0000950170-24-122079 | 10-Q | XBRL Viewer

EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 28, 2024

NOTE 6. EARNINGS (LOSS) PER SHARE

The following table represents the calculation of earnings per common share – basic and diluted:


	Third Quarter						Year-to-Date
(In millions, except per share amounts)	2024			2023			2024			2023
Basic Earnings (Loss) Per Share
Numerator:
Net income from continuing operations	$	68		$	82		$	95		$	208
Loss from discontinued operations, net of tax		(10	)		(12	)		(95	)		(32	)
Net income	$	58		$	70		$	—		$	176
Denominator:
Weighted-average shares outstanding		33			38			35			39
Basic earnings (loss) per share
Continuing operations	$	2.06		$	2.14		$	2.72		$	5.34
Discontinued operations		(0.31	)		(0.31	)		(2.71	)		(0.82	)
Net basic earnings per share	$	1.75		$	1.83		$	0.01		$	4.52
Diluted Earnings (Loss) Per Share
Numerator:
Net income from continuing operations	$	68		$	82		$	95		$	208
Loss from discontinued operations, net of tax		(10	)		(12	)		(95	)		(32	)
Net income	$	58		$	70		$	—		$	176
Denominator:
Weighted-average shares outstanding		33			38			35			39
Effect of dilutive securities:
Stock options and restricted stock		—			1			1			1
Diluted weighted-average shares outstanding		33			39			36			40
Diluted earnings (loss) per share
Continuing operations	$	2.04		$	2.09		$	2.65		$	5.18
Discontinued operations		(0.31	)		(0.30	)		(2.64	)		(0.80	)
Net diluted earnings per share	$	1.73		$	1.79		$	0.01		$	4.38

Awards of stock options and nonvested shares representing additional shares of outstanding common stock were 1 million and less than 1 million in the third quarter and year-to-date 2024, respectively, and less than 1 million in both the third quarter and year-to-date 2023, but they were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive.

MERGER AND RESTRUCTURING ACTIVITY (Tables)

9 Months Ended

Sep. 28, 2024

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 and restructuring expenses, net.


	Third Quarter					Year-to-Date
(In millions)	2024			2023		2024			2023
Merger and transaction related expenses
Transaction and integration	$	(1	)	$	—	$	(1	)	$	—
Total Merger and transaction related expenses		(1	)		—		(1	)		—
Restructuring expenses
Severance		(1	)		—		25			—
Professional fees		—			—		14			—
Facility closure, contract termination, and other expenses, net		4			1		9			2
Total Restructuring expenses, net		3			1		48			2
Total Merger and restructuring expenses, net	$	2		$	1	$	47		$	2

Facility Closure and Severance Costs

The activity in the merger and restructuring accruals year-to-date 2024 is presented in the table below. Certain merger and restructuring charges are excluded from the table because they are paid as incurred or non-cash, such as accelerated depreciation and gains and losses on asset dispositions.


	Balance as of								Balance as of
	December 30,		Charges (credits)			Cash			September 28,
(In millions)	2023		Incurred			Payments			2024
Termination benefits:
Project Core	$	—	$	25		$	(15	)	$	10
Maximize B2B Restructuring Plan		2		—			(1	)		1
Lease and contract obligations, accruals for facilities closures and other costs:
Project Core		—		14			(14	)		—
Maximize B2B Restructuring Plan		3		4			(5	)		2
Comprehensive Business Review		1		(1	)		—			—
Total	$	6	$	42		$	(35	)	$	13

Substantially all of these liabilities are

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 28, 2024	Jun. 29, 2024	Sep. 30, 2023	Apr. 01, 2023	Sep. 28, 2024	Sep. 30, 2023	Oct. 30, 2024	Dec. 30, 2023
CompuCom Division
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Aggregate sale proceeds				$ 5
Earnout payment	$ 9
Promissory note receivable obtained from disposition of discontinued operations					$ 59
Varis Division
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Maximum capital funded	4
Varis Division \| Subsequent Event \| Arising Ventures
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Percentage of minority interest							19.90%
Discontinued Operations, Held-for-Sale
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total receivable	2				2			$ 2
Income tax benefit on discontinued operations			$ (5)		(23)	$ (15)
Non-cash loss from classification to held for sale	$ (4)	$ (77)			$ (81)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income		$ 176
Loss from discontinued operations, net of tax	$ (95)	(32)
Net income (loss) from continuing operations	95	208
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	73	75
Amortization of debt discount and issuance costs	1	1
Charges for losses on receivables and inventories	17	16
Asset impairments	21	13
Gain on disposition of assets, net	(1)	(3)
Compensation expense for share-based payments	23	22
Deferred income taxes and deferred tax asset valuation allowances	13	39
Changes in working capital and other operating activities	(117)	(82)
Net cash provided by operating activities of continuing operations	125	289
Net cash used in operating activities of discontinued operations	(23)	(27)
Net cash provided by operating activities	102	262
Cash flows from investing activities:
Capital expenditures	(72)	(56)
Businesses acquired, net of cash acquired	(11)	(9)
Proceeds from disposition of assets	1	105
Settlement of company-owned life insurance policies	4	3
Net cash provided by (used in) investing activities of continuing operations	(78)	43
Net cash used in investing activities of discontinued operations	(7)	(15)
Net cash provided by (used in) investing activities	(85)	28
Cash flows from financing activities:
Payments on credit facilities and debt retirement	(450)	(204)
Borrowings under credit facilities	520	200
Net payments on other long and short-term borrowings	(8)	(12)
Share purchases for taxes, net of proceeds from employee share-based transactions	(15)	(26)
Repurchase of common stock for treasury	(254)	(264)
Other financing activities	(7)
Net cash used in financing activities of continuing operations	(214)	(306)
Net cash used in financing activities	(214)	(306)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1)
Net decrease in cash, cash equivalents and restricted cash	(198)	(16)
Cash, cash equivalents and restricted cash at beginning of period	395	404
Cash, cash equivalents and restricted cash at end of period	197	388
Supplemental information on non-cash investing and financing activities
Right-of-use assets obtained in exchange for new operating lease liabilities	202	275
Right-of-use assets obtained in exchange for new finance lease liabilities	9	4
Cash interest paid, net of amounts capitalized and non-recourse debt	13	5
Cash taxes paid, net	$ 14	$ 27

DISCONTINUED OPERATIONS

9 Months Ended

Sep. 28, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 12. DISCONTINUED OPERATIONS

On April 24, 2024, the Company’s Board of Directors approved management’s commitment to a plan to sell its Varis Division through a single disposal group. The disposition of the Varis Division represents a strategic shift that will have a major impact on the Company’s operations and financial results. Accordingly, the Company has presented the operating results and cash flows of its Varis Division as discontinued operations for all periods presented beginning in the second quarter of 2024. Subsequently, on October 18, 2024, the Company sold its Varis Division to an affiliate of Arising Ventures, a third-party, while retaining a minority interest of 19.9% after the sale. Under the terms of the related stock purchase agreement, the Company will fund up to $4 million of expenses that may be incurred by Varis following the transaction date until December 31, 2025, and has no further obligations to contribute capital to Varis. The terms of sale did not result in a materially different impact than previously estimated on the Company’s financial statements. The Company will deconsolidate its Varis Division effective October 18, 2024 by removing the associated assets and liabilities held for sale on its balance sheet. The Company will account for its retained minority interest of 19.9% in Varis as an equity method investment going forward.

The Company incurred an $81 million non-cash loss from classification to held for sale related to the Varis Division year-to-date 2024, which was measured at the lower of its carrying amount or estimated fair value less costs to sell and is included in the valuation allowance of the current assets held for sale. Of this amount, $77 million was incurred in the second quarter of 2024, the period in which the Varis Division was classified as held for sale, and the remaining $4 million was incurred in the third quarter of 2024. Also, restructuring expenses incurred by the Varis Division, which were previously presented as Corporate expenses, are included in the measurement and presentation of discontinued operations for all periods presented.

The following table represents a reconciliation of the major components of discontinued operations, net of tax, as presented in the Condensed Consolidated Statements of Operations.


	Third Quarter						Year-to-Date
(In millions)	2024			2023			2024			2023
Major components of discontinued operations before income taxes:
Sales	$	2		$	2		$	5		$	5
Cost of goods and occupancy costs:		—			1			—			2
Gross profit		2			1			5			3
Selling, general and administrative expenses		8			18			34			50
Merger and restructuring expenses, net		—			—			8			—
Operating loss		(6	)		(17	)		(37	)		(47	)

Loss from major components of discontinued operations before income taxes		(6	)		(17	)		(37	)		(47	)
Loss on disposal of discontinued operations		(4	)		—			(81	)		—
Loss from discontinued operations before income taxes		(10	)		(17	)		(118	)		(47	)
Income tax expense (benefit)		—			(5	)		(23	)		(15	)
Discontinued operations, net of tax	$	(10	)	$	(12	)	$	(95	)	$	(32	)

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 September 28, 2024 and December 30, 2023.


	September 28,			December 30,
(In millions)	2024			2023
Major classes of assets included in discontinued operations:
Cash and cash equivalents	$	11		$	10
Receivables, net		2			2
Deferred tax assets		11			—
Property and equipment, net		63			62
Less: valuation allowance		(81	)
Total assets of the disposal group classified as held for sale	$	6		$	74
Major classes of liabilities included in discontinued operations:
Trade accounts payable	$	1		$	—
Accrued expenses and other current liabilities		5			8
Deferred income taxes and other long-term liabilities		—			4
Total liabilities of the disposal group classified as held for sale	$	6		$	12

The Company had previously sold its CompuCom Division on December 31, 2021, through a transaction that was structured and accounted for as an equity sale. The Company did not have any financial results related to discontinued operations of the CompuCom Division on its Condensed Consolidated Statements of Operations for the periods presented. The Company received $5 million of cash from the purchaser in the first quarter of 2023 related to the settlement of the total cash purchase price, which is reflected in cash flows from investing activities of discontinued operations on the Condensed Consolidated Cash Flow Statement. In addition, the Company has a promissory note with a principal balance of $59 million from the purchaser of the CompuCom Division and a $9 million receivable related to an earn-out provision included in the securities purchase agreement. The promissory note and the earn-out are non-current receivables as of September 28, 2024.

Major Component of Discontinued Operations, Net of Tax (Detail) - Discontinued Operations, Held-for-Sale - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 28, 2024	Jun. 29, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Major components of discontinued operations before income taxes:
Sales	$ 2		$ 2	$ 5	$ 5
Cost of goods and occupancy costs:			1		2
Gross profit	2		1	5	3
Selling, general and administrative expenses	8		18	34	50
Merger and restructuring expenses, net				8
Operating loss	(6)		(17)	(37)	(47)
Loss from major components of discontinued operations before income taxes	(6)		(17)	(37)	(47)
Loss on disposal of discontinued operations	(4)	$ (77)		(81)
Loss from discontinued operations before income taxes	(10)		(17)	(118)	(47)
Income tax expense (benefit)			(5)	(23)	(15)
Discontinued operations, net of tax	$ (10)		$ (12)	$ (95)	$ (32)

Summary of Major Components of Merger and Restructuring Expenses, Net (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Merger and transaction related expenses
Transaction and integration	$ (1)		$ (1)
Total Merger and transaction related expenses	(1)		(1)
Restructuring expenses
Severance	(1)		25
Professional fees			14
Facility closure, contract termination, and other expenses, net	4	$ 1	9	$ 2
Total Restructuring expenses, net	3	1	48	2
Total Merger and restructuring expenses, net	$ 2	$ 1	$ 47	$ 2

EMPLOYEE BENEFIT PLANS

9 Months Ended

Sep. 28, 2024

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 9. EMPLOYEE BENEFIT PLANS

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.

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:


	Third Quarter						Year-to-Date
(In millions)	2024			2023			2024			2023
Interest cost	$	8		$	8		$	22		$	24
Expected return on plan assets		(8	)		(8	)		(22	)		(25	)
Amortization of gain		—			(2	)		(1	)		(5	)
Net periodic pension benefit	$	—		$	(2	)	$	(1	)	$	(6	)

The North America qualified pension plan is in a net asset position and included in Other assets in the Condensed Consolidated Balance Sheets at September 28, 2024 and December 30, 2023. The North America nonqualified pension plan is in a net liability position and included in Pension and postretirement obligations, net in the Condensed Consolidated Balance Sheets at September 28, 2024 and December 30, 2023. Year-to-date 2024, $2 million of cash contributions were made to the North America pension plans. The Company expects to make additional cash contributions of less than $1 million to the North America pension plans during the remainder of 2024.

PENSION PLAN – UNITED KINGDOM

The components of net periodic pension cost for the Company’s pension plan in the UK are as follows:


	Third Quarter						Year-to-Date
(In millions)	2024			2023			2024			2023
Interest cost	$	1		$	2		$	5		$	5
Expected return on plan assets		(1	)		(2	)		(4	)		(5	)
Amortization of loss		1			—			2			—
Net periodic pension cost	$	1		$	—		$	3		$	—

The Company has a frozen defined benefit pension plan in the UK. In July 2023, in accordance with applicable UK pension regulations, Trustees of the UK pension plan entered into an agreement with an insurer for the bulk annuity purchase of the plan, covering 100% of the plan’s members. This agreement, or buy-in, resulted in an exchange of plan assets for an annuity that covers the plan’s future projected benefit obligations. The Company anticipates the buyout of the plan and transfer of future benefit obligations of plan participants to be completed with existing plan funds in 2025. Accordingly, the Company does not expect the transaction to result in material cash inflows or outflows. At the completion of the buy-out, the Company will remove the assets and liabilities of the UK pension plan from its Condensed Consolidated Balance Sheet and a final non-cash plan settlement loss will be included in net periodic pension cost.

The UK pension plan is in a net asset position and included in Other assets in the Condensed Consolidated Balance Sheets at September 28, 2024. There was no net funded amount as of December 30, 2023. Year-to-date 2024, cash contributions of $1 million were made to the UK pension plan. The Company is no longer required to make cash contributions to the UK pension plan after reaching an agreement with UK pension trustees in August 2024.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Schedule of Goodwill by Segment (Detail) $ in Millions	9 Months Ended
Schedule of Goodwill by Segment (Detail) $ in Millions	Sep. 28, 2024 USD ($)
Goodwill [Line Items]
Balance as of December 30, 2023	$ 403
Balance as of September 28, 2024	412
Operating Segments
Goodwill [Line Items]
Balance as of December 30, 2023	403
Acquisitions	9
Balance as of September 28, 2024	412
ODP Business Solutions Division \| Operating Segments
Goodwill [Line Items]
Balance as of December 30, 2023	149
Acquisitions	9
Balance as of September 28, 2024	158
Office Depot Division \| Operating Segments
Goodwill [Line Items]
Balance as of December 30, 2023	219
Balance as of September 28, 2024	219
Veyer Division \| Operating Segments
Goodwill [Line Items]
Balance as of December 30, 2023	35
Balance as of September 28, 2024	$ 35

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

INCOME TAXES

9 Months Ended

Sep. 28, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 5. INCOME TAXES

The Company’s effective tax rates were 28% and 27% for the third quarter and year-to-date 2024, respectively, and 25% for both the third quarter and year-to-date 2023. For the third quarter of 2024, the Company’s effective tax rate was driven by the result of ongoing business activities rather than adjustments for discrete items. For year-to-date 2024, the Company’s effective tax rate was primarily impacted by the recognition of a tax benefit associated with stock-based compensation awards year-to-date and the settlement of an uncertain tax position for less than the reserve in the first quarter, partially offset by additional uncertain tax positions in the second quarter. 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 rates for the third quarter and year-to-date 2024 to differ from the statutory rate of 21%. For the third quarter and year-to-date 2023, the Company’s effective tax rates were primarily impacted by the recognition of a tax benefit associated with stock-based compensation awards. Changes in pretax income projections and the mix of income across jurisdictions could impact the effective tax rates in future quarters.

The Company continues to have a U.S. valuation allowance for certain U.S. federal credits and state tax attributes, which relates to deferred tax assets that require certain types of income or for income to be earned in certain jurisdictions in order to be realized. The Company will continue to assess the realizability of its deferred tax assets in the U.S. and remaining foreign jurisdictions in future periods. Changes in pretax income projections could impact this evaluation in future periods.

The Company files a U.S. federal income tax return and other income tax returns in various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state and local income tax examinations for years prior to 2021 and 2014, respectively. The acquired OfficeMax U.S. consolidated group is no longer subject to U.S. federal income tax examination, and with few exceptions, is no longer subject to U.S. state and local income tax examinations for years prior to 2013. Generally, the Company is subject to routine examination for years 2013 and forward in its international tax jurisdictions.

It is anticipated that $1 million of tax positions will be resolved within the next 12 months. Additionally, the Company anticipates that it is reasonably possible that new issues will be raised or resolved by tax authorities that may require changes to the balance of unrecognized tax benefits; however, an estimate of such changes cannot be reasonably made at this time.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Contingencies - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 28, 2024 USD ($)
Minimum
Commitments And Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 20
Maximum
Commitments And Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 25

DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Sep. 28, 2024

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, as presented in the Condensed Consolidated Statements of Operations.


	Third Quarter						Year-to-Date
(In millions)	2024			2023			2024			2023
Major components of discontinued operations before income taxes:
Sales	$	2		$	2		$	5		$	5
Cost of goods and occupancy costs:		—			1			—			2
Gross profit		2			1			5			3
Selling, general and administrative expenses		8			18			34			50
Merger and restructuring expenses, net		—			—			8			—
Operating loss		(6	)		(17	)		(37	)		(47	)

Loss from major components of discontinued operations before income taxes		(6	)		(17	)		(37	)		(47	)
Loss on disposal of discontinued operations		(4	)		—			(81	)		—
Loss from discontinued operations before income taxes		(10	)		(17	)		(118	)		(47	)
Income tax expense (benefit)		—			(5	)		(23	)		(15	)
Discontinued operations, net of tax	$	(10	)	$	(12	)	$	(95	)	$	(32	)


	September 28,			December 30,
(In millions)	2024			2023
Major classes of assets included in discontinued operations:
Cash and cash equivalents	$	11		$	10
Receivables, net		2			2
Deferred tax assets		11			—
Property and equipment, net		63			62
Less: valuation allowance		(81	)
Total assets of the disposal group classified as held for sale	$	6		$	74
Major classes of liabilities included in discontinued operations:
Trade accounts payable	$	1		$	—
Accrued expenses and other current liabilities		5			8
Deferred income taxes and other long-term liabilities		—			4
Total liabilities of the disposal group classified as held for sale	$	6		$	12

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 28, 2024

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 30, 2023	$	(31	)	$	(83	)	$	(114	)
Other comprehensive loss activity		4			(4	)		—
Balance at September 28, 2024	$	(27	)	$	(87	)	$	(114	)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 28, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Earnings (Loss) Per Share - Additional Information (Detail) - Nonvested Stock Options and Shares - shares shares in Millions	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Jul. 01, 2023	Sep. 30, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Shares excluded from computation of diluted earnings per share	1
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

Merger And Restructuring Activity - Additional Information (Detail)	1 Months Ended		3 Months Ended				6 Months Ended	9 Months Ended		24 Months Ended	48 Months Ended
	Apr. 30, 2024 Phase	Mar. 30, 2024 Phase	Sep. 28, 2024 USD ($) Store	Mar. 30, 2024 Segment	Sep. 30, 2023 USD ($)	Jul. 01, 2023 USD ($)	Jul. 01, 2023 USD ($)	Sep. 28, 2024 USD ($) Store	Sep. 30, 2023 USD ($)	Dec. 31, 2025 USD ($)	Dec. 30, 2023 Facility Store
Merger Restructuring And Other Activity [Line Items]
Transaction and integration expenses			$ 1,000,000			$ 0		$ 1,000,000
Reversal of earnout payment accrual related to prior acquisition			$ 2,000,000					2,000,000
Costs to implement restructuring plan								42,000,000
Restructuring cash expenditure								35,000,000
Professional fees								$ 14,000,000
Maximum
Merger Restructuring And Other Activity [Line Items]
Transaction and integration expenses							$ 1,000,000
Maximize B2B Restructuring Plan
Merger Restructuring And Other Activity [Line Items]
Number of retail stores closed \| Store											297
Number of additional retail stores closed \| Store			8					28
Number of distribution facilities closed \| Facility											2
Costs to implement restructuring plan			$ 1,000,000		$ 1,000,000			$ 4,000,000	$ 2,000,000
Restructuring cash expenditure			1,000,000		$ 3,000,000			6,000,000	$ 7,000,000
Maximize B2B Restructuring Plan \| Termination Benefits
Merger Restructuring And Other Activity [Line Items]
Restructuring cash expenditure								1,000,000
Maximize B2B Restructuring Plan \| Other Costs Including Contract Termination Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan								4,000,000
Restructuring cash expenditure								5,000,000
Project Core
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan			2,000,000					44,000,000
Restructuring cash expenditure			9,000,000					41,000,000
Number of operating segments \| Segment				4
Number of phases approved \| Phase	2	2
Project Core \| Forecast
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan										$ 57,000,000
Project Core \| Severance Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan			1,000,000					25,000,000
Project Core \| Facility
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan			$ 3,000,000					19,000,000
Project Core \| Termination Benefits
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan								25,000,000
Restructuring cash expenditure								15,000,000
Project Core \| Termination Benefits \| Forecast
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan										35,000,000
Project Core \| Other Costs Including Contract Termination Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan								14,000,000
Restructuring cash expenditure								14,000,000
Project Core \| Third-Party Professional Fees \| Forecast
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan										$ 22,000,000
Varis Division \| Project Core
Merger Restructuring And Other Activity [Line Items]
Restructuring cash expenditure								8,000,000
Varis Division \| Project Core \| Severance Costs
Merger Restructuring And Other Activity [Line Items]
Costs to implement restructuring plan								$ 8,000,000

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Income Taxes [Line Items]
Effective income tax rate reconciliation, at federal statutory income tax rate, percent	21.00%		21.00%
Effective tax rate	28.00%	25.00%	27.00%	25.00%
Unrecognized tax benefits, material tax positions			$ 1

EMPLOYEE BENEFIT PLANS (Tables)

9 Months Ended

Sep. 28, 2024

Retirement Benefits [Abstract]

Components of Net Periodic Pension Benefit Cost

The components of net periodic pension benefit for the Company’s North America pension plans are as follows:


	Third Quarter						Year-to-Date
(In millions)	2024			2023			2024			2023
Interest cost	$	8		$	8		$	22		$	24
Expected return on plan assets		(8	)		(8	)		(22	)		(25	)
Amortization of gain		—			(2	)		(1	)		(5	)
Net periodic pension benefit	$	—		$	(2	)	$	(1	)	$	(6	)

The components of net periodic pension cost for the Company’s pension plan in the UK are as follows:


	Third Quarter						Year-to-Date
(In millions)	2024			2023			2024			2023
Interest cost	$	1		$	2		$	5		$	5
Expected return on plan assets		(1	)		(2	)		(4	)		(5	)
Amortization of loss		1			—			2			—
Net periodic pension cost	$	1		$	—		$	3		$	—

MERGER AND RESTRUCTURING ACTIVITY

9 Months Ended

Sep. 28, 2024

Merger Restructuring And Other Activity [Abstract]

MERGER AND RESTRUCTURING ACTIVITY

NOTE 3. MERGER AND RESTRUCTURING ACTIVITY

The Company has taken actions to optimize its asset base and drive operational efficiencies. These actions include acquiring profitable businesses, closing underperforming retail stores and non-strategic distribution facilities, consolidating functional activities, eliminating redundant positions and disposing of non-strategic businesses and assets. The expenses and any income recognized directly associated with these actions are included in Merger and restructuring expenses, net on a separate line in the Condensed Consolidated Statements of Operations in order to identify these activities apart from the expenses incurred to sell to and service customers. These expenses are not included in the determination of Division operating income. The table below summarizes the major components of Merger and restructuring expenses, net.


	Third Quarter					Year-to-Date
(In millions)	2024			2023		2024			2023
Merger and transaction related expenses
Transaction and integration	$	(1	)	$	—	$	(1	)	$	—
Total Merger and transaction related expenses		(1	)		—		(1	)		—
Restructuring expenses
Severance		(1	)		—		25			—
Professional fees		—			—		14			—
Facility closure, contract termination, and other expenses, net		4			1		9			2
Total Restructuring expenses, net		3			1		48			2
Total Merger and restructuring expenses, net	$	2		$	1	$	47		$	2

MERGER AND TRANSACTION RELATED EXPENSES

Transaction and integration expenses include legal, accounting, and other third-party expenses incurred in connection with acquisitions. In the third quarter and year-to-date of 2024, the Company recognized transaction and integration expenses of $1 million related to the acquisition of the small independent regional office supply distribution business in Canada, and reversed a $2 million earnout payment accrual related to a prior acquisition. The Company did not have any transaction and integration expenses in the third quarter of 2023, and had less than $1 million of expenses year-to-date 2023.

RESTRUCTURING EXPENSES

Project Core

In March 2024, the Company’s Board of Directors approved a restructuring plan to redesign its company-wide low-cost business model approach and create further efficiencies in its business to lower costs (“Project Core”). This was driven by a need to significantly reduce costs due to macroeconomic and other factors impacting the Company’s sales, as well as insights gained following the first year of operations of realignment of its operating segments into four divisions. The scope of Project Core was approved in two phases, in March 2024 and April 2024, and includes cost improvement actions across the entire enterprise, including the Varis Division, which is now presented as discontinued operations. It aims to optimize the Company’s organizational structure to support future growth of the business. Project Core is expected to be completed in 2025, with the majority of actions expected to be taken by the end of 2024. Total restructuring costs related to Project Core are estimated to be up to $57 million, of which $35 million are estimated to be termination benefits, which mainly consists of severance, and $22 million are estimated to be costs to facilitate the program, which consists of third-party professional fees, and other incremental employee-related costs to implement actions. All costs of Project Core are expected to be cash expenditures.

In the third quarter of 2024, the Company incurred $2 million of restructuring costs associated with Project Core. Of these costs, $3 million were costs to facilitate the program, which was partially offset by $1 million in reversals of employee severance accruals due to changes in estimates. Year-to-date 2024, the Company incurred $44 million of restructuring costs associated with Project Core. Of

these costs, $25 million was severance and $19 million were costs to facilitate the program, which mainly consisted of third-party professional fees. In addition, in year-to-date 2024, the Company incurred $8 million of severance expenses related to the Varis Division, which are presented in discontinued operations and excluded from the table above.

The Company made cash payments of $9 million and $41 million associated with expenditures for Project Core in the third quarter and year-to-date 2024, respectively. Of these cash payments, $8 million were related to the Varis Division.

Maximize B2B Restructuring Plan

Since the inception of the Maximize B2B Restructuring Plan in May 2020, the Company has closed a total of 297 retail stores and two distribution facilities through 2023, with an additional eight and 28 retail stores closed in the third quarter and year-to-date 2024, respectively, under this plan. In the third quarter and year-to-date 2024, the Company incurred $1 million and $4 million of restructuring costs associated with the Maximize B2B Restructuring Plan, respectively, and made cash payments of $1 million and $6 million associated with these expenditures, respectively. In the third quarter and year-to-date 2023, the Company incurred $1 million and $2 million of restructuring costs, respectively, associated with the Maximize B2B Restructuring Plan, and made cash payments of $3 million and $7 million, respectively, associated with expenditures for the Maximize B2B Restructuring Plan.

MERGER AND RESTRUCTURING ACCRUALS


	Balance as of								Balance as of
	December 30,		Charges (credits)			Cash			September 28,
(In millions)	2023		Incurred			Payments			2024
Termination benefits:
Project Core	$	—	$	25		$	(15	)	$	10
Maximize B2B Restructuring Plan		2		—			(1	)		1
Lease and contract obligations, accruals for facilities closures and other costs:
Project Core		—		14			(14	)		—
Maximize B2B Restructuring Plan		3		4			(5	)		2
Comprehensive Business Review		1		(1	)		—			—
Total	$	6	$	42		$	(35	)	$	13

Substantially all of these liabilities are short-term and are included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets.

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 28, 2024 USD ($)	Sep. 28, 2024 USD ($) Division	Sep. 28, 2024 USD ($) Segment	Sep. 28, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 30, 2023 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments		3	3
Accounts payable and accrued expenses and other current liabilities not yet presented for payment	$ 11	$ 11	$ 11	$ 11		$ 13
Cash and cash equivalents	181	181	181	181		381
Restricted cash	5	$ 5	$ 5	5		$ 3
Legal matter monetization	$ 70			$ 70
Restricted Cash and Cash Equivalents, Current, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets, Current	Prepaid Expense and Other Assets, Current	Prepaid Expense and Other Assets, Current	Prepaid Expense and Other Assets, Current		Prepaid Expense and Other Assets, Current
Revenue recognition included in short-term contract liabilities				$ 12	$ 21
Varis Division
Summary Of Significant Accounting Policies [Line Items]
Cash	$ 11	$ 11	$ 11	11		$ 10
Non-US
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 58	$ 58	$ 58	58		$ 106
CANADA
Summary Of Significant Accounting Policies [Line Items]
Cash repatriated				25
Cash and cash equivalents repatriation cost				$ 1

Components of Net Periodic Pension Benefit Cost (Detail) - Pension Benefits - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
North America
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 8	$ 8	$ 22	$ 24
Expected return on plan assets	(8)	(8)	(22)	(25)
Amortization of gain (loss)	0	(2)	(1)	(5)
Net periodic pension benefit cost	0	(2)	(1)	(6)
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1	2	5	5
Expected return on plan assets	(1)	$ (2)	(4)	$ (5)
Amortization of gain (loss)	1		2
Net periodic pension benefit cost	$ 1		$ 3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 28, 2024

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The ODP Corporation (including its consolidated subsidiaries, “ODP” or the “Company”) is a leading provider of products, services and technology solutions through an integrated business-to-business (“B2B”) distribution platform and omni-channel presence, which includes supply chain and distribution operations, dedicated sales professionals, online presence, and a network of Office Depot and OfficeMax retail stores. Through its operating companies ODP Business Solutions, LLC; Office Depot, LLC; and Veyer, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day.

The Company has three reportable segments (or “Divisions”), which are ODP Business Solutions Division, Office Depot Division, and Veyer Division. Refer to Note 4 for additional information. On April 24, 2024, the Company’s Board of Directors provided their approval of management’s commitment to a plan to sell its Varis Division through a single disposal group. Accordingly, Varis Division is presented as discontinued operations beginning in the second quarter of 2024. The Company has reclassified the financial results of the Varis 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 Sheets as of September 28, 2024, and December 30, 2023. Cash flows from the Company’s discontinued operations are presented as such in the Condensed Consolidated Statements of Cash Flows for all periods. The Varis Division was subsequently sold on October 18, 2024. Refer to Note 12 for additional information.

The Condensed Consolidated Financial Statements as of September 28, 2024, and for the 13-week and 39-week periods ended September 28, 2024 (also referred to as the “third quarter of 2024” and “year-to-date 2024,” respectively), and September 30, 2023 (also referred to as the “third quarter of 2023” and “year-to-date 2023,” 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.

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 2023 Form 10-K. These interim results are not necessarily indicative of the results that should be expected for the full year.

Cash Management

CASH MANAGEMENT

The cash management process generally utilizes zero balance accounts which provide for the settlement of the related disbursement and cash concentration accounts on a daily basis. Amounts not yet presented for payment to zero balance disbursement accounts of $11 million and $13 million at September 28, 2024 and December 30, 2023, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities.

At September 28, 2024 and December 30, 2023, cash and cash equivalents held outside the United States amounted to $58 million and $106 million, respectively. Year-to-date 2024, the Company repatriated $25 million cash that was held in Canada, for a cost of $1 million.

The Company has certain ongoing pension obligations related to its frozen defined benefit pension plan in the United Kingdom (“UK”). Restricted cash consists primarily of cash in bank committed to fund UK pension obligations based on the agreements that govern the UK pension plan. Restricted cash is valued at cost, which approximates fair value. Restricted cash was $5 million and $3 million at September 28, 2024 and December 30, 2023, respectively, and is presented in Other assets.

In addition, $11 million and $10 million of cash at September 28, 2024 and December 30, 2023, respectively, relates to the Varis Division and is presented in Current assets held for sale.

Revenue and Contract Balances

REVENUE AND CONTRACT BALANCES

The Company generates substantially all of its revenue from contracts with customers for the sale of products and services. Refer to Note 4 for information on revenue by reportable segment and product category. Contract balances primarily consist of receivables, assets related to deferred contract acquisition costs, liabilities related to payments received in advance of performance under the contract, and liabilities related to unredeemed gift cards and loyalty programs. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:


	September 28,		December 30,
(In millions)	2024		2023
Trade receivables, net	$	373	$	367
Short-term contract assets		4		4
Long-term contract assets		3		1
Short-term contract liabilities		26		29

The Company recognized revenues of $12 million and $21 million year-to-date 2024 and 2023, respectively, which were included in the short-term contract liability balance at the beginning of each respective period.

Receivables, Net

RECEIVABLES, NET

In the third quarter of 2024, the Company recognized $70 million of income in its Condensed Consolidated Statement of Operations related to legal matter monetization where the Company is engaged in legal proceedings as a plaintiff. This income is included within Receivables, net in its Condensed Consolidated Balance Sheet as of September 28, 2024. The Company subsequently received the proceeds in October 2024.

New Accounting Standards

NEW ACCOUNTING STANDARDS

Standards that are not yet adopted:

Segment Reporting: In November 2023, the Financial Accounting Standards Board (the “FASB”) issued an accounting standard update that modified the disclosure requirements for all public entities that are required to report segment information. The update will change the reporting of segments by adding significant segment expenses, other segment items, title and position of chief operating decision maker and how they use the reported measures to make decisions. The update also requires all annual disclosures about reportable segment’s profit or loss and assets in interim periods. This accounting update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of this new standard and believes the adoption will result in additional disclosures, but will not have any other impact on its Consolidated Financial Statements.

Income Taxes: In December 2023, the FASB issued an accounting standard update that enhances the transparency and decision usefulness of income tax disclosures by adding effects from state and local taxes, foreign tax, changes in tax laws or rates in current period, cross-border tax laws, tax credits, valuation allowances, nontaxable and nondeductible items, and unrecognized tax benefits. This update will also require separate disclosure for any reconciling items. This accounting update is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is evaluating the impact of this new standard and believes the adoption will result in additional disclosures, but will not have any other impact on its Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 58	$ 70		$ 176
Other comprehensive income (loss), net of tax, where applicable:
Foreign currency translation adjustments	7	(7)	$ 4
Pension valuation adjustments	(4)	(43)	$ (4)	(44)
Total other comprehensive income (loss), net of tax, where applicable	3	(50)		(44)
Comprehensive income	$ 61	$ 20		$ 132

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Schedule of Fair Value of Assets and Liabilities (Detail) - USD ($) $ in Millions	Sep. 28, 2024	Dec. 30, 2023
Carrying Amount
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Company-owned life insurance	$ 131	$ 138
Carrying Amount \| Long-Term Debt \| New Facilities loans Under Third Amended Credit Agreement due 2025
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, fair value		53
Carrying Amount \| Long-Term Debt \| New Facility loan under the Fourth Amended Credit Agreement, due 2029
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, fair value	123
Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Company-owned life insurance	131	138
Fair Value \| Long-Term Debt \| New Facilities loans Under Third Amended Credit Agreement due 2025
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, fair value		53
Fair Value \| Long-Term Debt \| New Facility loan under the Fourth Amended Credit Agreement, due 2029
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, fair value	123
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	16	16
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	$ 15	$ 14

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 28, 2024	Dec. 30, 2023
Current assets:
Cash and cash equivalents	$ 181	$ 381
Receivables, net	550	485
Inventories	760	765
Prepaid expenses and other current assets	35	28
Current assets held for sale	12	80
Total current assets	1,538	1,739
Property and equipment, net	307	297
Operating lease right-of-use assets	980	983
Goodwill	412	403
Other intangible assets, net	49	45
Deferred income taxes	128	142
Other assets	277	278
Total assets	3,691	3,887
Current liabilities:
Trade accounts payable	773	755
Accrued expenses and other current liabilities	874	915
Income taxes payable	4	6
Short-term borrowings and current maturities of long-term debt	10	9
Current liabilities held for sale	6	12
Total current liabilities	1,667	1,697
Deferred income taxes and other long-term liabilities	118	120
Pension and postretirement obligations, net	13	15
Long-term debt, net of current maturities	236	165
Operating lease liabilities, net of current portion	801	789
Total liabilities	2,835	2,786
Contingencies (Note 11)
Stockholders' equity:
Common stock - authorized 80,000,000 shares of $0.01 par value; issued shares - 67,408,175 at September 28, 2024 and 66,700,292 at December 30, 2023; outstanding shares -31,204,701 at September 28, 2024 and 36,959,377 at December 30, 2023	1	1
Additional paid-in capital	2,763	2,752
Accumulated other comprehensive loss	(114)	(114)
Accumulated deficit	(312)	(312)
Treasury stock, at cost - 36,203,474 shares at September 28, 2024 and 29,740,915 shares at December 30, 2023	(1,482)	(1,226)
Total stockholders' equity	856	1,101
Total liabilities and stockholders’ equity	$ 3,691	$ 3,887

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended						9 Months Ended
	Oct. 30, 2024	Feb. 29, 2024	Sep. 28, 2024	Jun. 29, 2024	Mar. 30, 2024	Sep. 30, 2023	Jul. 01, 2023	Apr. 01, 2023	Sep. 28, 2024	Dec. 30, 2023
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount		$ 1,000,000,000
Stock repurchase program, expiration date		Mar. 31, 2027
Stock repurchase program, shares purchased			3,000,000						6,000,000
Stock repurchase program, shares purchased at cost			$ 102,000,000	$ 104,000,000	$ 50,000,000	$ 32,000,000	$ 31,000,000	$ 202,000,000	$ 257,000,000
Stock repurchase program, remaining authorized repurchase amount			$ 768,000,000						$ 768,000,000
Treasury stock, shares			36,203,474						36,203,474	29,740,915
Treasury Stock
Shareholders Equity [Line Items]
Stock repurchase program, shares purchased at cost			$ 102,000,000	$ 104,000,000	$ 50,000,000	$ 32,000,000	$ 31,000,000	$ 202,000,000
Treasury stock, shares			36,000,000						36,000,000
Maximum
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount		$ 1,000,000,000
Subsequent Event
Shareholders Equity [Line Items]
Stock repurchase program, shares purchased	1,000,000
Stock repurchase program, shares purchased at cost	$ 33,000,000

Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Millions	Sep. 28, 2024	Dec. 30, 2023
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]
Trade receivables, net	$ 373	$ 367
Short-term contract assets	4	4
Long-term contract assets	3	1
Short-term contract liabilities	$ 26	$ 29

Segment Information - Additional Information (Detail)	9 Months Ended
Segment Information - Additional Information (Detail)	Sep. 28, 2024 Location	Sep. 28, 2024 RegionalOfficeSupply	Sep. 28, 2024 Division	Sep. 28, 2024 Segment	Oct. 18, 2024
Segment Reporting Information [Line Items]
Number of reportable segments			3	3
Number of regional office supply \| RegionalOfficeSupply		20
Number of office depot and officemax retail locations \| Location	885
Varis Division \| Subsequent Event \| Arising Ventures
Segment Reporting Information [Line Items]
Percentage of minority interest					19.90%

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Asset impairment charges	$ 7	$ 3	$ 21	$ 13
Impairment of operating lease ROU assets	7	$ 2	19	$ 8
Asset held for sale	12		12
Land
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Asset held for sale	$ 6		6
Retail Stores \| Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Percentage used for analysis	7.00%
Varis Division
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Asset held for sale	$ 6		$ 6

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 28, 2024	Oct. 30, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 28, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Trading Symbol	ODP
Entity Registrant Name	The ODP Corporation
Entity Central Index Key	0000800240
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-28
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		30,118,194
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

CONTINGENCIES

9 Months Ended

Sep. 28, 2024

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

NOTE 11. 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 does not believe any of these OfficeMax retained proceedings are material to the Company’s financial position, results of

operations, or cash flows; however, the Company has made provision for losses with respect to the pending proceedings. Additionally, as of September 28, 2024, 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 all of the above-mentioned liabilities, the Company’s combined estimated range of reasonably possible losses was approximately $20 million to $25 million. The Company regularly monitors its estimated exposure to contingent liabilities. As additional information becomes known, these estimates may change.

DEBT

9 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

DEBT

NOTE 7. DEBT

On May 9, 2024, the Company entered into the Fourth Amended and Restated Credit Agreement (the “Fourth Amended Credit Agreement”), which provides for an $800 million asset-based revolving credit facility (the “New Facility”). The New Facility matures on May 9, 2029. The Fourth Amended Credit Agreement replaced the Company’s then existing amended and restated credit agreement, the Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”), that was due to mature in April 2025. The Company retired $53 million of outstanding asset-based first-in, last-out term loan facility (the “FILO Term Loan Facility”) loans under the Third Amended Credit Agreement prior to its amendment, resulting in no remaining FILO Term Loan Facility loans. The Company incurred approximately $5 million of new debt issuance costs for the Fourth Amended Credit Agreement, which will be recognized in interest expense through May 2029, the maturity date of the New Facility. The Company recognized less than $1 million of loss from modification of debt related to this transaction in the second quarter of 2024, which represented the write-off of certain unamortized debt issuance costs as of the closing date of the transaction.

As provided by the Fourth 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, and the cash value of company-owned life insurance policies. Year-to-date 2024, the Company elected to draw down $520 million from its credit facilities under the Third and Fourth Amended Credit Agreements for working capital management. Of this amount, $397 million was repaid year-to-date 2024, resulting in $123 million of revolving loans outstanding under the New Facility at September 28, 2024. At September 28, 2024, the Company had $41 million of outstanding standby letters of credit and $536 million of available credit under the Fourth Amended Credit Agreement. The Company was in compliance with all applicable covenants at September 28, 2024.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 28, 2024

Accounting Policies [Abstract]

Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers

The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:


	September 28,		December 30,
(In millions)	2024		2023
Trade receivables, net	$	373	$	367
Short-term contract assets		4		4
Long-term contract assets		3		1
Short-term contract liabilities		26		29

Major Classes of Assets and Liabilities of Disposal Group Classified as Held for Sale (Detail) - Discontinued Operations, Held-for-Sale - USD ($) $ in Millions	Sep. 28, 2024	Dec. 30, 2023
Major classes of assets included in discontinued operations:
Cash and cash equivalents	$ 11	$ 10
Receivables, net	2	2
Deferred tax assets	11
Property and equipment, net	63	62
Less: valuation allowance	(81)
Total assets of the disposal group classified as held for sale	6	74
Major classes of liabilities included in discontinued operations:
Trade accounts payable	1
Accrued expenses and other current liabilities	5	8
Deferred income taxes and other long-term liabilities		4
Total liabilities of the disposal group classified as held for sale	$ 6	$ 12

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock
Balance at Dec. 31, 2022	$ 1,287	$ 1	$ 2,742	$ (77)	$ (451)	$ (928)
Balance, Shares at Dec. 31, 2022		65,636,015
Net Income (Loss)	72				72
Other comprehensive income (loss)	2			2
Exercise and release of incentive stock (including income tax benefits and withholding)	(19)		(19)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		812,978
Amortization of long-term incentive stock grants	9		9
Repurchase of common stock	(202)					(202)
Other	(1)					(1)
Balance at Apr. 01, 2023	1,148	$ 1	2,732	(75)	(379)	(1,131)
Balance, Shares at Apr. 01, 2023		66,448,993
Balance at Dec. 31, 2022	1,287	$ 1	2,742	(77)	(451)	(928)
Balance, Shares at Dec. 31, 2022		65,636,015
Net Income (Loss)	176
Other comprehensive income (loss)	(44)
Balance at Sep. 30, 2023	1,155	$ 1	2,744	(121)	(275)	(1,194)
Balance, Shares at Sep. 30, 2023		66,695,068
Balance at Apr. 01, 2023	1,148	$ 1	2,732	(75)	(379)	(1,131)
Balance, Shares at Apr. 01, 2023		66,448,993
Net Income (Loss)	34				34
Other comprehensive income (loss)	4			4
Exercise and release of incentive stock (including income tax benefits and withholding)	(4)		(4)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		148,113
Amortization of long-term incentive stock grants	9		9
Repurchase of common stock	(31)					(31)
Other	1				1
Balance at Jul. 01, 2023	1,161	$ 1	2,737	(71)	(344)	(1,162)
Balance, Shares at Jul. 01, 2023		66,597,106
Net Income (Loss)	70				70
Other comprehensive income (loss)	(50)			(50)
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)		97,962
Amortization of long-term incentive stock grants	10		10
Repurchase of common stock	(32)					(32)
Other	(1)				(1)
Balance at Sep. 30, 2023	1,155	$ 1	2,744	(121)	(275)	(1,194)
Balance, Shares at Sep. 30, 2023		66,695,068
Balance at Dec. 30, 2023	1,101	$ 1	2,752	(114)	(312)	(1,226)
Balance, Shares at Dec. 30, 2023		66,700,292
Net Income (Loss)	15				15
Other comprehensive income (loss)	(3)			(3)
Exercise and release of incentive stock (including income tax benefits and withholding)	(6)		(6)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		258,397
Amortization of long-term incentive stock grants	11		11
Repurchase of common stock	(50)					(50)
Other	1		1
Balance at Mar. 30, 2024	1,069	$ 1	2,758	(117)	(297)	(1,276)
Balance, Shares at Mar. 30, 2024		66,958,689
Balance at Dec. 30, 2023	1,101	$ 1	2,752	(114)	(312)	(1,226)
Balance, Shares at Dec. 30, 2023		66,700,292
Repurchase of common stock	(257)
Balance at Sep. 28, 2024	856	$ 1	2,763	(114)	(312)	(1,482)
Balance, Shares at Sep. 28, 2024		67,408,175
Balance at Mar. 30, 2024	1,069	$ 1	2,758	(117)	(297)	(1,276)
Balance, Shares at Mar. 30, 2024		66,958,689
Net Income (Loss)	(73)				(73)
Exercise and release of incentive stock (including income tax benefits and withholding)	(9)		(9)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		423,391
Amortization of long-term incentive stock grants	11		11
Repurchase of common stock	(104)					(104)
Other	(1)		(1)
Balance at Jun. 29, 2024	893	$ 1	2,759	(117)	(370)	(1,380)
Balance, Shares at Jun. 29, 2024		67,382,080
Net Income (Loss)	58				58
Other comprehensive income (loss)	3			3
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		26,095
Amortization of long-term incentive stock grants	4		4
Repurchase of common stock	(102)					(102)
Balance at Sep. 28, 2024	$ 856	$ 1	$ 2,763	$ (114)	$ (312)	$ (1,482)
Balance, Shares at Sep. 28, 2024		67,408,175

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

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+ Details

Employee Benefit Plans - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 28, 2024	Dec. 30, 2023
North America
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, current period	$ 2,000,000
North America \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, remainder of fiscal year	1,000,000
United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement contributions, current period	$ 1,000,000
pension plan coverage percentage	100.00%
Funded amount		$ 0

Debt - Additional Information (Detail) - USD ($)		3 Months Ended	9 Months Ended
Debt - Additional Information (Detail) - USD ($)	May 09, 2024	Sep. 28, 2024	Sep. 28, 2024	Feb. 29, 2024
Debt Instrument [Line Items]
Stock repurchase program, authorized amount				$ 1,000,000,000
Maximum
Debt Instrument [Line Items]
Stock repurchase program, authorized amount				$ 1,000,000,000
Third Amended and Restated Credit Agreement \| Asset-based First-in, Last-out Term Loan Facility
Debt Instrument [Line Items]
Retirement of term loan facility			$ 53,000,000
Fourth Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maturity date of debt	May 09, 2029
Borrowing under credit facility		$ 536,000,000	536,000,000
Fourth Amended and Restated Credit Agreement \| Asset-based Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility	$ 800,000,000
Debt issuance costs		5,000,000	5,000,000
Loans outstanding		123,000,000	123,000,000
Fourth Amended and Restated Credit Agreement \| Standby Letter of Credit
Debt Instrument [Line Items]
Borrowing under credit facility		41,000,000	41,000,000
Fourth Amended and Restated Credit Agreement \| Maximum \| Asset-based First-in, Last-out Term Loan Facility
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ 1,000,000
Third and Fourth Amended Credit Agreements
Debt Instrument [Line Items]
Drawings under credit agreement			520,000,000
Repayments under credit agreement			$ 397,000,000

Severance and Facility Closure Costs (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Beginning Balance			$ 6
Charges (credits) Incurred			42
Cash Payments			(35)
Ending Balance	$ 13		13
Project Core
Restructuring Cost and Reserve [Line Items]
Charges (credits) Incurred	2		44
Cash Payments	(9)		(41)
Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Charges (credits) Incurred	1	$ 1	4	$ 2
Cash Payments	(1)	$ (3)	(6)	$ (7)
Termination Benefits \| Project Core
Restructuring Cost and Reserve [Line Items]
Charges (credits) Incurred			25
Cash Payments			(15)
Ending Balance	10		10
Termination Benefits \| Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance			2
Cash Payments			(1)
Ending Balance	1		1
Lease and contract obligations, accruals for facilities closures and other costs \| Project Core
Restructuring Cost and Reserve [Line Items]
Charges (credits) Incurred			14
Cash Payments			(14)
Lease and contract obligations, accruals for facilities closures and other costs \| Maximize B2B Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance			3
Charges (credits) Incurred			4
Cash Payments			(5)
Ending Balance	$ 2		2
Lease and contract obligations, accruals for facilities closures and other costs \| Comprehensive Business Review
Restructuring Cost and Reserve [Line Items]
Beginning Balance			1
Charges (credits) Incurred			$ (1)

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Acquisitions - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 28, 2024 USD ($) Business	Dec. 30, 2023 USD ($)
Business Acquisition [Line Items]
Goodwill	$ 412	$ 403
Canada
Business Acquisition [Line Items]
Number of business acquired \| Business	1
Customer Relationships
Business Acquisition [Line Items]
Customer relationship intangible	$ 7
Third Quarter 2024 Acquisition
Business Acquisition [Line Items]
Goodwill	9
Third Quarter 2024 Acquisition \| Minimum
Business Acquisition [Line Items]
Business combination consideration transferred	5
Third Quarter 2024 Acquisition \| Maximum
Business Acquisition [Line Items]
Business combination consideration transferred	$ 15

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Income Statement [Abstract]
Sales	$ 1,780	$ 2,007	$ 5,367	$ 6,020
Cost of goods and occupancy costs	1,416	1,535	4,252	4,653
Gross profit	364	472	1,115	1,367
Selling, general and administrative expenses	323	360	974	1,073
Asset impairments	7	3	21	13
Merger and restructuring expenses, net	2	1	47	2
Legal matter monetization	(70)		(70)
Operating income	102	108	143	279
Other income (expense):
Interest income	2	3	7	7
Interest expense	(6)	(5)	(16)	(15)
Other income, net	(3)	3	(4)	8
Income from continuing operations before income taxes	95	109	130	279
Income tax expense	27	27	35	71
Net income from continuing operations	68	82	95	208
Discontinued operations, net of tax	(10)	(12)	$ (95)	(32)
Net income	$ 58	$ 70		$ 176
Basic earnings (loss) per share
Continuing operations	$ 2.06	$ 2.14	$ 2.72	$ 5.34
Discontinued operations	(0.31)	(0.31)	(2.71)	(0.82)
Net basic earnings per share	1.75	1.83	0.01	4.52
Diluted earnings (loss) per share
Continuing operations	2.04	2.09	2.65	5.18
Discontinued operations	(0.31)	(0.3)	(2.64)	(0.8)
Net diluted earnings per share	$ 1.73	$ 1.79	$ 0.01	$ 4.38

Calculation of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 28, 2024	Jun. 29, 2024	Mar. 30, 2024	Sep. 30, 2023	Jul. 01, 2023	Apr. 01, 2023	Sep. 28, 2024	Sep. 30, 2023
Basic earnings (loss) per share
Net income from continuing operations	$ 68			$ 82			$ 95	$ 208
Loss from discontinued operations, net of tax	(10)			(12)			$ (95)	(32)
Net income	$ 58	$ (73)	$ 15	$ 70	$ 34	$ 72		$ 176
Weighted-average shares outstanding	33			38			35	39
Continuing operations	$ 2.06			$ 2.14			$ 2.72	$ 5.34
Discontinued operations	(0.31)			(0.31)			(2.71)	(0.82)
Net basic earnings per share	$ 1.75			$ 1.83			$ 0.01	$ 4.52
Diluted earnings (loss) per share
Net income from continuing operations	$ 68			$ 82			$ 95	$ 208
Loss from discontinued operations, net of tax	(10)			(12)			$ (95)	(32)
Net Income (Loss)	$ 58	$ (73)	$ 15	$ 70	$ 34	$ 72		$ 176
Weighted-average shares outstanding	33			38			35	39
Stock options and restricted stock				1			1	1
Diluted weighted-average shares outstanding	33			39			36	40
Continuing operations	$ 2.04			$ 2.09			$ 2.65	$ 5.18
Discontinued operations	(0.31)			(0.3)			(2.64)	(0.8)
Net diluted earnings per share	$ 1.73			$ 1.79			$ 0.01	$ 4.38

Reconciliation of Revenue from Segments to Consolidated (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Sales	$ 1,780	$ 2,007	$ 5,367	$ 6,020
Division operating income	60	132	201	357
External
Segment Reporting Information [Line Items]
Sales	1,780	2,007	5,367	6,020
Eliminations
Segment Reporting Information [Line Items]
Sales	(1,201)	(1,334)	(3,622)	(4,082)
Eliminations \| Internal
Segment Reporting Information [Line Items]
Sales	(1,201)	(1,334)	(3,622)	(4,082)
ODP Business Solutions Division \| Operating Segments
Segment Reporting Information [Line Items]
Sales	916	1,000	2,760	3,012
Division operating income	28	56	87	140
ODP Business Solutions Division \| Operating Segments \| External
Segment Reporting Information [Line Items]
Sales	914	996	2,753	3,001
ODP Business Solutions Division \| Operating Segments \| Internal
Segment Reporting Information [Line Items]
Sales	2	4	7	11
Office Depot Division \| Operating Segments
Segment Reporting Information [Line Items]
Sales	861	1,010	2,604	3,018
Division operating income	23	66	91	186
Office Depot Division \| Operating Segments \| External
Segment Reporting Information [Line Items]
Sales	852	1,000	2,580	2,991
Office Depot Division \| Operating Segments \| Internal
Segment Reporting Information [Line Items]
Sales	9	10	24	27
Veyer Division \| Operating Segments
Segment Reporting Information [Line Items]
Sales	1,204	1,331	3,625	4,072
Division operating income	9	10	23	31
Veyer Division \| Operating Segments \| External
Segment Reporting Information [Line Items]
Sales	14	11	34	28
Veyer Division \| Operating Segments \| Internal
Segment Reporting Information [Line Items]
Sales	$ 1,190	$ 1,320	$ 3,591	$ 4,044

Accumulated Other Comprehensive Loss Activity, Net of Tax (Detail) $ in Millions	9 Months Ended
	Sep. 28, 2024 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 1,101
Balance	856
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(31)
Other comprehensive income (loss) activity	(4)
Balance	(27)
Change in Deferred Pension and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(83)
Other comprehensive income (loss) activity	4
Balance	(87)
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(114)
Other comprehensive income (loss) activity	0
Balance	$ (114)

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

+ Details

SEGMENT INFORMATION

9 Months Ended

Sep. 28, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 4. SEGMENT INFORMATION

At September 28, 2024, the Company had three reportable segments:

ODP Business Solutions Division – The Company’s leading B2B distribution solutions provider serving small, medium, and enterprise level companies, including those in the public and education sectors. This segment operates in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The ODP Business Solutions Division sells nationally branded, as well as the Company’s private branded, office supply and adjacency products and services to customers, who are served through a dedicated sales force, catalogs, telesales, and electronically through the Company’s Internet websites. Adjacency products and services include cleaning, janitorial and breakroom supplies, office furniture, technology products, and copy and print services. This segment also includes our Federation entities, which are over 20 regional office supply distribution businesses acquired by the Company as part of its transformation to expand its reach and distribution network into geographic areas that were previously underserved, and which continue to operate under their own brand names. The acquisition of these businesses has allowed for an effective means to expand our distribution reach, target new business customers, and grow our offerings beyond traditional office supplies.

Office Depot Division – The Company’s leading provider of retail consumer and small business products and services distributed through a fully integrated omni-channel platform of 885 Office Depot and OfficeMax retail locations in the United States, Puerto Rico, and the U.S. Virgin Islands, and an eCommerce presence (www.officedepot.com). The Office Depot Division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture, as well as offering business services including copying, printing, digital imaging, mailing, shipping, and technology support services. In addition, the print needs for retail and business customers are facilitated through the Company’s regional print production centers.

Veyer Division – The Company’s supply chain, distribution, procurement, and global sourcing operation, which specializes in B2B and consumer business service delivery, with core competencies in distribution, fulfillment, transportation, global sourcing, and purchasing. The Veyer Division’s customers include our Office Depot Division and ODP Business Solutions Division, as well as third-party customers. The Veyer Division also includes the Company’s global sourcing operations in Asia.

On April 24, 2024, management obtained the Board of Directors’ approval and committed to a plan to sell its Varis Division through a single disposal group. The Varis Division is the Company’s tech-enabled B2B indirect procurement marketplace, which provides a seamless way for buyers and suppliers to transact through the platform’s consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. The Varis Division disposal group has met the accounting criteria to be classified as held for sale as of April 2024 and is presented as discontinued operations. Subsequently, on October 18, 2024, the Company sold its Varis Division to an affiliate of Arising Ventures, while retaining a minority interest of 19.9% after the sale. Refer to Note 12 for additional information.

Division operating income is determined based on the measure of performance reported internally to manage the business and for resource allocation. This measure charges to the respective Divisions those expenses considered directly or closely related to their operations and allocates support costs. Certain operating expenses and credits are not allocated to the Divisions, including asset impairments and merger and restructuring expenses, net, as well as expenses and credits retained at the Corporate level, including certain management costs and legacy pension and environmental matters. Other companies may charge more or less of these items to their segments and results may not be comparable to similarly titled measures used by other entities.

The following is a summary of sales and operating income by each of the Divisions, reconciled to consolidated totals:


(In millions)	ODP Business Solutions Division		Office Depot Division		Veyer Division		Eliminations			Total
Third Quarter of 2024
Sales (external)	$	914	$	852	$	14	$	—		$	1,780
Sales (internal)		2		9		1,190		(1,201	)		—
Total sales	$	916	$	861	$	1,204	$	(1,201	)	$	1,780
Division operating income	$	28	$	23	$	9	$	—		$	60

Year-to-Date 2024
Sales (external)	$	2,753	$	2,580	$	34	$	—		$	5,367
Sales (internal)		7		24		3,591		(3,622	)		—
Total sales	$	2,760	$	2,604	$	3,625	$	(3,622	)	$	5,367
Division operating income	$	87	$	91	$	23	$	—		$	201

Third Quarter of 2023
Sales (external)	$	996	$	1,000	$	11	$	—		$	2,007
Sales (internal)		4		10		1,320		(1,334	)		—
Total sales	$	1,000	$	1,010	$	1,331	$	(1,334	)	$	2,007
Division operating income	$	56	$	66	$	10	$	—		$	132

Year-to-Date 2023
Sales (external)	$	3,001	$	2,991	$	28	$	—		$	6,020
Sales (internal)		11		27		4,044		(4,082	)		—
Total sales	$	3,012	$	3,018	$	4,072	$	(4,082	)	$	6,020
Division operating income	$	140	$	186	$	31	$	—		$	357

The reconciliation of the measure of Division operating income to Consolidated income from continuing operations before income taxes is as follows, and includes charges and credits retained at the Corporate level:


	Third Quarter						Year-to-Date
(In millions)	2024			2023			2024			2023
Total Divisions operating income	$	60		$	132		$	201		$	357
Add/(subtract):
Asset impairments		(7	)		(3	)		(21	)		(13	)
Merger and restructuring expenses, net		(2	)		(1	)		(47	)		(2	)
Legal matter monetization		70			—			70			—
Unallocated expenses		(19	)		(20	)		(60	)		(63	)
Interest income		2			3			7			7
Interest expense		(6	)		(5	)		(16	)		(15	)
Other income, net		(3	)		3			(4	)		8
Income from continuing operations before income taxes	$	95		$	109		$	130		$	279

The following table provides information about disaggregated sales by major categories:


	Third Quarter				Year-to-Date
(In millions)	2024		2023		2024		2023
Major sales categories
Supplies	$	877	$	1,013	$	2,652	$	3,012
Technology		485		530		1,489		1,669
Furniture and other		263		296		752		846
Copy and print		155		168		474		493
Total	$	1,780	$	2,007	$	5,367	$	6,020

The components of goodwill by segment are as follows:


(In millions)	Balance as of December 30, 2023		Acquisitions		Balance as of September 28, 2024
ODP Business Solutions Division	$	149	$	9	$	158
Office Depot Division		219		—		219
Veyer Division		35		—		35
Total	$	403	$	9	$	412

Goodwill and indefinite-lived intangible assets are tested for impairment annually as of the first day of fiscal December or more frequently when events or changes in circumstances indicate that impairment may have occurred. Each reportable segment also represents a reporting unit. There were no events or changes in circumstances that indicate an impairment may have occurred during the third quarter of 2024. The Company will continue to evaluate the recoverability of goodwill at the reporting unit level. If the operating results of the Company’s reporting units deteriorate in the future, it may cause the fair value of one or more of the reporting units to fall below their carrying value, resulting in goodwill impairment charges.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Schedule of Fair Value of Assets and Liabilities (Parenthetical) (Detail) - Long-Term Debt	9 Months Ended	12 Months Ended
	Sep. 28, 2024	Dec. 30, 2023
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 \| New Facility loan under the Fourth Amended Credit Agreement, due 2029
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, due date	2029	2029
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	5.00%	5.00%
Fair Value \| New Facilities loans Under Third Amended Credit Agreement due 2025
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, due date	2025	2025
Fair Value \| New Facility loan under the Fourth Amended Credit Agreement, due 2029
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, due date	2029	2029
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	5.00%	5.00%

EARNINGS (LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 28, 2024

Earnings Per Share [Abstract]

Calculation of Earnings Per Common Share

The following table represents the calculation of earnings per common share – basic and diluted:


	Third Quarter						Year-to-Date
(In millions, except per share amounts)	2024			2023			2024			2023
Basic Earnings (Loss) Per Share
Numerator:
Net income from continuing operations	$	68		$	82		$	95		$	208
Loss from discontinued operations, net of tax		(10	)		(12	)		(95	)		(32	)
Net income	$	58		$	70		$	—		$	176
Denominator:
Weighted-average shares outstanding		33			38			35			39
Basic earnings (loss) per share
Continuing operations	$	2.06		$	2.14		$	2.72		$	5.34
Discontinued operations		(0.31	)		(0.31	)		(2.71	)		(0.82	)
Net basic earnings per share	$	1.75		$	1.83		$	0.01		$	4.52
Diluted Earnings (Loss) Per Share
Numerator:
Net income from continuing operations	$	68		$	82		$	95		$	208
Loss from discontinued operations, net of tax		(10	)		(12	)		(95	)		(32	)
Net income	$	58		$	70		$	—		$	176
Denominator:
Weighted-average shares outstanding		33			38			35			39
Effect of dilutive securities:
Stock options and restricted stock		—			1			1			1
Diluted weighted-average shares outstanding		33			39			36			40
Diluted earnings (loss) per share
Continuing operations	$	2.04		$	2.09		$	2.65		$	5.18
Discontinued operations		(0.31	)		(0.30	)		(2.64	)		(0.80	)
Net diluted earnings per share	$	1.73		$	1.79		$	0.01		$	4.38

Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Segment Reporting [Abstract]
Total Divisions operating income	$ 60	$ 132	$ 201	$ 357
Asset impairments	(7)	(3)	(21)	(13)
Merger and restructuring expenses, net	(2)	(1)	(47)	(2)
Legal matter monetization	70		70
Unallocated expenses	(19)	(20)	(60)	(63)
Interest income	2	3	7	7
Interest expense	(6)	(5)	(16)	(15)
Other income, net	(3)	3	(4)	8
Income from continuing operations before income taxes	$ 95	$ 109	$ 130	$ 279

Summary of Disaggregated Revenue from Major Sales Categories (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Sales	$ 1,780	$ 2,007	$ 5,367	$ 6,020
Products, Supplies
Segment Reporting Information [Line Items]
Sales	877	1,013	2,652	3,012
Products, Technology
Segment Reporting Information [Line Items]
Sales	485	530	1,489	1,669
Products, Furniture and Other
Segment Reporting Information [Line Items]
Sales	263	296	752	846
Services, Copy and Print
Segment Reporting Information [Line Items]
Sales	$ 155	$ 168	$ 474	$ 493

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Sep. 28, 2024	Jun. 29, 2024	Mar. 30, 2024	Sep. 30, 2023	Jul. 01, 2023	Apr. 01, 2023	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 58	$ (73)	$ 15	$ 70	$ 34	$ 72	$ 176

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 28, 2024

Segment Reporting [Abstract]

Summary of Sales and Operating Income by Each of the Divisions, Reconciled to Consolidated Totals

The following is a summary of sales and operating income by each of the Divisions, reconciled to consolidated totals:


(In millions)	ODP Business Solutions Division		Office Depot Division		Veyer Division		Eliminations			Total
Third Quarter of 2024
Sales (external)	$	914	$	852	$	14	$	—		$	1,780
Sales (internal)		2		9		1,190		(1,201	)		—
Total sales	$	916	$	861	$	1,204	$	(1,201	)	$	1,780
Division operating income	$	28	$	23	$	9	$	—		$	60

Year-to-Date 2024
Sales (external)	$	2,753	$	2,580	$	34	$	—		$	5,367
Sales (internal)		7		24		3,591		(3,622	)		—
Total sales	$	2,760	$	2,604	$	3,625	$	(3,622	)	$	5,367
Division operating income	$	87	$	91	$	23	$	—		$	201

Third Quarter of 2023
Sales (external)	$	996	$	1,000	$	11	$	—		$	2,007
Sales (internal)		4		10		1,320		(1,334	)		—
Total sales	$	1,000	$	1,010	$	1,331	$	(1,334	)	$	2,007
Division operating income	$	56	$	66	$	10	$	—		$	132

Year-to-Date 2023
Sales (external)	$	3,001	$	2,991	$	28	$	—		$	6,020
Sales (internal)		11		27		4,044		(4,082	)		—
Total sales	$	3,012	$	3,018	$	4,072	$	(4,082	)	$	6,020
Division operating income	$	140	$	186	$	31	$	—		$	357

Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) from Continuing Operations Before Income Taxes


	Third Quarter						Year-to-Date
(In millions)	2024			2023			2024			2023
Total Divisions operating income	$	60		$	132		$	201		$	357
Add/(subtract):
Asset impairments		(7	)		(3	)		(21	)		(13	)
Merger and restructuring expenses, net		(2	)		(1	)		(47	)		(2	)
Legal matter monetization		70			—			70			—
Unallocated expenses		(19	)		(20	)		(60	)		(63	)
Interest income		2			3			7			7
Interest expense		(6	)		(5	)		(16	)		(15	)
Other income, net		(3	)		3			(4	)		8
Income from continuing operations before income taxes	$	95		$	109		$	130		$	279

Summary of Disaggregated Revenue from Major Sales Categories

The following table provides information about disaggregated sales by major categories:


	Third Quarter				Year-to-Date
(In millions)	2024		2023		2024		2023
Major sales categories
Supplies	$	877	$	1,013	$	2,652	$	3,012
Technology		485		530		1,489		1,669
Furniture and other		263		296		752		846
Copy and print		155		168		474		493
Total	$	1,780	$	2,007	$	5,367	$	6,020

Schedule of Goodwill by Segment

The components of goodwill by segment are as follows:


(In millions)	Balance as of December 30, 2023		Acquisitions		Balance as of September 28, 2024
ODP Business Solutions Division	$	149	$	9	$	158
Office Depot Division		219		—		219
Veyer Division		35		—		35
Total	$	403	$	9	$	412

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 28, 2024

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 third quarter and year-to-date 2024.

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 third quarter and year-to-date 2024, the Company recognized asset impairment charges of $7 million and $21 million, respectively. Of these asset impairment charges, $7 million and $19 million in the third quarter and year-to-date 2024, respectively, related to the impairment of operating lease right-of-use (“ROU”) assets associated with the Company’s retail store locations, with the remainder relating to impairment of fixed assets in year-to-date 2024. In the third quarter and year-to-date 2023, the Company recognized asset impairment charges of $3 million and $13 million, respectively. Of these asset impairment charges, $2 million and $8 million in the third quarter and year-to-date 2023, respectively, was related to the impairment of operating lease ROU assets associated with the Company’s retail store locations, with the remainder relating to impairment of fixed assets and other assets. All impairment charges discussed in the sections below are presented in Asset impairments in the Condensed Consolidated Statements of Operations.

The Company regularly reviews retail store assets for impairment indicators at the individual store level, as this represents the lowest level of identifiable cash flows. When indicators of impairment are present, a recoverability analysis is performed which considers the estimated undiscounted cash flows over the retail store’s remaining life and uses input from retail operations and accounting and finance personnel. These inputs include management’s best estimates of retail store-level sales, gross margins, direct expenses, exercise of future lease renewal options when reasonably certain to be exercised, and resulting cash flows that can naturally include judgments about how current initiatives will impact future performance. The assumptions used within the recoverability analysis for the retail stores were updated to consider current quarter retail store operational results and formal plans for future retail store closures as part of the Company’s restructuring programs, including the probability of closure at the retail store level. While it is generally understood that closures will approximate the store’s lease termination date, it is possible that changes in store performance or other conditions could result in future changes in assumptions utilized. These assumptions reflected declining sales over the forecast period, and gross margin and operating cost assumptions that are consistent with recent actual results and consider plans for future initiatives.

If the undiscounted cash flows of a retail store cannot support the carrying amount of its assets, the assets are impaired if necessary and written down to estimated fair value. The fair value of retail store assets is determined using a discounted cash flow analysis which uses Level 2 unobservable inputs that are corroborated by market data such as independent real estate valuation opinions. Specifically, the analysis uses assumptions of potential rental rates for each retail store location which are based on market data for comparable locations. These estimated cash flows used in the third quarter of 2024 impairment calculation were discounted at a weighted average discount rate of 7%.

The Company will continue to evaluate initiatives to improve performance and lower operating costs. There are uncertainties regarding the impact of supply chain and macroeconomic conditions on the future results of operations, including the forecast period used in the recoverability analysis. To the extent that forward-looking sales and operating assumptions are not achieved and are subsequently reduced, additional impairment charges may result. However, at the end of the third quarter of 2024, the impairment recognized reflects the Company’s best estimate of future performance.

In addition to its retail store assets, the Company also regularly evaluates whether there are impairment indicators associated with its other long-lived assets. The Company did not identify any impairment indicators for these long-lived assets as of September 28, 2024, and as a result, there were no associated impairment charges.

The Company had assets held for sale of $12 million as of September 28, 2024, consisting of $6 million related to the Varis Division and $6 million in land.

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.


	September 28,				December 30,
	2024				2023
	Carrying		Fair		Carrying		Fair
(In millions)	Amount		Value		Amount		Value
Financial assets:
Company-owned life insurance	$	131	$	131	$	138	$	138
Financial liabilities:
Long-term debt:
New Facilities loans under the Third Amended Credit Agreement, due 2025		—		—		53		53
New Facility loan under the Fourth Amended Credit Agreement, due 2029		123		123		—		—
Revenue bonds, due in varying amounts periodically through 2029		75		76		75		76
American & Foreign Power Company, Inc. 5% debentures, due 2030		16		15		16		14

The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

•

Company-owned life insurance: In connection with the 2013 OfficeMax merger, the Company acquired company-owned life insurance policies on certain former employees. The fair value of the company-owned life insurance policies is derived using determinable net cash surrender value, which is the cash surrender value less any outstanding loans (Level 2 measure). Death benefits received on company-owned life insurance policies, which are tax-free at payout, typically exceed their cash surrender values.

•

Long-term debt: Long-term debt, for which there were no transactions on the measurement date, was valued based on quoted market prices near the measurement date when available or by discounting the future cash flows of each instrument using rates based on the most recently observable trade or using rates currently offered to the Company for similar debt instruments of comparable maturities (Level 2 measure). The carrying amount of the New Facility loan under the Fourth Amended Credit Agreement approximates fair value because the interest rates vary with market interest rates. Refer to Note 7 for additional information about the Fourth Amended Credit Agreement.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 28, 2024

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.


	September 28,				December 30,
	2024				2023
	Carrying		Fair		Carrying		Fair
(In millions)	Amount		Value		Amount		Value
Financial assets:
Company-owned life insurance	$	131	$	131	$	138	$	138
Financial liabilities:
Long-term debt:
New Facilities loans under the Third Amended Credit Agreement, due 2025		—		—		53		53
New Facility loan under the Fourth Amended Credit Agreement, due 2029		123		123		—		—
Revenue bonds, due in varying amounts periodically through 2029		75		76		75		76
American & Foreign Power Company, Inc. 5% debentures, due 2030		16		15		16		14

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 28, 2024	Dec. 30, 2023
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	67,408,175	66,700,292
Common stock, shares, outstanding	31,204,701	36,959,377
Treasury stock, shares	36,203,474	29,740,915

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 28, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

CASH MANAGEMENT

In addition, $11 million and $10 million of cash at September 28, 2024 and December 30, 2023, respectively, relates to the Varis Division and is presented in Current assets held for sale.

REVENUE AND CONTRACT BALANCES


	September 28,		December 30,
(In millions)	2024		2023
Trade receivables, net	$	373	$	367
Short-term contract assets		4		4
Long-term contract assets		3		1
Short-term contract liabilities		26		29

RECEIVABLES, NET

NEW ACCOUNTING STANDARDS

Standards that are not yet adopted:

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 28, 2024

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 30, 2023	$	(31	)	$	(83	)	$	(114	)
Other comprehensive loss activity		4			(4	)		—
Balance at September 28, 2024	$	(27	)	$	(87	)	$	(114	)

TREASURY STOCK

In February 2024, the Company’s Board of Directors approved a new stock repurchase program of up to $1 billion of its common stock, available through March 31, 2027, which replaced the then existing $1 billion stock repurchase program. The new authorization may be suspended or discontinued at any time. The exact timing of share repurchases will depend on market conditions and other factors, and will be funded through available cash balances.

The Company repurchased 3 million shares of its common stock at a cost of $102 million and 6 million shares at a cost of $257 million in the third quarter and year-to-date 2024, respectively. As of September 28, 2024, $768 million remains available for stock repurchases under the current stock repurchase program. Subsequent to the end of the third quarter of 2024 and through October 30, 2024, the Company repurchased 1 million shares of its common stock at a cost of $33 million.

At September 28, 2024, there were 36 million shares of common stock held in treasury. The Company’s Fourth Amended Credit Agreement permits restricted payments, such as common stock repurchases, but may be limited if the Company does not meet the required minimum liquidity or fixed charge coverage ratio requirements. Refer to Note 7 for additional information about the Company’s compliance with covenants.

DIVIDENDS ON COMMON STOCK

The Company did not declare any cash dividends in the third quarter and year-to-date 2024. The Company does not anticipate declaring cash dividends in the foreseeable future. The Company’s Fourth Amended Credit Agreement permits restricted payments, such as dividends, but may be limited if the Company does not meet the required minimum liquidity or fixed charge coverage ratio requirements. Refer to Note 7 for additional information about the Company’s compliance with covenants.

- Definition

The entire disclosure for equity.

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+ Details

ACQUISITIONS

9 Months Ended

Sep. 28, 2024

Business Combinations [Abstract]

ACQUISITIONS

NOTE 2. ACQUISITIONS

Since 2017, the Company has been acquiring profitable regional office supply distribution businesses to expand its reach and distribution network into geographic areas that were previously underserved. In the third quarter of 2024, the Company acquired a small independent regional office supply distribution business in Canada. There have not been any other acquisitions year-to-date 2024. The Company’s strategy has been to acquire businesses with purchase prices generally ranging from $5 million to $15 million, which were individually insignificant to the Company. The business acquired was consistent with acquisitions of similar sized businesses in the past and the acquisition was primarily funded with cash on hand.

The acquisition was treated as a purchase in accordance with ASC 805, Business Combinations (“ASC 805”) which requires allocation of the purchase price to the estimated fair values of assets and liabilities acquired in the transactions including goodwill and other intangible assets. The Company has performed a preliminary purchase price allocation of the aggregate purchase price to the estimated fair values of assets and liabilities acquired in the transaction. The preliminary purchase price allocation for the acquired office supply distribution business includes $7 million of customer relationship intangible assets and $9 million of goodwill. An immaterial amount of the aggregate purchase price was allocated to working capital accounts. These assets and liabilities are included

in the Condensed Consolidated Balance Sheet as of September 28, 2024. As additional information is obtained about these assets and liabilities within the measurement period (not to exceed one year from the date of acquisition), the Company will refine its estimates of fair value to allocate the purchase price. The operating results of the acquired business is combined with the Company’s operating results subsequent to the purchase date and are included in the ODP Business Solutions Division, as described in Note 4. Certain disclosures set forth under ASC 805, including supplemental pro forma financial information, are not disclosed because the operating results of the acquired business are not material to the Company.

Under the business combinations accounting guidance, merger and integration costs are not included as components of consideration transferred. Instead, they are accounted for as expenses in the period in which the costs are incurred. Transaction-related expenses are included in the Merger and restructuring expenses, net line in the Condensed Consolidated Statements of Operations. Refer to Note 3 for additional information about the merger and restructuring expenses incurred during the third quarter and year-to-date 2024.