The ODP Corporation (ODP) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 25, 2022	Jul. 27, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 25, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Trading Symbol	ODP
Entity Registrant Name	The ODP Corporation
Entity Central Index Key	0000800240
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		48,633,351
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		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Income Statement [Abstract]
Sales	$ 2,034	$ 2,070	$ 4,212	$ 4,244
Cost of goods and occupancy costs	1,603	1,638	3,296	3,317
Gross profit	431	432	916	927
Selling, general and administrative expenses	377	390	773	792
Asset impairments	3	1	5	13
Merger, restructuring and other operating expenses, net	23	11	34	23
Operating income	28	30	104	99
Other income (expense):
Interest income	1		2
Interest expense	(4)	(6)	(9)	(14)
Other income, net	3	5	5	17
Income from continuing operations before income taxes	28	29	102	102
Income tax expense	8	9	27	20
Net income from continuing operations	20	20	75	82
Discontinued operations, net of tax	7	(108)	7	(117)
Net income (loss)	$ 27	$ (88)	$ 82	$ (35)
Basic earnings (loss) per share
Continuing operations	$ 0.40	$ 0.36	$ 1.54	$ 1.53
Discontinued operations	0.15	(1.98)	0.14	(2.18)
Net basic earnings per share	0.55	(1.62)	1.68	(0.65)
Diluted earnings (loss) per share
Continuing operations	0.39	0.35	1.49	1.47
Discontinued operations	0.15	(1.93)	0.14	(2.10)
Net diluted earnings per share	$ 0.54	$ (1.58)	$ 1.63	$ (0.63)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 27	$ (88)	$ 82	$ (35)
Other comprehensive income (loss), net of tax, where applicable:
Foreign currency translation adjustments	(11)	4	(12)	9
Reclassification of foreign currency translation adjustments realized upon disposal of business			6
Other	(2)	1	(2)	1
Total other comprehensive income (loss), net of tax, where applicable	(13)	5	(8)	10
Comprehensive income (loss)	$ 14	$ (83)	$ 74	$ (25)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 25, 2022	Dec. 25, 2021
Current assets:
Cash and cash equivalents	$ 417	$ 514
Receivables, net	566	495
Inventories	968	859
Prepaid expenses and other current assets	60	52
Current assets held for sale		469
Total current assets	2,011	2,389
Property and equipment, net	461	477
Operating lease right-of-use assets	904	936
Goodwill	464	464
Other intangible assets, net	50	54
Deferred income taxes	207	219
Other assets	377	326
Total assets	4,474	4,865
Current liabilities:
Trade accounts payable	917	950
Accrued expenses and other current liabilities	955	994
Income taxes payable	14	11
Short-term borrowings and current maturities of long-term debt	17	20
Current liabilities held for sale		290
Total current liabilities	1,903	2,265
Deferred income taxes and other long-term liabilities	139	159
Pension and postretirement obligations, net	18	22
Long-term debt, net of current maturities	177	228
Operating lease liabilities	724	753
Total liabilities	2,961	3,427
Commitments and contingencies
Stockholders' equity:
Common stock — authorized 80,000,000 shares of $0.01 par value; issued shares — 65,500,578 at June 25, 2022 and 64,704,979 at December 25, 2021; outstanding shares — 48,504,879 at June 25, 2022 and 48,455,951 at December 25, 2021	1	1
Additional paid-in capital	2,723	2,692
Accumulated other comprehensive loss	(14)	(6)
Accumulated deficit	(535)	(617)
Treasury stock, at cost — 16,995,699 shares at June 25, 2022 and 16,249,028 shares at December 25, 2021	(662)	(632)
Total stockholders' equity	1,513	1,438
Total liabilities and stockholders’ equity	$ 4,474	$ 4,865

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 25, 2022	Dec. 25, 2021
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	65,500,578	64,704,979
Common stock, shares, outstanding	48,504,879	48,455,951
Treasury stock, shares	16,995,699	16,249,028

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021
Cash flows from operating activities:
Net income (loss)	$ 82	$ (35)
Income (loss) from discontinued operations, net of tax	7	(117)
Net income from continuing operations	75	82
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	68	74
Charges for losses on receivables and inventories	8	10
Asset impairments	5	13
Gain on disposition of assets, net	(3)	(3)
Compensation expense for share-based payments	19	20
Deferred income taxes and deferred tax asset valuation allowances	12	7
Changes in working capital and other operating activities	(268)	(68)
Net cash provided by (used in) operating activities of continuing operations	(84)	135
Net cash used in operating activities of discontinued operations		(60)
Net cash provided by (used in) operating activities	(84)	75
Cash flows from investing activities:
Capital expenditures	(43)	(28)
Businesses acquired, net of cash acquired		(28)
Proceeds from disposition of assets	6	3
Settlement of company-owned life insurance policies	2	21
Net cash used in investing activities of continuing operations	(35)	(32)
Net cash provided by (used in) investing activities of discontinued operations	74	(1)
Net cash provided by (used in) investing activities	39	(33)
Cash flows from financing activities:
Net payments on long and short-term borrowings	(11)	(13)
Debt retirement	(43)
Share purchases for taxes, net of proceeds from employee share-based transactions	(17)	(23)
Repurchase of common stock for treasury		(46)
Other financing activities	(3)	(1)
Net cash used in financing activities of continuing operations	(74)	(83)
Effect of exchange rate changes on cash and cash equivalents	(1)	3
Net decrease in cash and cash equivalents	(120)	(38)
Cash and cash equivalents at beginning of period	537	729
Cash and cash equivalents at end of period – continuing operations	417	691
Supplemental information on non-cash investing and financing activities
Right-of-use assets obtained in exchange for new finance lease liabilities		2
Right-of-use assets obtained in exchange for new operating lease liabilities	113	37
Business acquired in exchange for common stock issuance		$ 35
Other current receivable obtained from disposition of discontinued operations	30
Promissory note receivable obtained from disposition of discontinued operations	55
Earn-out receivable obtained from disposition of discontinued operations	9
Transfer from additional paid-in capital to treasury stock for final settlement of the accelerated share repurchase agreement	$ 29

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	BuyerQuest Acquisition	Common Stock	Common Stock BuyerQuest Acquisition	Additional Paid-in Capital	Additional Paid-in Capital BuyerQuest Acquisition	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock
Balance at Dec. 26, 2020	$ 1,880		$ 1		$ 2,675		$ (32)	$ (409)	$ (355)
Balance, Shares at Dec. 26, 2020			62,551,255
Net income (loss)	53							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 grants	10				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, 2021			64,604,629
Balance at Dec. 26, 2020	1,880		$ 1		2,675		(32)	(409)	(355)
Balance, Shares at Dec. 26, 2020			62,551,255
Net income (loss)	(35)
Other comprehensive income (loss)	10
Balance at Jun. 26, 2021	1,841		$ 1		2,707		(22)	(444)	(401)
Balance, Shares at Jun. 26, 2021			64,623,396
Balance at Mar. 27, 2021	1,960		$ 1		2,697		(27)	(356)	(355)
Balance, Shares at Mar. 27, 2021			64,604,629
Net income (loss)	(88)							(88)
Other comprehensive income (loss)	5						5
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)			18,767
Amortization of long-term incentive stock grants	10				10
Repurchase of common stock	(46)								(46)
Balance at Jun. 26, 2021	1,841		$ 1		2,707		(22)	(444)	(401)
Balance, Shares at Jun. 26, 2021			64,623,396
Balance at Dec. 25, 2021	1,438		$ 1		2,692		(6)	(617)	(632)
Balance, Shares at Dec. 25, 2021			64,704,979
Net income (loss)	55							55
Other comprehensive income (loss)	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. 25, 2021	1,438		$ 1		2,692		(6)	(617)	(632)
Balance, Shares at Dec. 25, 2021			64,704,979
Net income (loss)	82
Other comprehensive income (loss)	(8)
Balance at Jun. 25, 2022	1,513		$ 1		2,723		(14)	(535)	(662)
Balance, Shares at Jun. 25, 2022			65,500,578
Balance at Mar. 26, 2022	1,492		$ 1		2,687		(1)	(562)	(633)
Balance, Shares at Mar. 26, 2022			65,357,585
Net income (loss)	27							27
Other comprehensive income (loss)	(13)						(13)
Exercise and release of incentive stock (including income tax benefits and withholding)	(3)				(3)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)			142,993
Amortization of long-term incentive stock grants	10				10
Final settlement of the accelerated share repurchase agreement					29				(29)
Balance at Jun. 25, 2022	$ 1,513		$ 1		$ 2,723		$ (14)	$ (535)	$ (662)
Balance, Shares at Jun. 25, 2022			65,500,578

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 25, 2022
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”), At June 25, 2022, the Company had two reportable segments (or “Divisions”): Business Solutions Division and Retail Division. The Company’s CompuCom Division was sold through a single disposal group on December 31, 2021. The Company has reclassified the financial results of the CompuCom Division to Discontinued operations, net of tax in the Condensed Consolidated Statements of Operations for all periods presented. The Company also reclassified the related assets and liabilities as assets and liabilities held for sale on the accompanying Condensed Consolidated Balance Sheet s a s of December 25, 2021, and presented cash flows from the Company’s discontinued operations in the Condensed Consolidated Statements of Cash Flows for all periods. The Condensed Consolidated Financial Statements as of June 25, 2022, and for the 13-week and 26-week periods ended June 25, 2022 (also referred to as the “second quarter of 2022” and the “first half of 2022,” respectively) and June 26, 2021 (also referred to as the “second quarter of 2021” and the “first half of 2021,” respectively) 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 2021 are included prospectively from the date of acquisition, thus affecting the comparability of the Company’s financial statements for the 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 2021 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year. MAINTAINING ALL OPERATING BUSINESSES UNDER COMMON OWNERSHIP 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 representing its B2B and consumer businesses, which was planned to be achieved through a spin-off of its consumer business. On January 14, 2022, the Company announced that its Board of Directors determined to delay the previously announced public company separation to evaluate a potential sale of the Company’s consumer business and that it had received a non-binding proposal from another third party, in addition to the previously received proposal from USR Parent, Inc., to acquire the Company’s consumer business. On June 21, 2022, the Company’s Board of Directors, with the assistance of its financial and legal advisors, completed its review of both proposals received by the Company to acquire its consumer business and unanimously determined it to be in the best interests of the Company and its shareholders not to divest the consumer business at this time. Further, due to current market conditions, the Company’s Board of Directors also determined not to resume the Company’s previously planned spin-off of its consumer business at this time and instead to maintain all of its businesses under common ownership. In connection with the Company’s announcement to maintain all of its businesses under common ownership, the Company announced that it is re-aligning its operations into its consumer business named Office Depot, and three distinct B2B business and digital segments which are ODP Business Solutions, Veyer and Varis. As of the end of the second quarter, the Company continues to 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 $7 million at June 25, 2022 are presented in Trade accounts payable and Accrued expenses and other current liabilities, and $1 million at December 25, 2021 are presented in Current liabilities held for sale. At June 25, 2022 and December 25, 2021, cash and cash equivalents held outside the United States amounted to $110 million and $108 million, respectively. At December 25, 2021, there was $17 million cash and cash equivalents held outside the United States included in Current assets held for sale.

MERGER, RESTRUCTURING AND OTHER

MERGER, RESTRUCTURING AND OTHER ACTIVITY	6 Months Ended
	Jun. 25, 2022
Merger Restructuring And Other Activity [Abstract]
MERGER, RESTRUCTURING AND OTHER ACTIVITY	NOTE 2. 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 Second Quarter First Half (In millions) 2022 2021 2022 2021 Merger and transaction related expenses Transaction and integration $ — $ — — 1 Total Merger and transaction related expenses — — — 1 Restructuring expenses Severance (1 ) (2 ) (1 ) (1 ) Professional fees — — — — Facility closure, contract termination, and other expenses, net 1 — 2 9 Total Restructuring expenses, net — (2 ) 1 8 Other operating expenses Professional fees 23 13 33 14 Total Other operating expenses 23 13 33 14 Total Merger, restructuring and other operating expenses, net $ 23 $ 11 $ 34 $ 23 MERGER AND TRANSACTION RELATED EXPENSES In the second quarter and first half of 202 2 , the Company did no t incur any transaction and integration expenses. In the second quarter of 2021, the Company did no t incur any transaction and integration expenses. In the first half of 2021 , the Company incur red transaction and integration expenses of $ 1 million primarily related to its acquisition of BuyerQuest Holdings, Inc. (“BuyerQuest”), which is part of its Varis Division . 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 12 and 18 retail stores in the second quarter and first half of 2022, respectively, 111 2021, and (a) severance costs of approximately $49 million; (b) facility closure costs of approximately $34 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 $28 million. The total costs of up to $111 million above are less than the Company’s estimate of total costs for this restructuring plan when it commenced, mainly as a result of the reduction in the number of expected retail store and distribution facility closures based upon the Company’s most recent evaluation of economic factors that influence expected store closures. There could be further fluctuations in the estimate of total expected costs in the future and timing of such costs as a result of an assessment of general market conditions and changes in the Company’s business strategy. In addition, the reduction of employee positions may also be impacted as a result of fewer retail store closures and the changes in the Company’s business strategy. The $111 million of total costs are expected to be incurred as cash expenditures through 2023 and funded primarily with cash on hand and cash from operations. The Company incurred $96 million in restructuring expenses to implement the Maximize B2B Restructuring Plan since its inception in 2020 and through the second quarter of 2022, of which $56 million were cash expenditures. In the second quarter and first half of 2022, the Company incurred $1 million and $2 million, respectively, in facility closure and other costs associated with the Maximize B2B Restructuring Plan. The Company also reversed $1 million of employee severance accruals in the second quarter and first half of 2022 due to changes in estimates. The Company had $1 million and $3 million of cash expenditures in the second quarter and first half of 2022, respectively, associated with the Maximize B2B Restructuring Plan. In the second quarter of 2021, the Company incurred $(2) million, net, in restructuring expenses associated with the Maximize B2B Restructuring Plan, which consisted of $2 million in reversal of employee severance accruals due to changes in estimates and a $1 million gain on sale of retail store assets, partially offset by $1 million of facility closure, contract termination and other costs. In the first half of 2021, the Company incurred $ 8 million in restructuring expenses associated with the Maximize B2B Restructuring Plan, which consisted of $ 10 million of retail store and facility closure costs, contract termination and other that were mainly related to closure accruals and accelerated depreciation, partially offset by $ 1 million in reversal of employee severance accruals due to changes in estimates and a $1 million gain on sale of retail store assets. Of these amounts, $ 11 million and $15 m illion were cash expenditures in the second quarter and first half of 2021, respectively. OTHER OPERATING EXPENSES As described in Note 1 above, the Company had been evaluating the separation of its consumer business, first through a spin-off and subsequently through a potential sale. On June 21, 2022, the Company’s Board of Directors, with the assistance of its financial and legal advisors, completed its review of both proposals received by the Company to acquire its consumer business and unanimously determined it to be in the best interests of the Company and its shareholders not to divest the consumer business at this time. Further, due to current market conditions, the Company’s Board of Directors also determined not to resume the Company’s previously planned separation of its consumer business at this time and instead to maintain all of its businesses under common ownership. The Company incurred $23 million and $33 million in third-party professional fees in the second quarter and first half of 2022, respectively, related to separation activities. The Company had incurred $32 million in third-party professional fees associated with separation activities in 2021. Other operating expenses of $2 million and $3 million in the second quarter and first half of 2021, respectively, represent third-party professional fees incurred related to the evaluation of USR Parent, Inc.’s proposals received during the first half of 2021. MERGER, RESTRUCTURING AND OTHER ACCRUALS The activity in the merger, restructuring and other accruals in the first half of 2022 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 25, Charges (credits) Cash June 25, (In millions) 2021 Incurred Payments 2022 Termination benefits: Maximize B2B Restructuring Plan 19 (1 ) — 18 Lease and contract obligations, accruals for facilities closures and other costs: Maximize B2B Restructuring Plan 6 2 (3 ) 5 Comprehensive Business Review 1 — — 1 Previously planned separation of consumer business 2 32 (18 ) 16 Total $ 28 $ 33 $ (21 ) $ 40 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 RECOGNITION	6 Months Ended
	Jun. 25, 2022
Revenue From Contract With Customer [Abstract]
REVENUE RECOGNITION	NOTE 3. REVENUE RECOGNITION REVENUE As a result of the CompuCom Division’s presentation as discontinued operations, the Company’s level of service revenue is below 10% of the Company’s total revenue for all periods presented. Accordingly, revenues and cost of sales from services and products are not separately disclosed in the Company’s Condensed Consolidated Statements of Operations. The Company updated its major revenue categories disclosed herein according to this presentation, and prior period amounts have been reclassified to conform to the current period presentation. The following table provides information about disaggregated revenue from continuing operations by Division, and major revenue categories. Second Quarter of 2022 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 686 $ 286 $ 4 $ 976 Technology 278 321 2 601 Furniture and other 187 112 2 301 Copy and print 64 92 — 156 Total $ 1,215 $ 811 $ 8 $ 2,034 Second Quarter of 2021 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 599 $ 304 $ 3 $ 906 Technology 298 397 2 697 Furniture and other 189 126 5 320 Copy and print 60 87 — 147 Total $ 1,146 $ 914 $ 10 $ 2,070 First Half of 2022 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 1,383 $ 637 $ 6 $ 2,026 Technology 565 704 4 1,273 Furniture and other 371 238 3 612 Copy and print 126 175 — 301 Total $ 2,445 $ 1,754 $ 13 $ 4,212 First Half of 2021 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 1,179 $ 671 $ 5 $ 1,855 Technology 608 849 3 1,460 Furniture and other 367 270 9 646 Copy and print 120 163 — 283 Total $ 2,274 $ 1,953 $ 17 $ 4,244 Revenue includes the sale of: • Supplies such as paper, writing instruments, office supplies, cleaning and breakroom items, personal protective equipment, and product subscriptions; • Technology-related products such as toner and ink, printers, computers, tablets and accessories, electronic storage and sales of third-party software, as well as technology support services offerings provided in the Company’s retail stores, such as installation and repair; • Furniture and other products such as desks, seating, luggage, gift cards and warranties; and • Copy and print services, including managed print and fulfillment services. The Company sells its supplies, technology, furniture and other products through its Business Solutions and Retail 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. Substantially all of the Company’s copy and print and technology support services offerings are satisfied at a point in time and revenue is recognized as such. The majority of copy and print offerings, which includes printing, copying, and digital imaging, 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 have significant revenues generated from such contracts in the first halves of 2022 and 2021. 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 June 25, 2022 and December 25, 2021, the Company had $8 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: June 25, December 25, (In millions) 2022 2021 Trade receivables, net $ 413 $ 353 Short-term contract assets 11 16 Long-term contract assets 4 8 Short-term contract liabilities 33 52 Long-term contract liabilities — 2 In the first halves of 2022 and 2021, the Company did not There were no contract assets and liabilities that were recognized in the first half of 2022 as a result of business combinations. 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 June 25, 2022 and December 25, 2021, short-term contract assets and long-term contract assets in the table above represent capitalized acquisition costs. In the second quarter and first half of 2022, amortization expense was $5 million and $10 million, respectively. In the second quarter and first half of 2021, amortization expense was $6 million and $12 million, respectively. The Company had no asset impairment charges related to contract assets in the periods presented herein. T here is uncertainty regarding the continued impacts of COVID-19 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 INFORMATION	6 Months Ended
	Jun. 25, 2022
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 4. SEGMENT INFORMATION A t June 25, 2022, the Company had two reportable segments: Business Solutions Division and Retail Division. The Business Solutions Division sells nationally branded as well as the Company’s private branded office supply and adjacency products and services to customers in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. Business Solutions Division customers are served through a dedicated sales force, catalogs, telesales, and electronically through the Company’s Internet websites. The Retail Division includes a chain of retail stores in the United States, Puerto Rico and the U.S. Virgin Islands, which sell office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture as well as offer business services including copying, printing, digital imaging, mailing, shipping and technology support services. In addition, the print needs for retail and business customers are also facilitated through the Company’s regional print production centers. The Company sold its CompuCom Division through a single disposal group on December 31, 2021, which is presented as discontinued operations for all periods presented. Refer to Note 12 for additional information. The retained global sourcing operations previously included in the former International Division and the operating results of the Varis Division, which is the Company’s new digital platform technology business, are not significant and have been presented as Other. The products and services offered by the Business Solutions Division and the Retail Division are similar. These two operating segments are the Company’s two reportable segments. The Business Solutions Division and the Retail 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 2021 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 or the Retail 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. As discussed in Note 1, in connection with the Company’s announcement to maintain all of its businesses under common ownership, the Company announced that it is re-aligning its operations into its consumer business named Office Depot, and three distinct B2B business and digital segments. As of the end of the second quarter, the Company continues to The following is a summary of sales and operating income (loss) by each of the Divisions and Other, reconciled to consolidated totals. Sales Second Quarter First Half (In millions) 2022 2021 2022 2021 Business Solutions Division $ 1,215 $ 1,146 $ 2,445 $ 2,274 Retail Division 811 914 1,754 1,953 Other 8 10 13 17 Total $ 2,034 $ 2,070 $ 4,212 $ 4,244 Division Operating Income (Loss) Second Quarter First Half (In millions) 2022 2021 2022 2021 Business Solutions Division $ 45 $ 31 $ 78 $ 48 Retail Division 46 44 136 145 Other (15 ) (6 ) (29 ) (9 ) Total $ 76 $ 69 $ 185 $ 184 A reconciliation of the measure of Division operating income to Consolidated income from continuing operations before income taxes is as follows: Second Quarter First Half (In millions) 2022 2021 2022 2021 Total Divisions operating income $ 76 $ 69 $ 185 $ 184 Add/(subtract): Asset impairments (3 ) (1 ) (5 ) (13 ) Merger, restructuring and other operating expenses, net (23 ) (11 ) (34 ) (23 ) Unallocated expenses (22 ) (27 ) (42 ) (49 ) Interest income 1 — 2 — Interest expense (4 ) (6 ) (9 ) (14 ) Other income, net 3 5 5 17 Income from continuing operations before income taxes $ 28 $ 29 $ 102 $ 102 The components of goodwill by segment are provided in the following table: Business Solutions Retail (In millions) Division Division Other Total Balance as of December 25, 2021 $ 318 $ 78 $ 68 $ 464 Balance as of June 25, 2022 $ 318 $ 78 $ 68 $ 464 Goodwill and indefinite-lived intangible assets are tested for impairment annually as of the first day of fiscal December or more frequently when events or changes in circumstances indicate that impairment may have occurred. The most recent annual impairment assessment was performed during the fourth quarter of 2021, using a quantitative assessment for the Contract and Varis reporting units, and qualitative assessments for the Direct and Retail reporting units. The quantitative assessment combined the income approach and the market approach valuation methodologies and concluded that the fair value of the Contract and Varis reporting units exceed their carrying amounts. The margin of passage for the Contract reporting unit was 16%. The Contract reporting unit is a component of the Business Solutions Division segment, and the Varis reporting unit is presented in Other. The CompuCom reporting unit is classified as discontinued operations; refer to Note 12 for further information. The Company is monitoring the performance of its Contract reporting unit, which had been negatively impacted by COVID-19, and has experienced partial recovery as the impacts of the pandemic on its business customers have begun to recede since 2021. The 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 this reporting unit as of June 25, 2022. The Company also did not identify indicators of impairment related to its other reporting units, which 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 goodwill impairment charges.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 25, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5. INCOME TAXES During 2022 and 2021, 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. The Company’s effective tax rates were 29% and 26% for the second quarter and first half of 2022, respectively, and 31% and 20% for the second quarter and first half of 2021, respectively. In the first half of 2022, the Company’s effective rate was primarily impacted by the recognition of a tax benefit associated with stock-based compensation awards year-to-date. This 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 the first half of 2021, the Company’s effective rate was primarily impacted by the recognition of tax benefits associated with stock-based compensation awards year-to-date and recognition of tax benefits due to an agreement reached with the IRS related to a prior tax position. 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 sale of CompuCom resulted in the Company recognizing a capital loss of approximately $210 million, tax effected. A portion of this capital loss, approximately $20 million, is available to be carried back in several jurisdictions. The tax benefit of these carry back claims was reflected in the discontinued operations income tax expense at December 25, 2021. The Company has determined that it is more likely than not that the benefit from the excess capital loss of $190 million will not be realized at this time. In recognition of this risk, the Company has provided a full valuation allowance during the first quarter of 2022 against the excess capital loss not carried back. 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	6 Months Ended
	Jun. 25, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 6. EARNINGS PER SHARE The following table represents the calculation of earnings (loss) per common share – basic and diluted: Second Quarter First Half (In millions, except per share amounts) 2022 2021 2022 2021 Basic Earnings (Loss) Per Share Numerator: Net income from continuing operations $ 20 $ 20 $ 75 $ 82 Income (loss) from discontinued operations, net of tax 7 (108 ) 7 (117 ) Net income (loss) $ 27 $ (88 ) $ 82 $ (35 ) Denominator: Weighted-average shares outstanding 49 54 49 54 Basic earnings (loss) per share: Continuing operations $ 0.40 $ 0.36 $ 1.54 $ 1.53 Discontinued operations 0.15 (1.98 ) 0.14 (2.18 ) Net basic earnings (loss) per share $ 0.55 $ (1.62 ) $ 1.68 $ (0.65 ) Diluted Earnings (Loss) Per Share Numerator: Net income from continuing operations $ 20 $ 20 $ 75 $ 82 Income (loss) from discontinued operations, net of tax 7 (108 ) 7 (117 ) Net income (loss) $ 27 $ (88 ) $ 82 $ (35 ) Denominator: Weighted-average shares outstanding 49 54 49 54 Effect of dilutive securities: Stock options and restricted stock 1 2 1 2 Diluted weighted-average shares outstanding 50 56 50 56 Diluted earnings (loss) per share: Continuing operations $ 0.39 $ 0.35 $ 1.49 $ 1.47 Discontinued operations 0.15 (1.93 ) 0.14 (2.10 ) Net diluted earnings (loss) per share $ 0.54 $ (1.58 ) $ 1.63 $ (0.63 ) Awards of stock options and nonvested shares representing additional shares of outstanding common stock were less than 1 million in both the second quarter and first half of 2022, and less than 1 million in both the second quarter and first half of 2021, but they were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive.

DEBT

DEBT	6 Months Ended
	Jun. 25, 2022
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. 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 June 25, 2022, the Company had no revolving loans outstanding, $57 million of outstanding FILO Term Loan Facility loans, $47 million of outstanding standby letters of credit, and $953 million of available credit under the Third Amended Credit Agreement. The Company was in compliance with all applicable covenants at June 25, 2022.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 25, 2022
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 25, 2021 $ (27 ) $ 21 $ (6 ) Other comprehensive loss activity before reclassifications (12 ) (2 ) (14 ) Reclassification of foreign currency translation adjustments realized upon disposal of business 6 — 6 Balance at June 25, 2022 $ (33 ) $ 19 $ (14 ) TREASURY STOCK The Board of Directors reviewed the Company’s existing capital allocation programs in connection with the sale of CompuCom, and on December 31, 2021, authorized an additional $200 million for share repurchases under the then existing stock repurchase program, for a total authorization of $650 million. This stock repurchase program expired on June 30, 2022, and in July 2022, the Board of Directors approved a new stock repurchase program of up to $600 million, available through June 30, 2024. On November 16, 2021, as part of the stock repurchase program expiring on June 30, 2022, the Company entered into an accelerated share repurchase agreement (“ASR”) to repurchase shares of the Company’s common stock in exchange for an up-front payment $150 million. The ASR repurchase period ran through May 25, 2022, and the Company received 0.7 million shares of its common stock as the final settlement of the ASR in the second quarter of 2022. The Company repurchased 3.6 million shares of its common stock in total at an average price per share of $41.46 under the ASR. The Company did not repurchase any additional shares of its common stock in the second quarter and first half of 2022. I n July 2022, as part of the new $600 million stock repurchase program, the Board of Directors approved a Dutch auction tender offer to repurchase up to $300 million of its common stock, based on demand. Subject to certain limitations and legal requirements, the Company could repurchase up to an additional 2% of the outstanding shares in the tender offer. Through this tender offer, the Company’s shareholders have the opportunity to tender some or all of their shares at a price within the range of $ 31.50 to $ 36.00 per share subject to the conditions set forth in the tender offer documents. The tender offer commenced on July 18 , 2022 August 12, 2022 At June 25, 2022, there were 17 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 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 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 second quarter and the first half of 2022. The Company’s quarterly cash dividend remains suspended. Refer to Note 7 for additional information about the Company’s compliance with covenants.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Jun. 25, 2022
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: Second Quarter First Half (In millions) 2022 2021 2022 2021 Service cost $ — $ — $ — $ — Interest cost 5 5 11 10 Expected return on plan assets (7 ) (8 ) (13 ) (15 ) Net periodic pension benefit $ (2 ) $ (3 ) $ (2 ) $ (5 ) The North American qualified pension plan is in a net asset position and included in Other assets in the Condensed Consolidated Balance Sheets at June 25, 2022 and December 25, 2021. The North American nonqualified pension plan is in a net liability position and included in Pension and postretirement obligations, net in the Condensed Consolidated Balance Sheets at June 25, 2022 and December 25, 2021. During the first half of 2022, $1 million of cash contributions were made to the North America pension plans. The Company expects to make additional cash contributions of approximately 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: Second Quarter First Half (In millions) 2022 2021 2022 2021 Service cost $ — $ — $ — $ — Interest cost 1 1 2 2 Expected return on plan assets (2 ) (2 ) (3 ) (3 ) Net periodic pension benefit $ (1 ) $ (1 ) $ (1 ) $ (1 ) The UK pension plan is in a net asset position and included in Other assets in the Condensed Consolidated Balance Sheets at June 25, 2022 and December 25, 2021. During the first half of 2022, cash contributions of $1 million were made to the UK pension plan. The Company is not required to make any additional cash contributions to the UK pension plan in the remainder of 2022. 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	6 Months Ended
	Jun. 25, 2022
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. The Company did not have derivative financial instruments during the second quarter and first half of 2022. 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 second quarter and first half of 2022, the Company recognized asset impairment charges of $3 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. 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 reduced retail location hours by one to 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 second quarter of 2022 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 the COVID-19 pandemic, 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 second quarter of 20 2 2 , 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, which were negatively impacted by the COVID-19 pandemic. The Company did not identify any impairment indicators for these long-lived assets as of June 25 2022, 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. June 25, December 25, 2022 2021 Carrying Fair Carrying Fair (In millions) Amount Value Amount Value Financial assets: Company-owned life insurance 137 137 137 137 Financial liabilities: Long-term debt: New Facilities loans under the Third Amended Credit Agreement, due 2025 57 57 100 100 Revenue bonds, due in varying amounts periodically through 2029 75 76 75 76 American & Foreign Power Company, Inc. 5% debentures, due 2030 15 14 15 16 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	6 Months Ended
	Jun. 25, 2022
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 June 25, 2022 , 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	6 Months Ended
	Jun. 25, 2022
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. CompuCom was presented as held for sale as of December 25, 2021, and the loss from classification to held for sale was measured at the lower of its carrying amount or estimated fair value less costs to sell and was included in the valuation allowance of current assets held for sale as of December 25, 2021. The estimated fair value of CompuCom was based on the terms of the SPA, and amounted to $ 190 . During the first half of 2022, the Company incurred further loss on disposal of $1 million in third-party professional fees related to the sale of CompuCom. In addition, during the second quarter and first half of 2022, the Company received $7 million of insurance proceeds for the malware incident that occurred in 2021 reflected in gain on disposal of discontinued operations. Merger and restructuring expenses incurred by the former CompuCom Division, that were previously presented as Corporate expenses, are included in the measurement and presentation of discontinued operations in all periods presented. The following table represents a reconciliation of the major components of discontinued operations, net of tax presented in the Condensed Consolidated Statements of Operations. Second Quarter First Half (In millions) 2022 2021 2022 2021 Major components of discontinued operations before income taxes: Sales $ — $ 216 $ — $ 408 Cost of goods and occupancy costs: — 176 — 329 Gross profit — 40 — 79 Selling, general and administrative expenses — 38 — 89 Asset impairments 114 — 114 Merger, restructuring and other operating expenses, net — (4 ) — (3 ) Operating loss — (108 ) — (121 ) Other income (expense): Other income, net — — — — Loss from major components of discontinued operations before income taxes — (108 ) — (121 ) Gain (loss) on disposal of discontinued operations 7 — 6 — Income (loss) from discontinued operations before income taxes 7 (108 ) 6 (121 ) Income tax benefit — — (1 ) (4 ) Discontinued operations, net of tax $ 7 $ (108 ) $ 7 $ (117 ) The following table represents the major classes of assets and liabilities of the disposal group classified as held for sale presented in the Condensed Consolidated Balance Sheets as of December 25, 2021. The Company completed the sale of CompuCom on December 31, 2021, and therefore no assets or liabilities are included in discontinued operations as of June 25, 2022. December 25, (In millions) 2021 Major classes of assets included in discontinued operations: Cash and cash equivalents $ 23 Receivables, net 221 Inventories 20 Prepaid expenses and other current assets 15 Property and equipment, net 25 Operating lease right-of-use assets 66 Other intangible assets, net 255 Other assets 14 Less: valuation allowance (170 ) Total assets of the disposal group classified as held for sale $ 469 Major classes of liabilities included in discontinued operations: Trade accounts payable $ 83 Accrued expenses and other current liabilities 86 Deferred income taxes and other long-term liabilities 75 Operating lease liabilities 46 Total liabilities of the disposal group classified as held for sale $ 290

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 25, 2022
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The ODP Corporation, including its consolidated subsidiaries (“ODP” or the “Company”), At June 25, 2022, the Company had two reportable segments (or “Divisions”): Business Solutions Division and Retail Division. The Company’s CompuCom Division was sold through a single disposal group on December 31, 2021. The Company has reclassified the financial results of the CompuCom Division to Discontinued operations, net of tax in the Condensed Consolidated Statements of Operations for all periods presented. The Company also reclassified the related assets and liabilities as assets and liabilities held for sale on the accompanying Condensed Consolidated Balance Sheet s a s of December 25, 2021, and presented cash flows from the Company’s discontinued operations in the Condensed Consolidated Statements of Cash Flows for all periods. The Condensed Consolidated Financial Statements as of June 25, 2022, and for the 13-week and 26-week periods ended June 25, 2022 (also referred to as the “second quarter of 2022” and the “first half of 2022,” respectively) and June 26, 2021 (also referred to as the “second quarter of 2021” and the “first half of 2021,” respectively) 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 2021 are included prospectively from the date of acquisition, thus affecting the comparability of the Company’s financial statements for the 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 2021 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year.
Maintaining All Operating Businesses under Common Ownership	MAINTAINING ALL OPERATING BUSINESSES UNDER COMMON OWNERSHIP 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 representing its B2B and consumer businesses, which was planned to be achieved through a spin-off of its consumer business. On January 14, 2022, the Company announced that its Board of Directors determined to delay the previously announced public company separation to evaluate a potential sale of the Company’s consumer business and that it had received a non-binding proposal from another third party, in addition to the previously received proposal from USR Parent, Inc., to acquire the Company’s consumer business. On June 21, 2022, the Company’s Board of Directors, with the assistance of its financial and legal advisors, completed its review of both proposals received by the Company to acquire its consumer business and unanimously determined it to be in the best interests of the Company and its shareholders not to divest the consumer business at this time. Further, due to current market conditions, the Company’s Board of Directors also determined not to resume the Company’s previously planned spin-off of its consumer business at this time and instead to maintain all of its businesses under common ownership. In connection with the Company’s announcement to maintain all of its businesses under common ownership, the Company announced that it is re-aligning its operations into its consumer business named Office Depot, and three distinct B2B business and digital segments which are ODP Business Solutions, Veyer and Varis. As of the end of the second quarter, the Company continues to
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 $7 million at June 25, 2022 are presented in Trade accounts payable and Accrued expenses and other current liabilities, and $1 million at December 25, 2021 are presented in Current liabilities held for sale. At June 25, 2022 and December 25, 2021, cash and cash equivalents held outside the United States amounted to $110 million and $108 million, respectively. At December 25, 2021, there was $17 million cash and cash equivalents held outside the United States included in Current assets held for sale.
Revenue Recognition	REVENUE As a result of the CompuCom Division’s presentation as discontinued operations, the Company’s level of service revenue is below 10% of the Company’s total revenue for all periods presented. Accordingly, revenues and cost of sales from services and products are not separately disclosed in the Company’s Condensed Consolidated Statements of Operations. The Company updated its major revenue categories disclosed herein according to this presentation, and prior period amounts have been reclassified to conform to the current period presentation. The following table provides information about disaggregated revenue from continuing operations by Division, and major revenue categories. Second Quarter of 2022 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 686 $ 286 $ 4 $ 976 Technology 278 321 2 601 Furniture and other 187 112 2 301 Copy and print 64 92 — 156 Total $ 1,215 $ 811 $ 8 $ 2,034 Second Quarter of 2021 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 599 $ 304 $ 3 $ 906 Technology 298 397 2 697 Furniture and other 189 126 5 320 Copy and print 60 87 — 147 Total $ 1,146 $ 914 $ 10 $ 2,070 First Half of 2022 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 1,383 $ 637 $ 6 $ 2,026 Technology 565 704 4 1,273 Furniture and other 371 238 3 612 Copy and print 126 175 — 301 Total $ 2,445 $ 1,754 $ 13 $ 4,212 First Half of 2021 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 1,179 $ 671 $ 5 $ 1,855 Technology 608 849 3 1,460 Furniture and other 367 270 9 646 Copy and print 120 163 — 283 Total $ 2,274 $ 1,953 $ 17 $ 4,244 Revenue includes the sale of: • Supplies such as paper, writing instruments, office supplies, cleaning and breakroom items, personal protective equipment, and product subscriptions; • Technology-related products such as toner and ink, printers, computers, tablets and accessories, electronic storage and sales of third-party software, as well as technology support services offerings provided in the Company’s retail stores, such as installation and repair; • Furniture and other products such as desks, seating, luggage, gift cards and warranties; and • Copy and print services, including managed print and fulfillment services. The Company sells its supplies, technology, furniture and other products through its Business Solutions and Retail 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. Substantially all of the Company’s copy and print and technology support services offerings are satisfied at a point in time and revenue is recognized as such. The majority of copy and print offerings, which includes printing, copying, and digital imaging, 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 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 have significant revenues generated from such contracts in the first halves of 2022 and 2021. 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 June 25, 2022 and December 25, 2021, the Company had $8 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	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: June 25, December 25, (In millions) 2022 2021 Trade receivables, net $ 413 $ 353 Short-term contract assets 11 16 Long-term contract assets 4 8 Short-term contract liabilities 33 52 Long-term contract liabilities — 2 In the first halves of 2022 and 2021, the Company did not There were no contract assets and liabilities that were recognized in the first half of 2022 as a result of business combinations. 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	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 June 25, 2022 and December 25, 2021, short-term contract assets and long-term contract assets in the table above represent capitalized acquisition costs. In the second quarter and first half of 2022, amortization expense was $5 million and $10 million, respectively. In the second quarter and first half of 2021, amortization expense was $6 million and $12 million, respectively. The Company had no asset impairment charges related to contract assets in the periods presented herein. T here is uncertainty regarding the continued impacts of COVID-19 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)	6 Months Ended
	Jun. 25, 2022
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. Second Quarter First Half (In millions) 2022 2021 2022 2021 Merger and transaction related expenses Transaction and integration $ — $ — — 1 Total Merger and transaction related expenses — — — 1 Restructuring expenses Severance (1 ) (2 ) (1 ) (1 ) Professional fees — — — — Facility closure, contract termination, and other expenses, net 1 — 2 9 Total Restructuring expenses, net — (2 ) 1 8 Other operating expenses Professional fees 23 13 33 14 Total Other operating expenses 23 13 33 14 Total Merger, restructuring and other operating expenses, net $ 23 $ 11 $ 34 $ 23
Facility Closure and Severance Costs	The activity in the merger, restructuring and other accruals in the first half of 2022 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 25, Charges (credits) Cash June 25, (In millions) 2021 Incurred Payments 2022 Termination benefits: Maximize B2B Restructuring Plan 19 (1 ) — 18 Lease and contract obligations, accruals for facilities closures and other costs: Maximize B2B Restructuring Plan 6 2 (3 ) 5 Comprehensive Business Review 1 — — 1 Previously planned separation of consumer business 2 32 (18 ) 16 Total $ 28 $ 33 $ (21 ) $ 40

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jun. 25, 2022
Revenue From Contract With Customer [Abstract]
Summary of Disaggregated Revenue from Continuing Operations by Division, Major Product and Service Categories	The following table provides information about disaggregated revenue from continuing operations by Division, and major revenue categories. Second Quarter of 2022 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 686 $ 286 $ 4 $ 976 Technology 278 321 2 601 Furniture and other 187 112 2 301 Copy and print 64 92 — 156 Total $ 1,215 $ 811 $ 8 $ 2,034 Second Quarter of 2021 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 599 $ 304 $ 3 $ 906 Technology 298 397 2 697 Furniture and other 189 126 5 320 Copy and print 60 87 — 147 Total $ 1,146 $ 914 $ 10 $ 2,070 First Half of 2022 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 1,383 $ 637 $ 6 $ 2,026 Technology 565 704 4 1,273 Furniture and other 371 238 3 612 Copy and print 126 175 — 301 Total $ 2,445 $ 1,754 $ 13 $ 4,212 First Half of 2021 (In millions) Business Solutions Division Retail Division Other Total Major revenue categories Supplies $ 1,179 $ 671 $ 5 $ 1,855 Technology 608 849 3 1,460 Furniture and other 367 270 9 646 Copy and print 120 163 — 283 Total $ 2,274 $ 1,953 $ 17 $ 4,244
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: June 25, December 25, (In millions) 2022 2021 Trade receivables, net $ 413 $ 353 Short-term contract assets 11 16 Long-term contract assets 4 8 Short-term contract liabilities 33 52 Long-term contract liabilities — 2

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 25, 2022
Segment Reporting [Abstract]
Summary of Significant Accounts and Balances by Each Divisions and Other	The following is a summary of sales and operating income (loss) by each of the Divisions and Other, reconciled to consolidated totals. Sales Second Quarter First Half (In millions) 2022 2021 2022 2021 Business Solutions Division $ 1,215 $ 1,146 $ 2,445 $ 2,274 Retail Division 811 914 1,754 1,953 Other 8 10 13 17 Total $ 2,034 $ 2,070 $ 4,212 $ 4,244 Division Operating Income (Loss) Second Quarter First Half (In millions) 2022 2021 2022 2021 Business Solutions Division $ 45 $ 31 $ 78 $ 48 Retail Division 46 44 136 145 Other (15 ) (6 ) (29 ) (9 ) Total $ 76 $ 69 $ 185 $ 184
Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) from Continuing Operations Before Income Taxes	A reconciliation of the measure of Division operating income to Consolidated income from continuing operations before income taxes is as follows: Second Quarter First Half (In millions) 2022 2021 2022 2021 Total Divisions operating income $ 76 $ 69 $ 185 $ 184 Add/(subtract): Asset impairments (3 ) (1 ) (5 ) (13 ) Merger, restructuring and other operating expenses, net (23 ) (11 ) (34 ) (23 ) Unallocated expenses (22 ) (27 ) (42 ) (49 ) Interest income 1 — 2 — Interest expense (4 ) (6 ) (9 ) (14 ) Other income, net 3 5 5 17 Income from continuing operations before income taxes $ 28 $ 29 $ 102 $ 102
Schedule of Goodwill by Segment	The components of goodwill by segment are provided in the following table: Business Solutions Retail (In millions) Division Division Other Total Balance as of December 25, 2021 $ 318 $ 78 $ 68 $ 464 Balance as of June 25, 2022 $ 318 $ 78 $ 68 $ 464

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 25, 2022
Earnings Per Share [Abstract]
Calculation of Earnings (Loss) Per Common Share	The following table represents the calculation of earnings (loss) per common share – basic and diluted: Second Quarter First Half (In millions, except per share amounts) 2022 2021 2022 2021 Basic Earnings (Loss) Per Share Numerator: Net income from continuing operations $ 20 $ 20 $ 75 $ 82 Income (loss) from discontinued operations, net of tax 7 (108 ) 7 (117 ) Net income (loss) $ 27 $ (88 ) $ 82 $ (35 ) Denominator: Weighted-average shares outstanding 49 54 49 54 Basic earnings (loss) per share: Continuing operations $ 0.40 $ 0.36 $ 1.54 $ 1.53 Discontinued operations 0.15 (1.98 ) 0.14 (2.18 ) Net basic earnings (loss) per share $ 0.55 $ (1.62 ) $ 1.68 $ (0.65 ) Diluted Earnings (Loss) Per Share Numerator: Net income from continuing operations $ 20 $ 20 $ 75 $ 82 Income (loss) from discontinued operations, net of tax 7 (108 ) 7 (117 ) Net income (loss) $ 27 $ (88 ) $ 82 $ (35 ) Denominator: Weighted-average shares outstanding 49 54 49 54 Effect of dilutive securities: Stock options and restricted stock 1 2 1 2 Diluted weighted-average shares outstanding 50 56 50 56 Diluted earnings (loss) per share: Continuing operations $ 0.39 $ 0.35 $ 1.49 $ 1.47 Discontinued operations 0.15 (1.93 ) 0.14 (2.10 ) Net diluted earnings (loss) per share $ 0.54 $ (1.58 ) $ 1.63 $ (0.63 )

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 25, 2022
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 25, 2021 $ (27 ) $ 21 $ (6 ) Other comprehensive loss activity before reclassifications (12 ) (2 ) (14 ) Reclassification of foreign currency translation adjustments realized upon disposal of business 6 — 6 Balance at June 25, 2022 $ (33 ) $ 19 $ (14 )

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	6 Months Ended
	Jun. 25, 2022
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: Second Quarter First Half (In millions) 2022 2021 2022 2021 Service cost $ — $ — $ — $ — Interest cost 5 5 11 10 Expected return on plan assets (7 ) (8 ) (13 ) (15 ) Net periodic pension benefit $ (2 ) $ (3 ) $ (2 ) $ (5 ) The components of net periodic pension benefit for the Company’s pension plan in the United Kingdom (“UK”) are as follows: Second Quarter First Half (In millions) 2022 2021 2022 2021 Service cost $ — $ — $ — $ — Interest cost 1 1 2 2 Expected return on plan assets (2 ) (2 ) (3 ) (3 ) Net periodic pension benefit $ (1 ) $ (1 ) $ (1 ) $ (1 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 25, 2022
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. June 25, December 25, 2022 2021 Carrying Fair Carrying Fair (In millions) Amount Value Amount Value Financial assets: Company-owned life insurance 137 137 137 137 Financial liabilities: Long-term debt: New Facilities loans under the Third Amended Credit Agreement, due 2025 57 57 100 100 Revenue bonds, due in varying amounts periodically through 2029 75 76 75 76 American & Foreign Power Company, Inc. 5% debentures, due 2030 15 14 15 16

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jun. 25, 2022
Discontinued Operations And Disposal Groups [Abstract]
Major Component of Discontinued Operations, Net of Tax and Major Classes of Assets and Liabilities of Disposal Group Classified as Held for Sale	The following table represents a reconciliation of the major components of discontinued operations, net of tax presented in the Condensed Consolidated Statements of Operations. Second Quarter First Half (In millions) 2022 2021 2022 2021 Major components of discontinued operations before income taxes: Sales $ — $ 216 $ — $ 408 Cost of goods and occupancy costs: — 176 — 329 Gross profit — 40 — 79 Selling, general and administrative expenses — 38 — 89 Asset impairments 114 — 114 Merger, restructuring and other operating expenses, net — (4 ) — (3 ) Operating loss — (108 ) — (121 ) Other income (expense): Other income, net — — — — Loss from major components of discontinued operations before income taxes — (108 ) — (121 ) Gain (loss) on disposal of discontinued operations 7 — 6 — Income (loss) from discontinued operations before income taxes 7 (108 ) 6 (121 ) Income tax benefit — — (1 ) (4 ) Discontinued operations, net of tax $ 7 $ (108 ) $ 7 $ (117 ) The following table represents the major classes of assets and liabilities of the disposal group classified as held for sale presented in the Condensed Consolidated Balance Sheets as of December 25, 2021. The Company completed the sale of CompuCom on December 31, 2021, and therefore no assets or liabilities are included in discontinued operations as of June 25, 2022. December 25, (In millions) 2021 Major classes of assets included in discontinued operations: Cash and cash equivalents $ 23 Receivables, net 221 Inventories 20 Prepaid expenses and other current assets 15 Property and equipment, net 25 Operating lease right-of-use assets 66 Other intangible assets, net 255 Other assets 14 Less: valuation allowance (170 ) Total assets of the disposal group classified as held for sale $ 469 Major classes of liabilities included in discontinued operations: Trade accounts payable $ 83 Accrued expenses and other current liabilities 86 Deferred income taxes and other long-term liabilities 75 Operating lease liabilities 46 Total liabilities of the disposal group classified as held for sale $ 290

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 25, 2022 USD ($) Store Segment	Dec. 25, 2021 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of retail stores | Store	1,020
Number of reportable segments | Segment	2
Accounts payable and accrued expenses and other current liabilities not yet presented for payment	$ 7
Current liabilities held for sale not yet presented for payment		$ 1
Cash and cash equivalents	417	514
Non-US
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 110	108
Non-US | Current Asset Held For Sales
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents		$ 17

Summary of Major Components of

Summary of Major Components of Merger and Restructuring Expenses, Net (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Merger and transaction related expenses
Transaction and integration				$ 1
Total Merger and transaction related expenses				1
Restructuring expenses
Severance	$ (1)	$ (2)	$ (1)	(1)
Facility closure, contract termination, and other expenses, net	1		2	9
Total Restructuring expenses, net		(2)	1	8
Other operating expenses
Professional fees	23	13	33	14
Total Other operating expenses	23	13	33	14
Total Merger, restructuring and other operating expenses, net	$ 23	$ 11	$ 34	$ 23

Merger, Restructuring and Oth_3

Merger, Restructuring and Other Activity - Additional Information (Detail)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended		26 Months Ended
	May 31, 2021 USD ($)	May 31, 2020 USD ($) Employee	Jun. 25, 2022 USD ($) Store	Jun. 26, 2021 USD ($)	Jun. 25, 2022 USD ($) Store	Jun. 26, 2021 USD ($)	Dec. 25, 2021 USD ($) Store	Dec. 26, 2020 Store Facility	Jun. 25, 2022 USD ($)
Merger Restructuring And Other Activity [Line Items]
Transaction and integration expenses			$ 0	$ 0	$ 0	$ 1,000,000
Costs to implement restructuring plan					33,000,000
Restructuring cash expenditure					21,000,000
USR Parent, Inc.
Merger Restructuring And Other Activity [Line Items]
Professional fees				2,000,000		3,000,000
Maximize B2B Restructuring Plan
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan			$ 1,000,000	(2,000,000)	$ 2,000,000	8,000,000			$ 96,000,000
Number of retail stores closed | Store			12		18		111	70
Number of distribution facilities closed | Facility								2
Gain on sale of retail stores assets				1,000,000		1,000,000
Restructuring cash expenditure				11,000,000		15,000,000
Maximize B2B Restructuring Plan | Cash Expenditures
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan									$ 56,000,000
Maximize B2B Restructuring Plan | Severance Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan		$ 49,000,000	$ 1,000,000	2,000,000	$ 1,000,000	1,000,000
Maximize B2B Restructuring Plan | Retail Store and Facility Closure Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan		34,000,000		$ 1,000,000		$ 10,000,000
Maximize B2B Restructuring Plan | Other Costs Including Contract Termination Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan		$ 28,000,000			2,000,000
Restructuring cash expenditure					3,000,000
Maximize B2B Restructuring Plan | Maximum
Merger Restructuring And Other Activity [Line Items]
Number of expected reduction in employee position | Employee		13,100
Costs to implement restructuring plan		$ 111,000,000
Maximize B2B Restructuring Plan | Maximum | Cash Expenditures
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan	$ 111,000,000	$ 111,000,000
Planned Separation of Consumer Business | Third-Party Professional Fees
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan			$ 23,000,000		$ 33,000,000		$ 32,000,000

Severance and Facility Closure

Severance and Facility Closure Costs (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended		26 Months Ended
	May 31, 2020	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022
Restructuring Cost and Reserve [Line Items]
Beginning Balance				$ 28
Charges (credits) Incurred				33
Cash Payments				(21)
Ending Balance		$ 40		40		$ 40
Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Charges (credits) Incurred		1	$ (2)	2	$ 8	96
Cash Payments			$ (11)		$ (15)
Termination Benefits | Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance				19
Charges (credits) Incurred				(1)
Ending Balance		18		18		18
Lease and contract obligations, accruals for facilities closures and other costs | Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance				6
Charges (credits) Incurred	$ 28			2
Cash Payments				(3)
Ending Balance		5		5		5
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		1
Lease and contract obligations, accruals for facilities closures and other costs | Previously Planned Separation of Consumer Business
Restructuring Cost and Reserve [Line Items]
Beginning Balance				2
Charges (credits) Incurred				32
Cash Payments				(18)
Ending Balance		$ 16		$ 16		$ 16

Summary of Disaggregated Revenu

Summary of Disaggregated Revenue from Continuing Operations by Division, major revenue Categories (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Disaggregation Of Revenue [Line Items]
Sales	$ 2,034	$ 2,070	$ 4,212	$ 4,244
Products, Supplies
Disaggregation Of Revenue [Line Items]
Sales	976	906	2,026	1,855
Products, Technology
Disaggregation Of Revenue [Line Items]
Sales	601	697	1,273	1,460
Products, Furniture and Other
Disaggregation Of Revenue [Line Items]
Sales	301	320	612	646
Services, Copy and Print
Disaggregation Of Revenue [Line Items]
Sales	156	147	301	283
Other | Business Solutions Division
Disaggregation Of Revenue [Line Items]
Sales	1,215	1,146	2,445	2,274
Other | Business Solutions Division | Products, Supplies
Disaggregation Of Revenue [Line Items]
Sales	686	599	1,383	1,179
Other | Business Solutions Division | Products, Technology
Disaggregation Of Revenue [Line Items]
Sales	278	298	565	608
Other | Business Solutions Division | Products, Furniture and Other
Disaggregation Of Revenue [Line Items]
Sales	187	189	371	367
Other | Business Solutions Division | Services, Copy and Print
Disaggregation Of Revenue [Line Items]
Sales	64	60	126	120
Other | Retail Division
Disaggregation Of Revenue [Line Items]
Sales	811	914	1,754	1,953
Other | Retail Division | Products, Supplies
Disaggregation Of Revenue [Line Items]
Sales	286	304	637	671
Other | Retail Division | Products, Technology
Disaggregation Of Revenue [Line Items]
Sales	321	397	704	849
Other | Retail Division | Products, Furniture and Other
Disaggregation Of Revenue [Line Items]
Sales	112	126	238	270
Other | Retail Division | Services, Copy and Print
Disaggregation Of Revenue [Line Items]
Sales	92	87	175	163
Other
Disaggregation Of Revenue [Line Items]
Sales	8	10	13	17
Other | Products, Supplies
Disaggregation Of Revenue [Line Items]
Sales	4	3	6	5
Other | Products, Technology
Disaggregation Of Revenue [Line Items]
Sales	2	2	4	3
Other | Products, Furniture and Other
Disaggregation Of Revenue [Line Items]
Sales	$ 2	$ 5	$ 3	$ 9

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021	Dec. 25, 2021
Revenue From Contract With Customer [Line Items]
Short-term contract liabilities	$ 33,000,000		$ 33,000,000		$ 52,000,000
Revenue recognition included in short-term contract liabilities			11,000,000	$ 17,000,000
Recognition of contract assets as a result of business combination			0	0
Recognition of contract liabilities as a result of business combination			0	2,000,000
Significant adjustment to revenue from performance obligations			0	0
Contract with customer, asset, reclassified to receivable			0	0
Short-term contract assets	11,000,000		11,000,000		16,000,000
Long-term contract assets	4,000,000		4,000,000		8,000,000
Long-term contract liabilities					2,000,000
Capitalized contract cost, amortization	5,000,000	$ 6,000,000	10,000,000	12,000,000
Impairment charges related to contract assets	3,000,000	1,000,000	5,000,000	13,000,000
Contract Assets
Revenue From Contract With Customer [Line Items]
Impairment charges related to contract assets	0	$ 0	0	$ 0
CompuCom Division
Revenue From Contract With Customer [Line Items]
Short-term contract liabilities					10,000,000
Short-term contract assets					1,000,000
Long-term contract assets					2,000,000
Long-term contract liabilities					2,000,000
Accrued Expenses and Other Current Liabilities
Revenue From Contract With Customer [Line Items]
Short-term contract liabilities	$ 8,000,000		$ 8,000,000		$ 12,000,000

Summary of Receivables, Contrac

Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Millions	Jun. 25, 2022	Dec. 25, 2021
Contract With Customer Asset And Liability [Abstract]
Trade receivables, net	$ 413	$ 353
Short-term contract assets	11	16
Long-term contract assets	4	8
Short-term contract liabilities	$ 33	52
Long-term contract liabilities		$ 2

Segment Information - Additiona

Segment Information - Additional Information (Detail) - Segment	6 Months Ended
	Jun. 25, 2022	Dec. 25, 2021
Segment Reporting Information [Line Items]
Number of reportable segments	2
Number of operating segments	2
Contract Reporting Unit
Segment Reporting Information [Line Items]
Carrying value in excess of fair value for reporting unit, percentage		16%

Reconciliation of Revenue from

Reconciliation of Revenue from Segments to Consolidated (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Segment Reporting Information [Line Items]
Sales	$ 2,034	$ 2,070	$ 4,212	$ 4,244
Other | Business Solutions Division
Segment Reporting Information [Line Items]
Sales	1,215	1,146	2,445	2,274
Other | Retail Division
Segment Reporting Information [Line Items]
Sales	811	914	1,754	1,953
Other
Segment Reporting Information [Line Items]
Sales	$ 8	$ 10	$ 13	$ 17

Division Operating Income (Loss

Division Operating Income (Loss) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Division Operating Income (Loss)	$ 76	$ 69	$ 185	$ 184
Other | Business Solutions Division
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Division Operating Income (Loss)	45	31	78	48
Other | Retail Division
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Division Operating Income (Loss)	46	44	136	145
Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Division Operating Income (Loss)	$ (15)	$ (6)	$ (29)	$ (9)

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		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Segment Reporting [Abstract]
Total Divisions operating income	$ 76	$ 69	$ 185	$ 184
Asset impairments	(3)	(1)	(5)	(13)
Merger, restructuring and other operating expenses, net	(23)	(11)	(34)	(23)
Unallocated expenses	(22)	(27)	(42)	(49)
Interest income	1		2
Interest expense	(4)	(6)	(9)	(14)
Other income, net	3	5	5	17
Income from continuing operations before income taxes	$ 28	$ 29	$ 102	$ 102

Schedule of Goodwill by Segment

Schedule of Goodwill by Segment (Detail) $ in Millions	Jun. 25, 2022 USD ($)
Goodwill [Line Items]
Balance as of December 25, 2021	$ 464
Balance as of June 25, 2022	464
Other | Business Solutions Division
Goodwill [Line Items]
Balance as of December 25, 2021	318
Balance as of June 25, 2022	318
Other | Retail Division
Goodwill [Line Items]
Balance as of December 25, 2021	78
Balance as of June 25, 2022	78
Other
Goodwill [Line Items]
Balance as of December 25, 2021	68
Balance as of June 25, 2022	$ 68

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Income Taxes [Line Items]
Effective income tax rate reconciliation, at federal statutory income tax rate, percent			21%	21%
Effective tax rate	29%	31%	26%	20%
Decrease related to current year tax positions			$ 1
CompuCom
Income Taxes [Line Items]
Tax effected capital loss recognized			210
Capital loss available to be carried back			20
Unrealized benefit from excess capital loss			$ 190

Calculation of Earnings (Loss)

Calculation of Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 25, 2022	Mar. 26, 2022	Jun. 26, 2021	Mar. 27, 2021	Jun. 25, 2022	Jun. 26, 2021
Basic Earnings (Loss) Per Share
Net income from continuing operations	$ 20		$ 20		$ 75	$ 82
Income (loss) from discontinued operations, net of tax	7		(108)		7	(117)
Net income (loss)	$ 27	$ 55	$ (88)	$ 53	$ 82	$ (35)
Weighted-average shares outstanding	49		54		49	54
Continuing operations	$ 0.40		$ 0.36		$ 1.54	$ 1.53
Discontinued operations	0.15		(1.98)		0.14	(2.18)
Net basic earnings per share	$ 0.55		$ (1.62)		$ 1.68	$ (0.65)
Diluted Earnings (Loss) Per Share
Net income from continuing operations	$ 20		$ 20		$ 75	$ 82
Income (loss) from discontinued operations, net of tax	7		(108)		7	(117)
Net income (loss)	$ 27	$ 55	$ (88)	$ 53	$ 82	$ (35)
Weighted-average shares outstanding	49		54		49	54
Stock options and restricted stock	1		2		1	2
Diluted weighted-average shares outstanding	50		56		50	56
Continuing operations	$ 0.39		$ 0.35		$ 1.49	$ 1.47
Discontinued operations	0.15		(1.93)		0.14	(2.10)
Net diluted earnings per share	$ 0.54		$ (1.58)		$ 1.63	$ (0.63)

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
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	1	1	1

Debt - Additional Information (

Debt - Additional Information (Detail) - Third Amended and Restated Credit Agreement - USD ($)		3 Months Ended
	Apr. 17, 2020	Mar. 26, 2022	Jun. 25, 2022
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			$ 953,000,000
Revolving loans outstanding			0
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
Retirement of term loan facility		$ 43,000,000
Borrowing under credit facility			57,000,000
Standby Letter of Credit
Debt Instrument [Line Items]
Borrowing under credit facility			$ 47,000,000
Minimum [Member] | Asset-based Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, increase (decrease), net		200,000,000
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	6 Months Ended
	Jun. 25, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 1,438
Balance	1,513
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(27)
Other comprehensive loss activity before reclassifications	(12)
Reclassification of foreign currency translation adjustments realized upon disposal of business	6
Balance	(33)
Change in Deferred Pension and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	21
Other comprehensive loss activity before reclassifications	(2)
Balance	19
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(6)
Other comprehensive loss activity before reclassifications	(14)
Reclassification of foreign currency translation adjustments realized upon disposal of business	6
Balance	$ (14)

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended	6 Months Ended
	Nov. 16, 2021	Jul. 31, 2022	Jun. 25, 2022	Jun. 25, 2022	Dec. 31, 2021	Dec. 25, 2021
Shareholders Equity [Line Items]
Stock repurchase program, additional authorized amount					$ 200,000,000
Stock repurchase program, authorized amount					$ 650,000,000
Treasury stock, shares			16,995,699	16,995,699		16,249,028
Dividends payable, temporarily suspended month and year				2020-05
Accelerated Share Repurchase Agreement
Shareholders Equity [Line Items]
Stock repurchase program, expiration date				Jun. 30, 2022
Up-front payment in exchange for common stock in repurchase shares	$ 150,000,000
Common stock shares received from share repurchase agreement			700,000
Stock repurchase program, shares purchased	3,600,000		0	0
Stock repurchase program, average price per share	$ 41.46
Dutch Auction Tender Offer
Shareholders Equity [Line Items]
Stock repurchase program, expiration date				Aug. 12, 2022
Stock repurchase program, commencement date				Jul. 18, 2022
Dutch Auction Tender Offer | Subsequent Event
Shareholders Equity [Line Items]
Stock repurchase program, expiration date		Jun. 30, 2024
Stock repurchase program, Percentage of additional outstanding shares		2%
Dutch Auction Tender Offer | Subsequent Event | Maximum
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount		$ 600,000,000
Stock repurchase program, shares purchased		300
Stock repurchase program, price per share		$ 36
Dutch Auction Tender Offer | Subsequent Event | Minimum [Member]
Shareholders Equity [Line Items]
Stock repurchase program, price per share		$ 31.50

Components of Net Periodic Pens

Components of Net Periodic Pension Benefit (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
North America
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	5	5	11	10
Expected return on plan assets	(7)	(8)	(13)	(15)
Net periodic pension benefit	(2)	(3)	(2)	(5)
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	1	1	2	2
Expected return on plan assets	(2)	(2)	(3)	(3)
Net periodic pension benefit	$ (1)	$ (1)	$ (1)	$ (1)

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 25, 2022 USD ($)
North America
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, current period	$ 1
Pension and other postretirement contributions, remainder of fiscal year	2
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, current period	1
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		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Derivative financial instruments	$ 0		$ 0
Asset impairment charges	$ 3	$ 1	$ 5	$ 13
Impairment of operating lease ROU assets		$ 1		$ 11
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	Jun. 25, 2022	Dec. 25, 2021
Carrying Amount
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Company-owned life insurance	$ 137	$ 137
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	57	100
Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Company-owned life insurance	137	137
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	57	100
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	$ 14	$ 16

Schedule of Fair Value of Ass_2

Schedule of Fair Value of Assets and Liabilities (Parenthetical) (Detail) - Long-Term Debt	6 Months Ended	12 Months Ended
	Jun. 25, 2022	Dec. 25, 2021
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) $ in Millions	6 Months Ended
	Jun. 25, 2022 USD ($)
Minimum [Member]
Commitments And Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 15
Maximum
Commitments And Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 25

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - Securities Purchase Agreement - CompuCom Division - USD ($) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 25, 2022	Dec. 25, 2021	Jun. 25, 2022	Dec. 25, 2021
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Cash purchase price		$ 125		$ 125
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				$ 125
Estimated fair value		190		190
Cash purchase price	$ 30	126	$ 30	126
Earnout payment				$ 9
Loss from classification to held for sale		$ 170	1
Gain on disposal of discontinued operations	$ 7		$ 7
Minimum [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Purchase period				3 months
Maximum
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Purchase period				12 months

Major Component of Discontinued

Major Component of Discontinued Operations, Net of Tax (Detail) - Discontinued Operations, Held-for-Sale - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 25, 2022	Jun. 26, 2021	Jun. 25, 2022	Jun. 26, 2021
Major components of discontinued operations before income taxes:
Sales		$ 216		$ 408
Cost of goods and occupancy costs:		176		329
Gross profit		40		79
Selling, general and administrative expenses		38		89
Asset impairments		114		114
Merger, restructuring and other operating expenses, net		(4)		(3)
Operating loss		(108)		(121)
Other income (expense):
Loss from major components of discontinued operations before income taxes		(108)		(121)
Gain (loss) on disposal of discontinued operations	$ 7		$ 6
Income (loss) from discontinued operations before income taxes	7	(108)	6	(121)
Income tax benefit			(1)	(4)
Discontinued operations, net of tax	$ 7	$ (108)	$ 7	$ (117)

Major Classes of Assets and Lia

Major Classes of Assets and Liabilities of Disposal Group Classified as Held for Sale (Detail) - CompuCom Division - Discontinued Operations, Held-for-Sale $ in Millions	Dec. 25, 2021 USD ($)
Major classes of assets included in discontinued operations:
Cash and cash equivalents	$ 23
Receivables, net	221
Inventories	20
Prepaid expenses and other current assets	15
Property and equipment, net	25
Operating lease right-of-use assets	66
Other intangible assets, net	255
Other assets	14
Less: valuation allowance	(170)
Total assets of the disposal group classified as held for sale	469
Major classes of liabilities included in discontinued operations:
Trade accounts payable	83
Accrued expenses and other current liabilities	86
Deferred income taxes and other long-term liabilities	75
Operating lease liabilities	46
Total liabilities of the disposal group classified as held for sale	$ 290