets and related liabilities associated with its operating leases. Substantially all of the Company’s retail store locations and supply chain facilities are subject to operating lease arrangements. The Company will adopt the standard in the first quarter of 2019. In March 2017, the FASB issued an accounting standards update which changes the income statement presentation of defined benefit plan expense by requiring that an employer report the service cost component of pension costs in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit pension cost will be presented in the income statement separately from the service cost component and outside a subtotal of operating income. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. The guidance is effective for fiscal years after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption of this accounting standard update to reduce operating income but have no impact on net income. Standards that were adopted During the first quarter of 2017, the Company adopted the new accounting standard which modifies several aspects of the accounting and reporting for employee share-based payments and related tax accounting impacts, including the presentation in the statements of operations and cash flows of certain tax benefits or deficiencies and employee tax withholdings, as well as the accounting for award forfeitures over the vesting period. Starting this quarter, stock-based compensation excess tax benefits or deficiencies are reflected in the Consolidated Statements of Operations as a component of the provision for income taxes, whereas they previously were recognized in equity. Additionally, the Consolidated Statements of Cash Flows now present excess tax benefits as an operating activity, which was applied prospectively in accordance with the standard and therefore prior periods have not been adjusted. Finally, the Company has elected to account for forfeitures as they occur rather than estimate expected forfeitures, which was applied on a modified retrospective basis resulting in a cumulative effect reduction to retained earnings of approximately $1 million as of January 1, 2017.

- Definition

Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.

+ References + Details

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MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY (Tables)

3 Months Ended

Apr. 01, 2017

Summary of Major Components of Merger, Restructuring and Other Operating Expenses, Net

The table below and narrative that follows provides the major components of Merger, restructuring and other operating expenses, net.


	First Quarter
(In millions)	2017		2016
Merger related expenses
Severance, retention, and relocation	$	—	$	1
Transaction and integration		6		11
Facility closure, contract termination and other expenses, net		4		2

Total Merger related expenses		10		14

Staples Acquisition expenses
Retention		—		2
Transaction		—		20

Total Staples Acquisition expenses		—		22

Comprehensive Business Review and Other Restructuring expenses
Severance		9		3
Facility closure, contract termination, professional fees and other expenses, net		1		—

Total Comprehensive Business Review and Other Restructuring expenses		10		3

Total Merger, restructuring and other operating expenses, net	$	20	$	39

Facility Closure and Severance Costs

These remaining amounts are excluded from the table below because they are charges that are recorded as incurred, non-cash, or otherwise not associated with Merger and restructuring balance sheet accounts.


(In millions)	Balance as of December 31, 2016		Charges Incurred			Cash Payments			Lease Accretion and Other Adjustments		Balance as of April 1, 2017
Termination benefits:
Merger-related accruals	$	5	$	—		$	(1	)	$	—	$	4
Comprehensive Business Review		8		9			(12	)		—		5
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		40		3			(11	)		—		32
Comprehensive Business Review		13		(1	)		(4	)		—		8
Other restructuring accruals		5		—			(1	)		—		4
Acquired entity accruals		18		—			(2	)		1		17

Total	$	89	$	11		$	(31	)	$	1	$	70

Assets Held for Sale Activity

The assets held for sale activity for the first quarter 2017 is presented in the table below.


(In millions)
Balance as of December 31, 2016	$	23
Disposition		(3	)

Balance as of April 1, 2017	$	20

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DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Apr. 01, 2017

Major Component of Discontinued Operations, Net of Tax

The major components of Discontinued operations, net of tax presented in the Condensed Consolidated Statements of Operations for the first quarter of 2017 and 2016 include the following.


	First Quarter
(In millions)	2017		2016
Sales	$	168	$	668
Cost of goods sold and occupancy costs		136		527
Operating expenses		27		150
Restructuring charges		1		5
Other income, net		1		—
Net reduction of loss on discontinued operations		38		—
Income tax expense		1		2

Discontinued operations, net of tax	$	42	$	(16	)


(In millions)	April 1, 2017			December 31, 2016
Assets
Cash and cash equivalents	$	58		$	44
Receivables, net		88			88
Inventories		63			82
Prepaid expenses and other current assets		2			4
Property and equipment, net		32			31
Other assets		7			6
Valuation allowance		(67	)		(113	)

Current assets of discontinued operations	$	183		$	142

Liabilities
Trade accounts payable	$	49		$	60
Accrued expenses and other current liabilities		28			27
Income taxes payable		1			2
Short-term borrowings and current maturities of long-term debt		9			9
Deferred income taxes and other long-term liabilities		5			6

Current liabilities of discontinued operations	$	92		$	104

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Apr. 01, 2017

Schedule of Stockholders' Equity

The following table reflects the changes in stockholders’ equity.


(In millions)
Stockholders’ equity at December 31, 2016	$	1,852
Net income		116
Repurchase of common stock for treasury		(10	)
Dividends paid on common stock		(13	)
Share transactions under employee-related plan		(9	)
Other comprehensive income		6
Amortization of long-term incentive stock grants		12

Stockholders’ equity at April 1, 2017	$	1,954

Accumulated Other Comprehensive Income (Loss) Activity, Net of Tax

Accumulated other comprehensive income (loss) activity, net of tax, where applicable, is provided in the following table:


(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension and Other			Total
Balance at December 31, 2016	$	(67	)	$	(62	)	$	(129	)
Other comprehensive income (loss) activity before reclassifications		6			—			6

Balance at April 1, 2017	$	(61	)	$	(62	)	$	(123	)

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EARNINGS PER SHARE (Tables)

3 Months Ended

Apr. 01, 2017

Calculation of Net Earnings (Loss) Per Common Share

The following table represents the calculation of net earnings (loss) per common share – basic and diluted:


	First Quarter
(In millions, except per share amounts)	2017		2016
Basic Earnings Per Share
Numerator:
Net income from continuing operations	$	74	$	62
Income (loss) from discontinued operations, net of tax		42		(16	)

Net income	$	116	$	46

Denominator:
Weighted-average shares outstanding		515		549
Basic earnings (loss) per share:
Continuing operations	$	0.14	$	0.11
Discontinued operations		0.08		(0.03	)

Net earnings per share	$	0.22	$	0.08

Diluted Earnings Per Share
Numerator:
Net income from continuing operations	$	74	$	62
Income (loss) from discontinued operations, net of tax		42		(16	)

Net income	$	116	$	46

Denominator:
Weighted-average shares outstanding		515		549
Effect of dilutive securities:
Stock options and restricted stock		17		6

Diluted weighted-average shares outstanding		532		555
Diluted earnings (loss) per share:
Continuing operations	$	0.14	$	0.11
Discontinued operations		0.08		(0.03	)

Net diluted earnings per share	$	0.22	$	0.08

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EMPLOYEE BENEFIT PLANS (Tables)

3 Months Ended

Apr. 01, 2017

North America

Components of Net Periodic Pension Benefit

The components of net periodic pension benefit for the Company’s North American pension plans are as follows:


	First Quarter
(In millions)	2017			2016
Service cost	$	2		$	2
Interest cost		10			11
Expected return on plan assets		(12	)		(14	)

Net periodic pension benefit	$	—		$	(1	)

United Kingdom

Components of Net Periodic Pension Benefit

The components of net periodic pension benefit for the Company’s UK pension plan are as follows:


	First Quarter
(In millions)	2017			2016
Service cost	$	—		$	—
Interest cost		2			2
Expected return on plan assets		(3	)		(3	)

Net periodic pension benefit	$	(1	)	$	(1	)

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Apr. 01, 2017

Assets and Liabilities Adjusted to Fair Value on Recurring Basis

The Company’s assets and liabilities that are adjusted to fair value on a recurring basis are money market funds that qualify as cash equivalents, and derivative financial instruments.


	Level 1
(In millions)	April 1, 2017		December 31, 2016
Money market funds	$	135	$	135

Schedule of Fair Value of Assets and Liabilities

The following table presents information about financial instruments at the balance sheet dates indicated.


	April 1, 2017				December 31, 2016
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Timber notes receivable	$	879	$	886	$	885	$	884
Company-owned life insurance		86		86		89		89
Financial liabilities
Recourse debt
Revenue bonds, due in varying amounts periodically through 2029		186		184		186		181
American & Foreign Power Company, Inc. 5% debentures, due 2030		14		12		14		12
Non-recourse debt		792		798		798		800

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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DIVISION INFORMATION (Tables)

3 Months Ended

Apr. 01, 2017

Summary of Significant Accounts and Balances by Each Divisions


	Sales
	First Quarter
(In millions)	2017			2016
North American Retail Division	$	1,358		$	1,506
North American Business Solutions Division		1,315			1,368
Other		3			2

Total	$	2,676		$	2,876


	Division Operating Income (loss)
	First Quarter
(In millions)	2017			2016
North American Retail Division	$	112		$	102
North American Business Solutions Division		58			46
Other		(1	)		—

Total	$	169		$	148

Reconciliation of Measure of Division Operating Income to Consolidated Income Before Income Taxes

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)	2017			2016
Total Division operating income	$	169		$	148
Add/(subtract):
Merger, restructuring, and other operating expenses, net		(20	)		(39	)
Unallocated expenses		(22	)		(24	)
Interest income		6			6
Interest expense		(13	)		(22	)
Other income, net		1			—

Income from continuing operations before income taxes	$	121		$	69

XML 38 R27.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions		3 Months Ended
	Jan. 01, 2017 USD ($)	Apr. 01, 2017 USD ($) Segment	Dec. 31, 2016 USD ($)	Mar. 26, 2016 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments \| Segment		2
Accounts payable and accrued expenses and other current liabilities not yet presented for payment		$ 51	$ 58
Cash and cash equivalents		744	$ 763	$ 750
Cash and cash equivalents, discontinued operations		58		$ 129
Cumulative effect on retained earnings, net of tax	$ 1
Non-US
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents		89
Cash and cash equivalents, discontinued operations		$ 58

XML 39 R28.htm IDEA: XBRL DOCUMENT

Merger, Acquisition Termination and Restructuring Activity - Additional Information (Detail) $ in Millions	1 Months Ended		3 Months Ended
	Aug. 31, 2016 Store	Mar. 26, 2016 USD ($)	Apr. 01, 2017 USD ($) Store	Mar. 26, 2016 USD ($)
Business Acquisition [Line Items]
Number of retail stores closed under real estate strategy \| Store			400
Supply chain closure anticipated completion year			2017
Severance expense		$ 3
Merger, restructuring and other operating expenses, net			$ 20	$ 39
Charges Incurred			11
Transaction and integration			6	$ 11
Property expenses, professional fees, non-cash items and other expenses			1
Comprehensive Business Review
Business Acquisition [Line Items]
Number of retail stores planned to be closed \| Store	300
Retail stores closure period	3 years
Merger, restructuring and other operating expenses, net
Business Acquisition [Line Items]
Gain on sale of warehouse facilities classified as assets held for sale			1
Charges Incurred			9
Property expenses, professional fees, non-cash items and other expenses			$ 4

XML 40 R29.htm IDEA: XBRL DOCUMENT

Summary of Major Components of Merger, Restructuring and Other Operating Expenses, Net (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Merger related expenses
Severance, retention, and relocation		$ 1
Transaction and integration	$ 6	11
Facility closure, contract termination and other expenses, net	4	2
Total Merger related expenses	10	14
Staples Acquisition expenses
Retention		2
Transaction		20
Total Staples Acquisition expenses		22
Comprehensive Business Review and Other Restructuring expenses
Severance	9	3
Facility closure, contract termination, professional fees and other expenses, net	1
Total Comprehensive Business Review and Other Restructuring expenses	10	3
Total Merger, restructuring and other operating expenses, net	$ 20	$ 39

XML 41 R30.htm IDEA: XBRL DOCUMENT

Severance and Facility Closure Costs (Detail) $ in Millions	3 Months Ended
Severance and Facility Closure Costs (Detail) $ in Millions	Apr. 01, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 89
Charges Incurred	11
Cash Payments	(31)
Lease Accretion and Other Adjustments	1
Ending Balance	70
Termination benefits \| Merger related accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	5
Cash Payments	(1)
Ending Balance	4
Termination benefits \| Comprehensive Business Review
Restructuring Cost and Reserve [Line Items]
Beginning Balance	8
Charges Incurred	9
Cash Payments	(12)
Ending Balance	5
Lease and contract obligations, accruals for facilities closures and other costs \| Merger related accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	40
Charges Incurred	3
Cash Payments	(11)
Ending Balance	32
Lease and contract obligations, accruals for facilities closures and other costs \| Comprehensive Business Review
Restructuring Cost and Reserve [Line Items]
Beginning Balance	13
Charges Incurred	(1)
Cash Payments	(4)
Ending Balance	8
Lease and contract obligations, accruals for facilities closures and other costs \| Other restructuring accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	5
Cash Payments	(1)
Ending Balance	4
Lease and contract obligations, accruals for facilities closures and other costs \| Acquired entity accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	18
Cash Payments	(2)
Lease Accretion and Other Adjustments	1
Ending Balance	$ 17

XML 42 R31.htm IDEA: XBRL DOCUMENT

Assets Held for Sale Activity (Detail) $ in Millions	3 Months Ended
Assets Held for Sale Activity (Detail) $ in Millions	Apr. 01, 2017 USD ($)
Long Lived Assets Held-for-sale [Line Items]
Beginning Balance	$ 23
Disposition	(3)
Ending Balance	$ 20

XML 43 R32.htm IDEA: XBRL DOCUMENT

Discontinued Operations - Additional Information (Detail) € in Millions, $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 23, 2016 EUR (€)
Discontinued Operations \| European Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Warranties on sale and purchase agreement \| €			€ 10
Discontinued Operations \| Aurelius Rho Invest DS GmbH \| European Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accrued liability under working capital adjustment provision		$ 70
Payment of accrued liability under working capital adjustment provision	$ 35
Discontinued Operations \| Aurelius Rho Invest DS GmbH \| European Business \| Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Transition services period	24 months
Discontinued Operations \| Aurelius Rho Invest DS GmbH \| European Business \| Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Transition services period	6 months
Discontinued Operations, Held-for-Sale \| South Korea, mainland China, Australia and New Zealand Businesses \| Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Expects period to complete dispositions	1 year

XML 44 R33.htm IDEA: XBRL DOCUMENT

Major Component of Discontinued Operations, Net of Tax (Detail) - Discontinued Operations, Held-for-Sale - European Business - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales	$ 168	$ 668
Cost of goods sold and occupancy costs	136	527
Operating expenses	27	150
Restructuring charges	1	5
Other income, net	1
Net reduction of loss on discontinued operations	38
Income tax expense	1	2
Discontinued operations, net of tax	$ 42	$ (16)

XML 45 R34.htm IDEA: XBRL DOCUMENT

Assets and Liabilities of Discontinued Operations (Detail) - USD ($) $ in Millions	Apr. 01, 2017	Dec. 31, 2016	Mar. 26, 2016
Assets
Cash and cash equivalents	$ 58		$ 129
Current assets of discontinued operations	183	$ 142
Liabilities
Current liabilities of discontinued operations	92	104
Discontinued Operations, Held-for-Sale \| European Business
Assets
Cash and cash equivalents	58	44
Receivables, net	88	88
Inventories	63	82
Prepaid expenses and other current assets	2	4
Property and equipment, net	32	31
Other assets	7	6
Valuation allowance	(67)	(113)
Current assets of discontinued operations	183	142
Liabilities
Trade accounts payable	49	60
Accrued expenses and other current liabilities	28	27
Income taxes payable	1	2
Short-term borrowings and current maturities of long-term debt	9	9
Deferred income taxes and other long-term liabilities	5	6
Current liabilities of discontinued operations	$ 92	$ 104

XML 46 R35.htm IDEA: XBRL DOCUMENT

Debt - Additional Information (Detail) - Amended Credit Agreement - USD ($)	1 Months Ended	3 Months Ended
	May 31, 2016	Apr. 01, 2017
Debt Instrument [Line Items]
Available credit under the Facility		$ 1,000,000,000
Expiration period under the new Facility	5 years
Maximum borrowing capacity under the new Facility	$ 1,200,000,000
Maturity date of the new Facility	May 13, 2021
Amount outstanding under letters of credit		82,000,000
Average borrowings under the Facility		0
Other Assets
Debt Instrument [Line Items]
Debt acquisition costs		$ 6,000,000

XML 47 R36.htm IDEA: XBRL DOCUMENT

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Apr. 01, 2017	Sep. 24, 2016	Mar. 26, 2016	Dec. 31, 2016
Income Taxes [Line Items]
Effective tax rate	39.00%		10.00%
Non-cash income tax benefit	$ 35
U.S. Federal and State
Income Taxes [Line Items]
Estimated valuation allowance, determined to be reversed in 2016				$ 400
Non-cash income tax benefit		$ 240

XML 48 R37.htm IDEA: XBRL DOCUMENT

Schedule of Stockholders' Equity (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Stockholders Equity [Line Items]
Beginning Balance	$ 1,852
Net income	116	$ 46
Repurchase of common stock for treasury	(10)
Dividends paid on common stock	(13)
Share transactions under employee-related plan	(9)
Other comprehensive income	6	$ 6
Amortization of long-term incentive stock grants	12
Ending Balance	$ 1,954

XML 49 R38.htm IDEA: XBRL DOCUMENT

Accumulated Other Comprehensive Income (Loss) Activity, Net of Tax (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 1,852
Other comprehensive income (loss) activity before reclassifications	6
Ending Balance	1,954
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(67)
Other comprehensive income (loss) activity before reclassifications	6
Ending Balance	(61)
Change in Deferred Pension and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(62)
Ending Balance	(62)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(129)
Other comprehensive income (loss) activity before reclassifications	6
Ending Balance	$ (123)

XML 50 R39.htm IDEA: XBRL DOCUMENT

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2017	Apr. 01, 2017	Aug. 31, 2016	May 31, 2016
Shareholders Equity [Line Items]
Stock repurchase program, shares purchased		2
Stock repurchase program, shares purchased at cost		$ 10,000,000
Stock repurchase program, remaining authorized repurchase amount		$ 108,000,000
Dividend on common stock	$ 0.025	$ 0.025
Common stock dividends per share cash paid	$ 0.025
Dividends payable date of payment	Mar. 15, 2017
Dividends payable date of record	Mar. 03, 2017
Payments of ordinary dividends, common stock	$ 13,000,000	$ 13,000,000
Maximum
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount			$ 250,000,000	$ 100,000,000

XML 51 R40.htm IDEA: XBRL DOCUMENT

Calculation of Net Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Earnings Per Share [Line Items]
Net income from continuing operations	$ 74	$ 62
Income (loss) from discontinued operations, net of tax	42	(16)
Net income	$ 116	$ 46
Weighted-average shares outstanding	515	549
Basic earnings (loss) per share:
Continuing operations	$ 0.14	$ 0.11
Discontinued operations	0.08	(0.03)
Net earnings per share	$ 0.22	$ 0.08
Net income from continuing operations	$ 74	$ 62
Income (loss) from discontinued operations, net of tax	42	(16)
Net income	$ 116	$ 46
Weighted-average shares outstanding	515	549
Stock options and restricted stock	17	6
Diluted weighted-average shares outstanding	532	555
Diluted earnings (loss) per share:
Continuing operations	$ 0.14	$ 0.11
Discontinued operations	0.08	(0.03)
Net diluted earnings per share	$ 0.22	$ 0.08

XML 52 R41.htm IDEA: XBRL DOCUMENT

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Nonvested Stock Options and Shares
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Shares excluded from computation of diluted earnings per share	4	6

XML 53 R42.htm IDEA: XBRL DOCUMENT

Components of Net Periodic Pension Benefit (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
North America
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2	$ 2
Interest cost	10	11
Expected return on plan assets	(12)	(14)
Net periodic pension benefit		(1)
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Interest cost	2	2
Expected return on plan assets	(3)	(3)
Net periodic pension benefit	$ (1)	$ (1)

XML 54 R43.htm IDEA: XBRL DOCUMENT

Employee Benefit Plans - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)
North America
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, remainder of fiscal year	$ 2
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, remainder of fiscal year	1
Pension and other postretirement contributions, current period	$ 1

XML 55 R44.htm IDEA: XBRL DOCUMENT

Assets and Liabilities Adjusted to Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Apr. 01, 2017	Dec. 31, 2016
Money Market Funds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 135	$ 135

XML 56 R45.htm IDEA: XBRL DOCUMENT

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges	$ 0	$ 0
Derivative Fuel Contracts Payable \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Accrued expenses and other liabilities	$ 1,000,000		$ 1,000,000

XML 57 R46.htm IDEA: XBRL DOCUMENT

Schedule of Fair Value of Assets and Liabilities (Detail) - USD ($) $ in Millions	Apr. 01, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Timber notes receivable	$ 886	$ 884
Company-owned life insurance	86	89
Recourse Debt \| Revenue bonds, due in varying amounts periodically through 2029
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	184	181
Recourse Debt \| American & Foreign Power Company, Inc. 5% debentures, due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	12	12
Non-Recourse Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	798	800
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Timber notes receivable	879	885
Company-owned life insurance	86	89
Carrying Value \| Recourse Debt \| Revenue bonds, due in varying amounts periodically through 2029
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	186	186
Carrying Value \| Recourse Debt \| American & Foreign Power Company, Inc. 5% debentures, due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	14	14
Carrying Value \| Non-Recourse Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 792	$ 798

XML 58 R47.htm IDEA: XBRL DOCUMENT

Schedule of Fair Value of Assets and Liabilities (Parenthetical) (Detail) - Recourse Debt	3 Months Ended	12 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Revenue bonds, due in varying amounts periodically through 2029 \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, due date	2029	2029
Revenue bonds, due in varying amounts periodically through 2029 \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, due date	2029	2029
American & Foreign Power Company, Inc. 5% debentures, due 2030 \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate	5.00%	5.00%
Long-term debt, due date	2030	2030
American & Foreign Power Company, Inc. 5% debentures, due 2030 \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate	5.00%	5.00%
Long-term debt, due date	2030	2030

XML 59 R48.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)
Minimum
Commitments and Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 10
Maximum
Commitments and Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 25

XML 60 R49.htm IDEA: XBRL DOCUMENT

Division Information - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($) Segment	Dec. 31, 2016 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| Segment	2
Goodwill	$ 363	$ 363
North American Retail Division
Segment Reporting Information [Line Items]
Goodwill	78
North American Business Solutions Division
Segment Reporting Information [Line Items]
Goodwill	$ 285

XML 61 R50.htm IDEA: XBRL DOCUMENT

Reconciliation of Revenue from Segments to Consolidated (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Segment Reporting Information [Line Items]
Sales	$ 2,676	$ 2,876
North American Retail Division
Segment Reporting Information [Line Items]
Sales	1,358	1,506
North American Business Solutions Division
Segment Reporting Information [Line Items]
Sales	1,315	1,368
Other
Segment Reporting Information [Line Items]
Sales	$ 3	$ 2

XML 62 R51.htm IDEA: XBRL DOCUMENT

Division Operating Income (Detail) - USD ($) $ in Millions	3 Months Ended
Division Operating Income (Detail) - USD ($) $ in Millions	Apr. 01, 2017	Mar. 26, 2016
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	$ 127	$ 85
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	169	148
Operating Segments \| North American Retail Division
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	112	102
Operating Segments \| North American Business Solutions Division
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	58	$ 46
Operating Segments \| Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	$ (1)

XML 63 R52.htm IDEA: XBRL DOCUMENT

Reconciliation of Measure of Division Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Segment Reporting Information [Line Items]
Operating income	$ 127	$ 85
Merger, restructuring, and other operating expenses, net	(20)	(39)
Unallocated expenses	(22)	(24)
Interest income	6	6
Interest expense	(13)	(22)
Other income, net	1
Income from continuing operations before income taxes	121	69
Operating Segments
Segment Reporting Information [Line Items]
Operating income	$ 169	$ 148


6600 North Military Trail; Boca Raton, Florida		33496
(Address of principal executive offices)		(Zip Code)


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)			3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)			4
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)			5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)			6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			22
Item 3. Quantitative and Qualitative Disclosures About Market Risk			30
Item 4. Controls and Procedures			30
PART II. OTHER INFORMATION			31
Item 1. Legal Proceedings			31
Item 1A. Risk Factors			31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			32
Item 6. Exhibits			33
SIGNATURES			34
EX 31.1
EX 31.2
EX 32
EX 101


Period	Total Number of Shares Purchased *(In thousands)*		Average Price Paid per Share (a)		Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program *(In thousands)*		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Repurchase Programs (b) *(In millions)*
January 1 – January 28, 2017		270	$	4.50		270	$	117
January 29 – February 25, 2017		842	$	4.38		842	$	113
February 26, 2017 – April 1, 2017		1,081	$	4.52		1,081	$	108

Total		2,193



31.1		Rule 13a-14(a)/15d-14(a) Certification of CEO

31.2		Rule 13a-14(a)/15d-14(a) Certification of CFO

32		Section 1350 Certification

(101.INS)		XBRL Instance Document

(101.SCH)		XBRL Taxonomy Extension Schema Document

(101.CAL)		XBRL Taxonomy Extension Calculation Linkbase Document

(101.DEF)		XBRL Taxonomy Extension Definition Linkbase Document

(101.LAB)		XBRL Taxonomy Extension Label Linkbase Document

(101.PRE)		XBRL Taxonomy Extension Presentation Linkbase Document

Large accelerated filer

Accelerated filer

Non-accelerated filer

☐ (Do not check if a smaller reporting company)

Smaller reporting company


	13 Weeks Ended
	April 1,			March 26,
	2017			2016
Sales	$	2,676		$	2,876
Cost of goods sold and occupancy costs		2,001			2,161

Gross profit		675			715
Selling, general and administrative expenses		528			591
Merger, restructuring, and other operating expenses, net		20			39

Operating income		127			85
Other income (expense):
Interest income		6			6
Interest expense		(13	)		(22	)
Other income, net		1			—

Income from continuing operations before income taxes		121			69
Income tax expense		47			7

Net income from continuing operations		74			62
Discontinued operations, net of tax		42			(16	)

Net income	$	116		$	46

Basic earnings (loss) per share
Continuing operations	$	0.14		$	0.11
Discontinued operations		0.08			(0.03	)

Net earnings per share	$	0.22		$	0.08

Diluted earnings (loss) per share
Continuing operations	$	0.14		$	0.11
Discontinued operations		0.08			(0.03	)

Net diluted earnings per share	$	0.22		$	0.08

Dividends per common share	$	0.025		$	—


	13 Weeks Ended
	April 1, 2017			March 26, 2016
Cash flows from operating activities of continuing operations:
Net income	$	116		$	46
Income (loss) from discontinued operations, net of tax		42			(16	)

Net income from continuing operations		74			62
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		40			48
Charges for losses on inventories and receivables		18			16
Deferred income taxes		35			—
Changes in working capital and other		(79	)		(193	)

Net cash provided by (used in) operating activities of continuing operations		88			(67	)

Cash flows from investing activities of continuing operations:
Capital expenditures		(30	)		(24	)
Proceeds from disposition of assets and other		8			1

Net cash used in investing activities of continuing operations		(22	)		(23	)

Cash flows from financing activities of continuing operations:
Net payments on long and short-term borrowings		(6	)		(26	)
Cash dividends on common stock		(13	)		—
Share purchase for taxes on employee-related plans		(9	)		—
Repurchase of common stock for treasury		(10	)		—

Net cash used in financing activities of continuing operations		(38	)		(26	)

Cash flows from discontinued operations:
Operating activities of discontinued operations		14			(72	)
Investing activities of discontinued operations		(49	)		(2	)
Financing activities of discontinued operations		—			—

Net cash provided by (used in) discontinued operations		(35	)		(74	)

Effect of exchange rate changes on cash and cash equivalents		2			—
Net decrease in cash and cash equivalents		(5	)		(190	)
Cash and cash equivalents at beginning of period		807			1,069

Cash and cash equivalents at end of period-total		802			879
Cash and cash equivalents of discontinued operations		(58	)		(129	)

Cash and cash equivalent at end of the period-continuing operations	$	744		$	750


	OFFICE DEPOT, INC.
	(Registrant)

Date: May 9, 2017	By:	/s/ Gerry P. Smith
	Gerry P. Smith
	Chief Executive Officer
	(Principal Executive Officer)

Date: May 9, 2017	By:	/s/ Stephen E. Hare
	Stephen E. Hare
	Executive Vice President and
	Chief Financial Officer
	(Principal Financial Officer)

Date: May 9, 2017	By:	/s/ Michael Rabinovitch
	Michael Rabinovitch
	Senior Vice President and
	Chief Accounting Officer
	(Principal Accounting Officer)