NOTE 13. SEGMENT INFORMATION

The Company had two reportable segments during 2017 until the acquisition of CompuCom on November 8, 2017, at which time a third reportable segment was formed for that business based on how the Company is managed. The Business Solutions Division sells office supply products and services across the United States, Puerto Rico, U.S. Virgin Islands, and Canada. Business Solutions Division customers are served through dedicated sales forces, catalogs, telesales, and electronically through its internet sites. The Retail Division includes retail stores in the United States, Puerto Rico and the U.S. Virgin Islands, which offer office supplies, technology products and solutions, business machines and related supplies, print, cleaning, breakroom and facilities products, and office furniture as well as business services including copying, printing, 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. The CompuCom Division, which reflects the operations of CompuCom since its acquisition on November 8, 2017, sells information technology (IT) outsourcing services and products to North American enterprise organizations in the United States, Canada and Costa Rica, and offers a broad range of solutions that includes end user computing (tablets, smartphones, laptops and desktops), data center management, service desk, network infrastructure and IT workforce solutions. CompuCom Division customers are served through dedicated IT service and sales representatives, telesales, and electronically through the Company’s internet sites.

The retained global sourcing operations previously included in the former International Division are not significant and have been presented as Other. Also included in Other is the elimination of intersegment revenues of $5 million and $6 million for the second quarter and first half of 2018, respectively.

The Company’s three operating segments are the three reportable segments. The Business Solutions Division, Retail Division and CompuCom Division are managed separately as they represent separate channels in the way the Company serves its customers and are managed accordingly. The accounting policies for each segment are the same as those described in Note 1 in the Company’s 2017 Form 10-K. 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, Retail, and CompuCom Divisions, including Asset impairments and Merger and restructuring 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. In addition, the Company regularly evaluates the appropriateness of the reportable segments based on how the business is managed, including making decisions about allocating resources 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.

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

	Sales
	Second Quarter				First Half
(In millions)	2018		2017		2018		2017
Business Solutions Division	$	1,298	$	1,248	$	2,626	$	2,563
Retail Division		1,053		1,111		2,297		2,469
CompuCom Division		277		—		535		—
Other		—		4		—		7
Total	$	2,628	$	2,363	$	5,458	$	5,039

	Division Operating Income (Loss)
	Second Quarter					First Half
(In millions)	2018		2017			2018			2017
Business Solutions Division	$	67	$	64		$	122		$	122
Retail Division		22		20			94			132
CompuCom Division		6		—			12			—
Other		—		(1	)		(1	)		(2	)
Total	$	95	$	83		$	227		$	252

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

	Second Quarter						First Half
(In millions)	2018			2017			2018			2017
Total Divisions operating income	$	95		$	83		$	227		$	252
Add/(subtract):
Asset impairments		—			(1	)		—			(1	)
Merger and restructuring expenses, net		(14	)		(20	)		(31	)		(40	)
Unallocated expenses		(33	)		(21	)		(71	)		(46	)
Interest income		6			6			12			12
Interest expense		(31	)		(14	)		(60	)		(27	)
Other income, net		5			2			6			6
Income from continuing operations before income taxes	$	28		$	35		$	83		$	156

The components of goodwill by segment are provided in the following table:

	Business Solutions		Retail		CompuCom
(In millions)	Division		Division		Division			Total
Balance as of December 30, 2017	$	328	$	78	$	445		$	851
Acquisitions		20		—		13			33
Foreign currency rate impact		—		—		(8	)		(8	)
Purchase accounting adjustments		3		—		2			5
Balance as of June 30, 2018	$	351	$	78	$	452		$	881

Refer to Note 2 for additional information on the acquisitions made during the first half of 2018.