SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 24, 2022

Segment Reporting [Abstract]

Summary of Sales and Operating Income (Loss) by Each of the Divisions, Reconciled to Consolidated Totals

The following is a summary of sales and operating income (loss) by each of the Divisions, reconciled to consolidated totals:

(In millions)	ODP Business Solutions Division		Office Depot Division		Veyer Division		Varis Division			Eliminations			Total
Third Quarter of 2022
Sales (external)	$	1,030	$	1,133	$	7	$	2		$	-		$	2,172
Sales (internal)		5		10		1,477		-			(1,492	)	$	-
Total sales	$	1,035	$	1,143	$	1,484	$	2		$	(1,492	)	$	2,172
Division operating income (loss)	$	48	$	83	$	9	$	(17	)	$	-		$	123
Year-to-Date 2022
Sales (external)	$	3,004	$	3,358	$	18	$	5		$	-		$	6,385
Sales (internal)		15		25		4,415		-			(4,455	)		-
Total sales	$	3,019	$	3,383	$	4,433	$	5		$	(4,455	)	$	6,385
Division operating income (loss)	$	103	$	228	$	25	$	(48	)	$	-		$	308
Third Quarter of 2021
Sales (external)	$	940	$	1,229	$	8	$	2		$	-		$	2,179
Sales (internal)		7		10		1,520		-			(1,537	)		-
Total sales	$	947	$	1,239	$	1,528	$	2		$	(1,537	)	$	2,179
Division operating income (loss)	$	34	$	108	$	7	$	(10	)	$	-		$	139
Year-to-Date 2021
Sales (external)	$	2,697	$	3,699	$	24	$	3		$	-		$	6,423
Sales (internal)		19		26		4,493		-			(4,538	)		-
Total sales	$	2,716	$	3,725	$	4,517	$	3		$	(4,538	)	$	6,423
Division operating income (loss)	$	55	$	266	$	22	$	(21	)	$	-		$	322

Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) from Continuing Operations Before Income Taxes

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

	Third Quarter						Year-to-Date
(In millions)	2022			2021			2022			2021
Total Divisions operating income	$	123		$	139		$	308		$	322
Add/(subtract):
Asset impairments		(3	)		(5	)		(8	)		(18	)
Merger, restructuring and other operating expenses, net		(8	)		(13	)		(42	)		(37	)
Unallocated expenses		(28	)		(17	)		(70	)		(64	)
Interest income		1			—			3			—
Interest expense		(1	)		(7	)		(10	)		(20	)
Other income, net		5			3			9			19
Income from continuing operations before income taxes	$	89		$	100		$	190		$	202

Summary of Disaggregated Revenue from Major Sales Categories

The following table provides information about disaggregated sales by major categories:

	Third Quarter				Year-to-Date
(In millions)	2022		2021		2022		2021
Major sales categories
Supplies	$	1,080	$	1,023	$	3,106	$	2,879
Technology		597		658		1,871		2,118
Furniture and other		336		341		948		987
Copy and print		159		157		460		439
Total	$	2,172	$	2,179	$	6,385	$	6,423

Summary of Total Assets by Each of the Divisions, Reconciled to Consolidated Totals

The following table provides information about total assets by each of the Divisions, reconciled to consolidated totals:

(In millions)	Balance as of September 24, 2022
ODP Business Solutions Division	$	784
Office Depot Division		1,700
Veyer Division		1,104
Varis Division		112
Corporate and other		718
Total	$	4,418

Schedule of Goodwill by Segment

Goodwill and indefinite-lived intangible assets are tested for impairment annually as of the first day of fiscal December or more frequently when events or changes in circumstances indicate that impairment may have occurred. The changes in reportable segments described above also resulted in the change of the Company’s reporting units during the third quarter of 2022, where each reportable segment also represents a reporting unit. Goodwill was allocated to the new reporting units using their relative fair values. The Company performed a qualitative goodwill impairment assessment of its legacy reporting units immediately before the change and determined that it was more likely than not that the respective fair values of the legacy reporting units were greater than their respective carrying values. The Company also performed a quantitative goodwill impairment assessment of its current reporting units immediately after the change and determined the fair values of all reporting units exceeded their carrying amounts. Changes in goodwill by segment were as follows:

(In millions)	Balance as of December 25, 2021		Allocation to   New segment			Balance as of September 24, 2022
Business Solutions Division	$	318	$	(318	)	$	—
Retail Division		78		(78	)		—
Other		68		(68	)		—
ODP Business Solutions Division		—		142			142
Office Depot Division		—		219			219
Veyer Division		—		35			35
Varis Division		—		68			68
Total	$	464	$	—		$	464