The ODP Corporation (ODP) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 01, 2023	May 03, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 01, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Trading Symbol	ODP
Entity Registrant Name	The ODP Corporation
Entity Central Index Key	0000800240
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		38,595,863
Entity Shell Company	false
Entity File Number	1-10948
Entity Tax Identification Number	85-1457062
Entity Address, Address Line One	6600 North Military Trail
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33496
City Area Code	561
Local Phone Number	438-4800
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Income Statement [Abstract]
Sales	$ 2,108	$ 2,178
Cost of goods and occupancy costs	1,627	1,694
Gross profit	481	484
Selling, general and administrative expenses	382	396
Asset impairments	4	2
Merger, restructuring and other operating expenses, net		10
Operating income	95	76
Other income (expense):
Interest income	2	1
Interest expense	(5)	(5)
Other income, net	2	2
Income from continuing operations before income taxes	94	74
Income tax expense	22	19
Net income from continuing operations	72	55
Net income	$ 72	$ 55
Basic earnings per share
Continuing operations	$ 1.79	$ 1.14
Net basic earnings per share	1.79	1.14
Diluted earnings per share
Continuing operations	1.71	1.09
Net diluted earnings per share	$ 1.71	$ 1.09

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 72	$ 55
Other comprehensive income, net of tax, where applicable:
Foreign currency translation adjustments	2	(1)
Reclassification of foreign currency translation adjustments realized upon disposal of business		6
Total other comprehensive income, net of tax, where applicable	2	5
Comprehensive income	$ 74	$ 60

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Apr. 01, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 343	$ 403
Receivables, net	524	536
Inventories	793	828
Prepaid expenses and other current assets	43	36
Current assets held for sale	110	107
Total current assets	1,813	1,910
Property and equipment, net	345	352
Operating lease right-of-use assets	885	874
Goodwill	467	464
Other intangible assets, net	44	46
Deferred income taxes	165	182
Other assets	322	321
Total assets	4,041	4,149
Current liabilities:
Trade accounts payable	903	821
Accrued expenses and other current liabilities	923	1,005
Income taxes payable	7	17
Short-term borrowings and current maturities of long-term debt	12	16
Total current liabilities	1,845	1,859
Deferred income taxes and other long-term liabilities	123	122
Pension and postretirement obligations, net	16	16
Long-term debt, net of current maturities	210	172
Operating lease liabilities	699	693
Total liabilities	2,893	2,862
Commitments and contingencies
Stockholders' equity:
Common stock - authorized 80,000,000 shares of $0.01 par valure; issued shares - 66,448,993 at April 01, 2023 and 65,636,015 at December 31,2022; outstanding shares - 38,763,384 at April 01,2023 and 42,213,046 at December 31,2022	1	1
Additional paid-in capital	2,732	2,742
Accumulated other comprehensive loss	(75)	(77)
Accumulated deficit	(379)	(451)
Treasury stock, at cost - 27,685,609 shares at April 01, 2023 and 23,422,969 shares at December 31, 2022	(1,131)	(928)
Total stockholders' equity	1,148	1,287
Total liabilities and stockholders’ equity	$ 4,041	$ 4,149

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 01, 2023	Dec. 31, 2022
Statement Of Financial Position [Abstract]
Common stock, authorized	80,000,000	80,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, issued shares	66,448,993	65,636,015
Common stock, shares, outstanding	38,763,384	42,213,046
Treasury stock, shares	27,685,609	23,422,969

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Cash flows from operating activities:
Net income	$ 72	$ 55
Net income from continuing operations	72	55
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	30	34
Amortization of debt discount and issuance costs	1
Charges for losses on receivables and inventories	5	6
Asset impairments	4	2
Gain on disposition of assets, net	(1)	(3)
Compensation expense for share-based payments	9	9
Deferred income taxes and deferred tax asset valuation allowances	17	10
Changes in working capital and other operating activities	20	(83)
Net cash provided by operating activities of continuing operations	157	30
Net cash provided by operating activities	157	30
Cash flows from investing activities:
Capital expenditures	(27)	(21)
Businesses acquired, net of cash acquired	(10)
Proceeds from disposition of assets	1	6
Settlement of company-owned life insurance policies		1
Net cash used in investing activities of continuing operations	(36)	(14)
Net cash provided by investing activities of discontinued operations	5	67
Net cash provided by (used in) investing activities	(31)	53
Cash flows from financing activities:
Net payments on long and short-term borrowings	(5)	(6)
Debt retirement	(60)	(43)
Debt issuance	100
Share purchases for taxes, net of proceeds from employee share-based transactions	(19)	(14)
Repurchase of common stock for treasury	(201)
Other financing activities		(1)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations, Total	(185)	(64)
Net cash used in financing activities	(185)	(64)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		1
Net increase (decrease) in cash, cash equivalents and restricted cash	(59)	20
Cash, cash equivalents and restricted cash at beginning of period	404	537
Cash, cash equivalents and restricted cash at end of period	345	557
Supplemental information on non-cash investing and financing activities
Right-of-use assets obtained in exchange for new operating lease liabilities	70	35
Promissory note receivable obtained from disposition of discontinued operations	59	55
Earn-out receivable obtained from disposition of discontinued operations	9	9
Cash interest paid, net of amounts capitalized and non-recourse debt	$ 4
Other current receivable obtained from disposition of discontinued operations		$ 30

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock
Balance at Dec. 25, 2021	$ 1,438	$ 1	$ 2,692	$ (6)	$ (617)	$ (632)
Balance, Shares at Dec. 25, 2021		64,704,979
Net income	55				55
Other comprehensive income	5			5
Exercise and release of incentive stock (including income tax benefits and withholding)	(14)		(14)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		652,606
Amortization of long-term incentive stock grants	9		9
Other	(1)					(1)
Balance at Mar. 26, 2022	1,492	$ 1	2,687	(1)	(562)	(633)
Balance, Shares at Mar. 26, 2022		65,357,585
Balance at Dec. 31, 2022	1,287	$ 1	2,742	(77)	(451)	(928)
Balance, Shares at Dec. 31, 2022		65,636,015
Net income	72				72
Other comprehensive income	2			2
Exercise and release of incentive stock (including income tax benefits and withholding)	(19)		(19)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		812,978
Amortization of long-term incentive stock grants	9		9
Repurchase of common stock	(202)					(202)
Other	(1)					(1)
Balance at Apr. 01, 2023	$ 1,148	$ 1	$ 2,732	$ (75)	$ (379)	$ (1,131)
Balance, Shares at Apr. 01, 2023		66,448,993

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The ODP Corporation (including its consolidated subsidiaries, “ODP” or the “Company”) is a leading provider of products, services and technology solutions through an integrated business-to-business (“B2B”) distribution platform and omni-channel presence, which includes supply chain and distribution operations, dedicated sales professionals, a B2B digital procurement solution, online presence, and a network of Office Depot and OfficeMax retail stores. Through its operating companies ODP Business Solutions, LLC; Office Depot, LLC; Veyer, LLC; and Varis, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. The Company has four reportable segments (or “Divisions”), which are ODP Business Solutions Division, Office Depot Division, Veyer Division, and Varis Division. Refer to Note 4 for additional information. The Company’s CompuCom Division was sold through a single disposal group on December 31, 2021. The Company has presented cash flows from the sale of the CompuCom Division as discontinued operations in the Condensed Consolidated Statements of Cash Flows for all periods. There was no impact of discontinued operations on the Condensed Consolidated Statement of Operations for the periods presented in this Quarterly Report on Form 10-Q. Refer to Note 12 for additional information. The Condensed Consolidated Financial Statements as of April 1, 2023, and for the 13-week period ended April 1, 2023 (also referred to as the “first quarter of 2023”) and March 26, 2022 (also referred to as the “first quarter of 2022”) 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. The Company made a business acquisition in 2023 which is included prospectively from the date of acquisition, thus affecting the comparability of the Company’s financial statements for the periods presented in this Quarterly Report on Form 10-Q. Refer to Note 2 for additional information. 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 2022 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year. 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 $ 10 million and $ 16 million at April 1, 2023 and December 31, 2022, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities. At April 1, 2023 and December 31, 2022 , cash and cash equivalents held outside the United States amounted to $ 117 million and $ 113 million, respectively. Restricted cash consists primarily of cash in bank committed to fund UK pension obligations based on the agreements that govern the UK pension plan. Restricted cash is valued at cost, which approximates fair value. Restricted cash was $ 2 million and $ 1 million at April 1, 2023 and December 31, 2022 , respectively. REVENUE AND CONTRACT BALANCES The Company generates substantially all of its revenue from contracts with customers for the sale of products and services. Refer to Note 4 for information on revenue by reportable segment and product category. Contract balances primarily consist of receivables, assets related to deferred contract acquisition costs, liabilities related to payments received in advance of performance under the contract, and liabilities related to unredeemed gift cards and loyalty programs. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: April 1, December 31, (In millions) 2023 2022 Trade receivables, net 422 412 Short-term contract assets 5 8 Long-term contract assets 2 2 Short-term contract liabilities 40 41 Long-term contract liabilities — — The Company recognized revenues of $ 18 million and $ 13 million in the first quarters of 2023 and 2022, respectively, which were included in the short-term contract liability balance at the beginning of each respective period.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Apr. 01, 2023
Business Combinations [Abstract]
ACQUISITIONS	NOTE 2. ACQUISITIONS Since 2017, the Company has been acquiring profitable regional office supply distribution businesses to expand its reach and distribution network into geographic areas that were previously underserved. In January 2023, the Company acquired a small independent regional office supply distribution business in the U.S. The Company’s strategy has been to acquire businesses with purchase prices ranging from $ 5 million to $ 15 million, which were individually insignificant to the Company. The business acquired was consistent with acquisitions of similar sized businesses in the past and the acquisition was primarily funded with cash on hand. The acquisition was treated as a purchase 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 the acquired office supply distribution business includes $ 3 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 April 1, 2023. 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 business is combined with the Company’s operating results subsequent to the purchase date and are included in the ODP Business Solutions Division, as described in Note 4. Certain disclosures set forth under ASC 805, including supplemental pro forma financial information, are not disclosed because the operating results of the acquired business are not material to the Company. Under the business combinations accounting guidance, 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 2023 .

MERGER, RESTRUCTURING AND OTHER

MERGER, RESTRUCTURING AND OTHER ACTIVITY	3 Months Ended
	Apr. 01, 2023
Merger Restructuring And Other Activity [Abstract]
MERGER, RESTRUCTURING AND OTHER ACTIVITY	NOTE 3. MERGER, RESTRUCTURING AND OTHER ACTIVITY 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 facilities, consolidating functional activities, eliminating redundant positions and disposing of non-strategic businesses and assets. The expenses and any income recognized directly associated with these actions are included in Merger, restructuring and other operating expenses, net on a separate line in the Condensed Consolidated Statements of Operations in order to identify these activities apart from the expenses incurred to sell to and service customers. These expenses are not included in the determination of Division operating income. The table below summarizes the major components of Merger, restructuring and other operating expenses, net. First Quarter (In millions) 2023 2022 Merger and transaction related expenses Transaction and integration $ — $ — Total Merger and transaction related expenses — — Restructuring expenses Severance — — Professional fees — — Facility closure, contract termination, and other expenses, net — 1 Total Restructuring expenses, net — 1 Other operating expenses Professional fees — 9 Total Other operating expenses — 9 Total Merger, restructuring and other operating expenses, net $ — $ 10 MERGER AND TRANSACTION RELATED EXPENSES In the first quarter of 2023, the Company recognized transaction and integration expenses of less than $ 1 million related to the acquisition of the small independent regional office supply distribution business. T ransaction and integration include legal, accounting, and other third-party expenses incurred in connection with acquisitions. In the first quarter of 2022 , the Company did no t incur any transaction and integration expenses. 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 was 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. In December 2022, the Company’s Board of Directors approved to extend the program through 2024. The Company closed 20 retail stores in the first quarter of 2023 . The Company had closed a total of 237 retail stores and two distribution facilities in 2022, 2021 and 2020 under the Maximize B2B Restructuring Plan. It is anticipated that additional retail stores will be closed in 2023 and 2024, however, it is generally understood that closures will approximate the store’s lease termination date. In the first quarter of 2023 , the Company had less than $ 1 million of restructuring costs associated with the Maximize B2B Restructuring Plan. In the first quarter of 2023 , the Company made cash payments of $ 3 million associated with expenditures for the Maximize B2B Restructuring Plan. Since its inception in 2020, the Company incurred $ 81 million in restructuring expenses to implement the Maximize B2B Restructuring Plan through the first quarter of 2023 for its continuing operations, of which $ 64 million were cash expenditures. Total estimated restructuring costs related to the Maximize B2B Restructuring Plan are expected to be up to $ 95 million. In the first quarter of 2022 , the Company incurred $ 1 million, net, in restructuring expenses associated with the Maximize B2B Restructuring Plan, which consisted of facility closure and other costs. The Company had $ 2 million of cash expenditures in the first quarter of 2022 associated with the Maximize B2B Restructuring Plan. OTHER OPERATING EXPENSES Other operating expenses represent costs incurred that are incremental to those related to running the Company’s core operations, which are presented within Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. The Company did not incur any other operating expenses in the first quarter of 2023. In the first quarter of 2022 , the Company had incurred $ 9 million in third-party professional fees associated with the previously planned separation of its consumer business. For additional information, see Note 1. “Summary of Significant Accounting Policies” in Notes to Consolidated Financial Statements and Management’s Discussion and Analysis in the 2022 Form 10-K. MERGER, RESTRUCTURING AND OTHER ACCRUALS The activity in the merger, restructuring and other accruals in the first quarter of 2023 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 31, Charges (credits) Cash April 1, (In millions) 2022 Incurred Payments 2023 Termination benefits: Maximize B2B Restructuring Plan 5 — ( 1 ) 4 Lease and contract obligations, accruals for facilities Maximize B2B Restructuring Plan 4 1 ( 1 ) 4 Comprehensive Business Review 1 — — 1 Previously planned separation of consumer business and re-alignment 2 — ( 2 ) — Total $ 12 $ 1 $ ( 4 ) $ 9 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.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Apr. 01, 2023
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 4. SEGMENT INFORMATION At April 1, 2023 , the Company had four reportable segments: ODP Business Solutions Division – The Company’s leading B2B distribution solutions provider serving small, medium and enterprise level companies, including those in the public and education sectors. This segment includes the contract sales channel of the Company’s previous Business Solutions Division, and operates in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The ODP Business Solutions Division sells nationally branded, as well as the Company’s private branded, office supply and adjacency products and services to customers, who are served through a dedicated sales force, catalogs, telesales, and electronically through the Company’s Internet websites. Adjacency products and services include cleaning, janitorial, and breakroom supplies, office furniture, technology products, and copy and print services. This segment also includes our Federation entities, which are over a dozen regional office supply distribution businesses acquired by the Company as part of its transformation to expand its reach and distribution network into geographic areas that were previously underserved, and which continue to operate under their own brand names. The acquisition of these businesses has allowed for an effective means to expand our distribution reach, target new business customers and grow our offerings beyond traditional office supplies. Office Depot Division – The Company’s leading provider of retail consumer and small business products and services distributed through a fully integrated omni-channel platform of 959 Office Depot and OfficeMax retail locations in the United States, Puerto Rico and the U.S. Virgin Islands, and an eCommerce presence (www.officedepot.com). The Office Depot Division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture as well as offering business services including copying, printing, digital imaging, mailing, shipping and technology support services. In addition, the print needs for retail and business customers are facilitated through the Company’s regional print production centers. Veyer Division – The Company’s supply chain, distribution, procurement and global sourcing operation, which has over 35 years of experience with proven leadership and has been branded under a new name. The Veyer Division specializes in B2B and consumer business service delivery, with core competencies in distribution, fulfillment, transportation, global sourcing and purchasing. The Veyer Division’s customers include our Office Depot Division and ODP Business Solutions Division, as well as third-party customers. The Veyer Division also includes the Company’s global sourcing operations in Asia. Varis Division – The Company’s tech-enabled B2B indirect procurement marketplace, which provides a better way for buyers and suppliers to transact through the platform’s consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. In connection with the Company’s development efforts of this Division, it acquired BuyerQuest Holdings, Inc. (“BuyerQuest”) in 2021, a software as a service eProcurement platform company. BuyerQuest’s operating results are included in the Varis Division. The Varis Division currently serves enterprise businesses and provides its services to middle- and small-sized businesses. It is focused on filling the growing demand for a B2B centric digital commerce platform that is modern, trusted, and provides the procurement controls and visibility businesses require to operate. 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 Divisions, 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. The following is a summary of sales and operating income (loss) by each of the Divisions, reconciled to consolidated totals: (In millions) ODP Business Solutions Division Office Depot Division Veyer Division Varis Division Eliminations Total First Quarter of 2023 Sales (external) $ 1,005 $ 1,094 $ 7 $ 2 $ - $ 2,108 Sales (internal) 4 9 1,412 - ( 1,425 ) $ - Total sales $ 1,009 $ 1,103 $ 1,419 $ 2 $ ( 1,425 ) $ 2,108 Division operating income (loss) $ 39 $ 85 $ 15 $ ( 17 ) $ - $ 122 First Quarter of 2022 Sales (external) $ 978 $ 1,194 $ 4 $ 2 $ - $ 2,178 Sales (internal) 6 7 1,529 - ( 1,542 ) - Total sales $ 984 $ 1,201 $ 1,533 $ 2 $ ( 1,542 ) $ 2,178 Division operating income (loss) $ 19 $ 96 $ 8 $ ( 15 ) $ - $ 108 The reconciliation of the measure of Division operating income to Consolidated income from continuing operations before income taxes is as follows: First Quarter (In millions) 2023 2022 Total Divisions operating income $ 122 $ 108 Add/(subtract): Asset impairments ( 4 ) ( 2 ) Merger, restructuring and other operating expenses, net - ( 10 ) Unallocated expenses ( 23 ) ( 20 ) Interest income 2 1 Interest expense ( 5 ) ( 5 ) Other income, net 2 2 Income from continuing operations before income taxes $ 94 $ 74 The following table provides information about disaggregated sales by major categories: First Quarter (In millions) 2023 2022 Major sales categories Supplies $ 1,052 $ 1,049 Technology 616 672 Furniture and other 278 311 Copy and print 162 146 Total $ 2,108 $ 2,178 The components of goodwill by segment are as follows: (In millions) Balance as of December 31, 2022 Acquisitions Balance as of April 1, 2023 ODP Business Solutions Division $ 142 $ 3 $ 145 Office Depot Division 219 - 219 Veyer Division 35 - 35 Varis Division 68 - 68 Total $ 464 $ 3 $ 467 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. Each reportable segment also represents a reporting unit. The most recent annual impairment assessment was performed during the fourth quarter of 2022, using a quantitative assessment for its Varis reporting unit, and qualitative assessments for all other reporting units. The quantitative assessment for Varis reporting unit combined the income approach and the market approach valuation methodologies and concluded that the fair value of this reporting unit exceeded its carrying amount by 21 %. The Varis reporting unit has been in operation since 2021, therefore the Company has less experience estimating the operating performance of this reporting unit. Changes to the critical assumptions used to estimate the fair value of this reporting unit, including changes in projected revenue growth rates, gross margin or expenses may result in a different calculation of fair value that could lead to the recognition of impairment charges in future periods. 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 value, resulting in additional goodwill impairment charges.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Apr. 01, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5. INCOME TAXES The Company’s effective tax rates were 23 % for the first quarter of 2023 and 26 % for the first quarter of 2022. For the first quarter of 2023 and 2022, the Company’s effective rates were primarily impacted by the recognition of a tax benefit associated with stock-based compensation awards year-to-date. These 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 %. 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 2021 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. 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 SHARE	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 6. EARNINGS PER SHARE The following table represents the calculation of earnings per common share – basic and diluted: First Quarter (In millions, except per share amounts) 2023 2022 Basic Earnings Per Share Numerator: Net income from continuing operations $ 72 $ 55 Income from discontinued operations, net of tax — — Net income $ 72 $ 55 Denominator: Weighted-average shares outstanding 40 49 Basic earnings per share Continuing operations $ 1.79 $ 1.14 Discontinued operations — — Net basic earnings per share $ 1.79 $ 1.14 Diluted Earnings Per Share Numerator: Net income from continuing operations $ 72 $ 55 Income from discontinued operations, net of tax — — Net income $ 72 $ 55 Denominator: Weighted-average shares outstanding 40 49 Effect of dilutive securities: Stock options and restricted stock 2 2 Diluted weighted-average shares outstanding 42 51 Diluted earnings per share Continuing operations $ 1.71 $ 1.09 Discontinued operations — — Net diluted earnings per share $ 1.71 $ 1.09 Awards of stock options and nonvested shares representing additional shares of outstanding common stock were less than 1 million in the first quarter of 2023 and the first quarter of 2022 , but they were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive.

DEBT

DEBT	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
DEBT	NOTE 7. 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. During the first quarter of 2022, the Company reduced its asset-based revolving credit facility by $ 200 million to $ 1.0 billion and retired $ 43 million of outstanding FILO Term Loan Facility loans under the Third Amended Credit Agreement. Also, during the first quarter of 2023, the Third Amended Credit Agreement was amended to replace the LIBOR-based Eurocurrency reference interest rate option with a reference interest rate option based upon SOFR. Other than the foregoing, the material terms of the Third Amended Credit Agreement remain unchanged. 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. During the first quarter of 2023, t he Company elected to draw down $ 100 million under the Third Amended Credit Agreement to fund the repurchase of its common stock from HG Vora Special Opportunities Master Fund, Ltd. (“HG Vora”) as part of the Company's existing $ 1 billion stock repurchase program, as well as for working capital management and timing of collections and disbursements. This was partially repaid during the first quarter of 2023, resulting in $ 40 million of revolving loans outstanding at April 1, 2023. Also, at April 1, 2023 , the Company had $ 57 million of outstanding FILO Term Loan Facility loans, $ 39 million of outstanding standby letters of credit, and $ 803 million of available credit under the Third Amended Credit Agreement. The Company was in compliance with all applicable covenants at April 1, 2023 .

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Apr. 01, 2023
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 8. 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 31, 2022 $ ( 39 ) $ ( 38 ) $ ( 77 ) Other comprehensive income activity 2 2 Balance at April 1, 2023 $ ( 37 ) $ ( 38 ) $ ( 75 ) TREASURY STOCK In October 2022, the Board of Directors approved a new stock repurchase program of up to $ 1 billion, available through December 31, 2025, which replaced the existing $ 600 million stock repurchase program effective November 3, 2022. The new authorization may be suspended or discontinued at any time. The exact timing of share repurchases will depend on market conditions and other factors, and will be funded through available cash balances. The Company repurchased 4 million shares in the first quarter of 2023 for total consideration of $ 202 million. Of the total shares repurchased, 2 million shares were purchased from HG Vora for a cost of $ 89 million pursuant to the related stock purchase agreement that the Company entered into with HG Vora, effective March 13, 2023. As of April 1, 2023 , $ 646 million remains available for stock repurchases under the current stock repurchase program. Subsequent to the end of the first quarter of 2023 and through May 3, 2023, the Company repurchased less than 1 million shares of its common stock at a cost of $ 11 million. At April 1, 2023 , there were 28 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 7 for additional information about the Company’s compliance with covenants. DIVIDENDS ON COMMON STOCK The Company did not declare any cash dividends in the first quarter of 2023. The Company does not anticipate declaring cash dividends in the foreseeable future. The Company’s Third Amended Credit Agreement permits restricted payments, such as dividends, but may be limited if the Company does not meet the required minimum liquidity or fixed charge coverage ratio requirements. Refer to Note 7 for additional information about the Company’s compliance with covenants.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	3 Months Ended
	Apr. 01, 2023
Compensation And Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	NOTE 9. 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) 2023 2022 Service cost $ — $ — Interest cost 8 5 Expected return on plan assets ( 9 ) ( 6 ) Amortization of gain ( 1 ) — Net periodic pension benefit $ ( 2 ) $ ( 1 ) The North America qualified pension plan is in a net asset position and included in Other assets in the Condensed Consolidated Balance Sheets at April 1, 2023 and December 31, 2022. The North America nonqualified pension plan is in a net liability position and included in Pension and postretirement obligations, net in the Condensed Consolidated Balance Sheets at April 1, 2023 and December 31, 2022. During the first quarter of 2023 , $ 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 2023. 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) 2023 2022 Service cost $ — $ — Interest cost 2 1 Expected return on plan assets ( 2 ) ( 2 ) Net periodic pension benefit $ — $ ( 1 ) The UK pension plan is in a net asset position and included in Other assets in the Condensed Consolidated Balance Sheets at April 1, 2023 and December 31, 2022. During the first quarter of 2023 , no cash contributions were made to the UK pension plan. The Company is no t required to make any additional cash contributions to the UK pension plan in the remainder of 2023. 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 are reflected in Other income, net, in the Condensed Consolidated Statements of Operations.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Apr. 01, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 10. 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 2023 , the Company recognized asset impairment charges of $ 4 million. Of these asset impairment charges, $ 3 million related to the impairment of operating lease right-of-use (“ROU”) assets associated with the Company’s retail store locations, with the remainder relating to impairment of fixed assets and other impairment. In the first quarter of 2022 , the Company recognized asset impairment charges of $ 2 million, primarily related to the impairment of operating lease ROU assets associated with the Company's retail store locations. All impairment charges discussed in the sections below are presented in Asset impairments in the Condensed Consolidated Statements of Operations. 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 that can naturally 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. 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 2023 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 are uncertainties regarding the impact of supply chain and macroeconomic conditions 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 2023, 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. The Company did not identify any impairment indicators for these long-lived assets as of April 1, 2023, and as a result, there were no associated impairment charges. The Company’s corporate headquarters in Boca Raton met the criteria to be classified as held for sale during the third quarter of 2022. The asset was measured at the lower of its carrying amount or estimated fair value less costs to sell upon classification to held for sale, which was $ 104 million, and did not result in any valuation reserve being recorded. Accordingly, the Company presented its corporate headquarters in Boca Raton within current assets held for sale in the Condensed Consolidated Balance Sheets as of December 31, 2022 and April 1, 2023 . The Company had entered into an agreement in principle with a third-party buyer to sell this facility. The sales transaction was completed on April 6, 2023, for a sale price of $ 104 million. Upon the completion of the sale, the Company also leased back a portion of the building’s office space from the new owner. 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. April 1, December 31, 2023 2022 Carrying Fair Carrying Fair (In millions) Amount Value Amount Value Financial assets: Company-owned life insurance 138 138 138 138 Financial liabilities: Long-term debt: New Facilities loans under the Third Amended Credit 2025 97 97 57 57 Revenue bonds, due in varying amounts periodically 2029 75 76 75 76 American & Foreign Power Company, Inc. 5 % debentures, 2030 15 13 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). Death benefits received on company-owned life insurance policies, which are tax-free at payout, typically exceed their cash surrender values. • 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 7 for additional information about the Third Amended Credit Agreement.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Apr. 01, 2023
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11. 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 the ordinary course of business, sales to and transactions with government customers may be subject to lawsuits, investigations, audits and review by governmental authorities and regulatory agencies, with which the Company cooperates. Many of these lawsuits, investigations, audits and reviews are resolved without material impact to the Company. While claims in these matters may at times assert large demands, the Company does not believe that contingent liabilities related to these matters, either individually or in the aggregate, will materially affect its financial position, results of operations, or cash flows. In 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, threatened 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 April 1, 2023 , 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.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Apr. 01, 2023
Discontinued Operations And Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	NOTE 12. DISCONTINUED OPERATIONS The Company sold its former CompuCom Division through a single disposal group on December 31, 2021. The transaction was structured and accounted for as an equity sale. The related Securities Purchase Agreement (“SPA”) provides for consideration consisting of a cash purchase price equal to $ 125 million (subject to customary adjustments, including for cash, debt and working capital), an interest-bearing promissory note in the amount of $ 55 million, and a holding fee (“earn-out”) provision providing for payments of up to $ 125 million in certain circumstances. The promissory note accrues interest at six percent per annum, payable on a quarterly basis in cash or in-kind, and is due in full on June 30, 2027. Under the earn-out provision, if the purchaser receives dividends or sale proceeds from the CompuCom business equal to (i) three (3) times its initial capital investment in the CompuCom business plus (ii) 15 % per annum on subsequent capital investments, the Company will be entitled to 50 % of any subsequent dividends or sale proceeds up to and until the Company has received an aggregate of $ 125 million. The Company also agreed to provide certain transitional services to the purchaser for a period of three to twelve months under a separate agreement after closing. The SPA contains customary warranties of the Company and the purchaser. In the fourth quarter of 2022, the Company and the purchaser settled on the cash, debt and working capital adjustments, which resulted in the total cash purchase price of $ 104 million. At the closing date of the transaction, on December 31, 2021, the Company had previously received $ 95 million from the purchaser. Of the additional $ 9 million to be received to settle the total cash purchase price, $ 5 million was received in the first quarter of 2023, and the promissory note was amended in February 2023 to include the remaining $ 4 million, bringing its principal balance to $ 59 million. The earn-out provision was identified to be a derivative in accordance with ASC 815, and its fair value was determined using Monte Carlo simulation as $ 9 million. The promissory note and the earn-out are non-current receivables as of April 1, 2023. The Company did not have any financial results related to discontinued operations on its condensed consolidated statement of operations in the first quarter of 2023. The Company had loss on disposal of CompuCom of $ 1 million in the first quarter of 2022, representing third party professional fees incurred in connection with the sale.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The ODP Corporation (including its consolidated subsidiaries, “ODP” or the “Company”) is a leading provider of products, services and technology solutions through an integrated business-to-business (“B2B”) distribution platform and omni-channel presence, which includes supply chain and distribution operations, dedicated sales professionals, a B2B digital procurement solution, online presence, and a network of Office Depot and OfficeMax retail stores. Through its operating companies ODP Business Solutions, LLC; Office Depot, LLC; Veyer, LLC; and Varis, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. The Company has four reportable segments (or “Divisions”), which are ODP Business Solutions Division, Office Depot Division, Veyer Division, and Varis Division. Refer to Note 4 for additional information. The Company’s CompuCom Division was sold through a single disposal group on December 31, 2021. The Company has presented cash flows from the sale of the CompuCom Division as discontinued operations in the Condensed Consolidated Statements of Cash Flows for all periods. There was no impact of discontinued operations on the Condensed Consolidated Statement of Operations for the periods presented in this Quarterly Report on Form 10-Q. Refer to Note 12 for additional information. The Condensed Consolidated Financial Statements as of April 1, 2023, and for the 13-week period ended April 1, 2023 (also referred to as the “first quarter of 2023”) and March 26, 2022 (also referred to as the “first quarter of 2022”) 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. The Company made a business acquisition in 2023 which is included prospectively from the date of acquisition, thus affecting the comparability of the Company’s financial statements for the periods presented in this Quarterly Report on Form 10-Q. Refer to Note 2 for additional information. 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 2022 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year.
Cash Management	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 $ 10 million and $ 16 million at April 1, 2023 and December 31, 2022, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities. At April 1, 2023 and December 31, 2022 , cash and cash equivalents held outside the United States amounted to $ 117 million and $ 113 million, respectively. Restricted cash consists primarily of cash in bank committed to fund UK pension obligations based on the agreements that govern the UK pension plan. Restricted cash is valued at cost, which approximates fair value. Restricted cash was $ 2 million and $ 1 million at April 1, 2023 and December 31, 2022 , respectively.
Revenue and Contract Balances	REVENUE AND CONTRACT BALANCES The Company generates substantially all of its revenue from contracts with customers for the sale of products and services. Refer to Note 4 for information on revenue by reportable segment and product category. Contract balances primarily consist of receivables, assets related to deferred contract acquisition costs, liabilities related to payments received in advance of performance under the contract, and liabilities related to unredeemed gift cards and loyalty programs. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: April 1, December 31, (In millions) 2023 2022 Trade receivables, net 422 412 Short-term contract assets 5 8 Long-term contract assets 2 2 Short-term contract liabilities 40 41 Long-term contract liabilities — — The Company recognized revenues of $ 18 million and $ 13 million in the first quarters of 2023 and 2022, respectively, which were included in the short-term contract liability balance at the beginning of each respective period.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers	The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: April 1, December 31, (In millions) 2023 2022 Trade receivables, net 422 412 Short-term contract assets 5 8 Long-term contract assets 2 2 Short-term contract liabilities 40 41 Long-term contract liabilities — —

MERGER, RESTRUCTURING AND OTH_2

MERGER, RESTRUCTURING AND OTHER ACTIVITY (Tables)	3 Months Ended
	Apr. 01, 2023
Merger Restructuring And Other Activity [Abstract]
Summary of Major Components of Merger, Restructuring and Other Operating Expenses, Net	The table below summarizes the major components of Merger, restructuring and other operating expenses, net. First Quarter (In millions) 2023 2022 Merger and transaction related expenses Transaction and integration $ — $ — Total Merger and transaction related expenses — — Restructuring expenses Severance — — Professional fees — — Facility closure, contract termination, and other expenses, net — 1 Total Restructuring expenses, net — 1 Other operating expenses Professional fees — 9 Total Other operating expenses — 9 Total Merger, restructuring and other operating expenses, net $ — $ 10
Facility Closure and Severance Costs	The activity in the merger, restructuring and other accruals in the first quarter of 2023 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 31, Charges (credits) Cash April 1, (In millions) 2022 Incurred Payments 2023 Termination benefits: Maximize B2B Restructuring Plan 5 — ( 1 ) 4 Lease and contract obligations, accruals for facilities Maximize B2B Restructuring Plan 4 1 ( 1 ) 4 Comprehensive Business Review 1 — — 1 Previously planned separation of consumer business and re-alignment 2 — ( 2 ) — Total $ 12 $ 1 $ ( 4 ) $ 9

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Apr. 01, 2023
Segment Reporting [Abstract]
Summary of Sales and Operating Income (Loss) by Each of the Divisions, Reconciled to Consolidated Totals	The following is a summary of sales and operating income (loss) by each of the Divisions, reconciled to consolidated totals: (In millions) ODP Business Solutions Division Office Depot Division Veyer Division Varis Division Eliminations Total First Quarter of 2023 Sales (external) $ 1,005 $ 1,094 $ 7 $ 2 $ - $ 2,108 Sales (internal) 4 9 1,412 - ( 1,425 ) $ - Total sales $ 1,009 $ 1,103 $ 1,419 $ 2 $ ( 1,425 ) $ 2,108 Division operating income (loss) $ 39 $ 85 $ 15 $ ( 17 ) $ - $ 122 First Quarter of 2022 Sales (external) $ 978 $ 1,194 $ 4 $ 2 $ - $ 2,178 Sales (internal) 6 7 1,529 - ( 1,542 ) - Total sales $ 984 $ 1,201 $ 1,533 $ 2 $ ( 1,542 ) $ 2,178 Division operating income (loss) $ 19 $ 96 $ 8 $ ( 15 ) $ - $ 108
Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) from Continuing Operations Before Income Taxes	The reconciliation of the measure of Division operating income to Consolidated income from continuing operations before income taxes is as follows: First Quarter (In millions) 2023 2022 Total Divisions operating income $ 122 $ 108 Add/(subtract): Asset impairments ( 4 ) ( 2 ) Merger, restructuring and other operating expenses, net - ( 10 ) Unallocated expenses ( 23 ) ( 20 ) Interest income 2 1 Interest expense ( 5 ) ( 5 ) Other income, net 2 2 Income from continuing operations before income taxes $ 94 $ 74
Summary of Disaggregated Revenue from Major Sales Categories	The following table provides information about disaggregated sales by major categories: First Quarter (In millions) 2023 2022 Major sales categories Supplies $ 1,052 $ 1,049 Technology 616 672 Furniture and other 278 311 Copy and print 162 146 Total $ 2,108 $ 2,178
Schedule of Goodwill by Segment	The components of goodwill by segment are as follows: (In millions) Balance as of December 31, 2022 Acquisitions Balance as of April 1, 2023 ODP Business Solutions Division $ 142 $ 3 $ 145 Office Depot Division 219 - 219 Veyer Division 35 - 35 Varis Division 68 - 68 Total $ 464 $ 3 $ 467

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Calculation of Earnings Per Common Share	The following table represents the calculation of earnings per common share – basic and diluted: First Quarter (In millions, except per share amounts) 2023 2022 Basic Earnings Per Share Numerator: Net income from continuing operations $ 72 $ 55 Income from discontinued operations, net of tax — — Net income $ 72 $ 55 Denominator: Weighted-average shares outstanding 40 49 Basic earnings per share Continuing operations $ 1.79 $ 1.14 Discontinued operations — — Net basic earnings per share $ 1.79 $ 1.14 Diluted Earnings Per Share Numerator: Net income from continuing operations $ 72 $ 55 Income from discontinued operations, net of tax — — Net income $ 72 $ 55 Denominator: Weighted-average shares outstanding 40 49 Effect of dilutive securities: Stock options and restricted stock 2 2 Diluted weighted-average shares outstanding 42 51 Diluted earnings per share Continuing operations $ 1.71 $ 1.09 Discontinued operations — — Net diluted earnings per share $ 1.71 $ 1.09

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Apr. 01, 2023
Equity [Abstract]
Accumulated Other Comprehensive Loss Activity, Net of Tax	Accumulated other comprehensive loss activity, net of tax, where applicable, is provided in the following table: Foreign Change in Currency Deferred Translation Pension and (In millions) Adjustments Other Total Balance at December 31, 2022 $ ( 39 ) $ ( 38 ) $ ( 77 ) Other comprehensive income activity 2 2 Balance at April 1, 2023 $ ( 37 ) $ ( 38 ) $ ( 75 )

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	3 Months Ended
	Apr. 01, 2023
Compensation And Retirement Disclosure [Abstract]
Components of Net Periodic Pension Benefit	The components of net periodic pension benefit for the Company’s North America pension plans are as follows: First Quarter (In millions) 2023 2022 Service cost $ — $ — Interest cost 8 5 Expected return on plan assets ( 9 ) ( 6 ) Amortization of gain ( 1 ) — 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) 2023 2022 Service cost $ — $ — Interest cost 2 1 Expected return on plan assets ( 2 ) ( 2 ) Net periodic pension benefit $ — $ ( 1 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Apr. 01, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Assets and Liabilities	The following table presents information about financial instruments at the balance sheet dates indicated. April 1, December 31, 2023 2022 Carrying Fair Carrying Fair (In millions) Amount Value Amount Value Financial assets: Company-owned life insurance 138 138 138 138 Financial liabilities: Long-term debt: New Facilities loans under the Third Amended Credit 2025 97 97 57 57 Revenue bonds, due in varying amounts periodically 2029 75 76 75 76 American & Foreign Power Company, Inc. 5 % debentures, 2030 15 13 15 14

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2023 USD ($)	Apr. 01, 2023 USD ($) Division	Apr. 01, 2023 USD ($) Segment	Mar. 26, 2022 USD ($)	Dec. 31, 2022 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments		4	4
Accounts payable and accrued expenses and other current liabilities not yet presented for payment	$ 10	$ 10	$ 10		$ 16
Cash and cash equivalents	343	343	343		403
Restricted cash	2	2	2		1
Revenue recognition included in short-term contract liabilities	18			$ 13
Non-US
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 117	$ 117	$ 117		$ 113

Summary of Receivables, Contrac

Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Millions	Apr. 01, 2023	Dec. 31, 2022
Contract With Customer Asset And Liability [Abstract]
Trade receivables, net	$ 422	$ 412
Short-term contract assets	5	8
Long-term contract assets	2	2
Short-term contract liabilities	$ 40	$ 41

Summary of Major Components of

Summary of Major Components of Merger and Restructuring Expenses, Net (Detail) $ in Millions	3 Months Ended
	Mar. 26, 2022 USD ($)
Restructuring expenses
Facility closure, contract termination, and other expenses, net	$ 1
Total Restructuring expenses, net	1
Other operating expenses
Professional fees	9
Total Other operating expenses	9
Total Merger, restructuring and other operating expenses, net	$ 10

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - USD ($)	1 Months Ended
	Jan. 31, 2023	Apr. 01, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 467,000,000	$ 464,000,000
January 2023 Acquisition
Business Acquisition [Line Items]
Goodwill	$ 3,000,000
January 2023 Acquisition | Minimum [Member]
Business Acquisition [Line Items]
Business combination consideration transferred	5,000,000
January 2023 Acquisition | Maximum
Business Acquisition [Line Items]
Business combination consideration transferred	$ 15,000,000

Merger, Restructuring and Oth_3

Merger, Restructuring and Other Activity - Additional Information (Detail)	1 Months Ended	3 Months Ended					27 Months Ended	36 Months Ended
	May 31, 2020 USD ($)	Apr. 01, 2023 Division	Apr. 01, 2023 USD ($)	Apr. 01, 2023 Store	Apr. 01, 2023 Segment	Mar. 26, 2022 USD ($)	Apr. 01, 2023 USD ($)	Dec. 31, 2022 Store Facility
Merger Restructuring And Other Activity [Line Items]
Transaction and integration expenses						$ 0
Costs to implement restructuring plan			$ 1,000,000
Restructuring cash expenditure			4,000,000
Number of reportable segments		4			4
Maximum
Merger Restructuring And Other Activity [Line Items]
Transaction and integration expenses			1,000,000
Maximize B2B Restructuring Plan
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan						1,000,000	$ 81,000,000
Number of retail stores closed | Store				20				237
Number of distribution facilities closed | Facility								2
Restructuring cash expenditure			3,000,000			2,000,000
Maximize B2B Restructuring Plan | Cash Expenditures
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan							$ 64,000,000
Maximize B2B Restructuring Plan | Other Costs Including Contract Termination Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan			1,000,000
Restructuring cash expenditure			1,000,000
Maximize B2B Restructuring Plan | Maximum
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan	$ 95,000,000		$ 1,000,000
Planned Separation of Consumer Business | Third-Party Professional Fees
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan						$ 9,000,000

Severance and Facility Closure

Severance and Facility Closure Costs (Detail) - USD ($) $ in Millions	3 Months Ended		27 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Apr. 01, 2023
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 12
Charges (credits) Incurred	1
Cash Payments	(4)
Ending Balance	9		$ 9
Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Charges (credits) Incurred		$ 1	81
Cash Payments	(3)	$ (2)
Termination Benefits | Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance	5
Cash Payments	(1)
Ending Balance	4		4
Lease and contract obligations, accruals for facilities closures and other costs | Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance	4
Charges (credits) Incurred	1
Cash Payments	(1)
Ending Balance	4		4
Lease and contract obligations, accruals for facilities closures and other costs | Comprehensive Business Review
Restructuring Cost and Reserve [Line Items]
Beginning Balance	1
Ending Balance	1		$ 1
Lease and contract obligations, accruals for facilities closures and other costs | Previously Planned Separation of Consumer Business and Realignment
Restructuring Cost and Reserve [Line Items]
Beginning Balance	2
Cash Payments	$ (2)

Segment Information - Additiona

Segment Information - Additional Information (Detail) - 3 months ended Apr. 01, 2023	Division	Segment	Location	Total
Segment Reporting [Abstract]
Number of reportable segments	4	4
Number of office depot and officemax retail locations			959
Percentage of fair value exceeded carrying amount of goodwill				21%

Reconciliation of Revenue from

Reconciliation of Revenue from Segments to Consolidated (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Segment Reporting Information [Line Items]
Sales	$ 2,108	$ 2,178
Division operating income (loss)	122	108
External
Segment Reporting Information [Line Items]
Sales	2,108	2,178
Eliminations
Segment Reporting Information [Line Items]
Sales	(1,425)	(1,542)
Eliminations | Internal
Segment Reporting Information [Line Items]
Sales	(1,425)	(1,542)
ODP Business Solutions Division | Operating Segments
Segment Reporting Information [Line Items]
Sales	1,009	984
Division operating income (loss)	39	19
ODP Business Solutions Division | Operating Segments | External
Segment Reporting Information [Line Items]
Sales	1,005	978
ODP Business Solutions Division | Operating Segments | Internal
Segment Reporting Information [Line Items]
Sales	4	6
Office Depot Division | Operating Segments
Segment Reporting Information [Line Items]
Sales	1,103	1,201
Division operating income (loss)	85	96
Office Depot Division | Operating Segments | External
Segment Reporting Information [Line Items]
Sales	1,094	1,194
Office Depot Division | Operating Segments | Internal
Segment Reporting Information [Line Items]
Sales	9	7
Veyer Division | Operating Segments
Segment Reporting Information [Line Items]
Sales	1,419	1,533
Division operating income (loss)	15	8
Veyer Division | Operating Segments | External
Segment Reporting Information [Line Items]
Sales	7	4
Veyer Division | Operating Segments | Internal
Segment Reporting Information [Line Items]
Sales	1,412	1,529
Varis Division | Operating Segments
Segment Reporting Information [Line Items]
Sales	2	2
Division operating income (loss)	(17)	(15)
Varis Division | Operating Segments | External
Segment Reporting Information [Line Items]
Sales	$ 2	$ 2

Reconciliation of Measure of Di

Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Segment Reporting [Abstract]
Total Divisions operating income	$ 122	$ 108
Asset impairments	(4)	(2)
Merger, restructuring and other operating expenses, net		(10)
Unallocated expenses	(23)	(20)
Interest income	2	1
Interest expense	(5)	(5)
Other income, net	2	2
Income from continuing operations before income taxes	$ 94	$ 74

Summary of Disaggregated Revenu

Summary of Disaggregated Revenue from Major Sales Categories (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Segment Reporting Information [Line Items]
Sales	$ 2,108	$ 2,178
Products, Supplies
Segment Reporting Information [Line Items]
Sales	1,052	1,049
Products, Technology
Segment Reporting Information [Line Items]
Sales	616	672
Products, Furniture and Other
Segment Reporting Information [Line Items]
Sales	278	311
Services, Copy and Print
Segment Reporting Information [Line Items]
Sales	$ 162	$ 146

Schedule of Goodwill by Segment

Schedule of Goodwill by Segment (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2023 USD ($)
Goodwill [Line Items]
Balance as of December 31, 2022	$ 464
Balance as of April 1, 2023	467
Operating Segments
Goodwill [Line Items]
Balance as of December 31, 2022	464
Acquisitions	3
Balance as of April 1, 2023	467
ODP Business Solutions Division | Operating Segments
Goodwill [Line Items]
Balance as of December 31, 2022	142
Acquisitions	3
Balance as of April 1, 2023	145
Office Depot Division | Operating Segments
Goodwill [Line Items]
Balance as of December 31, 2022	219
Balance as of April 1, 2023	219
Veyer Division | Operating Segments
Goodwill [Line Items]
Balance as of December 31, 2022	35
Balance as of April 1, 2023	35
Varis Division | Operating Segments
Goodwill [Line Items]
Balance as of December 31, 2022	68
Balance as of April 1, 2023	$ 68

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Income Taxes [Line Items]
Effective income tax rate reconciliation, at federal statutory income tax rate, percent	21%
Effective tax rate	23%	26%
Unrecognized tax benefits, material tax positions	$ 1

Calculation of Earnings Per Com

Calculation of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Basic Earnings Per Share
Net income from continuing operations	$ 72	$ 55
Net income	$ 72	$ 55
Weighted-average shares outstanding	40	49
Continuing operations	$ 1.79	$ 1.14
Net basic earnings per share	$ 1.79	$ 1.14
Diluted Earnings Per Share
Net income from continuing operations	$ 72	$ 55
Net income	$ 72	$ 55
Weighted-average shares outstanding	40	49
Stock options and restricted stock	2	2
Diluted weighted-average shares outstanding	42	51
Continuing operations	$ 1.71	$ 1.09
Net diluted earnings per share	$ 1.71	$ 1.09

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
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 share	1,000,000	1,000,000

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)		3 Months Ended
	Apr. 17, 2020	Apr. 01, 2023	Mar. 26, 2022	Nov. 02, 2022	Oct. 31, 2022
Debt Instrument [Line Items]
Stock repurchase program, authorized amount				$ 600,000,000
Maximum
Debt Instrument [Line Items]
Stock repurchase program, authorized amount		$ 1,000,000,000			$ 1,000,000,000
Third Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility	$ 1,300,000,000
Maturity date of debt	Apr. 17, 2025
Available credit under the facility		803,000,000
Drawings under credit agreement		100,000,000
Revolving loans outstanding		40,000,000
Third Amended and Restated Credit Agreement | Asset-based Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility	$ 1,200,000,000
Third Amended and Restated Credit Agreement | Asset-based First-in, Last-out Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility	$ 100,000,000
Retirement of term loan facility			$ 43,000,000
Borrowing under credit facility		57,000,000
Third Amended and Restated Credit Agreement | Standby Letter of Credit
Debt Instrument [Line Items]
Borrowing under credit facility		$ 39,000,000
Third Amended and Restated Credit Agreement | Minimum [Member] | Asset-based Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, increase (decrease), net			200,000,000
Third Amended and Restated Credit Agreement | Maximum | Asset-based Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, increase (decrease), net			$ 1,000,000,000

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss Activity, Net of Tax (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2023 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 1,287
Balance	1,148
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(39)
Other comprehensive income activity	2
Balance	(37)
Change in Deferred Pension and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(38)
Balance	(38)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(77)
Other comprehensive income activity	2
Balance	$ (75)

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	May 03, 2023	Apr. 01, 2023	Dec. 31, 2022	Nov. 02, 2022	Oct. 31, 2022
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount				$ 600,000,000
Stock repurchase program, shares purchased		4,000,000
Stock repurchase program, shares purchased at cost		$ 202,000,000
Stock repurchase program, remaining authorized repurchase amount		$ 646,000,000
Treasury stock, shares		27,685,609	23,422,969
Maximum
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount		$ 1,000,000,000			$ 1,000,000,000
Subsequent Event
Shareholders Equity [Line Items]
Stock repurchase program, shares purchased at cost	$ 11,000,000
Subsequent Event | Maximum
Shareholders Equity [Line Items]
Stock repurchase program, shares purchased	1,000,000
HG Vora
Shareholders Equity [Line Items]
Stock repurchase program, shares purchased		2,000,000
Stock repurchase program, shares purchased at cost		$ 89,000,000

Components of Net Periodic Pens

Components of Net Periodic Pension Benefit (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
North America
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0
Interest cost	8	5
Expected return on plan assets	(9)	(6)
Amortization of gain	(1)	0
Net periodic pension benefit	(2)	(1)
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	2	1
Expected return on plan assets	$ (2)	(2)
Net periodic pension benefit		$ (1)

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Detail)	3 Months Ended
	Apr. 01, 2023 USD ($)
North America
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, current period	$ 1,000,000
Pension and other postretirement contributions, remainder of fiscal year	1,000,000
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, current period	0
Pension and other postretirement contributions, remainder of fiscal year	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
	Apr. 06, 2023	Apr. 01, 2023	Mar. 26, 2022	Sep. 24, 2022
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Asset impairment charges		$ 4	$ 2
Impairment of operating lease ROU assets		$ 3
Subsequent Event
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Sale price of asset held for sale	$ 104
Carrying Amount
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets held for sale				$ 104
Retail Stores | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Percentage used for analysis		8%

Schedule of Fair Value of Asset

Schedule of Fair Value of Assets and Liabilities (Detail) - USD ($) $ in Millions	Apr. 01, 2023	Dec. 31, 2022
Carrying Amount
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Company-owned life insurance	$ 138	$ 138
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 value	97	57
Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Company-owned life insurance	138	138
Fair Value | 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 value	97	57
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 value	75	75
Revenue bonds, due in varying amounts periodically through 2029 | Fair Value | Long-Term Debt
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, fair value	76	76
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
American & Foreign Power Company, Inc. 5% debentures, due 2030 | Fair Value | Long-Term Debt
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 13	$ 14

Schedule of Fair Value of Ass_2

Schedule of Fair Value of Assets and Liabilities (Parenthetical) (Detail) - Long-Term Debt	3 Months Ended	12 Months Ended
	Apr. 01, 2023	Dec. 31, 2022
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 date	2025	2025
Carrying Amount | Revenue bonds, due in varying amounts periodically through 2029
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, due date	2029	2029
Carrying Amount | American & Foreign Power Company, Inc. 5% debentures, due 2030
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, due date	2030	2030
Long-term debt, interest rate	5%	5%
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 date	2025	2025
Fair Value | Revenue bonds, due in varying amounts periodically through 2029
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, due date	2029	2029
Fair Value | American & Foreign Power Company, Inc. 5% debentures, due 2030
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, due date	2030	2030
Long-term debt, interest rate	5%	5%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Apr. 01, 2023 USD ($)
Minimum [Member]
Commitments And Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 15,000,000
Maximum
Commitments And Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 25,000,000

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions		1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2021	Feb. 28, 2023	Apr. 01, 2023	Mar. 26, 2022	Dec. 25, 2021	Dec. 31, 2022
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Promissory note receivable obtained from disposition of discontinued operations			$ 59	$ 55
Securities Purchase Agreement | CompuCom Division
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Cash purchase price					$ 125	$ 104
Interest bearing promissory note					55
Provision for payment					$ 125
Accrues interest of promissory note					6%
Capital investment percentage					15%
Dividend percentage					50%
Aggregate sale proceeds	$ 95		$ 5		$ 125
Receivables, net						$ 9
Non-current receivable		$ 4
Promissory note receivable obtained from disposition of discontinued operations		59
Earnout payment		$ 9
Gain (loss) on disposal of discontinued operations				$ 1
Minimum [Member] | Securities Purchase Agreement | CompuCom Division
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Purchase period					3 months
Maximum | Securities Purchase Agreement | CompuCom Division
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Purchase period					12 months