Segment Information

6 Months Ended

Jun. 25, 2011

Segment Information

Segment Information

10. Segment Information

The Company manages its business using three reportable segments: Contract, Retail, and Corporate and Other. Management reviews the performance of the Company based on these segments.

Contract distributes a broad line of items for the office, including office supplies and paper, technology products and solutions, print and document services and office furniture. Contract sells directly to large corporate and government offices, as well as to small and medium-sized offices in the United States, Canada, Australia and New Zealand. This segment markets and sells through field salespeople, outbound telesales, catalogs, the Internet and in some markets, including Canada, Australia and New Zealand, through office products stores. Substantially all products sold by Contract are purchased from third-party manufacturers or industry wholesalers. Contract purchases office papers primarily from Boise White Paper, L.L.C., under a paper supply contract. See Note 15, "Commitments", for information regarding the paper supply contract.

Retail is a retail distributor of office supplies and paper, print and document services, technology products and solutions and office furniture. In addition, this segment contracts with large national retail chains to supply office and school supplies to be sold in their stores. Retail office supply stores feature OfficeMax ImPress, an in-store module devoted to print-for-pay and related services. Retail has operations in the United States, Puerto Rico and the U.S. Virgin Islands. The retail segment also operates office products stores in Mexico through a 51%-owned joint venture. Substantially all products sold by Retail are purchased from third-party manufacturers or industry wholesalers. Retail purchases office papers primarily from Boise White Paper, L.L.C., under the paper supply contract described above.

Corporate and Other includes corporate support staff services and certain other legacy expenses as well as the related assets and liabilities. The income and expense related to certain assets and liabilities that are reported in the Corporate and Other segment have been allocated to the Contract and Retail segments.

Management evaluates the segments' performances using segment income (loss) which is based on operating income (loss) after eliminating the effect of certain operating items that are not indicative of our core operations such as severances, facility closures and adjustments, and asset impairments. These certain operating items are reported on the other operating expenses (income), net line in the Consolidated Statements of Operations.

The following tables contain details of the Company's operations by segment:

	Sales		Segment income (loss)			Other operating, income (expense)			Operating income (loss)
	(thousands)
Three months ended June 25, 2011
Contract	$	880,333	$	17,425		$	(8,058	)	$	9,367
Retail		767,283		7,969			(5,858	)		2,111
Corporate and Other		—		(7,457	)		—			(7,457	)
Total	$	1,647,616	$	17,937		$	(13,916	)	$	4,021
Three months ended June 26, 2010
Contract	$	880,526	$	19,401		$	—		$	19,401
Retail		772,647		13,866			(1,097	)		12,769
Corporate and Other		—		(7,996	)		3,938			(4,058	)
Total	$	1,653,173	$	25,271		$	2,841		$	28,112
	Sales		Segment income (loss)			Other operating, income (expense)			Operating income (loss)
	(thousands)
Six months ended June 25, 2011
Contract	$	1,806,005	$	26,430		$	(8,058	)	$	18,372
Retail		1,704,612		33,589			(5,858	)		27,731
Corporate and Other		—		(13,470	)		—			(13,470	)
Total	$	3,510,617	$	46,549		$	(13,916	)	$	32,633
Six months ended June 26, 2010
Contract	$	1,843,527	$	53,160		$	(861	)	$	52,299
Retail		1,726,901		52,650			(14,450	)		38,200
Corporate and Other		—		(16,996	)		3,963			(13,033	)
Total	$	3,570,428	$	88,814		$	(11,348	)	$	77,466

Interest expense, interest income, and other expense (income), net are not recorded by segments.