UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):
(Exact Name of Registrant as Specified in its Charter)
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
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| (Address of Principal Executive Offices) | (Zip Code) | |||
(Registrant’s Telephone Number, Including Area Code)
Former Name or Former Address, If Changed Since Last Report: N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on which Registered | ||
| (NASDAQ Global Select Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 7.01. | Regulation FD Disclosure. |
The ODP Corporation (the “Company”) is furnishing this Current Report on Form 8-K to recast certain previously reported results to conform with the change in the Company’s reportable segments effective at September 24, 2022. As previously disclosed, during the third quarter of 2022, the Company re-aligned its operations and determined that it had four business segments: ODP Business Solutions Division, Office Depot Division, Veyer Division, and Varis Division. For informational purposes, the Company is providing historical unaudited segment financial information recast to reflect the aforementioned changes for the fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020 and for each of the quarters of fiscal years 2022 and 2021. For additional information on management’s reporting changes and the realignment of the Company’s reporting segments, see Note 3 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
The information furnished pursuant to Item 7.01 in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit |
Description | |
| 99.1 | Supplemental Historical Unaudited Segment Financial Information of The ODP Corporation. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE ODP CORPORATION | ||||||
| Date: March 9, 2023 | /s/ Sarah E. Hlavinka | |||||
| Name: | Sarah E. Hlavinka | |||||
| Title: | EVP, Chief Legal Officer and Corporate Secretary | |||||
Exhibit 99.1
Supplemental Historical Segment Financial Information of The ODP Corporation
| Annual Results FY20 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 5,335 | $ | 3,578 | $ | 0 | $ | 6,344 | $ | (6,385 | ) | $ | 8,872 | |||||||||||
| Cost of goods sold and occupancy costs |
3,958 | 3,115 | 0 | 6,255 | (6,407 | ) | 6,921 | |||||||||||||||||
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| Gross profit |
1,377 | 463 | 0 | 89 | 22 | 1,951 | ||||||||||||||||||
| Selling, general and administrative expenses |
1,060 | 412 | 0 | 61 | 128 | 1,661 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 182 | 182 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 102 | 102 | ||||||||||||||||||
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| Operating income |
$ | 317 | $ | 51 | $ | 0 | $ | 28 | $ | (390 | ) | $ | 6 | |||||||||||
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| Q1 FY21 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 1,325 | $ | 855 | $ | 0 | $ | 1,516 | $ | (1,522 | ) | $ | 2,174 | |||||||||||
| Cost of goods sold and occupancy costs |
965 | 747 | 1 | 1,494 | (1,528 | ) | 1,679 | |||||||||||||||||
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| Gross profit |
360 | 108 | (1 | ) | 22 | 6 | 495 | |||||||||||||||||
| Selling, general and administrative expenses |
252 | 105 | 4 | 15 | 25 | 401 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 12 | 12 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 13 | 13 | ||||||||||||||||||
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| Operating income |
$ | 108 | $ | 3 | $ | (5 | ) | $ | 7 | $ | (44 | ) | $ | 69 | ||||||||||
| Q2 FY21 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 1,161 | $ | 914 | $ | 1 | $ | 1,473 | $ | (1,479 | ) | $ | 2,070 | |||||||||||
| Cost of goods sold and occupancy costs |
876 | 793 | 1 | 1,451 | (1,483 | ) | 1,638 | |||||||||||||||||
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| Gross profit |
285 | 121 | 0 | 22 | 4 | 432 | ||||||||||||||||||
| Selling, general and administrative expenses |
235 | 103 | 6 | 14 | 32 | 390 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 1 | 1 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 11 | 11 | ||||||||||||||||||
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| Operating income |
$ | 50 | $ | 18 | $ | (6 | ) | $ | 8 | $ | (40 | ) | $ | 30 | ||||||||||
| Q3 FY21 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 1,239 | $ | 947 | $ | 2 | $ | 1,528 | $ | (1,537 | ) | $ | 2,179 | |||||||||||
| Cost of goods sold and occupancy costs |
894 | 814 | 2 | 1,507 | (1,542 | ) | 1,675 | |||||||||||||||||
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| Gross profit |
345 | 133 | 0 | 21 | 5 | 504 | ||||||||||||||||||
| Selling, general and administrative expenses |
237 | 99 | 10 | 14 | 22 | 382 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 5 | 5 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 13 | 13 | ||||||||||||||||||
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| Operating income |
$ | 108 | $ | 34 | $ | (10 | ) | $ | 7 | $ | (35 | ) | $ | 104 | ||||||||||
| Q4 FY21 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 1,139 | $ | 910 | $ | 2 | $ | 1,474 | $ | (1,483 | ) | $ | 2,042 | |||||||||||
| Cost of goods sold and occupancy costs |
854 | 790 | 1 | 1,454 | (1,489 | ) | 1,610 | |||||||||||||||||
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| Gross profit |
285 | 120 | 1 | 20 | 6 | 432 | ||||||||||||||||||
| Selling, general and administrative expenses |
226 | 102 | 14 | 13 | 30 | 385 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 2 | 2 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 14 | 14 | ||||||||||||||||||
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| Operating income |
$ | 59 | $ | 18 | $ | (13 | ) | $ | 7 | $ | (40 | ) | $ | 31 | ||||||||||
| Annual Results FY21 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 4,864 | $ | 3,626 | $ | 5 | $ | 5,991 | $ | (6,021 | ) | $ | 8,465 | |||||||||||
| Cost of goods sold and occupancy costs |
3,589 | 3,145 | 4 | 5,906 | (6,042 | ) | 6,602 | |||||||||||||||||
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| Gross profit |
1,275 | 481 | 1 | 85 | 21 | 1,863 | ||||||||||||||||||
| Selling, general and administrative expenses |
950 | 409 | 35 | 55 | 109 | 1,558 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 20 | 20 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 51 | 51 | ||||||||||||||||||
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| Operating income |
$ | 325 | $ | 72 | $ | (34 | ) | $ | 30 | $ | (159 | ) | $ | 234 | ||||||||||
| Q1 FY22 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 1,201 | $ | 984 | $ | 2 | $ | 1,533 | $ | (1,542 | ) | $ | 2,178 | |||||||||||
| Cost of goods sold and occupancy costs |
871 | 858 | 1 | 1,511 | (1,547 | ) | 1,694 | |||||||||||||||||
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| Gross profit |
330 | 126 | 1 | 22 | 5 | 484 | ||||||||||||||||||
| Selling, general and administrative expenses |
234 | 107 | 16 | 14 | 25 | 396 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 2 | 2 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 10 | 10 | ||||||||||||||||||
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| Operating income |
$ | 96 | $ | 19 | $ | (15 | ) | $ | 8 | $ | (32 | ) | $ | 76 | ||||||||||
| Q2 FY22 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 1,039 | $ | 1,000 | $ | 1 | $ | 1,416 | $ | (1,422 | ) | $ | 2,034 | |||||||||||
| Cost of goods sold and occupancy costs |
777 | 858 | 1 | 1,394 | (1,427 | ) | 1,603 | |||||||||||||||||
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| Gross profit |
262 | 142 | 0 | 22 | 5 | 431 | ||||||||||||||||||
| Selling, general and administrative expenses |
213 | 106 | 16 | 14 | 28 | 377 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 3 | 3 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 23 | 23 | ||||||||||||||||||
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| Operating income |
$ | 49 | $ | 36 | $ | (16 | ) | $ | 8 | $ | (49 | ) | $ | 28 | ||||||||||
| Q3 FY22 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 1,143 | $ | 1,035 | $ | 2 | $ | 1,484 | $ | (1,492 | ) | $ | 2,172 | |||||||||||
| Cost of goods sold and occupancy costs |
841 | 879 | 1 | 1,462 | (1,497 | ) | 1,686 | |||||||||||||||||
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| Gross profit |
302 | 156 | 1 | 22 | 5 | 486 | ||||||||||||||||||
| Selling, general and administrative expenses |
219 | 108 | 18 | 13 | 33 | 391 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 3 | 3 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 8 | 8 | ||||||||||||||||||
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| Operating income |
$ | 83 | $ | 48 | $ | (17 | ) | $ | 9 | $ | (39 | ) | $ | 84 | ||||||||||
| Q4 FY22 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 1,104 | $ | 1,005 | $ | 2 | $ | 1,450 | $ | (1,455 | ) | $ | 2,106 | |||||||||||
| Cost of goods sold and occupancy costs |
831 | 857 | 1 | 1,430 | (1,459 | ) | 1,660 | |||||||||||||||||
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| Gross profit |
273 | 148 | 1 | 20 | 4 | 446 | ||||||||||||||||||
| Selling, general and administrative expenses |
216 | 111 | 19 | 16 | 26 | 388 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 6 | 6 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | (3 | ) | (3 | ) | ||||||||||||||||
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| Operating income |
$ | 57 | $ | 37 | $ | (18 | ) | $ | 4 | $ | (25 | ) | $ | 55 | ||||||||||
| Annual Results FY22 - Total US GAAP | Office Depot | ODP Business Solutions |
Varis | Veyer | Corporate, Shared Services and Eliminations |
Total | ||||||||||||||||||
| Sales |
$ | 4,487 | $ | 4,024 | $ | 7 | $ | 5,883 | $ | (5,910 | ) | $ | 8,491 | |||||||||||
| Cost of goods sold and occupancy costs |
3,318 | 3,452 | 4 | 5,799 | (5,930 | ) | 6,643 | |||||||||||||||||
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| Gross profit |
1,169 | 572 | 3 | 84 | 20 | 1,848 | ||||||||||||||||||
| Selling, general and administrative expenses |
884 | 432 | 69 | 56 | 111 | 1,552 | ||||||||||||||||||
| Asset impairments |
0 | 0 | 0 | 0 | 14 | 14 | ||||||||||||||||||
| Merger, restructuring and other operating expenses, net |
0 | 0 | 0 | 0 | 39 | 39 | ||||||||||||||||||
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| Operating income |
$ | 285 | $ | 140 | $ | (66 | ) | $ | 28 | $ | (144 | ) | $ | 243 | ||||||||||
Amounts may not foot due to rounding. The sum of the quarterly amounts may not equal the reported amounts for the year due to rounding.