Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 19, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ODP | ||
Entity Registrant Name | Office Depot, Inc. | ||
Entity Central Index Key | 0000800240 | ||
Current Fiscal Year End Date | --12-28 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 528,121,055 | ||
Entity Public Float | $ 1,109,692,554 | ||
Entity Shell Company | false | ||
Entity File Number | 1-10948 | ||
Entity Tax Identification Number | 59-2663954 | ||
Entity Address, Address Line One | 6600 North Military Trail | ||
Entity Address, City or Town | Boca Raton | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33496 | ||
City Area Code | 561 | ||
Local Phone Number | 438-4800 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | Documents Incorporated by Reference: Certain information required for Part III of this Annual Report on Form 10-K is incorporated by reference to the Office Depot, Inc. definitive Proxy Statement for the registrant’s 2020 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission within 120 days after close of the registrant’s fiscal year. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Sales: | |||
Total sales | $ 10,647 | $ 11,015 | $ 10,240 |
Cost of goods sold and occupancy costs: | |||
Total cost of goods sold and occupancy costs | 8,183 | 8,464 | 7,779 |
Gross profit | 2,464 | 2,551 | 2,461 |
Selling, general and administrative expenses | 2,101 | 2,193 | 2,036 |
Asset impairments | 56 | 7 | 4 |
Merger and restructuring expenses, net | 116 | 72 | 94 |
Legal expense accrual | 25 | ||
Operating income | 191 | 254 | 327 |
Other income (expense): | |||
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 |
Income tax expense | 47 | 59 | 153 |
Net income from continuing operations | 99 | 99 | 146 |
Discontinued operations, net of tax | 5 | 35 | |
Net income | $ 99 | $ 104 | $ 181 |
Basic earnings per common share | |||
Continuing operations | $ 0.18 | $ 0.18 | $ 0.28 |
Discontinued operations | 0.01 | 0.07 | |
Net basic earnings per common share | 0.18 | 0.19 | 0.35 |
Diluted earnings per common share | |||
Continuing operations | 0.18 | 0.18 | 0.27 |
Discontinued operations | 0.01 | 0.06 | |
Net diluted earnings per common share | $ 0.18 | $ 0.19 | $ 0.34 |
Product | |||
Sales: | |||
Total sales | $ 9,034 | $ 9,322 | $ 9,320 |
Cost of goods sold and occupancy costs: | |||
Total cost of goods sold and occupancy costs | 7,088 | 7,313 | 7,236 |
Service | |||
Sales: | |||
Total sales | 1,613 | 1,693 | 920 |
Cost of goods sold and occupancy costs: | |||
Total cost of goods sold and occupancy costs | $ 1,095 | $ 1,151 | $ 543 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 99 | $ 104 | $ 181 | |
Other comprehensive income (loss), net of tax, where applicable: | ||||
Foreign currency translation adjustments | 21 | (36) | 25 | |
Reclassification of foreign currency translation adjustments realized upon disposal of businesses | 29 | [1] | (1) | |
Change in deferred pension, net of $6 million, $9 million and $15 million of deferred income taxes in 2019, 2018 and 2017, respectively | 12 | (14) | 28 | |
Other | (1) | |||
Total other comprehensive income (loss), net of tax, where applicable | 33 | (21) | 51 | |
Comprehensive income | $ 132 | $ 83 | $ 232 | |
[1] | Relates to the disposition of the Company’s businesses in Australia and New Zealand in 2018. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Change in deferred pension, deferred income taxes | $ 6 | $ 9 | $ 15 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 698 | $ 658 | |
Receivables, net | 823 | 885 | |
Inventories | 1,032 | 1,065 | |
Prepaid expenses and other current assets | 75 | 75 | |
Timber notes receivable, current maturities | 819 | 0 | |
Total current assets | 3,447 | 2,683 | |
Property and equipment, net | 679 | 763 | |
Operating lease right-of-use assets | 1,413 | ||
Goodwill | 944 | 914 | |
Other intangible assets, net | 388 | 422 | |
Timber notes receivable | 842 | ||
Deferred income taxes | 183 | 284 | |
Other assets | 257 | 258 | |
Total assets | 7,311 | 6,166 | |
Current liabilities: | |||
Trade accounts payable | 1,026 | 1,110 | |
Accrued expenses and other current liabilities | 1,219 | 978 | |
Income taxes payable | 8 | 2 | |
Short-term borrowings and current maturities of long-term debt | 106 | 95 | |
Non-recourse debt, current maturities | 735 | ||
Total current liabilities | 3,094 | 2,185 | |
Deferred income taxes and other long-term liabilities | 176 | 300 | |
Pension and postretirement obligations, net | 85 | 111 | |
Long-term debt, net of current maturities | 575 | 690 | |
Operating lease liabilities | [1] | 1,208 | |
Non-recourse debt | 754 | ||
Total liabilities | 5,138 | 4,040 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Common stock — authorized 800,000,000 shares of $0.01 par value; issued shares — 620,424,775 at December 28, 2019 and 614,170,704 at December 29, 2018; outstanding shares — 535,182,317 at December 28, 2019 and 543,833,428 at December 29, 2018 | 6 | 6 | |
Additional paid-in capital | 2,647 | 2,677 | |
Accumulated other comprehensive loss | (66) | (99) | |
Accumulated deficit | (89) | (173) | |
Treasury stock, at cost — 85,242,458 shares at December 28, 2019 and 70,337,276 shares at December 29, 2018 | (325) | (285) | |
Total stockholders’ equity | 2,173 | 2,126 | |
Total liabilities and stockholders’ equity | $ 7,311 | $ 6,166 | |
[1] | Operating lease payments include $116 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $8 million of legally binding lease payments for 3 additional operating leases signed but not yet commenced. These operating leases will commence in fiscal year 2020 with lease terms of 10 years. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, authorized | 800,000,000 | 800,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, issued shares | 620,424,775 | 614,170,704 |
Common stock, shares, outstanding | 535,182,317 | 543,833,428 |
Treasury stock, shares | 85,242,458 | 70,337,276 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Cash flows from operating activities of continuing operations: | |||
Net income | $ 99 | $ 104 | $ 181 |
Income from discontinued operations, net of tax | 5 | 35 | |
Net income from continuing operations | 99 | 99 | 146 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 204 | 192 | 159 |
Amortization of debt discount and issuance costs | 8 | 10 | 3 |
Charges for losses on receivables and inventories | 26 | 37 | 70 |
Asset impairments | 56 | 7 | 4 |
Gain on disposition of assets, net | (23) | (5) | (4) |
Loss on extinguishment and modification of debt | 15 | ||
Compensation expense for share-based payments | 33 | 27 | 28 |
Deferred income taxes and deferred tax asset valuation allowances | 100 | 40 | 137 |
Contingent consideration payments in excess of acquisition-date liability | (11) | ||
Changes in assets and liabilities: | |||
Decrease in receivables | 63 | 43 | 15 |
Decrease (increase) in inventories | 19 | (2) | 160 |
Net decrease in prepaid expenses, operating lease right-of-use assets, and other assets | 321 | 4 | 2 |
Net increase (decrease) in trade accounts payable, accrued expenses, operating lease liabilities, and other current and other long-term liabilities | (532) | 140 | (252) |
Other operating activities | 3 | 9 | (1) |
Total adjustments | 267 | 517 | 321 |
Net cash provided by operating activities of continuing operations | 366 | 616 | 467 |
Cash flows from investing activities of continuing operations: | |||
Capital expenditures | (150) | (187) | (141) |
Businesses acquired, net of cash acquired | (22) | (81) | (872) |
Proceeds from disposition of assets | 50 | 15 | 30 |
Purchase of leased head office facility | (42) | ||
Other investing activities | 3 | 4 | (5) |
Net cash used in investing activities of continuing operations | (119) | (249) | (1,030) |
Cash flows from financing activities of continuing operations: | |||
Net payments on long and short-term borrowings | (98) | (97) | (31) |
Cash used in extinguishment and modification of debt | (7) | ||
Debt retirement | (735) | (194) | |
Debt issuance | 736 | 728 | |
Cash dividends on common stock | (55) | (55) | (53) |
Share purchases for taxes, net of proceeds from employee share-based transactions | (9) | (3) | (17) |
Repurchase of common stock for treasury | (40) | (39) | (56) |
Contingent consideration payments up to amount of acquisition-date liability | (12) | ||
Acquisition of non-controlling interest | (18) | ||
Payment to extinguish finance lease obligation | (92) | ||
Other financing activities | 1 | (1) | (6) |
Net cash provided by (used in) financing activities of continuing operations | (212) | (414) | 473 |
Cash flows from discontinued operations: | |||
Operating activities of discontinued operations | 0 | 11 | (9) |
Investing activities of discontinued operations | 0 | 66 | (68) |
Financing activities of discontinued operations | 0 | 0 | (8) |
Net cash provided by (used in) discontinued operations | 77 | (85) | |
Effect of exchange rate changes on cash and cash equivalents | 5 | (9) | 7 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 40 | 21 | (168) |
Cash, cash equivalents and restricted cash at beginning of period | 660 | 639 | 807 |
Cash, cash equivalents and restricted cash at end of period | 700 | 660 | 639 |
Cash and cash equivalents of discontinued operations | 14 | ||
Cash, cash equivalents and restricted cash at end of period — continuing operations | 700 | 660 | 625 |
Supplemental information on operating, investing, and financing activities | |||
Cash interest paid, net of amounts capitalized and Timber notes/Non-recourse debt | 61 | 93 | 34 |
Cash taxes paid (refunded), net | (43) | (5) | 18 |
Non-cash asset additions under finance leases | $ 27 | $ 24 | $ 5 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Treasury Stock |
Balance at Dec. 31, 2016 | $ 1,852 | $ 6 | $ 2,618 | $ (129) | $ (453) | $ (190) |
Balance, Shares at Dec. 31, 2016 | 557,892,568 | |||||
Net income | 181 | 181 | ||||
Other comprehensive income (loss) | 51 | 51 | ||||
Common stock issuance related to the CompuCom acquisition | 135 | 135 | ||||
Common stock issuance related to the CompuCom acquisition(in shares) | 43,758,974 | |||||
Exercise and release of incentive stock (including income tax benefits and withholding) | (17) | (17) | ||||
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares) | 8,702,452 | |||||
Amortization of long-term incentive stock grants | 29 | 29 | ||||
Dividends paid on common stock | (53) | (53) | ||||
Adjustment for adoption of accounting standard | 1 | (1) | ||||
Noncontrolling interest redemption value adjustment | (2) | (2) | ||||
Repurchase of common stock | (56) | (56) | ||||
Balance at Dec. 30, 2017 | 2,120 | $ 6 | 2,711 | (78) | (273) | (246) |
Balance, Shares at Dec. 30, 2017 | 610,353,994 | |||||
Net income | 104 | 104 | ||||
Other comprehensive income (loss) | (21) | (21) | ||||
Exercise and release of incentive stock (including income tax benefits and withholding) | (3) | (3) | ||||
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares) | 4,064,910 | |||||
Acquisition escrow shares returned | (1) | (1) | ||||
Acquisition escrow shares returned (in shares) | (248,200) | |||||
Amortization of long-term incentive stock grants | 27 | 27 | ||||
Dividends paid on common stock | (55) | (55) | ||||
Adjustment for adoption of accounting standard | (4) | (4) | ||||
Repurchase of common stock | (39) | (39) | ||||
Other | (2) | (2) | ||||
Balance at Dec. 29, 2018 | 2,126 | $ 6 | 2,677 | (99) | (173) | (285) |
Balance, Shares at Dec. 29, 2018 | 614,170,704 | |||||
Net income | 99 | 99 | ||||
Other comprehensive income (loss) | 33 | 33 | ||||
Exercise and release of incentive stock (including income tax benefits and withholding) | (8) | (8) | ||||
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares) | 6,254,071 | |||||
Amortization of long-term incentive stock grants | 33 | 33 | ||||
Dividends paid on common stock | (55) | (55) | ||||
Adjustment for adoption of accounting standard | (15) | (15) | ||||
Repurchase of common stock | $ (40) | (40) | ||||
Repurchase of common stock (in shares) | (15,000,000) | |||||
Balance at Dec. 28, 2019 | $ 2,173 | $ 6 | $ 2,647 | $ (66) | $ (89) | $ (325) |
Balance, Shares at Dec. 28, 2019 | 620,424,775 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||||||
Dividend paid on common stock, per share | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.10 | $ 0.10 | $ 0.10 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Office Depot, Inc. including its consolidated subsidiaries (“Office Depot” or the “Company”), is a leading provider of business services and supplies, products and technology solutions to small, medium and enterprise businesses, through a fully integrated business-to-business (“B2B”) distribution platform of 1,307 retail stores, online presence, and dedicated sales professionals and technicians. Through its banner brands Office Depot®, OfficeMax®, CompuCom® and Grand & Toy®, as well as others, the Company offers its customers the tools and resources they need to focus on starting, growing and running their business. The Company’s corporate headquarters is located in Boca Raton, FL, and its primary website is www.officedepot.com. At December 28, 2019, the Company had three reportable segments (or “Divisions”): Business Solutions Division, Retail Division and the CompuCom Division. Basis of Presentation: The Consolidated Financial Statements of Office Depot include the accounts of all wholly owned and financially controlled subsidiaries prior to disposition. Also, the variable interest entities formed by OfficeMax in prior periods solely related to the Timber Notes and Non-recourse debt are consolidated because the Company is the primary beneficiary. Refer to Note 10 for additional information. The Company owns 88% of a subsidiary that formerly owned assets in Cuba, which were confiscated by the Cuban government in the 1960’s. Due to various asset restrictions, the fair value of this investment is not determinable, and no amounts are included in the Consolidated Financial Statements. Intercompany transactions have been eliminated in consolidation. In September 2016, the Company’s Board of Directors committed to a plan to sell substantially all of the Company’s International Division operations (the “International Operations”). Accordingly, those operations are presented herein as discontinued operations. The sale of the International Operations was complete as of June 30, 2018 and there were no remaining assets or liabilities of discontinued operations in the Consolidated Balance Sheets. Refer to Note 5 for additional information regarding our Divisions and operations in geographic areas and Note 18 for Discontinued Operations information. Fiscal Year: Fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. All years presented in the Consolidated Financial Statements consisted of 52 weeks. Certain subsidiaries, including CompuCom, operate on a calendar year basis; however, the reporting difference did not have a material impact in any period presented. Estimates and Assumptions: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Business Combinations: The Company applies the acquisition method of accounting for acquisitions where the Company is considered the accounting acquirer in accordance with ASC Topic 805, “Business Combinations” (“ASC 805”). The results of operations of acquired businesses are included in the Company’s consolidated results prospectively from the date of acquisition. The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquired entity generally based on their fair values at the acquisition date. Various valuation methodologies are used to estimate the fair value of assets acquired and liabilities assumed, including using a market participant perspective when applying cost, income and relief from royalty analyses, supplemented with market appraisals where appropriate. Significant judgments and estimates are required in preparing these fair value estimates. The excess of the fair value of purchase consideration over the fair value of the assets acquired, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired company and the Company and the value of the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses and post-acquisition restructuring costs are recognized separately from the business combination and are expensed as incurred. Refer to Note 2 for additional information. Foreign Currency: International operations in Canada, Mexico, India, Costa Rica and China use local currencies as their functional currency. Assets and liabilities are translated into U.S. dollars using the exchange rate at the balance sheet date. Revenues, expenses and cash flows are translated at average monthly exchange rates, or rates on the date of the transaction for certain significant items. Translation adjustments resulting from this process are recorded in Stockholders’ equity as a component of Accumulated other comprehensive income (loss). Foreign currency transaction gains or losses are recorded in the Consolidated Statements of Operations in Other income (expense), net or Cost of goods sold and occupancy costs, depending on the nature of the transaction. Cash and Cash Equivalents: All short-term highly liquid investments with original maturities of three months or less from the date of acquisition are classified as cash equivalents. Amounts in transit from banks for customer credit card and debit card transactions are classified as cash. The banks process the majority of these amounts within two business days. Amounts not yet presented for payment to zero balance disbursement accounts of $25 million and $27 million at December 28, 2019 and December 29, 2018, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities. At December 28, 2019, cash and cash equivalents from continuing operations held outside the United States amounted to $190 million. Restricted Cash: Restricted cash consists primarily of short-term cash deposits having original maturity dates of twelve months or less that serve as collateral to certain of the Company’s letters of credit. Restricted cash is valued at cost, which approximates fair value. At December 28, 2019 and December 29, 2018, restricted cash amounted to $2 million and is included in Prepaid expenses and other current assets in the Consolidated Balance Sheets Receivables: Trade receivables totaled $599 million and $655 million at December 28, 2019 and December 29, 2018, respectively, net of an allowance for doubtful accounts of $10 million in both periods, to reduce receivables to an amount expected to be collectible from customers. Exposure to credit risk associated with trade receivables is limited by having a large customer base that extends across many different industries and geographic regions. However, receivables may be adversely affected by an economic slowdown in the United States or internationally. No single customer accounted for more than 10% of total sales or receivables in 2019, 2018 or 2017. Other receivables were $225 million and $230 million at December 28, 2019 and December 29, 2018, respectively, of which $162 million and $183 million, respectively, are amounts due from vendors under purchase rebate, cooperative advertising and various other marketing programs. Inventories: Inventories are stated at the lower of cost or net realizable value and are reduced for inventory losses based on estimated obsolescence and the results of physical counts. The weighted average method is used throughout the Company to determine the cost of inventory. In-bound freight is included as a cost of inventories; cash discounts and certain vendor allowances that are related to inventory purchases are recorded as a product cost reduction. Income Taxes: Income taxes are accounted for under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities attributable to differences between the carrying amounts and the tax bases of assets and liabilities and operating loss and tax credit carryforwards. Valuation allowances are recorded to reduce deferred tax assets to the amount believed to be more likely than not to be realized. The Company recognizes tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination. Interest related to income tax exposures is included in interest expense in the Consolidated Statements of Operations. Refer to Note 6 for additional information on income taxes. Property and Equipment: Property and equipment additions are recorded at cost. Depreciation and amortization is recognized over the estimated useful lives using the straight-line method. The useful lives of depreciable assets are estimated to be 15-30 years for buildings and 3-10 years for furniture, fixtures and equipment. Computer software is amortized over three years for common office applications, five years for larger business applications and seven years for certain enterprise-wide systems. Leasehold improvements are amortized over the shorter of the estimated economic lives of the improvements or the terms of the underlying leases, including renewal options considered reasonably assured. The Company capitalizes certain costs related to internal use software that is expected to benefit future periods. These costs are amortized using the straight-line method over the 3 to 7 year expected life of the software. Major repairs that extend the useful lives of assets are capitalized and amortized over the estimated use period. Routine maintenance costs are expensed as incurred. Refer to Note 8 for additional information on property and equipment. Goodwill and Other Intangible Assets: Goodwill represents the excess of the purchase price of an acquired entity over the fair value of the net tangible and identifiable intangible assets acquired and liabilities assumed in a business combination. The Company reviews the carrying amount of goodwill at the reporting unit level on an annual basis, or more frequently, if events or changes in circumstances suggest that goodwill may not be recoverable. For those reporting units where events or change in circumstances indicate that potential impairment indicators exist, the Company performs a quantitative assessment to determine whether the carrying amount of goodwill can be recovered. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. When performing the annual goodwill impairment test, the Company may start with an optional qualitative assessment. As part of the qualitative assessment, the Company evaluates all events and circumstances, including both positive and negative events, in their totality, to determine whether it is not more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company bypasses the qualitative assessment, or if the qualitative assessment indicates that a quantitative analysis should be performed, the Company evaluates goodwill for impairment by comparing the fair value of a reporting unit to its carrying value, including the associated goodwill. The Company estimates the reporting unit’s fair value using discounted cash flow analysis and market-based evaluations, when available. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. The Company typically uses a combination of different Level 3 valuation approaches that are dependent on several significant estimates and assumptions related to forecasts of future revenues, cost of sales, expenses and the weighted-average cost of capital for each reporting unit. Any adverse change in these factors could have a significant impact on the recoverability of goodwill and could have a material impact on the Company’s Consolidated Financial Statements. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually. The Company evaluates its indefinite-lived intangible assets for impairment annually, or sooner if indications of possible impairment are identified. When performing the annual impairment test, the Company may first start with an optional qualitative assessment to determine whether it is not more likely than not that its indefinite-lived intangible assets are impaired. As part of a qualitative assessment, the Company evaluates relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. If the Company bypasses the qualitative assessment, or if the qualitative assessment indicates that a quantitative analysis should be performed, the Company evaluates its indefinite-lived intangible assets for impairment by comparing the fair value of the asset to its carrying amount. During the third quarter of 2019, the Company decided to change its annual goodwill and indefinite lived intangible assets impairment assessment date from the first day of the third quarter to the first day of fiscal month December. The change in measurement date represents a change in method of applying an accounting principle. This change was preferable because it aligned the Company’s impairment testing procedures with its annual business planning and budgeting process, which occurs in the fourth quarter of each year, and with the timing of the development of its multi-year strategic plan. This change in accounting principle related to the annual testing date did not delay, accelerate or avoid an impairment charge. This change was not applied retrospectively as it was impracticable to do so because retrospective application would have required application of significant estimates and assumptions with the use of hindsight. Accordingly, the change was applied prospectively. In addition, this change did not have a material impact on the Company’s Consolidated Financial Statements. Intangible assets determined to have finite lives are amortized on a straight-line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to the Company’s future cash flows. The Company periodically reviews its amortizable intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization or asset impairment. Refer to Note 9 for additional information on goodwill and other intangible assets. Impairment of Long-Lived Assets: Long-lived assets with identifiable cash flows are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Retail store long-lived assets are regularly reviewed for impairment indicators. Impairment is assessed at the individual store level which is the lowest level of identifiable cash flows and considers the estimated undiscounted cash flows over the asset’s remaining life. If estimated undiscounted cash flows are insufficient to recover the investment, an impairment loss is recognized equal to the difference between the estimated fair value of the asset and its carrying value, net of salvage, and any costs of disposition. The fair value estimate is generally the discounted amount of estimated store-specific cash flows. Facility Closure and Severance Costs: Retail store performance is regularly reviewed against expectations and stores not meeting performance requirements may be closed. During the third quarter of 2016, the Company initiated a program to close up to 300 underperforming retail stores over a three-year Costs associated with facility closures, principally accrued lease costs, are recognized when the facility is no longer used in an operating capacity or when a liability has been incurred. Retail store assets, including operating lease right-of-use (“ROU”) assets, are also reviewed for possible impairment, or reduction of estimated useful lives. The Company recognizes charges or credits to adjust remaining closed facility accruals to reflect current expectations. Adjustments to facility closure costs are presented in the Consolidated Statements of Operations in Selling, general and administrative expenses if the related facility was closed as part of ongoing operations or in Merger and restructuring expenses, net, if the related facility was closed as part of a merger integration plan or restructuring plan. Refer to Note 3 for additional information on accrued expenses relating to closed facilities. The short-term and long-term components of this liability are included in Accrued expenses and other current liabilities and Deferred income taxes and other long-term liabilities, respectively, in the Consolidated Balance Sheets. Employee termination costs covered under written and substantive plans are accrued when probable and estimable and consider continuing service requirements, if any. Additionally, incremental one-time employee benefit costs are recognized when the key terms of the arrangements have been communicated to affected employees. Amounts are recognized when communicated or over the remaining service period, based on the terms of the arrangements. Accrued Expenses: The major components of Accrued expenses and other current liabilities in the Consolidated Balance Sheets are tax liabilities, payroll and benefit accruals, customer rebates accruals and inventory receipts accruals. In addition, the December 28, 2019 Consolidated Balance Sheet includes the short-term portion of the Company’s operating lease liabilities. Accrued payroll and benefits were $150 million and $173 million at December 28, 2019 and December 29, 2018, respectively. Fair Value of Financial Instruments: The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In developing its fair value estimates, the Company uses the following hierarchy: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 Significant unobservable inputs that are not corroborated by market data. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows or option pricing models using own estimates and assumptions or those expected to be used by market participants. The fair values of cash and cash equivalents, receivables, trade accounts payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. Refer to Note 16 for further fair value information. Revenue Recognition: Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. For product sales, transfer of control occurs at a point in time, typically upon delivery to the customer. For service offerings, the transfer of control and satisfaction of the performance obligation is either over time or at a point in time. When performance obligations are satisfied over time, the Company evaluates the pattern of delivery and progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Revenue is recognized net of allowance for returns and net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling fees are included in Sales in the Consolidated Statements of Operations. Shipping and handling costs are considered fulfillment activities and are included in Cost of goods sold and occupancy costs in the Consolidated Statements of Operations. The Company recognizes sales, other than third-party software sales, on a gross basis when it is considered the primary obligor in the transaction and on a net basis when it is considered to be acting as an agent. The Company recognizes sales of third-party software on a net basis. The Company uses judgment in estimating sales returns, considering numerous factors such as historical sales return rates. The Company also records reductions to revenue for customer programs and incentive offerings including special pricing agreements, certain promotions and other volume-based incentives. A liability for future performance is recognized when gift cards are sold and the related revenue is recognized when gift cards are redeemed as payment for products or when the likelihood of gift card redemption is considered remote. Gift cards do not have an expiration date. The Company recognizes the estimated portion of the gift card program liability that will not be redeemed, or the breakage amount, in proportion to usage. Cost of Goods Sold and Occupancy Costs: Cost of goods sold and occupancy costs include: - inventory costs (as discussed above); - outbound freight; - employee and non-employee receiving, distribution, and occupancy costs (rent), including depreciation, real estate taxes and common area costs, of inventory-holding and selling locations; and - identifiable employee-related costs associated with services provided to customers. Selling, General and Administrative Expenses: Selling, general and administrative expenses include amounts incurred related to expenses of operating and support functions, including: - employee payroll and benefits, including variable pay arrangements; - advertising; - store and field support; - executive management and various staff functions, such as information technology, human resources functions, finance, legal, internal audit, and certain merchandising and product development functions; - other operating costs incurred relating to selling activities; and - closed defined benefit pension and postretirement plans. Selling, general and administrative expenses are included in the determination of Division operating income to the extent those costs are considered to be directly or closely related to segment activity and through allocation of support costs. Merger and Restructuring Expenses, net: Merger and restructuring expenses, net in the Consolidated Statements of Operations includes charges and, where applicable, credits for costs such as acquisition related expenses, employee termination and retention, transaction and integration-related professional fees, facility closure costs, gains and losses on asset dispositions, and other incremental costs directly related to these activities. This presentation is used to separately identify these significant costs apart from expenses incurred to sell to and service the Company’s customers or that are more directly related to ongoing operations. Changes in estimates and accruals related to these activities are also reflected on this line. Merger and restructuring expenses, net are not included in the measure of Division operating income. Refer to Note 3 for additional information. Advertising: Advertising expenses are charged to Selling, general and administrative expenses when incurred. Advertising expenses recognized were $249 million in 2019, $270 million in 2018 and $264 million in 2017. Prepaid advertising expenses were $6 million as of December 28, 2019, $5 million as of December 29, 2018 and $6 million as of December 30, 2017. Share-Based Compensation: Compensation expense for all share-based awards expected to vest is measured at fair value on the date of grant and recognized on a straight-line basis over the related service period. The fair value of restricted stock and restricted stock units, including performance-based awards, is determined based on the Company’s stock price on the date of grant. Share-based awards with market conditions, such as total shareholder return, are valued using a Monte Carlo simulation as measured on the grant date. Self-insurance: Office Depot is primarily self-insured for workers’ compensation, auto and general liability and employee medical insurance programs. The Company has stop-loss coverage to limit the exposure arising from these claims. Self-insurance liabilities are based on claims filed and estimates of claims incurred but not reported. These liabilities are not discounted. Vendor Arrangements: The Company enters into arrangements with substantially all significant vendors that provide for some form of consideration to be received from the vendors. Arrangements vary, but some specify volume rebate thresholds, advertising support levels, as well as terms for payment and other administrative matters. The volume-based rebates, supported by a vendor agreement, are estimated throughout the year and reduce the cost of inventory and cost of goods sold during the year. This estimate is regularly monitored and adjusted for current or anticipated changes in purchase levels and for sales activity. Other promotional consideration received is event-based or represents general support and is recognized as a reduction of Cost of goods sold and occupancy costs or Inventories, as appropriate, based on the type of promotion and the agreement with the vendor. Certain arrangements meet the specific, incremental, identifiable criteria that allow for direct operating expense offset, but such arrangements are not significant. Pension and Other Postretirement Benefits: The Company sponsors certain closed U.S. and U.K. defined benefit pension plans, certain closed U.S. retiree medical benefit and life insurance plans, as well as a Canadian retiree medical benefit plan open to certain employees. The Company recognizes the funded status of its defined benefit pension, retiree medical benefit and life insurance plans in the Consolidated Balance Sheets, with changes in the funded status recognized primarily through accumulated other comprehensive income (loss), net of tax, in the year in which the changes occur. Actuarially-determined liabilities related to pension and postretirement benefits are recorded based on estimates and assumptions. Factors used in developing estimates of these liabilities include assumptions related to discount rates, rates of return on investments, healthcare cost trends, benefit payment patterns and other factors. The Company also updates periodically its assumptions about employee retirement factors, mortality, and turnover. Refer to Note 15 for additional details. Environmental and Asbestos Matters: Environmental and asbestos liabilities relate to acquired legacy paper and forest products businesses and timberland assets. The Company accrues for losses associated with these obligations when probable and reasonably estimable. These liabilities are not discounted. A receivable for insurance recoveries is recorded when probable. Leasing Arrangements: The Company conducts a substantial portion of its business in leased properties. The Company first determines whether an arrangement is a lease at inception. Once that determination is made, leasing arrangements are presented in the Consolidated Balance Sheet as follows: • Finance leases : o Property and equipment, net –leases which were referred to as capital leases under the old accounting standard; o Short-term borrowings and current maturities of long-term debt – short-term obligations to make lease payments arising from the finance lease; and o Long-term debt, net of current maturities – long-term obligations to make lease payments arising from the finance lease. • Operating leases : o ROU assets – the Company’s right to use the underlying asset for the lease term; o Accrued expenses and other current liabilities – short-term obligations to make lease payments arising from the operating lease; and o Operating lease liabilities – long-term obligations to make lease payments arising from the operating lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. As the rate implicit in the lease is not readily determinable for any of the leases, the Company has utilized its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The determination of the appropriate incremental borrowing rate requires management to use significant estimates and assumptions as to its credit rating, base rates and credit spread, and other management assumptions for the impact of collateral. The operating lease ROU asset also includes any lease payments made prior to commencement and excludes lease incentives and initial direct costs incurred. Certain leases include one or more options to renew, with renewal terms that can extend the lease from five to 25 years or more, which is generally at the Company’s discretion. Any option or renewal periods management believed were reasonably certain of being exercised are included in the lease term, and are used in calculating the operating lease ROU assets and lease liabilities. In addition, some of the Company’s leases contain escalation clauses. The Company recognizes rental expense for operating leases that contain predetermined fixed escalation clauses on a straight-line basis over the expected term of the lease. The Company has lease agreements with lease and non-lease components, for which it has made an accounting policy election to account for these as a single lease component. Refer to the “New Accounting Standards” section below for more information including the impact in the Consolidated Financial Statements relating to the adoption of the new lease accounting standard. NEW ACCOUNTING STANDARDS Standards that are not yet adopted: Financial Instruments – Credit Losses : In June 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that modifies the measurement of expected credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update will change the accounting for credit impairment by adding an impairment model that is based on expected losses rather than incurred losses. In July 2018, the FASB approved an amendment to the new guidance that provides transition relief to the adopting entities and allows for an election of the fair value option on certain financial instruments. This accounting standard update, as amended, is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company evaluated the impact of this new standard and believes the adoption will not have a material impact on its Consolidated Financial Statements. Cloud computing arrangements : In August 2018, the FASB issued an accounting standard update that provides guidance regarding the accounting for implementation costs in cloud computing arrangements. This accounting update is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. The Company evaluat ed the impact of this new standard and believes the adoption will not have a material impact on its Consolidated Financial Statements. Defined benefit plan : In August 2018, the FASB issued an accounting standard update that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This accounting update is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the impact of this new standard and believes the adoption will not have a material impact on its Consolidated Financial Statements. Standards that were adopted: Leases : In February 2016, the FASB issued an accounting standard update that requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The accounting treatment for finance leases and lessors remains re |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 2. ACQUISITIONS Since 2017, the Company has been undergoing a strategic business transformation to pivot into an integrated B2B distribution platform, with the objective of expanding its product offerings to include value-added services for its customers and capture greater market share. As part of this transformation, the Company has been acquiring businesses to expand its reach and distribution network into geographic areas that were previously underserved. During 2019, the Company acquired five small independent regional office supply distribution businesses. Of these five acquisitions, two were completed in the first quarter of 2019, two were completed in the second quarter of 2019, and one was completed in the fourth quarter of 2019. The aggregate total purchase consideration, including contingent consideration, for the five acquisitions completed in 2019 was approximately $27 The Company recognized a contingent consideration liability of $25 million in connection with the acquisition of an enterprise IT solutions integrator and managed services provider in 2018. In the first quarter of 2019, the Company paid $23 million of this contingent consideration liability, of which $12 million was treated as a financing cash outflow in the Consolidated Statement of Cash Flows because it related to the acquisition-date accrual, and $11 million was presented as a cash outflow from operating activities as it was accrued subsequent to the acquisition date based on new information obtained on the financial performance of the acquired entity. This $11 million accrual was recorded in the Merger and restructuring expenses, net line in the Consolidated Statement of Operations in 2018. The remaining portion of this contingent consideration liability will be paid in 2020. Based on new information received, the preliminary purchase price allocations of the companies acquired in 2018 and 2019 have been adjusted during the respective measurement periods. These adjustments were insignificant individually and in the aggregate to the Company’s Consolidated Financial Statements. The measurement periods for acquisitions completed in 2018 closed within 2019. Under the guidance on accounting for business combinations, merger and integration costs are not included as components of consideration transferred, instead, they are accounted for as expenses in the period in which the costs are incurred. Transaction-related expenses are included in the Merger and restructuring expenses, net line in the Consolidated Statements of Operations. Refer to Note 3 for additional information about the merger and restructuring expenses incurred during 2019. In February 2020 the Company acquired two small independent regional office supply distribution businesses in the U.S. Certain disclosures set forth under ASC 805, including supplemental pro forma financial information, are not disclosed because the operating results of the acquired businesses, individually and in the aggregate, are not material to the Company. |
MERGER AND RESTRUCTURING ACTIVI
MERGER AND RESTRUCTURING ACTIVITY | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
MERGER AND RESTRUCTURING ACTIVITY | NOTE 3. MERGER AND RESTRUCTURING ACTIVITY Since 2017, the Company has taken actions to optimize its asset base and drive operational efficiencies. These actions include acquiring businesses, closing underperforming stores and non-strategic distribution facilities, consolidating functional activities, eliminating redundant positions and disposing of non-strategic businesses and assets. The expenses and any income recognized directly associated with these actions are included in Merger and restructuring expenses, net on a separate line in the Consolidated Statements of Operations in order to identify these activities apart from the expenses incurred to sell to and service its customers. These expenses are not included in the determination of Division operating income. The table below summarizes the major components of Merger and restructuring expenses, net. (In millions) 2019 2018 2017 Merger and transaction related expenses Severance and retention $ 1 $ 11 $ — Transaction and integration 23 35 37 Facility closure, contract termination and other expenses, net — 10 5 Total Merger and transaction related expenses 24 56 42 Restructuring expenses Severance 40 — 28 Professional fees 41 11 6 Facility closure, contract termination, and other expenses, net 11 5 18 Total Restructuring expenses 92 16 52 Total Merger and restructuring expenses, net $ 116 $ 72 $ 94 MERGER AND TRANSACTION RELATED EXPENSES In 2019, the Company incurred $24 million of merger and transaction related expenses. Severance and retention include expenses related to the integration of staff functions in connection with business acquisitions and are expensed through the severance and retention period. Transaction and integration include legal, accounting, and other third-party expenses incurred in connection with acquisitions and business integration activities primarily related to CompuCom. Facility closure, contract termination, and other expenses, net relate to facility closure accruals, contract termination costs, gains and losses on asset dispositions, and accelerated depreciation. In 2018 and 2017, merger and transaction related expenses, net include costs incurred for the CompuCom transaction as well as integration expenses associated with the OfficeMax merger. All integration activities related to the OfficeMax merger were completed in 2018. RESTRUCTURING EXPENSES Business Acceleration Program In May 2019, the Company’s Board of Directors approved a company-wide, multi-year, cost reduction and business improvement program to systematically drive down costs, improve operational efficiencies, and enable future growth investments. Under this program (the “Business Acceleration Program”), the Company has made and will continue to make organizational realignments stemming from process improvements, increased leverage of technology and accelerated use of automation. This has resulted and will continue to result in the elimination of certain positions and a flatter organization. In connection with the Business Acceleration Program, the Company also anticipates closing approximately 90 underperforming retail stores in 2020 and 2021, and 9 other facilities, consisting of distribution centers and sales offices, of which 7 were closed as of the end of 2019. Total estimated costs to implement the Business Acceleration Program are expected to be approximately $107 million, comprised of: (a) severance and related employee costs of approximately $40 million; (b) recruitment and relocation costs of approximately $2 million; (c) retail store and facility closure net costs of approximately $7 million; (d) third-party costs to facilitate the execution of the Business Acceleration Program of approximately $49 million; and (e) other costs of approximately $9 million. Of the aggregate costs to implement the Business Acceleration Program, approximately $104 million are expected to be cash expenditures through 2021 funded primarily with cash on hand and cash from operations. In 2019, the Company incurred $82 million in restructuring expenses associated with the Business Acceleration Program which consisted of $40 million of severance costs, $39 million in third-party professional fees, and $ 3 million of retail store and facility closure costs and other. Of the expenses incurred in 2019, cash expenditures of $ million were paid through the end of 2019. Other Included in restructuring expenses in 2019, 2018 and 2017 are $8 million, $5 million and $50 million, respectively, of costs incurred in connection with the Comprehensive Business Review, a program the Company announced in 2016 and concluded at the end of 2019. These costs include severance, facility closure costs, contract termination, accelerated depreciation, relocation and disposal gains and losses, as well as other costs associated with retail store closures. Under the Comprehensive Business Review, the Company closed a total of 208 retail stores of which 54 occurred in 2019. Additionally, restructuring expenses in 2018 and 2017 included professional fees of $11 million and $2 million, respectively, associated with planning the Company’s multi-year strategic transformation. Asset impairments related to the restructuring initiatives are not included in the table above. Refer to Note 16 for further information. MERGER AND RESTRUCTURING ACCRUALS The activity in the merger and restructuring accruals in 2019 and 2018 is presented in the table below. Certain merger and restructuring charges are excluded from the table because they are paid as incurred or non-cash, such as accelerated depreciation and gains and losses on asset dispositions. (In millions) Beginning Balance Charges Incurred Cash Payments Adjustments (a) Ending Balance 2019 Termination benefits: Merger-related accruals $ 3 $ 2 $ (4 ) $ — $ 1 Comprehensive Business Review — — — — — Business Acceleration Program — 40 (27 ) — 13 Lease and contract obligations, accruals for facilities closures and other costs: Merger-related accruals 10 — — (10 ) — Comprehensive Business Review 5 6 (5 ) (3 ) 3 Business Acceleration Program — 42 (37 ) — 5 Total $ 18 $ 90 $ (73 ) $ (13 ) $ 22 2018 Termination benefits: Merger-related accruals $ 1 $ 9 $ (7 ) $ — $ 3 Comprehensive Business Review 4 — (4 ) — — Lease and contract obligations, accruals for facilities closures and other costs: Merger-related accruals 18 5 (13 ) — 10 Comprehensive Business Review 9 6 (10 ) — 5 Total $ 32 $ 20 $ (34 ) $ — $ 18 (a) Represents reclassification of operating lease obligations associated with facility closures to Operating lease ROU assets in the Consolidated Balance Sheet in accordance with the new lease accounting standard. The short-term and long-term components of these liabilities are included in Accrued expenses and other current liabilities and Deferred income taxes and other long-term liabilities, respectively, in the Consolidated Balance Sheets. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 28, 2019 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 4. REVENUE RECOGNITION PRODUCTS AND SERVICES REVENUE The following table provides information about disaggregated revenue by Division, and major products and services categories. 2019 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,961 $ 1,670 $ — $ 16 $ 4,647 Technology 1,236 1,702 271 2 3,211 Furniture and other 750 421 — 5 1,176 Services Technology — 29 709 (14 ) 724 Copy, print, and other 332 541 14 2 889 Total $ 5,279 $ 4,363 $ 994 $ 11 $ 10,647 2018 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,942 $ 1,753 $ — $ 10 $ 4,705 Technology 1,307 1,938 233 (7 ) 3,471 Furniture and other 725 414 — 7 1,146 Services Technology 1 28 843 (4 ) 868 Copy, print, and other 307 508 10 — 825 Total $ 5,282 $ 4,641 $ 1,086 $ 6 $ 11,015 2017 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,805 $ 1,801 $ — $ 7 $ 4,613 Technology 1,360 2,155 34 1 3,550 Furniture and other 678 473 — 6 1,157 Services Technology — 38 119 — 157 Copy, print, and other 265 495 3 — 763 Total $ 5,108 $ 4,962 $ 156 $ 14 $ 10,240 Products revenue includes the sale of: • Supplies such as paper, writing instruments, office supplies, cleaning and breakroom items; • Technology related products such as toner and ink, printers, computers, tablets and accessories, and electronic storage; and • Furniture and other products such as desks, seating, and luggage. The Company sells its supplies, furniture and other products through its Business Solutions and Retail Divisions, and its technology products through all three Divisions. Customers can purchase products through the Company’s call centers, electronically through its Internet websites, or through its retail stores. Revenues from supplies, technology, and furniture and other product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. Furniture and other products also include arrangements where customers can make special furniture interior design and installation orders that are customized to their needs. The performance obligations related to these arrangements are satisfied over time. Services revenue includes the sale of: • Technology service offerings provided through the Company’s CompuCom Division, such as technology lifecycle management, end user computing and collaboration, service desk, remote technology monitoring and management, and IT workforce solutions, as well as technology support services offerings provided in the Company’s retail stores, such as installation and repair; and • Copy, print, and other service offerings such as managed print and fulfillment services, product subscriptions, and sales of third party software, gift cards, warranties, remote support as well as rental income on operating lease arrangements where the Company conveys to its customers the right to use devices and other equipment for a stated period. The largest offering in the service technology category is end user computing, which provides on-site services to assist corporate end users with their information technology needs. Services are either billed on a rate per hour or per user, or on a fixed monthly retainer basis. For the majority of technology service offerings contracts, the Company has the right to invoice the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date and as such the Company recognizes revenue based on the amount billable to the customer in accordance with the practical expedient provided by the current revenue guidance. Substantially all of the Company’s other service offerings are satisfied at a point in time and revenue is recognized as such. The largest other service offering is copy and print services, which includes printing, copying, and digital imaging. The majority of copy and print services are fulfilled through retail stores and the related performance obligations are satisfied within a short period of time (generally within the same day). REVENUE RECOGNITION AND SIGNIFICANT JUDGMENTS Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company is entitled to receive in exchange for those products or services. For product sales, transfer of control occurs at a point in time, typically upon delivery to the customer. For service offerings, the transfer of control and satisfaction of the performance obligation is either over time or at a point in time. When performance obligations are satisfied over time, the Company evaluates the pattern of delivery and progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Revenue is recognized net of allowance for returns and net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling costs are considered fulfillment activities and are recognized within the Company’s cost of goods sold. Contracts with customers could include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Determining the standalone selling price also requires judgment. The Company did not have significant revenues generated from such contracts in 2019 and 2018. Products are generally sold with a right of return and the Company may provide other incentives, such as rebates and coupons, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company estimates returns and incentives at contract inception and includes the amount in the transaction price for which significant reversal is not probable. These estimates are updated at the end of each reporting period as additional information becomes available. The Company offers a customer loyalty program that provides customers with rewards that can be applied to future purchases or other incentives. Loyalty rewards are accounted for as a separate performance obligation and a deferred liability is recorded in the amount of the transaction price allocated to the rewards, inclusive of the impact of estimated breakage. The estimated breakage of loyalty rewards is based on historical redemption rates experienced under the loyalty program. Revenue is recognized when the loyalty rewards are redeemed or expire. As of both December 28, 2019 and December 29, 2018, the Company had $12 million of deferred liability related to the loyalty program, which is included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. The Company recognizes revenue in certain circumstances before product delivery occurs (commonly referred to as bill-and-hold transactions). Revenue from bill-and-hold transactions is recognized when all specific requirements for transfer of control under a bill-and-hold arrangement have been met which include, among other things, a request from the customer that the product be held for future scheduled delivery. For these bill-and-hold arrangements, the associated product inventory is identified separately as belonging to the customer and is ready for physical transfer. CONTRACT BALANCES The timing of revenue recognition may differ from the timing of invoicing to customers. A receivable is recognized in the period the Company delivers goods or provides services, and is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is also recognized for unbilled services where the Company’s right to consideration is unconditional, and is recorded based on an estimate of time and materials. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that the contracts do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services. The Company receives payments from customers based upon contractual billing schedules. Contract assets include amounts related to deferred contract acquisition costs (refer to the section “Costs to Obtain a Contract” below) and if applicable, the Company’s conditional right to consideration for completed performance under a contract. The short and long-term components of contract assets in the table below are included in Prepaid expenses and other current assets, and Other assets, respectively, in the Consolidated Balance Sheets. Contract liabilities include payments received in advance of performance under the contract, which are recognized as revenue when the performance obligation is completed under the contract, as well as accrued contract acquisition costs, liabilities related to the Company’s loyalty program and gift cards. The short and long-term components of contract liabilities in the table below are included in Accrued expenses and other current liabilities, and Deferred income taxes and other long-term liabilities, respectively, in the Consolidated Balance Sheets. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: December 28, December 29, (In millions) 2019 2018 Trade receivables, net $ 599 $ 655 Short-term contract assets 23 22 Long-term contract assets 17 17 Short-term contract liabilities 52 52 Long-term contract liabilities 1 1 In 2019 and 2018, the Company did not have any contract assets related to conditional rights. The Company recognized revenues of $27 A majority of the purchase orders and statements of work related to contracts with customers require delivery of the product or service within one year or less. For certain service contracts that exceed one year, the Company recognizes revenue at the amount to which it has the right to invoice for services performed. Accordingly, the Company has applied the optional exemption provided by the new revenue recognition standard relating to unsatisfied performance obligations and does not disclose the value of unsatisfied performance obligations for its contracts. COSTS TO OBTAIN A CONTRACT The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain rebate incentive programs meet the requirements to be capitalized. These costs are periodically reviewed for impairment, and are amortized on a straight-line basis over the expected period of benefit. As of December 28, 2019 and December 29, 2018, capitalized acquisition costs amounted to $40 million and $39 million, respectively, and are reflected in short-term contract assets and long-term contract assets in the table above. In 2019 and 2018, amortization expense was $35 million and $33 million, respectively. The Company had no asset impairment charges related to contract assets in the periods presented herein. |
SEGMENT INFORMATION
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 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6. INCOME TAXES The components of income from continuing operations before income taxes consisted of the following: (In millions) 2019 2018 2017 United States $ 116 $ 138 $ 295 Foreign 30 20 4 Total income from continuing operations before income taxes $ 146 $ 158 $ 299 The income tax expense related to income from continuing operations consisted of the following: (In millions) 2019 2018 2017 Current: Federal $ (64 ) $ 3 $ 4 State 3 7 3 Foreign 8 9 9 Deferred: Federal 84 27 152 State 11 13 (17 ) Foreign 5 — 2 Total income tax expense $ 47 $ 59 $ 153 The following is a reconciliation of income taxes at the U.S. Federal statutory rate to the provision for income taxes: (In millions) 2019 2018 2017 Federal tax computed at the statutory rate $ 30 $ 33 $ 105 State taxes, net of Federal benefit 6 10 12 Foreign income taxed at rates other than Federal 1 5 2 Increase (decrease) in valuation allowance 9 (3 ) (36 ) Non-deductible Merger expenses — — 3 Other non-deductible expenses and settlements 3 10 — Tax basis differences in investment in subsidiaries — (4 ) — Non-taxable income and additional deductible expenses (4 ) (1 ) (4 ) Change in unrecognized tax benefits 2 1 — Impact of Tax Reform — — 68 Impact of stock compensation shortfall — 5 3 Repatriation of foreign earnings — — 3 Other items, net — 3 (3 ) Income tax expense $ 47 $ 59 $ 153 The Company’s effective tax rate of 32% in 2019 differs from the statutory rate of 21% primarily due to the impact of state taxes and certain nondeductible items, the recognition of valuation allowances, and the Company’s mix of income and losses across U.S. and non-U.S. jurisdictions. The Company’s effective tax rate of 37% in 2018 reflected the same Federal marginal tax rate of 21% and the impact of the Company’s mix of income and losses across US and non-US jurisdictions. In addition, the 2018 rate was impacted by several discrete items including the impact of a potentially nondeductible legal settlement, the impact of excess tax deficiencies associated with stock-based compensation awards, state taxes, and certain other nondeductible items. The Company completed several acquisitions and dispositions, some of which resulted in the recognition of gain or loss for tax purposes, which differed from the amount recognized for GAAP purposes. The Company’s effective tax rate in 2017 varied considerably as a result of three primary factors: 1) the impact of the enactment of the Tax Cuts and Jobs Act; 2) the Company’s mix of income and losses across U.S. and non-U.S. jurisdictions; and 3) the reduction of previously established valuation allowances against deferred tax assets. As a result, The Company’s effective tax rates were 32% in 2019, 37% in 2018 and 51% in 2017. As a result of the Tax Cuts and Jobs Act, the Alternative Minimum Tax (AMT) for corporations was repealed. In addition, any unused AMT Credits that remain unused for tax years after 2017 can be refunded up to 50% of the unused balance in any tax year. For the 2018 tax year, the Company received a cash refund of $ 44 million of its credits in the fourth quarter. For 2019, it is anticipated that $ 22 million will be available for refund. These amounts are reflected as a reduction of deferred tax assets. It is expected that the Company will recognize a large deferred tax liability related to the maturity of the Timber Note Receivable. The entire deferred gain will be recognized resulting in significant taxable income in the first quarter of 2020. It is expected to be largely offset by available capital loss carryforwards, both Federal and state, state net operating losses, and any remaining Federal credits. As a result, the majority of the Company’s remaining AMT credits will be utilized at that time. During 2019, the Company recognized certain tax assets that more likely than not will not be realized and, as a result, recorded a valuation allowance against those assets. During the third quarter of 2017, the Company concluded that it was more likely than not that a benefit from a significant portion of the Company’s U.S. Federal and state deferred tax assets would not be realized. This conclusion was based on detailed evaluations of all available positive and negative evidence and the weight of such evidence, the current financial position and results of operations for the current and preceding years, and the expectation of continued earnings. The Company determined that its U.S. Federal and state valuation allowance should be reduced by approximately $40 million in 2017 as an adjustment to the estimated annual effective tax rate. The Company continues to have a U.S. valuation allowance for certain U.S. Federal credits and state tax attributes, which relate to deferred tax assets that require either certain types of income or for income to be earned in certain jurisdictions in order to be realized. The Company will continue to assess the realizability of its deferred tax assets in the U.S. and remaining foreign jurisdictions in future periods. Changes in pretax income projections could impact this evaluation in future periods. The Company operates in several foreign jurisdictions with income tax rates that differ from the U.S. Federal statutory rate, which resulted in an expense for 2019 and 2018 presented in the effective tax rate reconciliation. Significant foreign tax jurisdictions for which the Company realized such expense are Canada and Puerto Rico after the sale of the other international operations. The components of deferred income tax assets and liabilities consisted of the following: December 28, December 29, (In millions) 2019 2018 U.S. and foreign loss carryforwards $ 240 $ 253 Deferred rent credit — 35 Operating lease right-of-use assets 385 — Pension and other accrued compensation 53 65 Accruals for facility closings 2 5 Inventory 9 11 Self-insurance accruals 19 21 Deferred revenue 16 17 U.S. and foreign income tax credit carryforwards 168 227 Allowance for bad debts 4 4 Accrued expenses 21 20 Basis difference in fixed assets 31 30 Gross deferred tax assets 948 688 Valuation allowance (151 ) (142 ) Deferred tax assets 797 546 Internal software 10 11 Installment gain on sale of timberlands 168 172 Operating lease liabilities 356 — Intangibles 96 96 Undistributed foreign earnings 4 4 Deferred tax liabilities 634 283 Net deferred tax assets $ 163 $ 263 As of December 28, 2019, and December 29, 2018, deferred income tax liabilities amounting to $20 million in both periods are included in deferred income taxes and other long-term liabilities. As of December 28, 2019, the Company has utilized all of its U.S. Federal net operating loss (“NOL”) carryforwards with the exception of the NOLs acquired as part of the CompuCom acquisition. The Company has $60 million of Federal, $80 million of foreign and $1.2 billion of state NOL carryforwards. Of the Federal NOL carryforwards, none expired in 2019 with the remainder expiring between 2020 and 2033. Of the foreign NOL carryforwards, $4 million will expire in 2020 and the remaining balance will expire between 2024 and 2033. Of the state NOL carryforwards, $68 million will expire in 2020, and the remaining balance will expire between 2021 and 2039. The Company has Federal capital loss carryover available to offset future capital gains generated of $604 million which expires in 2021, 2022 and 2023, and state capital loss carryforwards of $485 million which expire in 2021, 2022 and 2023. The Company also has $22 million of U.S. Federal alternative minimum tax credit carryforwards, which can be used to reduce future regular federal income tax, if any, over an indefinite period. In addition, due to the enactment of new legislation, a portion of the credits can be refunded. Additionally, the Company has $127 million of U.S. Federal tax credit carryforwards, which expire between 2020 and 2028, and $14 million of state and foreign tax credit carryforwards, $2 million of which can be carried forward indefinitely, and the remainder of which will expire between 2023 and 2028. As of December 28, 2019, the Company has not triggered an “ownership change” as defined in Internal Revenue Code Section 382 or other similar provisions that would limit the use of NOL and tax credit carryforwards. However, the Company did acquire certain NOLs and other credit carryforwards that may be limited as a result of the purchase. Furthermore, if the Company were to experience an ownership change in future periods, its deferred tax assets and income tax expense may be negatively impacted. Deferred income taxes have been provided on all undistributed earnings of foreign subsidiaries. The following summarizes the activity related to valuation allowances for deferred tax assets: (In millions) 2019 2018 2017 Beginning balance $ 142 $ 144 $ 140 Additions, charged to expense 9 — 4 Acquired via Merger — — 1 Impact of Tax Reform — — 40 Reductions — (2 ) (41 ) Ending balance $ 151 $ 142 $ 144 During 2019, the Company established valuation allowances on certain deferred tax assets related to certain credits and carryforwards that are not expected to be utilized prior to expiration. During 2018, the Company released a small portion of its valuation allowance related to certain credits that are now expected to be utilized prior to expiration. As of December 28, 2019, the Company continues to have a U.S. valuation allowance for certain U.S. Federal credits and certain state tax attributes, which relate to deferred tax assets that require either certain types of income or for income to be earned in certain jurisdictions in order to be realized. The Company will continue to assess the realizability of its deferred tax assets in the U.S. and remaining foreign jurisdictions in future periods. Changes in pretax income projections could impact this evaluation in future periods. The Company’s total valuation allowance increased during 2017 due to several factors. A portion of the deferred assets acquired as part of the CompuCom deal had existing valuation allowances that increased the Company’s balance. The Company recognized a net income tax benefit of $36 million associated with the reduction of valuation allowances in the U.S. Federal and state jurisdictions offset by the establishment of valuation allowances in the U.S. and certain jurisdictions in which the Company does not expect to be profitable. As a result of enacted legislation, the Company reestablished a valuation allowance of $40 million on certain of its Federal credits offset by a reduction in the required valuation allowance due to the statutory rate change. The following table summarizes the activity related to unrecognized tax benefits: (In millions) 2019 2018 2017 Beginning balance $ 20 $ 20 $ 14 Increase related to current year tax positions 2 — — Increase related to merger — — 8 Increase (decrease) related to prior year tax positions — 1 (1 ) Decrease related to settlements with taxing authorities — (1 ) (1 ) Ending balance $ 22 $ 20 $ 20 Included in the balance of $22 million at December 28, 2019, is $10 million of unrecognized tax benefits that, if recognized, would impact the effective tax rate. The other $12 million primarily results from tax positions that, if sustained, would be offset by changes in deferred tax assets. It is anticipated that $2 million in tax positions will be resolved within the next 12 months, which would decrease the Company’s balance of unrecognized tax benefits. Additionally, the Company anticipates that it is reasonably possible that new issues will be raised or resolved by tax authorities that may require changes to the balance of unrecognized tax benefits; however, an estimate of such changes cannot be reasonably made. As part of the CompuCom acquisition, the Company’s unrecognized tax benefits increased by $8 million in 2017. Approximately $3 million of the unrecognized tax benefit is currently covered under an indemnification agreement with a previous owner of CompuCom. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in the provision for income taxes. The Company recognized immaterial interest and penalty expense in 2019, 2018 and 2017. The Company had approximately $7 million accrued for the payment of interest and penalties as of December 28, 2019, including $1 million acquired as part of the CompuCom merger, which is not included in the table above. The Company files a U.S. Federal income tax return and other income tax returns in various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal and state and local income tax examinations for years before 2017 and 2014, respectively. The acquired OfficeMax U.S. consolidated group is no longer subject to U.S. Federal income tax examination and with few exceptions, is no longer subject to U.S. state and local income tax examinations for years before 2014. The U.S. Federal income tax returns for 2017 and 2018 are currently under review. Generally, the Company is subject to routine examination for years 2013 and forward in its international tax jurisdictions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 7. EARNINGS PER SHARE The following table presents the calculation of net earnings per common share — basic and diluted: (In millions, except per share amounts) 2019 2018 2017 Basic Earnings Per Share Numerator: Net income from continuing operations $ 99 $ 99 $ 146 Income from discontinued operations, net of tax — 5 35 Net income $ 99 $ 104 $ 181 Denominator: Weighted-average shares outstanding 545 553 522 Basic earnings per share: Continuing operations $ 0.18 $ 0.18 $ 0.28 Discontinued operations — 0.01 0.07 Net basic earnings per share $ 0.18 $ 0.19 $ 0.35 Diluted Earnings Per Share Numerator: Net income from continuing operations $ 99 $ 99 $ 146 Income from discontinued operations, net of tax — 5 35 Net income $ 99 $ 104 $ 181 Denominator: Weighted-average shares outstanding 545 553 522 Effect of dilutive securities: Stock options and restricted stock 8 11 13 Diluted weighted-average shares outstanding 553 564 535 Diluted earnings per share Continuing operations $ 0.18 $ 0.18 $ 0.27 Discontinued operations — 0.01 0.06 Net diluted earnings per share $ 0.18 $ 0.19 $ 0.34 Awards of options and nonvested shares representing an additional 9 million, 5 million and 4 million shares of common stock were outstanding for the fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 8. PROPERTY AND EQUIPMENT Property and equipment consists of: December 28, December 29, (In millions) 2019 2018 Land $ 45 $ 53 Buildings 221 281 Computer software 653 588 Leasehold improvements 658 649 Furniture, fixtures and equipment 833 787 Construction in progress 49 70 2,459 2,428 Less accumulated depreciation (1,780 ) (1,665 ) Total $ 679 $ 763 The above table of property and equipment includes assets held under finance leases as follows: December 28, December 29, (In millions) 2019 2018 Buildings $ 40 $ 42 Furniture, fixtures and equipment 132 100 172 142 Less accumulated depreciation (120 ) (108 ) Total $ 52 $ 34 Depreciation expense was $118 million in 2019, $114 million in 2018 and $111 million in 2017. Included in computer software and construction in progress above are capitalized software costs of $653 million and $589 million at December 28, 2019 and December 29, 2018, respectively. The unamortized amounts of the capitalized software costs are $134 million and $118 million at December 28, 2019 and December 29, 2018, respectively. Amortization of capitalized software costs totaled $55 million, $46 million and $39 million in 2019, 2018 and 2017, respectively. Software development costs that do not meet the criteria for capitalization are expensed as incurred. Estimated future amortization expense related to capitalized software at December 28, 2019 is as follows: (In millions) 2020 $ 50 2021 39 2022 24 2023 14 2024 5 Thereafter 2 The weighted average remaining amortization period for capitalized software is 3 years. ASSETS HELD FOR SALE Certain facilities that were part of continuing operations but had been identified for closure through integration and other activities were accounted for as assets held for sale. Assets held for sale primarily consists of supply chain facilities and are presented in Prepaid expenses and other current assets in the Consolidated Balance Sheets. The Company recognized $25 million gain on disposition of assets held for sale during 2019, of which $ 19 million was included in Selling, general and administrative expenses and $ 6 million was included in Merger and restructuring expenses, net i n the Consolidated Statement of Operations. The assets held for sale activity in 201 9 is presented in the table below. (In millions) Balance as of December 29, 2018 $ 6 Additions 18 Dispositions (24 ) Balance as of December 28, 2019 $ — |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL The components of goodwill by segment are provided in the following table: (In millions) Business Solutions Division Retail Division CompuCom Division Total Balance as of December 29, 2018 $ 387 $ 78 $ 449 $ 914 Acquisitions 22 — — 22 Foreign currency rate impact — — 7 7 Purchase accounting adjustments 1 — — 1 Balance as of December 28, 2019 $ 410 $ 78 $ 456 $ 944 Additions to goodwill relate to acquisitions made during 2019, as well as the impact of purchase accounting adjustments associated with 2019 and 2018 acquisitions. As disclosed in Note 2, these adjustments were insignificant individually and in the aggregate to the Company’s Consolidated Financial Statements. Goodwill in the Business Solutions Division in the table above is net of $349 million of accumulated impairment loss recognized in 2008. The Company has historically performed its annual impairment assessment as of the first day of the third quarter each year. During 2019, the Company changed its annual impairment assessment date to the first day of fiscal month December, which is in the fourth quarter The Company’s third quarter 2019 annual goodwill impairment test was performed using a quantitative assessment that combined the income approach and the market approach valuation methodologies and resulted in the fair value of each reporting unit exceeding its respective carrying amount as of the assessment date, which was the first day of the quarter. The Company performed its fourth quarter 2019 annual goodwill impairment test using a quantitative assessment for its CompuCom reporting unit, and qualitative assessments for all other reporting units. Consistent with the third quarter test, the quantitative assessment combined the income approach and the market approach valuation methodologies and concluded that the fair value of the CompuCom reporting unit continues to exceed its carrying amount by a similar margin. For all other reporting units, the Company’s qualitative assessment indicated that it is not more likely than not that the fair values of the reporting units are less than their respective carrying amounts and no further impairment testing was performed on those reporting units. The Company is monitoring the performance of its Contract reporting unit, a component of the Business Solutions Division segment, and its CompuCom reporting unit, which both passed the quantitative assessments performed in 2019 with margins in excess of those determined in the Company’s 2018 annual assessment. The CompuCom Division reported an operating loss for year-to-date 2019 that was mainly driven by temporary shortfalls in revenue and profitability in the first quarter of 2019 and has improved its operational performance during the rest of 2019 INDEFINITE-LIVED INTANGIBLE ASSETS The Company had $82 million and $79 million of trade names as of December 28, 2019 and December 29, 2018, respectively, and $2 million of other indefinite-lived intangible assets as of December 29, 2018. These indefinite-lived intangible assets are included in Other intangible assets, net in the Consolidated Balance Sheets. The Company recognized $2 million and $1 million of impairment charges to its other indefinite-lived intangible assets, in 2019 and 2018, respectively. DEFINITE INTANGIBLE ASSETS Definite-lived intangible assets, which are included in Other intangible assets, net in the Consolidated Balance Sheets, are as follows: December 28, 2019 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 412 $ (109 ) $ 303 Technology 19 (16 ) 3 Total $ 431 $ (125 ) $ 306 December 29, 2018 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 408 $ (84 ) $ 324 Technology 19 (9 ) 10 Favorable leases 11 (4 ) 7 Total $ 438 $ (97 ) $ 341 Definite-lived intangible assets generally are amortized using the straight-line method. The remaining weighted average amortization periods for customer relationships and technology are 14 years and 0.5 years, respectively, and 14 years in the aggregate. Amortization of intangible assets was $31 million in 2019, $31 million in 2018 and $9 million in 2017. Intangible assets amortization expenses are included in the Consolidated Statements of Operations in Selling, general and administrative expenses. Estimated future amortization expense for the intangible assets is as follows: (In millions) 2020 $ 26 2021 24 2022 23 2023 20 2024 20 Thereafter 193 Total $ 306 Definite-lived intangible assets are reviewed whenever events and circumstances indicate the carrying amount may not be recoverable and the remaining useful lives are appropriate. No impairment charges were recognized during 2019 and 2018; impairment charges were $2 million in 2017. |
TIMBER NOTES_NON-RECOURSE DEBT
TIMBER NOTES/NON-RECOURSE DEBT | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
TIMBER NOTES/NON-RECOURSE DEBT | NOTE 10. TIMBER NOTES/NON-RECOURSE DEBT As part of the OfficeMax merger, the Company acquired credit-enhanced timber installment notes with an original principal balance of $818 million (the “Installment Notes”) that were part of the consideration received in exchange for OfficeMax’s sale of timberland assets in October 2004, and related non-recourse debt that OfficeMax issued under the structure of the timber note transactions in the amount of $735 million (the “Securitization Notes”). The Installment Notes and Securitization Notes were non-amortizing obligations bearing interest at 4.98% and 5.42%, respectively, and maturing on January 29, 2020 and October 31, 2019, respectively. During the third quarter of 2019, the Company, through a bankruptcy remote indirect subsidiary, entered into a term loan agreement to receive a $735 million loan on October 31, 2019 (the “Bridge Loan”) that was used to refinance the Securitization Notes. The Bridge Loan is also non-recourse to the Company, and is secured by the Installment Notes. The Bridge Loan incurred The Installment Notes are reported as Timber notes receivable, current maturities in the amount of $819 million at December 28, 2019 and Timber notes receivable in the amount of $842 million at December 29, 2018 in the Company’s Consolidated Balance Sheets, which represents the original principal amount of $818 million plus a fair value adjustment recorded through purchase accounting in connection with the merger. The premium is amortized under the effective interest method as a component of interest income through the maturity date. The Company received a net principal cash payment of $82.5 million upon maturity of the Installment Notes and the Bridge Loan on January 29, 2020, which were net settled as they were with the same third-party financial institution. In addition, |
DEBT
DEBT | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 11. DEBT Debt consists of the following: December 28, December 29, (In millions) 2019 2018 Recourse debt: Short-term borrowings and current maturities of long-term debt: Finance lease obligations $ 19 $ 17 Other current maturities of long-term debt 87 78 Total $ 106 $ 95 Long-term debt, net of current maturities: Term Loan, due 2022 $ 331 $ 406 Unamortized debt issuance cost and discount (13 ) (19 ) Term Loan, due 2022, net 318 387 Revenue bonds, due in varying amounts periodically through 2029 176 186 American & Foreign Power Company, Inc. 5% debentures, due 2030 15 14 Finance lease obligations 58 55 Other financing obligations 8 48 Total $ 575 $ 690 Non-recourse debt — Timber notes: Non-recourse debt, current maturities: Bridge Loan, due 2020 — Refer to Note 10 $ 735 $ — Non-recourse debt: 5.42% Securitization Notes, due 2019 — Refer to Note 10 — 735 Unamortized premium — 19 Total $ 735 $ 754 The Company was in compliance with all applicable financial covenants of existing loan agreements at December 28, 2019 . AMENDED CREDIT AGREEMENT On May 25, 2011, the Company entered into an Amended and Restated Credit Agreement with a group of lenders. Additional amendments to the Amended and Restated Credit Agreement have been entered into and were effective February 2012, March 2013, November 2013, May 2015, May 2016, December 2016, and November 2017 (the Amended and Restated Credit Agreement including all amendments is referred to as the “Amended Credit Agreement”). The Amended Credit Agreement provides for an asset based, multi-currency revolving credit facility of up to $1.2 billion (the “Facility”). The Amended Credit Agreement also provides that the Facility may be increased by up to $250 million, subject to certain terms and conditions, including obtaining increased commitments from existing or new lenders. The amount that can be drawn on the Facility at any given time is determined based on percentages of certain accounts receivable, inventory and credit card receivables (the “Borrowing Base”). The Facility includes a sub-facility of up to $200 million which is available to the Company and certain of the Company’s Canadian subsidiaries. Certain of the Company’s domestic subsidiaries guarantee the obligations under the Facility (the “Domestic Guarantors”). The Amended Credit Agreement also provides for a letter of credit sub-facility of up to $400 million, as well as a swingline loan sub-facility of up to $125 million to the Company. All loans borrowed under the Facility may be borrowed, repaid and reborrowed from time to time until the maturity date of May 13, 2021 as provided in the Amended Credit Agreement. All amounts borrowed under the Facility, as well as the obligations of the Domestic Guarantors, are secured by a first priority lien on the Company’s and such Domestic Guarantors’ accounts receivables, inventory, cash, cash equivalents and deposit. At the Company’s option, borrowings made pursuant to the Facility bear interest at either, (i) the alternate base rate (defined as the higher of the Prime Rate (as announced by the Agent), the Federal Funds Rate plus 1/2 of 1 The Amended Credit Agreement contains representations, warranties, affirmative and negative covenants, and default provisions which are conditions precedent to borrowing. The most significant of these covenants and default provisions include limitations in certain circumstances on acquisitions, dispositions, share repurchases and the payment of cash dividends. The Facility also includes provisions whereby if the global availability is less than $150 million, the Company’s cash collections go first to the agent to satisfy outstanding borrowings. Further, if total availability falls below $125 million, a fixed charge coverage ratio test is required. Any event of default that is not cured within the permitted period, including non-payment of amounts when due, any debt in excess of $25 million becoming due before the scheduled maturity date, or the acquisition of more than 40% of the ownership of the Company by any person or group, within the meaning of the Securities and Exchange Act of 1934, could result in a termination of the Facility and all amounts outstanding becoming immediately due and payable. At December 28, 2019, the Company had $920 million of available credit under the Facility based on the December 2019 Borrowing Base certificate. At December 28, 2019, no amounts were outstanding under the Facility. Letters of credit outstanding under the Facility totaled $65 million. There were no borrowings under the Facility during 2019. TERM LOAN In connection with the consummation of the acquisition of CompuCom, the Company entered into a credit agreement, dated as of November 8, 2017 (the “Term Loan Credit Agreement”), which provides for a $750 million term loan facility with a maturity date of November 8, 2022. The loans under the Term Loan Credit Agreement were issued with an original issue discount, at an issue price of 97.00%, and the Company incurred approximately $12 million of debt issuance costs. The loans under the Term Loan Credit Agreement incurred interest at a rate per annum equal to LIBOR plus 7.00% (or an alternative base rate plus 6.00%). The net proceeds of the loans under the Term Loan Credit Agreement were used to refinance certain indebtedness of CompuCom and to pay fees and expenses in connection with the acquisition of CompuCom and the related transactions. On November 21, 2018, the Company entered into the First Amendment (the “First Amendment”) to the Term Loan Credit Agreement to reduce the applicable interest rate from LIBOR plus 7.00% to LIBOR plus 5.25%. All other material provisions of the Term Loan Credit Agreement remain unchanged. In connection with the applicable interest rate reduction, the Company also made a voluntary repayment under the Term Loan Credit Agreement in the amount of $194 million. As a result, the Company recognized a $15 million loss on modification of debt, which consisted of the 1.00% prepayment premium and the write-off of unamortized deferred financing costs and original issue discount in an amount proportional to the term loan repaid. The Term Loan Credit Agreement is fully and unconditionally guaranteed by substantially all of the Company’s direct and indirect U.S. subsidiaries, including CompuCom and substantially all of its U.S. subsidiaries, subject to certain exceptions (collectively, the “Guarantors”). The obligations under the Term Loan Credit Agreement are secured by a security interest in substantially all of the assets of the Company and the Guarantors, subject to certain exceptions. Pursuant to an intercreditor agreement, the lenders and other secured parties under the Term Loan Credit Agreement have a first priority lien on certain assets constituting term priority collateral, and a second priority lien on certain assets constituting priority collateral for the Amended Credit Agreement. The loans under the Term Loan Credit Agreement amortize quarterly beginning March 15, 2018 at the rate of approximately $19 million per quarter, with the balance payable at maturity. The Term Loan Credit Agreement also requires mandatory prepayments in connection with certain asset sales as well as potential additional mandatory prepayments from specified percentages of the Company’s excess cash flow, subject to certain exceptions. The Term Loan Credit Agreement contains representations and warranties, events of default, and affirmative and negative covenants that are customary for similar financings and which include, among other things and subject to certain significant exceptions, restrictions on the ability to declare or pay dividends, repurchase common stock, create liens, incur additional indebtedness, make investments, dispose of assets, and merge or consolidate with any other person. In addition, a minimum liquidity maintenance covenant, requiring the Company and its restricted subsidiaries to retain unrestricted cash, cash equivalents, and availability under the Company’s Amended Credit Agreement in an aggregate amount of at least $400 million, will apply at any time that the Company’s senior secured leverage ratio under the agreement is greater than 1.50:1.00 as calculated quarterly. At December 28, 2019, the Company’s senior secured leverage ratio was 0.69:1.00 and the Company was in compliance with the agreement. OTHER SHORT- AND LONG-TERM DEBT As a result of the OfficeMax merger, the Company assumed the liability for the amounts in the table above related to the (i) Revenue bonds, due in varying amounts periodically through 2029, and (ii) American & Foreign Power Company, Inc. 5% debentures, due 2030. Also, the Company has finance lease obligations which relate to buildings and equipment, and various other financing obligations for the amounts included in the table above. SCHEDULE OF DEBT MATURITIES Aggregate annual maturities of recourse debt, finance lease, and other financing obligations are as follows: (In millions) 2020 $ 110 2021 99 2022 297 2023 94 2024 8 Thereafter 99 Total 707 Less interest on finance leases (13 ) Total 694 Less: Current portion (106 ) Unamortized debt issuance cost and discount (13 ) Total long-term debt $ 575 NON-RECOURSE DEBT Refer to Note 10 for further information on non-recourse debt. |
LEASES
LEASES | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 12. LEASES The Company leases retail stores and other facilities, vehicles, and equipment under operating lease agreements. Facility leases typically are for a fixed non-cancellable term with one or more renewal options. In addition to rent payments, the Company is required to pay certain variable lease costs such as real estate taxes, insurance and common-area maintenance on most of the facility leases. For leases beginning in 2019, the Company accounts for lease components (e.g., fixed payments including rent) and non-lease components (e.g., real estate taxes, insurance costs and common-area maintenance costs) as a single lease component. Certain leases contain provisions for additional rent to be paid if sales exceed a specified amount, though such payments have been immaterial during the periods presented, and are recognized as variable lease cost. The Company subleases certain real estate to third parties, consisting mainly of operating leases for space within the retail stores. The components of lease expense were as follows: (In millions) 2019 Finance lease cost: Amortization of right-of-use assets $ 17 Interest on lease liabilities 5 Operating lease cost 433 Short-term lease cost 7 Variable lease cost 121 Sublease income (3 ) Total lease cost $ 580 Supplemental cash flow information related to leases was as follows: (In millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 5 Operating cash flows from operating leases 489 Financing cash flows from finance leases 21 Right-of-use assets obtained in exchange for new finance lease liabilities 27 Right-of-use assets obtained in exchange for new operating lease liabilities 338 Supplemental balance sheet information related to leases was as follows: December 28, (In millions, except lease term and discount rate) 2019 Property and equipment, net $ 52 Operating lease right-of-use assets 1,413 Accrued expenses and other current liabilities 373 Short-term borrowings and current maturities of long-term debt 19 Long-term debt, net of current maturities 58 Operating lease liabilities 1,208 Weighted-average remaining lease term – finance leases 5 years Weighted-average remaining lease term – operating leases 5 years Weighted-average discount rate – finance leases 6.2 % Weighted-average discount rate – operating leases 6.6 % Maturities of lease liabilities as of December 28, 2019 were as follows: December 28, 2019 Operating Finance (In millions) Leases (1) Leases (2) 2020 $ 461 $ 23 2021 383 21 2022 313 17 2023 243 13 2024 167 7 Thereafter 336 9 1,903 90 Less imputed interest (322 ) (13 ) Total $ 1,581 $ 77 Reported as of December 28, 2019 Accrued expenses and other current liabilities $ 373 $ — Short-term borrowings and current maturities of long-term debt — 19 Long-term debt, net of current maturities — 58 Operating lease liabilities 1,208 — Total $ 1,581 $ 77 (1) Operating lease payments include $116 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $8 million of legally binding lease payments for 3 additional operating leases signed but not yet commenced. These operating leases will commence in fiscal year 2020 with lease terms of 10 years. (2) Finance lease payments include $17 million related to options to extend lease terms that are reasonably certain of being exercised. Adoption of the new lease accounting standard using the alternative transition method required the Company to provide relevant disclosures in accordance with ASC 840, Leases for all prior periods presented. The table below represents future minimum lease payments due under the non-cancelable portions of leases including facility leases that were accrued as store closure costs as of December 29, 2018. The table was updated from the version previously included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018 within the Notes to Consolidated Financial Statements to adjust for certain inconsistencies that management identified in the first quarter of fiscal year 2019 during the implementation of ASC 842, Leases. Specifically, the Company corrected the schedule to include additional lease commitments for option periods at the time of execution as opposed to the original extension date. December 29, (In millions) 2018 2019 $ 466 2020 374 2021 285 2022 214 2023 144 Thereafter 235 1,718 Less sublease income (11 ) Total $ 1,707 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 13. STOCKHOLDERS’ EQUITY PREFERRED STOCK As of December 28, 2019, and December 29, 2018, there were 1,000,000 shares of $0.01 par value preferred stock authorized; no shares were issued and outstanding. TREASURY STOCK In November 2018, the Board of Directors approved a new stock repurchase program of up to $100 million of its common stock effective January 1, 2019, which extends until the end of 2020 and may be suspended or discontinued at any time. In November 2019, the Board of Directors approved an increase in the authorization of the existing stock repurchase program of up to $200 million and extended the program through the end of 2021. The new authorization includes the remaining authorized amount under the existing stock repurchase program. The exact timing of share repurchases will depend on market conditions and other factors, and will be funded through available cash balances. Under the stock repurchase program, the Company purchased approximately 15 million shares of its common stock at a cost of $40 At December 28, 2019, there were 85 million common shares held in treasury. The Company’s Term loan and Amended Credit Facility includes certain covenants on restricted payments which include common stock repurchases, based on the Company’s liquidity and borrowing availability. The Company’s ability to repurchase its common stock in 2020 is subject to certain restrictions under the Term Loan Credit Agreement. Refer to Note 11 for additional information about the Term Loan Credit Agreement. DIVIDENDS ON COMMON STOCK During 2019, the Company paid quarterly cash dividends on its common stock in the amount of $0.025 per share for a total annual dividend distribution of $55 million. Dividends have been recorded as a reduction to additional paid-in capital as the Company is in an accumulated deficit position. Payment of dividends is permitted under the Company’s Amended Credit Agreement subject to minimum liquidity or fixed charge ratio requirements. Additionally, the Company’s Term Loan Credit Agreement contains certain restrictions on the Company’s ability to declare or pay dividends. Refer to Note 11 for additional information about the Amended Credit Agreement and the Term Loan Credit Agreement. ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss activity, net of tax, where applicable, is provided in the following tables: (In millions) Foreign Currency Translation Adjustments Change in Deferred Pension and Other Total Balance at December 29, 2018 $ (50 ) $ (49 ) $ (99 ) Other comprehensive income activity 21 18 39 Tax impact — (6 ) (6 ) Total other comprehensive income, net of tax, where applicable 21 12 33 Balance at December 28, 2019 $ (29 ) $ (37 ) $ (66 ) (In millions) Foreign Currency Translation Adjustments Change in Deferred Pension and Other Total Balance at December 30, 2017 $ (43 ) $ (35 ) $ (78 ) Other comprehensive loss activity before reclassifications (36 ) (23 ) (59 ) Reclassification of foreign currency translation adjustments realized upon disposal of business (a) 29 — 29 Tax impact — 9 9 Total other comprehensive loss, net of tax, where applicable (7 ) (14 ) (21 ) Balance at December 29, 2018 $ (50 ) $ (49 ) $ (99 ) (a) Relates to the disposition of the Company’s businesses in Australia and New Zealand in 2018. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 14. STOCK-BASED COMPENSATION LONG-TERM INCENTIVE PLANS During 2017, the Company’s Board of Directors adopted, and the shareholders approved, the Office Depot, Inc. 2017 Long-Term Incentive Plan (the “Plan”). The Plan replaces the Office Depot, Inc. 2015 Long-Term Incentive Plan, the Office Depot, Inc. 2007 Long-Term Incentive Plan, as amended, and the 2003 OfficeMax Incentive and Performance Plan (together, the “Prior Plans”). No additional awards were granted under the Prior Plans effective July 20, 2017, the effective date of the Plan. The Plan permits the issuance of stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and other equity-based incentive awards. Employee share-based awards are generally issued in the first quarter of the year. RESTRICTED STOCK AND RESTRICTED STOCK UNITS In 2019, the Company granted 7.4 million shares of restricted stock and restricted stock units to eligible employees which included 0.4 million shares granted to the Board of Directors. The Board of Directors are granted restricted stock units as part of their annual compensation which vest immediately on the grant date with distribution to occur following their separation from service with the Company. Restricted stock grants to Company employees typically vest annually over a three-year 2019 2018 2017 Shares Weighted Average Grant- Date Price Shares Weighted Average Grant- Date Price Shares Weighted Average Grant- Date Price Outstanding at beginning of year 14,964,187 $ 3.05 10,293,690 $ 4.33 12,747,791 $ 4.41 Granted 7,402,359 2.99 10,639,147 2.33 6,200,730 4.34 Vested (5,934,396 ) 3.09 (4,197,669 ) 4.37 (5,765,015 ) 4.61 Forfeited (2,484,591 ) 2.86 (1,770,981 ) 3.08 (2,889,816 ) 4.16 Outstanding at end of year 13,947,559 $ 3.04 14,964,187 $ 3.05 10,293,690 $ 4.33 As of December 28, 2019, there was approximately $21 million of total unrecognized compensation cost related to nonvested restricted stock. This expense, net of forfeitures, is expected to be recognized over a weighted-average period of approximately 1.8 years. Total outstanding shares of 13.9 million include 1.9 million granted to members of the Board of Directors that have vested but will not be issued until separation from service and PERFORMANCE-BASED INCENTIVE PROGRAM The Company has a performance-based long-term incentive program consisting of performance stock units. Payouts under this program are based on achievement of certain financial targets set by the Board of Directors and are subject to additional service vesting requirements, generally three years from the grant date. A summary of the activity in the performance-based long-term incentive program since inception is presented below. 2019 2018 2017 Shares Weighted Average Grant- Date Price Shares Weighted Average Grant- Date Price Shares Weighted Average Grant- Date Price Outstanding at beginning of year 19,133,969 $ 2.88 10,187,045 $ 4.42 13,742,384 $ 4.66 Granted 10,267,429 3.10 13,287,817 2.37 5,099,667 4.18 Vested (2,843,657 ) 3.31 (1,211,764 ) 9.45 (6,556,274 ) 4.59 Forfeited (6,616,631 ) 2.89 (3,129,129 ) 3.12 (2,098,732 ) 4.67 Outstanding at end of year 19,941,110 $ 2.91 19,133,969 $ 2.88 10,187,045 $ 4.42 As of December 28, 2019, there was approximately $29 million of total unrecognized compensation expense related to the performance-based long-term incentive program. This expense, net of forfeitures, is expected to be recognized over a weighted-average period of approximately 1.9 years. Forfeitures in the table above include adjustments to the share impact of anticipated performance achievement. Of the 19.9 million shares outstanding at year end, the Company estimates that 19.9 million shares will vest. The total fair value of shares at the time they vested during 2019 was $10 million. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 28, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 15. EMPLOYEE BENEFIT PLANS PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS — NORTH AMERICA The Company has retirement obligations under OfficeMax’s U.S. pension plans. The Company sponsors these defined benefit pension plans covering certain terminated employees, vested employees, retirees and some active employees. In 2004 or earlier, OfficeMax’s pension plans were closed to new entrants and the benefits of eligible participants were frozen. Under the terms of these plans, the pension benefit for employees was based primarily on the employees’ years of service and benefit plan formulas that varied by plan. The Company’s general funding policy is to make contributions to the plans in amounts that are within the limits of deductibility under current tax regulations, and not less than the minimum contribution required by law. Additionally, under previous OfficeMax arrangements, the Company has responsibility for sponsoring retiree medical benefit and life insurance plans including plans related to operations in the U.S. and Canada (referred to as “Other Benefits” in the tables below). The type of retiree benefits and the extent of coverage vary based on employee classification, date of retirement, location, and other factors. All of these postretirement medical plans are unfunded. The Company explicitly reserves the right to amend or terminate its retiree medical and life insurance plans at any time, subject only to constraints, if any, imposed by the terms of collective bargaining agreements. Amendment or termination may significantly affect the amount of expense incurred. Obligations and Funded Status The following table provides a reconciliation of changes in the projected benefit obligation and the fair value of plan assets, as well as the funded status of the plans to amounts recognized on the Company’s Consolidated Balance Sheets. Accumulated benefit obligations exceed plan assets in all individual plans. Pension Benefits Other Benefits (In millions) 2019 2018 2019 2018 Changes in projected benefit obligation: Obligation at beginning of period $ 880 $ 979 $ 12 $ 14 Service cost 7 4 — — Interest cost 36 35 — 1 Assumption changes — — 1 (1 ) Actuarial (gain) loss 91 (51 ) — — Currency exchange rate change — — 1 (1 ) Benefits paid (108 ) (87 ) (1 ) (1 ) Obligation at end of period $ 906 $ 880 $ 13 $ 12 Change in plan assets: Fair value of plan assets at beginning of period $ 780 $ 908 $ — $ — Actual return (loss) on plan assets 159 (46 ) — — Employer contribution 2 5 1 1 Benefits paid (108 ) (87 ) (1 ) (1 ) Fair value of plan assets at end of period 833 780 — — Net liability recognized at end of period $ (73 ) $ (100 ) $ (13 ) $ (12 ) The following table shows the amounts recognized in the Consolidated Balance Sheets related to the Company’s North America defined benefit pension and other postretirement benefit plans as of year-ends: Pension Benefits Other Benefits (In millions) 2019 2018 2019 2018 Noncurrent assets $ — $ — $ — $ — Current liabilities (2 ) (2 ) (1 ) (1 ) Noncurrent liabilities (71 ) (98 ) (12 ) (11 ) Net amount recognized $ (73 ) $ (100 ) $ (13 ) $ (12 ) Components of Net Periodic Cost (Benefit) The components of net periodic cost (benefit) are as follows: Pension Benefits Other Benefits (In millions) 2019 2018 2017 2019 2018 2017 Service cost $ 7 $ 4 $ 6 $ — $ — $ — Interest cost 36 35 39 — 1 1 Expected return on plan assets (42 ) (43 ) (48 ) — — — Net periodic cost (benefit) $ 1 $ (4 ) $ (3 ) $ — $ 1 $ 1 Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) are as follows: Pension Benefits Other Benefits (In millions) 2019 2018 2017 2019 2018 2017 Accumulated other comprehensive loss (income) at beginning of year $ 35 $ (2 ) $ 38 $ (1 ) $ — $ (1 ) Net loss (gain) (26 ) 37 (40 ) 1 (1 ) 1 Accumulated other comprehensive loss (income) at end of year $ 9 $ 35 $ (2 ) $ — $ (1 ) $ — Less than $1 million of the accumulated other comprehensive loss is expected to be recognized as components of net periodic cost during 2020. Accumulated other comprehensive loss (income) as of year-ends 2019 and 2018 consist of net losses (gains). Assumptions The assumptions used in accounting for the Company’s plans are estimates of factors including, among other things, the amount and timing of future benefit payments. The following table presents the key weighted average assumptions used in the measurement of the Company’s benefit obligations as of year-ends: Other Benefits Pension Benefits United States Canada 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 3.26 % 4.31 % 3.71 % 2.80 % 3.90 % 3.30 % 3.10 % 3.90 % 3.40 % The following table presents the weighted average assumptions used in the measurement of net periodic benefit: Other Benefits Pension Benefits United States Canada 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 4.31 % 3.71 % 4.11 % 3.90 % 3.30 % 3.60 % 3.90 % 3.40 % 3.80 % Expected long-term rate of return on plan assets 5.44 % 5.28 % 5.76 % — % — % — % — % — % — % For pension benefits, the selected discount rates (which is required to be the rates at which the projected benefit obligations could be effectively settled as of the measurement date) are based on the rates of return for a theoretical portfolio of high-grade corporate bonds (rated AA- or better) with cash flows that generally match expected benefit payments in future years. In selecting bonds for this theoretical portfolio, the Company focuses on bonds that match cash flows to benefit payments and limit the concentration of bonds by issuer. To the extent scheduled bond proceeds exceed the estimated benefit payments in a given period, the yield calculation assumes those excess proceeds are reinvested at an assumed forward rate. The implied forward rate used in the bond model is based on the FTSE (formerly Citigroup) Pension Discount Curve as of the last day of the year. The selected discount rate for other benefits is from a discount rate curve matched to the assumed payout of related obligations. The expected long-term rates of return on plan assets assumptions are based on the weighted average of expected returns for the major asset classes in which the plans’ assets are held. Asset-class expected returns are based on long-term historical returns, inflation expectations, forecasted gross domestic product and earnings growth, as well as other economic factors. The weights assigned to each asset class are based on the Company’s investment strategy. The weighted average expected return on plan assets used in the calculation of net periodic pension cost for 2020 is 5.16%. Obligation and costs related to the Canadian retiree health plan are impacted by changes in trend rates. The following table presents the assumed healthcare cost trend rates used in measuring the Company’s postretirement benefit obligations at year-ends: 2019 2018 2017 Weighted average assumptions as of year-end: Healthcare cost trend rate assumed for next year 6.20 % 6.40 % 6.60 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2029 2029 2029 A 1% change in the assumed healthcare cost trend rates would impact operating income by less than $1 million. The Company reassessed the assumptions, including those related to mortality, to measure the North American pension and other postretirement benefit plan obligations at year end 2019, adopting the most applicable mortality tables and improvement factors released in 2019 by The Society of Actuaries’ Retirement Plan Experience Committee. As a result of this assumption change, pension and other postretirement benefit plan obligations increased by $17 million and less than $1 Plan Assets The allocation of pension plan assets by category at year-ends is as follows: 2019 2018 Cash 1 % 1 % Common collective trust funds 99 % 99 % 100 % 100 % The Employee Benefit Committee is responsible for establishing and overseeing the implementation of the investment policy for the Company’s pension plans. The investment policy is structured to optimize growth of the pension plan trust assets, while minimizing the risk of significant losses, in order to enable the plans to satisfy their benefit payment obligations over time. The Company uses a glide path investment strategy and Company contributions as its primary rebalancing mechanisms to maintain the asset class exposures within the guideline ranges established under the investment policy. In the second quarter of 2017, the Company reinvested substantially all of the assets attributable to the U.S. pension plans in common collective trust funds. The common collective trust funds are comprised of a diversified portfolio of investments across various asset classes, including U.S. and international equities and fixed-income securities. The common collective trust funds are valued at the net asset value (“NAV”) provided by the administrator of the fund. The net asset value is based on the value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. The investment policy for the pension plan assets allows for a broad range of asset allocations that permit the plans to de-risk in response to changes in funded position and market risks. The investment policy includes a general target asset allocation range of 27% to 37% equity securities and 63% to 73% fixed income securities. The allocation range varies to be more weighted to fixed income securities as funded status increases. Occasionally, the Company may utilize futures or other financial instruments to alter the pension trust’s exposure to various asset classes in a lower-cost manner than trading securities in the underlying portfolios. The following table presents the pension plan assets by level within the fair value hierarchy at year-ends. (In millions) Fair Value Measurements 2019 Asset Category Total Assets Measured at NAV (a) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan assets measured at net asset value: (a) Common collective trust funds: U.S. small and mid-cap equity securities $ 24 $ 24 $ — $ — $ — U.S. large cap equity securities 96 96 — — — International equity securities 138 138 — — — Corporate bonds 457 457 — — — Government securities 93 93 — — — Other fixed-income 4 4 — — — Cash 13 13 — — — Total common collective trust funds 825 825 — — — Total plan assets measured at net asset value 825 825 — — — Plan assets measured in the fair value hierarchy: Cash 8 — 8 — — Total plan assets measured in the fair value hierarchy 8 — 8 — — Total plan assets $ 833 $ 825 $ 8 $ — $ — (a) Fair values of Common collective trust funds are estimated using net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy in connection with the adoption of Accounting Standards Update (ASU) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). (In millions) Fair Value Measurements 2018 Asset Category Total Assets Measured at NAV (a) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan assets measured at net asset value: (a) Common collective trust funds: U.S. small and mid-cap equity securities $ 14 $ 14 $ — $ — $ — U.S. large cap equity securities 70 70 — — — International equity securities 135 135 — — — Corporate bonds 375 375 — — — Government securities 161 161 — — — Other fixed-income 7 7 — — — Cash 11 11 — — — Total common collective trust funds 773 773 — — — Total plan assets measured at net asset value 773 773 — — — Plan assets measured in the fair value hierarchy: Cash 7 — 7 — — Total plan assets measured in the fair value hierarchy 7 — 7 — — Total plan assets $ 780 $ 773 $ 7 $ — $ — (a) Fair values of Common collective trust funds are estimated using net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy in connection with the adoption of Accounting Standards Update (ASU) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Cash Flows Pension plan contributions include required statutory minimum amounts and, in some years, additional discretionary amounts. In 2019, the Company contributed $3 million to these pension plans. Pension contributions for the full year of 2020 are estimated to be $10 million. The Company may elect at any time to make additional voluntary contributions. Qualified pension benefit payments are paid from the assets held in the plan trust, while nonqualified pension and other benefit payments are paid by the Company. Anticipated benefit payments by year are as follows: (In millions) Pension Benefits Other Benefits 2020 $ 80 $ 1 2021 77 1 2022 74 1 2023 72 1 2024 69 1 Next five years 299 4 PENSION PLAN — U NITED K INGDOM The Company has a frozen defined benefit pension plan in the United Kingdom. Obligations and Funded Status The following table provides a reconciliation of changes in the projected benefit obligation, the fair value of plan assets and the funded status of the plan to amounts recognized on the Company’s Consolidated Balance Sheets. (In millions) 2019 2018 Changes in projected benefit obligation: Obligation at beginning of period $ 203 $ 249 Service cost — — Interest cost 6 6 Plan amendments — 2 Plan settlements — (7 ) Benefits paid (10 ) (5 ) Actuarial (gain) loss 31 (29 ) Currency translation 6 (13 ) Obligation at end of period 236 203 Changes in plan assets: Fair value of plan assets at beginning of period 282 313 Actual return (loss) on plan assets 29 (3 ) Company contributions 2 2 Plan settlements — (7 ) Benefits paid (10 ) (5 ) Currency translation 9 (18 ) Fair value of plan assets at end of period 312 282 Net asset recognized at end of period $ 76 $ 79 In the Consolidated Balance Sheets, the net funded amounts are classified as a non-current asset in the caption Other assets. Components of Net Periodic Benefit The components of net periodic benefit are presented below: (In millions) 2019 2018 2017 Service cost $ — $ — $ — Interest cost 6 6 6 Expected return on plan assets (7 ) (8 ) (11 ) Settlement gain — (1 ) — Net periodic pension benefit $ (1 ) $ (3 ) $ (5 ) Included in Accumulated other comprehensive income was deferred income of $8 million and $16 million in 2019 and 2018, respectively. Assumptions Assumptions used in calculating the funded status and net periodic benefit included: 2019 2018 2017 Expected long-term rate of return on plan assets 1.76 % 2.61 % 2.64 % Discount rate 2.10 % 3.00 % 2.60 % Inflation 2.90 % 3.10 % 3.10 % The long-term rate of return on assets assumption has been derived based on long-term UK government fixed income yields, having regard to the proportion of assets in each asset class. The funds invested in equities have been assumed to return 4.5% above the return on UK government securities of appropriate duration. A return equal to a 15 year AA bond index is assumed for funds invested in corporate bonds. Allowance is made for expenses of 0.17% of assets. Plan Assets The allocation of Plan assets is as follows: 2019 2018 Cash — % — % Equity securities 18 % 19 % Fixed-income securities 82 % 81 % Total 100 % 100 % A committee, comprised of representatives of the Company and of this plan, is responsible for establishing and overseeing the implementation of the investment policy for this plan. The plan’s investment policy and strategy are to ensure assets are available to meet the obligations to the beneficiaries and to adjust plan contributions accordingly. The plan trustees are also committed to reducing the level of risk in the plan over the long term, while retaining a return above that of the growth of liabilities. Matching investments are intended to provide a return similar to the increase in the plan liabilities. Growth investments are assets intended to provide a return in excess of the increase in liabilities. At December 28, 2019, the asset target allocation was in accordance with the investment strategy. Asset-class allocations within the ranges are continually evaluated based on expectations for future returns, the funded position of the plan and market risks. The following table presents the pension plan assets by level within the fair value hierarchy. (In millions) Fair Value Measurements 2019 Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 1 $ 1 $ — $ — Equity securities Developed market equity funds 8 8 — — Emerging market equity funds 4 4 — — Mutual funds real estate 18 — — 18 Mutual funds 25 — 25 — Total equity securities 55 12 25 18 Fixed-income securities UK debt funds 107 — 107 — Liability term matching debt funds 128 — 128 — Emerging market debt fund 1 — 1 — High yield debt 20 — 20 — Total fixed-income securities 256 — 256 — Total $ 312 $ 13 $ 281 $ 18 (In millions) Fair Value Measurements 2018 Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 1 $ 1 $ — $ — Equity securities Developed market equity funds 8 8 — — Emerging market equity funds 4 4 — — Mutual funds real estate 19 — — 19 Mutual funds 23 — 23 — Total equity securities 54 12 23 19 Fixed-income securities UK debt funds 91 — 91 — Liability term matching debt funds 115 — 115 — Emerging market debt fund 3 — 3 — High yield debt 18 — 18 — Total fixed-income securities 227 — 227 — Total $ 282 $ 13 $ 250 $ 19 The following is a reconciliation of the change in fair value of the pension plan assets calculated based on Level 3 inputs: (In millions) Total Balance at December 29, 2018 $ 19 Net sales (1 ) Balance at December 28, 2019 $ 18 Cash Flows Anticipated benefit payments for the European pension plan, at 2019 year-end exchange rates, are as follows: (In millions) Benefit Payments 2020 $ 11 2021 11 2022 12 2023 12 2024 12 Next five years 66 RETIREMENT SAVINGS PLANS The Company also sponsors defined contribution plans for most of its employees. Eligible Company employees may participate in the Office Depot, Inc. Retirement Savings Plans (a plan for U.S. employees and a plan for Puerto Rico employees). All of the Company’s defined contribution plans (the “401(k) Plans”) allow eligible employees to contribute a percentage of their salary, commissions and bonuses in accordance with plan limitations and provisions of Section 401(k) of the Internal Revenue Code and the Company makes partial matching contributions to each plan subject to the limits of the respective 401(k) Plans. Matching contributions are invested in the same manner as the participants’ pre-tax contributions. The 401(k) Plans also allow for a discretionary matching contribution in addition to the normal match contributions if approved by the Board of Directors. Office Depot and OfficeMax previously sponsored non-qualified deferred compensation plans that allowed certain employees, who were limited in the amount they could contribute to their respective 401(k) plans, to defer a portion of their earnings and receive a Company matching amount. Both plans are closed to new contributions. In connection with the acquisition of CompuCom, the Company assumed responsibility for sponsoring CompuCom’s defined contribution 401(k) matched savings plan (covering substantially all of the United States associates) and the defined contribution registered pension plan (covering substantially all of the Canadian associates). Compensation expense for the Company’s contributions to these retirement savings plans was $25 million in 2019, $26 million in 2018 and $21 million in 2017. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 16. FAIR VALUE MEASUREMENTS RECURRING FAIR VALUE MEASUREMENTS In accordance with GAAP, certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Company’s assets and liabilities that are adjusted to fair value on a recurring basis are money market funds that qualify as cash equivalents, and derivative financial instruments, which may be entered into to mitigate risks associated with changes in foreign currency exchange rates, fuel and other commodity prices and interest rates. Amounts associated with derivative instruments were not significant. NONRECURRING FAIR VALUE MEASUREMENTS In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis as required by GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company recognized asset impairment charges of $ $ The Company regularly reviews retail store assets for impairment indicators at the individual store level, as this represents the lowest level of identifiable cash flows. When indicators of impairment are present, a recoverability analysis is performed which considers the estimated undiscounted cash flows over the retail store’s remaining life and uses input from retail operations and accounting and finance personnel. These inputs include management’s best estimates of retail store-level sales, gross margins, direct expenses, exercise of future lease renewal options when reasonably certain to be exercised, and resulting cash flows, by their nature, include judgments about how current initiatives will impact future performance. The assumptions used within the recoverability analysis for the retail stores were updated to consider current quarter retail store operational results and formal plans for additional retail store closures. These assumptions reflected declining sales over the forecast period, and gross margin and operating cost assumptions that are consistent with recent actual results and consider plans for future initiatives. If the undiscounted cash flows of a retail store cannot support the carrying amount of its assets, the assets are impaired if necessary and written down to estimated fair value. The fair value of retail store assets is determined using a discounted cash flow analysis which uses Level 2 unobservable inputs that are corroborated by market data such as real estate broker’s opinions. Specifically, the analysis uses assumptions of potential rental rates for each retail store location which are based on market data for comparable locations. These estimated cash flows used in the 2019 impairment calculation were discounted at a weighted average discount rate of 7%. For the fourth quarter 2019 calculation, a 100 basis point decrease in next year sales combined with a 50 basis point decrease in next year gross margin would have increased the impairment by less than $1 million. Further, a 100 basis point decrease in sales for all future periods would increase the impairment by less than $1 million. The Company will continue to evaluate initiatives to improve performance and lower operating costs. To the extent that forward-looking sales and operating assumptions are not achieved and are subsequently reduced, additional impairment charges may result. However, at the end of 2019, the impairment recognized reflects the Company’s best estimate of future performance. OTHER FAIR VALUE DISCLOSURES The fair values of cash and cash equivalents, receivables, trade accounts payable and accrued expenses and other current liabilities approximate their carrying amounts because of their short-term nature. The following table presents information about financial instruments at the balance sheet dates indicated. December 28, December 29, 2019 2018 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Timber notes receivable $ 819 $ 819 $ 842 $ 835 Company-owned life insurance 91 91 91 91 Financial liabilities: Recourse debt: Term Loan, due 2022 393 409 463 490 Revenue bonds, due in varying amounts periodically through 2029 186 186 186 184 American & Foreign Power Company, Inc. 5% debentures, due 2030 15 14 14 14 Non-recourse debt — Timber notes 735 735 754 750 The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Timber notes receivable: Fair value is determined as the present value of expected future cash flows discounted at the current interest rate for loans of similar terms with comparable credit risk (Level 2 measure). The change in fair value of the Timber notes receivable as compared to the prior period herein presented is due to a change in the yield used to discount the future cash flows, and not a change in the expected future cash flows. • Company-owned life insurance: In connection with the 2013 OfficeMax merger, the Company acquired company owned life insurance policies on certain former employees. The fair value of the company-owned life insurance policies is derived using determinable net cash surrender value (Level 2 measure). • Recourse debt: Recourse debt, for which there were no transactions on the measurement date, was valued based on quoted market prices near the measurement date when available or by discounting the future cash flows of each instrument using rates based on the most recently observable trade or using rates currently offered to the Company for similar debt instruments of comparable maturities (Level 2 measure). • Non-recourse debt: Fair value is estimated by discounting the future cash flows of the instrument at rates currently available to the Company for similar instruments of comparable maturities (Level 2 measure). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 28, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17. COMMITMENTS AND CONTINGENCIES COMMITMENTS The Company has a paper purchase agreement with Boise White Paper, L.L.C. (“Boise Paper”) under which it agreed to purchase office paper from Boise Paper and Boise Paper has agreed to supply office paper to the Company, subject to the terms and conditions of the paper purchase agreement. Under the agreement, the Company has committed to purchase a portion of its paper product offering from Boise Paper. Purchases under the agreement were $541 INDEMNIFICATIONS Indemnification obligations may arise from the Asset Purchase Agreement between OfficeMax Incorporated, OfficeMax Southern Company, Minidoka Paper Company, Forest Products Holdings, L.L.C. and Boise Land & Timber Corp. The Company has agreed to provide indemnification with respect to a variety of obligations. These indemnification obligations are subject, in some cases, to survival periods, deductibles and caps. At December 28, 2019, the Company is not aware of any material liabilities arising from these indemnifications. Additionally, the Company retains certain guarantees in place with respect to the liabilities or obligations of the European Business and remains contingently liable for these obligations. However, the Purchaser must indemnify and hold the Company harmless for any losses in connection with these guarantees. The Company currently does not believe it is probable it would be required to perform under any of these guarantees or any of the underlying obligations. LEGAL MATTERS The Company is involved in litigation arising in the normal course of business. While, from time to time, claims are asserted that make demands for a large sum of money (including, from time to time, actions which are asserted to be maintainable as class action suits), the Company does not believe that contingent liabilities related to these matters (including the matters discussed below), either individually or in the aggregate, will materially affect the Company’s financial position, results of operations or cash flows. In addition, in the ordinary course of business, sales to and transactions with government customers may be subject to lawsuits, investigations, audits and review by governmental authorities and regulatory agencies, with which the Company cooperates. Many of these lawsuits, investigations, audits and reviews are resolved without material impact to the Company. While claims in these matters may at times assert large demands, the Company does not believe that contingent liabilities related to these matters, either individually or in the aggregate, will materially affect its financial position, results of operations or cash flows. In January 2017 and May 2017, the Consumer Protection Divisions of each of the Office of Attorney General, State of Washington ("Washington AG'') and the Office of Attorney General, State of Texas (''Texas AG''), respectively, each issued a Civil Investigative Demand (“CID”) to the Company requiring the Company to produce certain documents and materials and to answer certain interrogatories relating to PC Healthcheck, a software program manufactured by a third-party vendor and provided to the Company for its customers prior to December 31, 2016. In November 2019, the State of Washington, King County Superior Court entered a Consent Decree that resolved the State of Washington’s investigation into the PC Healthcheck product. Under the terms of the Consent Decree, wherein the Company neither admitted nor denied the Washington AG’s allegations (except as to the Court having jurisdiction over the matter), the Washington AG agreed to accept payment of $900,000. The settlement payment was paid in or about November 2019, ten (10) business days after final entry of the Consent Decree by the Court. The Consent Decree contains conditions similar to the program required under the Stipulation to Entry of Order for Permanent Injunction and Monetary Judgment entered on March 29, 2019 by the U.S. District Court for the Southern District of Florida as a result of a CID issued by the Federal Trade Commission in 2016. The Company continues to cooperate with the Texas AG with respect to its investigation. At this time, it is difficult to predict the timing, the likely outcome, and/or potential range of loss, if any, of the Texas state matters. In addition to the foregoing, OfficeMax is named a defendant in a number of lawsuits, claims, and proceedings arising out of the operation of certain paper and forest products assets prior to those assets being sold in 2004, for which OfficeMax agreed to retain responsibility. Also, as part of that sale, OfficeMax agreed to retain responsibility for all pending or threatened proceedings and future proceedings alleging asbestos-related injuries arising out of the operation of the paper and forest products assets prior to the closing of the sale. The Company has made provision for losses with respect to the pending proceedings. Additionally, as of December 28, 2019, the Company has made provision for environmental liabilities with respect to certain sites where hazardous substances or other contaminants are or may be located. For these liabilities, our estimated range of reasonably possible losses was approximately $10 million to $20 million. The Company regularly monitors its estimated exposure to these liabilities. As additional information becomes known, these estimates may change, however, the Company does not believe any of these OfficeMax retained proceedings are material to the Company’s financial position, results of operations or cash flows. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 28, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 18. DISCONTINUED OPERATIONS In the third quarter of 2016, the Company’s Board of Directors approved a plan to sell substantially all of the operations of the former International Division through four disposal groups (Europe, South Korea, Oceania and mainland China). Collectively, these dispositions represent a strategic shift that had a major impact on the Company’s operations and financial results and have been accounted for as discontinued operations. As of the end of fiscal 2018, the sale of the International Operations was complete, and there are no further discontinued operations in 2019. As part of the disposition of its European business operations, the Company retained responsibility for the frozen defined benefits pension plan in the United Kingdom, which is included in continuing operations. The sale and purchase agreement related to the disposition of the European business operations contains customary warranties of the Company and the purchaser, with the Company’s warranties limited to an aggregate of EUR 10 million. The Company monitors its estimated exposure to liabilities under the warranties under the sales and purchase agreement, and as of December 28, 2019, the Company believes it has made adequate provisions for its potential exposures related to these warranties. In addition, the Company retains certain guarantees in place with respect to the liabilities or obligations of the European Business and remains contingently liable for these obligations. However, the Purchaser must indemnify and hold the Company harmless for any losses in connection with these guarantees. The Company currently does not believe it is probable it would be required to perform under any of these guarantees or any of the underlying obligations. The major components of Discontinued operations, net of tax presented in the Consolidated Statements of Operations are presented below. (In millions) 2018 2017 Sales $ 115 $ 512 Cost of goods sold and occupancy costs 88 411 Operating expenses 21 102 Restructuring charges 1 2 Interest income — 1 Other expense, net (1 ) — Net (increase) reduction of loss on discontinued operations held for sale (1 ) 44 Net gain (loss) on sale of discontinued operations (4 ) 4 Income tax expense (benefit) (6 ) 11 Discontinued operations, net of tax $ 5 $ 35 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 19. QUARTERLY FINANCIAL DATA (UNAUDITED) (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Ended December 28, 2019* Net sales $ 2,769 $ 2,588 $ 2,782 $ 2,508 Gross profit 641 585 667 571 Operating income (loss) (1) 24 (15 ) 108 74 Net income (loss) 8 (24 ) 60 55 Net earnings (loss) per share (2) Basic $ 0.01 $ (0.04 ) $ 0.11 $ 0.10 Diluted $ 0.01 $ (0.04 ) $ 0.11 $ 0.10 * Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. (1) Includes Merger and restructuring expenses, net totaling $14 million, $69 million, $22 million and $11 million in the first, second, third and fourth quarters of 2019, respectively. ( 2 ) (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Ended December 29, 2018* Net sales $ 2,830 $ 2,628 $ 2,887 $ 2,670 Gross profit 667 596 686 602 Operating income (3) 77 48 105 24 Net income (loss) from continuing operations (4) 33 19 60 (14 ) Discontinued operations, net of tax 8 (3 ) — — Net income (loss) 41 16 60 (14 ) Basic earnings (loss) per share (5) Continuing operations $ 0.06 $ 0.03 $ 0.11 $ (0.02 ) Discontinued operations $ 0.01 $ — $ — $ — Net basic earnings per share $ 0.07 $ 0.03 $ 0.11 $ (0.02 ) Diluted earnings (loss) per share (5) Continuing operations $ 0.06 $ 0.03 $ 0.11 $ (0.02 ) Discontinued operations $ 0.01 $ — $ — $ — Net diluted earnings per share $ 0.07 $ 0.03 $ 0.11 $ (0.02 ) * Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. ( 3 ) Includes Merger and restructuring expenses, net totaling $17 million, $14 million, $14 million and $27 million in the first, second, third and fourth quarters of 2018, respectively. The fourth quarter of 2018 also includes asset impairments of $7 million and a legal expense of $25 million. ( 4 ) Includes a loss on debt modification of $15 million and a tax benefit of $4 million due to a book-to-tax basis difference related to the sale of Clearpath Holdings, LLC in the fourth quarter of 2018. ( 5 ) The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business: Office Depot, Inc. including its consolidated subsidiaries (“Office Depot” or the “Company”), is a leading provider of business services and supplies, products and technology solutions to small, medium and enterprise businesses, through a fully integrated business-to-business (“B2B”) distribution platform of 1,307 retail stores, online presence, and dedicated sales professionals and technicians. Through its banner brands Office Depot®, OfficeMax®, CompuCom® and Grand & Toy®, as well as others, the Company offers its customers the tools and resources they need to focus on starting, growing and running their business. The Company’s corporate headquarters is located in Boca Raton, FL, and its primary website is www.officedepot.com. At December 28, 2019, the Company had three reportable segments (or “Divisions”): Business Solutions Division, Retail Division and the CompuCom Division. |
Basis of Presentation | Basis of Presentation: The Consolidated Financial Statements of Office Depot include the accounts of all wholly owned and financially controlled subsidiaries prior to disposition. Also, the variable interest entities formed by OfficeMax in prior periods solely related to the Timber Notes and Non-recourse debt are consolidated because the Company is the primary beneficiary. Refer to Note 10 for additional information. The Company owns 88% of a subsidiary that formerly owned assets in Cuba, which were confiscated by the Cuban government in the 1960’s. Due to various asset restrictions, the fair value of this investment is not determinable, and no amounts are included in the Consolidated Financial Statements. Intercompany transactions have been eliminated in consolidation. In September 2016, the Company’s Board of Directors committed to a plan to sell substantially all of the Company’s International Division operations (the “International Operations”). Accordingly, those operations are presented herein as discontinued operations. The sale of the International Operations was complete as of June 30, 2018 and there were no remaining assets or liabilities of discontinued operations in the Consolidated Balance Sheets. Refer to Note 5 for additional information regarding our Divisions and operations in geographic areas and Note 18 for Discontinued Operations information. |
Fiscal Year | Fiscal Year: Fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. All years presented in the Consolidated Financial Statements consisted of 52 weeks. Certain subsidiaries, including CompuCom, operate on a calendar year basis; however, the reporting difference did not have a material impact in any period presented. |
Estimates and Assumptions | Estimates and Assumptions: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Business Combinations | Business Combinations: The Company applies the acquisition method of accounting for acquisitions where the Company is considered the accounting acquirer in accordance with ASC Topic 805, “Business Combinations” (“ASC 805”). The results of operations of acquired businesses are included in the Company’s consolidated results prospectively from the date of acquisition. The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquired entity generally based on their fair values at the acquisition date. Various valuation methodologies are used to estimate the fair value of assets acquired and liabilities assumed, including using a market participant perspective when applying cost, income and relief from royalty analyses, supplemented with market appraisals where appropriate. Significant judgments and estimates are required in preparing these fair value estimates. The excess of the fair value of purchase consideration over the fair value of the assets acquired, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired company and the Company and the value of the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses and post-acquisition restructuring costs are recognized separately from the business combination and are expensed as incurred. Refer to Note 2 for additional information. |
Foreign Currency | Foreign Currency: International operations in Canada, Mexico, India, Costa Rica and China use local currencies as their functional currency. Assets and liabilities are translated into U.S. dollars using the exchange rate at the balance sheet date. Revenues, expenses and cash flows are translated at average monthly exchange rates, or rates on the date of the transaction for certain significant items. Translation adjustments resulting from this process are recorded in Stockholders’ equity as a component of Accumulated other comprehensive income (loss). Foreign currency transaction gains or losses are recorded in the Consolidated Statements of Operations in Other income (expense), net or Cost of goods sold and occupancy costs, depending on the nature of the transaction. |
Cash and Cash Equivalents | Cash and Cash Equivalents: All short-term highly liquid investments with original maturities of three months or less from the date of acquisition are classified as cash equivalents. Amounts in transit from banks for customer credit card and debit card transactions are classified as cash. The banks process the majority of these amounts within two business days. Amounts not yet presented for payment to zero balance disbursement accounts of $25 million and $27 million at December 28, 2019 and December 29, 2018, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities. At December 28, 2019, cash and cash equivalents from continuing operations held outside the United States amounted to $190 million. |
Restricted Cash | Restricted Cash: Restricted cash consists primarily of short-term cash deposits having original maturity dates of twelve months or less that serve as collateral to certain of the Company’s letters of credit. Restricted cash is valued at cost, which approximates fair value. At December 28, 2019 and December 29, 2018, restricted cash amounted to $2 million and is included in Prepaid expenses and other current assets in the Consolidated Balance Sheets |
Receivables | Receivables: Trade receivables totaled $599 million and $655 million at December 28, 2019 and December 29, 2018, respectively, net of an allowance for doubtful accounts of $10 million in both periods, to reduce receivables to an amount expected to be collectible from customers. Exposure to credit risk associated with trade receivables is limited by having a large customer base that extends across many different industries and geographic regions. However, receivables may be adversely affected by an economic slowdown in the United States or internationally. No single customer accounted for more than 10% of total sales or receivables in 2019, 2018 or 2017. Other receivables were $225 million and $230 million at December 28, 2019 and December 29, 2018, respectively, of which $162 million and $183 million, respectively, are amounts due from vendors under purchase rebate, cooperative advertising and various other marketing programs. |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value and are reduced for inventory losses based on estimated obsolescence and the results of physical counts. The weighted average method is used throughout the Company to determine the cost of inventory. In-bound freight is included as a cost of inventories; cash discounts and certain vendor allowances that are related to inventory purchases are recorded as a product cost reduction. |
Income Taxes | Income Taxes: Income taxes are accounted for under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities attributable to differences between the carrying amounts and the tax bases of assets and liabilities and operating loss and tax credit carryforwards. Valuation allowances are recorded to reduce deferred tax assets to the amount believed to be more likely than not to be realized. The Company recognizes tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination. Interest related to income tax exposures is included in interest expense in the Consolidated Statements of Operations. Refer to Note 6 for additional information on income taxes. |
Property and Equipment | Property and Equipment: Property and equipment additions are recorded at cost. Depreciation and amortization is recognized over the estimated useful lives using the straight-line method. The useful lives of depreciable assets are estimated to be 15-30 years for buildings and 3-10 years for furniture, fixtures and equipment. Computer software is amortized over three years for common office applications, five years for larger business applications and seven years for certain enterprise-wide systems. Leasehold improvements are amortized over the shorter of the estimated economic lives of the improvements or the terms of the underlying leases, including renewal options considered reasonably assured. The Company capitalizes certain costs related to internal use software that is expected to benefit future periods. These costs are amortized using the straight-line method over the 3 to 7 year expected life of the software. Major repairs that extend the useful lives of assets are capitalized and amortized over the estimated use period. Routine maintenance costs are expensed as incurred. Refer to Note 8 for additional information on property and equipment. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill represents the excess of the purchase price of an acquired entity over the fair value of the net tangible and identifiable intangible assets acquired and liabilities assumed in a business combination. The Company reviews the carrying amount of goodwill at the reporting unit level on an annual basis, or more frequently, if events or changes in circumstances suggest that goodwill may not be recoverable. For those reporting units where events or change in circumstances indicate that potential impairment indicators exist, the Company performs a quantitative assessment to determine whether the carrying amount of goodwill can be recovered. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. When performing the annual goodwill impairment test, the Company may start with an optional qualitative assessment. As part of the qualitative assessment, the Company evaluates all events and circumstances, including both positive and negative events, in their totality, to determine whether it is not more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company bypasses the qualitative assessment, or if the qualitative assessment indicates that a quantitative analysis should be performed, the Company evaluates goodwill for impairment by comparing the fair value of a reporting unit to its carrying value, including the associated goodwill. The Company estimates the reporting unit’s fair value using discounted cash flow analysis and market-based evaluations, when available. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. The Company typically uses a combination of different Level 3 valuation approaches that are dependent on several significant estimates and assumptions related to forecasts of future revenues, cost of sales, expenses and the weighted-average cost of capital for each reporting unit. Any adverse change in these factors could have a significant impact on the recoverability of goodwill and could have a material impact on the Company’s Consolidated Financial Statements. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually. The Company evaluates its indefinite-lived intangible assets for impairment annually, or sooner if indications of possible impairment are identified. When performing the annual impairment test, the Company may first start with an optional qualitative assessment to determine whether it is not more likely than not that its indefinite-lived intangible assets are impaired. As part of a qualitative assessment, the Company evaluates relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. If the Company bypasses the qualitative assessment, or if the qualitative assessment indicates that a quantitative analysis should be performed, the Company evaluates its indefinite-lived intangible assets for impairment by comparing the fair value of the asset to its carrying amount. During the third quarter of 2019, the Company decided to change its annual goodwill and indefinite lived intangible assets impairment assessment date from the first day of the third quarter to the first day of fiscal month December. The change in measurement date represents a change in method of applying an accounting principle. This change was preferable because it aligned the Company’s impairment testing procedures with its annual business planning and budgeting process, which occurs in the fourth quarter of each year, and with the timing of the development of its multi-year strategic plan. This change in accounting principle related to the annual testing date did not delay, accelerate or avoid an impairment charge. This change was not applied retrospectively as it was impracticable to do so because retrospective application would have required application of significant estimates and assumptions with the use of hindsight. Accordingly, the change was applied prospectively. In addition, this change did not have a material impact on the Company’s Consolidated Financial Statements. Intangible assets determined to have finite lives are amortized on a straight-line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to the Company’s future cash flows. The Company periodically reviews its amortizable intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization or asset impairment. Refer to Note 9 for additional information on goodwill and other intangible assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: Long-lived assets with identifiable cash flows are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Retail store long-lived assets are regularly reviewed for impairment indicators. Impairment is assessed at the individual store level which is the lowest level of identifiable cash flows and considers the estimated undiscounted cash flows over the asset’s remaining life. If estimated undiscounted cash flows are insufficient to recover the investment, an impairment loss is recognized equal to the difference between the estimated fair value of the asset and its carrying value, net of salvage, and any costs of disposition. The fair value estimate is generally the discounted amount of estimated store-specific cash flows. |
Facility Closure and Severance Costs | Facility Closure and Severance Costs: Retail store performance is regularly reviewed against expectations and stores not meeting performance requirements may be closed. During the third quarter of 2016, the Company initiated a program to close up to 300 underperforming retail stores over a three-year Costs associated with facility closures, principally accrued lease costs, are recognized when the facility is no longer used in an operating capacity or when a liability has been incurred. Retail store assets, including operating lease right-of-use (“ROU”) assets, are also reviewed for possible impairment, or reduction of estimated useful lives. The Company recognizes charges or credits to adjust remaining closed facility accruals to reflect current expectations. Adjustments to facility closure costs are presented in the Consolidated Statements of Operations in Selling, general and administrative expenses if the related facility was closed as part of ongoing operations or in Merger and restructuring expenses, net, if the related facility was closed as part of a merger integration plan or restructuring plan. Refer to Note 3 for additional information on accrued expenses relating to closed facilities. The short-term and long-term components of this liability are included in Accrued expenses and other current liabilities and Deferred income taxes and other long-term liabilities, respectively, in the Consolidated Balance Sheets. Employee termination costs covered under written and substantive plans are accrued when probable and estimable and consider continuing service requirements, if any. Additionally, incremental one-time employee benefit costs are recognized when the key terms of the arrangements have been communicated to affected employees. Amounts are recognized when communicated or over the remaining service period, based on the terms of the arrangements. |
Accrued Expenses | Accrued Expenses: The major components of Accrued expenses and other current liabilities in the Consolidated Balance Sheets are tax liabilities, payroll and benefit accruals, customer rebates accruals and inventory receipts accruals. In addition, the December 28, 2019 Consolidated Balance Sheet includes the short-term portion of the Company’s operating lease liabilities. Accrued payroll and benefits were $150 million and $173 million at December 28, 2019 and December 29, 2018, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In developing its fair value estimates, the Company uses the following hierarchy: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 Significant unobservable inputs that are not corroborated by market data. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows or option pricing models using own estimates and assumptions or those expected to be used by market participants. The fair values of cash and cash equivalents, receivables, trade accounts payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. Refer to Note 16 for further fair value information. |
Revenue Recognition | Revenue Recognition: Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. For product sales, transfer of control occurs at a point in time, typically upon delivery to the customer. For service offerings, the transfer of control and satisfaction of the performance obligation is either over time or at a point in time. When performance obligations are satisfied over time, the Company evaluates the pattern of delivery and progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Revenue is recognized net of allowance for returns and net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling fees are included in Sales in the Consolidated Statements of Operations. Shipping and handling costs are considered fulfillment activities and are included in Cost of goods sold and occupancy costs in the Consolidated Statements of Operations. The Company recognizes sales, other than third-party software sales, on a gross basis when it is considered the primary obligor in the transaction and on a net basis when it is considered to be acting as an agent. The Company recognizes sales of third-party software on a net basis. The Company uses judgment in estimating sales returns, considering numerous factors such as historical sales return rates. The Company also records reductions to revenue for customer programs and incentive offerings including special pricing agreements, certain promotions and other volume-based incentives. A liability for future performance is recognized when gift cards are sold and the related revenue is recognized when gift cards are redeemed as payment for products or when the likelihood of gift card redemption is considered remote. Gift cards do not have an expiration date. The Company recognizes the estimated portion of the gift card program liability that will not be redeemed, or the breakage amount, in proportion to usage. PRODUCTS AND SERVICES REVENUE The following table provides information about disaggregated revenue by Division, and major products and services categories. 2019 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,961 $ 1,670 $ — $ 16 $ 4,647 Technology 1,236 1,702 271 2 3,211 Furniture and other 750 421 — 5 1,176 Services Technology — 29 709 (14 ) 724 Copy, print, and other 332 541 14 2 889 Total $ 5,279 $ 4,363 $ 994 $ 11 $ 10,647 2018 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,942 $ 1,753 $ — $ 10 $ 4,705 Technology 1,307 1,938 233 (7 ) 3,471 Furniture and other 725 414 — 7 1,146 Services Technology 1 28 843 (4 ) 868 Copy, print, and other 307 508 10 — 825 Total $ 5,282 $ 4,641 $ 1,086 $ 6 $ 11,015 2017 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,805 $ 1,801 $ — $ 7 $ 4,613 Technology 1,360 2,155 34 1 3,550 Furniture and other 678 473 — 6 1,157 Services Technology — 38 119 — 157 Copy, print, and other 265 495 3 — 763 Total $ 5,108 $ 4,962 $ 156 $ 14 $ 10,240 Products revenue includes the sale of: • Supplies such as paper, writing instruments, office supplies, cleaning and breakroom items; • Technology related products such as toner and ink, printers, computers, tablets and accessories, and electronic storage; and • Furniture and other products such as desks, seating, and luggage. The Company sells its supplies, furniture and other products through its Business Solutions and Retail Divisions, and its technology products through all three Divisions. Customers can purchase products through the Company’s call centers, electronically through its Internet websites, or through its retail stores. Revenues from supplies, technology, and furniture and other product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. Furniture and other products also include arrangements where customers can make special furniture interior design and installation orders that are customized to their needs. The performance obligations related to these arrangements are satisfied over time. Services revenue includes the sale of: • Technology service offerings provided through the Company’s CompuCom Division, such as technology lifecycle management, end user computing and collaboration, service desk, remote technology monitoring and management, and IT workforce solutions, as well as technology support services offerings provided in the Company’s retail stores, such as installation and repair; and • Copy, print, and other service offerings such as managed print and fulfillment services, product subscriptions, and sales of third party software, gift cards, warranties, remote support as well as rental income on operating lease arrangements where the Company conveys to its customers the right to use devices and other equipment for a stated period. The largest offering in the service technology category is end user computing, which provides on-site services to assist corporate end users with their information technology needs. Services are either billed on a rate per hour or per user, or on a fixed monthly retainer basis. For the majority of technology service offerings contracts, the Company has the right to invoice the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date and as such the Company recognizes revenue based on the amount billable to the customer in accordance with the practical expedient provided by the current revenue guidance. Substantially all of the Company’s other service offerings are satisfied at a point in time and revenue is recognized as such. The largest other service offering is copy and print services, which includes printing, copying, and digital imaging. The majority of copy and print services are fulfilled through retail stores and the related performance obligations are satisfied within a short period of time (generally within the same day). |
Cost of Goods Sold and Occupancy Costs | Cost of Goods Sold and Occupancy Costs: Cost of goods sold and occupancy costs include: - inventory costs (as discussed above); - outbound freight; - employee and non-employee receiving, distribution, and occupancy costs (rent), including depreciation, real estate taxes and common area costs, of inventory-holding and selling locations; and - identifiable employee-related costs associated with services provided to customers. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses: Selling, general and administrative expenses include amounts incurred related to expenses of operating and support functions, including: - employee payroll and benefits, including variable pay arrangements; - advertising; - store and field support; - executive management and various staff functions, such as information technology, human resources functions, finance, legal, internal audit, and certain merchandising and product development functions; - other operating costs incurred relating to selling activities; and - closed defined benefit pension and postretirement plans. Selling, general and administrative expenses are included in the determination of Division operating income to the extent those costs are considered to be directly or closely related to segment activity and through allocation of support costs. |
Merger and Restructuring Expenses, net | Merger and Restructuring Expenses, net: Merger and restructuring expenses, net in the Consolidated Statements of Operations includes charges and, where applicable, credits for costs such as acquisition related expenses, employee termination and retention, transaction and integration-related professional fees, facility closure costs, gains and losses on asset dispositions, and other incremental costs directly related to these activities. This presentation is used to separately identify these significant costs apart from expenses incurred to sell to and service the Company’s customers or that are more directly related to ongoing operations. Changes in estimates and accruals related to these activities are also reflected on this line. Merger and restructuring expenses, net are not included in the measure of Division operating income. Refer to Note 3 for additional information. |
Advertising | Advertising: Advertising expenses are charged to Selling, general and administrative expenses when incurred. Advertising expenses recognized were $249 million in 2019, $270 million in 2018 and $264 million in 2017. Prepaid advertising expenses were $6 million as of December 28, 2019, $5 million as of December 29, 2018 and $6 million as of December 30, 2017. |
Share-Based Compensation | Share-Based Compensation: Compensation expense for all share-based awards expected to vest is measured at fair value on the date of grant and recognized on a straight-line basis over the related service period. The fair value of restricted stock and restricted stock units, including performance-based awards, is determined based on the Company’s stock price on the date of grant. Share-based awards with market conditions, such as total shareholder return, are valued using a Monte Carlo simulation as measured on the grant date. |
Self-insurance | Self-insurance: Office Depot is primarily self-insured for workers’ compensation, auto and general liability and employee medical insurance programs. The Company has stop-loss coverage to limit the exposure arising from these claims. Self-insurance liabilities are based on claims filed and estimates of claims incurred but not reported. These liabilities are not discounted. |
Vendor Arrangements | Vendor Arrangements: The Company enters into arrangements with substantially all significant vendors that provide for some form of consideration to be received from the vendors. Arrangements vary, but some specify volume rebate thresholds, advertising support levels, as well as terms for payment and other administrative matters. The volume-based rebates, supported by a vendor agreement, are estimated throughout the year and reduce the cost of inventory and cost of goods sold during the year. This estimate is regularly monitored and adjusted for current or anticipated changes in purchase levels and for sales activity. Other promotional consideration received is event-based or represents general support and is recognized as a reduction of Cost of goods sold and occupancy costs or Inventories, as appropriate, based on the type of promotion and the agreement with the vendor. Certain arrangements meet the specific, incremental, identifiable criteria that allow for direct operating expense offset, but such arrangements are not significant. |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits: The Company sponsors certain closed U.S. and U.K. defined benefit pension plans, certain closed U.S. retiree medical benefit and life insurance plans, as well as a Canadian retiree medical benefit plan open to certain employees. The Company recognizes the funded status of its defined benefit pension, retiree medical benefit and life insurance plans in the Consolidated Balance Sheets, with changes in the funded status recognized primarily through accumulated other comprehensive income (loss), net of tax, in the year in which the changes occur. Actuarially-determined liabilities related to pension and postretirement benefits are recorded based on estimates and assumptions. Factors used in developing estimates of these liabilities include assumptions related to discount rates, rates of return on investments, healthcare cost trends, benefit payment patterns and other factors. The Company also updates periodically its assumptions about employee retirement factors, mortality, and turnover. Refer to Note 15 for additional details. |
Environmental and Asbestos Matters | Environmental and Asbestos Matters: Environmental and asbestos liabilities relate to acquired legacy paper and forest products businesses and timberland assets. The Company accrues for losses associated with these obligations when probable and reasonably estimable. These liabilities are not discounted. A receivable for insurance recoveries is recorded when probable. |
Leasing Arrangements | Leasing Arrangements: The Company conducts a substantial portion of its business in leased properties. The Company first determines whether an arrangement is a lease at inception. Once that determination is made, leasing arrangements are presented in the Consolidated Balance Sheet as follows: • Finance leases : o Property and equipment, net –leases which were referred to as capital leases under the old accounting standard; o Short-term borrowings and current maturities of long-term debt – short-term obligations to make lease payments arising from the finance lease; and o Long-term debt, net of current maturities – long-term obligations to make lease payments arising from the finance lease. • Operating leases : o ROU assets – the Company’s right to use the underlying asset for the lease term; o Accrued expenses and other current liabilities – short-term obligations to make lease payments arising from the operating lease; and o Operating lease liabilities – long-term obligations to make lease payments arising from the operating lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. As the rate implicit in the lease is not readily determinable for any of the leases, the Company has utilized its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The determination of the appropriate incremental borrowing rate requires management to use significant estimates and assumptions as to its credit rating, base rates and credit spread, and other management assumptions for the impact of collateral. The operating lease ROU asset also includes any lease payments made prior to commencement and excludes lease incentives and initial direct costs incurred. Certain leases include one or more options to renew, with renewal terms that can extend the lease from five to 25 years or more, which is generally at the Company’s discretion. Any option or renewal periods management believed were reasonably certain of being exercised are included in the lease term, and are used in calculating the operating lease ROU assets and lease liabilities. In addition, some of the Company’s leases contain escalation clauses. The Company recognizes rental expense for operating leases that contain predetermined fixed escalation clauses on a straight-line basis over the expected term of the lease. The Company has lease agreements with lease and non-lease components, for which it has made an accounting policy election to account for these as a single lease component. Refer to the “New Accounting Standards” section below for more information including the impact in the Consolidated Financial Statements relating to the adoption of the new lease accounting standard. |
New Accounting Standards | NEW ACCOUNTING STANDARDS Standards that are not yet adopted: Financial Instruments – Credit Losses : In June 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that modifies the measurement of expected credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The update will change the accounting for credit impairment by adding an impairment model that is based on expected losses rather than incurred losses. In July 2018, the FASB approved an amendment to the new guidance that provides transition relief to the adopting entities and allows for an election of the fair value option on certain financial instruments. This accounting standard update, as amended, is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company evaluated the impact of this new standard and believes the adoption will not have a material impact on its Consolidated Financial Statements. Cloud computing arrangements : In August 2018, the FASB issued an accounting standard update that provides guidance regarding the accounting for implementation costs in cloud computing arrangements. This accounting update is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. The Company evaluat ed the impact of this new standard and believes the adoption will not have a material impact on its Consolidated Financial Statements. Defined benefit plan : In August 2018, the FASB issued an accounting standard update that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This accounting update is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the impact of this new standard and believes the adoption will not have a material impact on its Consolidated Financial Statements. Standards that were adopted: Leases : In February 2016, the FASB issued an accounting standard update that requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The accounting treatment for finance leases and lessors remains relatively unchanged. The accounting standard update also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB approved an amendment to the new guidance that introduced an alternative modified retrospective transition approach granting companies the option of using the effective date of the new standard as the date of initial application. The Company adopted the standard on the first day of the first quarter of 2019 using this alternative transition approach. The Company elected the transition package of practical expedients that is permitted by the standard. The package of practical expedients allows the Company to not reassess previous accounting conclusions regarding whether existing arrangements are or contain leases, the classification of existing leases, and the treatment of initial direct costs. The Company did not elect the hindsight transition practical expedient allowed for by the new standard, which allows entities to use hindsight when determining lease term and impairment of operating lease ROU assets. Additionally, the Company elected certain other practical expedients offered by the new standard which it will apply to all asset classes, including the option not to separate lease and non-lease components and instead to account for them as a single lease component and the option not to recognize ROU assets and related liabilities that arise from short-term leases (i.e., leases with terms of twelve months or less that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise). Substantially all of the Company’s retail store locations, supply chain facilities, certain corporate facilities and copy print equipment are subject to operating lease arrangements. As a result, the standard had material impacts in the Consolidated Balance Sheet but did not have an impact in the Consolidated Statement of Operations and Consolidated Statement of Cash Flows. The most significant impacts of the standard in the Consolidated Balance Sheet on the date of adoption were as follows: • Recognition of $1.4 billion Operating lease right-of-use assets and $1.6 billion Operating lease liabilities; • Derecognition of approximately $41 million of Property and equipment, net and $39 million of financing obligations associated with non-owned properties that were capitalized under previously existing build-to-suit lease accounting rules; and • Cumulative effect of $15 million adoption date adjustments to Accumulated deficit comprised of a $20 million impairment charge, net of tax effect, to the operating lease ROU assets, primarily because the fair market value of certain retail stores was lower than their carrying value prior to the adoption date; $4 million deferred gain, net of tax effect, related to transactions accounted for as sales and operating leasebacks under the previous lease accounting standard; and a $1 million credit, net of tax effect, arising from the derecognition of assets and liabilities associated with non-owned properties that were capitalized under previously existing build-to-suit lease accounting rules. As part of its adoption of the new lease accounting standard, the Company also implemented new internal controls and updated accounting policies and procedures, operational processes and documentation practices to enable the preparation of financial information on adoption. Refer to Note 12 for additional disclosures required as a result of the adoption of this new standard. Goodwill : In January 2017, the FASB issued an accounting standard update that simplifies how entities assess goodwill for impairment. The revised guidance eliminates the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Under this accounting update, a goodwill impairment loss should instead be measured at the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This accounting standard update is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. The Company early - adopted this accounting standard update with no material impact to its Consolidated Financial Statements. |
Revenue Recognition and Significant Judgments | REVENUE RECOGNITION AND SIGNIFICANT JUDGMENTS Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company is entitled to receive in exchange for those products or services. For product sales, transfer of control occurs at a point in time, typically upon delivery to the customer. For service offerings, the transfer of control and satisfaction of the performance obligation is either over time or at a point in time. When performance obligations are satisfied over time, the Company evaluates the pattern of delivery and progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Revenue is recognized net of allowance for returns and net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling costs are considered fulfillment activities and are recognized within the Company’s cost of goods sold. Contracts with customers could include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Determining the standalone selling price also requires judgment. The Company did not have significant revenues generated from such contracts in 2019 and 2018. Products are generally sold with a right of return and the Company may provide other incentives, such as rebates and coupons, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company estimates returns and incentives at contract inception and includes the amount in the transaction price for which significant reversal is not probable. These estimates are updated at the end of each reporting period as additional information becomes available. The Company offers a customer loyalty program that provides customers with rewards that can be applied to future purchases or other incentives. Loyalty rewards are accounted for as a separate performance obligation and a deferred liability is recorded in the amount of the transaction price allocated to the rewards, inclusive of the impact of estimated breakage. The estimated breakage of loyalty rewards is based on historical redemption rates experienced under the loyalty program. Revenue is recognized when the loyalty rewards are redeemed or expire. As of both December 28, 2019 and December 29, 2018, the Company had $12 million of deferred liability related to the loyalty program, which is included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. The Company recognizes revenue in certain circumstances before product delivery occurs (commonly referred to as bill-and-hold transactions). Revenue from bill-and-hold transactions is recognized when all specific requirements for transfer of control under a bill-and-hold arrangement have been met which include, among other things, a request from the customer that the product be held for future scheduled delivery. For these bill-and-hold arrangements, the associated product inventory is identified separately as belonging to the customer and is ready for physical transfer. |
Contract Balances | CONTRACT BALANCES The timing of revenue recognition may differ from the timing of invoicing to customers. A receivable is recognized in the period the Company delivers goods or provides services, and is recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is also recognized for unbilled services where the Company’s right to consideration is unconditional, and is recorded based on an estimate of time and materials. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that the contracts do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services. The Company receives payments from customers based upon contractual billing schedules. Contract assets include amounts related to deferred contract acquisition costs (refer to the section “Costs to Obtain a Contract” below) and if applicable, the Company’s conditional right to consideration for completed performance under a contract. The short and long-term components of contract assets in the table below are included in Prepaid expenses and other current assets, and Other assets, respectively, in the Consolidated Balance Sheets. Contract liabilities include payments received in advance of performance under the contract, which are recognized as revenue when the performance obligation is completed under the contract, as well as accrued contract acquisition costs, liabilities related to the Company’s loyalty program and gift cards. The short and long-term components of contract liabilities in the table below are included in Accrued expenses and other current liabilities, and Deferred income taxes and other long-term liabilities, respectively, in the Consolidated Balance Sheets. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: December 28, December 29, (In millions) 2019 2018 Trade receivables, net $ 599 $ 655 Short-term contract assets 23 22 Long-term contract assets 17 17 Short-term contract liabilities 52 52 Long-term contract liabilities 1 1 In 2019 and 2018, the Company did not have any contract assets related to conditional rights. The Company recognized revenues of $27 A majority of the purchase orders and statements of work related to contracts with customers require delivery of the product or service within one year or less. For certain service contracts that exceed one year, the Company recognizes revenue at the amount to which it has the right to invoice for services performed. Accordingly, the Company has applied the optional exemption provided by the new revenue recognition standard relating to unsatisfied performance obligations and does not disclose the value of unsatisfied performance obligations for its contracts. |
Costs to Obtain a Contract | COSTS TO OBTAIN A CONTRACT The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain rebate incentive programs meet the requirements to be capitalized. These costs are periodically reviewed for impairment, and are amortized on a straight-line basis over the expected period of benefit. As of December 28, 2019 and December 29, 2018, capitalized acquisition costs amounted to $40 million and $39 million, respectively, and are reflected in short-term contract assets and long-term contract assets in the table above. In 2019 and 2018, amortization expense was $35 million and $33 million, respectively. The Company had no asset impairment charges related to contract assets in the periods presented herein. |
MERGER AND RESTRUCTURING ACTI_2
MERGER AND RESTRUCTURING ACTIVITY (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Summary of Major Components of Merger and Restructuring Expenses, Net | The table below summarizes the major components of Merger and restructuring expenses, net. (In millions) 2019 2018 2017 Merger and transaction related expenses Severance and retention $ 1 $ 11 $ — Transaction and integration 23 35 37 Facility closure, contract termination and other expenses, net — 10 5 Total Merger and transaction related expenses 24 56 42 Restructuring expenses Severance 40 — 28 Professional fees 41 11 6 Facility closure, contract termination, and other expenses, net 11 5 18 Total Restructuring expenses 92 16 52 Total Merger and restructuring expenses, net $ 116 $ 72 $ 94 |
Facility Closure and Severance Costs | The activity in the merger and restructuring accruals in 2019 and 2018 is presented in the table below. Certain merger and restructuring charges are excluded from the table because they are paid as incurred or non-cash, such as accelerated depreciation and gains and losses on asset dispositions. (In millions) Beginning Balance Charges Incurred Cash Payments Adjustments (a) Ending Balance 2019 Termination benefits: Merger-related accruals $ 3 $ 2 $ (4 ) $ — $ 1 Comprehensive Business Review — — — — — Business Acceleration Program — 40 (27 ) — 13 Lease and contract obligations, accruals for facilities closures and other costs: Merger-related accruals 10 — — (10 ) — Comprehensive Business Review 5 6 (5 ) (3 ) 3 Business Acceleration Program — 42 (37 ) — 5 Total $ 18 $ 90 $ (73 ) $ (13 ) $ 22 2018 Termination benefits: Merger-related accruals $ 1 $ 9 $ (7 ) $ — $ 3 Comprehensive Business Review 4 — (4 ) — — Lease and contract obligations, accruals for facilities closures and other costs: Merger-related accruals 18 5 (13 ) — 10 Comprehensive Business Review 9 6 (10 ) — 5 Total $ 32 $ 20 $ (34 ) $ — $ 18 (a) Represents reclassification of operating lease obligations associated with facility closures to Operating lease ROU assets in the Consolidated Balance Sheet in accordance with the new lease accounting standard. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue by Division, Major Product and Service Categories | The following table provides information about disaggregated revenue by Division, and major products and services categories. 2019 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,961 $ 1,670 $ — $ 16 $ 4,647 Technology 1,236 1,702 271 2 3,211 Furniture and other 750 421 — 5 1,176 Services Technology — 29 709 (14 ) 724 Copy, print, and other 332 541 14 2 889 Total $ 5,279 $ 4,363 $ 994 $ 11 $ 10,647 2018 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,942 $ 1,753 $ — $ 10 $ 4,705 Technology 1,307 1,938 233 (7 ) 3,471 Furniture and other 725 414 — 7 1,146 Services Technology 1 28 843 (4 ) 868 Copy, print, and other 307 508 10 — 825 Total $ 5,282 $ 4,641 $ 1,086 $ 6 $ 11,015 2017 (In millions) Business Solutions Division Retail Division CompuCom Division Other Total Major products and services categories Products Supplies $ 2,805 $ 1,801 $ — $ 7 $ 4,613 Technology 1,360 2,155 34 1 3,550 Furniture and other 678 473 — 6 1,157 Services Technology — 38 119 — 157 Copy, print, and other 265 495 3 — 763 Total $ 5,108 $ 4,962 $ 156 $ 14 $ 10,240 |
Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: December 28, December 29, (In millions) 2019 2018 Trade receivables, net $ 599 $ 655 Short-term contract assets 23 22 Long-term contract assets 17 17 Short-term contract liabilities 52 52 Long-term contract liabilities 1 1 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Summary of Significant Accounts and Balances by Segment, Reconciled to Consolidated Totals | 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. |
Reconciliation of Measure of Division Operating Income to Consolidated Income Before Income Taxes | 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 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income from Continuing Operations Before Income Taxes | The components of income from continuing operations before income taxes consisted of the following: (In millions) 2019 2018 2017 United States $ 116 $ 138 $ 295 Foreign 30 20 4 Total income from continuing operations before income taxes $ 146 $ 158 $ 299 |
Schedule Income Tax Expense Related to Income From Continuing Operations | The income tax expense related to income from continuing operations consisted of the following: (In millions) 2019 2018 2017 Current: Federal $ (64 ) $ 3 $ 4 State 3 7 3 Foreign 8 9 9 Deferred: Federal 84 27 152 State 11 13 (17 ) Foreign 5 — 2 Total income tax expense $ 47 $ 59 $ 153 |
Reconciliation Of Income Taxes At The Federal Statutory Rate To The Provision For Income Taxes | The following is a reconciliation of income taxes at the U.S. Federal statutory rate to the provision for income taxes: (In millions) 2019 2018 2017 Federal tax computed at the statutory rate $ 30 $ 33 $ 105 State taxes, net of Federal benefit 6 10 12 Foreign income taxed at rates other than Federal 1 5 2 Increase (decrease) in valuation allowance 9 (3 ) (36 ) Non-deductible Merger expenses — — 3 Other non-deductible expenses and settlements 3 10 — Tax basis differences in investment in subsidiaries — (4 ) — Non-taxable income and additional deductible expenses (4 ) (1 ) (4 ) Change in unrecognized tax benefits 2 1 — Impact of Tax Reform — — 68 Impact of stock compensation shortfall — 5 3 Repatriation of foreign earnings — — 3 Other items, net — 3 (3 ) Income tax expense $ 47 $ 59 $ 153 |
Schedule of Components Deferred Income Tax Assets and Liabilities | The components of deferred income tax assets and liabilities consisted of the following: December 28, December 29, (In millions) 2019 2018 U.S. and foreign loss carryforwards $ 240 $ 253 Deferred rent credit — 35 Operating lease right-of-use assets 385 — Pension and other accrued compensation 53 65 Accruals for facility closings 2 5 Inventory 9 11 Self-insurance accruals 19 21 Deferred revenue 16 17 U.S. and foreign income tax credit carryforwards 168 227 Allowance for bad debts 4 4 Accrued expenses 21 20 Basis difference in fixed assets 31 30 Gross deferred tax assets 948 688 Valuation allowance (151 ) (142 ) Deferred tax assets 797 546 Internal software 10 11 Installment gain on sale of timberlands 168 172 Operating lease liabilities 356 — Intangibles 96 96 Undistributed foreign earnings 4 4 Deferred tax liabilities 634 283 Net deferred tax assets $ 163 $ 263 |
Summary of Valuation Allowances | The following summarizes the activity related to valuation allowances for deferred tax assets: (In millions) 2019 2018 2017 Beginning balance $ 142 $ 144 $ 140 Additions, charged to expense 9 — 4 Acquired via Merger — — 1 Impact of Tax Reform — — 40 Reductions — (2 ) (41 ) Ending balance $ 151 $ 142 $ 144 |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to unrecognized tax benefits: (In millions) 2019 2018 2017 Beginning balance $ 20 $ 20 $ 14 Increase related to current year tax positions 2 — — Increase related to merger — — 8 Increase (decrease) related to prior year tax positions — 1 (1 ) Decrease related to settlements with taxing authorities — (1 ) (1 ) Ending balance $ 22 $ 20 $ 20 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Net Earnings Per Common Share | The following table presents the calculation of net earnings per common share — basic and diluted: (In millions, except per share amounts) 2019 2018 2017 Basic Earnings Per Share Numerator: Net income from continuing operations $ 99 $ 99 $ 146 Income from discontinued operations, net of tax — 5 35 Net income $ 99 $ 104 $ 181 Denominator: Weighted-average shares outstanding 545 553 522 Basic earnings per share: Continuing operations $ 0.18 $ 0.18 $ 0.28 Discontinued operations — 0.01 0.07 Net basic earnings per share $ 0.18 $ 0.19 $ 0.35 Diluted Earnings Per Share Numerator: Net income from continuing operations $ 99 $ 99 $ 146 Income from discontinued operations, net of tax — 5 35 Net income $ 99 $ 104 $ 181 Denominator: Weighted-average shares outstanding 545 553 522 Effect of dilutive securities: Stock options and restricted stock 8 11 13 Diluted weighted-average shares outstanding 553 564 535 Diluted earnings per share Continuing operations $ 0.18 $ 0.18 $ 0.27 Discontinued operations — 0.01 0.06 Net diluted earnings per share $ 0.18 $ 0.19 $ 0.34 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Schedule of Property and Equipment | Property and equipment consists of: December 28, December 29, (In millions) 2019 2018 Land $ 45 $ 53 Buildings 221 281 Computer software 653 588 Leasehold improvements 658 649 Furniture, fixtures and equipment 833 787 Construction in progress 49 70 2,459 2,428 Less accumulated depreciation (1,780 ) (1,665 ) Total $ 679 $ 763 |
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense related to capitalized software at December 28, 2019 is as follows: (In millions) 2020 $ 50 2021 39 2022 24 2023 14 2024 5 Thereafter 2 |
Other assets held for sale | The assets held for sale activity in 201 9 is presented in the table below. (In millions) Balance as of December 29, 2018 $ 6 Additions 18 Dispositions (24 ) Balance as of December 28, 2019 $ — |
Assets Held Under Finance Leases | |
Schedule of Property and Equipment | The above table of property and equipment includes assets held under finance leases as follows: December 28, December 29, (In millions) 2019 2018 Buildings $ 40 $ 42 Furniture, fixtures and equipment 132 100 172 142 Less accumulated depreciation (120 ) (108 ) Total $ 52 $ 34 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | The components of goodwill by segment are provided in the following table: (In millions) Business Solutions Division Retail Division CompuCom Division Total Balance as of December 29, 2018 $ 387 $ 78 $ 449 $ 914 Acquisitions 22 — — 22 Foreign currency rate impact — — 7 7 Purchase accounting adjustments 1 — — 1 Balance as of December 28, 2019 $ 410 $ 78 $ 456 $ 944 |
Schedule of Amortizing Intangible Assets Net | Definite-lived intangible assets, which are included in Other intangible assets, net in the Consolidated Balance Sheets, are as follows: December 28, 2019 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 412 $ (109 ) $ 303 Technology 19 (16 ) 3 Total $ 431 $ (125 ) $ 306 December 29, 2018 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 408 $ (84 ) $ 324 Technology 19 (9 ) 10 Favorable leases 11 (4 ) 7 Total $ 438 $ (97 ) $ 341 |
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense for the intangible assets is as follows: (In millions) 2020 $ 26 2021 24 2022 23 2023 20 2024 20 Thereafter 193 Total $ 306 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following: December 28, December 29, (In millions) 2019 2018 Recourse debt: Short-term borrowings and current maturities of long-term debt: Finance lease obligations $ 19 $ 17 Other current maturities of long-term debt 87 78 Total $ 106 $ 95 Long-term debt, net of current maturities: Term Loan, due 2022 $ 331 $ 406 Unamortized debt issuance cost and discount (13 ) (19 ) Term Loan, due 2022, net 318 387 Revenue bonds, due in varying amounts periodically through 2029 176 186 American & Foreign Power Company, Inc. 5% debentures, due 2030 15 14 Finance lease obligations 58 55 Other financing obligations 8 48 Total $ 575 $ 690 Non-recourse debt — Timber notes: Non-recourse debt, current maturities: Bridge Loan, due 2020 — Refer to Note 10 $ 735 $ — Non-recourse debt: 5.42% Securitization Notes, due 2019 — Refer to Note 10 — 735 Unamortized premium — 19 Total $ 735 $ 754 |
Schedule of Maturities of Recourse Debt, Finance Lease and Other Financing Obligations | Aggregate annual maturities of recourse debt, finance lease, and other financing obligations are as follows: (In millions) 2020 $ 110 2021 99 2022 297 2023 94 2024 8 Thereafter 99 Total 707 Less interest on finance leases (13 ) Total 694 Less: Current portion (106 ) Unamortized debt issuance cost and discount (13 ) Total long-term debt $ 575 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: (In millions) 2019 Finance lease cost: Amortization of right-of-use assets $ 17 Interest on lease liabilities 5 Operating lease cost 433 Short-term lease cost 7 Variable lease cost 121 Sublease income (3 ) Total lease cost $ 580 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: (In millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 5 Operating cash flows from operating leases 489 Financing cash flows from finance leases 21 Right-of-use assets obtained in exchange for new finance lease liabilities 27 Right-of-use assets obtained in exchange for new operating lease liabilities 338 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 28, (In millions, except lease term and discount rate) 2019 Property and equipment, net $ 52 Operating lease right-of-use assets 1,413 Accrued expenses and other current liabilities 373 Short-term borrowings and current maturities of long-term debt 19 Long-term debt, net of current maturities 58 Operating lease liabilities 1,208 Weighted-average remaining lease term – finance leases 5 years Weighted-average remaining lease term – operating leases 5 years Weighted-average discount rate – finance leases 6.2 % Weighted-average discount rate – operating leases 6.6 % |
Schedule of Maturities of Lease Liabilities Under Operating and Finance Leases | Maturities of lease liabilities as of December 28, 2019 were as follows: December 28, 2019 Operating Finance (In millions) Leases (1) Leases (2) 2020 $ 461 $ 23 2021 383 21 2022 313 17 2023 243 13 2024 167 7 Thereafter 336 9 1,903 90 Less imputed interest (322 ) (13 ) Total $ 1,581 $ 77 Reported as of December 28, 2019 Accrued expenses and other current liabilities $ 373 $ — Short-term borrowings and current maturities of long-term debt — 19 Long-term debt, net of current maturities — 58 Operating lease liabilities 1,208 — Total $ 1,581 $ 77 (1) Operating lease payments include $116 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $8 million of legally binding lease payments for 3 additional operating leases signed but not yet commenced. These operating leases will commence in fiscal year 2020 with lease terms of 10 years. (2) Finance lease payments include $17 million related to options to extend lease terms that are reasonably certain of being exercised. |
Future Minimum Lease Payments due under Non-Cancelable Portions of Leases | The table below represents future minimum lease payments due under the non-cancelable portions of leases including facility leases that were accrued as store closure costs as of December 29, 2018. The table was updated from the version previously included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018 within the Notes to Consolidated Financial Statements to adjust for certain inconsistencies that management identified in the first quarter of fiscal year 2019 during the implementation of ASC 842, Leases. Specifically, the Company corrected the schedule to include additional lease commitments for option periods at the time of execution as opposed to the original extension date. December 29, (In millions) 2018 2019 $ 466 2020 374 2021 285 2022 214 2023 144 Thereafter 235 1,718 Less sublease income (11 ) Total $ 1,707 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss Activity, Net of Tax | Accumulated other comprehensive loss activity, net of tax, where applicable, is provided in the following tables: (In millions) Foreign Currency Translation Adjustments Change in Deferred Pension and Other Total Balance at December 29, 2018 $ (50 ) $ (49 ) $ (99 ) Other comprehensive income activity 21 18 39 Tax impact — (6 ) (6 ) Total other comprehensive income, net of tax, where applicable 21 12 33 Balance at December 28, 2019 $ (29 ) $ (37 ) $ (66 ) (In millions) Foreign Currency Translation Adjustments Change in Deferred Pension and Other Total Balance at December 30, 2017 $ (43 ) $ (35 ) $ (78 ) Other comprehensive loss activity before reclassifications (36 ) (23 ) (59 ) Reclassification of foreign currency translation adjustments realized upon disposal of business (a) 29 — 29 Tax impact — 9 9 Total other comprehensive loss, net of tax, where applicable (7 ) (14 ) (21 ) Balance at December 29, 2018 $ (50 ) $ (49 ) $ (99 ) (a) Relates to the disposition of the Company’s businesses in Australia and New Zealand in 2018. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Status of Company's Nonvested Shares | A summary of the status of the Company’s nonvested shares and changes during 2019, 2018 and 2017 is presented below. 2019 2018 2017 Shares Weighted Average Grant- Date Price Shares Weighted Average Grant- Date Price Shares Weighted Average Grant- Date Price Outstanding at beginning of year 14,964,187 $ 3.05 10,293,690 $ 4.33 12,747,791 $ 4.41 Granted 7,402,359 2.99 10,639,147 2.33 6,200,730 4.34 Vested (5,934,396 ) 3.09 (4,197,669 ) 4.37 (5,765,015 ) 4.61 Forfeited (2,484,591 ) 2.86 (1,770,981 ) 3.08 (2,889,816 ) 4.16 Outstanding at end of year 13,947,559 $ 3.04 14,964,187 $ 3.05 10,293,690 $ 4.33 |
Summary of Performance Based Long Term Incentive Program | A summary of the activity in the performance-based long-term incentive program since inception is presented below. 2019 2018 2017 Shares Weighted Average Grant- Date Price Shares Weighted Average Grant- Date Price Shares Weighted Average Grant- Date Price Outstanding at beginning of year 19,133,969 $ 2.88 10,187,045 $ 4.42 13,742,384 $ 4.66 Granted 10,267,429 3.10 13,287,817 2.37 5,099,667 4.18 Vested (2,843,657 ) 3.31 (1,211,764 ) 9.45 (6,556,274 ) 4.59 Forfeited (6,616,631 ) 2.89 (3,129,129 ) 3.12 (2,098,732 ) 4.67 Outstanding at end of year 19,941,110 $ 2.91 19,133,969 $ 2.88 10,187,045 $ 4.42 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Changes in Pension and Other Postretirement Benefit Obligations, Plan Assets and Funded Status | The following table provides a reconciliation of changes in the projected benefit obligation and the fair value of plan assets, as well as the funded status of the plans to amounts recognized on the Company’s Consolidated Balance Sheets. Accumulated benefit obligations exceed plan assets in all individual plans. Pension Benefits Other Benefits (In millions) 2019 2018 2019 2018 Changes in projected benefit obligation: Obligation at beginning of period $ 880 $ 979 $ 12 $ 14 Service cost 7 4 — — Interest cost 36 35 — 1 Assumption changes — — 1 (1 ) Actuarial (gain) loss 91 (51 ) — — Currency exchange rate change — — 1 (1 ) Benefits paid (108 ) (87 ) (1 ) (1 ) Obligation at end of period $ 906 $ 880 $ 13 $ 12 Change in plan assets: Fair value of plan assets at beginning of period $ 780 $ 908 $ — $ — Actual return (loss) on plan assets 159 (46 ) — — Employer contribution 2 5 1 1 Benefits paid (108 ) (87 ) (1 ) (1 ) Fair value of plan assets at end of period 833 780 — — Net liability recognized at end of period $ (73 ) $ (100 ) $ (13 ) $ (12 ) The following table provides a reconciliation of changes in the projected benefit obligation, the fair value of plan assets and the funded status of the plan to amounts recognized on the Company’s Consolidated Balance Sheets. (In millions) 2019 2018 Changes in projected benefit obligation: Obligation at beginning of period $ 203 $ 249 Service cost — — Interest cost 6 6 Plan amendments — 2 Plan settlements — (7 ) Benefits paid (10 ) (5 ) Actuarial (gain) loss 31 (29 ) Currency translation 6 (13 ) Obligation at end of period 236 203 Changes in plan assets: Fair value of plan assets at beginning of period 282 313 Actual return (loss) on plan assets 29 (3 ) Company contributions 2 2 Plan settlements — (7 ) Benefits paid (10 ) (5 ) Currency translation 9 (18 ) Fair value of plan assets at end of period 312 282 Net asset recognized at end of period $ 76 $ 79 |
Amount Recognized in Consolidated Balance Sheets Related to Defined Benefit Pension and Other Postretirement Benefit Plans | The following table shows the amounts recognized in the Consolidated Balance Sheets related to the Company’s North America defined benefit pension and other postretirement benefit plans as of year-ends: Pension Benefits Other Benefits (In millions) 2019 2018 2019 2018 Noncurrent assets $ — $ — $ — $ — Current liabilities (2 ) (2 ) (1 ) (1 ) Noncurrent liabilities (71 ) (98 ) (12 ) (11 ) Net amount recognized $ (73 ) $ (100 ) $ (13 ) $ (12 ) |
Components of Net Periodic Cost (Benefit) | The components of net periodic cost (benefit) are as follows: Pension Benefits Other Benefits (In millions) 2019 2018 2017 2019 2018 2017 Service cost $ 7 $ 4 $ 6 $ — $ — $ — Interest cost 36 35 39 — 1 1 Expected return on plan assets (42 ) (43 ) (48 ) — — — Net periodic cost (benefit) $ 1 $ (4 ) $ (3 ) $ — $ 1 $ 1 The components of net periodic benefit are presented below: (In millions) 2019 2018 2017 Service cost $ — $ — $ — Interest cost 6 6 6 Expected return on plan assets (7 ) (8 ) (11 ) Settlement gain — (1 ) — Net periodic pension benefit $ (1 ) $ (3 ) $ (5 ) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Income) | Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) are as follows: Pension Benefits Other Benefits (In millions) 2019 2018 2017 2019 2018 2017 Accumulated other comprehensive loss (income) at beginning of year $ 35 $ (2 ) $ 38 $ (1 ) $ — $ (1 ) Net loss (gain) (26 ) 37 (40 ) 1 (1 ) 1 Accumulated other comprehensive loss (income) at end of year $ 9 $ 35 $ (2 ) $ — $ (1 ) $ — |
Weighted Average Assumptions Used in the Measurement of Benefit Obligations and Net Periodic Cost (Benefit) | The following table presents the key weighted average assumptions used in the measurement of the Company’s benefit obligations as of year-ends: Other Benefits Pension Benefits United States Canada 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 3.26 % 4.31 % 3.71 % 2.80 % 3.90 % 3.30 % 3.10 % 3.90 % 3.40 % The following table presents the weighted average assumptions used in the measurement of net periodic benefit: Other Benefits Pension Benefits United States Canada 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 4.31 % 3.71 % 4.11 % 3.90 % 3.30 % 3.60 % 3.90 % 3.40 % 3.80 % Expected long-term rate of return on plan assets 5.44 % 5.28 % 5.76 % — % — % — % — % — % — % Assumptions used in calculating the funded status and net periodic benefit included: 2019 2018 2017 Expected long-term rate of return on plan assets 1.76 % 2.61 % 2.64 % Discount rate 2.10 % 3.00 % 2.60 % Inflation 2.90 % 3.10 % 3.10 % |
Assumed Healthcare Cost Trend Rates | The following table presents the assumed healthcare cost trend rates used in measuring the Company’s postretirement benefit obligations at year-ends: 2019 2018 2017 Weighted average assumptions as of year-end: Healthcare cost trend rate assumed for next year 6.20 % 6.40 % 6.60 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2029 2029 2029 |
Allocation of Plan Assets Table | The allocation of pension plan assets by category at year-ends is as follows: 2019 2018 Cash 1 % 1 % Common collective trust funds 99 % 99 % 100 % 100 % The allocation of Plan assets is as follows: 2019 2018 Cash — % — % Equity securities 18 % 19 % Fixed-income securities 82 % 81 % Total 100 % 100 % |
Schedule of Fair Value of Plan Assets by Assets Category | The following table presents the pension plan assets by level within the fair value hierarchy at year-ends. (In millions) Fair Value Measurements 2019 Asset Category Total Assets Measured at NAV (a) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan assets measured at net asset value: (a) Common collective trust funds: U.S. small and mid-cap equity securities $ 24 $ 24 $ — $ — $ — U.S. large cap equity securities 96 96 — — — International equity securities 138 138 — — — Corporate bonds 457 457 — — — Government securities 93 93 — — — Other fixed-income 4 4 — — — Cash 13 13 — — — Total common collective trust funds 825 825 — — — Total plan assets measured at net asset value 825 825 — — — Plan assets measured in the fair value hierarchy: Cash 8 — 8 — — Total plan assets measured in the fair value hierarchy 8 — 8 — — Total plan assets $ 833 $ 825 $ 8 $ — $ — (a) Fair values of Common collective trust funds are estimated using net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy in connection with the adoption of Accounting Standards Update (ASU) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). (In millions) Fair Value Measurements 2018 Asset Category Total Assets Measured at NAV (a) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan assets measured at net asset value: (a) Common collective trust funds: U.S. small and mid-cap equity securities $ 14 $ 14 $ — $ — $ — U.S. large cap equity securities 70 70 — — — International equity securities 135 135 — — — Corporate bonds 375 375 — — — Government securities 161 161 — — — Other fixed-income 7 7 — — — Cash 11 11 — — — Total common collective trust funds 773 773 — — — Total plan assets measured at net asset value 773 773 — — — Plan assets measured in the fair value hierarchy: Cash 7 — 7 — — Total plan assets measured in the fair value hierarchy 7 — 7 — — Total plan assets $ 780 $ 773 $ 7 $ — $ — (a) Fair values of Common collective trust funds are estimated using net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy in connection with the adoption of Accounting Standards Update (ASU) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The following table presents the pension plan assets by level within the fair value hierarchy. (In millions) Fair Value Measurements 2019 Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 1 $ 1 $ — $ — Equity securities Developed market equity funds 8 8 — — Emerging market equity funds 4 4 — — Mutual funds real estate 18 — — 18 Mutual funds 25 — 25 — Total equity securities 55 12 25 18 Fixed-income securities UK debt funds 107 — 107 — Liability term matching debt funds 128 — 128 — Emerging market debt fund 1 — 1 — High yield debt 20 — 20 — Total fixed-income securities 256 — 256 — Total $ 312 $ 13 $ 281 $ 18 (In millions) Fair Value Measurements 2018 Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 1 $ 1 $ — $ — Equity securities Developed market equity funds 8 8 — — Emerging market equity funds 4 4 — — Mutual funds real estate 19 — — 19 Mutual funds 23 — 23 — Total equity securities 54 12 23 19 Fixed-income securities UK debt funds 91 — 91 — Liability term matching debt funds 115 — 115 — Emerging market debt fund 3 — 3 — High yield debt 18 — 18 — Total fixed-income securities 227 — 227 — Total $ 282 $ 13 $ 250 $ 19 |
Anticipated Benefit Payments | Anticipated benefit payments by year are as follows: (In millions) Pension Benefits Other Benefits 2020 $ 80 $ 1 2021 77 1 2022 74 1 2023 72 1 2024 69 1 Next five years 299 4 Anticipated benefit payments for the European pension plan, at 2019 year-end exchange rates, are as follows: (In millions) Benefit Payments 2020 $ 11 2021 11 2022 12 2023 12 2024 12 Next five years 66 |
Reconciliation of the Change in Fair Value of the Pension Plan Assets Calculated based on Level 3 Inputs | The following is a reconciliation of the change in fair value of the pension plan assets calculated based on Level 3 inputs: (In millions) Total Balance at December 29, 2018 $ 19 Net sales (1 ) Balance at December 28, 2019 $ 18 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities | The following table presents information about financial instruments at the balance sheet dates indicated. December 28, December 29, 2019 2018 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Timber notes receivable $ 819 $ 819 $ 842 $ 835 Company-owned life insurance 91 91 91 91 Financial liabilities: Recourse debt: Term Loan, due 2022 393 409 463 490 Revenue bonds, due in varying amounts periodically through 2029 186 186 186 184 American & Foreign Power Company, Inc. 5% debentures, due 2030 15 14 14 14 Non-recourse debt — Timber notes 735 735 754 750 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Major Component of Discontinued Operations, Net of Tax | The major components of Discontinued operations, net of tax presented in the Consolidated Statements of Operations are presented below. (In millions) 2018 2017 Sales $ 115 $ 512 Cost of goods sold and occupancy costs 88 411 Operating expenses 21 102 Restructuring charges 1 2 Interest income — 1 Other expense, net (1 ) — Net (increase) reduction of loss on discontinued operations held for sale (1 ) 44 Net gain (loss) on sale of discontinued operations (4 ) 4 Income tax expense (benefit) (6 ) 11 Discontinued operations, net of tax $ 5 $ 35 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Ended December 28, 2019* Net sales $ 2,769 $ 2,588 $ 2,782 $ 2,508 Gross profit 641 585 667 571 Operating income (loss) (1) 24 (15 ) 108 74 Net income (loss) 8 (24 ) 60 55 Net earnings (loss) per share (2) Basic $ 0.01 $ (0.04 ) $ 0.11 $ 0.10 Diluted $ 0.01 $ (0.04 ) $ 0.11 $ 0.10 * Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. (1) Includes Merger and restructuring expenses, net totaling $14 million, $69 million, $22 million and $11 million in the first, second, third and fourth quarters of 2019, respectively. ( 2 ) (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Ended December 29, 2018* Net sales $ 2,830 $ 2,628 $ 2,887 $ 2,670 Gross profit 667 596 686 602 Operating income (3) 77 48 105 24 Net income (loss) from continuing operations (4) 33 19 60 (14 ) Discontinued operations, net of tax 8 (3 ) — — Net income (loss) 41 16 60 (14 ) Basic earnings (loss) per share (5) Continuing operations $ 0.06 $ 0.03 $ 0.11 $ (0.02 ) Discontinued operations $ 0.01 $ — $ — $ — Net basic earnings per share $ 0.07 $ 0.03 $ 0.11 $ (0.02 ) Diluted earnings (loss) per share (5) Continuing operations $ 0.06 $ 0.03 $ 0.11 $ (0.02 ) Discontinued operations $ 0.01 $ — $ — $ — Net diluted earnings per share $ 0.07 $ 0.03 $ 0.11 $ (0.02 ) * Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. ( 3 ) Includes Merger and restructuring expenses, net totaling $17 million, $14 million, $14 million and $27 million in the first, second, third and fourth quarters of 2018, respectively. The fourth quarter of 2018 also includes asset impairments of $7 million and a legal expense of $25 million. ( 4 ) Includes a loss on debt modification of $15 million and a tax benefit of $4 million due to a book-to-tax basis difference related to the sale of Clearpath Holdings, LLC in the fourth quarter of 2018. ( 5 ) The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | May 08, 2019StoreDistributionCenterandSalesOffice | Dec. 30, 2018USD ($) | Sep. 24, 2016Store | Dec. 28, 2019USD ($)StoreSegmentCustomerDistributionCenterandSalesOffice | Dec. 29, 2018USD ($)Customer | Dec. 30, 2017USD ($)Customer | Dec. 28, 2019USD ($)StoreCustomerDistributionCenterandSalesOffice | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of retail stores | Store | 1,307 | |||||||
Number of reportable segments | Segment | 3 | |||||||
Percent of subsidiary shares owned | 88.00% | |||||||
Assets related to discontinued operation | $ 0 | $ 0 | ||||||
Liabilities related to discontinued operation | 0 | 0 | ||||||
Accounts payable and accrued expenses and other current liabilities not yet presented for payment | 25,000,000 | $ 27,000,000 | 25,000,000 | |||||
Cash and cash equivalents | 698,000,000 | 658,000,000 | 698,000,000 | |||||
Trade receivables | 599,000,000 | 655,000,000 | 599,000,000 | |||||
Allowance for doubtful accounts | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | |||||
Number of customers accounted for more than 10% of total sales | Customer | 0 | 0 | 0 | |||||
Number of customers accounted for more than 10% of receivables | Customer | 0 | 0 | 0 | 0 | ||||
Other receivables | $ 225,000,000 | $ 230,000,000 | $ 225,000,000 | |||||
Accrued payroll and benefits | 150,000,000 | 173,000,000 | 150,000,000 | |||||
Advertising expenses | 249,000,000 | 270,000,000 | $ 264,000,000 | |||||
Prepaid advertising expenses | $ 6,000,000 | 5,000,000 | $ 6,000,000 | $ 6,000,000 | ||||
Lessee, operating lease, existence of option to extend [true false] | true | |||||||
Lease term of contract | 10 years | 10 years | ||||||
Operating lease right-of-use assets | $ 1,413,000,000 | $ 1,413,000,000 | ||||||
Operating lease liabilities | [1] | 1,208,000,000 | $ 1,208,000,000 | |||||
Cumulative effect adjustments to accumulated deficit | 15,000,000 | 4,000,000 | ||||||
Impairment charge, net of tax effect, to ROU assets | $ 46,000,000 | |||||||
Accounting Standards Update 2016-02 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Operating lease right-of-use assets | $ 1,400,000,000 | |||||||
Operating lease liabilities | 1,600,000,000 | |||||||
Derecognition of property and equipment, net | 41,000,000 | |||||||
Financing obligations derecognized | 39,000,000 | |||||||
Cumulative effect adjustments to accumulated deficit | 15,000,000 | |||||||
Impairment charge, net of tax effect, to ROU assets | 20,000,000 | |||||||
Deferred gain, net of tax effect, related to sales and operating leasebacks | 4,000,000 | |||||||
Derecognition of assets and liabilities, net of tax | $ 1,000,000 | |||||||
Comprehensive Business Review | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Retail stores closure period | 3 years | |||||||
Number of retail stores closed | Store | 54 | 208 | ||||||
Business Acceleration Program | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of retail stores planned to be closed | Store | 90 | |||||||
Number of other facilities planned to be closed | DistributionCenterandSalesOffice | 9 | |||||||
Number of other facilities closed | DistributionCenterandSalesOffice | 7 | 7 | ||||||
Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Extend renewal terms of the lease | 5 years | 5 years | ||||||
Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Extend renewal terms of the lease | 25 years | 25 years | ||||||
Lease term of contract | 12 months | 12 months | ||||||
Maximum | Comprehensive Business Review | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of retail stores planned to be closed | Store | 300 | |||||||
Buildings | Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 15 years | |||||||
Buildings | Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 30 years | |||||||
Furniture, fixtures and equipment | Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 3 years | |||||||
Furniture, fixtures and equipment | Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 10 years | |||||||
Computer Software for Common Office Applications | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 3 years | |||||||
Computer Software for Larger Business Application | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 5 years | |||||||
Computer Software for Enterprise Wide Systems | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 7 years | |||||||
Software | Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 3 years | |||||||
Software | Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful lives of depreciable assets, years | 7 years | |||||||
Vendor Arrangements Receivables | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Other receivables | $ 162,000,000 | 183,000,000 | $ 162,000,000 | |||||
Prepaid Expenses and Other Current Assets | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Restricted cash | 2,000,000 | $ 2,000,000 | 2,000,000 | |||||
Non-US | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash and cash equivalents | $ 190,000,000 | $ 190,000,000 | ||||||
[1] | Operating lease payments include $116 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $8 million of legally binding lease payments for 3 additional operating leases signed but not yet commenced. These operating leases will commence in fiscal year 2020 with lease terms of 10 years. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 26, 2020Business | Dec. 28, 2019USD ($)Business | Jun. 29, 2019Business | Mar. 30, 2019USD ($)Business | Dec. 28, 2019USD ($)Business | Dec. 29, 2018USD ($) | |
Business Acquisition, Acquisition Related Costs [Line Items] | ||||||
Contingent consideration, liability, amount recognized | $ 25 | |||||
Goodwill | $ 944 | $ 944 | 914 | |||
Contingent consideration liability, amount paid | $ 23 | |||||
Contingent consideration payments up to amount of acquisition-date liability | 12 | 12 | ||||
Contingent consideration payments in excess of acquisition-date liability | $ 11 | 11 | ||||
Accrual recorded in merger and restructuring expenses, net | 1 | $ 11 | ||||
Trade Name | ||||||
Business Acquisition, Acquisition Related Costs [Line Items] | ||||||
Intangible assets acquired | 4 | 4 | ||||
Multiple Acquisition | ||||||
Business Acquisition, Acquisition Related Costs [Line Items] | ||||||
Business combination consideration transferred | 27 | |||||
Contingent consideration, liability, amount recognized | 2 | 2 | ||||
Goodwill | 22 | 22 | ||||
Multiple Acquisition | Customer Relationships | ||||||
Business Acquisition, Acquisition Related Costs [Line Items] | ||||||
Intangible assets acquired | $ 1 | $ 1 | ||||
United States | ||||||
Business Acquisition, Acquisition Related Costs [Line Items] | ||||||
Number of business acquired | Business | 1 | 2 | 2 | 5 | ||
United States | Subsequent Event | ||||||
Business Acquisition, Acquisition Related Costs [Line Items] | ||||||
Number of business acquired | Business | 2 |
Summary of Major Components of
Summary of Major Components of Merger and Restructuring Expenses, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Merger and transaction related expenses | |||||||||||
Severance and retention | $ 1 | $ 11 | |||||||||
Transaction and integration | 23 | 35 | $ 37 | ||||||||
Facility closure, contract termination and other expenses, net | 10 | 5 | |||||||||
Total Merger and transaction related expenses | 24 | 56 | 42 | ||||||||
Restructuring expenses | |||||||||||
Severance | 40 | 28 | |||||||||
Professional fees | 41 | 11 | 6 | ||||||||
Facility closure, contract termination, and other expenses, net | 11 | 5 | 18 | ||||||||
Total Restructuring expenses | 92 | 16 | 52 | ||||||||
Total Merger and restructuring expenses, net | $ 11 | $ 22 | $ 69 | $ 14 | $ 27 | $ 14 | $ 14 | $ 17 | $ 116 | $ 72 | $ 94 |
Merger and Restructuring Acti_3
Merger and Restructuring Activity - Additional Information (Detail) $ in Millions | May 08, 2019USD ($)StoreDistributionCenterandSalesOffice | Dec. 28, 2019USD ($)StoreDistributionCenterandSalesOffice | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 28, 2019USD ($)StoreDistributionCenterandSalesOffice |
Business Acquisition [Line Items] | |||||
Merger and transaction related expenses | $ 24 | $ 56 | $ 42 | ||
Costs to implement restructuring plan | 90 | 20 | |||
Professional fees | $ 41 | 11 | 6 | ||
Business Acceleration Program | |||||
Business Acquisition [Line Items] | |||||
Number of retail stores planned to be closed | Store | 90 | ||||
Number of other facilities planned to be closed | DistributionCenterandSalesOffice | 9 | ||||
Number of other facilities closed | DistributionCenterandSalesOffice | 7 | 7 | |||
Costs to implement restructuring plan | $ 107 | $ 82 | |||
Business Acceleration Program | Cash Expenditures through 2021 | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | 104 | ||||
Business Acceleration Program | Severance and Related Employee Costs | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | 40 | 40 | |||
Expected restructuring cost paid | 69 | $ 69 | |||
Business Acceleration Program | Employee Recruitment and Relocation Costs | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | 2 | ||||
Business Acceleration Program | Retail Store and Facility Closure Costs | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | 7 | ||||
Business Acceleration Program | Third-Party Costs | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | 49 | ||||
Business Acceleration Program | Other Costs | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | $ 9 | 42 | |||
Business Acceleration Program | Third-Party Professional Fees | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | 39 | ||||
Business Acceleration Program | Retail Store and Facility Closure Costs and Other | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | 3 | ||||
Comprehensive Business Review | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | $ 8 | 5 | 50 | ||
Number of retail stores closed | Store | 54 | 208 | |||
Comprehensive Business Review | Other Costs | |||||
Business Acquisition [Line Items] | |||||
Costs to implement restructuring plan | $ 6 | 6 | |||
Strategic Plan | |||||
Business Acquisition [Line Items] | |||||
Professional fees | $ 11 | $ 2 |
Severance and Facility Closure
Severance and Facility Closure Costs (Detail) - USD ($) $ in Millions | May 08, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | $ 18 | $ 32 | |||
Charges Incurred | 90 | 20 | |||
Cash Payments | (73) | (34) | |||
Adjustments | [1] | (13) | |||
Ending Balance | 22 | 18 | $ 32 | ||
Comprehensive Business Review | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges Incurred | 8 | 5 | 50 | ||
Business Acceleration Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges Incurred | $ 107 | 82 | |||
Termination benefits | Merger related accruals | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | 3 | 1 | |||
Charges Incurred | 2 | 9 | |||
Cash Payments | (4) | (7) | |||
Ending Balance | 1 | 3 | 1 | ||
Termination benefits | Comprehensive Business Review | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | 4 | ||||
Cash Payments | (4) | ||||
Ending Balance | 4 | ||||
Termination benefits | Business Acceleration Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges Incurred | 40 | ||||
Cash Payments | (27) | ||||
Ending Balance | 13 | ||||
Other Costs | Merger related accruals | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | 10 | 18 | |||
Charges Incurred | 5 | ||||
Cash Payments | (13) | ||||
Adjustments | [1] | (10) | |||
Ending Balance | 10 | 18 | |||
Other Costs | Comprehensive Business Review | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning Balance | 5 | 9 | |||
Charges Incurred | 6 | 6 | |||
Cash Payments | (5) | (10) | |||
Adjustments | [1] | (3) | |||
Ending Balance | 3 | $ 5 | $ 9 | ||
Other Costs | Business Acceleration Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges Incurred | $ 9 | 42 | |||
Cash Payments | (37) | ||||
Ending Balance | $ 5 | ||||
[1] | Represents reclassification of operating lease obligations associated with facility closures to Operating lease ROU assets in the Consolidated Balance Sheet in accordance with the new lease accounting standard. |
Summary of Disaggregated Revenu
Summary of Disaggregated Revenue by Division, Major Product and Service Categories (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | [1] | Dec. 29, 2018 | [1] | Sep. 29, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | $ 2,508 | $ 2,782 | $ 2,588 | $ 2,769 | $ 2,670 | $ 2,887 | $ 2,628 | $ 2,830 | $ 10,647 | $ 11,015 | $ 10,240 | ||||||||
Products, Supplies | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 4,647 | 4,705 | 4,613 | ||||||||||||||||
Products, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 3,211 | 3,471 | 3,550 | ||||||||||||||||
Products, Furniture and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 1,176 | 1,146 | 1,157 | ||||||||||||||||
Services, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 724 | 868 | 157 | ||||||||||||||||
Services, Copy Print and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 889 | 825 | 763 | ||||||||||||||||
Business Solutions Division | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 5,279 | 5,282 | 5,108 | ||||||||||||||||
Business Solutions Division | Products, Supplies | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 2,961 | 2,942 | 2,805 | ||||||||||||||||
Business Solutions Division | Products, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 1,236 | 1,307 | 1,360 | ||||||||||||||||
Business Solutions Division | Products, Furniture and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 750 | 725 | 678 | ||||||||||||||||
Business Solutions Division | Services, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 1 | ||||||||||||||||||
Business Solutions Division | Services, Copy Print and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 332 | 307 | 265 | ||||||||||||||||
Retail Division | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 4,363 | 4,641 | 4,962 | ||||||||||||||||
Retail Division | Products, Supplies | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 1,670 | 1,753 | 1,801 | ||||||||||||||||
Retail Division | Products, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 1,702 | 1,938 | 2,155 | ||||||||||||||||
Retail Division | Products, Furniture and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 421 | 414 | 473 | ||||||||||||||||
Retail Division | Services, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 29 | 28 | 38 | ||||||||||||||||
Retail Division | Services, Copy Print and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 541 | 508 | 495 | ||||||||||||||||
CompuCom Division | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 994 | 1,086 | 156 | ||||||||||||||||
CompuCom Division | Products, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 271 | 233 | 34 | ||||||||||||||||
CompuCom Division | Services, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 709 | 843 | 119 | ||||||||||||||||
CompuCom Division | Services, Copy Print and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 14 | 10 | 3 | ||||||||||||||||
Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 11 | 6 | 14 | ||||||||||||||||
Other | Products, Supplies | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 16 | 10 | 7 | ||||||||||||||||
Other | Products, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 2 | (7) | 1 | ||||||||||||||||
Other | Products, Furniture and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | 5 | 7 | $ 6 | ||||||||||||||||
Other | Services, Technology | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | (14) | $ (4) | |||||||||||||||||
Other | Services, Copy Print and Other | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Total sales | $ 2 | ||||||||||||||||||
[1] | Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 28, 2019USD ($)Segment | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Revenue From Contract With Customer [Line Items] | ||||||||
Number of reportable segments | Segment | 3 | |||||||
Deferred liability related to loyalty programs | $ 52,000,000 | $ 52,000,000 | $ 52,000,000 | $ 52,000,000 | ||||
Recognition of contract assets as a result of business combination | 0 | 0 | ||||||
Revenue recognition included in short-term contract liabilities | 27,000,000 | 35,000,000 | ||||||
Recognition of contract liabilities as a result of business combination | 0 | 0 | ||||||
Significant adjustment to revenue from performance obligations | 0 | 0 | ||||||
Contract with customer, asset, reclassified to receivable | 0 | 0 | ||||||
Capitalized acquisition cost | 40,000,000 | 39,000,000 | 40,000,000 | 39,000,000 | ||||
Capitalized contract cost, amortization | 35,000,000 | 33,000,000 | ||||||
Impairment charges related to contract assets | 6,000,000 | $ 5,000,000 | $ 16,000,000 | $ 29,000,000 | 7,000,000 | 56,000,000 | 7,000,000 | $ 4,000,000 |
Contract Assets | ||||||||
Revenue From Contract With Customer [Line Items] | ||||||||
Impairment charges related to contract assets | 0 | 0 | ||||||
Accrued Expenses and Other Current Liabilities | ||||||||
Revenue From Contract With Customer [Line Items] | ||||||||
Deferred liability related to loyalty programs | $ 12,000,000 | $ 12,000,000 | $ 12,000,000 | $ 12,000,000 |
Summary of Receivables, Contrac
Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Contract With Customer Asset And Liability [Abstract] | ||
Trade receivables, net | $ 599 | $ 655 |
Short-term contract assets | 23 | 22 |
Long-term contract assets | 17 | 17 |
Short-term contract liabilities | 52 | 52 |
Long-term contract liabilities | $ 1 | $ 1 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 28, 2019USD ($)Segment | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | ||
Number of operating segments | 3 | ||
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ | $ 14,000,000 | $ 11,000,000 | $ 0 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | [1] | Dec. 29, 2018 | Sep. 29, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | $ 2,508 | [1] | $ 2,782 | $ 2,588 | $ 2,769 | $ 2,670 | [1] | $ 2,887 | $ 2,628 | $ 2,830 | $ 10,647 | $ 11,015 | $ 10,240 | |||||||
Division operating income (loss) | 463 | 451 | 521 | |||||||||||||||||
Capital expenditures | 150 | 187 | 141 | |||||||||||||||||
Depreciation and amortization | 204 | 192 | 159 | |||||||||||||||||
Charges for losses on receivables and inventories | 26 | 37 | 70 | |||||||||||||||||
Assets | 7,311 | 6,166 | 7,311 | 6,166 | ||||||||||||||||
Business Solutions Division | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 5,279 | 5,282 | 5,108 | |||||||||||||||||
Retail Division | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 4,363 | 4,641 | 4,962 | |||||||||||||||||
Other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 11 | 6 | 14 | |||||||||||||||||
Operating Segments | Business Solutions Division | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 5,279 | 5,282 | 5,108 | |||||||||||||||||
Division operating income (loss) | 271 | 243 | 262 | |||||||||||||||||
Capital expenditures | 43 | 43 | 45 | |||||||||||||||||
Depreciation and amortization | 66 | 64 | 62 | |||||||||||||||||
Charges for losses on receivables and inventories | 3 | 8 | ||||||||||||||||||
Assets | 1,803 | 1,686 | 1,803 | 1,686 | ||||||||||||||||
Operating Segments | Retail Division | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 4,363 | 4,641 | 4,962 | |||||||||||||||||
Division operating income (loss) | 194 | 193 | 254 | |||||||||||||||||
Capital expenditures | 68 | 108 | 78 | |||||||||||||||||
Depreciation and amortization | 91 | 83 | 78 | |||||||||||||||||
Charges for losses on receivables and inventories | 25 | 32 | 62 | |||||||||||||||||
Assets | 2,403 | 1,277 | 2,403 | 1,277 | ||||||||||||||||
Operating Segments | CompuCom Division | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 994 | 1,086 | 156 | |||||||||||||||||
Division operating income (loss) | (2) | 17 | 8 | |||||||||||||||||
Capital expenditures | 10 | 14 | 5 | |||||||||||||||||
Depreciation and amortization | 39 | 38 | 5 | |||||||||||||||||
Charges for losses on receivables and inventories | 1 | 2 | ||||||||||||||||||
Assets | 989 | 1,033 | 989 | 1,033 | ||||||||||||||||
Operating Segments | Other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 11 | 6 | 14 | |||||||||||||||||
Division operating income (loss) | (2) | (3) | ||||||||||||||||||
Assets | 10 | 6 | 10 | 6 | ||||||||||||||||
Corporate, Eliminations, and Discontinued Operations | Discontinued Operations | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Capital expenditures | [2] | 29 | 22 | 13 | ||||||||||||||||
Depreciation and amortization | [2] | 8 | 7 | $ 14 | ||||||||||||||||
Assets | [2] | $ 2,106 | $ 2,164 | $ 2,106 | $ 2,164 | |||||||||||||||
[1] | Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. | |||||||||||||||||||
[2] | 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. |
Reconciliation of Measure of Di
Reconciliation of Measure of Division Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Division operating income | $ 74 | [1],[2] | $ 108 | [1],[2] | $ (15) | [1],[2] | $ 24 | [1],[2] | $ 24 | [1],[3] | $ 105 | [1],[3] | $ 48 | [1],[3] | $ 77 | [1],[3] | $ 191 | $ 254 | $ 327 |
Asset impairments | (6) | (5) | (16) | (29) | (7) | (56) | (7) | (4) | |||||||||||
Merger and restructuring expenses, net | $ (11) | $ (22) | $ (69) | $ (14) | (27) | $ (14) | $ (14) | $ (17) | (116) | (72) | (94) | ||||||||
Legal expense accrual | (25) | (25) | |||||||||||||||||
Unallocated expenses | (100) | (93) | (96) | ||||||||||||||||
Interest income | 23 | 25 | 22 | ||||||||||||||||
Interest expense | (89) | (121) | (62) | ||||||||||||||||
Loss on extinguishment and modification of debt | $ (15) | (15) | |||||||||||||||||
Other income, net | 21 | 15 | 12 | ||||||||||||||||
Income from continuing operations before income taxes | 146 | 158 | 299 | ||||||||||||||||
Operating Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Division operating income | $ 463 | $ 451 | $ 521 | ||||||||||||||||
[1] | Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. | ||||||||||||||||||
[2] | Includes Merger and restructuring expenses, net totaling $14 million, $69 million, $22 million and $11 million in the first, second, third and fourth quarters of 2019, respectively. | ||||||||||||||||||
[3] | Includes Merger and restructuring expenses, net totaling $17 million, $14 million, $14 million and $27 million in the first, second, third and fourth quarters of 2018, respectively. The fourth quarter of 2018 also includes asset impairments of $7 million and a legal expense of $25 million. |
Schedule of Components of Incom
Schedule of Components of Income from Continuing Operations before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 116 | $ 138 | $ 295 |
Foreign | 30 | 20 | 4 |
Income from continuing operations before income taxes | $ 146 | $ 158 | $ 299 |
Schedule Income Tax Expense Rel
Schedule Income Tax Expense Related to Income From Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ (64) | $ 3 | $ 4 |
State, Current | 3 | 7 | 3 |
Foreign, Current | 8 | 9 | 9 |
Federal, Deferred | 84 | 27 | 152 |
State, Deferred | 11 | 13 | (17) |
Foreign, Deferred | 5 | 2 | |
Income tax expense | $ 47 | $ 59 | $ 153 |
Reconciliation Of Income Taxes
Reconciliation Of Income Taxes at Federal Statutory Rate to Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal tax computed at the statutory rate | $ 30 | $ 33 | $ 105 |
State taxes, net of Federal benefit | 6 | 10 | 12 |
Foreign income taxed at rates other than Federal | 1 | 5 | 2 |
Increase (decrease) in valuation allowance | 9 | (3) | (36) |
Non-deductible Merger expenses | 3 | ||
Other non-deductible expenses and settlements | 3 | 10 | |
Tax basis differences in investment in subsidiaries | (4) | ||
Non-taxable income and additional deductible expenses | (4) | (1) | (4) |
Change in unrecognized tax benefits | 2 | 1 | |
Impact of Tax Reform | 68 | ||
Impact of stock compensation shortfall | 5 | 3 | |
Repatriation of foreign earnings | 3 | ||
Other items, net | 3 | (3) | |
Income tax expense | $ 47 | $ 59 | $ 153 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 32.00% | 21.00% | ||
Federal marginal tax rate | 21.00% | |||
Effective tax rate | 32.00% | 37.00% | 51.00% | |
Tax cuts and jobs act, alternative minimum tax, tax year description | In addition, any unused AMT Credits that remain unused for tax years after 2017 can be refunded up to 50% of the unused balance in any tax year. | |||
Tax cuts and jobs act, alternative minimum tax, percentage of unused balances received by taxpayers | 50.00% | |||
Tax cuts and jobs act, alternative minimum tax, reduction of deferred tax assets | $ 22 | |||
Income tax benefit recognized | $ 36 | |||
Impact of Tax Reform | 40 | |||
Unrecognized Tax Benefits | 22 | $ 20 | 20 | $ 14 |
Net uncertain tax positions, if recognized affect effective tax rate | 10 | |||
Unrecognized Tax Benefits results from positions if sustained offset by change in valuation allowance | 12 | |||
Increase related to merger | 8 | |||
Unrecognized tax benefits, accrued interest and penalties | 7 | |||
CompuCom Systems, Inc | ||||
Income Taxes [Line Items] | ||||
Increase related to merger | 8 | |||
Unrecognized tax benefit is currently covered under an indemnification agreement | 3 | |||
Unrecognized tax benefits, accrued interest and penalties | 1 | |||
Deferred Income Taxes and Other Long-Term Liabilities | ||||
Income Taxes [Line Items] | ||||
Deferred income tax liabilities | 20 | $ 20 | ||
U.S. Federal and State | ||||
Income Taxes [Line Items] | ||||
Estimated valuation allowance, determined to be reduced | $ 40 | |||
Operating Loss Carry forwards | 60 | |||
Alternate minimum tax credit carryforwards | 22 | |||
U.S. Federal and State | Expire in 2019 | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carry forwards | 0 | |||
U.S. Federal and State | Capital loss carryover | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, amount to offset future capital gains | $ 604 | |||
Capital loss carryover, expiration year | 2022 | |||
Foreign | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carry forwards | $ 80 | |||
Foreign | Expire in 2020 | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carry forwards | 4 | |||
State | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carry forwards | 1,200 | |||
Capital loss carryover, amount to offset future capital gains | $ 485 | |||
Capital loss carryover, expiration year | 2022 | |||
State | Expire in 2020 | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carry forwards | $ 68 | |||
U.S. Federal Foreign | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, amount to offset future capital gains | $ 127 | |||
U.S. Federal Foreign | Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, expiration year | 2020 | |||
U.S. Federal Foreign | Latest Tax Year | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, expiration year | 2028 | |||
State and Foreign | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, amount to offset future capital gains | $ 14 | |||
State and Foreign | Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, expiration year | 2023 | |||
State and Foreign | Latest Tax Year | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, expiration year | 2028 | |||
State and Foreign | Indefinite Carryforward | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, amount to offset future capital gains | $ 2 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Tax cuts and jobs act, alternative minimum tax, credits refunded | $ 44 | |||
Minimum | U.S. Federal and State | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2020 | |||
Minimum | U.S. Federal and State | Capital loss carryover | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, expiration year | 2021 | |||
Minimum | Foreign | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2024 | |||
Minimum | State | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2021 | |||
Capital loss carryover, expiration year | 2021 | |||
Maximum | U.S. Federal and State | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2033 | |||
Maximum | U.S. Federal and State | Capital loss carryover | ||||
Income Taxes [Line Items] | ||||
Capital loss carryover, expiration year | 2023 | |||
Maximum | Foreign | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2033 | |||
Maximum | State | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2039 | |||
Capital loss carryover, expiration year | 2023 |
Schedule of Components of Defer
Schedule of Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred Tax Assets Operating Loss Carryforwards Components [Abstract] | ||
U.S. and foreign loss carryforwards | $ 240 | $ 253 |
Deferred rent credit | 35 | |
Operating lease right-of-use assets | 385 | |
Pension and other accrued compensation | 53 | 65 |
Accruals for facility closings | 2 | 5 |
Inventory | 9 | 11 |
Self-insurance accruals | 19 | 21 |
Deferred revenue | 16 | 17 |
U.S. and foreign income tax credit carryforwards | 168 | 227 |
Allowance for bad debts | 4 | 4 |
Accrued expenses | 21 | 20 |
Basis difference in fixed assets | 31 | 30 |
Gross deferred tax assets | 948 | 688 |
Valuation allowance | (151) | (142) |
Deferred tax assets | 797 | 546 |
Internal software | 10 | 11 |
Installment gain on sale of timberlands | 168 | 172 |
Operating lease liabilities | 356 | |
Intangibles | 96 | 96 |
Undistributed foreign earnings | 4 | 4 |
Deferred tax liabilities | 634 | 283 |
Net deferred tax assets | $ 163 | $ 263 |
Summary of Valuation Allowances
Summary of Valuation Allowances (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Taxes [Line Items] | |||
Beginning balance | $ 142 | ||
Impact of Tax Reform | $ 40 | ||
Ending balance | 151 | $ 142 | |
Valuation Allowance of Deferred Tax Assets | |||
Income Taxes [Line Items] | |||
Beginning balance | 142 | 144 | 140 |
Additions, charged to expense | 9 | 4 | |
Acquired via Merger | 1 | ||
Impact of Tax Reform | 40 | ||
Reductions | (2) | (41) | |
Ending balance | $ 151 | $ 142 | $ 144 |
Summary of Activity Related to
Summary of Activity Related to Unrecognized Tax Benefit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 20 | $ 20 | $ 14 |
Increase related to current year tax positions | 2 | ||
Increase related to merger | 8 | ||
Increase (decrease) related to prior year tax positions | 1 | (1) | |
Decrease related to settlements with taxing authorities | (1) | (1) | |
Ending balance | $ 22 | $ 20 | $ 20 |
Calculation of Net Earnings Per
Calculation of Net Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 28, 2019 | [2] | Sep. 28, 2019 | [2] | Jun. 29, 2019 | [2] | Mar. 30, 2019 | [2] | Dec. 29, 2018 | [2] | Sep. 29, 2018 | [2] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [2] | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Basic Earnings Per Share | |||||||||||||||||||
Net income from continuing operations | $ (14) | [1] | $ 60 | [1] | $ 19 | [1] | $ 33 | [1] | $ 99 | $ 99 | $ 146 | ||||||||
Income from discontinued operations, net of tax | (3) | 8 | 5 | 35 | |||||||||||||||
Net income | $ 55 | $ 60 | $ (24) | $ 8 | $ (14) | $ 60 | $ 16 | $ 41 | $ 99 | $ 104 | $ 181 | ||||||||
Weighted-average shares outstanding | 545 | 553 | 522 | ||||||||||||||||
Continuing operations | $ (0.02) | [3] | $ 0.11 | [3] | $ 0.03 | [3] | $ 0.06 | [3] | $ 0.18 | $ 0.18 | $ 0.28 | ||||||||
Discontinued operations | 0.01 | [3] | 0.01 | 0.07 | |||||||||||||||
Net basic earnings per common share | $ 0.10 | [3] | $ 0.11 | [3] | $ (0.04) | [3] | $ 0.01 | [3] | $ (0.02) | [3] | $ 0.11 | [3] | $ 0.03 | [3] | $ 0.07 | [3] | $ 0.18 | $ 0.19 | $ 0.35 |
Diluted Earnings Per Share | |||||||||||||||||||
Net income from continuing operations | $ (14) | [1] | $ 60 | [1] | $ 19 | [1] | $ 33 | [1] | $ 99 | $ 99 | $ 146 | ||||||||
Income from discontinued operations, net of tax | (3) | 8 | 5 | 35 | |||||||||||||||
Net income | $ 55 | $ 60 | $ (24) | $ 8 | $ (14) | $ 60 | $ 16 | $ 41 | $ 99 | $ 104 | $ 181 | ||||||||
Weighted-average shares outstanding | 545 | 553 | 522 | ||||||||||||||||
Stock options and restricted stock | 8 | 11 | 13 | ||||||||||||||||
Diluted weighted-average shares outstanding | 553 | 564 | 535 | ||||||||||||||||
Continuing operations | $ (0.02) | [3] | $ 0.11 | [3] | $ 0.03 | [3] | $ 0.06 | [3] | $ 0.18 | $ 0.18 | $ 0.27 | ||||||||
Discontinued operations | 0.01 | [3] | 0.01 | 0.06 | |||||||||||||||
Net diluted earnings per common share | $ 0.10 | [3] | $ 0.11 | [3] | $ (0.04) | [3] | $ 0.01 | [3] | $ (0.02) | [3] | $ 0.11 | [3] | $ 0.03 | [3] | $ 0.07 | [3] | $ 0.18 | $ 0.19 | $ 0.34 |
[1] | Includes a loss on debt modification of $15 million and a tax benefit of $4 million due to a book-to-tax basis difference related to the sale of Clearpath Holdings, LLC in the fourth quarter of 2018. | ||||||||||||||||||
[2] | Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. | ||||||||||||||||||
[3] | The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Nonvested Stock Options and Shares | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Shares excluded from computation of diluted earnings per share | 9 | 5 | 4 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 2,459 | $ 2,428 |
Less accumulated depreciation | (1,780) | (1,665) |
Total | 679 | 763 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 45 | 53 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 221 | 281 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 653 | 588 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 658 | 649 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 833 | 787 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 49 | $ 70 |
Schedule of Assets Held under F
Schedule of Assets Held under Finance Leases (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Property, Plant and Equipment [Line Items] | ||
Assets held under finance leases, Gross | $ 2,459 | $ 2,428 |
Less accumulated depreciation | (1,780) | (1,665) |
Total | 679 | 763 |
Assets Held Under Finance Leases | ||
Property, Plant and Equipment [Line Items] | ||
Assets held under finance leases, Gross | 172 | 142 |
Less accumulated depreciation | (120) | (108) |
Total | 52 | 34 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Assets held under finance leases, Gross | 221 | 281 |
Buildings | Assets Held Under Finance Leases | ||
Property, Plant and Equipment [Line Items] | ||
Assets held under finance leases, Gross | 40 | 42 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Assets held under finance leases, Gross | 833 | 787 |
Furniture, fixtures and equipment | Assets Held Under Finance Leases | ||
Property, Plant and Equipment [Line Items] | ||
Assets held under finance leases, Gross | $ 132 | $ 100 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 118 | $ 114 | $ 111 |
Capitalized software costs, Gross | 653 | 589 | |
Capitalized software costs, Net | 134 | 118 | |
Amortization of capitalized software costs | 55 | $ 46 | $ 39 |
Gain on disposition of assets held for sale | 25 | ||
Selling, General and Administrative Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Gain on disposition of assets held for sale | 19 | ||
Merger and Restructuring Expenses, Net | |||
Property, Plant and Equipment [Line Items] | |||
Gain on disposition of assets held for sale | $ 6 | ||
Capitalized Software | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average remaining amortization period | 3 years |
Estimated Future Amortization E
Estimated Future Amortization Expense Related to Capitalized Software (Detail) $ in Millions | Dec. 28, 2019USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Line Items] | |
2020 | $ 26 |
2021 | 24 |
2022 | 23 |
2023 | 20 |
2024 | 20 |
Thereafter | 193 |
Capitalized Software | |
Finite Lived Intangible Assets Future Amortization Expense [Line Items] | |
2020 | 50 |
2021 | 39 |
2022 | 24 |
2023 | 14 |
2024 | 5 |
Thereafter | $ 2 |
Assets Held for Sale Activity (
Assets Held for Sale Activity (Detail) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Property Plant And Equipment [Abstract] | |
Beginning Balance | $ 6 |
Additions | 18 |
Dispositions | $ (24) |
Schedule of Goodwill by Segment
Schedule of Goodwill by Segment (Detail) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Goodwill [Line Items] | |
Balance as of December 29, 2018 | $ 914 |
Acquisitions | 22 |
Foreign currency rate impact | 7 |
Purchase accounting adjustments | 1 |
Balance as of December 28, 2019 | 944 |
Operating Segments | Business Solutions Division | |
Goodwill [Line Items] | |
Balance as of December 29, 2018 | 387 |
Acquisitions | 22 |
Purchase accounting adjustments | 1 |
Balance as of December 28, 2019 | 410 |
Operating Segments | Retail Division | |
Goodwill [Line Items] | |
Balance as of December 29, 2018 | 78 |
Balance as of December 28, 2019 | 78 |
Operating Segments | CompuCom Division | |
Goodwill [Line Items] | |
Balance as of December 29, 2018 | 449 |
Foreign currency rate impact | 7 |
Balance as of December 28, 2019 | $ 456 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Other Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | ||
Trade Name | 82,000,000 | $ 79,000,000 | |
Other | 2,000,000 | ||
Impairment of other indefinite-lived intangible assets | $ 2,000,000 | 1,000,000 | |
Weighted average amortization period for the definite-lived intangible assets (in years) | 14 years | ||
Amortization of intangible assets | $ 31,000,000 | 31,000,000 | $ 9,000,000 |
Impairment of definite-lived intangible assets | $ 0 | $ 0 | $ 2,000,000 |
Customer Relationships | |||
Other Intangible Assets [Line Items] | |||
Weighted average amortization period for the definite-lived intangible assets (in years) | 14 years | ||
Technology | |||
Other Intangible Assets [Line Items] | |||
Weighted average amortization period for the definite-lived intangible assets (in years) | 6 months | ||
Operating Segments | Business Solutions Division | |||
Other Intangible Assets [Line Items] | |||
Goodwill, accumulated impairment loss | $ 349,000,000 |
Definite Lived Intangible Asset
Definite Lived Intangible Assets Included in Other Intangible Assets Net (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 431 | $ 438 |
Accumulated Amortization | (125) | (97) |
Net Carrying Amount | 306 | 341 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 412 | 408 |
Accumulated Amortization | (109) | (84) |
Net Carrying Amount | 303 | 324 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19 | 19 |
Accumulated Amortization | (16) | (9) |
Net Carrying Amount | $ 3 | 10 |
Favorable Leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11 | |
Accumulated Amortization | (4) | |
Net Carrying Amount | $ 7 |
Estimated Future Amortization_2
Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | $ 26 | |
2021 | 24 | |
2022 | 23 | |
2023 | 20 | |
2024 | 20 | |
Thereafter | 193 | |
Net Carrying Amount | $ 306 | $ 341 |
Timber Notes_Non-Recourse Debt
Timber Notes/Non-Recourse Debt - Additional Information (Detail) - USD ($) $ in Millions | Jan. 29, 2020 | Oct. 31, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Nov. 05, 2013 |
Timber Notes Non Recourse Debt Receivable And Payable [Line Items] | |||||
Principal amount of credit-enhanced timber installment notes acquired | $ 818 | ||||
Timber note receivables - interest rates | 4.98% | ||||
Timber notes receivable - maturity date | Jan. 29, 2020 | ||||
Notes receivable, current maturities | $ 819 | $ 0 | |||
Notes receivable, non current | 842 | ||||
Non-recourse debt, current maturities | 735 | ||||
Securitization notes reported as non-recourse debt | 754 | ||||
Deferred tax liability | 168 | ||||
Subsequent Event | |||||
Timber Notes Non Recourse Debt Receivable And Payable [Line Items] | |||||
Net principal cash payment received | $ 82.5 | ||||
Term Loan Agreement | |||||
Timber Notes Non Recourse Debt Receivable And Payable [Line Items] | |||||
Non-recourse debt, current maturities | $ 735 | ||||
Securitization notes reported as non-recourse debt | $ 754 | ||||
Non-Recourse Debt | |||||
Timber Notes Non Recourse Debt Receivable And Payable [Line Items] | |||||
Non-recourse debt acquired in a business combination | $ 735 | ||||
Interest rate on senior notes | 5.42% | 5.42% | |||
Maturity date of debt | Oct. 31, 2019 | ||||
Non-recourse debt, current maturities | $ 735 | ||||
Non-Recourse Debt | Term Loan Agreement | |||||
Timber Notes Non Recourse Debt Receivable And Payable [Line Items] | |||||
Maturity date of debt | Jan. 29, 2020 | ||||
Bridge loan for refinancing of debt | $ 735 | ||||
Debt variable rate terms | 3-month LIBOR | ||||
Non-Recourse Debt | Term Loan Agreement | LIBOR | |||||
Timber Notes Non Recourse Debt Receivable And Payable [Line Items] | |||||
Debt, basis spread on variable rate | 0.75% |
Schedule of Debt (Detail)
Schedule of Debt (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Total | $ 106 | $ 95 |
Total | 575 | 690 |
Non-recourse debt, current maturities | 735 | |
Recourse Debt | ||
Debt Instrument [Line Items] | ||
Finance lease obligations | 19 | 17 |
Other current maturities of long-term debt | 87 | 78 |
Total | 106 | 95 |
Finance lease obligations | 58 | 55 |
Other financing obligations | 8 | 48 |
Total | 575 | 690 |
Recourse Debt | Term Loan, due 2022 | ||
Debt Instrument [Line Items] | ||
Long term debt | 331 | 406 |
Unamortized debt issuance cost and discount | (13) | (19) |
Term Loan, due 2022, net | 318 | 387 |
Recourse Debt | Revenue bonds, due in varying amounts periodically through 2029 | ||
Debt Instrument [Line Items] | ||
Long term debt | 176 | 186 |
Recourse Debt | American & Foreign Power Company, Inc. 5% debentures, due 2030 | ||
Debt Instrument [Line Items] | ||
Long term debt | 15 | 14 |
Non-recourse debt — Timber notes | ||
Debt Instrument [Line Items] | ||
Long term debt | 735 | |
Unamortized premium | 19 | |
Term Loan, due 2022, net | $ 754 | |
Non-recourse debt, current maturities | 735 | |
Non-recourse debt — Timber notes | Term Loan, due 2020 | ||
Debt Instrument [Line Items] | ||
Bridge Loan, due 2020 | $ 735 |
Schedule of Debt (Parenthetical
Schedule of Debt (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Nov. 05, 2013 | |
Non-recourse debt — Timber notes | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 5.42% | 5.42% | |
Long term debt, due date | 2019 | ||
Term Loan, due 2020 | Non-recourse debt — Timber notes | |||
Debt Instrument [Line Items] | |||
Long term debt, due date | 2020 | ||
Term Loan, due 2022 | Recourse Debt | |||
Debt Instrument [Line Items] | |||
Long term debt, due date | 2022 | 2022 | |
Revenue bonds, due in varying amounts periodically through 2029 | Recourse Debt | |||
Debt Instrument [Line Items] | |||
Long term debt, due date | 2029 | 2029 | |
American & Foreign Power Company, Inc. 5% debentures, due 2030 | Recourse Debt | |||
Debt Instrument [Line Items] | |||
Long term debt, interest rate | 5.00% | 5.00% | |
Long term debt, due date | 2030 | 2030 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Nov. 21, 2018 | Nov. 08, 2017 | May 25, 2011 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||||||
Loss on modification of debt | $ (15,000,000) | $ (15,000,000) | ||||
Line Of Credit Sub-Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, current borrowing capacity | $ 200,000,000 | |||||
Letter Of Credit Sub Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, current borrowing capacity | 400,000,000 | |||||
Swing Line Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement, current borrowing capacity | 125,000,000 | |||||
Global Availability | ||||||
Debt Instrument [Line Items] | ||||||
Minimum availability level of borrowings to avoid cash settlement | $ 150,000,000 | |||||
Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity under revolving credit facility | 1,200,000,000 | |||||
Credit agreement, increased borrowing capacity | $ 250,000,000 | |||||
Maturity date of debt | May 13, 2021 | |||||
Minimum availability level of borrowings to avoid fixed charge coverage ratio test | 125,000,000 | |||||
Excess of debt default amount resulting termination of Facility | $ 25,000,000 | |||||
Excess acquisition of ownership percentage resulting termination of Facility | 40.00% | |||||
Available credit under the Facility | $ 920,000,000 | |||||
Amount outstanding under credit facility | 0 | |||||
Amount outstanding under letters of credit | 65,000,000 | |||||
Average borrowings under the Facility | $ 0 | |||||
Amended Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate liquidity maintenance covenant amount available under the facility | $ 400,000,000 | |||||
Senior secured leverage ratio | 150.00% | 69.00% | ||||
Amended Credit Agreement | Federal Funds Rate Plus | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 0.50% | |||||
Amended Credit Agreement | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 1.00% | |||||
Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date of debt | Nov. 8, 2022 | |||||
Senior secured term loan | $ 750,000,000 | |||||
Percentage of issue price of term loan credit Facility | 97.00% | |||||
Debt issuance costs | $ 12,000,000 | |||||
Voluntary repayment of credit agreement | $ 194,000,000 | |||||
Loss on modification of debt | $ (15,000,000) | |||||
Prepayment fee percentage under the term loan Facility | 1.00% | |||||
Quarterly amortization of loan principal amount under the Facility | $ 19,000,000 | |||||
Beginning date of quarterly amortization of loan under the Facility | Mar. 15, 2018 | |||||
Term Loan Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 7.00% | |||||
Term Loan Facility | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 6.00% | |||||
Term Loan Facility | First Amendment | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, basis spread on variable rate | 5.25% | 7.00% | ||||
Recourse Debt | Revenue bonds, due in varying amounts periodically through 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Senior secured notes, due date | 2029 | 2029 | ||||
Recourse Debt | American & Foreign Power Company, Inc. 5% debentures, due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Senior secured notes, due date | 2030 | 2030 | ||||
Long-term debt, interest rate | 5.00% | 5.00% | 5.00% |
Schedule of Maturities of Recou
Schedule of Maturities of Recourse Debt, Finance Lease and Other Financing Obligations (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |||
2020 | $ 110 | ||
2021 | 99 | ||
2022 | 297 | ||
2023 | 94 | ||
2024 | 8 | ||
Thereafter | 99 | ||
Total | 707 | ||
Less interest on finance leases | [1] | (13) | |
Total | 694 | ||
Less: Current portion | (106) | ||
Unamortized debt issuance cost and discount | (13) | ||
Total | $ 575 | $ 690 | |
[1] | Finance lease payments include $17 million related to options to extend lease terms that are reasonably certain of being exercised. |
Components of Lease Expense (De
Components of Lease Expense (Detail) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Finance lease cost: | |
Amortization of right-of-use assets | $ 17 |
Interest on lease liabilities | 5 |
Operating lease cost | 433 |
Short-term lease cost | 7 |
Variable lease cost | 121 |
Sublease income | (3) |
Total lease cost | $ 580 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related to Leases (Detail) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from finance leases | $ 5 |
Operating cash flows from operating leases | 489 |
Financing cash flows from finance leases | 21 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 27 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 338 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related to Leases (Detail) $ in Millions | Dec. 28, 2019USD ($) | |
Leases [Line Items] | ||
Operating lease right-of-use assets | $ 1,413 | |
Operating lease liabilities | $ 1,208 | [1] |
Weighted-average remaining lease term – finance leases | 5 years | |
Weighted-average remaining lease term – operating leases | 5 years | |
Weighted-average discount rate – finance leases | 6.20% | |
Weighted-average discount rate – operating leases | 6.60% | |
Property and Equipment, Net | ||
Leases [Line Items] | ||
Finance lease right-of-use assets | $ 52 | |
Accrued Expenses and Other Current Liabilities | ||
Leases [Line Items] | ||
Operating Leases liability, Current | 373 | [1] |
Short-Term Borrowings and Current Maturities of Long-Term Debt | ||
Leases [Line Items] | ||
Finance Leases, Current | 19 | [2] |
Long-Term Debt, Net of Current Maturities | ||
Leases [Line Items] | ||
Finance Leases, Non-current | $ 58 | [2] |
[1] | Operating lease payments include $116 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $8 million of legally binding lease payments for 3 additional operating leases signed but not yet commenced. These operating leases will commence in fiscal year 2020 with lease terms of 10 years. | |
[2] | Finance lease payments include $17 million related to options to extend lease terms that are reasonably certain of being exercised. |
Schedule of Maturities of Lease
Schedule of Maturities of Lease Liabilities Under Operating and Finance Leases (Detail) $ in Millions | Dec. 28, 2019USD ($) | |
Leases [Line Items] | ||
Operating leases, 2020 | $ 461 | [1] |
Operating leases, 2021 | 383 | [1] |
Operating leases, 2022 | 313 | [1] |
Operating leases, 2023 | 243 | [1] |
Operating leases, 2024 | 167 | [1] |
Operating leases, Thereafter | 336 | [1] |
Operating leases, Total minimum payments | 1,903 | [1] |
Operating Leases, Less imputed interest | (322) | [1] |
Operating Leases, Total | 1,581 | [1] |
Operating lease liabilities | 1,208 | [1] |
Finance Leases, 2020 | 23 | [2] |
Finance Leases, 2021 | 21 | [2] |
Finance Leases, 2022 | 17 | [2] |
Finance Leases, 2023 | 13 | [2] |
Finance Leases, 2024 | 7 | [2] |
Finance Leases, Thereafter | 9 | [2] |
Finance leases, Total minimum payments | 90 | [2] |
Finance Leases, Less imputed interest | (13) | [2] |
Finance Leases, Total | 77 | [2] |
Accrued Expenses and Other Current Liabilities | ||
Leases [Line Items] | ||
Operating Leases, Current | 373 | [1] |
Short-Term Borrowings and Current Maturities of Long-Term Debt | ||
Leases [Line Items] | ||
Finance Leases, Current | 19 | [2] |
Long-Term Debt, Net of Current Maturities | ||
Leases [Line Items] | ||
Finance Leases, Non-current | $ 58 | [2] |
[1] | Operating lease payments include $116 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $8 million of legally binding lease payments for 3 additional operating leases signed but not yet commenced. These operating leases will commence in fiscal year 2020 with lease terms of 10 years. | |
[2] | Finance lease payments include $17 million related to options to extend lease terms that are reasonably certain of being exercised. |
Schedule of Maturities of Lea_2
Schedule of Maturities of Lease Liabilities Under Operating and Finance Leases (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($)Lease | |
Leases [Line Items] | |
Operating lease payments | $ 489 |
Operating Lease, term | 10 years |
Finance lease payments | $ 21 |
Options | |
Leases [Line Items] | |
Operating lease payments | 116 |
Finance lease payments | 17 |
Legally Binding Lease Payments | |
Leases [Line Items] | |
Operating lease payments | $ 8 |
Number of additional operating leases | Lease | 3 |
Future Minimum Lease Payments d
Future Minimum Lease Payments due under Non-Cancelable Portions of Leases (Detail) $ in Millions | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 466 |
2020 | 374 |
2021 | 285 |
2022 | 214 |
2023 | 144 |
Thereafter | 235 |
Total before sublease income | 1,718 |
Less sublease income | (11) |
Total | $ 1,707 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Nov. 06, 2019 | Nov. 30, 2018 | |
Shareholders Equity [Line Items] | |||||||||
Stock repurchase program, shares purchased | 15,000,000 | ||||||||
Stock repurchase program, shares purchased at cost | $ 40,000,000 | $ 39,000,000 | $ 56,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 161,000,000 | $ 161,000,000 | |||||||
Treasury stock, shares | 85,242,458 | 85,242,458 | 70,337,276 | ||||||
Dividend paid on common stock, per share | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.10 | $ 0.10 | $ 0.10 | ||
Dividend distribution, common stock | $ 55,000,000 | $ 55,000,000 | $ 53,000,000 | ||||||
Maximum | |||||||||
Shareholders Equity [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 200,000,000 | $ 100,000,000 | |||||||
Preferred Stock | |||||||||
Shareholders Equity [Line Items] | |||||||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||||
Redeemable preferred stock, par value per share | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Preferred stock, shares issued | 0 | 0 | 0 | ||||||
Preferred stock, shares outstanding | 0 | 0 | 0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss Activity, Net of Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ 2,126 | ||||
Other comprehensive income (loss) activity before reclassifications | 39 | $ (59) | |||
Reclassification of foreign currency translation adjustments realized upon disposal of business | 29 | [1] | $ (1) | ||
Tax impact | (6) | 9 | |||
Other comprehensive income (loss) | 33 | (21) | 51 | ||
Ending Balance | 2,173 | 2,126 | |||
Foreign Currency Translation Adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (50) | (43) | |||
Other comprehensive income (loss) activity before reclassifications | 21 | (36) | |||
Reclassification of foreign currency translation adjustments realized upon disposal of business | [1] | 29 | |||
Other comprehensive income (loss) | 21 | (7) | |||
Ending Balance | (29) | (50) | (43) | ||
Change in Deferred Pension and Other | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (49) | (35) | |||
Other comprehensive income (loss) activity before reclassifications | 18 | (23) | |||
Tax impact | (6) | 9 | |||
Other comprehensive income (loss) | 12 | (14) | |||
Ending Balance | (37) | (49) | (35) | ||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (99) | (78) | |||
Other comprehensive income (loss) | 33 | (21) | 51 | ||
Ending Balance | $ (66) | $ (99) | $ (78) | ||
[1] | Relates to the disposition of the Company’s businesses in Australia and New Zealand in 2018. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Performance Based Stock Incentive Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted in period | 10,267,429 | 13,287,817 | 5,099,667 | |
Award vesting period | 3 years | |||
Stock-based compensation expense not yet recognized relating to non-vested awards | $ 29 | |||
Stock-based compensation expense relating to non-vested awards, weighted-average recognition period, years | 1 year 10 months 24 days | |||
Shares outstanding, Number | 19,941,110 | 19,133,969 | 10,187,045 | 13,742,384 |
Estimated number of shares expected to vest | 19,900,000 | |||
Fair value of shares vested | $ 10 | |||
Restricted Stock and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted in period | 7,402,359 | 10,639,147 | 6,200,730 | |
Shares outstanding, Number | 13,947,559 | 14,964,187 | 10,293,690 | 12,747,791 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Stock-based compensation expense not yet recognized relating to non-vested awards | $ 21 | |||
Stock-based compensation expense relating to non-vested awards, weighted-average recognition period, years | 1 year 9 months 18 days | |||
Fair value of shares vested | $ 18 | |||
Director | Restricted Stock and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted in period | 400,000 | |||
Shares outstanding, Number | 1,900,000 | |||
Employees | Restricted Stock and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, Number | 12,000,000 | |||
Estimated number of shares expected to vest | 12,000,000 |
Summary of Status of Nonvested
Summary of Status of Nonvested Shares (Detail) - Restricted Stock and Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of the period, Shares | 14,964,187 | 10,293,690 | 12,747,791 |
Granted, Shares | 7,402,359 | 10,639,147 | 6,200,730 |
Vested, Shares | (5,934,396) | (4,197,669) | (5,765,015) |
Forfeited, Shares | (2,484,591) | (1,770,981) | (2,889,816) |
Outstanding at end of the period, Shares | 13,947,559 | 14,964,187 | 10,293,690 |
Outstanding at beginning of the period, Weighted Average Grant-Date Price | $ 3.05 | $ 4.33 | $ 4.41 |
Granted, Weighted Average Grant-Date Price | 2.99 | 2.33 | 4.34 |
Vested, Weighted Average Grant-Date Price | 3.09 | 4.37 | 4.61 |
Forfeited, Weighted Average Grant-Date Price | 2.86 | 3.08 | 4.16 |
Outstanding at end of the period, Weighted Average Grant-Date Price | $ 3.04 | $ 3.05 | $ 4.33 |
Summary of the Activity in the
Summary of the Activity in the Performance-Based Long-Term Incentive Program Since Inception (Detail) - Performance Based Stock Incentive Program - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of the period, Shares | 19,133,969 | 10,187,045 | 13,742,384 |
Granted, Shares | 10,267,429 | 13,287,817 | 5,099,667 |
Vested, Shares | (2,843,657) | (1,211,764) | (6,556,274) |
Forfeited, Shares | (6,616,631) | (3,129,129) | (2,098,732) |
Outstanding at end of the period, Shares | 19,941,110 | 19,133,969 | 10,187,045 |
Outstanding at beginning of the period, Weighted Average Grant-Date Price | $ 2.88 | $ 4.42 | $ 4.66 |
Granted, Weighted Average Grant-Date Price | 3.10 | 2.37 | 4.18 |
Vested, Weighted Average Grant-Date Price | 3.31 | 9.45 | 4.59 |
Forfeited, Weighted Average Grant-Date Price | 2.89 | 3.12 | 4.67 |
Outstanding at end of the period, Weighted Average Grant-Date Price | $ 2.91 | $ 2.88 | $ 4.42 |
Changes in Pension and Other Po
Changes in Pension and Other Postretirement Benefit Obligations, Plan Assets and Funded Status (Detail) - North America - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation at beginning of period | $ 880 | $ 979 | |
Service cost | 7 | 4 | $ 6 |
Interest cost | 36 | 35 | 39 |
Actuarial (gain) loss | 91 | (51) | |
Benefits paid | (108) | (87) | |
Obligation at end of period | 906 | 880 | 979 |
Fair value of plan assets at beginning of period | 780 | 908 | |
Actual return (loss) on plan assets | 159 | (46) | |
Employer contribution | 2 | 5 | |
Benefits paid | (108) | (87) | |
Fair value of plan assets at end of period | 833 | 780 | 908 |
Net asset (liability) recognized at end of period | (73) | (100) | |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation at beginning of period | 12 | 14 | |
Interest cost | 1 | 1 | |
Assumption changes | 1 | (1) | |
Currency exchange rate change | 1 | (1) | |
Benefits paid | (1) | (1) | |
Obligation at end of period | 13 | 12 | $ 14 |
Employer contribution | 1 | 1 | |
Benefits paid | (1) | (1) | |
Net asset (liability) recognized at end of period | $ (13) | $ (12) |
Amounts Recognized in Consolida
Amounts Recognized in Consolidated Balance Sheets Related to Defined Benefit Pension and Other Postretirement Benefit Plans (Detail) - North America - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ (2) | $ (2) |
Noncurrent liabilities | (71) | (98) |
Net asset (liability) recognized at end of period | (73) | (100) |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | (1) | (1) |
Noncurrent liabilities | (12) | (11) |
Net asset (liability) recognized at end of period | $ (13) | $ (12) |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost (Benefit) (Detail) - North America - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 7 | $ 4 | $ 6 |
Interest cost | 36 | 35 | 39 |
Expected return on plan assets | (42) | (43) | (48) |
Net periodic cost (benefit) | $ 1 | (4) | (3) |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 1 | 1 | |
Net periodic cost (benefit) | $ 1 | $ 1 |
Other Changes In Plan Assets an
Other Changes In Plan Assets and Benefit Obligations Recognized In Other Comprehensive Loss (Income) (Detail) - North America - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive loss (income) at beginning of year | $ 35 | $ (2) | $ 38 |
Net loss (gain) | (26) | 37 | (40) |
Accumulated other comprehensive loss (income) at end of year | 9 | 35 | (2) |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive loss (income) at beginning of year | (1) | (1) | |
Net loss (gain) | $ 1 | (1) | $ 1 |
Accumulated other comprehensive loss (income) at end of year | $ (1) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Retirement Savings Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Compensation expense relating to retirement savings plans | $ 25,000,000 | $ 26,000,000 | $ 21,000,000 |
Change in Mortality Table | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase (decrease) in pension obligations | $ 17,000,000 | $ (3,000,000) | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 5.44% | 5.28% | 5.76% |
North America | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 5.16% | ||
North America | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions, current period | $ 3,000,000 | ||
Pension contributions, for 2020 | $ 10,000,000 | ||
United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 1.76% | 2.61% | 2.64% |
Plan asset target allocation | 100.00% | 100.00% | |
Deferred (loss) gain included in accumulated other comprehensive income | $ 8,000,000 | $ 16,000,000 | |
Percentage of allowance expense on assets | 0.17% | ||
United Kingdom | United Kingdom Government Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Incremental return on UK government securities | 4.50% | ||
United Kingdom | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset target allocation | 18.00% | 19.00% | |
United Kingdom | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset target allocation | 82.00% | 81.00% | |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive loss, expected to be amortized | $ 1,000,000 | ||
Maximum | Change in Mortality Table | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase (decrease) in other postretirement obligations | 1,000,000 | $ (1,000,000) | |
Maximum | North America | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Impact of one-percentage-point change on operating income | $ 1,000,000 | ||
Maximum | North America | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset target allocation | 37.00% | ||
Maximum | North America | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset target allocation | 73.00% | ||
Minimum | North America | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset target allocation | 27.00% | ||
Minimum | North America | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan asset target allocation | 63.00% |
Weighted Average Assumptions Us
Weighted Average Assumptions Used in the Measurement of Benefit Obligations (Detail) | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.26% | 4.31% | 3.71% |
Other Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.80% | 3.90% | 3.30% |
Other Benefits | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.10% | 3.90% | 3.40% |
Weighted Average Assumptions _2
Weighted Average Assumptions Used in the Measurement of Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.31% | 3.71% | 4.11% |
Expected long-term rate of return on plan assets | 5.44% | 5.28% | 5.76% |
Other Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.90% | 3.30% | 3.60% |
Other Benefits | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.90% | 3.40% | 3.80% |
Assumed Healthcare Cost Trend R
Assumed Healthcare Cost Trend Rates (Detail) - North America | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Weighted average assumptions as of year-end: | |||
Healthcare cost trend rate assumed for next year | 6.20% | 6.40% | 6.60% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2029 | 2029 | 2029 |
Allocation of Pension Plan Asse
Allocation of Pension Plan Assets by Category (Detail) | Dec. 28, 2019 | Dec. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 1.00% | 1.00% |
Common Collective Trust Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 99.00% | 99.00% |
Fair Value of Pension Plan Asse
Fair Value of Pension Plan Assets (Detail) - Pension Benefits - North America - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | $ 833 | $ 780 | $ 908 |
Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 825 | 773 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 8 | 7 | |
U.S. Small And Mid-Cap Equity Securities | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 24 | 14 | |
U.S. Large Cap Equity Securities | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 96 | 70 | |
International Equity Securities | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 138 | 135 | |
Corporate Bonds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 457 | 375 | |
Government Securities | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 93 | 161 | |
Other Fixed Income | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 4 | 7 | |
Cash | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 8 | 7 | |
Cash | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 13 | 11 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | 7 | ||
Common Collective Trust Funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Plan Assets Category [Line Items] | |||
Fair value of plan assets | $ 825 | $ 773 |
Estimated Future Benefit Paymen
Estimated Future Benefit Payments (Detail) - North America $ in Millions | Dec. 28, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 80 |
2021 | 77 |
2022 | 74 |
2023 | 72 |
2024 | 69 |
Next five years | 299 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 1 |
2021 | 1 |
2022 | 1 |
2023 | 1 |
2024 | 1 |
Next five years | $ 4 |
Schedule Of Reconciliation Of C
Schedule Of Reconciliation Of Changes In Projected Benefit Obligation, Fair Value Of Plan Assets And Funded Status Of Plan (Detail) - United Kingdom - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation at beginning of period | $ 203 | $ 249 | |
Interest cost | 6 | 6 | $ 6 |
Plan amendments | 2 | ||
Plan settlements | (7) | ||
Benefits paid | (10) | (5) | |
Actuarial (gain) loss | 31 | (29) | |
Currency translation | 6 | (13) | |
Obligation at end of period | 236 | 203 | 249 |
Fair value of plan assets at beginning of period | 282 | 313 | |
Actual return (loss) on plan assets | 29 | (3) | |
Company contributions | 2 | 2 | |
Plan settlements | (7) | ||
Benefits paid | (10) | (5) | |
Currency translation | 9 | (18) | |
Fair value of plan assets at end of period | 312 | 282 | $ 313 |
Net asset (liability) recognized at end of period | $ 76 | $ 79 |
Components of Net Periodic Pe_2
Components of Net Periodic Pension (Benefit) Cost (Detail) - United Kingdom - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 6 | $ 6 | $ 6 |
Expected return on plan assets | (7) | (8) | (11) |
Settlement gain | (1) | ||
Net periodic cost (benefit) | $ (1) | $ (3) | $ (5) |
Assumptions Used in Calculating
Assumptions Used in Calculating Funded Status (Detail) - United Kingdom | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on plan assets | 1.76% | 2.61% | 2.64% |
Discount rate | 2.10% | 3.00% | 2.60% |
Inflation | 2.90% | 3.10% | 3.10% |
Allocation of Plan Assets (Deta
Allocation of Plan Assets (Detail) - United Kingdom | Dec. 28, 2019 | Dec. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 18.00% | 19.00% |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 82.00% | 81.00% |
Fair Value of Plan Assets (Deta
Fair Value of Plan Assets (Detail) - UNITED KINGDOM - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 312 | $ 282 | $ 313 |
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Developed Markets Equity Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 8 | |
Emerging Markets Equity Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 4 | |
Mutual Funds Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 19 | |
Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | 23 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55 | 54 | |
Foreign Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 107 | 91 | |
Liability Term Matching Debt Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 128 | 115 | |
Emerging Markets Debt Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 3 | |
High Yield Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 18 | |
Defined Benefit Plan, Debt Security | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 256 | ||
Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 227 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 13 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Developed Markets Equity Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Emerging Markets Equity Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 4 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 12 | |
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 281 | 250 | |
Significant Observable Inputs (Level 2) | Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | 23 | |
Significant Observable Inputs (Level 2) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | 23 | |
Significant Observable Inputs (Level 2) | Foreign Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 107 | 91 | |
Significant Observable Inputs (Level 2) | Liability Term Matching Debt Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 128 | 115 | |
Significant Observable Inputs (Level 2) | Emerging Markets Debt Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 3 | |
Significant Observable Inputs (Level 2) | High Yield Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 18 | |
Significant Observable Inputs (Level 2) | Defined Benefit Plan, Debt Security | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 256 | ||
Significant Observable Inputs (Level 2) | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 227 | ||
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 19 | |
Significant Unobservable Inputs (Level 3) | Mutual Funds Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 19 | |
Significant Unobservable Inputs (Level 3) | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 18 | $ 19 |
Reconciliation of the Change in
Reconciliation of the Change in Fair Value of the Pension Plan Assets Calculated based on Level 3 Inputs (Detail) - Significant Unobservable Inputs (Level 3) - United Kingdom $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Schedule of Pension Plan Assets by Fair Value [Line Items] | |
Balance at December 29, 2018 | $ 19 |
Net sales | (1) |
Balance at December 28, 2019 | $ 18 |
Anticipated Benefit Payments (D
Anticipated Benefit Payments (Detail) - United Kingdom $ in Millions | Dec. 28, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 11 |
2021 | 11 |
2022 | 12 |
2023 | 12 |
2024 | 12 |
Next five years | $ 66 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Asset impairments | $ 6,000,000 | $ 5,000,000 | $ 16,000,000 | $ 29,000,000 | $ 7,000,000 | $ 56,000,000 | $ 7,000,000 | $ 4,000,000 |
Impairment of operating lease ROU assets | $ 46,000,000 | |||||||
Retail Stores | Significant Unobservable Inputs (Level 3) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Percentage used for analysis | 7.00% | |||||||
Retail Stores | Significant Unobservable Inputs (Level 3) | A 100 basis point decrease in anticipated sales | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Decrease in sales for scenario | 1.00% | |||||||
Decrease in gross margin for scenario | 0.50% | |||||||
Retail Stores | Significant Unobservable Inputs (Level 3) | 50 basis point decrease in anticipated gross margins | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Decrease in sales for scenario | 1.00% | |||||||
Maximum | Retail Stores | Significant Unobservable Inputs (Level 3) | A 100 basis point decrease in anticipated sales | Additional impairment charges | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Asset impairments | $ 1,000,000 | |||||||
Maximum | Retail Stores | Significant Unobservable Inputs (Level 3) | 50 basis point decrease in anticipated gross margins | Additional impairment charges | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Asset impairments | $ 1,000,000 |
Schedule of Fair Value of Asset
Schedule of Fair Value of Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Timber notes receivable | $ 819 | $ 835 |
Company-owned life insurance | 91 | 91 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Timber notes receivable | 819 | 842 |
Company-owned life insurance | 91 | 91 |
Recourse Debt | Term Loan, due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 409 | 490 |
Recourse Debt | Revenue bonds, due in varying amounts periodically through 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 186 | 184 |
Recourse Debt | American & Foreign Power Company, Inc. 5% debentures, due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 14 | 14 |
Recourse Debt | Carrying Amount | Term Loan, due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 393 | 463 |
Recourse Debt | Carrying Amount | Revenue bonds, due in varying amounts periodically through 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 186 | 186 |
Recourse Debt | Carrying Amount | American & Foreign Power Company, Inc. 5% debentures, due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 15 | 14 |
Non-Recourse Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 735 | 750 |
Non-Recourse Debt | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 735 | $ 754 |
Schedule of Fair Value of Ass_2
Schedule of Fair Value of Assets and Liabilities (Parenthetical) (Detail) - Recourse Debt | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
American & Foreign Power Company, Inc. 5% debentures, due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate on senior notes | 5.00% | 5.00% |
Carrying Amount | Term Loan, due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, due date | 2022 | 2022 |
Carrying Amount | Revenue bonds, due in varying amounts periodically through 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, due date | 2029 | 2029 |
Carrying Amount | American & Foreign Power Company, Inc. 5% debentures, due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, due date | 2030 | 2030 |
Interest rate on senior notes | 5.00% | 5.00% |
Fair Value | Term Loan, due 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, due date | 2022 | 2022 |
Fair Value | Revenue bonds, due in varying amounts periodically through 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, due date | 2029 | 2029 |
Fair Value | American & Foreign Power Company, Inc. 5% debentures, due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, due date | 2030 | 2030 |
Interest rate on senior notes | 5.00% | 5.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Purchases under the agreement | $ 541,000,000 | $ 531,000,000 | $ 593,000,000 |
Payments for legal settlements | $ 900,000 | ||
Payments for legal settlements term | 10 days | ||
Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Losses for environmental liabilities | $ 10,000,000 | ||
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Losses for environmental liabilities | $ 20,000,000 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) € in Millions | 3 Months Ended | |
Sep. 24, 2016Group | Dec. 28, 2019EUR (€) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of disposal groups | Group | 4 | |
Discontinued Operations | European Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Warranties on sale and purchase agreement | € | € 10 |
Major Component of Discontinued
Major Component of Discontinued Operations, Net of Tax (Detail) - Discontinued Operations, Held-for-Sale - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales | $ 115 | $ 512 |
Cost of goods sold and occupancy costs | 88 | 411 |
Operating expenses | 21 | 102 |
Restructuring charges | 1 | 2 |
Interest income | 1 | |
Other expense, net | (1) | |
Net (increase) reduction of loss on discontinued operations held for sale | (1) | 44 |
Net gain (loss) on sale of discontinued operations | (4) | 4 |
Income tax expense (benefit) | (6) | 11 |
Discontinued operations, net of tax | $ 5 | $ 35 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 28, 2019 | [1] | Sep. 28, 2019 | [1] | Jun. 29, 2019 | [1] | Mar. 30, 2019 | [1] | Dec. 29, 2018 | [1] | Sep. 29, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 2,508 | $ 2,782 | $ 2,588 | $ 2,769 | $ 2,670 | $ 2,887 | $ 2,628 | $ 2,830 | $ 10,647 | $ 11,015 | $ 10,240 | ||||||||
Gross profit | 571 | 667 | 585 | 641 | 602 | 686 | 596 | 667 | 2,464 | 2,551 | 2,461 | ||||||||
Operating income (loss) | 74 | [2] | 108 | [2] | (15) | [2] | 24 | [2] | 24 | [3] | 105 | [3] | 48 | [3] | 77 | [3] | 191 | 254 | 327 |
Net income (loss) from continuing operations | (14) | [4] | 60 | [4] | 19 | [4] | 33 | [4] | 99 | 99 | 146 | ||||||||
Discontinued operations, net of tax | (3) | 8 | 5 | 35 | |||||||||||||||
Net income (loss) | $ 55 | $ 60 | $ (24) | $ 8 | $ (14) | $ 60 | $ 16 | $ 41 | $ 99 | $ 104 | $ 181 | ||||||||
Net earnings (loss) per share | |||||||||||||||||||
Net basic earnings (loss) per share | $ 0.10 | [5] | $ 0.11 | [5] | $ (0.04) | [5] | $ 0.01 | [5] | $ (0.02) | [5] | $ 0.11 | [5] | $ 0.03 | [5] | $ 0.07 | [5] | $ 0.18 | $ 0.19 | $ 0.35 |
Net diluted earnings (loss) per share | 0.10 | [5] | 0.11 | [5] | (0.04) | [5] | 0.01 | [5] | (0.02) | [5] | 0.11 | [5] | 0.03 | [5] | 0.07 | [5] | 0.18 | 0.19 | 0.34 |
Basic Earnings Per Share | |||||||||||||||||||
Continuing operations | (0.02) | [5] | 0.11 | [5] | 0.03 | [5] | 0.06 | [5] | 0.18 | 0.18 | 0.28 | ||||||||
Discontinued operations | 0.01 | [5] | 0.01 | 0.07 | |||||||||||||||
Net basic earnings (loss) per share | 0.10 | [5] | 0.11 | [5] | (0.04) | [5] | 0.01 | [5] | (0.02) | [5] | 0.11 | [5] | 0.03 | [5] | 0.07 | [5] | 0.18 | 0.19 | 0.35 |
Diluted Earnings Per Share | |||||||||||||||||||
Continuing operations | (0.02) | [5] | 0.11 | [5] | 0.03 | [5] | 0.06 | [5] | 0.18 | 0.18 | 0.27 | ||||||||
Discontinued operations | 0.01 | [5] | 0.01 | 0.06 | |||||||||||||||
Net diluted earnings (loss) per share | $ 0.10 | [5] | $ 0.11 | [5] | $ (0.04) | [5] | $ 0.01 | [5] | $ (0.02) | [5] | $ 0.11 | [5] | $ 0.03 | [5] | $ 0.07 | [5] | $ 0.18 | $ 0.19 | $ 0.34 |
[1] | Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. | ||||||||||||||||||
[2] | Includes Merger and restructuring expenses, net totaling $14 million, $69 million, $22 million and $11 million in the first, second, third and fourth quarters of 2019, respectively. | ||||||||||||||||||
[3] | Includes Merger and restructuring expenses, net totaling $17 million, $14 million, $14 million and $27 million in the first, second, third and fourth quarters of 2018, respectively. The fourth quarter of 2018 also includes asset impairments of $7 million and a legal expense of $25 million. | ||||||||||||||||||
[4] | Includes a loss on debt modification of $15 million and a tax benefit of $4 million due to a book-to-tax basis difference related to the sale of Clearpath Holdings, LLC in the fourth quarter of 2018. | ||||||||||||||||||
[5] | The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding. |
Schedule of Quarterly Financi_2
Schedule of Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Data [Line Items] | |||||||||||
Merger and restructuring expenses (income), net | $ 11 | $ 22 | $ 69 | $ 14 | $ 27 | $ 14 | $ 14 | $ 17 | $ 116 | $ 72 | $ 94 |
Asset impairments | $ 6 | $ 5 | $ 16 | $ 29 | 7 | $ 56 | 7 | $ 4 | |||
Legal expense | 25 | 25 | |||||||||
Loss on extinguishment and modification of debt | (15) | $ (15) | |||||||||
Clearpath Holdings, LLC | |||||||||||
Quarterly Financial Data [Line Items] | |||||||||||
Tax Benefit | $ 4 |