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SEGMENT INFORMATION
12 Months Ended
Dec. 28, 2019
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 5. SEGMENT INFORMATION

At December 28, 2019, the Company had three reportable segments: Business Solutions Division, Retail Division and the CompuCom 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, print, cleaning, breakroom and facilities products, and office furniture as well as offer 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 provides IT services and products to enterprise organizations in the United States and Canada, and offers a broad range of solutions including technology lifecycle management, end user computing and collaboration, service desk, remote technology monitoring and management, and IT workforce solutions.

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 $14 million and $11 million in 2019 and 2018, respectively. There were no intersegment revenues in 2017.

The products and services offered by the Business Solutions Division and the Retail Division are similar, but the CompuCom Division’s offerings are focused on IT services and related products. The Company’s three operating segments are its three reportable segments. The Business Solutions Division, the Retail Division and the CompuCom Division are managed separately as they represent separate channels in the way the Company serves its customers, and they are managed accordingly. 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, the Retail Division or the CompuCom Division, including asset impairments and merger and restructuring 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

 

 

CompuCom

Division

 

 

Other

 

 

Corporate

and

Discontinued

Operations*

 

 

Consolidated

Total

 

Sales

 

2019

 

$

5,279

 

 

$

4,363

 

 

$

994

 

 

$

11

 

 

$

 

 

$

10,647

 

 

 

2018

 

 

5,282

 

 

 

4,641

 

 

 

1,086

 

 

 

6

 

 

 

 

 

 

11,015

 

 

 

2017

 

 

5,108

 

 

 

4,962

 

 

 

156

 

 

 

14

 

 

 

 

 

 

10,240

 

Division operating income (loss)

 

2019

 

 

271

 

 

 

194

 

 

 

(2

)

 

 

 

 

 

 

 

 

463

 

 

 

2018

 

 

243

 

 

 

193

 

 

 

17

 

 

 

(2

)

 

 

 

 

 

451

 

 

 

2017

 

 

262

 

 

 

254

 

 

 

8

 

 

 

(3

)

 

 

 

 

 

521

 

Capital expenditures

 

2019

 

 

43

 

 

 

68

 

 

 

10

 

 

 

 

 

 

29

 

 

 

150

 

 

 

2018

 

 

43

 

 

 

108

 

 

 

14

 

 

 

 

 

 

22

 

 

 

187

 

 

 

2017

 

 

45

 

 

 

78

 

 

 

5

 

 

 

 

 

 

13

 

 

 

141

 

Depreciation and amortization

 

2019

 

 

66

 

 

 

91

 

 

 

39

 

 

 

 

 

 

8

 

 

 

204

 

 

 

2018

 

 

64

 

 

 

83

 

 

 

38

 

 

 

 

 

 

7

 

 

 

192

 

 

 

2017

 

 

62

 

 

 

78

 

 

 

5

 

 

 

 

 

 

14

 

 

 

159

 

Charges for losses on receivables

   and inventories

 

2019

 

 

 

 

 

25

 

 

 

1

 

 

 

 

 

 

 

 

 

26

 

 

 

2018

 

 

3

 

 

 

32

 

 

 

2

 

 

 

 

 

 

 

 

 

37

 

 

 

2017

 

 

8

 

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

70

 

Assets

 

2019

 

 

1,803

 

 

 

2,403

 

 

 

989

 

 

 

10

 

 

 

2,106

 

 

 

7,311

 

 

 

2018

 

 

1,686

 

 

 

1,277

 

 

 

1,033

 

 

 

6

 

 

 

2,164

 

 

 

6,166

 

 

*

Amounts included in “Corporate and Discontinued Operations” consist of assets (including all cash and cash equivalents) and depreciation related to corporate activities of continuing operations.

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

 

(In millions)

 

2019

 

 

2018

 

 

2017

 

Division operating income

 

$

463

 

 

$

451

 

 

$

521

 

Add/(subtract):

 

 

 

 

 

 

 

 

 

 

 

 

Asset impairments

 

 

(56

)

 

 

(7

)

 

 

(4

)

Merger and restructuring expenses, net

 

 

(116

)

 

 

(72

)

 

 

(94

)

Legal expense accrual

 

 

 

 

 

(25

)

 

 

 

Unallocated expenses

 

 

(100

)

 

 

(93

)

 

 

(96

)

Interest income

 

 

23

 

 

 

25

 

 

 

22

 

Interest expense

 

 

(89

)

 

 

(121

)

 

 

(62

)

Loss on extinguishment and modification of debt

 

 

 

 

 

(15

)

 

 

 

Other income, net

 

 

21

 

 

 

15

 

 

 

12

 

Income from continuing operations before

   income taxes

 

$

146

 

 

$

158

 

 

$

299