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ODP ODP Corporation

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 27, 2021Apr. 28, 2021
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 27,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Trading SymbolODP
Entity Registrant NameThe ODP Corporation
Entity Central Index Key0000800240
Entity Current Reporting StatusYes
Current Fiscal Year End Date--12-25
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Common Stock, Shares Outstanding54,747,823
Entity Shell Companyfalse
Entity File Number1-10948
Entity Tax Identification Number85-1457062
Entity Address, Address Line One6600 North Military Trail
Entity Address, City or TownBoca Raton
Entity Address, State or ProvinceFL
Entity Address, Postal Zip Code33496
City Area Code561
Local Phone Number438-4800
Document Quarterly Reporttrue
Document Transition Reportfalse
Entity Interactive Data CurrentYes
Entity Incorporation, State or Country CodeDE
Title of 12(b) SecurityCommon Stock, par value $0.01 per share
Security Exchange NameNASDAQ

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Sales:
Total sales $ 2,366 $ 2,725
Cost of goods and occupancy costs:
Total cost of goods and occupancy costs1,832 2,096
Gross profit534 629
Selling, general and administrative expenses453 521
Asset impairments12 12
Merger, restructuring and other operating expenses, net14 16
Operating income55 80
Other income (expense):
Interest income3
Interest expense(7)(18)
Other income, net11 1
Income before income taxes59 66
Income tax expense6 21
Net income $ 53 $ 45
Earnings per share
Basic $ 0.99 $ 0.86
Diluted $ 0.95 $ 0.84
Product
Sales:
Total sales $ 2,051 $ 2,337
Cost of goods and occupancy costs:
Total cost of goods and occupancy costs1,609 1,828
Service
Sales:
Total sales315 388
Cost of goods and occupancy costs:
Total cost of goods and occupancy costs $ 223 $ 268

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income $ 53 $ 45
Other comprehensive income (loss), net of tax, where applicable:
Foreign currency translation adjustments5 (41)
Other(1)
Total other comprehensive income (loss), net of tax, where applicable5 (42)
Comprehensive income $ 58 $ 3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in MillionsMar. 27, 2021Dec. 26, 2020
Current assets:
Cash and cash equivalents $ 753 $ 729
Receivables, net687 631
Inventories929 930
Prepaid expenses and other current assets75 65
Total current assets2,444 2,355
Property and equipment, net546 576
Operating lease right-of-use assets1,096 1,170
Goodwill677 609
Other intangible assets, net357 357
Deferred income taxes156 162
Other assets322 329
Total assets5,598 5,558
Current liabilities:
Trade accounts payable959 919
Accrued expenses and other current liabilities1,141 1,138
Income taxes payable6 12
Short-term borrowings and current maturities of long-term debt23 24
Total current liabilities2,129 2,093
Deferred income taxes and other long-term liabilities201 197
Pension and postretirement obligations, net41 43
Long-term debt, net of current maturities344 354
Operating lease liabilities923 991
Total liabilities3,638 3,678
Commitments and contingencies
Stockholders' equity:
Common stock — authorized 80,000,000 shares of $0.01 par value; issued shares — 64,604,629 at March 27, 2021 and 62,551,255 at December 26, 2020; outstanding shares — 54,747,436 at March 27, 2021 and 52,694,062 at December 26, 20201 1
Additional paid-in capital2,697 2,675
Accumulated other comprehensive loss(27)(32)
Accumulated deficit(356)(409)
Treasury stock, at cost — 9,857,193 shares at March 27, 2021 and December 26, 2020(355)(355)
Total stockholders' equity1,960 1,880
Total liabilities and stockholders’ equity $ 5,598 $ 5,558

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / sharesMar. 27, 2021Dec. 26, 2020
Statement Of Financial Position [Abstract]
Common stock, authorized80,000,000 80,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, issued shares64,604,629 62,551,255
Common stock, shares, outstanding54,747,436 52,694,062
Treasury stock, shares9,857,193 9,857,193

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Cash flows from operating activities:
Net income $ 53 $ 45
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization46 49
Charges for losses on receivables and inventories7 8
Asset impairments12 12
Compensation expense for share-based payments10 7
Deferred income taxes and deferred tax asset valuation allowances6 24
Changes in working capital and other operating activities(48)43
Net cash provided by operating activities86 188
Cash flows from investing activities:
Capital expenditures(13)(25)
Businesses acquired, net of cash acquired(28)(18)
Proceeds from collection of notes receivable818
Other investing activities8 1
Net cash provided by (used in) investing activities(33)776
Cash flows from financing activities:
Net payments on long and short-term borrowings(6)(25)
Debt retirement(735)
Cash dividends on common stock(13)
Share purchases for taxes, net of proceeds from employee share-based transactions(23)(4)
Repurchase of common stock for treasury(30)
Other financing activities(1)(1)
Net cash used in financing activities(30)(808)
Effect of exchange rate changes on cash and cash equivalents1 (12)
Net increase in cash and cash equivalents24 144
Cash, cash equivalents and restricted cash at beginning of period729 700
Cash, cash equivalents and restricted cash at end of period753 844
Supplemental information on non-cash investing and financing activities
Right-of-use assets obtained in exchange for new finance lease liabilities3
Right-of-use assets obtained in exchange for new operating lease liabilities11 $ 54
Business acquired in exchange for common stock issuance $ 35

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in MillionsTotalBuyerQuest AcquisitionAdjustment for Adoption of Accounting StandardCommon StockCommon StockBuyerQuest AcquisitionAdditional Paid-in CapitalAdditional Paid-in CapitalBuyerQuest AcquisitionAccumulated Other Comprehensive LossAccumulated DeficitAccumulated DeficitAdjustment for Adoption of Accounting StandardTreasury Stock
Balance at Dec. 28, 2019 $ 2,173 $ (1) $ 1 $ 2,652 $ (66) $ (89) $ (1) $ (325)
Balance, Shares at Dec. 28, 201962,042,477
Net income45 45
Other comprehensive income (loss)(42)(42)
Exercise and release of incentive stock (including income tax benefits and withholding)(4)(4)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)426,591
Amortization of long-term incentive stock grants7 7
Dividends paid on common stock(13)(13)
Repurchase of common stock(30)(30)
Balance at Mar. 28, 20202,135 $ 1 2,642 (108)(45)(355)
Balance, Shares at Mar. 28, 202062,469,068
Balance at Dec. 26, 20201,880 $ 1 2,675 (32)(409)(355)
Balance, Shares at Dec. 26, 202062,551,255
Net income53 53
Other comprehensive income (loss)5 5
Exercise and release of incentive stock (including income tax benefits and withholding)(23)(23)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)1,225,876
Amortization of long-term incentive stock grants10 10
Common stock issuance related to the BuyerQuest acquisition $ 35 $ 35
Common stock issuance related to the BuyerQuest acquisition, (in shares)827,498
Balance at Mar. 27, 2021 $ 1,960 $ 1 $ 2,697 $ (27) $ (356) $ (355)
Balance, Shares at Mar. 27, 202164,604,629

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical)3 Months Ended
Mar. 28, 2020$ / shares
Statement Of Stockholders Equity [Abstract]
Dividend paid on common stock, per share $ 0.25

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES3 Months Ended
Mar. 27, 2021
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESNOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The ODP Corporation, including its consolidated subsidiaries (“ODP” or the “Company”), At March 27, 2021, the Company had three reportable segments (or “Divisions”): Business Solutions Division, Retail Division and CompuCom Division. The Condensed Consolidated Financial Statements as of March 27, 2021, and for the 13-week period ended March 27, 2021 (also referred to as the “first quarter of 2021”) and March 28, 2020 (also referred to as the “first quarter of 2020”) are unaudited. However, in management’s opinion, these Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature necessary to provide a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. Business acquisitions in 2020 and 2021 are included prospectively from the date of acquisition, thus affecting the comparability of the Company’s financial statements for all periods presented in this report on Form 10-Q. The Company has prepared the Condensed Consolidated Financial Statements included herein pursuant to the rules and regulations of the SEC. Some information and note disclosures, which would normally be included in comprehensive annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), have been condensed or omitted pursuant to those SEC rules and regulations. The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. For a better understanding of the Company and its Condensed Consolidated Financial Statements, the Company recommends reading these Condensed Consolidated Financial Statements in conjunction with the audited financial statements, which are included in the Company’s 2020 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year. After obtaining approval of the Company’s shareholders on May 11, 2020, the Company’s Board of Directors determined to set a reverse stock split ratio of 1-for-10 CASH MANAGEMENT The cash management process generally utilizes zero balance accounts which provide for the settlement of the related disbursement and cash concentration accounts on a daily basis. Amounts not yet presented for payment to zero balance disbursement accounts of $12 million and $23 million at March 27, 2021 and December 26, 2020, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities. At March 27, 2021 and December 26, 2020, cash and cash equivalents held outside the United States amounted to $144 million and $159 million, respectively. 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. There was no restricted cash at both March 27, 2021 and December 26, 2020. NEW ACCOUNTING STANDARDS Standards that were adopted: Defined benefit plan : In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The Company adopted this accounting standards update on the first day of the first quarter of 2021 with no material impact on its Condensed Consolidated Financial Statements. Income Taxes : In December 2019, the FASB issued an accounting standards update that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The accounting standards update also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The Company adopted this accounting standards update on the first day of the first quarter of 2021 with no material impact on its Condensed Consolidated Financial Statements

ACQUISITIONS

ACQUISITIONS3 Months Ended
Mar. 27, 2021
Business Combinations [Abstract]
ACQUISITIONSNOTE 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 is evolving its B2B business to include a new digital procurement platform focused on transforming the B2B procurement and sourcing industry. On January 29, 2021, in connection with the Company’s development efforts in this area, the Company acquired BuyerQuest Holdings, Inc. (“BuyerQuest”), a business services software company with an eProcurement platform for approximately $71 million, subject to customary post-closing adjustments. The purchase consideration for BuyerQuest includes $61 million paid at closing, funded with $26 million of cash on hand and the issuance of 827,498 shares of the Company’s common stock, and up to $10 million contingent consideration that will be payable over a two-year As part of its transformation, the Company continues to acquire profitable regional office supply distribution businesses to expand its reach and distribution network into geographic areas that were previously underserved. During the first quarter of 2021, the Company acquired one small independent regional office supply distribution business for approximately $2 million funded with cash on hand, subject to customary post-closing adjustments. The acquisitions were treated as purchases in accordance with ASC 805, Business Combinations (“ASC 805”) which requires allocation of the purchase price to the estimated fair values of assets and liabilities acquired in the transactions including goodwill and other intangible assets. The Company has performed a preliminary purchase price allocation of the aggregate purchase price to the estimated fair values of assets and liabilities acquired in the transactions. The preliminary purchase price allocation for BuyerQuest includes $6 million of technology intangible assets and $67 million of goodwill. The preliminary purchase price allocation for the acquired office supply distribution business includes $1 million of goodwill. An immaterial amount of the aggregate purchase price was allocated to working capital accounts. These assets and liabilities are included in the Condensed Consolidated Balance Sheet as of March 27, 2021. As additional information is obtained about these assets and liabilities within the measurement period (not to exceed one year from the dates of acquisition), the Company will refine its estimates of fair value to allocate the purchase price. The operating results of the acquired businesses are combined with the Company’s operating results subsequent to their purchase dates. The operating results of the acquired office supply distribution business are included in the Business Solutions Division, and the operating results of BuyerQuest are included in Other, as described in Note 5. 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. Based on new information received, the preliminary purchase price allocations of the companies acquired in 2020 have been adjusted during the respective measurement periods. These adjustments were insignificant individually and in the aggregate to the Company’s Condensed Consolidated Financial Statements. The measurement periods for acquisitions completed in the first quarter of 2020 closed within the first quarter of 2021. 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, restructuring and other operating expenses, net line in the Condensed Consolidated Statements of Operations. Refer to Note 3 for additional information about the merger, restructuring and other operating expenses incurred during the first quarter of 2021.

MERGER, RESTRUCTURING AND OTHER

MERGER, RESTRUCTURING AND OTHER ACTIVITY3 Months Ended
Mar. 27, 2021
Merger Restructuring And Other Activity [Abstract]
MERGER, RESTRUCTURING AND OTHER ACTIVITYNOTE 3. MERGER, RESTRUCTURING AND OTHER ACTIVITY Since 2017, the Company has taken actions to optimize its asset base and drive operational efficiencies. These actions include acquiring profitable businesses, closing underperforming retail stores and non-strategic distribution
First Quarter
(In millions)
2021
2020
Merger and transaction related expenses
Transaction and integration
$
1
$
7
Total Merger and transaction related expenses
1
7
Restructuring expenses
Severance
1

Professional fees
1
6
Facility closure, contract termination, and other expenses, net
9
3
Total Restructuring expenses
11
9
Other operating expenses
Professional fees
2

Total Other operating expenses
2

Total Merger, restructuring and other operating expenses, net
$
14
$
16
MERGER AND TRANSACTION RELATED EXPENSES In the first quarters of 2021 and 2020, the Company incurred $1 million and $7 million of transaction and integration expenses, respectively. These expenses include legal, accounting, and other third-party expenses incurred in connection with acquisitions and business integration activities primarily related to the CompuCom Division in the first quarter of 2020, and to other acquisitions in the first quarter of 2021. RESTRUCTURING EXPENSES Maximize B2B Restructuring Plan In May 2020, the Company’s Board of Directors approved a restructuring plan to realign the Company’s operational focus to support its “business-to-business” solutions and IT services business units and improve costs (“Maximize B2B Restructuring Plan”). Implementation of the Maximize B2B Restructuring Plan is expected to be substantially completed by the end of 2023. The Maximize B2B Restructuring Plan aims to generate savings through optimizing the Company’s retail footprint, removing costs that directly support the Retail business and additional measures to implement a company-wide low-cost business model, which will then be invested in accelerating the growth of the Company’s business-to-business platform. The plan is broader than restructuring programs the Company has implemented in the past and includes closing and/or consolidating retail stores and distribution facilities and the reduction of up to 13,100 employee positions by the end of 2023. The Company is evaluating the number and timing of retail store and distribution facility closures and/or consolidations, however, it is generally understood that closures will approximate the store’s lease termination date. The Company closed 7 retail stores under the Maximize B2B Restructuring Plan during the first quarter of 2021. The Company had closed 70 retail stores and two distribution facilities prior to the first quarter of 2021 under the Maximize B2B Restructuring Plan. It is anticipated that additional retail stores will be closed in 2021. Total estimated restructuring costs related to the Maximize B2B Restructuring Plan are expected to be up to $143 million, comprised of:
(a)
severance costs of approximately $55 million;
(b)
facility closure costs of approximately $51 million, which are mainly related to retail stores; and
(c)
other costs, including contract termination costs, to facilitate the execution of the Maximize B2B Restructuring Plan of approximately $37 million. The total costs of up to $143 million above are expected to be cash expenditures through 2023 and funded primarily with cash on hand and cash from operations. The Company incurred $92 million in restructuring expenses to implement the Maximize B2B Restructuring Plan since its inception in 2020 through the end of the first quarter of 2021, of which $33 million were cash expenditures funded primarily with cash on hand and cash from operations. In the first quarter of 2021, the Company incurred $11 facility closure , contract termination and other costs . The facility closure costs were mainly related to retail store closure accruals, and other costs mainly related to gains and losses on asset dispositions, and accelerated depreciation. Of these amounts , $ 5 million were cash expenditures in the first quarter of 202 1 . Other Included in restructuring expenses in the first quarter of 2020 were costs incurred in connection with the Business Acceleration Program, a program which was announced in 2019 and concluded at the end of 2020. These costs included third-party professional fees, retail and facility closure costs and other. OTHER OPERATING EXPENSES CompuCom strategic alternatives review In January 2021, the Company’s Board of Directors announced that as a result of a business review of CompuCom, management has initiated a process to explore a value-maximizing sale of the Company’s CompuCom Division to maximize CompuCom’s full potential and drive forward its future value and success. The Company incurred $1 USR Parent, Inc. proposals During the first quarter of 2021, the Company received two proposals from USR Parent, Inc., the parent company of Staples Inc. and a portfolio company of Sycamore Partners, to acquire 100% of the Company’s issued and outstanding stock or certain assets of the Company. After careful review and consideration of the proposals and in consultation with the Company’s financial and legal advisors, the Company’s Board of Directors unanimously concluded that the transactions described in the proposals were not in the best interest of the Company and its shareholders, and that there was a more compelling path forward to create value. The Company filed statements on Schedule 14D-9 with the SEC on January 19, 2021 and March 15, 2021 containing its Board of Directors’ recommendation. The Company incurred $1 On March 31, 2021, USR Parent, Inc. publicly announced that it decided to defer the March 2021 launch of a tender offer for the Company’s common stock while reserving the right to commence one in the future. The Company has received no additional communications from USR Parent, Inc. since USR Parent Inc.’s March 31 public communication. Accordingly, in order to relieve the Company from the continuation of a costly and burdensome process, the FTC has agreed to defer requiring further responses from the Company unless and until USR Parent, Inc. formally launches a tender offer or the parties execute a negotiated agreement. Additionally, on May 4, 2021 the Canadian Competition Bureau (the “Bureau”) advised the Company that it has determined that USR Parent, Inc.’s proposed acquisition of the Company would likely result in a substantial lessening or prevention of competition in the sale of business essentials to enterprise customers in Canada. While it is not known for certain what the Bureau would do if USR Parent, Inc. actually launches a tender offer in the future, the Bureau’s determination signals that the Bureau would likely challenge the acquisition. The Company cannot be certain that USR Parent, Inc. will not commence a tender offer in the future. The Company a nticipates that it will incur additional significant legal and other expenses in the future if USR Parent, Inc. pursues a tender offer. MERGER, RESTRUCTURING AND OTHER ACCRUALS The activity in the merger, restructuring and other accruals in the first quarter of 2021 is presented in the table below. Certain merger, restructuring and other 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.
Balance as of
Balance as of
December 26,
Charges
Cash
March 27,
(In millions)
2020
Incurred
Payments
2021
Termination benefits:
Maximize B2B Restructuring Plan
30

(2
)
28
Business Acceleration Program
8


8
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals
1


1
Maximize B2B Restructuring Plan
10
5
(3
)
12
Business Acceleration Program
1

(1
)

Comprehensive Business Review
2


2
CompuCom strategic alternatives review

1

1
USR Parent, Inc. proposals

1

1
Total
$
52
$
7
$
(6
)
$
53
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 Condensed Consolidated Balance Sheets.

REVENUE RECOGNITION

REVENUE RECOGNITION3 Months Ended
Mar. 27, 2021
Revenue From Contract With Customer [Abstract]
REVENUE RECOGNITIONNOTE 4. REVENUE RECOGNITION PRODUCTS AND SERVICES REVENUE The following table provides information about disaggregated revenue by Division, and major products and services categories.
First Quarter of 2021
(In millions)
Business Solutions Division
Retail Division
CompuCom Division
Other
Total
Major products and services categories
Products
Supplies
$
574
$
361
$

$
2
$
937
Technology
309
439
49

797
Furniture and other
175
138

4
317
Services
Technology

6
146
(2
)
150
Copy, print, and other
69
95
1

165
Total
$
1,127
$
1,039
$
196
$
4
$
2,366
First Quarter of 2020
(In millions)
Business Solutions Division
Retail Division
CompuCom Division
Other
Total
Major products and services categories
Products
Supplies
$
754
$
420
$

$
2
$
1,176
Technology
317
482
63

$
862
Furniture and other
176
122

1
$
299
Services
Technology

9
169
(3
)
$
175
Copy, print, and other
87
123
3

$
213
Total
$
1,334
$
1,156
$
235
$

$
2,725
Products revenue includes the sale of:

Supplies such as paper, writing instruments, office supplies, cleaning and breakroom items, and personal protective equipment;

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 information technology (“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 technology service category is end user computing, which provides on-site services to assist corporate end users with their IT needs. Services are either billed on a rate per hour, per event, or per user, or on a fixed recurring basis. For the majority of technology service offerings contracts, the Company has the right to invoice the customer for 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 for 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 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 deferred revenue 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 March 27, 2021 and December 26, 2020, the Company had $11 million and $12 million of deferred revenue related to the loyalty program, respectively, which is included in Accrued expenses and other current liabilities in the Condensed 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 Condensed 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 Condensed Consolidated Balance Sheets. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:
March 27,
December 26,
(In millions)
2021
2020
Trade receivables, net
$
548
$
501
Short-term contract assets
17
15
Long-term contract assets
14
15
Short-term contract liabilities
55
50
Long-term contract liabilities
3
4
In the first quarters of 2021 and 2020, the Company did not have any contract assets related to conditional rights. The Company recognized revenues of $22 significant adjustments to revenue from performance obligations satisfied in previous periods and there were contract assets recognized 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 current 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 March 27, 2021 and December 26, 2020, capitalized acquisition costs amounted to $31 million and $30 million, respectively, and are reflected in short-term contract assets and long-term contract assets in the table above. In the first quarters of 2021 and 2020, amortization expense was $6 had as here is uncertainty regarding the impacts of COVID-19, the novel coronavirus on the global and national economies, which could negatively affect the Company’s customers and result in future impairments of contract assets.

SEGMENT INFORMATION

SEGMENT INFORMATION3 Months Ended
Mar. 27, 2021
Segment Reporting [Abstract]
SEGMENT INFORMATIONNOTE 5. SEGMENT INFORMATION At The retained global sourcing operations previously included in the former International Division are not significant and have been presented as Other. The operating results of BuyerQuest are not significant in the first quarter of 2021 and are included in Other since its acquisition on January 29, 2021. Also included in Other is the elimination of intersegment revenues of $4 million for both the first quarter of 2021 and the first quarter of 2020. 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. The accounting policies for each segment are the same as those described in Note 1 of the 2020 Form 10-K. Division operating income is determined based on the measure of performance reported internally to manage the business and for resource allocation. This measure charges to the respective Divisions those expenses considered directly or closely related to their operations and allocates support costs. Certain operating expenses and credits are not allocated to the Business Solutions Division, the Retail Division or the CompuCom Division, including asset impairments and merger, restructuring and other operating 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. The following is a summary of sales and operating income (loss) by each of the Divisions and Other, reconciled to consolidated totals.
Sales
First Quarter
(In millions)
2021
2020
Business Solutions Division
$
1,127
$
1,334
Retail Division
1,039
1,156
CompuCom Division
196
235
Other
4

Total
$
2,366
$
2,725
Division Operating Income (Loss)
First Quarter
(In millions)
2021
2020
Business Solutions Division
$
17
$
40
Retail Division
100
87
CompuCom Division
(1
)
3
Other


Total
$
116
$
130
A reconciliation of the measure of Division operating income to Consolidated income before income taxes is as follows:
First Quarter
(In millions)
2021
2020
Total Divisions operating income
$
116
$
130
Add/(subtract):
Asset impairments
(12
)
(12
)
Merger, restructuring and other operating expenses, net
(14
)
(16
)
Unallocated expenses
(35
)
(22
)
Interest income

3
Interest expense
(7
)
(18
)
Other income, net
11
1
Income before income taxes
$
59
$
66
The components of goodwill by segment are provided in the following table:
Business Solutions
Retail
CompuCom
(In millions)
Division
Division
Division
Other
Total
Balance as of December 26, 2020
$
316
$
78
$
215
$

$
609
Acquisitions
1


67
68
Balance as of March 27, 2021
$
317
$
78
$
215
$
67
$
677
Additions to goodwill relate to acquisitions made during the first quarter of 2021, as well as the impact of purchase accounting adjustments associated with 2020 acquisitions. As disclosed in Note 2, these adjustments were insignificant individually and in the aggregate to the Company’s Condensed Consolidated Financial Statements. Refer to Note 2 for additional information on the acquisitions made during the first quarter of 2021. Goodwill and indefinite-lived intangible assets are tested for impairment annually as of the first day of fiscal December or more frequently when events or changes in circumstances indicate that impairment may have occurred. T he most recent annual impairment assessment was performed during the fourth quarter of 2020, using a quantitative assessment for all reporting units. The quantitative assessment combined the income approach and the market approach valuation methodologies and concluded that the fair value of all the Company’s reporting units exceed their carrying amounts. The margin of passage for the CompuCom and Contract reporting units during this assessment were approximately 12%. The Company is monitoring the performance of its CompuCom and Contract reporting units which continued to experience the negative impacts of COVID-19 during the first quarter of 2021 . The CompuCom and Contract reporting units’ operating performance and future outlook are in line with the Company’s forecasts used in determining the fair value estimates in the most recent quantitative annual impairment test. Accordingly, there are no impairment indicators identified for these reporting units as of March 27 , 202 1 . The Company also did not identify indicators of impairment related to its other reporting units, which mainly serve consumers through its retail stores and eCommerce platform and have been performing in accordance with forecasts. The Company will continue to evaluate the recoverability of goodwill at the reporting unit level on an annual basis and whenever events or changes in circumstances indicate there may be a potential impairment . If the operating results of the Company’s reporting units deteriorate in the future, it may cause the fair value of one or more of the reporting units to fall below their carrying amount, resulting in additional goodwill impairment charges.

INCOME TAXES

INCOME TAXES3 Months Ended
Mar. 27, 2021
Income Tax Disclosure [Abstract]
INCOME TAXESNOTE 6. INCOME TAXES During 2021 and 2020, the mix of income and losses across jurisdictions, although still applicable, has become less of a factor in influencing the Company’s effective tax rates due to limited international operations and improved operating results. As a result, the Company’s effective tax rates are 10% for the first quarter of 2021 and 32% for the first quarter of 2020. In the first quarter of 2021, the Company recognized a large tax windfall associated with stock-based compensation awards and recognized tax benefits due to an agreement reached with the IRS related to a prior tax position. These two factors along with the impact of state taxes and the mix of income and losses across U.S. and non-U.S. jurisdictions caused the Company’s effective tax rate to differ from the statutory rate of 21%. In addition, the Company is recognizing tax benefits due to an agreement reached with the IRS related to a prior tax position. The Company’s effective tax rate in the prior period has varied considerably as a result of several primary factors including the mix of income and losses across U.S. and non-U.S. jurisdictions, the impact of excess tax deficiencies associated with stock-based compensation awards and the derecognition of valuation allowances against deferred tax assets that were not more-likely-than-not realizable in the U.S. and certain non-U.S. jurisdictions. Changes in pretax income projections and the mix of income across jurisdictions could impact the effective tax rates in future quarters. The Company continues to have a U.S. valuation allowance for certain U.S. federal credits and state tax attributes, which relates to deferred tax assets that require 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 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 prior to 2018 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 prior to 2013. The Company’s U.S. federal income tax return for 2019 is currently under review. Generally, the Company is subject to routine examination for years 2013 and forward in its international tax jurisdictions. It is anticipated that $1 million of tax positions will be resolved within the next 12 months. 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.

EARNINGS PER SHARE

EARNINGS PER SHARE3 Months Ended
Mar. 27, 2021
Earnings Per Share [Abstract]
EARNINGS PER SHARENOTE 7. EARNINGS PER SHARE As disclosed in Note 1, a 1-for-10 reverse stock split of the Company’s outstanding shares of common stock and a reduction in the number of authorized shares of the Company’s common stock by a corresponding ratio became effective on June 30, 2020. All share and per share amounts have been retroactively adjusted for the prior period presented to give effect to this reverse stock split. The following table represents the calculation of earnings per common share – basic and diluted:
First Quarter
(In millions, except per share amounts)
2021
2020
Basic Earnings Per Share
Numerator:
Net income
$
53
$
45
Denominator:
Weighted-average shares outstanding
53
53
Basic earnings per share
$
0.99
$
0.86
Diluted Earnings Per Share
Numerator:
Net income
$
53
$
45
Denominator:
Weighted-average shares outstanding
53
53
Effect of dilutive securities:
Stock options and restricted stock
3
1
Diluted weighted-average shares outstanding
56
54
Diluted earnings per share
$
0.95
$
0.84
Awards of stock options and nonvested shares representing additional shares of outstanding common stock were less than 1 million in the first quarters of 2021 and 2020, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive.

DEBT

DEBT3 Months Ended
Mar. 27, 2021
Debt Disclosure [Abstract]
DEBTNOTE 8. DEBT On April 17, 2020, the Company entered into the Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”), which provides for a $1.2 billion asset-based revolving credit facility and a $100 million asset-based first-in, last-out term loan facility (the “FILO Term Loan Facility”), for an aggregate principal amount of up to $1.3 billion (the “New Facilities”). The New Facilities mature on April 17, 2025. The Third Amended Credit Agreement replaced the Company’s then existing amended and restated credit agreement that was due to mature in May 2021. As provided by the Third Amended Credit Agreement, available amounts that can be borrowed at any given time are based on percentages of certain outstanding accounts receivable, credit card receivables, inventory, cash value of company-owned life insurance policies, and certain specific real estate of the Company. At March 27, 2021, the Company had no revolving loans outstanding, $100 million of outstanding FILO Term Loan Facility loans, $54 million of outstanding standby letters of credit, and $946 million of available credit under the Third Amended Credit Agreement. The Company was

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY3 Months Ended
Mar. 27, 2021
Equity [Abstract]
STOCKHOLDERS' EQUITYNOTE 9. STOCKHOLDERS’ EQUITY Accumulated other comprehensive loss activity, net of tax, where applicable, is provided in the following table:
Foreign
Change in
Currency
Deferred
Translation
Pension and
(In millions)
Adjustments
Other
Total
Balance at December 26, 2020
$
(27
)
$
(5
)
$
(32
)
Other comprehensive income activity
5

5
Balance at March 27, 2021
$
(22
)
$
(5
)
$
(27
) TREASURY STOCK In November 2018, the Board of Directors approved a stock repurchase program of up to $100 million of its common stock effective January 1, 2019, which extended until the end of 2020. In November 2019, the Board of Directors approved an increase in the authorization of the existing stock repurchase program of up to $200 million, which included the remaining authorized amount under the existing stock repurchase program and extended the program through the end of 2021. As a result of the continued economic uncertainty due to COVID-19, the Board of Directors temporarily suspended the stock repurchase program in May 2020, however, the stock repurchase authorization remained effective. In November 2020, the Board of Directors approved the resumption of the stock repurchase program beginning in the fourth quarter of 2020, which was set to run through the end of 2021. The Company did not purchase any shares of its common stock in the first quarter of 2021. As of March 27, 2021, $130 million remains available for stock repurchases under the current stock repurchase program. In May 2021, the Board of Directors approved a new stock repurchase program of up to $300 million, available through June 30, 2022, which replaces the current $200 million stock repurchase program. The new authorization may be suspended or discontinued at any time. The exact number and timing of stock repurchases will depend on market conditions and other factors, and will be funded through available cash balances. At March 27, 2021, there were 10 million shares of common stock held in treasury. The Company’s Third Amended Credit Agreement permits restricted payments, such as common stock repurchases, but may be limited if the Company does not meet the required minimum liquidity or fixed charge coverage ratio requirements. Refer to Note 8 for additional information about the Company’s compliance with covenants. DIVIDENDS ON COMMON STOCK In May 2020, in order to preserve liquidity during the COVID-19 pandemic and in light of the uncertainties as to its duration and economic impact, the Company’s Board of Directors temporarily suspended the Company’s quarterly cash dividend beginning in the second quarter of 2020. There was no quarterly cash dividend declared and paid in the first quarter of 2021. The Company’s quarterly cash dividend remains temporarily suspended. Refer to Note 8 for additional information about the Company’s compliance with covenants.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS3 Months Ended
Mar. 27, 2021
Compensation And Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANSNOTE 10. EMPLOYEE BENEFIT PLANS PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS – NORTH AMERICA The components of net periodic pension benefit for the Company’s North America pension plans are as follows:
First Quarter
(In millions)
2021
2020
Service cost
$

$

Interest cost
5
7
Expected return on plan assets
(7
)
(8
)
Net periodic pension benefit
$
(2
)
$
(1
) During the first quarter of 2021, $1 million of cash contributions were made to the North America pension plans. The Company expects to make additional cash contributions of approximately $1 million to the North America pension plans during the remainder of 2021. PENSION PLAN – UNITED KINGDOM The components of net periodic pension benefit for the Company’s pension plan in the United Kingdom (“UK”) are as follows:
First Quarter
(In millions)
2021
2020
Service cost
$

$

Interest cost
1
1
Expected return on plan assets
(1
)
(1
)
Net periodic pension benefit
$

$

The UK pension plan is in a net asset position. During the first quarter of 2021, cash contributions of $1 Net periodic pension benefits for the North America and UK pension plans and other postretirement benefit plans (the “Plans”) are recorded at the Corporate level. The service cost for the Plans are reflected in Selling, general and administrative expenses, and the other components of net periodic pension benefits

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS3 Months Ended
Mar. 27, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTSNOTE 11. FAIR VALUE MEASUREMENTS 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 under current market conditions. 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 the Company’s own estimates and assumptions or those expected to be used by market participants. 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. In the first quarter of 2021, 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 future retail store closures as part of the Company’s restructuring programs, including the probability of closure at the retail store level. While it is generally understood that closures will approximate the store’s lease termination date, it is possible that changes in store performance or other conditions could result in future changes in assumptions utilized. 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. The Company also analyzed the impact of the COVID-19 pandemic on store asset recoverability. Due to the nature of products sold, the retail stores were considered to be essential by most local jurisdictions and as a result, the substantial majority of these retail stores have remained open and operational with the appropriate safety measures in place since the beginning of the COVID-19 outbreak, including a curbside pickup option. Since late in the first quarter of 2020, the Company has temporarily reduced retail location hours by two hours daily, which continues to be in effect at the majority of its retail locations. The Company’s recoverability assessment included evaluating the impact of these developments. 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 independent real estate valuation 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 first quarter of 20 2 1 impairment calculation were discounted at a weighted average discount rate of 8 %. The Company will continue to evaluate initiatives to improve performance and lower operating costs. There is uncertainty regarding the impact of the COVID-19 pandemic on the future results of operations, including the forecast period used in the recoverability analysis. 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 the first quarter of 2021, the impairment recognized reflects the Company’s best estimate of future performance. In addition to its retail store assets, the Company also regularly evaluates whether there are impairment indicators associated with its other long-lived assets, including those related to the CompuCom and Contract reporting units which were negatively impacted by the COVID-19 pandemic, as discussed in Note 5. The Company did not identify any impairment indicators for these long-lived assets as of March 27, 2021 and as a result there were no associated impairment charges. 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 values because of their short-term nature. The following table presents information about financial instruments at the balance sheet dates indicated.
March 27,
December 26,
2021
2020
Carrying
Fair
Carrying
Fair
(In millions)
Amount
Value
Amount
Value
Financial assets:
Company-owned life insurance
138
138
147
147
Financial liabilities:
Long-term debt:
New Facilities loans under the Third Amended Credit Agreement, due 2025
100
100
100
100
Revenue bonds, due in varying amounts periodically through 2029
176
177
176
177
American & Foreign Power Company, Inc. 5% debentures, due 2030
15
15
15
14
The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

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, which is the cash surrender value less any outstanding loans (Level 2 measure).

Long-term debt : Long-term 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). The carrying amount of the New Facilities loans under the Third Amended Credit Agreement approximates fair value because the interest rates vary with market interest rates. Refer to Note 8 for additional information about the Third Amended Credit Agreement.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES3 Months Ended
Mar. 27, 2021
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIESNOTE 12. COMMITMENTS AND CONTINGENCIES 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. On March 1, 2021, certain IT systems of CompuCom were affected by a malware incident which negatively impacted some services that CompuCom provides to certain of its customers. Since the malware incident, CompuCom has made significant progress in restoring operations and service delivery to its customers. While CompuCom has made significant progress in remediating its systems that were directly affected by the malware, CompuCom experienced down time due to temporarily suspending certain services to certain customers and as a result, had loss of service revenue of $3 million in the first quarter of 2021. The Company estimates that the total loss of service revenue due to the malware incident will be between $5 million and $8 million. In addition, the Company expects to incur expenses of up to $20 million, of which $10 million was accrued through the first quarter of 2021. These expense estimates are primarily related to CompuCom’s efforts to restore service delivery to impacted customers, costs to investigate and remediate the incident, increased expenditures for cyber protection, legal and other professional services related thereto, and to address certain other matters resulting from the incident. The Company carries insurance, including cyber insurance, which it believes to be commensurate with the Company’s size and the nature of its operations and expects that a portion of these costs may be covered by insurance. Certain CompuCom services were not impacted by the malware incident, and CompuCom continued to deliver certain services to those customers throughout March. CompuCom was able to substantially restore delivery capabilities as of March 17, 2021, and has restored its service delivery to substantially all of its customers as of the end of March 2021. As a part of the restoration efforts, CompuCom has taken actions to efficiently and securely restore service delivery to its customers while hardening its systems with enhanced security measures and advanced anti-malware agents. The Company is continuing to analyze the incident. That analysis could ultimately reveal that additional information was revealed or compromised. The Company will continue to evaluate information as it becomes known and will record an estimate for losses when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. Further, the Company may become subject to regulatory enforcement actions and litigation that could result in financial judgments or the payment of settlement amounts, and disputes with insurance carriers concerning coverage. In addition to the foregoing, OfficeMax is named as 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 March 27, 2021, 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, the Company’s estimated range of reasonably possible losses was approximately $15 million to $25 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS3 Months Ended
Mar. 27, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTSNOTE 13. SUBSEQUENT EVENTS In May 2021, the Company’s Board of Directors unanimously approved a plan to pursue a separation of the Company into two independent, publicly traded companies, expected to be structured as a tax-free spin-off of the Company’s B2B related operations, as further described below. Each company is expected to have a unique and highly focused strategy and investment profile, as follows:

ODP – a leading provider of retail consumer and small business products and services distributed via approximately 1,100 Office Depot and OfficeMax retail locations and an eCommerce presence, officedepot.com; and

NewCo – a leading B2B solutions provider serving small, medium and enterprise level companies, mainly consisting of the contract sales channel of the Business Solutions Division, which includes operations in Canada and the independent regional office supply distribution businesses within the U.S. that the Company has been acquiring since 2017. NewCo will also own the newly formed B2B digital platform technology business, including BuyerQuest, as well as the Company’s global sourcing office, and its other sourcing, supply chain and logistics assets. The separation is expected to allow ODP and NewCo to pursue market opportunities, accelerate growth and improve value for shareholders and stakeholders. While ODP and NewCo will be separate, independent companies, they will share commercial agreements that will allow them to continue to leverage scale benefits in such areas as product sourcing and supply chain. The separation is expected to occur through a tax-free stock dividend of shares of NewCo to ODP’s shareholders as of a record date to be determined by the Company’s board of directors, after which ODP shareholders will own 100% of the equity in both of the publicly traded companies. The separation is intended to be completed during the first half of 2022, subject to customary conditions, including final approval by the Company’s Board of Directors, opinions from tax counsel and a favorable ruling by the IRS on the tax-free nature of the transaction to the Company and to its shareholders, the filing and effectiveness of a registration statement with the U.S. Securities and Exchange Commission, the approved listing of NewCo’s common stock on a national securities exchange and the completion of any necessary financings. There can be no assurances regarding the ultimate timing of the separation or that the transaction will be completed.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)3 Months Ended
Mar. 27, 2021
Accounting Policies [Abstract]
Basis of PresentationBASIS OF PRESENTATION The ODP Corporation, including its consolidated subsidiaries (“ODP” or the “Company”), At March 27, 2021, the Company had three reportable segments (or “Divisions”): Business Solutions Division, Retail Division and CompuCom Division. The Condensed Consolidated Financial Statements as of March 27, 2021, and for the 13-week period ended March 27, 2021 (also referred to as the “first quarter of 2021”) and March 28, 2020 (also referred to as the “first quarter of 2020”) are unaudited. However, in management’s opinion, these Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature necessary to provide a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. Business acquisitions in 2020 and 2021 are included prospectively from the date of acquisition, thus affecting the comparability of the Company’s financial statements for all periods presented in this report on Form 10-Q. The Company has prepared the Condensed Consolidated Financial Statements included herein pursuant to the rules and regulations of the SEC. Some information and note disclosures, which would normally be included in comprehensive annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), have been condensed or omitted pursuant to those SEC rules and regulations. The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. For a better understanding of the Company and its Condensed Consolidated Financial Statements, the Company recommends reading these Condensed Consolidated Financial Statements in conjunction with the audited financial statements, which are included in the Company’s 2020 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year. After obtaining approval of the Company’s shareholders on May 11, 2020, the Company’s Board of Directors determined to set a reverse stock split ratio of 1-for-10
Cash ManagementCASH MANAGEMENT The cash management process generally utilizes zero balance accounts which provide for the settlement of the related disbursement and cash concentration accounts on a daily basis. Amounts not yet presented for payment to zero balance disbursement accounts of $12 million and $23 million at March 27, 2021 and December 26, 2020, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities. At March 27, 2021 and December 26, 2020, cash and cash equivalents held outside the United States amounted to $144 million and $159 million, respectively. 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. There was no restricted cash at both March 27, 2021 and December 26, 2020.
New Accounting StandardsNEW ACCOUNTING STANDARDS Standards that were adopted: Defined benefit plan : In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The Company adopted this accounting standards update on the first day of the first quarter of 2021 with no material impact on its Condensed Consolidated Financial Statements. Income Taxes : In December 2019, the FASB issued an accounting standards update that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The accounting standards update also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The Company adopted this accounting standards update on the first day of the first quarter of 2021 with no material impact on its Condensed Consolidated Financial Statements
Revenue RecognitionPRODUCTS AND SERVICES REVENUE The following table provides information about disaggregated revenue by Division, and major products and services categories.
First Quarter of 2021
(In millions)
Business Solutions Division
Retail Division
CompuCom Division
Other
Total
Major products and services categories
Products
Supplies
$
574
$
361
$

$
2
$
937
Technology
309
439
49

797
Furniture and other
175
138

4
317
Services
Technology

6
146
(2
)
150
Copy, print, and other
69
95
1

165
Total
$
1,127
$
1,039
$
196
$
4
$
2,366
First Quarter of 2020
(In millions)
Business Solutions Division
Retail Division
CompuCom Division
Other
Total
Major products and services categories
Products
Supplies
$
754
$
420
$

$
2
$
1,176
Technology
317
482
63

$
862
Furniture and other
176
122

1
$
299
Services
Technology

9
169
(3
)
$
175
Copy, print, and other
87
123
3

$
213
Total
$
1,334
$
1,156
$
235
$

$
2,725
Products revenue includes the sale of:

Supplies such as paper, writing instruments, office supplies, cleaning and breakroom items, and personal protective equipment;

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 information technology (“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 technology service category is end user computing, which provides on-site services to assist corporate end users with their IT needs. Services are either billed on a rate per hour, per event, or per user, or on a fixed recurring basis. For the majority of technology service offerings contracts, the Company has the right to invoice the customer for 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 JudgmentsREVENUE RECOGNITION AND SIGNIFICANT JUDGMENTS Revenue is recognized upon transfer of control of promised products or services to customers for 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 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 deferred revenue 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 March 27, 2021 and December 26, 2020, the Company had $11 million and $12 million of deferred revenue related to the loyalty program, respectively, which is included in Accrued expenses and other current liabilities in the Condensed 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 BalancesCONTRACT 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 Condensed 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 Condensed Consolidated Balance Sheets. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers:
March 27,
December 26,
(In millions)
2021
2020
Trade receivables, net
$
548
$
501
Short-term contract assets
17
15
Long-term contract assets
14
15
Short-term contract liabilities
55
50
Long-term contract liabilities
3
4
In the first quarters of 2021 and 2020, the Company did not have any contract assets related to conditional rights. The Company recognized revenues of $22 significant adjustments to revenue from performance obligations satisfied in previous periods and there were contract assets recognized 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 current 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 ContractCOSTS 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 March 27, 2021 and December 26, 2020, capitalized acquisition costs amounted to $31 million and $30 million, respectively, and are reflected in short-term contract assets and long-term contract assets in the table above. In the first quarters of 2021 and 2020, amortization expense was $6 had as here is uncertainty regarding the impacts of COVID-19, the novel coronavirus on the global and national economies, which could negatively affect the Company’s customers and result in future impairments of contract assets.

MERGER, RESTRUCTURING AND OTH_2

MERGER, RESTRUCTURING AND OTHER ACTIVITY (Tables)3 Months Ended
Mar. 27, 2021
Merger Restructuring And Other Activity [Abstract]
Summary of Major Components of Merger, Restructuring and Other Operating Expenses, NetThe table below summarizes the major components of Merger, restructuring and other operating expenses, net.
First Quarter
(In millions)
2021
2020
Merger and transaction related expenses
Transaction and integration
$
1
$
7
Total Merger and transaction related expenses
1
7
Restructuring expenses
Severance
1

Professional fees
1
6
Facility closure, contract termination, and other expenses, net
9
3
Total Restructuring expenses
11
9
Other operating expenses
Professional fees
2

Total Other operating expenses
2

Total Merger, restructuring and other operating expenses, net
$
14
$
16
Facility Closure and Severance CostsThe activity in the merger, restructuring and other accruals in the first quarter of 2021 is presented in the table below. Certain merger, restructuring and other 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.
Balance as of
Balance as of
December 26,
Charges
Cash
March 27,
(In millions)
2020
Incurred
Payments
2021
Termination benefits:
Maximize B2B Restructuring Plan
30

(2
)
28
Business Acceleration Program
8


8
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals
1


1
Maximize B2B Restructuring Plan
10
5
(3
)
12
Business Acceleration Program
1

(1
)

Comprehensive Business Review
2


2
CompuCom strategic alternatives review

1

1
USR Parent, Inc. proposals

1

1
Total
$
52
$
7
$
(6
)
$
53

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)3 Months Ended
Mar. 27, 2021
Revenue From Contract With Customer [Abstract]
Summary of Disaggregated Revenue by Division, Major Product and Service CategoriesThe following table provides information about disaggregated revenue by Division, and major products and services categories.
First Quarter of 2021
(In millions)
Business Solutions Division
Retail Division
CompuCom Division
Other
Total
Major products and services categories
Products
Supplies
$
574
$
361
$

$
2
$
937
Technology
309
439
49

797
Furniture and other
175
138

4
317
Services
Technology

6
146
(2
)
150
Copy, print, and other
69
95
1

165
Total
$
1,127
$
1,039
$
196
$
4
$
2,366
First Quarter of 2020
(In millions)
Business Solutions Division
Retail Division
CompuCom Division
Other
Total
Major products and services categories
Products
Supplies
$
754
$
420
$

$
2
$
1,176
Technology
317
482
63

$
862
Furniture and other
176
122

1
$
299
Services
Technology

9
169
(3
)
$
175
Copy, print, and other
87
123
3

$
213
Total
$
1,334
$
1,156
$
235
$

$
2,725
Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with CustomersThe following table provides information about receivables, contract assets and contract liabilities from contracts with customers:
March 27,
December 26,
(In millions)
2021
2020
Trade receivables, net
$
548
$
501
Short-term contract assets
17
15
Long-term contract assets
14
15
Short-term contract liabilities
55
50
Long-term contract liabilities
3
4

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)3 Months Ended
Mar. 27, 2021
Segment Reporting [Abstract]
Summary of Significant Accounts and Balances by Each Divisions and OtherThe following is a summary of sales and operating income (loss) by each of the Divisions and Other, reconciled to consolidated totals.
Sales
First Quarter
(In millions)
2021
2020
Business Solutions Division
$
1,127
$
1,334
Retail Division
1,039
1,156
CompuCom Division
196
235
Other
4

Total
$
2,366
$
2,725
Division Operating Income (Loss)
First Quarter
(In millions)
2021
2020
Business Solutions Division
$
17
$
40
Retail Division
100
87
CompuCom Division
(1
)
3
Other


Total
$
116
$
130
Reconciliation of Measure of Division Operating Income to Consolidated Income Before Income TaxesA reconciliation of the measure of Division operating income to Consolidated income before income taxes is as follows:
First Quarter
(In millions)
2021
2020
Total Divisions operating income
$
116
$
130
Add/(subtract):
Asset impairments
(12
)
(12
)
Merger, restructuring and other operating expenses, net
(14
)
(16
)
Unallocated expenses
(35
)
(22
)
Interest income

3
Interest expense
(7
)
(18
)
Other income, net
11
1
Income before income taxes
$
59
$
66
Schedule of Goodwill by SegmentThe components of goodwill by segment are provided in the following table:
Business Solutions
Retail
CompuCom
(In millions)
Division
Division
Division
Other
Total
Balance as of December 26, 2020
$
316
$
78
$
215
$

$
609
Acquisitions
1


67
68
Balance as of March 27, 2021
$
317
$
78
$
215
$
67
$
677

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)3 Months Ended
Mar. 27, 2021
Earnings Per Share [Abstract]
Calculation of Earnings Per Common ShareAs disclosed in Note 1, a 1-for-10 reverse stock split of the Company’s outstanding shares of common stock and a reduction in the number of authorized shares of the Company’s common stock by a corresponding ratio became effective on June 30, 2020. All share and per share amounts have been retroactively adjusted for the prior period presented to give effect to this reverse stock split. The following table represents the calculation of earnings per common share – basic and diluted:
First Quarter
(In millions, except per share amounts)
2021
2020
Basic Earnings Per Share
Numerator:
Net income
$
53
$
45
Denominator:
Weighted-average shares outstanding
53
53
Basic earnings per share
$
0.99
$
0.86
Diluted Earnings Per Share
Numerator:
Net income
$
53
$
45
Denominator:
Weighted-average shares outstanding
53
53
Effect of dilutive securities:
Stock options and restricted stock
3
1
Diluted weighted-average shares outstanding
56
54
Diluted earnings per share
$
0.95
$
0.84

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)3 Months Ended
Mar. 27, 2021
Equity [Abstract]
Accumulated Other Comprehensive Loss Activity, Net of TaxAccumulated other comprehensive loss activity, net of tax, where applicable, is provided in the following table:
Foreign
Change in
Currency
Deferred
Translation
Pension and
(In millions)
Adjustments
Other
Total
Balance at December 26, 2020
$
(27
)
$
(5
)
$
(32
)
Other comprehensive income activity
5

5
Balance at March 27, 2021
$
(22
)
$
(5
)
$
(27
)

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)3 Months Ended
Mar. 27, 2021
Compensation And Retirement Disclosure [Abstract]
Components of Net Periodic Pension BenefitThe components of net periodic pension benefit for the Company’s North America pension plans are as follows:
First Quarter
(In millions)
2021
2020
Service cost
$

$

Interest cost
5
7
Expected return on plan assets
(7
)
(8
)
Net periodic pension benefit
$
(2
)
$
(1
) The components of net periodic pension benefit for the Company’s pension plan in the United Kingdom (“UK”) are as follows:
First Quarter
(In millions)
2021
2020
Service cost
$

$

Interest cost
1
1
Expected return on plan assets
(1
)
(1
)
Net periodic pension benefit
$

$

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)3 Months Ended
Mar. 27, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Assets and LiabilitiesThe following table presents information about financial instruments at the balance sheet dates indicated.
March 27,
December 26,
2021
2020
Carrying
Fair
Carrying
Fair
(In millions)
Amount
Value
Amount
Value
Financial assets:
Company-owned life insurance
138
138
147
147
Financial liabilities:
Long-term debt:
New Facilities loans under the Third Amended Credit Agreement, due 2025
100
100
100
100
Revenue bonds, due in varying amounts periodically through 2029
176
177
176
177
American & Foreign Power Company, Inc. 5% debentures, due 2030
15
15
15
14

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail)May 11, 2020Mar. 27, 2021USD ($)StoreSegmentDec. 26, 2020USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of retail stores | Store1,146
Number of reportable segments | Segment3
Reverse stock split1-for-10
Reverse stock split ratio0.1
Accounts payable and accrued expenses and other current liabilities not yet presented for payment $ 12,000,000 $ 23,000,000
Cash and cash equivalents $ 753,000,000 729,000,000
Accounting Standards Update 2017-07
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoptedtrue
Change in accounting principle, accounting standards update, adoption dateDec. 27,
2020
Change in accounting principle, accounting standards update, immaterial effecttrue
Accounting Standards Update 2015-17
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoptedtrue
Change in accounting principle, accounting standards update, adoption dateDec. 27,
2020
Change in accounting principle, accounting standards update, immaterial effecttrue
Prepaid Expenses and Other Current Assets
Summary Of Significant Accounting Policies [Line Items]
Restricted cash $ 0 0
Non-US
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents $ 144,000,000 $ 159,000,000

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) $ in MillionsJan. 29, 2021USD ($)sharesMar. 27, 2021USD ($)BusinessDec. 26, 2020USD ($)
Business Acquisition, Acquisition Related Costs [Line Items]
Goodwill $ 677 $ 609
Buyer Quest
Business Acquisition, Acquisition Related Costs [Line Items]
Goodwill $ 67
Buyer Quest | Technology Intangible Assets
Business Acquisition, Acquisition Related Costs [Line Items]
Intangible assets acquired $ 6
United States
Business Acquisition, Acquisition Related Costs [Line Items]
Business combination consideration transferred $ 2
Number of business acquired | Business1
Goodwill $ 1
United States | Buyer Quest
Business Acquisition, Acquisition Related Costs [Line Items]
Date of acquisitionJan. 29,
2021
Business combination consideration transferred $ 71
Business combination consideration transferred payments with cash on hand and issuance of shares of common stock61
Cash on hand $ 26
Business combination issuance of shares of common stock | shares827,498
BusinessCombinationContingentConsiderationLiabilityPaymentPeriod2 years
United States | Buyer Quest | Maximum
Business Acquisition, Acquisition Related Costs [Line Items]
Contingent consideration, liability, amount recognized $ 10

Summary of Major Components of

Summary of Major Components of Merger and Restructuring Expenses, Net (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Merger and transaction related expenses
Transaction and integration $ 1 $ 7
Total Merger and transaction related expenses1 7
Restructuring expenses
Severance1
Professional fees1 6
Facility closure, contract termination, and other expenses, net9 3
Total Restructuring expenses11 9
Other operating expenses
Professional fees2
Total Other operating expenses2
Total Merger, restructuring and other operating expenses, net $ 14 $ 16

Merger, Restructuring and Oth_3

Merger, Restructuring and Other Activity - Additional Information (Detail) $ in Millions1 Months Ended3 Months Ended11 Months Ended12 Months Ended
May 31, 2020USD ($)EmployeeMar. 27, 2021USD ($)StoreProposalMar. 28, 2020USD ($)Mar. 27, 2021USD ($)Dec. 26, 2020StoreFacility
Merger Restructuring And Other Activity [Line Items]
Transaction and integration expenses $ 1 $ 7
Costs to implement restructuring plan7
Restructuring cash expenditure6
Professional fees1 $ 6
USR Parent, Inc.
Merger Restructuring And Other Activity [Line Items]
Professional fees $ 1
Number of proposal received | Proposal2
Proposal received to acquire issued and outstanding stock or certain assets in percentage100.00%
Maximize B2B Restructuring Plan
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan $ 11 $ 92
Number of retail stores closed | Store7 70
Number of distribution facilities closed | Facility2
Restructuring cash expenditure $ 5
Maximize B2B Restructuring Plan | Cash Expenditures
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan $ 33
Maximize B2B Restructuring Plan | Severance Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan $ 55 1
Maximize B2B Restructuring Plan | Retail Store and Facility Closure Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan51 9
Maximize B2B Restructuring Plan | Other Costs Including Contract Termination Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan $ 37 5
Restructuring cash expenditure3
Maximize B2B Restructuring Plan | Third-Party Professional Fees
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan1
Maximize B2B Restructuring Plan | Maximum
Merger Restructuring And Other Activity [Line Items]
Number of expected reduction in employee position | Employee13,100
Costs to implement restructuring plan $ 143
Maximize B2B Restructuring Plan | Maximum | Cash Expenditures
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan $ 143
CompuCom Strategic Alternatives Review
Merger Restructuring And Other Activity [Line Items]
Professional fees1
CompuCom Strategic Alternatives Review | Other Costs Including Contract Termination Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan $ 1

Severance and Facility Closure

Severance and Facility Closure Costs (Detail) - USD ($) $ in Millions1 Months Ended3 Months Ended11 Months Ended
May 31, 2020Mar. 27, 2021Mar. 27, 2021
Restructuring Cost and Reserve [Line Items]
Beginning Balance $ 52
Charges Incurred7
Cash Payments(6)
Ending Balance53 $ 53
Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Charges Incurred11 92
Cash Payments(5)
Termination Benefits | Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance30
Cash Payments(2)
Ending Balance28 28
Termination Benefits | Business Acceleration Program
Restructuring Cost and Reserve [Line Items]
Beginning Balance8
Ending Balance8 8
Lease and contract obligations, accruals for facilities closures and other costs | Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance10
Charges Incurred $ 37 5
Cash Payments(3)
Ending Balance12 12
Lease and contract obligations, accruals for facilities closures and other costs | Business Acceleration Program
Restructuring Cost and Reserve [Line Items]
Beginning Balance1
Cash Payments(1)
Lease and contract obligations, accruals for facilities closures and other costs | Merger related accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance1
Ending Balance1 1
Lease and contract obligations, accruals for facilities closures and other costs | Comprehensive Business Review
Restructuring Cost and Reserve [Line Items]
Beginning Balance2
Ending Balance2 2
Lease and contract obligations, accruals for facilities closures and other costs | CompuCom Strategic Alternatives Review
Restructuring Cost and Reserve [Line Items]
Charges Incurred1
Ending Balance1 1
Lease and contract obligations, accruals for facilities closures and other costs | USR Parent, Inc. Proposals
Restructuring Cost and Reserve [Line Items]
Charges Incurred1
Ending Balance $ 1 $ 1

Summary of Disaggregated Revenu

Summary of Disaggregated Revenue by Division, Major Product and Service Categories (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Disaggregation Of Revenue [Line Items]
Total sales $ 2,366 $ 2,725
Products, Supplies
Disaggregation Of Revenue [Line Items]
Total sales937 1,176
Products, Technology
Disaggregation Of Revenue [Line Items]
Total sales797 862
Products, Furniture and Other
Disaggregation Of Revenue [Line Items]
Total sales317 299
Services, Technology
Disaggregation Of Revenue [Line Items]
Total sales150 175
Services, Copy Print and Other
Disaggregation Of Revenue [Line Items]
Total sales165 213
Business Solutions Division
Disaggregation Of Revenue [Line Items]
Total sales1,127 1,334
Business Solutions Division | Products, Supplies
Disaggregation Of Revenue [Line Items]
Total sales574 754
Business Solutions Division | Products, Technology
Disaggregation Of Revenue [Line Items]
Total sales309 317
Business Solutions Division | Products, Furniture and Other
Disaggregation Of Revenue [Line Items]
Total sales175 176
Business Solutions Division | Services, Copy Print and Other
Disaggregation Of Revenue [Line Items]
Total sales69 87
Retail Division
Disaggregation Of Revenue [Line Items]
Total sales1,039 1,156
Retail Division | Products, Supplies
Disaggregation Of Revenue [Line Items]
Total sales361 420
Retail Division | Products, Technology
Disaggregation Of Revenue [Line Items]
Total sales439 482
Retail Division | Products, Furniture and Other
Disaggregation Of Revenue [Line Items]
Total sales138 122
Retail Division | Services, Technology
Disaggregation Of Revenue [Line Items]
Total sales6 9
Retail Division | Services, Copy Print and Other
Disaggregation Of Revenue [Line Items]
Total sales95 123
CompuCom Division
Disaggregation Of Revenue [Line Items]
Total sales196 235
CompuCom Division | Products, Technology
Disaggregation Of Revenue [Line Items]
Total sales49 63
CompuCom Division | Services, Technology
Disaggregation Of Revenue [Line Items]
Total sales146 169
CompuCom Division | Services, Copy Print and Other
Disaggregation Of Revenue [Line Items]
Total sales1 3
Other
Disaggregation Of Revenue [Line Items]
Total sales4
Other | Products, Supplies
Disaggregation Of Revenue [Line Items]
Total sales2 2
Other | Products, Furniture and Other
Disaggregation Of Revenue [Line Items]
Total sales4 1
Other | Services, Technology
Disaggregation Of Revenue [Line Items]
Total sales $ (2) $ (3)

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail)3 Months Ended
Mar. 27, 2021USD ($)SegmentMar. 28, 2020USD ($)Dec. 26, 2020USD ($)
Revenue From Contract With Customer [Line Items]
Number of reportable segments | Segment3
Deferred revenue related to loyalty programs $ 55,000,000 $ 50,000,000
Revenue recognition included in short-term contract liabilities22,000,000 $ 18,000,000
Recognition of contract assets as a result of business combination0 0
Recognition of contract liabilities as a result of business combination2,000,000 0
Significant adjustment to revenue from performance obligations0 0
Contract with customer, asset, reclassified to receivable0 0
Capitalized acquisition cost31,000,000 30,000,000
Capitalized contract cost, amortization6,000,000 7,000,000
Impairment charges related to contract assets12,000,000 12,000,000
Contract Assets
Revenue From Contract With Customer [Line Items]
Impairment charges related to contract assets0 $ 0
Accrued Expenses and Other Current Liabilities
Revenue From Contract With Customer [Line Items]
Deferred revenue related to loyalty programs $ 11,000,000 $ 12,000,000

Summary of Receivables, Contrac

Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in MillionsMar. 27, 2021Dec. 26, 2020
Contract With Customer Asset And Liability [Abstract]
Trade receivables, net $ 548 $ 501
Short-term contract assets17 15
Long-term contract assets14 15
Short-term contract liabilities55 50
Long-term contract liabilities $ 3 $ 4

Segment Information - Additiona

Segment Information - Additional Information (Detail)3 Months Ended
Mar. 27, 2021USD ($)SegmentMar. 28, 2020USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment3
Number of operating segments | Segment3
CompuCom Division and Contract Reporting Unit
Segment Reporting Information [Line Items]
Carrying value in excess of fair value for reporting unit, percentage12.00%
BuyerQuest Acquisition
Segment Reporting Information [Line Items]
Date of acquisitionJan. 29,
2021
Intersegment Eliminations
Segment Reporting Information [Line Items]
Revenues | $ $ 4,000,000 $ 4,000,000
Operating Segments | CompuCom Division and Contract Reporting Unit | Trade Name
Segment Reporting Information [Line Items]
Indefinite-lived intangible asset, impairment charge | $ $ 0

Reconciliation of Revenue from

Reconciliation of Revenue from Segments to Consolidated (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Segment Reporting Information [Line Items]
Sales $ 2,366 $ 2,725
Business Solutions Division
Segment Reporting Information [Line Items]
Sales1,127 1,334
Retail Division
Segment Reporting Information [Line Items]
Sales1,039 1,156
CompuCom Division
Segment Reporting Information [Line Items]
Sales196 $ 235
Other
Segment Reporting Information [Line Items]
Sales $ 4

Division Operating Income (Loss

Division Operating Income (Loss) (Detail) - Operating Segments - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Division Operating Income (Loss) $ 116 $ 130
Business Solutions Division
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Division Operating Income (Loss)17 40
Retail Division
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Division Operating Income (Loss)100 87
CompuCom Division
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Division Operating Income (Loss) $ (1) $ 3

Reconciliation of Measure of Di

Reconciliation of Measure of Division Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Segment Reporting Information [Line Items]
Total Divisions operating income $ 55 $ 80
Asset impairments(12)(12)
Merger, restructuring and other operating expenses, net(14)(16)
Unallocated expenses(35)(22)
Interest income3
Interest expense(7)(18)
Other income, net11 1
Income before income taxes59 66
Operating Segments
Segment Reporting Information [Line Items]
Total Divisions operating income $ 116 $ 130

Schedule of Goodwill by Segment

Schedule of Goodwill by Segment (Detail) $ in Millions3 Months Ended
Mar. 27, 2021USD ($)
Goodwill [Line Items]
Balance as of December 26, 2020 $ 609
Acquisitions68
Balance as of March 27, 2021677
Operating Segments | Business Solutions Division
Goodwill [Line Items]
Balance as of December 26, 2020316
Acquisitions1
Balance as of March 27, 2021317
Operating Segments | Retail Division
Goodwill [Line Items]
Balance as of December 26, 202078
Balance as of March 27, 202178
Operating Segments | CompuCom Division
Goodwill [Line Items]
Balance as of December 26, 2020215
Balance as of March 27, 2021215
Operating Segments | Other
Goodwill [Line Items]
Acquisitions67
Balance as of March 27, 2021 $ 67

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, at federal statutory income tax rate, percent21.00%
Effective tax rate10.00%32.00%
Decrease related to current year tax positions $ 1

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) shares in MillionsMay 11, 2020Mar. 27, 2021sharesMar. 28, 2020shares
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Reverse stock split1-for-10
Reverse stock split ratio0.1
Nonvested Stock Options and Shares | Maximum
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Shares excluded from computation of diluted earnings per share1 1

Calculation of Earnings Per Com

Calculation of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Basic Earnings Per Share
Net income $ 53 $ 45
Weighted-average shares outstanding53 53
Basic earnings per share $ 0.99 $ 0.86
Diluted Earnings Per Share
Net income $ 53 $ 45
Weighted-average shares outstanding53 53
Stock options and restricted stock3 1
Diluted weighted-average shares outstanding56 54
Diluted earnings per share $ 0.95 $ 0.84

Debt - Additional Information (

Debt - Additional Information (Detail) - Third Amended and Restated Credit Agreement - USD ($)Apr. 17, 2020Mar. 27, 2021
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility $ 1,300,000,000
Maturity date of debtApr. 17,
2025
Available credit under the facility $ 946,000,000
Revolving loans outstanding0
Asset-based Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility $ 1,200,000,000
Asset-based First-in, Last-out Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility $ 100,000,000
Borrowing under credit facility100,000,000
Standby Letter of Credit
Debt Instrument [Line Items]
Borrowing under credit facility $ 54,000,000

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss Activity, Net of Tax (Detail) $ in Millions3 Months Ended
Mar. 27, 2021USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance $ 1,880
Balance1,960
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance(27)
Other comprehensive income activity5
Balance(22)
Change in Deferred Pension and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance(5)
Balance(5)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance(32)
Other comprehensive income activity5
Balance $ (27)

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)3 Months Ended9 Months Ended
Mar. 27, 2021Mar. 28, 2020Sep. 26, 2020May 31, 2021Dec. 26, 2020Nov. 06, 2019Nov. 30, 2018
Shareholders Equity [Line Items]
Stock repurchase program, temporarily suspended month and year2020-05
Stock repurchase program, shares purchased0
Stock repurchase program, shares purchased at cost $ 30,000,000
Stock repurchase program, remaining authorized repurchase amount $ 130,000,000
Treasury stock, shares9,857,193 9,857,193
Dividends payable, temporarily suspended month and year2020-05
Maximum
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount $ 200,000,000 $ 100,000,000
Maximum | Scenario Forecast
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount $ 300,000,000

Components of Net Periodic Pens

Components of Net Periodic Pension Benefit (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
North America
Defined Benefit Plan Disclosure [Line Items]
Interest cost $ 5 $ 7
Expected return on plan assets(7)(8)
Net periodic pension benefit(2)(1)
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Service cost0 0
Interest cost1 1
Expected return on plan assets $ (1) $ (1)

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Detail) $ in Millions3 Months Ended
Mar. 27, 2021USD ($)
North America
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, current period $ 1
Pension and other postretirement contributions, remainder of fiscal year1
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, current period1
Pension and other postretirement contributions, remainder of fiscal year $ 1

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended
Mar. 27, 2021Mar. 28, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges $ 12 $ 12
Impairment of operating lease ROU assets $ 10
Retail Stores | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage used for analysis8.00%

Schedule of Fair Value of Asset

Schedule of Fair Value of Assets and Liabilities (Detail) - USD ($) $ in MillionsMar. 27, 2021Dec. 26, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Company-owned life insurance $ 138 $ 147
Long-Term Debt | New Facilities loans Under Third Amended Credit Agreement due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value100 100
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Company-owned life insurance138 147
Carrying Amount | Long-Term Debt | New Facilities loans Under Third Amended Credit Agreement due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value100 100
Revenue bonds, due in varying amounts periodically through 2029 | Long-Term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value177 177
Revenue bonds, due in varying amounts periodically through 2029 | Carrying Amount | Long-Term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value176 176
American & Foreign Power Company, Inc. 5% debentures, due 2030 | Long-Term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value15 14
American & Foreign Power Company, Inc. 5% debentures, due 2030 | Carrying Amount | Long-Term Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value $ 15 $ 15

Schedule of Fair Value of Ass_2

Schedule of Fair Value of Assets and Liabilities (Parenthetical) (Detail) - Long-Term Debt3 Months Ended12 Months Ended
Mar. 27, 2021Dec. 26, 2020
Carrying Amount | New Facilities loans Under Third Amended Credit Agreement due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, due date20252025
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 date20292029
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 date20302030
Long-term debt, interest rate5.00%5.00%
Fair Value | New Facilities loans Under Third Amended Credit Agreement due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, due date20252025
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 date20292029
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 date20302030
Long-term debt, interest rate5.00%5.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)3 Months Ended
Mar. 27, 2021USD ($)
Commitments And Contingencies Disclosure [Line Items]
Loss of service revenue $ 3,000,000
Maximum expenses expected to incur20,000,000
Accrued expenses through first quarter of 202110,000,000
Minimum [Member]
Commitments And Contingencies Disclosure [Line Items]
Estimated total loss of service revenue5,000,000
Losses for environmental liabilities15,000,000
Maximum
Commitments And Contingencies Disclosure [Line Items]
Estimated total loss of service revenue8,000,000
Losses for environmental liabilities $ 25,000,000

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Scenario Forecast - Spin Off Transaction1 Months Ended
May 31, 2021Location
Subsequent Event [Line Items]
Number of retail locations1,100
Shareholders equity ownership percentage in newly formed companies100.00%