SEGMENT INFORMATION

12 Months Ended

Dec. 25, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 5. SEGMENT INFORMATION

At December 25, 2021, the Company had two reportable segments: Business Solutions Division and Retail Division. The Business Solutions Division sells nationally branded as well as the Company’s private branded office supply and adjacency products and services to customers in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. Business Solutions Division customers are served through a dedicated sales force, catalogs, telesales, and electronically through the Company’s Internet websites. The Retail Division includes a chain of retail stores in the United States, Puerto Rico and the U.S. Virgin Islands, which sell office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture as well as offer business services including copying, printing, digital imaging, mailing, shipping and technology support services. In addition, the print needs for retail and business customers are also facilitated through the Company’s regional print production centers. During the third quarter of 2021, management obtained the Board of Directors’ alignment and committed to a plan to sell its CompuCom Division through a single disposal group. The CompuCom disposal group has met the accounting criteria to be classified as held for sale as of June 29, 2021 and is presented as discontinued operations for all periods presented. The sale of the CompuCom Division was completed on December 31, 2021. Refer to Note 17 for additional information.

The operating results of the Company’s Varis operating segment, which was created in 2021 and includes the operating results of BuyerQuest, did not meet the criteria to be reported as a reportable segment as its results are not significant. Accordingly, the operating results of Varis are presented as Other. Sales of Varis were $5 million in 2021. The retained global sourcing operations previously included in the former International Division are also not significant and have been presented as Other.

The products and services offered by the Business Solutions Division and the Retail Division are similar. The Company’s two operating segments are its two reportable segments. The Business Solutions Division and the Retail Division are managed separately as they represent separate channels in the way the Company serves its customers. The accounting policies for each segment are the same as those described in Note 1. 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 Business Solutions Division or the Retail Division, including asset impairments and merger, restructuring and other operating expenses, as well as expenses and credits retained at the Corporate level, including certain management costs and legacy pension and environmental matters. Other companies may charge more or less of these items to their segments and results may not be comparable to similarly titled measures used by other entities. In addition, the Company regularly evaluates the appropriateness of the reportable segments based on how the business is managed, including decision-making about resources allocation and assessing performance of the segments, particularly in light of organizational changes, merger and acquisition activity and changing laws and regulations. Therefore, the current reportable segments may change in the future.

A summary of significant accounts and balances by segment, reconciled to consolidated totals, after the elimination of discontinued operations for all periods is as follows.

(In millions)		Business Solutions Division		Retail Division		Other			Corporate and Discontinued Operations*		Consolidated Total
Sales	2021	$	4,597	$	3,837	$	31		$	—	$	8,465
	2020		4,683		4,167		22			—		8,872
	2019		5,279		4,363		25			—		9,667
Division operating income (loss)	2021		119		306		(29	)		—		396
	2020		116		275		(1	)		—		390
	2019		271		194		—			—		465
Capital expenditures	2021		27		18		14			14		73
	2020		25		28		—			5		58
	2019		43		68		—			29		140
Depreciation and amortization	2021		65		67		3			11		146
	2020		66		80		—			11		157
	2019		66		91		—			8		165
Charges for losses on receivables    and inventories	2021		2		20		—			—		22
	2020		9		24		—			—		33
	2019		—		25		—			—		25
Assets	2021		1,494		1,760		90			1,521		4,865
	2020		1,581		1,962		5			2,066		5,614

* Amounts included in “Corporate and Discontinued Operations” consist of (i) assets (including all cash and cash equivalents) and depreciation related to corporate activities of continuing operations, and (ii) assets of discontinued operations amounting to $469 million at December 25, 2021 and $841 million at December 26, 2020.

A reconciliation of the measure of Division operating income to Consolidated income (loss) from continuing operations before income taxes is as follows:

(In millions)	2021			2020			2019
Division operating income	$	396		$	390		$	465
Add/(subtract):
Asset impairments		(20	)		(182	)		(56	)
Merger, restructuring and other operating expenses, net		(51	)		(102	)		(86	)
Unallocated expenses		(91	)		(100	)		(99	)
Interest income		1			4			22
Interest expense		(28	)		(42	)		(89	)
Loss on extinguishment and modification of debt		—			(12	)		—
Other income, net		24			6			21
Income (loss) from continuing operations before    income taxes	$	231		$	(38	)	$	178