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Other comprehensive income (loss), net of tax, where applicable:

$ 529

$ 8

$ (352)

Foreign currency translation adjustments

(11)

(78)

Reclassification of foreign currency translation adjustments realized upon disposal of business

^[1]

(164)

Change in deferred pension, net of $14 million, $1 million and $1 million of deferred income taxes in 2016, 2015 and 2014, respectively

(87)

Total other comprehensive (loss), net of tax, where applicable

(159)

(77)

(165)

Comprehensive income (loss)

370

(69)

(517)

Comprehensive income attributable to the noncontrolling interest

Comprehensive income (loss) attributable to Office Depot, Inc.

$ 370

$ (69)

$ (519)

[1]	Amounts in parentheses indicate an increase to earnings.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Change in deferred pension, deferred income taxes	$ 14	$ 1	$ 1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Current assets:
Cash and cash equivalents	$ 763	$ 860
Receivables, net	687	746
Inventories	1,279	1,406
Prepaid expenses and other current assets	102	92
Current assets of discontinued operations	142	956
Total current assets	2,973	4,060
Property and equipment, net	601	665
Goodwill	363	363
Other intangible assets, net	33	53
Timber notes receivable	885	905
Deferred income taxes	466	11
Other assets	219	203
Non-current assets of discontinued operations		182
Total assets	5,540	6,442
Current liabilities:
Trade accounts payable	893	987
Accrued expenses and other current liabilities	1,002	1,074
Income taxes payable	3	9
Short-term borrowings and current maturities of long-term debt	29	51
Current liabilities of discontinued operations	104	622
Total current liabilities	2,031	2,743
Deferred income taxes and other long-term liabilities	361	421
Pension and postretirement obligations, net	140	182
Long-term debt, net of current maturities	358	628
Non-recourse debt	798	819
Non-current liabilities of discontinued operations		46
Total liabilities	3,688	4,839
Commitments and contingencies
Stockholders' equity:
Common stock - authorized 800,000,000 shares of $.01 par value; issued shares - 557,892,568 at December 31, 2016 and 554,835,306 at December 26, 2015	6	6
Additional paid-in capital	2,618	2,607
Accumulated other comprehensive income (loss)	(129)	30
Accumulated deficit	(453)	(982)
Treasury stock, at cost - 42,802,998 shares at December 31, 2016 and 5,915,268 shares at December 26, 2015	(190)	(58)
Total stockholders' equity	1,852	1,603
Total liabilities and stockholders' equity	$ 5,540	$ 6,442

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 26, 2015
Common stock, authorized	800,000,000	800,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, issued shares	557,892,568	554,835,306
Treasury stock, shares	42,802,998	5,915,268

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions	Dec. 31, 2016 USD ($)	Dec. 26, 2015 USD ($)	Dec. 27, 2014 USD ($)
Cash flows from operating activities of continuing operations:
Net income (loss)	$ 529	$ 8	$ (352)
Loss from discontinued operations, net of tax	(150)	(84)	(59)
Net income from continuing operations	679	92	(293)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	181	253	277
Charges for losses on inventories and receivables	78	53	52
Asset impairments	15	13	56
Compensation expense for share-based payments	40	41	35
Loss on extinguishment of debt	15
Deferred income taxes and deferred tax asset valuation allowances	(231)	1	(1)
Loss (gain) on disposition of assets	(9)	(36)	7
Other	3	24	(2)
Changes in assets and liabilities:
Decrease (increase) in receivables	55	55	(20)
Decrease (increase) in inventories	56	(99)	(8)
Net decrease (increase) in prepaid expenses and other assets	(51)	20	23
Net decrease in trade accounts payable, accrued expenses and other current and other long-term liabilities	(339)	(279)	(33)
Total adjustments	(187)	46	386
Net cash provided by operating activities of continuing operations	492	138	93
Cash flows from investing activities of continuing operations:
Capital expenditures	(111)	(144)	(96)
Proceeds from sale of joint ventures, net			43
Proceeds from sale of available for sale securities			43
Acquisition, net of cash acquired		(9)
Proceeds from disposition of assets and other	27	95	5
Net cash used in investing activities of continuing operations	(84)	(58)	(5)
Cash flows from financing activities of continuing operations:
Net proceeds from employee share-based transactions		7	39
Debt retirement	(250)
Debt related fees	(6)	(1)
Cash used in extinguishment of debt	(12)
Cash dividends on common stock	(26)
Proceeds from issuance of borrowings			4
Net payments on long and short-term borrowings	(49)	(32)	(26)
Repurchase of common stock for treasury	(132)
Net cash (used in) provided by financing activities of continuing operations	(475)	(26)	17
Cash flows from discontinued operations:
Operating activities of discontinued operations	(122)	(12)	62
Investing activities of discontinued operations	(70)	(16)	(22)
Financing activities of discontinued operations	5	1	(2)
Net cash used in discontinued operations	(187)	(27)	38
Effect of exchange rate changes on cash and cash equivalents	(8)	(29)	(27)
Net increase (decrease) in cash and cash equivalents	(262)	(2)	116
Cash and cash equivalents at beginning of period	1,069	1,071	955
Cash and cash equivalents at end of period	807	1,069	1,071
Cash and cash equivalents of discontinued operations	(44)	(209)	(247)
Cash and cash equivalents at the end of period - continued operations	763	860	824
Supplemental information on operating, investing, and financing activities
Cash interest paid, net of amounts capitalized and Timber notes/Non-recourse debt	63	67	68
Cash taxes paid (refunded)	48		(20)
Non-cash asset additions under capital leases	$ 9	$ 25	$ 19

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Treasury Stock	Noncontrolling Interest
Balance at Dec. 28, 2013	$ 2,064	$ 5	$ 2,480	$ 272	$ (636)	$ (58)	$ 1
Balance, Shares at Dec. 28, 2013		536,629,760
Decrease in subsidiary shares from noncontrolling interests	(1)						(1)
Net income (loss)	(354)				(354)
Other comprehensive loss	(165)			(165)
Forfeiture of restricted stock (in shares)		(742,823)
Forfeiture of restricted stock	0	$ 0	0	0	0	0	0
Exercise and release of incentive stock (including income tax benefits and withholding)	39	$ 1	38
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		15,210,600
Amortization of long-term incentive stock grants	38		38
Balance at Dec. 27, 2014	1,621	$ 6	2,556	107	(990)	(58)
Balance, Shares at Dec. 27, 2014		551,097,537
Net income (loss)	8				8
Other comprehensive loss	(77)			(77)
Forfeiture of restricted stock (in shares)		(80,170)
Forfeiture of restricted stock	0	$ 0	0	0	0	0	0
Exercise and release of incentive stock (including income tax benefits and withholding)	7		7
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		3,817,939
Amortization of long-term incentive stock grants	$ 44		44
Repurchase of common stock (in shares)	0
Balance at Dec. 26, 2015	$ 1,603	$ 6	2,607	30	(982)	(58)
Balance, Shares at Dec. 26, 2015		554,835,306
Net income (loss)	529				529
Other comprehensive loss	(159)			(159)
Forfeiture of restricted stock (in shares)		(6,945)
Forfeiture of restricted stock	0	$ 0	0	0	0	0	$ 0
Exercise and release of incentive stock (including income tax benefits and withholding)	(2)		(2)
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)		3,064,207
Amortization of long-term incentive stock grants	39		39
Dividends paid on common stock	(26)		(26)
Repurchase of common stock	$ (132)					(132)
Repurchase of common stock (in shares)	37,000,000	37,000,000
Balance at Dec. 31, 2016	$ 1,852	$ 6	$ 2,618	$ (129)	$ (453)	$ (190)
Balance, Shares at Dec. 31, 2016		557,892,568

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business: Office Depot, Inc. including consolidated subsidiaries (“Office Depot” or the “Company”) is a global supplier of office products and services. The Company currently operates under several banners, including Office Depot^® and OfficeMax^®and utilizes several proprietary company and product brand names. The Company’s common stock is traded on the NASDAQ Global Select Market under the ticker symbol ODP. Office Depot currently operates through wholly-owned entities and participates in other ventures and alliances. The Company’s corporate headquarters is located in Boca Raton, FL, and the Company’s primary website is www.officedepot.com.

At December 31, 2016, the Company sold to customers through two reportable segments (or “Divisions”): North American Retail Division and North American Business Solutions Division. In September 2016, the Company’s Board of Directors committed to a plan to sell substantially all of the operations formerly presented as the International Division. Accordingly, that business is presented herein as discontinued operations. Refer to Note 3 for Discontinued Operations information and Note 16 for Segment information.

On February 4, 2015, Staples, Inc. (“Staples”) and the Company announced that the companies entered into a definitive merger agreement (the “Staples Merger Agreement”), under which Staples would acquire all of the outstanding shares of Office Depot and the Company would become a wholly owned subsidiary of Staples (the “Staples Acquisition”). On December 7, 2015, the United States Federal Trade Commission (the “FTC”) informed Office Depot and Staples that it intended to block the Staples Acquisition. On the same date, Office Depot and Staples announced their intent to contest the FTC’s decision to challenge the transaction. On May 10, 2016, the U.S. District Court for the District of Columbia granted the FTC’s request for a preliminary injunction against the proposed acquisition, and as a result, the companies terminated the Staples Merger Agreement on May 16, 2016.

On November 5, 2013, the Company merged with OfficeMax Incorporated (“OfficeMax”); refer to Note 2 for additional discussion of this merger (the “Merger”).

Basis of Presentation: The consolidated financial statements of Office Depot include the accounts of all wholly owned and financially controlled subsidiaries prior to disposition. Also, the variable interest entities formed by OfficeMax in prior periods solely related to the Timber Notes and Non-recourse debt are consolidated because the Company is the primary beneficiary. Refer to Note 6 for additional information. The Company owns 88% of a subsidiary that formerly owned assets in Cuba, which were confiscated by the Cuban government in the 1960’s. Due to various asset restrictions, the fair value of this investment is not determinable and no amounts are included in the consolidated financial statements. Intercompany transactions have been eliminated in consolidation.

Fiscal Year: Fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. Fiscal year 2016 includes 53 weeks and fiscal years 2015 and 2014 include 52 weeks. Certain international locations operate on a calendar year basis; however, the reporting difference had no impact in 2016 and is not considered significant in other periods.

Estimates and Assumptions: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Discontinued Operations: In September 2016, the Company’s Board of Directors committed to a plan to sell substantially all of the international operations formerly reported as the International Division. The planned dispositions represented a strategic shift that would have a major impact on the Company’s operations and financial results and accordingly, the Company presented these operations as discontinued operations beginning in the third quarter of 2016. The Company applied held for sale accounting criteria and measured the four individual disposal groups at the lower of carrying value of fair value less costs to sell. The OD European Business was sold on December 31, 2016. Refer to Note 3 for additional disclosures about the discontinued operations.

In December 2016, while preparing for and performing the controls associated the disposition of the Company’s business in Europe, we identified an error, which was not material to the overall presentation, in the loss on classification of certain foreign businesses as discontinued operations in the Company’s third quarter 2016 interim condensed consolidated financial statements. The unaudited Quarterly Financial Data included in Note 17 have been revised to reflect correction of the error described above. Refer to Note 17 for additional information.

Foreign Currency: International operations use local currencies as their functional currency. Assets and liabilities are translated into U.S. dollars using the exchange rate at the balance sheet date. Revenues, expenses and cash flows are translated at average monthly exchange rates, or rates on the date of the transaction for certain significant items. Translation adjustments resulting from this process are recorded in Stockholders’ equity as a component of Accumulated other comprehensive income (loss).

Foreign currency transaction gains or losses are recorded in the Consolidated Statements of Operations in Other income (expense), net or Cost of goods sold and occupancy costs, depending on the nature of the transaction. Foreign currency transaction gains or losses related to discontinued operations in Note 3 are presented in the loss on sale or held for sale classifications.

Cash and Cash Equivalents: All short-term highly liquid investments with original maturities of three months or less from the date of acquisition are classified as cash equivalents. Amounts in transit from banks for customer credit card and debit card transactions are classified as cash. The banks process the majority of these amounts within two business days.

Amounts not yet presented for payment to zero balance disbursement accounts of $58 million and $32 million at December 31, 2016 and December 26, 2015, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities.

At December 31, 2016, cash and cash equivalents from continuing operations but held outside the United States amounted to $84 million. Additionally, $44 million of cash held outside the United States was included in current assets of discontinued operations.

Receivables: Trade receivables, net, totaled $415 million and $471 million at December 31, 2016 and December 26, 2015, respectively. An allowance for doubtful accounts has been recorded to reduce receivables to an amount expected to be collectible from customers. The allowance at December 31, 2016 and December 26, 2015 was $12 million and $9 million, respectively.

Exposure to credit risk associated with trade receivables is limited by having a large customer base that extends across many different industries and geographic regions. However, receivables may be adversely affected by an economic slowdown in the United States or internationally. No single customer accounted for more than 10% of total sales or receivables in 2016, 2015 or 2014.

Other receivables were $272 million and $275 million at December 31, 2016 and December 26, 2015, respectively, of which $223 million and $233 million, respectively, are amounts due from vendors under purchase rebate, cooperative advertising and various other marketing programs.

Inventories: Inventories are stated at the lower of cost or market value and are reduced for inventory losses based on estimated obsolescence and the results of physical counts. In-bound freight is included as a cost of inventories. Also, cash discounts and certain vendor allowances that are related to inventory purchases are recorded as a product cost reduction. The weighted average method is used throughout the Company to determine the cost of inventory.

Income Taxes: Income taxes are accounted for under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities attributable to differences between the carrying amounts and the tax bases of assets and liabilities and operating loss and tax credit carryforwards. Valuation allowances are recorded to reduce deferred tax assets to the amount believed to be more likely than not to be realized. The Company recognizes tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination. Interest related to income tax exposures is included in interest expense in the Consolidated Statements of Operations. Refer to Note 8 for additional information on income taxes.

Property and Equipment: Property and equipment additions are recorded at cost. Depreciation and amortization is recognized over the estimated useful lives using the straight-line method. The useful lives of depreciable assets are estimated to be 15-30 years for buildings and 3-10 years for furniture, fixtures and equipment. Computer software is amortized over three years for common office applications, five years for larger business applications and seven years for certain enterprise-wide systems. Leasehold improvements are amortized over the shorter of the estimated economic lives of the improvements or the terms of the underlying leases, including renewal options considered reasonably assured. The Company capitalizes certain costs related to internal use software that is expected to benefit future periods. These costs are amortized using the straight-line method over the 3 to 7 year expected life of the software. Major repairs that extend the useful lives of assets are capitalized and amortized over the estimated use period. Routine maintenance costs are expensed as incurred.

Goodwill and Other Intangible Assets: Goodwill is the excess of the cost of an acquisition over the fair value assigned to net tangible and identifiable intangible assets of the business acquired. The Company reviews goodwill for impairment annually or sooner if indications of possible impairment are identified. The annual review period for the goodwill is as of the first day of the third quarter. The Company elected to conduct a quantitative assessment of possible goodwill impairment in 2016. In periods that a quantitative test is used, the Company estimates the reporting unit’s fair value using discounted cash flow analysis and market-based evaluations, when available. If the reporting unit’s carrying value exceeds its fair value, an impairment charge is recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. This method of estimating fair value requires assumptions, judgments and estimates of future performance. The Company may assess goodwill for possible impairment in future periods by considering qualitative factors, rather than this quantitative test.

Amortizable intangible assets are periodically reviewed to determine whether events and circumstances warrant a revision to the remaining period of amortization or asset impairment. Certain locations identified for closure resulted in impairment of favorable lease assets.

Impairment of Long-Lived Assets: Long-lived assets with identifiable cash flows are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Because of recent operating results, implementation of the post-Merger real estate strategy (the “Real Estate Strategy”) and the Comprehensive Business Review initiated in the third quarter of fiscal 2016, retail store long-lived assets have been regularly reviewed for impairment indicators. Impairment is assessed at the individual store level which is the lowest level of identifiable cash flows, and considers the estimated undiscounted cash flows over the asset’s remaining life. If estimated undiscounted cash flows are insufficient to recover the investment, an impairment loss is recognized equal to the difference between the estimated fair value of the asset and its carrying value, net of salvage, and any costs of disposition. The fair value estimate is generally the discounted amount of estimated store-specific cash flows.

Facility Closure and Severance Costs: Store performance is regularly reviewed against expectations and stores not meeting performance requirements may be closed. During 2014, the Company implemented the Real Estate Strategy which among other initiatives included closing 400 retail store locations; the store closures were completed in 2016. During the third quarter of 2016, the Company initiated the Comprehensive Business Review and announced the closure of approximately 300 retail stores locations to be completed by 2018. Refer to Note 2 for additional information.

Costs associated with facility closures, principally accrued lease costs, are recognized when the facility is no longer used in an operating capacity or when a liability has been incurred. Store assets are also reviewed for possible impairment, or reduction of estimated useful lives.

Accruals for facility closure costs are based on the future commitments under contracts, adjusted for assumed sublease benefits and discounted at the Company’s credit-adjusted risk-free rate at the time of closing. Accretion expense is recognized over the life of the contractual payments. Additionally, the Company recognizes charges to terminate existing commitments and charges or credits to adjust remaining closed facility accruals to reflect current expectations. Accretion expense and adjustments to facility closure costs are presented in the Consolidated Statements of Operations in Selling, general and administrative expenses if the related facility was closed as part of ongoing operations or in Merger, restructuring and other operating (income) expenses, net, if the related facility was closed as part of the Merger, Real Estate Strategy or Comprehensive Business Review. Refer to Note 2 for additional information on accrued expenses relating to closed facilities. The short-term and long-term components of this liability are included in Accrued expenses and other current liabilities and Deferred income taxes and other long-term liabilities, respectively, on the Consolidated Balance Sheets.

Employee termination costs covered under written and substantive plans are accrued when probable and estimable and consider continuing service requirements, if any. Additionally, incremental one-time employee benefit costs are recognized when the key terms of the arrangements have been communicated to affected employees. Amounts are recognized when communicated or over the remaining service period, based on the terms of the arrangements.

Accrued Expenses: Included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets are accrued payroll-related amounts of $176 million and $221 million at December 31, 2016 and December 26, 2015, respectively.

Fair Value of Financial Instruments: 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. 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 own estimates and assumptions or those expected to be used by market participants.

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. Refer to Note 14 for further fair value information.

Revenue Recognition: Revenue is recognized at the point of sale for retail transactions and at the time of successful delivery for contract, catalog and internet sales. Shipping and handling fees are included in Sales with the related costs included in Cost of goods sold and occupancy costs in the Consolidated Statements of Operations. Service revenue is recognized in Sales as the services are rendered. The Company recognizes sales on a gross basis when it is considered the primary obligor in the transaction and on a net basis when it is considered to be acting as an agent. Sales taxes collected are not included in reported Sales. The Company uses judgment in estimating sales returns, considering numerous factors such as historical sales return rates. The Company also records reductions to revenue for customer programs and incentive offerings including special pricing agreements, certain promotions and other volume-based incentives.

A liability for future performance is recognized when gift cards are sold and the related revenue is recognized when gift cards are redeemed as payment for products or when the likelihood of gift card redemption is considered remote. Gift cards do not have an expiration date. The Company recognizes the estimated portion of the gift card program liability that will not be redeemed, or the breakage amount, in proportion to usage.

Cost of Goods Sold and Occupancy Costs: Cost of goods sold and occupancy costs include:

inventory costs (as discussed above);

outbound freight;

employee and non-employee receiving, distribution, and occupancy costs (rent), including real estate taxes and common area costs, of inventory-holding and selling locations; and

identifiable employee-related costs associated with services provided to customers.

Selling, General and Administrative Expenses: Selling, general and administrative expenses include amounts incurred related to expenses of operating and support functions, including:

employee payroll and benefits, including variable pay arrangements;

advertising;

store and field support;

executive management and various staff functions, such as information technology, human resources functions, finance, legal, internal audit, and certain merchandising and product development functions;

other operating costs incurred relating to selling activities; and

closed defined benefit pension and postretirement plans.

Selling, general and administrative expenses are included in the determination of Division operating income to the extent those costs are considered to be directly or closely related to segment activity and through allocation of support costs.

Merger, Restructuring, and Other Operating (Income) Expenses, net: Merger, restructuring, and other operating (income) expenses, net in the Consolidated Statements of Operations includes amounts related to the Merger, the Staples Acquisition and the Comprehensive Business Review. The line items include charges and, where applicable, credits for components such as: employee termination and retention, transaction and integration-related professional fees, facility closure costs, gains and losses on asset dispositions, and other incremental costs directly related to these activities, which are offset by termination fees. This presentation is used to separate these significant and unusual impacts from captions that are more directly related to ongoing operations. Changes in estimates and accruals related to these activities are also reflected on this line.

Merger, restructuring, and other operating (income) expenses, net are not included in the measure of Division operating income. Refer to Note 2 for additional information.

Advertising: Advertising costs are charged either to Selling, general and administrative expenses when incurred or, in the case of direct marketing advertising, capitalized and amortized in proportion to the related revenues over the estimated life of the materials, which range from several months to up to one year.

Advertising expense recognized was $272 million in 2016, $285 million in 2015 and $350 million in 2014. Prepaid advertising costs were $11 million as of December 31, 2016 and December 26, 2015, and $16 million as of December 27, 2014.

Share-Based Compensation: Compensation expense for all share-based awards expected to vest is measured at fair value on the date of grant and recognized on a straight-line basis over the related service period. The Black-Scholes valuation model is used to determine the fair value of stock options. The fair value of restricted stock and restricted stock units, including performance-based awards, is determined based on the Company’s stock price on the date of grant. Share-based awards with market conditions, such as total shareholder return, are valued using a Monte Carlo simulation as measured on the grant date.

Self-insurance: Office Depot is primarily self-insured for workers’ compensation, auto and general liability and employee medical insurance programs. The Company has stop-loss coverage to limit the exposure arising from these claims. Self-insurance liabilities are based on claims filed and estimates of claims incurred but not reported. These liabilities are not discounted.

Vendor Arrangements: The Company enters into arrangements with substantially all significant vendors that provide for some form of consideration to be received from the vendors. Arrangements vary, but some specify volume rebate thresholds, advertising support levels, as well as terms for payment and other administrative matters. The volume-based rebates, supported by a vendor agreement, are estimated throughout the year and reduce the cost of inventory and cost of goods sold during the year. This estimate is regularly monitored and adjusted for current or anticipated changes in purchase levels and for sales activity. Other promotional consideration received is event-based or represents general support and is recognized as a reduction of Cost of goods sold and occupancy costs or Inventories, as appropriate, based on the type of promotion and the agreement with the vendor. Certain arrangements meet the specific, incremental, identifiable criteria that allow for direct operating expense offset, but such arrangements are not significant.

Pension and Other Postretirement Benefits: The Company sponsors certain closed U.S. and international defined benefit pension plans, certain closed U.S. retiree medical benefit and life insurance plans, as well as a Canadian retiree medical benefit plan open to certain employees.

The Company recognizes the funded status of its defined benefit pension, retiree medical benefit and life insurance plans in the Consolidated Balance Sheets, with changes in the funded status recognized primarily through accumulated other comprehensive income (loss), net of tax, in the year in which the changes occur. Actuarially-determined liabilities related to pension and postretirement benefits are recorded based on estimates and assumptions. Factors used in developing estimates of these liabilities include assumptions related to discount rates, rates of return on investments, healthcare cost trends, benefit payment patterns and other factors. The Company also updates periodically its assumptions about employee retirement factors, mortality, and turnover. Refer to Note 12 for additional details.

Environmental and Asbestos Matters: Environmental and asbestos liabilities relate to acquired legacy paper and forest products businesses and timberland assets. The Company accrues for losses associated with these obligations when probable and reasonably estimable. These liabilities are not discounted. A receivable for insurance recoveries is recorded when probable.

Acquisitions: The Company applies the acquisition method of accounting for acquisitions, including mergers where the Company is considered the accounting acquirer. As such, the total consideration is allocated to the fair value of assets acquired and liabilities assumed at the point the Company obtains control of the entity.

Leasing Arrangements: The Company conducts a substantial portion of its business in leased properties. Some of the Company’s leases contain escalation clauses and renewal options. The Company recognizes rental expense for leases that contain predetermined fixed escalation clauses on a straight-line basis over the expected term of the lease.

The expected term of a lease is calculated from the date the Company first takes possession of the facility, including any periods of free rent, and extends through the non-cancellable period and any option or renewal periods management believes are reasonably assured of being exercised. Rent abatements and escalations are considered in the calculation of minimum lease payments in the Company’s lease classification assessment and in determining straight-line rent expense for operating leases. Straight-line rent expense is also adjusted to reflect any allowances or reimbursements provided by the lessor. When required under lease agreements, estimated costs to return facilities to original condition are accrued over the lease period.

Derivative Instruments and Hedging Activities: The Company records derivative instruments on the balance sheet at fair value. Changes in the fair value of derivative instruments are recorded in current income or deferred in accumulated other comprehensive income, depending on whether a derivative is designated as, and is effective as, a hedge and on the type of hedging transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other comprehensive income until the underlying hedged transactions are recognized in earnings, at which time any deferred hedging gains or losses are also recorded in earnings. If a derivative instrument is designated as a fair value hedge, changes in the fair value of the instrument are reported in current earnings and offset the change in fair value of the hedged assets, liabilities or firm commitments. At December 31, 2016 and December 26, 2015, the fair value of derivative instruments were not considered material and the Company had no material hedge transactions in 2016, 2015 or 2014.

New Accounting Standards: In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that supersedes most current revenue recognition guidance and modifies the accounting for certain costs associated with revenue generation. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a number of steps to apply to achieve that principle and requires additional disclosures. The standard was originally to be effective for the Company’s first quarter of 2017. In July 2015, the FASB approved a one year extension to the required implementation date but also permitted companies to adopt the standard at the original effective date of 2017. Adoption before the original effective date of 2017 is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption.

The Company continues to assess the impact this new standard will have on its Consolidated Financial Statements and has not yet decided on which adoption alternative to apply upon adoption in the first quarter of 2018. However, based on this ongoing assessment, the Company expects that the new standard will require the impacts of its loyalty programs to be presented as a reduction of revenue, rather than as cost accruals as is permitted under existing accounting rules. Also, costs associated with catalogs will be expensed as incurred, rather than capitalized and amortized over the anticipated benefit period. Additionally, the timing of revenue recognition will be accelerated for items where the Company’s performance obligation is complete, such as certain commission arrangements, and delayed where performance obligations remain, such as certain coupons and incentives offered from time-to-time.

In February 2016, the FASB issued an accounting standards update which will require lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The accounting treatment for lessors will remain relatively unchanged. The accounting standards update also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Lessees and lessors are required to use a modified retrospective transition method for existing leases and accordingly, apply the new accounting model for the earliest year presented in the financial statements. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements but anticipates it will result in significant right of use assets and related liabilities associated with our operating leases. Substantially all of the Company’s retail store locations and supply chain facilities are subject to operating lease arrangements. Refer to Note 7 for existing capital lease balances and Note 9 for the undiscounted amount of non-cancelableminimum lease payments of operating leases that will be subjected to this new accounting standard. The Company currently anticipates adopting the standard in the first quarter of 2019.

In March 2016, the FASB issued an accounting standards update as part of its simplification initiative. The new standard will modify several aspects of the accounting and reporting for employee share-based payments and related tax accounting impacts, including the presentation in the statements of operations and cash flows of certain tax benefits or deficiencies and employee tax withholdings, as well as the accounting for award forfeitures over the vesting period. The new standard is effective for fiscal years beginning after December 15, 2016 and will be adopted by the Company in the first quarter of 2017. The Company anticipates the new standard will result in volatility to income tax expense upon the prospective recognition of excess tax benefit and tax deficiency related to share-based payments. Prior period amounts associated with these components have not been significant; however, similar future period impacts cannot be assured.

MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY

12 Months Ended

Dec. 31, 2016

MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY

NOTE 2. MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY

In recent years, the Company has taken actions to adapt to changing and competitive conditions. These actions include closing facilities, consolidating functional activities, eliminating redundant positions, disposing of businesses and assets, and taking actions to improve process efficiencies.

Merger

In 2013, the OfficeMax merger was completed and integration activities similar to the actions described above began. The Company also assumed certain restructuring liabilities previously recorded by OfficeMax. In mid-2014, the Company’s Real Estate Strategy identified 400 retail stores for closure and integration of the supply chain. During the second quarter of 2016, the Company completed the retail store closures under this program. The changes to the supply chain are anticipated to be complete in 2017.

Staples Acquisition and Merger Agreement Termination

On February 4, 2015, Staples and the Company announced that the companies had entered into the Staples Merger Agreement, under which Staples would acquire all of the outstanding shares of Office Depot and the Company would become a wholly owned subsidiary of Staples.

On December 7, 2015, the FTC informed Office Depot and Staples that it intended to block the Staples Acquisition. On the same date, Office Depot and Staples announced their intent to contest the FTC’s decision to challenge the transaction. On May 10, 2016, the U.S. District Court for the District of Columbia granted the FTC’s request for a preliminary injunction against the proposed acquisition, and as a result, the companies terminated the Staples Merger Agreement on May 16, 2016. Per the terms of the termination agreement, Staples paid Office Depot a Termination Fee of $250 million in cash on May 19, 2016, which is included in Merger, restructuring and other operating (income) expenses, net in the Consolidated Statements of Operations and in Net cash provided by operating activities of continuing operations in the Consolidated Statements of Cash Flows.

Comprehensive Business Review

During August 2016, the Company announced the results of a comprehensive business review and strategy (the “Comprehensive Business Review”), which, among other things, included an anticipation of closing approximately 300 additional retail stores in North America over the next three years, anticipated restructuring initiatives to lower operating and general and administrative expenses, and continued exploration of strategic alternatives regarding the European business that had been initiated by Staples as part of their attempt to get European Union regulatory approval of the Staples Acquisition.

Merger, Restructuring, and Other Operating (Income) Expenses, net

The Company presents Merger, restructuring and other operating (income) expenses, net on a separate line in the Consolidated Statements of Operations to identify these activities apart from the expenses incurred to sell to and service its customers. These expenses are not included in the determination of Division operating income. The table below summarizes the major components of Merger, restructuring and other operating (income) expenses, net.


(In millions)	2016			2015		2014
Merger expenses:
Severance, retention, and relocation	$	—		$	15	$	148
Transaction and integration		37			81		124
Facility closure, contract termination, and other expenses, net		27			44		62

Total Merger related expenses		64			140		334

Staples Acquisition (income) expenses:
Retention		15			65		—
Transaction		43			37		—
Termination Fee		(250	)		—		—

Total Staples Acquisition (income) expenses		(192	)		102		—

Comprehensive Business Review expenses:
Severance		22			—		—
Facility closure, contract termination, professional fees and other expenses, net		26			—		—

Total Comprehensive Business Review expenses		48			—		—

Total Merger, restructuring and other operating (income) expenses, net	$	(80	)	$	242	$	334

Merger related expenses

Severance, retention, and relocation expenses include amounts incurred for the integration of staff functions and include termination benefits for certain retail and supply chain closures. Such benefits are being accrued through the anticipated facility closure dates. Severance calculations consider factors such as the expected timing of facility closures, terms of existing severance plans, expected employee turnover and attrition.

Transaction and integration expenses include integration-related professional fees, incremental temporary contract labor, salary and benefits for employees dedicated to the Merger activity, travel costs, non-capitalizable software integration costs, and other direct costs to combine the companies. Such costs are being recognized as incurred.

Facility closure, contract termination and other expenses, net primarily relate to facility closure accruals, contract termination costs, gains and losses on asset dispositions, and accelerated depreciation. Facility closure expenses include amounts incurred by the Company to close retail stores in the United States as part of the Real Estate Strategy, as well as supply chain facilities. The Company closed 51, 181 and 168 retail stores in 2016, 2015 and 2014, respectively. During 2016 and 2015, the Company recognized gains of $1 million and $36 million, respectively, from the sale of warehouse facilities that had been classified as assets held for sale. The gains are included in Merger, restructuring and other operating (income) expenses, net, as the dispositions were part of the supply chain integration associated with the Merger.

Staples Acquisition (income) expense

Expenses include retention accruals, transaction costs, including costs associated with regulatory filings and professional fees and are offset by the Termination Fee income.

Comprehensive Business Review expenses

Expenses associated with implementing the Comprehensive Business Review include severance, facility closure costs, contract termination, accelerated depreciation, professional fees, relocation and disposal gains and losses, as well as other costs associated with the store closures. The Company has closed 72 stores since announcing this initiative. Restructuring expenses also include severance and reorganization costs associated with reductions in staff functions that continued into the first quarter of 2017. Severance costs are being accrued through the anticipated facility closure or termination date and consider timing, terms of existing severance plans, expected employee turnover and attrition.

Asset impairments related to the restructuring initiatives are not included in the table above. Refer to Note 14 for further information.

Merger and Restructuring Accruals

Activity in the merger and restructuring accruals in 2016 and 2015 is presented in the table below. The total of $(80) million in income presented in Merger, restructuring and other operating (income) expenses, net in the 2016 Consolidated Statements of Operation, includes the $250 million Termination Fee income. There were $170 million of expense incurred in 2016 of which $70 million relate to Merger and restructuring liabilities and are included as Charges incurred in the table below. The remaining $100 million expense is comprised of $43 million for Staples Acquisition transactions expenses, $37 million of Merger transaction and integration expenses and $20 million in property expenses, professional fees, non-cash items and other expenses. For 2015, of the total $242 million Merger, restructuring and other expenses incurred, $158 million is related to merger or restructuring liabilities and are included as Charges incurred in the table below. The remaining $84 million incurred in 2015 is comprised of $81 million Merger transaction and integration expenses, $37 million Staples Acquisition transaction expenses, and $2 million associated primarily with fixed assets and rent related expenses, partially offset by the $36 million gain on the disposition of the warehouse facilities which resulted from the supply chain integration. These charges are excluded from the table below because they are expensed as incurred, non-cash, or otherwise not associated with the merger and restructuring balance sheet accounts.


(In millions)	Beginning Balance		Charges Incurred			Cash Payments			Lease Accretion and Other Adjustments			Ending Balance
2016
Termination benefits:
Merger-related accruals	$	16	$	—		$	(9	)	$	(2	)	$	5
Comprehensive Business Review		—		19			(11	)		—			8
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		77		22			(62	)		3			40
Comprehensive Business Review		—		19			(6	)		—			13
Other restructuring accruals		14		(2	)		(8	)		1			5
Acquired entity accruals		25		(3	)		(7	)		3			18
Staples acquisition related accruals		64		15			(79	)		—			—

Total	$	196	$	70		$	(182	)	$	5		$	89

2015
Termination benefits:
Merger-related accruals	$	31	$	16		$	(31	)	$	—		$	16
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		71		76			(70	)		—			77
Other restructuring accruals		23		(1	)		(10	)		2			14
Acquired entity accruals		36		3			(15	)		1			25
Staples acquisition related accruals		—		64			—			—			64

Total merger and restructuring accruals	$	161	$	158		$	(126	)	$	3		$	196

The short-term and long-term components of these liabilities are included in Accrued expenses and other current liabilities and Deferred income taxes and other long-term liabilities, respectively, on the Consolidated Balance Sheets.

DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2016

DISCONTINUED OPERATIONS

NOTE 3. DISCONTINUED OPERATIONS

In the second quarter of 2016, following termination of the Staples Agreement, the Company disclosed its intention to explore strategic alternatives regarding its European business of the International Division.

On September 23, 2016, the Company announced that it had received an irrevocable offer from Aurelius Rho Invest DS GmbH, a subsidiary of The AURELIUS Group (the “Purchaser”) to acquire the Company’s European business operations (the “OD European Business”). The transaction was structured as an equity sale with the Purchaser acquiring the OD European Business with its operating assets and liabilities.

In addition to approving the sale of the OD European Business in the third quarter of 2016, the Company’s Board of Directors approved a plan to sell substantially all of the remaining operations of the International Division. On December 31, 2016, the Company closed the sale of the OD European Business contemplated by the Sale and Purchase Agreement dated November 22, 2016 as amended to complete the sale (the “SPA”). Approximately $70 million has been accrued at December 31, 2016 under a working capital adjustment provision. The draft working capital adjustment submitted by the Company to the Purchaser is subject to a dispute resolution provision as provided for in the SPA. The Company is actively marketing for sale the businesses in South Korea, mainland China, Australia and New Zealand and expects to complete the dispositions within the one year period associated with held for sale assets. Collectively, the OD European Business sale and other planned dispositions represent a strategic shift that has a major impact on the Company’s operations and financial results and has been accounted for as discontinued operations. The retained sourcing and trading operations of the former International Division are presented as Other in Note 16, Segment Information.

The Company has presented the operating results of the OD European Business as well as the entities to be sold within discontinued operations, net of tax in the Consolidated Statements of Operations for all periods presented. The related assets and liabilities of the disposal groups are presented as current and non-current assets and liabilities of discontinued operations in the Consolidated Balance Sheets as of December 31, 2016 and December 26, 2015. Cash flows from the Company’s discontinued operations are presented in the Consolidated Statements of Cash Flows for all periods. Certain portions of the former International Division assets and operations are being retained or did not meet the held for sale criteria at December 31, 2016 and, therefore, remain in continuing operations.

The loss on classification as discontinued operations relating to the remaining entities was measured at the lower of carrying value or estimated fair value less costs to sell and is included in the valuation allowance in the balance sheet as shown below. Completion of the sale of the remaining international operations may be for amounts different from the current estimates and will be evaluated each reporting period until the dispositions are complete.

In accordance with the Company’s annual goodwill impairment test $15 million of goodwill in the Australia/New Zealand reporting unit was considered impaired in the third quarter of 2016 based on a decrease in the long-term projected cash flows and related estimated terminal value of that business.

Restructuring charges incurred by the International Division that previously had been presented as part of Corporate costs have been included in the measurement and presentation of discontinued operations in all periods presented.

The SPA contains customary warranties of the Company and the Purchaser, with the Company’s warranties limited to an aggregate of EUR 10 million. The Company will provide various transition and product sourcing services to the Purchaser for a period of six to 24 months under a separate agreement after the closing. Also, as part of the disposition, the Company retained responsibility for the frozen defined benefits pension plan in the United Kingdom.

As part of the OD European Business sale transaction, the Purchaser shall indemnify and hold the Company harmless in connection with any guarantees in place as of September 23, 2016 and given by Company in respect of the liabilities or obligations of the OD European Business. Further, if the Purchaser wishes to terminate any such guarantee or cease to comply with any underlying obligation which is subject to such a guarantee, the Purchaser shall obtain an unconditional and irrevocable release of the guarantee. However, the Company is contingently liable in the event of a breach by the Purchaser of any such obligation. The Company does not believe it is probable it would be required to perform under any of these guarantees or such underlying obligations.

The major components of Discontinued operations, net of tax presented in the Consolidated Statements of Operations for the years ended December 31, 2016, December 26, 2015 and December 27, 2014 include the following.


(In millions)	2016			2015			2014
Sales	$	2,564		$	2,758		$	3,386
Cost of goods sold and occupancy costs		2,019			2,119			2,586
Operating expenses		573			617			746
Asset impairments		90			—			32
Restructuring charges		11			90			69
Interest income		1			2			2
Interest expense		(5	)		(2	)		(2	)
Other income (expense), net		(2	)		—			(2	)
Loss on sale or held for sale classification		(223	)		—			—
Income tax expense (benefit)		(208	)		16			10

Discontinued operations, net of tax	$	(150	)	$	(84	)	$	(59	)

Disposition of the OD European Business on December 31, 2016 resulted in a pre-tax loss on sale of $108 million and is included in the table above. The tax benefit associated with discontinued operations differs from the statutory rate due to the mix of earnings and loss in the various jurisdictions, the impact of various permanent items and other factors.

Assets and liabilities of discontinued operations presented in the Consolidated Balance Sheets at December 31, 2016, and December 26, 2015 are included in the following table. As the sale of the OD European Business was completed before year end 2016, accordingly, the assets and liabilities of that business are not included as of December 31, 2016.


(In millions)	2016			2015
Assets
Cash and cash equivalents	$	44		$	209
Receivables, net		88			420
Inventories		82			292
Prepaid expenses and other current assets		4			35
Property and equipment, net		31			—
Other assets		6			—
Valuation allowance		(113	)		—

Current assets of discontinued operations	$	142		$	956

Property and equipment, net	$	—		$	119
Goodwill		—			15
Other assets		—			48

Non-current assets of discontinued operations	$	—		$	182

Liabilities
Trade accounts payable	$	60		$	331
Accrued expenses and other current liabilities		27			282
Income taxes payable		2			4
Short-term borrowings and current maturities of long-term debt		9			5
Deferred income taxes and other long-term liabilities		6			—

Current liabilities of discontinued operations	$	104		$	622

Deferred income taxes and other long-term liabilities	$	—		$	40
Long-term debt, net of current maturities		—			6

Non-current liabilities of discontinued operations	$	—		$	46

Cash flows from discontinued operations included depreciation and amortization of $19 million, $30 million, and $36 million for the years ended December 31, 2016, December 26, 2015 and December 27, 2014 respectively, as well as capital expenditures of $9 million, $19 million, and $27 million for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, respectively.

The entire disclosure 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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GOODWILL AND OTHER INTANGIBLE ASSETS

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

PROPERTY AND EQUIPMENT

NOTE 4. PROPERTY AND EQUIPMENT

Property and equipment consists of:


(In millions)	December 31, 2016			December 26, 2015
Land	$	46		$	50
Buildings		279			284
Leasehold improvements		685			695
Furniture, fixtures and equipment		1,155			1,099

		2,165			2,128
Less accumulated depreciation		(1,564	)		(1,463	)

Total	$	601		$	665

The above table of property and equipment includes assets held under capital leases as follows:


(In millions)	December 31, 2016			December 26, 2015
Buildings	$	191		$	192
Furniture, fixtures and equipment		85			80

		276			272
Less accumulated depreciation		(165	)		(141	)

Total	$	111		$	131

Depreciation expense was $124 million in 2016, $172 million in 2015, $183 million in 2014.

Included in furniture, fixtures and equipment above are capitalized software costs of $476 million and $443 million at December 31, 2016 and December 26, 2015, respectively. The unamortized amounts of the capitalized software costs are $89 million and $96 million at December 31, 2016 and December 26, 2015, respectively. Amortization of capitalized software costs totaled $47 million, $67 million and $76 million in 2016, 2015 and 2014, respectively. Software development costs that do not meet the criteria for capitalization are expensed as incurred.

Estimated future amortization expense related to capitalized software at December 31, 2016 is as follows:


(In millions)
2017	$	35
2018		25
2019		15
2020		9
2021		5

The weighted average remaining amortization period for capitalized software is 2.8 years.

Other assets held for sale

Certain facilities that are part of continuing operations, but have been identified for closure through integration and other activities, have been accounted for as assets held for sale. Assets held for sale primarily consist of supply chain facilities and are presented in Prepaid expenses and other current assets in the Consolidated Balance Sheets. The assets held for sale activity in 2016 is presented in the table below.


(In millions)
Balance as of December 26, 2015	$	30
Additions		6
Dispositions		(13	)

Balance as of December 31, 2016	$	23

Gain on dispositions associated with the Merger or restructuring activities will be recognized at the Corporate level and included when realized in Merger, restructuring and other operating (income) expenses, net in the Consolidated Statements of Operations. Losses, if any, are recognized when classified as held for sale. Gains or losses associated with dispositions of properties not associated with Merger or restructuring activities will be presented as a component of operations when the related accounting criteria are met. Refer to Note 2 for further information on Merger, restructuring and other operating (income) expenses, net, including gains realized related to disposition of held for sale assets.

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2016

NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The components of goodwill by segment are provided in the following table:


(In millions)	North American Retail Division		North American Business Solutions Division		Corporate		Total
Balance as of December 26, 2015	$	78	$	285	$	—	$	363

Balance as of December 31, 2016	$	78	$	285	$	—	$	363

Goodwill in the North American Business Solutions Division in the table above is net of $349 million of accumulated impairment loss recognized in 2008.

Intangible Assets

Definite-lived intangible assets are reviewed periodically to determine whether events and circumstances indicate the carrying amount may not be recoverable or the remaining period of amortization should be revised. In connection with implementing the Real Estate Strategy and the Comprehensive Business Review, the Company recognized impairment charges associated with favorable leases at closing locations in 2016, 2015 and 2014 totaling $7 million, $1 million and $5 million, respectively. These impairment charges are presented in Asset impairments in the Consolidated Statements of Operations. Refer to Note 14 for additional information on fair value measurement.

Definite-lived intangible assets, which are included in Other intangible assets, net in the Consolidated Balance Sheets, are as follows:


	December 31, 2016
(In millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	74	$	(53	)	$	21
Favorable leases		18		(6	)		12

Total	$	92	$	(59	)	$	33


	December 26, 2015
(In millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	74	$	(44	)	$	30
Favorable leases		30		(7	)		23
Trade names		8		(8	)		—

Total	$	112	$	(59	)	$	53

Definite-lived intangible assets generally are amortized using the straight-line method. The pattern of benefit associated with one customer relationship asset recognized as part of the Merger warranted a three-year accelerated declining balance method. Favorable leases are amortized using the straight-line method over the lives of the individual leases, including option renewals anticipated in the original valuation. The remaining weighted average amortization periods for customer relationships and favorable leases are 5 years, and 16 years, respectively.

Amortization of intangible assets was $10 million in 2016, $13 million in 2015 and $18 million in 2014. Intangible assets amortization expenses are included in the Consolidated Statements of Operations in Selling, general and administrative expenses. Amortization of favorable leases is included in rent expense. Refer to Note 9 for further detail.

Estimated future amortization expense for the intangible assets is as follows:


(In millions)
2017	$	7
2018		5
2019		4
2020		4
2021		4
Thereafter		9

Total	$	33

TIMBER NOTES/NON-RECOURSE DEBT

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

TIMBER NOTES/NON-RECOURSE DEBT

12 Months Ended

Dec. 31, 2016

NOTE 6. TIMBER NOTES/NON-RECOURSE DEBT

As part of the Merger, the Company also acquired credit-enhanced timber installment notes with an original principal balance of $818 million (the “Installment Notes”) that were part of the consideration received in exchange for OfficeMax’s sale of timberland assets in October 2004. The Installment Notes were issued by a single-member limited liability company formed by affiliates of Boise Cascade, L.L.C. (the “Note Issuers”). The Installment Notes are non-amortizing obligations bearing interest at 4.98% and maturing in 2020. In order to support the issuance of the Installment Notes, the Note Issuers transferred a total of $818 million in cash to Wells Fargo & Company (“Wells Fargo”) (which at the time was Wachovia Corporation). Wells Fargo issued a collateral note (the “Collateral Note”) to the Note Issuers. Concurrently with the issuance of the Installment Notes and the Collateral Note, Wells Fargo guaranteed the respective Installment Notes and the Note Issuers pledged the Collateral Note as security for the performance of the obligations under the Installment Notes. As all amounts due on the Installment Notes are current and the Company has no reason to believe that the Company will not be able to collect all amounts due according to the contractual terms of the Installment Notes, the Installment Notes are reported as Timber Notes in the Consolidated Balance Sheets in the amount of $885 million and $905 million at December 31, 2016 and December 26, 2015, respectively, which represents the original principal amount of $818 million plus a fair value adjustment recorded through purchase accounting in connection with the Merger. The premium is amortized under the effective interest method as a component of interest income through the maturity date.

Also as part of the Merger, the Company acquired non-recourse debt that OfficeMax issued under the structure of the timber note transactions. In December 2004, the interests in the Installment Notes and related guarantee were transferred to wholly-owned bankruptcy remote subsidiaries in a securitization transaction. The subsidiaries pledged the Installment Notes and related guarantee and issued for cash securitized notes (the “Securitization Notes”) in the amount of $735 million supported by the Wells Fargo guaranty. Recourse on the Securitization Notes is limited to the proceeds of the applicable pledged Installment Notes and underlying Wells Fargo guaranty, and therefore there is no recourse against the Company. The Securitization Notes are non-amortizing and pay interest of 5.42% through maturity in 2019. The Securitization Notes are reported as Non-recourse debt in the Company’s Consolidated Balance Sheets in the amount of $798 million and $819 million at December 31, 2016 and December 26, 2015, respectively, which represents the original principal amount of $735 million plus a fair value adjustment recorded through purchase accounting in connection with the Merger. The premium is amortized under the effective interest method as a component of interest expense through the maturity date. Refer to Note 7 for additional information.

The Installment Notes and related Securitization Notes are scheduled to mature in 2020 and 2019, respectively. The Securitization Notes have an initial term that is approximately three months shorter than the Installment Notes.

The sale of the timberlands in 2004 generated a tax gain for OfficeMax and a related deferred tax liability was recognized. The timber installment notes structure allowed the deferral of the resulting tax liability until 2020, the maturity date for the Installment Notes. At December 31, 2016, there is a deferred tax liability of $260 million related to the Installment Notes that will become due upon maturity.

DEBT

12 Months Ended

Dec. 31, 2016

DEBT

NOTE 7. DEBT

Debt consists of the following:


(In millions)	December 31, 2016		December 26, 2015
Recourse debt:
Short-term borrowings and current maturities of long-term debt:
Capital lease obligations	$	27	$	29
7.35% debentures, due 2016		—		18
Other current maturities of long-term debt		2		4

Total	$	29	$	51

Long-term debt, net of current maturities:
Senior Secured Notes, due 2019	$	—	$	250
Unamortized debt issuance cost		—		(3	)

Senior Secured Notes, due 2019, net		—		247

Revenue bonds, due in varying amounts periodically through 2029		186		186
American & Foreign Power Company, Inc. 5% debentures, due 2030		14		14
Capital lease obligations		146		169
Other		12		12

Total	$	358	$	628

Non-recourse debt:
5.42% Securitization Notes, due 2019 — Refer to Note 6	$	735	$	735
Unamortized premium		63		84

Total	$	798	$	819

The Company was in compliance with all applicable financial covenants of existing loan agreements at December 31, 2016.

Amended Credit Agreement

On May 25, 2011, the Company entered into an Amended and Restated Credit Agreement with a group of lenders. Additional amendments to the Amended and Restated Credit Agreement have been entered into and were effective February 2012, March 2013, November 2013, May 2015, May 2016 and December 2016 (the Amended and Restated Credit Agreement including all amendments is referred to as the “Amended Credit Agreement”). The Amended Credit Agreement provides for an asset based, multi-currency revolving credit facility of up to $1.2 billion (the “Facility”). The Amended Credit Agreement also provides that the Facility may be increased by up to $250 million, subject to certain terms and conditions, including obtaining increased commitments from existing or new lenders. The amount that can be drawn on the Facility at any given time is determined based on percentages of certain accounts receivable, inventory and credit card receivables (the “Borrowing Base”). The Facility includes a sub-facility of up to $200 million which is available to the Company and certain of the Company’s European and Canadian subsidiaries (the “European Borrowers”). Certain of the Company’s domestic subsidiaries guaranty the obligations under the Facility (the “Domestic Guarantors”). The Amended Credit Agreement also provides for a letter of credit sub-facility of up to $400 million, as well as a swingline loan sub-facility of up to $125 million to the Company and an additional swingline loan sub-facility of up to $25 million to the European Borrowers. All loans borrowed under the Facility may be borrowed, repaid and reborrowed from time to time until the maturity date of May 13, 2021 as provided in the Amended Credit Agreement.

In conjunction with the sale of the OD European business on December 31, 2016, the European parties to the facility were removed from the agreement and all first priority liens on related European assets were released.

All amounts borrowed under the Facility, as well as the obligations of the Domestic Guarantors, are secured by a first priority lien on the Company’s and such Domestic Guarantors’ accounts receivables, inventory, cash, cash equivalents and deposit. All amounts borrowed by the European Borrowers under the Facility are secured by a lien on such European Borrowers’ accounts receivable, inventory, cash, cash equivalents and deposit accounts, as well as certain other assets. At the Company’s option, borrowings made pursuant to the Facility bear interest at either, (i) the alternate base rate (defined as the higher of the Prime Rate (as announced by the Agent), the Federal Funds Rate plus 1/2 of 1% and the one month Adjusted LIBO Rate (defined below) and 1%) or (ii) the Adjusted LIBO Rate (defined as the LIBO Rate as adjusted for statutory revenues) plus, in either case, a certain margin based on the aggregate average availability under the Facility.

The Amended Credit Agreement also contains representations, warranties, affirmative and negative covenants, and default provisions which are conditions precedent to borrowing. The most significant of these covenants and default provisions include limitations in certain circumstances on acquisitions, dispositions, share repurchases and the payment of cash dividends.

The Facility also includes provisions whereby if the global availability is less than $150 million, or the European availability is below $25 million, the Company’s cash collections go first to the agent to satisfy outstanding borrowings. Further, if total availability falls below $125 million, a fixed charge coverage ratio test is required. Any event of default that is not cured within the permitted period, including non-payment of amounts when due, any debt in excess of $25 million becoming due before the scheduled maturity date, or the acquisition of more than 40% of the ownership of the Company by any person or group, within the meaning of the Securities and Exchange Act of 1934, could result in a termination of the Facility and all amounts outstanding becoming immediately due and payable.

At December 31, 2016, the Company had $1.0 billion of available credit under the Facility based on the December 2016 Borrowing Base certificate. At December 31, 2016, no amounts were outstanding under the Facility. Letters of credit outstanding under the Facility totaled $83 million. There were no borrowings under the Facility during 2016.

Senior Secured Notes

On September 15, 2016, the Company redeemed its outstanding 9.75% Senior Secured Notes due 2019 (the “Senior Secured Notes”) which had an aggregate principal outstanding of $250 million. The Notes were redeemed for cash at the outstanding principal amount plus a $12 million premium calculated as 4.875% of the principal amount. The total payment amounted to $262 million, plus accrued interest. The premium and recognition of the remaining deferred debt issue costs totaled $15 million and are presented as Loss on extinguishment of debt in the Consolidated Statements of Operations for 2016. The $12 million cash premium paid is reported in financing activities in the Consolidated Statements of Cash Flows.

Other Short- and Long-Term Debt

As a result of the Merger, the Company assumed the liability for the amounts in the table above related to the (i) 7.35% debentures, due 2016, which were paid in full at maturity in February 2016, (ii) Revenue bonds, due in varying amounts periodically through 2029, and (iii) American & Foreign Power Company, Inc. 5% debentures, due 2030.

Capital Lease Obligations

Capital lease obligations primarily relate to buildings and equipment.

Refer to Note 6 for further information on non-recourse debt.

Schedule of Debt Maturities

Aggregate annual maturities of recourse debt and capital lease obligations are as follows:


(In millions)
2017	$	39
2018		35
2019		33
2020		38
2021		28
Thereafter		260

Total		433
Less amount representing interest on capital leases		(46	)

Total		387
Less:
Current portion		(29	)

Total long-term debt	$	358

INCOME TAXES

12 Months Ended

Dec. 31, 2016

INCOME TAXES

NOTE 8. INCOME TAXES

The components of income (loss) from continuing operations before income taxes consisted of the following:


(In millions)	2016		2015			2014
United States	$	445	$	122		$	(286	)
Foreign		14		(7	)		(5	)

Total income (loss) from continuing operations before income taxes	$	459	$	115		$	(291	)

The income tax expense related to income (loss) from continuing operations consisted of the following:


(In millions)	2016			2015			2014
Current:
Federal	$	17		$	18		$	(2	)
State		6			4			(1	)
Foreign		3			1			3
Deferred :
Federal		(210	)		(1	)		—
State		(37	)		2			3
Foreign		1			(1	)		(1	)

Total income tax expense (benefit)	$	(220	)	$	23		$	2

The following is a reconciliation of income taxes at the U.S. Federal statutory rate to the provision for income taxes:


(In millions)	2016			2015			2014
Federal tax computed at the statutory rate	$	160		$	40		$	(102	)
State taxes, net of Federal benefit		(20	)		5			1
Foreign income taxed at rates other than Federal		—			6			8
Increase (decrease) in valuation allowance		(349	)		(46	)		85
Non-deductible Merger expenses		—			11			—
Other non-deductible expenses		3			4			13
Non-taxable income and additional deductible expenses		(13	)		(2	)		(2	)
Change in unrecognized tax benefits		(3	)		—			—
Tax expense from intercompany transactions		—			6			—
Subpart F and dividend income, net of foreign tax credits		2			1			2
Other items, net		—			(2	)		(3	)

Income tax expense (benefit)	$	(220	)	$	23		$	2

The effective tax rate for 2016 was primarily impacted by the change in the Company’s U.S. federal and state valuation allowance. In 2016, the Company experienced a lower than expected effective rate due to the realization of certain deferred tax assets during the year whose benefits were limited in prior periods due to the valuation allowance. In addition, the Company recognized a discrete non-cash income tax benefit for the reversal of the majority of the remaining U.S. federal and state valuation allowance. The effective tax rate for 2016 was also impacted by the deductibility of certain formerly non-deductible expenses primarily related to the Staples Acquisition. In 2015, the Company incurred charges related to certain Staples Acquisition expenses that are not deductible for tax purposes, which increased the effective tax rate for 2015. With the termination of the merger agreement in 2016, a large portion of these expenses became deductible in 2016, resulting in a lower effective tax rate for 2016. In addition, the 2015 effective tax rate includes U.S. income tax expense on a foreign exchange gain associated with the restructuring of certain intercompany financing. In 2014, the Company recognized income tax expense on a pretax loss due to deferred tax benefits not being recognized on pretax losses in certain tax jurisdictions with valuation allowances, while income tax expense was recognized in tax jurisdictions with pretax income.

The Company operates in several foreign jurisdictions with income tax rates that differ from the U.S. Federal statutory rate, which resulted in an expense for all years presented in the effective tax rate reconciliation. Significant foreign tax jurisdictions for which the Company realized such expense are Canada and Puerto Rico after the sale of the other international operations.

Due to valuation allowances against the Company’s deferred tax assets, no income tax benefit was initially recognized in the 2015 or 2014 Consolidated Statement of Operations related to stock-based compensation expense due to the Company’s inability to utilize them to offset current income taxes payable. However, due to the profitable tax-paying position in the U.S. in 2015, the Company realized an income tax benefit of $3 million for the utilization of net operating loss carryforwards that had resulted from excess stock-based compensation deductions for which no benefit was previously recorded. The Company also realized an income tax benefit of $2 million for excess stock-based compensation deductions resulting from the exercise and vesting of equity awards during 2016 and $7 million for excess stock-based compensation deductions resulting from the exercise and vesting of equity awards during 2015. These income tax benefits were recorded as increases to additional paid-in capital in 2015 and 2016.

The components of deferred income tax assets and liabilities consisted of the following:


(In millions)	December 31, 2016			December 26, 2015
U.S. and foreign loss carryforwards	$	275		$	79
Deferred rent credit		61			68
Pension and other accrued compensation		134			200
Accruals for facility closings		29			43
Inventory		20			19
Self-insurance accruals		29			33
Deferred revenue		24			45
U.S. and foreign income tax credit carryforwards		197			223
Allowance for bad debts		5			12
Accrued expenses		28			32
Basis difference in fixed assets		69			73
Other items, net		5			—

Gross deferred tax assets		876			827
Valuation allowance		(140	)		(522	)

Deferred tax assets		736			305

Internal software		5			5
Installment gain on sale of timberlands		260			263
Deferred Subpart F income		—			27
Undistributed foreign earnings		8			2

Deferred tax liabilities		273			297

Net deferred tax assets	$	463		$	8

As of December 31, 2016 and December 26, 2015, deferred income tax liabilities amounting to $3 million and $2 million, respectively, are included in Deferred income taxes and other long-term liabilities.

As of December 31, 2016, the Company has utilized all of its U.S. Federal net operating loss (“NOL”) carryforwards. The Company has $91 million of foreign and $1.2 billion of state NOL carryforwards. Of the foreign NOL carryforwards, $35 million can be carried forward indefinitely, none will expire in 2017 and the remaining balance will expire between 2018 and 2036. Of the state NOL carryforwards, $37 million will expire in 2017, and the remaining balance will expire between 2018 and 2036. The Company has capital loss carryover available to offset future capital gains generated of $555 million which expires in 2021. The Company also has $89 million of U.S. Federal alternative minimum tax credit carryforwards, which can be used to reduce future regular federal income tax, if any, over an indefinite period. Additionally, the Company has $96 million of U.S. Federal foreign tax credit carryforwards, which expire between 2019 and 2026, and $13 million of state and foreign tax credit carryforwards, $3 million of which can be carried forward indefinitely, and the remaining balance will expire between 2023 and 2027.

As of December 31, 2016, the Company has not triggered an “ownership change” as defined in Internal Revenue Code Section 382 or other similar provisions that would limit the use of NOL and tax credit carryforwards. However, if the Company were to experience an ownership change in future periods, the Company’s deferred tax assets and income tax expense may be negatively impacted. Deferred income taxes have been provided on all undistributed earnings of foreign subsidiaries.

The following summarizes the activity related to valuation allowances for deferred tax assets:


(In millions)	2016			2015			2014
Beginning balance	$	522		$	571		$	448
Additions, charged to expense		—			—			123
Reductions		(382	)		(49	)		—

Ending balance	$	140		$	522		$	571

The Company has significant deferred tax assets in the U.S. against which valuation allowances have been established to reduce such deferred tax assets to the amount that is more likely than not to be realized. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. An accumulation of recent pre-tax losses is considered strong negative evidence in that evaluation. As of the third quarter of 2016, the Company concluded that it was more likely than not that a benefit from a substantial portion of its U.S. federal and state deferred tax assets would be realized. This conclusion was based on a detailed evaluation of all available positive and negative evidence and the weight of such evidence, the current financial position and results of operations for the current and preceding years, and the expectation of continued earnings. The Company determined that approximately $382 million of its U.S. federal and state valuation allowance should be reversed in 2016.

After the 2016 reversal, the Company will have a U.S. valuation allowance for certain U.S. federal credits and certain state tax attributes. The remaining valuation allowances relate to deferred tax assets that require certain types of income or for income to be earned in certain jurisdictions in order to be realized. It is reasonably possible that a portion of the remaining valuation allowance may be released in the future based upon continued profitability. The Company will continue to assess the realizability of its deferred tax assets in the U.S. and remaining foreign jurisdictions in future periods.

The Company’s total valuation allowance decreased by $382 million during 2016. The Company recognized income tax benefit of $349 million associated with the release of valuation allowances in the U.S. federal and state jurisdictions in 2016 because the realizability of the related deferred tax assets was more likely than not.

The following table summarizes the activity related to unrecognized tax benefits:


(In millions)	2016			2015			2014
Beginning balance	$	18		$	22		$	15
Increase related to current year tax positions		1			1			6
Increase related to prior year tax positions		—			1			4
Decrease related to prior year tax positions		—			(5	)		(2	)
Decrease related to lapse of statute of limitations		—			(1	)		—
Decrease related to settlements with taxing authorities		(5	)		—			(1	)

Ending balance	$	14		$	18		$	22

Due to the completion of the Internal Revenue Service (“IRS”) examination for 2014, the Company’s balance of unrecognized tax benefits decreased by $4 million during 2016, which did impact income tax expense by $3 million due to an offsetting change in valuation allowance. Included in the balance of $14 million at December 31, 2016, are $7 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. The difference of $7 million primarily results from tax positions which if sustained would be offset by changes in valuation allowance. It is not anticipated that certain tax positions will be resolved within the next 12 months, which would decrease the Company’s balance of unrecognized tax benefits. 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 reasonably be made.

The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in the provision for income taxes. The Company recognized interest and penalty expense of $3 million and $2 million in 2016 and 2015, respectively. The Company recognized a net interest and penalty benefit of $9 million in 2014 due to settlements reached with certain taxing authorities. The Company had approximately $6 million accrued for the payment of interest and penalties as of December 31, 2016, which is not included in the table above.

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 before 2014 and 2009, respectively. During 2015, the IRS examination of the OfficeMax 2012 U.S. federal income tax return concluded, which resulted in a $6 million decrease in tax credit carryforwards. Such decrease had no impact on income tax expense due to an offsetting change in valuation allowance. The acquired OfficeMax U.S. consolidated group is no longer subject to U.S. federal and state and local income tax examinations for years before 2013 and 2006, respectively. The U.S. federal income tax returns for 2015 are currently under review. Generally, the Company is subject to routine examination for years 2008 and forward in its international tax jurisdictions.

LEASES

12 Months Ended

Dec. 31, 2016

LEASES

NOTE 9. LEASES

The Company leases retail stores and other facilities, vehicles, and equipment under operating lease agreements. Facility leases typically are for a fixed non-cancellable term with one or more renewal options. In addition to minimum rentals, the Company is required to pay certain executory costs such as real estate taxes, insurance and common area maintenance on most of the facility leases. Many lease agreements contain tenant improvement allowances, rent holidays, and/or rent escalation clauses. Certain leases contain provisions for additional rent to be paid if sales exceed a specified amount, though such payments have been immaterial during the years presented.

For tenant improvement allowances, scheduled rent increases, and rent holidays, a deferred rent liability is recognized and amortized over the terms of the related leases as a reduction of rent expense. Rent related accruals totaled $196 million and $221 million at December 31, 2016 and December 26, 2015, respectively. The short-term and long-term components of these liabilities are included in Accrued expenses and other current liabilities and Deferred income taxes and other long-term liabilities, respectively, on the Consolidated Balance Sheets.

Rent expense, including equipment rental, was $484 million, $513 million, $602 million in 2016, 2015 and 2014, respectively. Rent expense was reduced by sublease income of $2 million in 2016, $4 million in 2015 and $5 million in 2014.

Future minimum lease payments due under the non-cancelable portions of leases as of December 31, 2016 include facility leases that were accrued as store closure costs and are as follows:


(In millions)
2017	$	486
2018		369
2019		275
2020		180
2021		104
Thereafter		173

		1,587
Less sublease income		(31	)

Total	$	1,556

These minimum lease payments do not include contingent rental payments that may be due based on a percentage of sales in excess of stipulated amounts.

As of December 31, 2016 and December 26, 2015, unfavorable lease deferred credit for store leases with terms above market value amounted to $10 million and $18 million, respectively, and are included in Deferred income taxes and other long-term liabilities in the Consolidated Balance Sheets. The unfavorable lease values are amortized on a straight-line basis over the lives of the leases, unless the facility has been identified for closure under the Real Estate Strategy or Comprehensive Business Review. In 2016, 2015 and 2014, the net amortization of favorable and unfavorable lease values reduced rent expense by $4 million, $6 million and $7 million, respectively. Refer to Note 5 for further information favorable leases.

The Company has capital lease obligations primarily related to buildings and equipment. Refer to Note 7 for further details on amounts due related to capital lease obligations.

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2016

STOCKHOLDERS' EQUITY

NOTE 10. STOCKHOLDERS’ EQUITY

Preferred Stock

As of December 31, 2016 and December 26, 2015, there were 1,000,000 shares of $0.01 par value preferred stock authorized; no shares were issued and outstanding.

Treasury Stock

In May 2016, the Company’s Board of Directors authorized a stock repurchase program of up to $100 million of its outstanding common stock. During July 2016, the Board of Directors authorized increasing the share repurchase program to $250 million of its outstanding common stock. The stock repurchase authorization permits the Company to repurchase stock from time-to-time through a combination of open market repurchases, privately negotiated transactions, 10b5-1 trading plans, accelerated stock repurchase transactions and/or other derivative transactions. The authorization extends through the end of 2018 and 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 existing liquidity.

Under the stock repurchase program, the Company purchased approximately 37 million shares at a cost of $132 million. As of December 31, 2016, $118 million remains available for repurchase under the current authorization.

At December 31, 2016, there were 43 million common shares held in treasury. The Company’s Amended Credit Facility includes certain covenants on restricted payments which include common stock repurchases, based on the Company’s liquidity and borrowing availability. The restrictions include the following: the Company may not acquire any equity interests in an aggregate amount exceeding approximately $125 million during any fiscal year provided that; (i) no default or event of default shall have occurred and be continuing, and; (ii) liquidity shall be at least $500 million, including aggregate availability of at least $400 million. There were no repurchases of common stock in 2015. Refer to Note 7 for additional information.

Accumulated Other Comprehensive Income

With the disposition of the OD European Business on December 31, 2016, the CTA balance associated with that business was recognized in earnings. Balances associated with the remaining disposal groups in discontinued operations will be recognized in earrings during the period in which those dispositions are completed. Accumulated other comprehensive income activity, net of tax, where applicable, is provided in the following tables:


(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension			Total
Balance at December 26, 2015	$	108		$	(78	)	$	30
Other comprehensive income (loss) activity before reclassifications		(11	)		30			19
Reclassification of foreign currency translation adjustments realized upon disposal of business ^(a)		(164	)		—			(164	)
Tax impact		—			(14	)		(14	)

Net year-to-date other comprehensive income		(175	)		16			(159	)

Balance at December 31, 2016	$	(67	)	$	(62	)	$	(129	)

^(a)	Amounts in parentheses indicate an increase to earnings.


(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension			Total
Balance at December 27, 2014	$	186		$	(79	)	$	107
Other comprehensive income (loss) activity before reclassifications		(78	)		2			(76	)
Reclassification of foreign currency translation adjustments realized upon disposal of business ^(a)		—			—			—
Tax impact		—			(1	)		(1	)

Net year-to-date other comprehensive income		(78	)		1			(77	)

Balance at December 26, 2015	$	108		$	(78	)	$	30

^(a)	Amounts in parentheses indicate an increase to earnings.

The component balances are net of immaterial tax impacts, where applicable.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
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STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2016

STOCK-BASED COMPENSATION

NOTE 11. STOCK-BASED COMPENSATION

Long-Term Incentive Plans

During 2015, the Company’s Board of Directors adopted, and the shareholders approved, the Office Depot, Inc. 2015 Long-Term Incentive Plan (the “Plan”). The Plan replaces the Office Depot, Inc. 2007 Long-Term Incentive Plan, as amended, and the 2003 OfficeMax Incentive and Performance Plan (both referred to as the “Prior Plans”). No additional awards were granted under the Prior Plans effective April 27, 2015, the effective date of the Plan. The Plan permits the issuance of stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and other equity-based incentive awards. Employee share-based awards are generally issued in the first quarter of the year.

Stock Options

The Company’s stock option exercise price for each grant of a stock option shall not be less than 100% of the fair market value of a share of common stock on the date the option is granted. Options granted under the Prior Plans have vesting periods ranging from one to five years and from one to three years after the date of grant, provided that the individual is continuously employed with the Company. Following the date of grant, all options granted under the Prior Plans expire in no more than ten years. No stock options were granted in 2016, 2015 or 2014.

A summary of the activity in the stock option awards for the last three years is presented below.


	2016					2015					2014
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at beginning of year		5,779,597		$	4.53		8,602,626		$	4.53		22,702,534		$	4.48
Granted		—			—		—			—		—			—
Forfeited		(108,818	)		5.04		(574,967	)		9.29		(1,323,664	)		10.46
Exercised		(1,614,243	)		1.89		(2,248,062	)		3.34		(12,776,244	)		3.83

Outstanding at end of year		4,056,536		$	5.56		5,779,597		$	4.53		8,602,626		$	4.53

The following table summarizes information about stock options outstanding and exercisable at December 31, 2016.


	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price
$0.83—$3.00		183,862		1.71		1.64		183,862		1.71		1.64
3.01—5.12		569,901		1.02		4.34		569,901		1.02		4.34
5.13		183,993		0.43		5.13		183,993		0.43		5.13
5.14—8.00		2,806,280		5.05		5.64		2,806,280		5.05		5.64
8.01—11.27		312,500		0.18		9.64		312,500		0.18		9.64

$0.83—$11.27		4,056,536		3.76		5.56		4,056,536		3.76		5.56

The intrinsic value of options exercised in 2016, 2015 and 2014, was $5 million, $12 million and $27 million, respectively. The aggregate intrinsic value of options outstanding and exercisable at December 31, 2016 was $0.7 million and $0.7 million, respectively.

At December 31, 2016, all outstanding stock options were vested and all related compensation expense had been recognized. The number of exercisable options was 4.1 million and 5.1 million shares of common stock at December 31, 2016 and December 26, 2015, respectively.

Restricted Stock and Restricted Stock Units

In 2016, the Company granted 10.1 million shares of restricted stock and restricted stock units to eligible employees which included 0.4 million shares granted to the Board of Directors. The Board of Directors are granted restricted stock units as part of their annual compensation which vest immediately on the grant date with distribution to occur following their separation from service with the Company. Restricted stock grants to Company employees typically vest annually over a three-year service period. A summary of the status of the Company’s nonvested shares and changes during 2016, 2015 and 2014 is presented below.


	2016					2015					2014
	Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price
Outstanding at beginning of year		9,588,889		$	6.07		10,708,372		$	4.65		10,207,546		$	4.76
Granted		10,099,481			3.53		2,886,640			9.43		5,809,821			4.33
Vested		(3,521,765	)		5.31		(3,370,569	)		4.46		(4,179,789	)		4.75
Forfeited		(3,418,814	)		4.51		(635,554	)		5.94		(1,129,206	)		3.65

Outstanding at end of year		12,747,791		$	4.41		9,588,889		$	6.07		10,708,372		$	4.65

As of December 31, 2016, there was approximately $27 million of total unrecognized compensation cost related to nonvested restricted stock. This expense, net of forfeitures, is expected to be recognized over a weighted-average period of approximately 2 years. Total outstanding shares of 12.7 million include 3.1 million granted to members of the Board of Directors that have vested but will not be issued until separation from service and 9.6 million unvested shares granted to employees. Of the 9.6 million unvested shares at year end, the Company estimates that 9.2 million shares will vest. The total fair value of shares at the time they vested during 2016 was $19 million.

Performance-Based Incentive Program

The Company has a performance-based long-term incentive program consisting of performance stock units. Payouts under this program are based on achievement of certain financial targets set by the Board of Directors and are subject to additional service vesting requirements, generally three years from the grant date.

A summary of the activity in the performance-based long-term incentive program since inception is presented below.


	2016					2015					2014
	Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price
Outstanding at beginning of the year		8,589,114		$	5.95		6,808,964		$	4.43		3,076,292		$	4.45
Granted		9,635,184			3.37		2,745,303			9.45		5,289,047			4.55
Vested		(161,408	)		4.32		(283,244	)		3.98		(1,246,006	)		3.74
Forfeited		(4,320,506	)		5.69		(681,909	)		5.67		(310,369	)		4.16

Outstanding at end of the year		13,742,384			4.66		8,589,114		$	5.95		6,808,964		$	4.43

As of December 31, 2016, there was approximately $29 million of total unrecognized compensation expense related to the performance-based long-term incentive program. This expense, net of forfeitures, is expected to be recognized over a weighted-average period of approximately 1.9 years. Forfeitures in the table above include adjustments to the share impact of anticipated performance achievement. Of the 13.7 million shares outstanding at year end, the Company estimates that 12.9 million shares will vest. The total fair value of shares at the time they vested during 2016 was $0.7 million.

DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2016

EMPLOYEE BENEFIT PLANS

NOTE 12. EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans

Pension and Other Postretirement Benefit Plans — North America

The Company has retirement obligations under OfficeMax’s U.S. pension plans. The Company sponsors these defined benefit pension plans covering certain terminated employees, vested employees, retirees and some active employees. In 2004 or earlier, OfficeMax’s pension plans were closed to new entrants and the benefits of eligible participants were frozen. Under the terms of these plans, the pension benefit for employees was based primarily on the employees’ years of service and benefit plan formulas that varied by plan. The Company’s general funding policy is to make contributions to the plans in amounts that are within the limits of deductibility under current tax regulations, and not less than the minimum contribution required by law.

Additionally, under previous OfficeMax arrangements, the Company has responsibility for sponsoring retiree medical benefit and life insurance plans including plans related to operations in the U.S. and Canada (referred to as “Other Benefits” in the tables below). The type of retiree benefits and the extent of coverage vary based on employee classification, date of retirement, location, and other factors. All of these postretirement medical plans are unfunded. The Company explicitly reserves the right to amend or terminate its retiree medical and life insurance plans at any time, subject only to constraints, if any, imposed by the terms of collective bargaining agreements. Amendment or termination may significantly affect the amount of expense incurred.

Obligations and Funded Status

The following table provides a reconciliation of changes in the projected benefit obligation and the fair value of plans assets, as well as the funded status of the plans to amounts recognized on the Company’s Consolidated Balance Sheets. Pension plans with benefit obligations and accumulated benefit obligations exceed plan assets in all individual plans.


	Pension Benefits						Other Benefits
(In millions)	2016			2015			2016			2015
Changes in projected benefit obligation:
Obligation at beginning of period	$	1,094		$	1,218		$	13		$	17
Service cost		7			3			—			—
Interest cost		45			46			1			1
Actuarial (gain) loss		(8	)		(78	)		—			(2	)
Currency exchange rate change		—			—			—			(2	)
Benefits paid		(138	)		(95	)		(1	)		(1	)

Obligation at end of period	$	1,000		$	1,094		$	13		$	13

Change in plan assets:
Fair value of plan assets at beginning of period	$	922		$	1,039		$	—		$	—
Actual return (loss) on plan assets		84			(30	)		—			—
Employer contribution		2			8			1			1
Benefits paid		(138	)		(95	)		(1	)		(1	)

Fair value of plan assets at end of period		870			922			—			—

Net liability recognized at end of period	$	(130	)	$	(172	)	$	(13	)	$	(13	)

The following table shows the amounts recognized in the Consolidated Balance Sheets related to the Company’s North America defined benefit pension and other postretirement benefit plans as of year-ends:


	Pension Benefits						Other Benefits
(In millions)	2016			2015			2016			2015
Noncurrent assets	$	—		$	—		$	—		$	—
Current liabilities		(2	)		(3	)		(1	)		(1	)
Noncurrent liabilities		(128	)		(169	)		(12	)		(12	)

Net amount recognized	$	(130	)	$	(172	)	$	(13	)	$	(13	)

Components of Net Periodic Cost (Benefit)

The components of net periodic cost (benefit) are as follows:


	Pension Benefits									Other Benefits
(In millions)	2016			2015			2014			2016		2015		2014
Service cost	$	7		$	3		$	3		$	—	$	—	$	—
Interest cost		45			46			52			1		1		1
Expected return on plan assets		(55	)		(56	)		(62	)		—		—		—

Net periodic cost (benefit)	$	(3	)	$	(7	)	$	(7	)	$	1	$	1	$	1

Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) are as follows:


	Pension Benefits								Other Benefits
(In millions)	2016			2015		2014			2016			2015			2014
Accumulated other comprehensive loss (income) at beginning of year	$	76		$	67	$	(26	)	$	(1	)	$	1		$	—
Net loss (gain)		(38	)		9		93			—			(2	)		1

Accumulated other comprehensive loss (income) at end of year	$	38		$	76	$	67		$	(1	)	$	(1	)	$	1

Less than $1 million of the accumulated other comprehensive loss is expected to be recognized as components of net periodic cost during 2017.

Accumulated other comprehensive loss (income) as of year-ends 2016 and 2015 consist of net losses (gains).

Assumptions

The assumptions used in accounting for the Company’s plans are estimates of factors including, among other things, the amount and timing of future benefit payments. The following table presents the key weighted average assumptions used in the measurement of the Company’s benefit obligations as of year-ends:


										Other Benefits
	Pension Benefits									United States									Canada
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Discount rate		4.11	%		4.33	%		3.91	%		3.60	%		3.70	%		3.40	%		3.80	%		4.00	%		4.00%

The following table presents the weighted average assumptions used in the measurement of net periodic benefit:


										Other Benefits
	Pension Benefits									United States									Canada
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Discount rate		4.33	%		3.91	%		4.84	%		3.70	%		3.40	%		4.00	%		4.00	%		4.00	%		4.80%
Expected long-term rate of return on plan assets		6.00	%		5.85	%		6.50	%		—	%		—	%		—	%		—	%		—	%		—%

For pension benefits, the selected discount rates (which is required to be the rates at which the projected benefit obligations could be effectively settled as of the measurement date) are based on the rates of return for a theoretical portfolio of high-grade corporate bonds (rated AA- or better) with cash flows that generally match expected benefit payments in future years. In selecting bonds for this theoretical portfolio, the Company focuses on bonds that match cash flows to benefit payments and limit the concentration of bonds by issuer. To the extent scheduled bond proceeds exceed the estimated benefit payments in a given period; the yield calculation assumes those excess proceeds are reinvested at an assumed forward rate. The implied forward rate used in the bond model is based on the Citigroup Pension Discount Curve as of the last day of the year. The selected discount rate for other benefits is from a discount rate curve matched to the assumed payout of related obligations.

The expected long-term rates of return on plan assets assumptions are based on the weighted average of expected returns for the major asset classes in which the plans’ assets are held. Asset-class expected returns are based on long-term historical returns, inflation expectations, forecasted gross domestic product and earnings growth, as well as other economic factors. The weights assigned to each asset class are based on the Company’s investment strategy. The weighted average expected return on plan assets used in the calculation of net periodic pension cost for 2017 is 5.76%.

Obligation and costs related to the Canadian retiree health plan are impacted by changes in trend rates.

The following table presents the assumed healthcare cost trend rates used in measuring the Company’s postretirement benefit obligations at year-ends:


	2016			2015			2014
Weighted average assumptions as of year-end:
Healthcare cost trend rate assumed for next year		5.90	%		6.20	%		6.40%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.50	%		4.50	%		4.50%
Year that the rate reaches the ultimate trend rate		2022			2022			2022

A 1% change in the assumed healthcare cost trend rates would impact operating income by less than $1 million.

The Company reassessed the mortality assumptions to measure the North American pension and other postretirement benefit plan obligations at year end 2016, adopting the most applicable mortality tables and improvement factors released in 2016 by The Society of Actuaries’ Retirement Plan Experience Committee. As a result of this assumption change, pension and other postretirement benefit plan obligations decreased by $19 million and less than $1 million, respectively. As a result of the mortality assumption change in 2015, pension and other postretirement benefit plan obligations decreased by $25 million and less than $1 million, respectively.

Plan Assets

The allocation of pension plan assets by category at year-ends is as follows:


	2016			2015
Money market funds		3	%		2%
Equity securities		11			9
Fixed-income securities		50			57
Mutual funds		36			31
Other		—			1

		100	%		100%

The Employee Benefit Committee is responsible for establishing and overseeing the implementation of the investment policy for the Company’s pension plans. The investment policy is structured to optimize growth of the pension plan trust assets, while minimizing the risk of significant losses, in order to enable the plans to satisfy their benefit payment obligations over time. The Company uses benefit payments and Company contributions as its primary rebalancing mechanisms to maintain the asset class exposures within the guideline ranges established under the investment policy.

The current asset allocation guidelines set forth an U.S. equity range of 13% to 23%, an international equity range of 8% to 18%, a global equity range of 5% to 15% and a fixed-income range of 53% to 63%. Asset-class positions within the ranges are continually evaluated and adjusted based on expectations for future returns, the funded position of the plans and market risks. Occasionally, the Company may utilize futures or other financial instruments to alter the pension trust’s exposure to various asset classes in a lower-cost manner than trading securities in the underlying portfolios.

Generally, quoted market prices are used to value pension plan assets. Equities, some fixed-income securities, publicly traded investment funds, and U.S. government obligations are valued by reference to published market prices. Investments in certain restricted stocks are valued at the quoted market price of the issuer’s unrestricted common stock less an appropriate discount. If a quoted market price for unrestricted common stock of the issuer is not available, restricted common stocks are valued at a multiple of current earnings less an appropriate discount. The multiple chosen is consistent with multiples of similar companies based on current market prices.

The following table presents the pension plan assets by level within the fair value hierarchy at year-ends.


(In millions)			Fair Value Measurements 2016
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds	$	25	$	—	$	25	$	—
Equity securities
U.S. large-cap		29		29		—		—
U.S. small and mid-cap		4		4		—		—
International		60		60		—		—

Total equity securities		93		93		—		—

Fixed-income securities
Corporate bonds		407		—		407		—
Government securities		14		—		14		—
Other fixed-income		16		—		16		—

Total fixed-income securities		437		—		437		—

Other
Mutual funds		312		—		312		—
Other, including plan receivables and payables		3		3		—		—

Total other		315		3		312		—

	$	870	$	96	$	774	$	—


			Fair Value Measurements 2015
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds	$	19	$	—	$	19	$	—
Equity securities
U.S. large-cap		25		25		—		—
U.S. small and mid-cap		4		4		—		—
International		58		58		—		—

Total equity securities		87		87		—		—

Fixed-income securities
Corporate bonds		485		—		485		—
Government securities		10		—		10		—
Other fixed-income		24		—		24		—

Total fixed-income securities		519		—		519		—

Other
Equity mutual funds		290		—		290		—
Other, including plan receivables and payables		7		7		—		—

Total other		297		7		290		—

	$	922	$	94	$	828	$	—

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Cash Flows

Pension plan contributions include required statutory minimum amounts and, in some years, additional discretionary amounts. In 2016, the Company contributed $3 million to these pension plans. Pension contributions for the full year of 2017 are estimated to be $3 million. The Company may elect at any time to make additional voluntary contributions.

Qualified pension benefit payments are paid from the assets held in the plan trust, while nonqualified pension and other benefit payments are paid by the Company. Anticipated benefit payments by year are as follows:


(in millions)	Pension Benefits		Other Benefits
2017	$	87	$	1
2018		85		1
2019		82		1
2020		80		1
2021		77		1
Next five years		346		4

Pension Plan — UK

The Company has a frozen defined benefit pension plan covering a limited number of employees in the United Kingdom. As part of the disposition of the OD European Business in 2016, the Company retained responsibility for this plan. The European entity contributed GBP 20 million to the plan prior to the transfer.

Obligations and Funded Status

The following table provides a reconciliation of changes in the projected benefit obligation, the fair value of plan assets and the funded status of the plan to amounts recognized on the Company’s Consolidated Balance Sheets.


(In millions)	2016			2015
Changes in projected benefit obligation:
Obligation at beginning of period	$	210		$	239
Service cost		—			—
Interest cost		7			9
Benefits paid		(6	)		(7	)
Actuarial (gain) loss		59			(20	)
Currency translation		(40	)		(11	)

Obligation at end of period		230			210

Changes in plan assets:
Fair value of plan assets at beginning of period		240			257
Actual return on plan assets		62			2
Company contributions		29			—
Benefits paid		(6	)		(7	)
Currency translation		(47	)		(12	)

Fair value of plan assets at end of period		278			240

Net asset recognized at end of period	$	48		$	30

In the Consolidated Balance Sheets, the net funded amounts are classified as a non-current asset in the caption Other assets.

Components of Net Periodic Benefit

The components of net periodic benefit are presented below:


(In millions)	2016			2015			2014
Service cost	$	—		$	—		$	—
Interest cost		7			9			10
Expected return on plan assets		(10	)		(14	)		(14	)

Net periodic pension benefit	$	(3	)	$	(5	)	$	(4	)

Included in Accumulated other comprehensive income were deferred losses of $1 million in 2016 and deferred gains of $7 million in 2015. The deferred loss is not expected to be amortized into income during 2017.

Assumptions

Assumptions used in calculating the funded status and net periodic benefit included:


	2016			2015			2014
Expected long-term rate of return on plan assets		4.07	%		4.78	%		5.55%
Discount rate		2.70	%		3.90	%		3.80%
Inflation		3.20	%		3.00	%		3.10%

The long-term rate of return on assets assumption has been derived based on long-term UK government fixed income yields, having regard to the proportion of assets in each asset class. The funds invested in equities have been assumed to return 4.0% above the return on UK government securities of appropriate duration. A return equal to a 15 year AA bond index is assumed for funds invested in corporate bonds. Allowance is made for expenses of 0.5% of assets.

Plan Assets

The allocation of Plan assets is as follows:


	2016			2015
Cash		9	%		—%
Equity securities		21	%		50%
Fixed-income securities		70	%		50%

Total		100	%		100%

A committee, comprised of representatives of the Company and of this plan, is responsible for establishing and overseeing the implementation of the investment policy for this plan. The plan’s investment policy and strategy are to ensure assets are available to meet the obligations to the beneficiaries and to adjust plan contributions accordingly. The plan trustees are also committed to reducing the level of risk in the plan over the long term, while retaining a return above that of the growth of liabilities. The investment strategy is based on plan funding levels, which determine the asset target allocation into matching or growth investments. Matching investments are intended to provide a return similar to the increase in the plan liabilities. Growth investments are assets intended to provide a return in excess of the increase in liabilities. At December 31, 2016, the asset target allocation was in accordance with the investment strategy. Asset-class allocations within the ranges are continually evaluated and adjusted based on expectations for future returns, the funded position of the plan and market risks.

The following table presents the pension plan assets by level within the fair value hierarchy.


(In millions)			Fair Value Measurements 2016
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	25	$	25	$	—	$	—
Equity securities
Developed market equity funds		19		19		—		—
Emerging market equity funds		7		7		—		—
Mutual funds real estate		7		—		—		7
Mutual funds		27		—		27		—

Total equity securities		60		26		27		7

Fixed-income securities
UK debt funds		62		—		62		—
Liability term matching debt funds		109		—		109		—
Emerging market debt fund		2		—		2		—
High yield debt		20		—		20		—

Total fixed-income securities		193		—		193		—

Total	$	278	$	51	$	220	$	7


(In millions)			Fair Value Measurements 2015
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	—	$	—	$	—	$	—
Equity securities
Developed market equity funds		70		70		—		—
Emerging market equity funds		15		15		—		—
Mutual funds real estate		8		—		—		8
Mutual funds		27		—		27		—

Total equity securities		120		85		27		8

Fixed-income securities
UK debt funds		25		—		25		—
Liability term matching debt funds		71		—		71		—
Emerging market debt fund		8		—		8		—
High yield debt		16		—		16		—

Total fixed-income securities		120		—		120		—

Total	$	240	$	85	$	147	$	8

The following is a reconciliation of the change in fair value of the pension plan assets calculated based on Level 3 inputs; during 2016, there was no change in the fair value of the pension plan assets or transfers of assets valued based on Level 3 inputs.


(In millions)	Total
Balance at December 26, 2015	$	8
Currency translation		(1	)

Balance at December 31, 2016	$	7

Cash Flows

Anticipated benefit payments for the European pension plan, at 2016 year-end exchange rates, are as follows:


(In millions)	Benefit Payments
2017	$	6
2018		6
2019		6
2020		7
2021		7
Next five years		36

Retirement Savings Plans

The Company also sponsors defined contribution plans for most of its employees. Eligible Company employees may participate in the Office Depot, Inc. Retirement Savings Plans (a plan for U.S. employees and a plan for Puerto Rico employees). All of the Company’s defined contribution plans (the “401(k) Plans”) allow eligible employees to contribute a percentage of their salary, commissions and bonuses in accordance with plan limitations and provisions of Section 401(k) of the Internal Revenue Code and the Company makes partial matching contributions to each plan subject to the limits of the respective 401(k) Plans. Matching contributions are invested in the same manner as the participants’ pre-tax contributions. The 401(k) Plans also allow for a discretionary matching contribution in addition to the normal match contributions if approved by the Board of Directors.

Office Depot and OfficeMax previously sponsored non-qualified deferred compensation plans that allowed certain employees, who were limited in the amount they could contribute to their respective 401(k) plans, to defer a portion of their earnings and receive a Company matching amount. Both plans are closed to new contributions.

During 2016, 2015 and 2014, $20 million, $20 million and $14 million, respectively, were recorded as compensation expense for the Company’s contributions to these plans.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2016

EARNINGS PER SHARE

NOTE 13. EARNINGS PER SHARE

The following table presents the calculation of net earnings (loss) per common share — basic and diluted:


(In millions, except per share amounts)	2016			2015			2014
Basic Earnings Per Share
Numerator:
Net income (loss) from continuing operations	$	679		$	92		$	(293	)
Loss from discontinued operations, net of tax		(150	)		(84	)		(59	)
Less: Results attributable to the noncontrolling interests		—			—			2

Net income (loss) to Office Depot, Inc.	$	529		$	8		$	(354	)

Denominator:
Weighted-average shares outstanding		539			547			535
Basic earnings (loss) per share:
Continuing operations	$	1.26		$	0.17		$	(0.55	)
Discontinued operations		(0.28	)		(0.15	)		(0.11	)

Net earnings (loss)	$	0.98		$	0.01		$	(0.66	)

Diluted Earnings Per Share
Numerator:
Net income (loss) from continuing operations	$	679		$	92		$	(293	)
Loss from discontinued operations, net of tax		(150	)		(84	)		(59	)
Less: Results attributable to the noncontrolling interests		—			—			2

Net income (loss) to Office Depot, Inc.	$	529		$	8		$	(354	)

Denominator:
Weighted-average shares outstanding		539			547			535
Effect of dilutive securities:
Stock options and restricted stock		10			8			—

Diluted weighted-average shares outstanding		549			555			535
Diluted earnings (loss) per share
Continuing operations	$	1.24		$	0.16		$	(0.55	)
Discontinued operations		(0.27	)		(0.15	)		(0.11	)

Net earnings (loss)	$	0.96		$	0.01		$	(0.66	)

Potentially dilutive stock options and restricted stock of 8 million shares were excluded from the diluted loss per share calculation in 2014 because of the net loss in the periods.

Awards of options and nonvested shares representing an additional 6 million, 4 million and 9 million shares of common stock were outstanding for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, respectively, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive.

DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2016

NOTE 14. DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Derivative Instruments and Hedging Activities

As a global supplier of office products and services the Company is exposed to risks associated with changes in foreign currency exchange rates, fuel and other commodity prices and interest rates. Depending on the exposure, settlement timeframe and other factors, the Company may enter into derivative transactions to mitigate those risks. Financial instruments authorized under the Company’s established risk management policy include spot trades, swaps, options, caps, collars, forwards and futures. Use of derivative financial instruments for speculative purposes is expressly prohibited by the Company’s policies. The Company may designate and account for such qualifying arrangements as hedges or reflect current mark-to-market impacts of non-qualifying economic hedge arrangements currently in earnings. As of December 31, 2016, the foreign exchange contracts extend through December 2017 and fuel contracts extended through January 2017.

The fair values of the Company’s foreign currency contracts and fuel contracts are the amounts receivable or payable to terminate the agreements at the reporting date, taking into account current interest rates, exchange rates and commodity prices. The values are based on market-based inputs or unobservable inputs that are corroborated by market data. Amounts associated with derivative instruments were not significant. At December 31, 2016 and December 26, 2015, Accrued expenses and other liabilities in the Consolidated Balance Sheets included less than $1 million and $2 million related to derivative fuel contracts. The Company’s foreign currency risk will be substantially reduced upon completion of the sale of the discontinued operations.

Financial Instruments

The following table presents information about financial instruments at the balance sheet dates indicated.


	2016				2015
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Timber notes receivable	$	885	$	884	$	905	$	909
Company-owned life insurance		89		89		88		88
Financial liabilities:
Recourse debt:
9.75% Senior Secured Notes, due 2019		—		—		250		265
7.35% debentures, due 2016		—		—		18		18
Revenue bonds, due in varying amounts periodically through 2029		186		181		186		186
American & Foreign Power Company, Inc. 5% debentures, due 2030		14		12		14		13
Non-recourse debt		798		800		819		825

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

•

Timber notes receivable: Fair value is determined as the present value of expected future cash flows discounted at the current interest rate for loans of similar terms with comparable credit risk (Level 2 measure).

•

Company-owned life insurance: The fair value of the company-owned life insurance policies is derived using determinable net cash surrender value (Level 2 measure).

•

Recourse debt: Recourse 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).

•

Non-recourse debt: Fair value is estimated by discounting the future cash flows of the instrument at rates currently available to the Company for similar instruments of comparable maturities (Level 2 measure).

Fair Value Estimates Used in Impairment Analyses

All impairment charges discussed in the sections below are presented in Asset impairments in the Consolidated Statements of Operations.

Retail Stores

Because of declining sales in recent periods and adoption of the Real Estate Strategy in 2014 and the Comprehensive Business Review in 2016, the Company has conducted a detailed store impairment analysis multiple times each year. The analysis uses input from retail store operations and the Company’s accounting and finance personnel that organizationally report to the chief financial officer. These Level 3 projections are based on management’s estimates of store-level sales, gross margins, direct expenses, exercise of future lease renewal options where applicable, and resulting cash flows and, by their nature, include judgments about how current initiatives will impact future performance. If the anticipated cash flows of a store cannot support the carrying value of its assets, the assets are impaired and written down to estimated fair value using Level 3 measure. The Company recognized store asset impairment charges of $8 million, $12 million and $26 million in 2016, 2015 and 2014, respectively.

The projections prepared for the 2016 analysis assumed declining sales over the forecast period. Gross margin and operating cost assumptions have been held at levels consistent with recent actual results and planned activities. Estimated cash flows were discounted at 13% in 2016, 12% in 2015 and 13% in 2014. The impairment charges include amounts to bring the location’s assets to estimated fair value based on projected operating cash flows or residual value, as appropriate. Assets added to previously impaired locations, whether for Division-wide enhancements or specific location betterments, are capitalized and subsequently tested for impairment. For the fourth quarter 2016 calculation, a 100 basis point decrease in next year sales combined with a 50 basis point decrease in next year gross margin would have increased the impairment by approximately $2 million. Further, a 100 basis point decrease in sales for all future periods would increase the impairment by $5 million.

The Company will continue to evaluate initiatives to improve performance and lower operating costs. 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 2015, the impairment analysis reflects the Company’s best estimate of future performance.

Intangible Assets

Definite-lived intangible assets — Following identification of retail stores for closure as part of the Real Estate Strategy and Comprehensive Business Review, the related favorable lease assets were assessed for accelerated amortization or impairment. Considerations included the Level 3 projected cash flows discussed above, the net book value of operating assets and favorable lease assets and likely sublease over the option period after closure or return of property to landlords. Impairment charges of $7 million, $1 million and $5 million were recognized during 2016, 2015 and 2014, respectively.

Asset impairment charges for 2014 include $25 million resulting from a decision to convert certain websites to a common platform and to write off capitalized software following certain information technology platform decisions related to the Merger.

Indefinite-lived intangible assets — Goodwill associated with the Merger has been allocated to the reporting units for the purposes of the annual goodwill impairment test. The estimated fair values of the reporting units in continuing operations at the 2016 test date were substantially in excess of their carrying values.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2016

COMMITMENTS AND CONTINGENCIES

NOTE 15. COMMITMENTS AND CONTINGENCIES

Commitments

On June 25, 2011, OfficeMax, with which the Company merged in November 2013, entered into a paper supply contract with Boise White Paper, L.L.C. (“Boise Paper”), under which OfficeMax agreed to purchase office papers from Boise Paper, and Boise Paper has agreed to supply office paper to OfficeMax, subject to the terms and conditions of the paper supply contract. The paper supply contract replaced the previous supply contract executed in 2004 with Boise Paper. The Company assumed the commitment under a paper supply contract to buy OfficeMax’s North American requirements for office paper, subject to certain conditions, including conditions under which the Company may purchase paper from paper producers other than Boise Paper. The paper supply contract’s term will expire on December 31, 2017, followed by a gradual reduction of the Company’s purchase requirements over a two year period thereafter. However, if certain circumstances occur, the agreement may be terminated earlier. If terminated, it will be followed by a gradual reduction of the Company’s purchase requirements over a two year period. Purchases under the agreement were $585 million in 2016, $612 million in 2015 and $647 million in 2014.

Indemnifications

Indemnification obligations may arise from the Asset Purchase Agreement between OfficeMax Incorporated, OfficeMax Southern Company, Minidoka Paper Company, Forest Products Holdings, L.L.C. and Boise Land & Timber Corp. The Company has agreed to provide indemnification with respect to a variety of obligations. These indemnification obligations are subject, in some cases, to survival periods, deductibles and caps. At December 31, 2016, the Company is not aware of any material liabilities arising from these indemnifications.

Legal Matters

The Company is involved in litigation arising in the normal course of business. While, from time to time, claims are asserted that make demands for a large sum of money (including, from time to time, actions which are asserted to be maintainable as class action suits), the Company does not believe that contingent liabilities related to these matters (including the matters discussed below), either individually or in the aggregate, will materially affect the Company’s financial position, results of operations or cash flows.

In addition, in the ordinary course of business, sales to and transactions with government customers may be subject to lawsuits, investigations, audits and review by governmental authorities and regulatory agencies, with which the Company cooperates. Many of these lawsuits, investigations, audits and reviews are resolved without material impact to the Company. While claims in these matters may at times assert large demands, the Company does not believe that contingent liabilities related to these matters, either individually or in the aggregate, will materially affect its financial position, results of operations or cash flows.

In addition to the foregoing, OfficeMax is named a defendant in a number of lawsuits, claims, and proceedings arising out of the operation of certain paper and forest products assets prior to those assets being sold in 2004, for which OfficeMax agreed to retain responsibility. Also, as part of that sale, OfficeMax agreed to retain responsibility for all pending or threatened proceedings and future proceedings alleging asbestos-related injuries arising out of the operation of the paper and forest products assets prior to the closing of the sale. The Company has made provision for losses with respect to the pending proceedings. Additionally, as of December 31, 2016, the Company has made provision for environmental liabilities with respect to certain sites where hazardous substances or other contaminants are or may be located. For these environmental liabilities, our estimated range of reasonably possible losses was approximately $10 million to $25 million. The Company regularly monitors its estimated exposure to these liabilities. As additional information becomes known, these estimates may change, however, the Company does not believe any of these OfficeMax retained proceedings are material to the Company’s financial position, results of operations or cash flows

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

SEGMENT INFORMATION

NOTE 16. SEGMENT INFORMATION

Following the application of discontinued operations accounting for substantially all of the businesses formerly presented as the International Division, the Company has two reportable segments: North American Retail Division and North American Business Solutions Division. The North American Retail Division includes retail stores in the United States, including Puerto Rico and the U.S. Virgin Islands, which offer office supplies, technology products and solutions, business machines and related supplies, facilities products, and office furniture. Most stores also have a copy and print center offering printing, reproduction, mailing and shipping. The North American Business Solutions Division sells office supply products and services throughout North America, including the United States, Puerto Rico, the U.S. Virgin Islands and Canada. North American Business Solutions Division customers are served through dedicated sales forces, through catalogs, telesales, and electronically through its internet sites.

The retained operations previously included in the International Division are not significant at December 31, 2016 and have been presented as Other, pending management assessment of the future of this business and how it will be managed.

The office supply products and services offered across all operating segments are similar. The Company’s two operating segments are the two reportable segments. The North American Retail Division and North American Business Solutions Division are managed separately, primarily because of the way customers are reached and served. Due to the sale of the Company’s interest in Grupo OfficeMax in August 2014, the joint venture’s results have been reported as the Corporate level to align with how this information was presented for management reporting. The accounting policies for each segment are the same as those described in Note 1. 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, Merger, restructuring and other operating (income) expenses, net, and Legal accrual, 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.

A summary of significant accounts and balances by segment, reconciled to consolidated totals, after the elimination of discontinued operations for all periods is as follows.


(In millions)		North American Retail		North American Business Solutions		Other		Corporate, Eliminations, and Discontinued Operations*		Consolidated Total
Sales	2016	$	5,603	$	5,400	$	18	$	—	$	11,021
	2015		6,004		5,708		15		—		11,727
	2014		6,528		6,013		14		155		12,710
Division operating income	2016		299		265		1		—		565
	2015		310		226		3		—		539
	2014		126		232		1		—		359
Capital expenditures	2016		58		42		—		11		111
	2015		56		70		—		18		144
	2014		44		29		—		23		96
Depreciation and amortization	2016		90		69		—		22		181
	2015		130		82		—		41		253
	2014		140		85		—		52		277
Charges for losses on receivables and inventories	2016		58		20		—		—		78
	2015		42		11		—		—		53
	2014		48		4		—		—		52
Assets	2016		1,542		1,713		4		2,281		5,540
	2015		1,625		1,607		4		3,206		6,442
	2014		1,736		1,687		4		3,330		6,757

Amounts included in “Corporate, Eliminations, and Discontinued Operations” consist of (i) assets (including all cash and cash equivalents) and depreciation related to corporate activities of continuing operations, (ii) assets of discontinued operations amounting to $142 million, $1.1 billion and $1.2 billion for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, respectively, and (iii) accounts and balances associated with Grupo OfficeMax prior to disposition.

A reconciliation of the measure of Division operating income to Consolidated income (loss) from continuing operations before income taxes is as follows:


(In millions)	2016			2015			2014
Division operating income	$	565		$	539		$	359
Add/(subtract):
Other operating income (loss)		—			—			8
Asset impairments		(15	)		(13	)		(56	)
Merger, restructuring, and other operating income (expenses), net		80			(242	)		(334	)
Legal accrual		—			—			(81	)
Unallocated expenses		(99	)		(101	)		(124	)
Interest income		22			22			22
Interest expense		(80	)		(91	)		(87	)
Loss on extinguishment of debt		(15	)		—			—
Other income (expense), net		1			1			2

Income (loss) from continuing operations before income taxes	$	459		$	115		$	(291	)

There is no single customer that accounts for 10% or more of the Company’s total sales.

The Company classifies products into three broad categories: (1) supplies, (2) technology, and (3) furniture and other. The supplies category includes products such as paper, writing instruments, office supplies, cleaning and breakroom items. The technology category includes products such as toner and ink, computers, tablets and accessories, printers, electronic storage, as well as services for technology products. The furniture and other category includes products such as desks, seating, and luggage, as well as sales in our copy and print centers.

Total Company sales by product category were as follows:


	2016		2015		2014
Supplies		45.2%		44.4%		43.6%
Technology		38.9%		40.2%		41.2%
Furniture and other		15.9%		15.4%		15.2%

		100.0%		100.0%		100.0%

As of December 31, 2016, goodwill totaled $363 million, of which $78 million was recorded in the North American Retail Division and $285 million in the North American Solutions Division.

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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Estimates and Assumptions

QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 31, 2016

QUARTERLY FINANCIAL DATA

NOTE 17. QUARTERLY FINANCIAL DATA (UNAUDITED)


(In millions, except per share amounts)	First Quarter			Second Quarter			Third Quarter⁽³⁾			Fourth Quarter
Fiscal Year Ended December 31, 2016*
Net sales	$	2,876		$	2,583		$	2,836		$	2,725
Gross profit		715			613			726			653
Operating income		85			271			117			57
Net income from continuing operations⁽¹⁾		62			232			330			55
Discontinued operations, net of tax		(16	)		(22	)		(137	)		25
Net income (loss)		46			210			193			80
Basic earnings (loss) per share⁽²⁾
Continuing operations	$	0.11		$	0.42		$	0.62		$	0.11
Discontinued operations	$	(0.03	)	$	(0.04	)	$	(0.26	)	$	0.05

Basic earnings per share	$	0.08		$	0.38		$	0.36		$	0.15
Diluted earnings (loss) per share⁽²⁾
Continuing operations	$	0.11		$	0.41		$	0.61		$	0.10
Discontinued operations	$	(0.03	)	$	(0.04	)	$	(0.25	)	$	0.05

Diluted earnings per share	$	0.08		$	0.38		$	0.35		$	0.15

*	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The first quarter and second quarter amounts reflect application of discontinued operations accounting that was effective in the third quarter.

⁽¹⁾

In the first, second, third and fourth quarters of 2016, captions include pre-tax Merger, restructuring, and other operating expenses, net totaling $40 million, $(193) million, $31 million and $43 million, respectively, and asset impairments of $0 million, $0 million, $9 million and $6 million, respectively. The second quarter of 2016 Merger, restructuring and other operating expenses, net includes $250 million Termination Fee received pursuant to termination of the Staples Merger Agreement. The third quarter and fourth quarters include non-cash tax benefits of approximately $240 million and $140 million, respectively, from the release of valuation allowances on deferred tax assets.

⁽²⁾	The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding.

⁽³⁾

The amounts in the table above for the third quarter 2016 are as corrected to adjust for an error that was not material to the overall presentation. When the Company committed to a plan to sell substantially all of the business formerly reported as the International Division, it provided reference to the cumulative translation adjustment (“CTA”) balance that existed at the end of the third quarter 2016, but did not include CTA in its impairment analysis. As a result, the loss amount of Discontinued operations, net of tax was overstated. The measurement has been corrected for the full year 2016 amounts. This correcting adjustment is provided below and would impact the same captioned line items in various portions of the third quarter financial statements by the same amount, as well as the current assets of discontinued operations, accumulated deficit and totals including those accounts.


	Third Quarter 2016								Year-to-Date Third Quarter 2016
($ in Millions, except per share)	As Reported			Adjustment		As Corrected			As Reported			Adjustment		As Corrected
Discontinued operations, net of tax	$	(286	)	$	149	$	(137	)	$	(324	)	$	149	$	(175	)
Net income (loss)	$	44		$	149	$	193		$	300		$	149	$	449

Basic earnings (loss) per share
Discontinued operations	$	(0.54	)	$	0.28	$	(0.26	)	$	(0.60	)	$	0.28	$	(0.32	)

Net earnings (loss)	$	0.08		$	0.28	$	0.36		$	0.55		$	0.27	$	0.82

Diluted earnings per share
Discontinued operations	$	(0.54	)	$	0.29	$	(0.25	)	$	(0.60	)	$	0.28	$	(0.32	)

Net earnings (loss)	$	0.08		$	0.27	$	0.35		$	0.54		$	0.27	$	0.81


(In millions, except per share amounts)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Fiscal Year Ended December 26, 2015*
Net sales	$	3,131		$	2,784		$	3,046		$	2,767
Gross profit		761			659			787			656
Operating income (loss)		88			(27	)		81			42
Net income (loss) from continuing operations⁽¹⁾		49			(31	)		42			31
Discontinued operations, net of tax		(4	)		(27	)		(36	)		(16	)
Net income (loss)⁽¹⁾		45			(58	)		6			15
Basic earnings (loss) per share⁽²⁾
Continuing operations	$	0.09		$	(0.06	)	$	0.08		$	0.06
Discontinued operations	$	(0.01	)	$	(0.05	)	$	(0.07	)	$	(0.03	)

Basic earnings per share	$	0.08		$	(0.11	)	$	0.01		$	0.03
Diluted earnings (loss) per share⁽²⁾
Continuing operations	$	0.09		$	(0.06	)	$	0.08		$	0.06
Discontinued operations	$	(0.01	)	$	(0.05	)	$	(0.07	)	$	(0.03	)

Diluted earnings per share	$	0.08		$	(0.11	)	$	0.01		$	0.03

*	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The amounts reflect application of discontinued operations accounting.

⁽¹⁾

In the first, second, third and fourth quarters of 2015, captions include pre-tax Merger, restructuring, and other operating expenses, net totaling $29 million, $96 million, $79 million and $38 million, respectively, and asset impairments of $5 million, $4 million, $1 million and $3 million, respectively.

⁽²⁾	The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2016

Nature of Business

Nature of Business: Office Depot, Inc. including consolidated subsidiaries (“Office Depot” or the “Company”) is a global supplier of office products and services. The Company currently operates under several banners, including Office Depot^® and OfficeMax^® and utilizes several proprietary company and product brand names. The Company’s common stock is traded on the NASDAQ Global Select Market under the ticker symbol ODP. Office Depot currently operates through wholly-owned entities and participates in other ventures and alliances. The Company’s corporate headquarters is located in Boca Raton, FL, and the Company’s primary website is www.officedepot.com.

On November 5, 2013, the Company merged with OfficeMax Incorporated (“OfficeMax”); refer to Note 2 for additional discussion of this merger (the “Merger”).

Basis of Presentation

Fiscal Year

Discontinued Operations

Foreign Currency

Cash and Cash Equivalents

Receivables

Inventories

Income Taxes

Property and Equipment

Goodwill and Other Intangible Assets

Impairment of Long-Lived Assets

Facility Closure and Severance Costs

Accrued Expenses

Fair Value of Financial Instruments


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 own estimates and assumptions or those expected to be used by market participants.

Revenue Recognition

Cost of Goods Sold and Occupancy Costs

Cost of Goods Sold and Occupancy Costs: Cost of goods sold and occupancy costs include:

inventory costs (as discussed above);

outbound freight;

employee and non-employee receiving, distribution, and occupancy costs (rent), including real estate taxes and common area costs, of inventory-holding and selling locations; and

identifiable employee-related costs associated with services provided to customers.

Selling, General and Administrative Expenses

Selling, General and Administrative Expenses: Selling, general and administrative expenses include amounts incurred related to expenses of operating and support functions, including:

employee payroll and benefits, including variable pay arrangements;

advertising;

store and field support;

other operating costs incurred relating to selling activities; and

closed defined benefit pension and postretirement plans.

Merger, Restructuring, and Other Operating (Income) Expenses, net

Merger, restructuring, and other operating (income) expenses, net are not included in the measure of Division operating income. Refer to Note 2 for additional information.

Advertising

Share-Based Compensation

Self-insurance

Vendor Arrangements

Pension and Other Postretirement Benefits

Environmental and Asbestos Matters

Acquisitions

Leasing Arrangements

Derivative Instruments and Hedging Activities

New Accounting Standards

In February 2016, the FASB issued an accounting standards update which will require lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The accounting treatment for lessors will remain relatively unchanged. The accounting standards update also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Lessees and lessors are required to use a modified retrospective transition method for existing leases and accordingly, apply the new accounting model for the earliest year presented in the financial statements. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements but anticipates it will result in significant right of use assets and related liabilities associated with our operating leases. Substantially all of the Company’s retail store locations and supply chain facilities are subject to operating lease arrangements. Refer to Note 7 for existing capital lease balances and Note 9 for the undiscounted amount of non-cancelable minimum lease payments of operating leases that will be subjected to this new accounting standard. The Company currently anticipates adopting the standard in the first quarter of 2019.

MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Major Components of Merger, Restructuring and Other Operating (Income) Expenses, Net

The table below summarizes the major components of Merger, restructuring and other operating (income) expenses, net.


(In millions)	2016			2015		2014
Merger expenses:
Severance, retention, and relocation	$	—		$	15	$	148
Transaction and integration		37			81		124
Facility closure, contract termination, and other expenses, net		27			44		62

Total Merger related expenses		64			140		334

Staples Acquisition (income) expenses:
Retention		15			65		—
Transaction		43			37		—
Termination Fee		(250	)		—		—

Total Staples Acquisition (income) expenses		(192	)		102		—

Comprehensive Business Review expenses:
Severance		22			—		—
Facility closure, contract termination, professional fees and other expenses, net		26			—		—

Total Comprehensive Business Review expenses		48			—		—

Total Merger, restructuring and other operating (income) expenses, net	$	(80	)	$	242	$	334

Facility Closure and Severance Costs

These charges are excluded from the table below because they are expensed as incurred, non-cash, or otherwise not associated with the merger and restructuring balance sheet accounts.


(In millions)	Beginning Balance		Charges Incurred			Cash Payments			Lease Accretion and Other Adjustments			Ending Balance
2016
Termination benefits:
Merger-related accruals	$	16	$	—		$	(9	)	$	(2	)	$	5
Comprehensive Business Review		—		19			(11	)		—			8
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		77		22			(62	)		3			40
Comprehensive Business Review		—		19			(6	)		—			13
Other restructuring accruals		14		(2	)		(8	)		1			5
Acquired entity accruals		25		(3	)		(7	)		3			18
Staples acquisition related accruals		64		15			(79	)		—			—

Total	$	196	$	70		$	(182	)	$	5		$	89

2015
Termination benefits:
Merger-related accruals	$	31	$	16		$	(31	)	$	—		$	16
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		71		76			(70	)		—			77
Other restructuring accruals		23		(1	)		(10	)		2			14
Acquired entity accruals		36		3			(15	)		1			25
Staples acquisition related accruals		—		64			—			—			64

Total merger and restructuring accruals	$	161	$	158		$	(126	)	$	3		$	196

DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2016

Major Component of Discontinued Operations-Net of Tax, Assets and Liabilities of Discontinued Operations


(In millions)	2016			2015			2014
Sales	$	2,564		$	2,758		$	3,386
Cost of goods sold and occupancy costs		2,019			2,119			2,586
Operating expenses		573			617			746
Asset impairments		90			—			32
Restructuring charges		11			90			69
Interest income		1			2			2
Interest expense		(5	)		(2	)		(2	)
Other income (expense), net		(2	)		—			(2	)
Loss on sale or held for sale classification		(223	)		—			—
Income tax expense (benefit)		(208	)		16			10

Discontinued operations, net of tax	$	(150	)	$	(84	)	$	(59	)


(In millions)	2016			2015
Assets
Cash and cash equivalents	$	44		$	209
Receivables, net		88			420
Inventories		82			292
Prepaid expenses and other current assets		4			35
Property and equipment, net		31			—
Other assets		6			—
Valuation allowance		(113	)		—

Current assets of discontinued operations	$	142		$	956

Property and equipment, net	$	—		$	119
Goodwill		—			15
Other assets		—			48

Non-current assets of discontinued operations	$	—		$	182

Liabilities
Trade accounts payable	$	60		$	331
Accrued expenses and other current liabilities		27			282
Income taxes payable		2			4
Short-term borrowings and current maturities of long-term debt		9			5
Deferred income taxes and other long-term liabilities		6			—

Current liabilities of discontinued operations	$	104		$	622

Deferred income taxes and other long-term liabilities	$	—		$	40
Long-term debt, net of current maturities		—			6

Non-current liabilities of discontinued operations	$	—		$	46

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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Schedule of Property and Equipment

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2016

Property and equipment consists of:


(In millions)	December 31, 2016			December 26, 2015
Land	$	46		$	50
Buildings		279			284
Leasehold improvements		685			695
Furniture, fixtures and equipment		1,155			1,099

		2,165			2,128
Less accumulated depreciation		(1,564	)		(1,463	)

Total	$	601		$	665

Schedule of Assets Held under Capital Leases

The above table of property and equipment includes assets held under capital leases as follows:


(In millions)	December 31, 2016			December 26, 2015
Buildings	$	191		$	192
Furniture, fixtures and equipment		85			80

		276			272
Less accumulated depreciation		(165	)		(141	)

Total	$	111		$	131

Other assets held for sale

The assets held for sale activity in 2016 is presented in the table below.


(In millions)
Balance as of December 26, 2015	$	30
Additions		6
Dispositions		(13	)

Balance as of December 31, 2016	$	23

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2016

Estimated Future Amortization Expense for Intangible Assets

Estimated future amortization expense for the intangible assets is as follows:


(In millions)
2017	$	7
2018		5
2019		4
2020		4
2021		4
Thereafter		9

Total	$	33

Schedule of Goodwill by Segment

The components of goodwill by segment are provided in the following table:


(In millions)	North American Retail Division		North American Business Solutions Division		Corporate		Total
Balance as of December 26, 2015	$	78	$	285	$	—	$	363

Balance as of December 31, 2016	$	78	$	285	$	—	$	363

Schedule of Amortizing Intangible Assets Net

Definite-lived intangible assets, which are included in Other intangible assets, net in the Consolidated Balance Sheets, are as follows:


	December 31, 2016
(In millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	74	$	(53	)	$	21
Favorable leases		18		(6	)		12

Total	$	92	$	(59	)	$	33


	December 26, 2015
(In millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	74	$	(44	)	$	30
Favorable leases		30		(7	)		23
Trade names		8		(8	)		—

Total	$	112	$	(59	)	$	53

Capitalized Software

Estimated Future Amortization Expense for Intangible Assets

Estimated future amortization expense related to capitalized software at December 31, 2016 is as follows:


(In millions)
2017	$	35
2018		25
2019		15
2020		9
2021		5

DEBT (Tables)

12 Months Ended

Dec. 31, 2016

Schedule Of Debt

Debt consists of the following:


(In millions)	December 31, 2016		December 26, 2015
Recourse debt:
Short-term borrowings and current maturities of long-term debt:
Capital lease obligations	$	27	$	29
7.35% debentures, due 2016		—		18
Other current maturities of long-term debt		2		4

Total	$	29	$	51

Long-term debt, net of current maturities:
Senior Secured Notes, due 2019	$	—	$	250
Unamortized debt issuance cost		—		(3	)

Senior Secured Notes, due 2019, net		—		247

Revenue bonds, due in varying amounts periodically through 2029		186		186
American & Foreign Power Company, Inc. 5% debentures, due 2030		14		14
Capital lease obligations		146		169
Other		12		12

Total	$	358	$	628

Non-recourse debt:
5.42% Securitization Notes, due 2019 — Refer to Note 6	$	735	$	735
Unamortized premium		63		84

Total	$	798	$	819

Schedule of Maturities of Long-term Debt And Capital Lease Obligations

Aggregate annual maturities of recourse debt and capital lease obligations are as follows:


(In millions)
2017	$	39
2018		35
2019		33
2020		38
2021		28
Thereafter		260

Total		433
Less amount representing interest on capital leases		(46	)

Total		387
Less:
Current portion		(29	)

Total long-term debt	$	358

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income (Loss) from Continuing Operations Before Income Taxes

The components of income (loss) from continuing operations before income taxes consisted of the following:


(In millions)	2016		2015			2014
United States	$	445	$	122		$	(286	)
Foreign		14		(7	)		(5	)

Total income (loss) from continuing operations before income taxes	$	459	$	115		$	(291	)

Schedule Income Tax Expense Related to Income (Loss) From Continuing Operations

The income tax expense related to income (loss) from continuing operations consisted of the following:


(In millions)	2016			2015			2014
Current:
Federal	$	17		$	18		$	(2	)
State		6			4			(1	)
Foreign		3			1			3
Deferred :
Federal		(210	)		(1	)		—
State		(37	)		2			3
Foreign		1			(1	)		(1	)

Total income tax expense (benefit)	$	(220	)	$	23		$	2

Reconciliation Of Income Taxes At The Federal Statutory Rate To The Provision For Income Taxes

The following is a reconciliation of income taxes at the U.S. Federal statutory rate to the provision for income taxes:


(In millions)	2016			2015			2014
Federal tax computed at the statutory rate	$	160		$	40		$	(102	)
State taxes, net of Federal benefit		(20	)		5			1
Foreign income taxed at rates other than Federal		—			6			8
Increase (decrease) in valuation allowance		(349	)		(46	)		85
Non-deductible Merger expenses		—			11			—
Other non-deductible expenses		3			4			13
Non-taxable income and additional deductible expenses		(13	)		(2	)		(2	)
Change in unrecognized tax benefits		(3	)		—			—
Tax expense from intercompany transactions		—			6			—
Subpart F and dividend income, net of foreign tax credits		2			1			2
Other items, net		—			(2	)		(3	)

Income tax expense (benefit)	$	(220	)	$	23		$	2

Schedule of Components Deferred Income Tax Assets and Liabilities

The components of deferred income tax assets and liabilities consisted of the following:


(In millions)	December 31, 2016			December 26, 2015
U.S. and foreign loss carryforwards	$	275		$	79
Deferred rent credit		61			68
Pension and other accrued compensation		134			200
Accruals for facility closings		29			43
Inventory		20			19
Self-insurance accruals		29			33
Deferred revenue		24			45
U.S. and foreign income tax credit carryforwards		197			223
Allowance for bad debts		5			12
Accrued expenses		28			32
Basis difference in fixed assets		69			73
Other items, net		5			—

Gross deferred tax assets		876			827
Valuation allowance		(140	)		(522	)

Deferred tax assets		736			305

Internal software		5			5
Installment gain on sale of timberlands		260			263
Deferred Subpart F income		—			27
Undistributed foreign earnings		8			2

Deferred tax liabilities		273			297

Net deferred tax assets	$	463		$	8

Summary of Valuation Allowances

The following summarizes the activity related to valuation allowances for deferred tax assets:


(In millions)	2016			2015			2014
Beginning balance	$	522		$	571		$	448
Additions, charged to expense		—			—			123
Reductions		(382	)		(49	)		—

Ending balance	$	140		$	522		$	571

Summary of Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits:


(In millions)	2016			2015			2014
Beginning balance	$	18		$	22		$	15
Increase related to current year tax positions		1			1			6
Increase related to prior year tax positions		—			1			4
Decrease related to prior year tax positions		—			(5	)		(2	)
Decrease related to lapse of statute of limitations		—			(1	)		—
Decrease related to settlements with taxing authorities		(5	)		—			(1	)

Ending balance	$	14		$	18		$	22

LEASES (Tables)

12 Months Ended

Dec. 31, 2016

Future Minimum Lease Payments Due Under Non-Cancelable Portions Of Leases

Future minimum lease payments due under the non-cancelable portions of leases as of December 31, 2016 include facility leases that were accrued as store closure costs and are as follows:


(In millions)
2017	$	486
2018		369
2019		275
2020		180
2021		104
Thereafter		173

		1,587
Less sublease income		(31	)

Total	$	1,556

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2016

Accumulated Other Comprehensive Income Activity, Net of Tax

Accumulated Other Comprehensive Income


(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension			Total
Balance at December 26, 2015	$	108		$	(78	)	$	30
Other comprehensive income (loss) activity before reclassifications		(11	)		30			19
Reclassification of foreign currency translation adjustments realized upon disposal of business ^(a)		(164	)		—			(164	)
Tax impact		—			(14	)		(14	)

Net year-to-date other comprehensive income		(175	)		16			(159	)

Balance at December 31, 2016	$	(67	)	$	(62	)	$	(129	)

^(a)	Amounts in parentheses indicate an increase to earnings.


(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension			Total
Balance at December 27, 2014	$	186		$	(79	)	$	107
Other comprehensive income (loss) activity before reclassifications		(78	)		2			(76	)
Reclassification of foreign currency translation adjustments realized upon disposal of business ^(a)		—			—			—
Tax impact		—			(1	)		(1	)

Net year-to-date other comprehensive income		(78	)		1			(77	)

Balance at December 26, 2015	$	108		$	(78	)	$	30

^(a)	Amounts in parentheses indicate an increase to earnings.

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Activity in Stock Option Awards

A summary of the activity in the stock option awards for the last three years is presented below.


	2016					2015					2014
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at beginning of year		5,779,597		$	4.53		8,602,626		$	4.53		22,702,534		$	4.48
Granted		—			—		—			—		—			—
Forfeited		(108,818	)		5.04		(574,967	)		9.29		(1,323,664	)		10.46
Exercised		(1,614,243	)		1.89		(2,248,062	)		3.34		(12,776,244	)		3.83

Outstanding at end of year		4,056,536		$	5.56		5,779,597		$	4.53		8,602,626		$	4.53

Summary of Information About Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at December 31, 2016.


	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price
$0.83—$3.00		183,862		1.71		1.64		183,862		1.71		1.64
3.01—5.12		569,901		1.02		4.34		569,901		1.02		4.34
5.13		183,993		0.43		5.13		183,993		0.43		5.13
5.14—8.00		2,806,280		5.05		5.64		2,806,280		5.05		5.64
8.01—11.27		312,500		0.18		9.64		312,500		0.18		9.64

$0.83—$11.27		4,056,536		3.76		5.56		4,056,536		3.76		5.56

Summary of Status of Company's Nonvested Shares

A summary of the status of the Company’s nonvested shares and changes during 2016, 2015 and 2014 is presented below.


	2016					2015					2014
	Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price
Outstanding at beginning of year		9,588,889		$	6.07		10,708,372		$	4.65		10,207,546		$	4.76
Granted		10,099,481			3.53		2,886,640			9.43		5,809,821			4.33
Vested		(3,521,765	)		5.31		(3,370,569	)		4.46		(4,179,789	)		4.75
Forfeited		(3,418,814	)		4.51		(635,554	)		5.94		(1,129,206	)		3.65

Outstanding at end of year		12,747,791		$	4.41		9,588,889		$	6.07		10,708,372		$	4.65

Summary of Performance Based Long Term Incentive Program

A summary of the activity in the performance-based long-term incentive program since inception is presented below.


	2016					2015					2014
	Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price
Outstanding at beginning of the year		8,589,114		$	5.95		6,808,964		$	4.43		3,076,292		$	4.45
Granted		9,635,184			3.37		2,745,303			9.45		5,289,047			4.55
Vested		(161,408	)		4.32		(283,244	)		3.98		(1,246,006	)		3.74
Forfeited		(4,320,506	)		5.69		(681,909	)		5.67		(310,369	)		4.16

Outstanding at end of the year		13,742,384			4.66		8,589,114		$	5.95		6,808,964		$	4.43

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2016

North America

Changes in Pension and Other Postretirement Benefit Obligations, Plan Assets and Funded Status


	Pension Benefits						Other Benefits
(In millions)	2016			2015			2016			2015
Changes in projected benefit obligation:
Obligation at beginning of period	$	1,094		$	1,218		$	13		$	17
Service cost		7			3			—			—
Interest cost		45			46			1			1
Actuarial (gain) loss		(8	)		(78	)		—			(2	)
Currency exchange rate change		—			—			—			(2	)
Benefits paid		(138	)		(95	)		(1	)		(1	)

Obligation at end of period	$	1,000		$	1,094		$	13		$	13

Change in plan assets:
Fair value of plan assets at beginning of period	$	922		$	1,039		$	—		$	—
Actual return (loss) on plan assets		84			(30	)		—			—
Employer contribution		2			8			1			1
Benefits paid		(138	)		(95	)		(1	)		(1	)

Fair value of plan assets at end of period		870			922			—			—

Net liability recognized at end of period	$	(130	)	$	(172	)	$	(13	)	$	(13	)

Amount Recognized in Consolidated Balance Sheets Related to Defined Benefit Pension and Other Postretirement Benefit Plans


	Pension Benefits						Other Benefits
(In millions)	2016			2015			2016			2015
Noncurrent assets	$	—		$	—		$	—		$	—
Current liabilities		(2	)		(3	)		(1	)		(1	)
Noncurrent liabilities		(128	)		(169	)		(12	)		(12	)

Net amount recognized	$	(130	)	$	(172	)	$	(13	)	$	(13	)

Components of Net Periodic Cost (Benefit)

The components of net periodic cost (benefit) are as follows:


	Pension Benefits									Other Benefits
(In millions)	2016			2015			2014			2016		2015		2014
Service cost	$	7		$	3		$	3		$	—	$	—	$	—
Interest cost		45			46			52			1		1		1
Expected return on plan assets		(55	)		(56	)		(62	)		—		—		—

Net periodic cost (benefit)	$	(3	)	$	(7	)	$	(7	)	$	1	$	1	$	1

Other Changes In Plan Assets and Benefit Obligations Recognized In Other Comprehensive Loss (Income)

Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) are as follows:


	Pension Benefits								Other Benefits
(In millions)	2016			2015		2014			2016			2015			2014
Accumulated other comprehensive loss (income) at beginning of year	$	76		$	67	$	(26	)	$	(1	)	$	1		$	—
Net loss (gain)		(38	)		9		93			—			(2	)		1

Accumulated other comprehensive loss (income) at end of year	$	38		$	76	$	67		$	(1	)	$	(1	)	$	1

Weighted Average Assumptions Used in the Measurement of Benefit Obligations

The following table presents the key weighted average assumptions used in the measurement of the Company’s benefit obligations as of year-ends:


										Other Benefits
	Pension Benefits									United States									Canada
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Discount rate		4.11	%		4.33	%		3.91	%		3.60	%		3.70	%		3.40	%		3.80	%		4.00	%		4.00%

The following table presents the weighted average assumptions used in the measurement of net periodic benefit:


										Other Benefits
	Pension Benefits									United States									Canada
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Discount rate		4.33	%		3.91	%		4.84	%		3.70	%		3.40	%		4.00	%		4.00	%		4.00	%		4.80%
Expected long-term rate of return on plan assets		6.00	%		5.85	%		6.50	%		—	%		—	%		—	%		—	%		—	%		—%

Assumed Healthcare Cost Trend Rates

The following table presents the assumed healthcare cost trend rates used in measuring the Company’s postretirement benefit obligations at year-ends:


	2016			2015			2014
Weighted average assumptions as of year-end:
Healthcare cost trend rate assumed for next year		5.90	%		6.20	%		6.40%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.50	%		4.50	%		4.50%
Year that the rate reaches the ultimate trend rate		2022			2022			2022

Allocation of Plan Assets Table

The allocation of pension plan assets by category at year-ends is as follows:


	2016			2015
Money market funds		3	%		2%
Equity securities		11			9
Fixed-income securities		50			57
Mutual funds		36			31
Other		—			1

		100	%		100%

Schedule Of Fair Value Of Plan Assets By Assets Category

The following table presents the pension plan assets by level within the fair value hierarchy at year-ends.


(In millions)			Fair Value Measurements 2016
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds	$	25	$	—	$	25	$	—
Equity securities
U.S. large-cap		29		29		—		—
U.S. small and mid-cap		4		4		—		—
International		60		60		—		—

Total equity securities		93		93		—		—

Fixed-income securities
Corporate bonds		407		—		407		—
Government securities		14		—		14		—
Other fixed-income		16		—		16		—

Total fixed-income securities		437		—		437		—

Other
Mutual funds		312		—		312		—
Other, including plan receivables and payables		3		3		—		—

Total other		315		3		312		—

	$	870	$	96	$	774	$	—


			Fair Value Measurements 2015
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds	$	19	$	—	$	19	$	—
Equity securities
U.S. large-cap		25		25		—		—
U.S. small and mid-cap		4		4		—		—
International		58		58		—		—

Total equity securities		87		87		—		—

Fixed-income securities
Corporate bonds		485		—		485		—
Government securities		10		—		10		—
Other fixed-income		24		—		24		—

Total fixed-income securities		519		—		519		—

Other
Equity mutual funds		290		—		290		—
Other, including plan receivables and payables		7		7		—		—

Total other		297		7		290		—

	$	922	$	94	$	828	$	—

Anticipated Benefit Payments

Anticipated benefit payments by year are as follows:


(in millions)	Pension Benefits		Other Benefits
2017	$	87	$	1
2018		85		1
2019		82		1
2020		80		1
2021		77		1
Next five years		346		4

Europe

Changes in Pension and Other Postretirement Benefit Obligations, Plan Assets and Funded Status


(In millions)	2016			2015
Changes in projected benefit obligation:
Obligation at beginning of period	$	210		$	239
Service cost		—			—
Interest cost		7			9
Benefits paid		(6	)		(7	)
Actuarial (gain) loss		59			(20	)
Currency translation		(40	)		(11	)

Obligation at end of period		230			210

Changes in plan assets:
Fair value of plan assets at beginning of period		240			257
Actual return on plan assets		62			2
Company contributions		29			—
Benefits paid		(6	)		(7	)
Currency translation		(47	)		(12	)

Fair value of plan assets at end of period		278			240

Net asset recognized at end of period	$	48		$	30

Components of Net Periodic Cost (Benefit)

The components of net periodic benefit are presented below:


(In millions)	2016			2015			2014
Service cost	$	—		$	—		$	—
Interest cost		7			9			10
Expected return on plan assets		(10	)		(14	)		(14	)

Net periodic pension benefit	$	(3	)	$	(5	)	$	(4	)

Weighted Average Assumptions Used in the Measurement of Benefit Obligations

Assumptions used in calculating the funded status and net periodic benefit included:


	2016			2015			2014
Expected long-term rate of return on plan assets		4.07	%		4.78	%		5.55%
Discount rate		2.70	%		3.90	%		3.80%
Inflation		3.20	%		3.00	%		3.10%

Allocation of Plan Assets Table

The allocation of Plan assets is as follows:


	2016			2015
Cash		9	%		—%
Equity securities		21	%		50%
Fixed-income securities		70	%		50%

Total		100	%		100%

Schedule Of Fair Value Of Plan Assets By Assets Category

The following table presents the pension plan assets by level within the fair value hierarchy.


(In millions)			Fair Value Measurements 2016
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	25	$	25	$	—	$	—
Equity securities
Developed market equity funds		19		19		—		—
Emerging market equity funds		7		7		—		—
Mutual funds real estate		7		—		—		7
Mutual funds		27		—		27		—

Total equity securities		60		26		27		7

Fixed-income securities
UK debt funds		62		—		62		—
Liability term matching debt funds		109		—		109		—
Emerging market debt fund		2		—		2		—
High yield debt		20		—		20		—

Total fixed-income securities		193		—		193		—

Total	$	278	$	51	$	220	$	7


(In millions)			Fair Value Measurements 2015
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	—	$	—	$	—	$	—
Equity securities
Developed market equity funds		70		70		—		—
Emerging market equity funds		15		15		—		—
Mutual funds real estate		8		—		—		8
Mutual funds		27		—		27		—

Total equity securities		120		85		27		8

Fixed-income securities
UK debt funds		25		—		25		—
Liability term matching debt funds		71		—		71		—
Emerging market debt fund		8		—		8		—
High yield debt		16		—		16		—

Total fixed-income securities		120		—		120		—

Total	$	240	$	85	$	147	$	8

Anticipated Benefit Payments

Anticipated benefit payments for the European pension plan, at 2016 year-end exchange rates, are as follows:


(In millions)	Benefit Payments
2017	$	6
2018		6
2019		6
2020		7
2021		7
Next five years		36

Reconciliation of the Change in Fair Value of the Pension Plan Assets Calculated based on Level 3 Inputs


(In millions)	Total
Balance at December 26, 2015	$	8
Currency translation		(1	)

Balance at December 31, 2016	$	7

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2016

Calculation of Net Earnings (Loss) Per Common Share

The following table presents the calculation of net earnings (loss) per common share — basic and diluted:


(In millions, except per share amounts)	2016			2015			2014
Basic Earnings Per Share
Numerator:
Net income (loss) from continuing operations	$	679		$	92		$	(293	)
Loss from discontinued operations, net of tax		(150	)		(84	)		(59	)
Less: Results attributable to the noncontrolling interests		—			—			2

Net income (loss) to Office Depot, Inc.	$	529		$	8		$	(354	)

Denominator:
Weighted-average shares outstanding		539			547			535
Basic earnings (loss) per share:
Continuing operations	$	1.26		$	0.17		$	(0.55	)
Discontinued operations		(0.28	)		(0.15	)		(0.11	)

Net earnings (loss)	$	0.98		$	0.01		$	(0.66	)

Diluted Earnings Per Share
Numerator:
Net income (loss) from continuing operations	$	679		$	92		$	(293	)
Loss from discontinued operations, net of tax		(150	)		(84	)		(59	)
Less: Results attributable to the noncontrolling interests		—			—			2

Net income (loss) to Office Depot, Inc.	$	529		$	8		$	(354	)

Denominator:
Weighted-average shares outstanding		539			547			535
Effect of dilutive securities:
Stock options and restricted stock		10			8			—

Diluted weighted-average shares outstanding		549			555			535
Diluted earnings (loss) per share
Continuing operations	$	1.24		$	0.16		$	(0.55	)
Discontinued operations		(0.27	)		(0.15	)		(0.11	)

Net earnings (loss)	$	0.96		$	0.01		$	(0.66	)

DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Fair Value of Assets and Liabilities

The following table presents information about financial instruments at the balance sheet dates indicated.


	2016				2015
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Timber notes receivable	$	885	$	884	$	905	$	909
Company-owned life insurance		89		89		88		88
Financial liabilities:
Recourse debt:
9.75% Senior Secured Notes, due 2019		—		—		250		265
7.35% debentures, due 2016		—		—		18		18
Revenue bonds, due in varying amounts periodically through 2029		186		181		186		186
American & Foreign Power Company, Inc. 5% debentures, due 2030		14		12		14		13
Non-recourse debt		798		800		819		825

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Significant Accounts and Balances by Segment, Reconciled to Consolidated Totals

A summary of significant accounts and balances by segment, reconciled to consolidated totals, after the elimination of discontinued operations for all periods is as follows.


(In millions)		North American Retail		North American Business Solutions		Other		Corporate, Eliminations, and Discontinued Operations*		Consolidated Total
Sales	2016	$	5,603	$	5,400	$	18	$	—	$	11,021
	2015		6,004		5,708		15		—		11,727
	2014		6,528		6,013		14		155		12,710
Division operating income	2016		299		265		1		—		565
	2015		310		226		3		—		539
	2014		126		232		1		—		359
Capital expenditures	2016		58		42		—		11		111
	2015		56		70		—		18		144
	2014		44		29		—		23		96
Depreciation and amortization	2016		90		69		—		22		181
	2015		130		82		—		41		253
	2014		140		85		—		52		277
Charges for losses on receivables and inventories	2016		58		20		—		—		78
	2015		42		11		—		—		53
	2014		48		4		—		—		52
Assets	2016		1,542		1,713		4		2,281		5,540
	2015		1,625		1,607		4		3,206		6,442
	2014		1,736		1,687		4		3,330		6,757

Reconciliation Of Division Operating Profit To Consolidated Earnings from Continuing Operations

A reconciliation of the measure of Division operating income to Consolidated income (loss) from continuing operations before income taxes is as follows:


(In millions)	2016			2015			2014
Division operating income	$	565		$	539		$	359
Add/(subtract):
Other operating income (loss)		—			—			8
Asset impairments		(15	)		(13	)		(56	)
Merger, restructuring, and other operating income (expenses), net		80			(242	)		(334	)
Legal accrual		—			—			(81	)
Unallocated expenses		(99	)		(101	)		(124	)
Interest income		22			22			22
Interest expense		(80	)		(91	)		(87	)
Loss on extinguishment of debt		(15	)		—			—
Other income (expense), net		1			1			2

Income (loss) from continuing operations before income taxes	$	459		$	115		$	(291	)

Sales By Product Category Information

Total Company sales by product category were as follows:


	2016		2015		2014
Supplies		45.2%		44.4%		43.6%
Technology		38.9%		40.2%		41.2%
Furniture and other		15.9%		15.4%		15.2%

		100.0%		100.0%		100.0%

QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Quarterly Financial Data

(In millions, except per share amounts)	First Quarter			Second Quarter			Third Quarter⁽³⁾			Fourth Quarter
Fiscal Year Ended December 31, 2016*
Net sales	$	2,876		$	2,583		$	2,836		$	2,725
Gross profit		715			613			726			653
Operating income		85			271			117			57
Net income from continuing operations⁽¹⁾		62			232			330			55
Discontinued operations, net of tax		(16	)		(22	)		(137	)		25
Net income (loss)		46			210			193			80
Basic earnings (loss) per share⁽²⁾
Continuing operations	$	0.11		$	0.42		$	0.62		$	0.11
Discontinued operations	$	(0.03	)	$	(0.04	)	$	(0.26	)	$	0.05

Basic earnings per share	$	0.08		$	0.38		$	0.36		$	0.15
Diluted earnings (loss) per share⁽²⁾
Continuing operations	$	0.11		$	0.41		$	0.61		$	0.10
Discontinued operations	$	(0.03	)	$	(0.04	)	$	(0.25	)	$	0.05

Diluted earnings per share	$	0.08		$	0.38		$	0.35		$	0.15

*	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The first quarter and second quarter amounts reflect application of discontinued operations accounting that was effective in the third quarter.

⁽¹⁾

⁽²⁾	The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding.

⁽³⁾


	Third Quarter 2016								Year-to-Date Third Quarter 2016
($ in Millions, except per share)	As Reported			Adjustment		As Corrected			As Reported			Adjustment		As Corrected
Discontinued operations, net of tax	$	(286	)	$	149	$	(137	)	$	(324	)	$	149	$	(175	)
Net income (loss)	$	44		$	149	$	193		$	300		$	149	$	449

Basic earnings (loss) per share
Discontinued operations	$	(0.54	)	$	0.28	$	(0.26	)	$	(0.60	)	$	0.28	$	(0.32	)

Net earnings (loss)	$	0.08		$	0.28	$	0.36		$	0.55		$	0.27	$	0.82

Diluted earnings per share
Discontinued operations	$	(0.54	)	$	0.29	$	(0.25	)	$	(0.60	)	$	0.28	$	(0.32	)

Net earnings (loss)	$	0.08		$	0.27	$	0.35		$	0.54		$	0.27	$	0.81


(In millions, except per share amounts)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Fiscal Year Ended December 26, 2015*
Net sales	$	3,131		$	2,784		$	3,046		$	2,767
Gross profit		761			659			787			656
Operating income (loss)		88			(27	)		81			42
Net income (loss) from continuing operations⁽¹⁾		49			(31	)		42			31
Discontinued operations, net of tax		(4	)		(27	)		(36	)		(16	)
Net income (loss)⁽¹⁾		45			(58	)		6			15
Basic earnings (loss) per share⁽²⁾
Continuing operations	$	0.09		$	(0.06	)	$	0.08		$	0.06
Discontinued operations	$	(0.01	)	$	(0.05	)	$	(0.07	)	$	(0.03	)

Basic earnings per share	$	0.08		$	(0.11	)	$	0.01		$	0.03
Diluted earnings (loss) per share⁽²⁾
Continuing operations	$	0.09		$	(0.06	)	$	0.08		$	0.06
Discontinued operations	$	(0.01	)	$	(0.05	)	$	(0.07	)	$	(0.03	)

Diluted earnings per share	$	0.08		$	(0.11	)	$	0.01		$	0.03

*	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The amounts reflect application of discontinued operations accounting.

⁽¹⁾

⁽²⁾	The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding.

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 24, 2016 Store	Dec. 31, 2016 USD ($) Customer Store Segment asset_group	Dec. 26, 2015 USD ($) Customer	Dec. 27, 2014 USD ($) Customer
Summary Of Significant Accounting Policies [Line Items]
Number of operating segments \| Segment		2
Percent of subsidiary shares owned		88.00%
Accounts payable and accrued expenses and other current liabilities not yet presented for payment		$ 58	$ 32
Cash and cash equivalents		763	860	$ 824
Cash and cash equivalents, discontinued operations		44	209	$ 247
Trade receivables, net		415	471
Allowance for doubtful accounts		$ 12	$ 9
Number of customers accounted for more than 10% of total sales \| Customer		0	0	0
Number of customers accounted for more than 10% of receivables \| Customer		0	0	0
Other receivables		$ 272	$ 275
Number of retail stores closed under real estate strategy \| Store		400
Accrued payroll-related expenses		$ 176	221
Advertising expense		272	285	$ 350
Prepaid advertising costs		$ 11	11	$ 16
Discontinued Operations, Held-for-Sale
Summary Of Significant Accounting Policies [Line Items]
Individual disposal groups measured at lower of carrying value of fair value less costs to sell \| asset_group		4
Vendor Arrangements Receivables
Summary Of Significant Accounting Policies [Line Items]
Other receivables		$ 223	$ 233
Non-US
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents		84
Cash and cash equivalents, discontinued operations		$ 44
Comprehensive Business Review
Summary Of Significant Accounting Policies [Line Items]
Number of retail stores planned to be closed \| Store	300
Retail stores planned to be closed completion period	2018
Buildings \| Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		15 years
Buildings \| Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		30 years
Furniture, fixtures and equipment \| Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		3 years
Furniture, fixtures and equipment \| Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		10 years
Computer Software for Common Office Applications
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		3 years
Computer Software for Larger Business Application
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		5 years
Computer Software for Enterprise Wide Systems
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		7 years
Software \| Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		3 years
Software \| Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciable assets, years		7 years

Merger, Acquisition Termination, and Restructuring Activity - Additional Information (Detail) $ in Millions		3 Months Ended								12 Months Ended
	May 19, 2016 USD ($)	Dec. 31, 2016 USD ($)	Sep. 24, 2016 USD ($) Store	Jun. 25, 2016 USD ($)	Mar. 26, 2016 USD ($)	Dec. 26, 2015 USD ($)	Sep. 26, 2015 USD ($)	Jun. 27, 2015 USD ($)	Mar. 28, 2015 USD ($)	Dec. 31, 2016 USD ($) Store	Dec. 26, 2015 USD ($) Store	Dec. 27, 2014 USD ($) Store
Business Acquisition [Line Items]
Number of retail stores closed under real estate strategy \| Store										400
Supply chain closure anticipated completion year										2017
Termination Fee				$ 250						$ 250
Gain on sale of warehouse facilities classified as assets held for sale											$ 36
Number of retail stores closed \| Store										51	181	168
Merger, restructuring and other operating (income) expenses, net		$ (43)	$ (31)	$ 193	$ (40)	$ (38)	$ (79)	$ (96)	$ (29)	$ (80)	$ 242	$ 334
Merger restructuring and other expenses										170
Merger, restructuring and other operating (income) expenses other than liabilities										70	158
Charges Incurred										70	158
Transaction expenses										43	37
Merger transaction and integration expenses										37	81	$ 124
Merger transaction and integration expenses										26
Fixed assets and rent related expenses											2
Staples, Inc.
Business Acquisition [Line Items]
Termination Fee	$ 250
Transaction expenses										$ 43	37
Comprehensive Business Review
Business Acquisition [Line Items]
Number of retail stores planned to be closed \| Store			300
Retail stores closure period			3 years
Number of retail stores closed \| Store										72
Merger, restructuring, and other operating (income) expenses, net
Business Acquisition [Line Items]
Gain on sale of warehouse facilities classified as assets held for sale										$ 1	36
Charges Incurred										100	$ 84
Merger transaction and integration expenses										$ 20

Summary of Major Components of Merger, Restructuring and Other Operating (income) Expenses, Net (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 24, 2016	Jun. 25, 2016	Mar. 26, 2016	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Merger expenses:
Severance, retention, and relocation										$ 15	$ 148
Transaction and integration									$ 37	81	124
Facility closure, contract termination, and other expenses, net									27	44	62
Total Merger related expenses									64	140	334
Staples Acquisition (income) expenses:
Retention									15	65
Transaction									43	37
Termination Fee			$ (250)						(250)
Total Staples Acquisition (income) expenses									(192)	102
Comprehensive Business Review expenses:
Severance									22
Facility closure, contract termination, professional fees and other expenses, net									26
Total Comprehensive Business Review expenses									48
Total Merger, restructuring and other operating (income) expenses, net	$ (43)	$ (31)	$ 193	$ (40)	$ (38)	$ (79)	$ (96)	$ (29)	$ (80)	$ 242	$ 334

Severance and Facility Closure Costs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 196	$ 161
Charges Incurred	70	158
Cash Payments	(182)	(126)
Lease Accretion and Other Adjustments	5	3
Ending Balance	89	196
Termination benefits \| Merger related accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	16	31
Charges Incurred		16
Cash Payments	(9)	(31)
Lease Accretion and Other Adjustments	(2)
Ending Balance	5	16
Termination benefits \| Comprehensive Business Review
Restructuring Cost and Reserve [Line Items]
Charges Incurred	19
Cash Payments	(11)
Ending Balance	8
Lease and contract obligations, accruals for facilities closures and other costs \| Merger related accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	77	71
Charges Incurred	22	76
Cash Payments	(62)	(70)
Lease Accretion and Other Adjustments	3
Ending Balance	40	77
Lease and contract obligations, accruals for facilities closures and other costs \| Comprehensive Business Review
Restructuring Cost and Reserve [Line Items]
Charges Incurred	19
Cash Payments	(6)
Ending Balance	13
Lease and contract obligations, accruals for facilities closures and other costs \| Other restructuring accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	14	23
Charges Incurred	(2)	(1)
Cash Payments	(8)	(10)
Lease Accretion and Other Adjustments	1	2
Ending Balance	5	14
Lease and contract obligations, accruals for facilities closures and other costs \| Acquired entity accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	25	36
Charges Incurred	(3)	3
Cash Payments	(7)	(15)
Lease Accretion and Other Adjustments	3	1
Ending Balance	18	25
Lease and contract obligations, accruals for facilities closures and other costs \| Staples acquisition related accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	64
Charges Incurred	15	64
Cash Payments	$ (79)
Ending Balance		$ 64

Discontinued Operations - Additional Information (Detail) € in Millions, $ in Millions	3 Months Ended	12 Months Ended
	Sep. 24, 2016 USD ($)	Dec. 31, 2016 USD ($)	Dec. 26, 2015 USD ($)	Dec. 27, 2014 USD ($)	Sep. 23, 2016 EUR (€)
European Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on sale or held for sale classification		$ (108)
Discontinued Operations \| European Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Warranties on sale and purchase agreement \| €					€ 10
Discontinued Operations \| Aurelius Rho Invest DS GmbH \| European Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accrued liability under working capital adjustment provision		$ 70
Discontinued Operations \| Aurelius Rho Invest DS GmbH \| European Business \| Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Transition services period		24 months
Discontinued Operations \| Aurelius Rho Invest DS GmbH \| European Business \| Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Transition services period		6 months
Discontinued Operations \| International Division \| Australia/New Zealand
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill, impairment loss	$ 15
Discontinued Operations, Held-for-Sale \| European Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization		$ 19	$ 30	$ 36
Capital expenditures		$ 9	$ 19	$ 27
Discontinued Operations, Held-for-Sale \| South Korea, mainland China, Australia and New Zealand Businesses \| Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Expects period to complete dispositions		1 year

Major Component of Discontinued Operations, Net of Tax (Detail) - Discontinued Operations, Held-for-Sale - European Business - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales	$ 2,564	$ 2,758	$ 3,386
Cost of goods sold and occupancy costs	2,019	2,119	2,586
Operating expenses	573	617	746
Asset impairments	90		32
Restructuring charges	11	90	69
Interest income	1	2	2
Interest expense	(5)	(2)	(2)
Other income (expense), net	(2)		(2)
Loss on sale or held for sale classification	(223)
Income tax expense (benefit)	(208)	16	10
Discontinued operations, net of tax	$ (150)	$ (84)	$ (59)

Assets and Liabilities of Discontinued Operations (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Assets
Cash and cash equivalents	$ 44	$ 209	$ 247
Other assets	23	30
Current assets of discontinued operations	142	956
Non-current assets of discontinued operations		182
Liabilities
Current liabilities of discontinued operations	104	622
Non-current liabilities of discontinued operations		46
Discontinued Operations, Held-for-Sale \| European Business
Assets
Cash and cash equivalents	44	209
Receivables, net	88	420
Inventories	82	292
Prepaid expenses and other current assets	4	35
Property and equipment, net	31
Other assets	6
Valuation allowance	(113)
Current assets of discontinued operations	142	956
Property and equipment, net		119
Goodwill		15
Other assets		48
Non-current assets of discontinued operations		182
Liabilities
Trade accounts payable	60	331
Accrued expenses and other current liabilities	27	282
Income taxes payable	2	4
Short-term borrowings and current maturities of long-term debt	9	5
Deferred income taxes and other long-term liabilities	6
Current liabilities of discontinued operations	$ 104	622
Deferred income taxes and other long-term liabilities		40
Long-term debt, net of current maturities		6
Non-current liabilities of discontinued operations		$ 46

Schedule of Property and Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 2,165	$ 2,128
Less accumulated depreciation	(1,564)	(1,463)
Total	601	665
Land
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	46	50
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	279	284
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	685	695
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 1,155	$ 1,099

Schedule of Assets Held under Capital Leases (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Capital Leased Assets [Line Items]
Assets held under capital leases, Gross	$ 276	$ 272
Less accumulated depreciation	(165)	(141)
Total	111	131
Buildings
Capital Leased Assets [Line Items]
Assets held under capital leases, Gross	191	192
Furniture, fixtures and equipment
Capital Leased Assets [Line Items]
Assets held under capital leases, Gross	$ 85	$ 80

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 124	$ 172	$ 183
Capitalized software costs, Gross	476	443
Capitalized software costs, Net	89	96
Amortization of capitalized software costs	$ 47	$ 67	$ 76
Capitalized Software
Property, Plant and Equipment [Line Items]
Weighted average remaining amortization period	2 years 9 months 18 days

Estimated Future Amortization Expense Related to Capitalized Software (Detail) $ in Millions	Dec. 31, 2016 USD ($)
Finite Lived Intangible Assets Future Amortization Expense [Line Items]
2017	$ 7
2018	5
2019	4
2020	4
2021	4
Capitalized Software
Finite Lived Intangible Assets Future Amortization Expense [Line Items]
2017	35
2018	25
2019	15
2020	9
2021	$ 5

Assets Held for Sale Activity (Detail) $ in Millions	12 Months Ended
Assets Held for Sale Activity (Detail) $ in Millions	Dec. 31, 2016 USD ($)
Long Lived Assets Held-for-sale [Line Items]
Beginning Balance	$ 30
Additions	6
Dispositions	(13)
Ending Balance	$ 23

Schedule of Goodwill by Segment (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Goodwill [Line Items]
Goodwill	$ 363	$ 363
North American Retail Division
Goodwill [Line Items]
Goodwill	78
North American Business Solutions Division
Goodwill [Line Items]
Goodwill	285
Operating Segments \| North American Retail Division
Goodwill [Line Items]
Goodwill	78	78
Operating Segments \| North American Business Solutions Division
Goodwill [Line Items]
Goodwill	$ 285	$ 285

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Other Intangible Assets [Line Items]
Intangible asset impairment	$ 7	$ 1	$ 5
Amortization of intangible assets	10	$ 13	$ 18
Operating Segments \| North American Business Solutions Division
Other Intangible Assets [Line Items]
Goodwill, accumulated impairment loss	$ 349
Customer Relationships
Other Intangible Assets [Line Items]
Weighted average amortization period for the definite-lived intangible assets (in years)	5 years
Favorable Leases
Other Intangible Assets [Line Items]
Weighted average amortization period for the definite-lived intangible assets (in years)	16 years

Definite Lived Intangible Assets Included in Other Intangible Assets Net (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 92	$ 112
Accumulated Amortization	(59)	(59)
Net Carrying Value	33	53
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	74	74
Accumulated Amortization	(53)	(44)
Net Carrying Value	21	30
Favorable Leases
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	18	30
Accumulated Amortization	(6)	(7)
Net Carrying Value	$ 12	23
Trade Names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value		8
Accumulated Amortization		$ (8)

Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Finite Lived Intangible Assets And Liabilities Future Amortization Expense [Line Items]
2017	$ 7
2018	5
2019	4
2020	4
2021	4
Thereafter	9
Net Carrying Value	$ 33	$ 53

Timber Notes/Non-Recourse Debt - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Nov. 05, 2013	Dec. 31, 2016	Dec. 26, 2015
Timber Notes Non Recourse Debt Receivable And Payable [Line Items]
Principal amount of credit-enhanced timber installment notes acquired	$ 818
Timber note receivables - interest rates	4.98%
Cash transferred by Note issues as collateral to support issuance of Installment Notes	$ 818
Timber notes receivable		$ 885	$ 905
Timber notes receivable - maturity year	2020
Non-recourse debt		798	$ 819
Deferred tax liability		$ 260
Non-Recourse Debt
Timber Notes Non Recourse Debt Receivable And Payable [Line Items]
Non-recourse debt acquired in a business combination	$ 735
Interest rate on senior notes		5.42%	5.42%
Long term debt, due date		2019	2019

Schedule of Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Debt Instrument [Line Items]
Total	$ 29	$ 51
Total	358	628
Recourse Debt
Debt Instrument [Line Items]
Capital lease obligations	146	169
Other	12	12
Total	358	628
Recourse Debt \| 7.35% debentures, due 2016
Debt Instrument [Line Items]
Capital lease obligations	27	29
Long term debt		18
Other current maturities of long-term debt	2	4
Total	29	51
Recourse Debt \| Senior Secured Notes, due 2019
Debt Instrument [Line Items]
Long term debt		250
Unamortized debt issuance cost		(3)
Senior Secured Notes, due 2019, net		247
Recourse Debt \| Revenue bonds, due in varying amounts periodically through 2029
Debt Instrument [Line Items]
Long term debt	186	186
Recourse Debt \| American & Foreign Power Company, Inc. 5% debentures, due 2030
Debt Instrument [Line Items]
Long term debt	14	14
Non-Recourse Debt
Debt Instrument [Line Items]
Long term debt	735	735
Unamortized premium	63	84
Senior Secured Notes, due 2019, net	$ 798	$ 819

Schedule of Debt (Parenthetical) (Detail)	12 Months Ended
Schedule of Debt (Parenthetical) (Detail)	Dec. 31, 2016	Dec. 26, 2015
Recourse Debt
Debt Instrument [Line Items]
Long term debt, interest rate	5.00%	5.00%
Non-Recourse Debt
Debt Instrument [Line Items]
Long term debt, due date	2019	2019
Long term debt, interest rate	5.42%	5.42%
7.35% debentures, due 2016 \| Recourse Debt
Debt Instrument [Line Items]
Long term debt, due date	2016	2016
Long term debt, interest rate	7.35%	7.35%
Senior Secured Notes, due 2019 \| Recourse Debt
Debt Instrument [Line Items]
Long term debt, due date	2019	2019
Revenue bonds, due in varying amounts periodically through 2029 \| Recourse Debt
Debt Instrument [Line Items]
Long term debt, due date	2029	2029
American & Foreign Power Company, Inc. 5% debentures, due 2030 \| Recourse Debt
Debt Instrument [Line Items]
Long term debt, due date	2030	2030
Long term debt, interest rate	5.00%

Debt - Additional Information (Detail) - USD ($)			12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Sep. 15, 2016	May 25, 2011	Dec. 31, 2016	Dec. 26, 2015
Debt Instrument [Line Items]
Loss on extinguishment of debt			$ (15,000,000)
Amended Credit Agreement
Debt Instrument [Line Items]
Credit Agreement, maximum borrowing capacity		$ 1,200,000,000
Credit Agreement, increased borrowing capacity		$ 250,000,000
Extended maturity date		May 13, 2021
Minimum availability level of borrowings to avoid fixed charge coverage ratio test			125,000,000
Excess of debt default amount resulting termination of Facility			$ 25,000,000
Excess acquisition of ownership percentage resulting termination of Facility			40.00%
Available credit under the Facility			$ 1,000,000,000
Amount outstanding under credit facility			0
Amount outstanding under letters of credit			83,000,000
Average borrowings under the Facility			$ 0
Amended Credit Agreement \| Federal Funds Rate Plus
Debt Instrument [Line Items]
Alternate base rate and one month adjusted LIBOR rate			0.50%
Amended Credit Agreement \| Adjusted LIBO Rate
Debt Instrument [Line Items]
Alternate base rate and one month adjusted LIBOR rate			1.00%
Line Of Credit Sub-Facility
Debt Instrument [Line Items]
Credit Agreement, current borrowing capacity		$ 200,000,000
Letter Of Credit Sub Facility
Debt Instrument [Line Items]
Credit Agreement, current borrowing capacity		400,000,000
Swing Line Loan Facility
Debt Instrument [Line Items]
Credit Agreement, current borrowing capacity		125,000,000
Swing Line Loan Facility to European Borrowers
Debt Instrument [Line Items]
Credit Agreement, current borrowing capacity		$ 25,000,000
Global Availability
Debt Instrument [Line Items]
Minimum availability level of borrowings to avoid cash settlement			$ 150,000,000
European Availability
Debt Instrument [Line Items]
Minimum availability level of borrowings to avoid cash settlement			$ 25,000,000
9.75% senior secured notes, due 2019
Debt Instrument [Line Items]
Long-term debt, interest rate	9.75%
Long-term debt, due date	2019
Long-term debt, redemption price percent	4.875%
Long-term debt, amount notes outstanding	$ 250,000,000
Long-term debt, amount notes redeemed	262,000,000
Loss on extinguishment of debt	(15,000,000)
Long-term debt, redemption premium amount	$ 12,000,000
Recourse Debt
Debt Instrument [Line Items]
Long-term debt, interest rate			5.00%	5.00%
Recourse Debt \| Revenue bonds, due in varying amounts periodically through 2029
Debt Instrument [Line Items]
Senior secured notes, due date			2029	2029
Recourse Debt \| American & Foreign Power Company, Inc. 5% debentures, due 2030
Debt Instrument [Line Items]
Long-term debt, interest rate			5.00%
Senior secured notes, due date			2030	2030
Recourse Debt \| 7.35% debentures, due 2016
Debt Instrument [Line Items]
Long-term debt, interest rate			7.35%	7.35%
Senior secured notes, due date			2016	2016

Schedule of Maturities of Recourse Long-Term Debt and Capital Lease Obligations (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Schedule of Capital Lease Obligations and Recourse Debt [Line Items]
2017	$ 39
2018	35
2019	33
2020	38
2021	28
Thereafter	260
Total	433
Less amount representing interest on capital leases	(46)
Total	387
Total	387
Less: Current portion	(29)
Total long-term debt	$ 358	$ 628

Schedule of Components of Income (Loss) from Continuing Operations before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Schedule Of Components Of Income Loss Before Income Taxes [Line Items]
United States	$ 445	$ 122	$ (286)
Foreign	14	(7)	(5)
Income (loss) from continuing operations before income taxes	$ 459	$ 115	$ (291)

Schedule Income Tax Expense Related to Income (Loss) From Continuing Operations (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Components Of Income Tax Expense Benefit [Line Items]
Federal, Current	$ 17	$ 18	$ (2)
State, Current	6	4	(1)
Foreign, Current	3	1	3
Federal, Deferred	(210)	(1)
State, Deferred	(37)	2	3
Foreign, Deferred	1	(1)	(1)
Income tax expense (benefit)	$ (220)	$ 23	$ 2

Reconciliation Of Income Taxes at Federal Statutory Rate to Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Income Tax Rate Reconciliation [Line Items]
Federal tax computed at the statutory rate	$ 160	$ 40	$ (102)
State taxes, net of Federal benefit	(20)	5	1
Foreign income taxed at rates other than Federal		6	8
Increase (decrease) in valuation allowance	(349)	(46)	85
Non-deductible Merger expenses		11
Other non-deductible expenses	3	4	13
Non-taxable income and additional deductible expenses	(13)	(2)	(2)
Change in unrecognized tax benefits	(3)
Tax expense from intercompany transactions		6
Subpart F and dividend income, net of foreign tax credits	2	1	2
Other items, net		(2)	(3)
Income tax expense (benefit)	$ (220)	$ 23	$ 2

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Income Taxes [Line Items]
Share based compensation expense including tax benefit value		$ 3
Stock options exercised including income tax benefits	$ 2	7
Decreased in unrecognized tax benefits	(4)
Unrecognized Tax Benefits	14	18	$ 22	$ 15
Net uncertain tax positions, if recognized affect effective tax rate	7
Unrecognized Tax Benefits results from positions if sustained offset by change in valuation allowance	7
Impact on income tax expenses due to decrease in unrecognized tax benefits	(3)
Unrecognized tax benefits, interest and penalty expense	3	2
Unrecognized tax benefits, interest and penalty benefit			$ (9)
Unrecognized tax benefits, accrued interest and penalties	6
Decrease in tax credit carryforwards	6
Deferred Income Taxes and Other Long-Term Liabilities
Income Taxes [Line Items]
Deferred income tax liabilities	3	$ 2
Capital loss carryover
Income Taxes [Line Items]
Capital loss carryover, amount to offset future capital gains	$ 555
Capital loss carryover, expiration year	2021
Valuation Allowance of Deferred Tax Assets
Income Taxes [Line Items]
Decrease in valuation allowance	$ (382)
Valuation allowance, foreign currency translation adjustments	349
U.S. Federal and State
Income Taxes [Line Items]
Alternate minimum tax credit carryforwards	89
Estimated valuation allowance, determined to be reversed in 2016	382
Foreign
Income Taxes [Line Items]
Operating Loss Carry forwards	$ 91
Foreign \| Minimum
Income Taxes [Line Items]
Operating loss carryforwards, expiration dates	2018
Foreign \| Maximum
Income Taxes [Line Items]
Operating loss carryforwards, expiration dates	2036
Foreign \| Expire in 2017
Income Taxes [Line Items]
Operating Loss Carry forwards	$ 0
Foreign \| Indefinite Carryforward
Income Taxes [Line Items]
Operating Loss Carry forwards	35
State
Income Taxes [Line Items]
Operating Loss Carry forwards	$ 1,200
State \| Minimum
Income Taxes [Line Items]
Operating loss carryforwards, expiration dates	2018
State \| Maximum
Income Taxes [Line Items]
Operating loss carryforwards, expiration dates	2036
State \| Expire in 2017
Income Taxes [Line Items]
Operating Loss Carry forwards	$ 37
U.S. Federal Foreign
Income Taxes [Line Items]
Capital loss carryover, amount to offset future capital gains	$ 96
U.S. Federal Foreign \| Earliest Tax Year
Income Taxes [Line Items]
Capital loss carryover, expiration year	2019
U.S. Federal Foreign \| Latest Tax Year
Income Taxes [Line Items]
Capital loss carryover, expiration year	2026
State and Foreign
Income Taxes [Line Items]
Capital loss carryover, amount to offset future capital gains	$ 13
State and Foreign \| Earliest Tax Year
Income Taxes [Line Items]
Capital loss carryover, expiration year	2023
State and Foreign \| Latest Tax Year
Income Taxes [Line Items]
Capital loss carryover, expiration year	2027
State and Foreign \| Indefinite Carryforward
Income Taxes [Line Items]
Capital loss carryover, amount to offset future capital gains	$ 3

Schedule of Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Components Of Deferred Income Tax Assets And Liabilities [Line Items]
U.S. and foreign loss carryforwards	$ 275	$ 79
Deferred rent credit	61	68
Pension and other accrued compensation	134	200
Accruals for facility closings	29	43
Inventory	20	19
Self-insurance accruals	29	33
Deferred revenue	24	45
U.S. and foreign income tax credit carryforwards	197	223
Allowance for bad debts	5	12
Accrued expenses	28	32
Basis difference in fixed assets	69	73
Other items, net	5
Gross deferred tax assets	876	827
Valuation allowance	(140)	(522)
Deferred tax assets	736	305
Internal software	5	5
Installment gain on sale of timberlands	260	263
Deferred Subpart F income		27
Undistributed foreign earnings	8	2
Deferred tax liabilities	273	297
Net deferred tax assets	$ 463	$ 8

Summary of Valuation Allowances (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Income Taxes [Line Items]
Beginning balance	$ 522
Ending balance	140	$ 522
Valuation Allowance of Deferred Tax Assets
Income Taxes [Line Items]
Beginning balance	522	571	$ 448
Additions, charged to expense			123
Reductions	(382)	(49)
Ending balance	$ 140	$ 522	$ 571

Summary of Activity Related to Unrecognized Tax Benefit (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Unrecognized Tax Benefits Summary [Line Items]
Beginning balance	$ 18	$ 22	$ 15
Increase related to current year tax positions	1	1	6
Increase related to prior year tax positions		1	4
Decrease related to prior year tax positions		(5)	(2)
Decrease related to lapse of statute of limitations		(1)
Decrease related to settlements with taxing authorities	(5)		(1)
Ending balance	$ 14	$ 18	$ 22

Leases - Additional Information (Detail) $ in Millions	12 Months Ended
Leases - Additional Information (Detail) $ in Millions	Dec. 31, 2016 USD ($) Phase	Dec. 26, 2015 USD ($)	Dec. 27, 2014 USD ($)
Operating Leased Assets [Line Items]
Rent related accruals	$ 196	$ 221
Rent expense including equipment rental	484	513	$ 602
Sublease income	2	4	5
Off-market unfavorable lease liability	10	18
Net amortization of favorable and unfavorable lease values	$ 4	$ 6	$ 7
Minimum
Operating Leased Assets [Line Items]
Operating Leases Renewal Option \| Phase	1

Future Minimum Lease Payments Due Under Non-Cancelable Portions Of Leases (Detail) $ in Millions	Dec. 31, 2016 USD ($)
Operating Leased Assets [Line Items]
2017	$ 486
2018	369
2019	275
2020	180
2021	104
Thereafter	173
Total before sublease income	1,587
Less sublease income	(31)
Total	$ 1,556

Stockholders' Equity - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Jul. 31, 2016	May 31, 2016
Shareholders Equity [Line Items]
Stock repurchase program, shares purchased	37,000,000	0
Stock repurchase program, shares purchased at cost	$ 132,000,000
Stock repurchase program, remaining authorized repurchase amount	$ 118,000,000
Treasury stock, shares	42,802,998	5,915,268
Preferred Stock
Shareholders Equity [Line Items]
Preferred stock, shares authorized	1,000,000	1,000,000
Redeemable preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Maximum
Shareholders Equity [Line Items]
Stock repurchase program, authorized amount			$ 250,000,000	$ 100,000,000
Maximum \| Amended Credit Agreement
Shareholders Equity [Line Items]
Debt instrument debt covenants aggregate amount of equity interest acquisition limit	$ 125,000,000
Minimum \| Amended Credit Agreement
Shareholders Equity [Line Items]
Debt instrument debt covenants, liquidity amount to be maintained to invest beyond the ownership acquisition limit	500,000,000
Debt instrument debt covenants, current borrowing capacity amount to be maintained to invest beyond the ownership acquisition limit	$ 400,000,000

Accumulated Other Comprehensive Income Activity, Net of Tax (Detail) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss) activity before reclassifications

$ 1,603

$ (76)

Reclassification of foreign currency translation adjustments realized upon disposal of business

^[1]

(164)

Tax impact

(14)

(1)

Total other comprehensive (loss), net of tax, where applicable

(159)

(77)

$ (165)

Foreign Currency Translation Adjustments

1,852

1,603

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss) activity before reclassifications

108

186

(11)

(78)

Reclassification of foreign currency translation adjustments realized upon disposal of business

^[1]

(164)

Total other comprehensive (loss), net of tax, where applicable

(175)

(78)

Change in Deferred Pension

(67)

108

186

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss) activity before reclassifications

(78)

(79)

Tax impact

(14)

(1)

Total other comprehensive (loss), net of tax, where applicable

Accumulated Other Comprehensive Income (Loss)

(62)

(78)

(79)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Total other comprehensive (loss), net of tax, where applicable

107

(159)

(77)

(165)

Net income (loss) from continuing operations

$ (129)

$ 30

$ 107

[1]	Amounts in parentheses indicate an increase to earnings.

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014	Dec. 29, 2007	Dec. 28, 2013
Employee Benefit Plans [Line Items]
Stock option grants, exercise price, minimum percentage on fair market value				100.00%
Number of option granted during period	0	0	0
Intrinsic value of options exercised	$ 5.0	$ 12.0	$ 27.0
Intrinsic value of options outstanding	0.7
Intrinsic value of options exercisable	$ 0.7
Number of exercisable shares	4,100,000	5,100,000
Performance Based Stock Incentive Program
Employee Benefit Plans [Line Items]
Award vesting period	3 years
Shares granted in period	9,635,184	2,745,303	5,289,047
Stock-based compensation expense not yet recognized relating to non-vested awards	$ 29.0
Stock-based compensation expense relating to non-vested awards, weighted-average recognition period, years	1 year 10 months 24 days
Shares outstanding, Number	13,742,384	8,589,114	6,808,964		3,076,292
Estimated number of shares expected to vest	12,900,000
Fair value of shares vested	$ 0.7
Restricted Stock and Restricted Stock Units
Employee Benefit Plans [Line Items]
Shares granted in period	10,099,481	2,886,640	5,809,821
Shares outstanding, Number	12,747,791	9,588,889	10,708,372		10,207,546
Restricted Stock
Employee Benefit Plans [Line Items]
Award vesting period	3 years
Stock-based compensation expense not yet recognized relating to non-vested awards	$ 27.0
Stock-based compensation expense relating to non-vested awards, weighted-average recognition period, years	2 years
Fair value of shares vested	$ 19.0
Director \| Restricted Stock and Restricted Stock Units
Employee Benefit Plans [Line Items]
Shares granted in period	400,000
Shares outstanding, Number	3,100,000
Employees \| Restricted Stock and Restricted Stock Units
Employee Benefit Plans [Line Items]
Shares outstanding, Number	9,600,000
Estimated number of shares expected to vest	9,200,000
Minimum \| Prior Plans
Employee Benefit Plans [Line Items]
Award vesting period				1 year
Minimum \| Prior Plans \| Portion of the awards vest annually
Employee Benefit Plans [Line Items]
Award vesting period				1 year
Maximum \| Prior Plans
Employee Benefit Plans [Line Items]
Award vesting period				5 years
Stock options expiration period				10 years
Maximum \| Prior Plans \| Portion of the awards vest annually
Employee Benefit Plans [Line Items]
Award vesting period				3 years

Summary of Stock Option Activity Awards (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of year, Shares	5,779,597	8,602,626	22,702,534
Granted, Shares	0	0	0
Forfeited, Shares	(108,818)	(574,967)	(1,323,664)
Exercised, Shares	(1,614,243)	(2,248,062)	(12,776,244)
Outstanding at end of year, Shares	4,056,536	5,779,597	8,602,626
Outstanding at beginning of year, Weighted Average Exercise Price	$ 4.53	$ 4.53	$ 4.48
Granted, Weighted Average Exercise Price	0	0	0
Forfeited, Weighted Average Exercise Price	5.04	9.29	10.46
Exercised, Weighted Average Exercise Price	1.89	3.34	3.83
Outstanding at end of year, Weighted Average Exercise Price	$ 5.56	$ 4.53	$ 4.53

Summary of Information About Stock Options Outstanding and Exercisable (Detail)	12 Months Ended
	Dec. 31, 2016 $ / shares shares
$0.83 - $3.00
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding By Exercise Price [Line Items]
Range of Exercise Prices, Minimum	$ 0.83
Range of Exercise Prices, Maximum	$ 3.00
Options Outstanding \| shares	183,862
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	1 year 8 months 16 days
Options Outstanding, Weighted Average Exercise Price	$ 1.64
Options Exercisable \| shares	183,862
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	1 year 8 months 16 days
Options Exercisable, Weighted Average Exercise Price	$ 1.64
$3.01 - $5.12
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding By Exercise Price [Line Items]
Range of Exercise Prices, Minimum	3.01
Range of Exercise Prices, Maximum	$ 5.12
Options Outstanding \| shares	569,901
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	1 year 7 days
Options Outstanding, Weighted Average Exercise Price	$ 4.34
Options Exercisable \| shares	569,901
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	1 year 7 days
Options Exercisable, Weighted Average Exercise Price	$ 4.34
$5.13 (option exchange)
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding By Exercise Price [Line Items]
Range of Exercise Prices, Minimum	$ 5.13
Options Outstanding \| shares	183,993
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	5 months 5 days
Options Outstanding, Weighted Average Exercise Price	$ 5.13
Options Exercisable \| shares	183,993
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	5 months 5 days
Options Exercisable, Weighted Average Exercise Price	$ 5.13
$5.14 - $8.00
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding By Exercise Price [Line Items]
Range of Exercise Prices, Minimum	5.14
Range of Exercise Prices, Maximum	$ 8.00
Options Outstanding \| shares	2,806,280
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	5 years 18 days
Options Outstanding, Weighted Average Exercise Price	$ 5.64
Options Exercisable \| shares	2,806,280
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	5 years 18 days
Options Exercisable, Weighted Average Exercise Price	$ 5.64
$8.01 - $11.27
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding By Exercise Price [Line Items]
Range of Exercise Prices, Minimum	8.01
Range of Exercise Prices, Maximum	$ 11.27
Options Outstanding \| shares	312,500
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	2 months 5 days
Options Outstanding, Weighted Average Exercise Price	$ 9.64
Options Exercisable \| shares	312,500
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	2 months 5 days
Options Exercisable, Weighted Average Exercise Price	$ 9.64
$0.83 - $11.27
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding By Exercise Price [Line Items]
Range of Exercise Prices, Minimum	0.83
Range of Exercise Prices, Maximum	$ 11.27
Options Outstanding \| shares	4,056,536
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	3 years 9 months 4 days
Options Outstanding, Weighted Average Exercise Price	$ 5.56
Options Exercisable \| shares	4,056,536
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	3 years 9 months 4 days
Options Exercisable, Weighted Average Exercise Price	$ 5.56

Summary of Status of Nonvested Shares (Detail) - Restricted Stock and Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of the period, Shares	9,588,889	10,708,372	10,207,546
Granted, Shares	10,099,481	2,886,640	5,809,821
Vested, Share	(3,521,765)	(3,370,569)	(4,179,789)
Forfeited, Share	(3,418,814)	(635,554)	(1,129,206)
Outstanding at end of the period, shares	12,747,791	9,588,889	10,708,372
Outstanding at beginning of the period, Weighted Average Grant-Date Price	$ 6.07	$ 4.65	$ 4.76
Granted, Weighted Average Grant-Date Price	3.53	9.43	4.33
Vested, Weighted Average Grant-Date Price	5.31	4.46	4.75
Forfeited, Weighted Average Grant-Date Price	4.51	5.94	3.65
Outstanding at end of the period, Weighted Average Grant-Date Price	$ 4.41	$ 6.07	$ 4.65

Summary of the Activity in the Performance-Based Long-Term Incentive Program Since Inception (Detail) - Performance Based Stock Incentive Program - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of the period, Shares	8,589,114	6,808,964	3,076,292
Granted, Shares	9,635,184	2,745,303	5,289,047
Vested, Shares	(161,408)	(283,244)	(1,246,006)
Forfeited, Shares	(4,320,506)	(681,909)	(310,369)
Outstanding at end of the period, shares	13,742,384	8,589,114	6,808,964
Outstanding at beginning of the period, Weighted Average Grant-Date Price	$ 5.95	$ 4.43	$ 4.45
Granted, Weighted Average Grant-Date Price	3.37	9.45	4.55
Vested, Weighted Average Grant-Date Price	4.32	3.98	3.74
Forfeited, Weighted Average Grant-Date Price	5.69	5.67	4.16
Outstanding at end of the period, Weighted Average Grant-Date Price	$ 4.66	$ 5.95	$ 4.43

Changes in Pension and Other Postretirement Benefit Obligations, Plan Assets and Funded Status (Detail) - North America - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Obligation at beginning of period	$ 1,094	$ 1,218
Service cost	7	3	$ 3
Interest cost	45	46	52
Actuarial (gain) loss	(8)	(78)
Benefits paid	(138)	(95)
Obligation at end of period	1,000	1,094	1,218
Fair value of plan assets at beginning of period	922	1,039
Actual return (loss) on plan assets	84	(30)
Employer contribution	2	8
Benefits paid	(138)	(95)
Fair value of plan assets at end of period	870	922	1,039
Net liability recognized at end of period	(130)	(172)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Obligation at beginning of period	13	17
Interest cost	1	1	1
Actuarial (gain) loss		(2)
Currency exchange rate change		(2)
Benefits paid	(1)	(1)
Obligation at end of period	13	13	$ 17
Employer contribution	1	1
Benefits paid	(1)	(1)
Net liability recognized at end of period	$ (13)	$ (13)

Amounts Recognized in Consolidated Balance Sheets Related to Defined Benefit Pension and Other Postretirement Benefit Plans (Detail) - North America - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Noncurrent assets	$ 0	$ 0
Current liabilities	(2)	(3)
Noncurrent liabilities	(128)	(169)
Net amount recognized	(130)	(172)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Noncurrent assets	0	0
Current liabilities	(1)	(1)
Noncurrent liabilities	(12)	(12)
Net amount recognized	$ (13)	$ (13)

Components of Net Periodic Pension Cost (Benefit) (Detail) - North America - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 7	$ 3	$ 3
Interest cost	45	46	52
Expected return on plan assets	(55)	(56)	(62)
Net periodic cost (benefit)	(3)	(7)	(7)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1	1	1
Net periodic cost (benefit)	$ 1	$ 1	$ 1

Other Changes In Plan Assets and Benefit Obligations Recognized In Other Comprehensive Loss (Income) (Detail) - North America - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Accumulated other comprehensive loss (income) at beginning of year	$ 76	$ 67	$ (26)
Net loss (gain)	(38)	9	93
Accumulated other comprehensive loss (income) at end of year	38	76	67
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Accumulated other comprehensive loss (income) at beginning of year	(1)	1
Net loss (gain)		(2)	1
Accumulated other comprehensive loss (income) at end of year	$ (1)	$ (1)	$ 1

Employee Benefit Plans - Additional Information (Detail) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016 USD ($)	Dec. 31, 2016 GBP (£)	Dec. 26, 2015 USD ($)	Dec. 27, 2014 USD ($)
Discontinued Operations \| European Business \| Pension Plan - UK
Defined Benefit Plan Disclosure [Line Items]
Defined benefit pension plan, contributed amount \| £			£ 20
Worldwide Defined Contribution Plans
Defined Benefit Plan Disclosure [Line Items]
Compensation expense relating to retirement savings plans		$ 20,000,000		$ 20,000,000	$ 14,000,000
Maximum
Defined Benefit Plan Disclosure [Line Items]
Accumulated other comprehensive loss, expected to be amortized		1,000,000
Change in Mortality Table
Defined Benefit Plan Disclosure [Line Items]
Decrease in pension obligations		(19,000,000)		(25,000,000)
Change in Mortality Table \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Decrease in other postretirement obligations		$ (1,000,000)		$ (1,000,000)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected long-term return on plan assets		6.00%	6.00%	5.85%	6.50%
North America \| Scenario, Forecast
Defined Benefit Plan Disclosure [Line Items]
Expected long-term return on plan assets	5.76%
North America \| US Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset target allocation, Minimum		13.00%	13.00%
Plan asset target allocation, Maximum		23.00%	23.00%
North America \| International Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset target allocation, Minimum		8.00%	8.00%
Plan asset target allocation, Maximum		18.00%	18.00%
North America \| Global Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset target allocation, Minimum		5.00%	5.00%
Plan asset target allocation, Maximum		15.00%	15.00%
North America \| Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset target allocation, Minimum		53.00%	53.00%
Plan asset target allocation, Maximum		63.00%	63.00%
North America \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Impact of one-percentage-point change on operating income		$ 1,000,000
North America \| Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Pension contributions, current period		3,000,000
Pension contributions, for 2017		3,000,000
Defined benefit pension plan, contributed amount		$ 2,000,000		$ 8,000,000
Europe
Defined Benefit Plan Disclosure [Line Items]
Expected long-term return on plan assets		4.07%	4.07%	4.78%	5.55%
Defined benefit pension plan, contributed amount		$ 29,000,000
Deferred (loss) gain included in accumulated other comprehensive income		$ (1,000,000)		$ 7,000,000
Percentage of allowance expense on assets		0.50%	0.50%
Europe \| United Kingdom Government Securities
Defined Benefit Plan Disclosure [Line Items]
Incremental return on UK government securities		4.00%	4.00%

Weighted Average Assumptions Used in the Measurement of Benefit Obligations (Detail) - North America	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Pension Benefits
Weighted Average Discount Rate [Line Items]
Discount rate	4.11%	4.33%	3.91%
Other Benefits, United States
Weighted Average Discount Rate [Line Items]
Discount rate	3.60%	3.70%	3.40%
Other Benefits, Canada
Weighted Average Discount Rate [Line Items]
Discount rate	3.80%	4.00%	4.00%

Weighted Average Assumptions Used in the Measurement of Net Periodic Benefit Cost (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.33%	3.91%	4.84%
Expected long-term rate of return on plan assets	6.00%	5.85%	6.50%
Other Benefits, United States
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.70%	3.40%	4.00%
Other Benefits, Canada
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.00%	4.00%	4.80%

Assumed Healthcare Cost Trend Rates (Detail) - North America	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Weighted average assumptions as of year-end:
Healthcare cost trend rate assumed for next year	5.90%	6.20%	6.40%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.50%	4.50%	4.50%
Year that the rate reaches the ultimate trend rate	2022	2022	2022

Allocation of Pension Plan Assets by Category (Detail) - North America	Dec. 31, 2016	Dec. 26, 2015
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	10000.00%	10000.00%
Money Market Funds
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	300.00%	200.00%
US Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	1100.00%	900.00%
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	5000.00%	5700.00%
Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	3600.00%	3100.00%
Other
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets		100.00%

Fair Value of Pension Plan Assets (Detail) - North America - Pension Benefits - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 870	$ 922	$ 1,039
Money Market Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	25	19
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	93	87
Equity Securities \| U S Large Cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	29	25
Equity Securities \| Us Small And Mid Cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4	4
Equity Securities \| International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	60	58
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	437	519
Fixed Income Securities \| Corporate Bond Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	407	485
Fixed Income Securities \| US Treasury Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14	10
Fixed Income Securities \| Other Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	16	24
All Other Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	315	297
All Other Securities \| Equity Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		290
All Other Securities \| Other Including Plan Receivables And Payables
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3	7
All Other Securities \| Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	312
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	96	94
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	93	87
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities \| U S Large Cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	29	25
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities \| Us Small And Mid Cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	4	4
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities \| International
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	60	58
Quoted Prices in Active Markets for Identical Assets (Level 1) \| All Other Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3	7
Quoted Prices in Active Markets for Identical Assets (Level 1) \| All Other Securities \| Other Including Plan Receivables And Payables
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3	7
Significant Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	774	828
Significant Observable Inputs (Level 2) \| Money Market Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	25	19
Significant Observable Inputs (Level 2) \| Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	437	519
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| Corporate Bond Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	407	485
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| US Treasury Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14	10
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| Other Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	16	24
Significant Observable Inputs (Level 2) \| All Other Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	312	290
Significant Observable Inputs (Level 2) \| All Other Securities \| Equity Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		$ 290
Significant Observable Inputs (Level 2) \| All Other Securities \| Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 312

Estimated Future Benefit Payments (Detail) - North America $ in Millions	Dec. 31, 2016 USD ($)
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2017	$ 87
2018	85
2019	82
2020	80
2021	77
Next five years	346
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
2017	1
2018	1
2019	1
2020	1
2021	1
Next five years	$ 4

Schedule Of Reconciliation Of Changes In Projected Benefit Obligation, Fair Value Of Plan Assets And Funded Status Of Plan (Detail) - Europe - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Obligation at beginning of period	$ 210	$ 239
Service cost	0	0	$ 0
Interest cost	7	9	10
Benefits paid	(6)	(7)
Actuarial (gain) loss	59	(20)
Currency translation	(40)	(11)
Obligation at end of period	230	210	239
Fair value of plan assets at beginning of period	240	257
Actual return on plan assets	62	2
Company contributions	29
Benefits paid	(6)	(7)
Currency translation	(47)	(12)
Fair value of plan assets at end of period	278	240	$ 257
Net asset recognized at end of period	$ 48	$ 30

Components of Net Periodic Pension (Benefit) Cost (Detail) - Europe - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0
Interest cost	7	9	10
Expected return on plan assets	(10)	(14)	(14)
Net periodic pension benefit	$ (3)	$ (5)	$ (4)

Assumptions Used in Calculating Funded Status (Detail) - Europe	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets	4.07%	4.78%	5.55%
Discount rate	2.70%	3.90%	3.80%
Inflation	3.20%	3.00%	3.10%

Allocation of Plan Assets (Detail) - Europe	Dec. 31, 2016	Dec. 26, 2015
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	100.00%	100.00%
Cash
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	9.00%
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	21.00%	50.00%
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	70.00%	50.00%

Fair value of Plan Assets (Detail) - Europe - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	$ 278	$ 240	$ 257
Cash
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	25
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	60	120
Equity Securities \| Developed Markets Equity Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	19	70
Equity Securities \| Emerging Markets Equity Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	7	15
Equity Securities \| Mutual Funds Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	7	8
Equity Securities \| Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	27	27
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	193	120
Fixed Income Securities \| UK debt funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	62	25
Fixed Income Securities \| Liability Term Matching Debt Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	109	71
Fixed Income Securities \| Emerging Markets Debt Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	2	8
Fixed Income Securities \| High Yield Debt
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	20	16
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	51	85
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Cash
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	25
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	26	85
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities \| Developed Markets Equity Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	19	70
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities \| Emerging Markets Equity Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	7	15
Significant Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	220	147
Significant Observable Inputs (Level 2) \| Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	27	27
Significant Observable Inputs (Level 2) \| Equity Securities \| Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	27	27
Significant Observable Inputs (Level 2) \| Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	193	120
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| UK debt funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	62	25
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| Liability Term Matching Debt Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	109	71
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| Emerging Markets Debt Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	2	8
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| High Yield Debt
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	20	16
Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	7	8
Significant Unobservable Inputs (Level 3) \| Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	7	8
Significant Unobservable Inputs (Level 3) \| Equity Securities \| Mutual Funds Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	$ 7	$ 8

Reconciliation of the Change in Fair Value of the Pension Plan Assets Calculated based on Level 3 Inputs (Detail) - Europe - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015
Schedule of Pension Plan Assets by Fair Value [Line Items]
Currency translation	$ (47)	$ (12)
Significant Unobservable Inputs (Level 3)
Schedule of Pension Plan Assets by Fair Value [Line Items]
Balance at December 26, 2015	8
Currency translation	(1)
Balance at December 31, 2016	$ 7	$ 8

Anticipated Benefit Payments (Detail) - Europe $ in Millions	Dec. 31, 2016 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2017	$ 6
2018	6
2019	6
2020	7
2021	7
Next five years	$ 36

Calculation of Net Earnings (Loss) Per Common Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

9 Months Ended

12 Months Ended

Dec. 31, 2016

^[1]

Sep. 24, 2016

^[1],[3]

Jun. 25, 2016

^[1]

Mar. 26, 2016

^[1]

Dec. 26, 2015

^[4]

Sep. 26, 2015

^[4]

Jun. 27, 2015

^[4]

Mar. 28, 2015

^[4]

Sep. 24, 2016

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Earnings Per Share [Line Items]

$ 55

^[2]

$ 330

^[2]

$ 232

^[2]

$ 62

^[2]

$ 31

^[5]

$ 42

^[5]

$ (31)

^[5]

$ 49

^[5]

$ 679

$ 92

$ (293)

Loss from discontinued operations, net of tax

(137)

(22)

(16)

(36)

(27)

(4)

$ (175)

(150)

(84)

(59)

Less: Results attributable to the noncontrolling interests

Weighted-average shares outstanding

$ 80

$ 193

$ 210

$ 46

$ 15

^[5]

$ 6

^[5]

$ (58)

^[5]

$ 45

^[5]

$ 449

$ 529

$ 8

$ (354)

539

547

535

Basic earnings (loss) per share:

$ 0.11

^[6]

$ 0.62

^[6]

$ 0.42

^[6]

$ 0.11

^[6]

$ 0.06

^[6]

$ 0.08

^[6]

$ (0.06)

^[6]

$ 0.09

^[6]

$ 1.26

$ 0.17

$ (0.55)

0.05

^[6]

(0.26)

^[6]

(0.04)

^[6]

(0.03)

^[6]

(0.03)

^[6]

(0.07)

^[6]

(0.05)

^[6]

(0.01)

^[6]

$ (0.32)

(0.28)

(0.15)

(0.11)

Net income (loss) from continuing operations

$ 0.15

^[6]

$ 0.36

^[6]

$ 0.38

^[6]

$ 0.08

^[6]

$ 0.03

^[6]

$ 0.01

^[6]

$ (0.11)

^[6]

$ 0.08

^[6]

$ 0.82

$ 0.98

$ 0.01

$ (0.66)

$ 55

^[2]

$ 330

^[2]

$ 232

^[2]

$ 62

^[2]

$ 31

^[5]

$ 42

^[5]

$ (31)

^[5]

$ 49

^[5]

$ 679

$ 92

$ (293)

Loss from discontinued operations, net of tax

(137)

(22)

(16)

(36)

(27)

(4)

$ (175)

(150)

(84)

(59)

Less: Results attributable to the noncontrolling interests

Weighted-average shares outstanding

$ 80

$ 193

$ 210

$ 46

$ 15

^[5]

$ 6

^[5]

$ (58)

^[5]

$ 45

^[5]

$ 449

$ 529

$ 8

$ (354)

539

547

535

Stock options and restricted stock

Diluted weighted-average shares outstanding

549

555

535

$ 0.10

^[6]

$ 0.61

^[6]

$ 0.41

^[6]

$ 0.11

^[6]

$ 0.06

^[6]

$ 0.08

^[6]

$ (0.06)

^[6]

$ 0.09

^[6]

$ 1.24

$ 0.16

$ (0.55)

0.05

^[6]

(0.25)

^[6]

(0.04)

^[6]

(0.03)

^[6]

(0.03)

^[6]

(0.07)

^[6]

(0.05)

^[6]

(0.01)

^[6]

$ (0.32)

(0.27)

(0.15)

(0.11)

$ 0.15

^[6]

$ 0.35

^[6]

$ 0.38

^[6]

$ 0.08

^[6]

$ 0.03

^[6]

$ 0.01

^[6]

$ (0.11)

^[6]

$ 0.08

^[6]

$ 0.81

$ 0.96

$ 0.01

$ (0.66)

[1]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The first quarter and second quarter amounts reflect application of discontinued operations accounting that was effective in the third quarter.
[2]	In the first, second, third and fourth quarters of 2016, captions include pre-tax Merger, restructuring, and other operating expenses, net totaling $40 million, $(193) million, $31 million and $43 million, respectively, and asset impairments of $0 million, $0 million, $9 million and $6 million, respectively. The second quarter of 2016 Merger, restructuring and other operating expenses, net includes $250 million Termination Fee received pursuant to termination of the Staples Merger Agreement. The third quarter and fourth quarters include non-cash tax benefits of approximately $240 million and $140 million, respectively, from the release of valuation allowances on deferred tax assets.
[3]	The amounts in the table above for the third quarter 2016 are as corrected to adjust for an error that was not material to the overall presentation. When the Company committed to a plan to sell substantially all of the business formerly reported as the International Division, it provided reference to the cumulative translation adjustment ("CTA") balance that existed at the end of the third quarter 2016, but did not include CTA in its impairment analysis. As a result, the loss amount of Discontinued operations, net of tax was overstated. The measurement has been corrected for the full year 2016 amounts. This correcting adjustment is provided below and would impact the same captioned line items in various portions of the third quarter financial statements by the same amount, as well as the current assets of discontinued operations, accumulated deficit and totals including those accounts.
[4]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The amounts reflect application of discontinued operations accounting.
[5]	In the first, second, third and fourth quarters of 2015, captions include pre-tax Merger, restructuring, and other operating expenses, net totaling $29 million, $96 million, $79 million and $38 million, respectively, and asset impairments of $5 million, $4 million, $1 million and $3 million, respectively.
[6]	The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding.

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Nonvested Stock Options and Shares
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Shares excluded from computation of diluted earnings per share	6	4	9
Stock Options and Restricted Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Shares excluded from computation of diluted earnings per share			8

Derivative Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 24, 2016	Jun. 25, 2016	Mar. 26, 2016	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges	$ 6,000,000	$ 9,000,000	$ 0	$ 0	$ 3,000,000	$ 1,000,000	$ 4,000,000	$ 5,000,000	$ 15,000,000	$ 13,000,000	$ 56,000,000
Website Development Costs and Capitalized Software
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges											25,000,000
Retail Stores
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges									8,000,000	12,000,000	26,000,000
Retail Stores \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges									$ 7,000,000	$ 1,000,000	$ 5,000,000
Percentage used for analysis									13.00%	12.00%	13.00%
Retail Stores \| Significant Unobservable Inputs (Level 3) \| A 100 basis point decrease in anticipated sales
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decrease in sales for scenario									1.00%
Decrease in gross margin for scenario									0.50%
Retail Stores \| Significant Unobservable Inputs (Level 3) \| A 100 basis point decrease in anticipated sales \| Additional impairment charges
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges									$ 2,000,000
Retail Stores \| Significant Unobservable Inputs (Level 3) \| 50 basis point decrease in anticipated gross margins
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decrease in sales for scenario									1.00%
Retail Stores \| Significant Unobservable Inputs (Level 3) \| 50 basis point decrease in anticipated gross margins \| Additional impairment charges
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges									$ 5,000,000
Foreign Exchange Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contracts expiration date									2017-12
Fuel Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contracts expiration date									2017-01
Derivative Fuel Contracts Payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Accrued expenses and other liabilities					$ 2,000,000					$ 2,000,000
Derivative Fuel Contracts Payable \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Accrued expenses and other liabilities	$ 1,000,000								$ 1,000,000

Schedule of Fair Value of Senior Notes (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Timber notes receivable	$ 884	$ 909
Company-owned life insurance	89	88
Recourse Debt \| 9.75% senior secured notes, due 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value		265
Recourse Debt \| 7.35% debentures, due 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value		18
Recourse Debt \| Revenue bonds, due in varying amounts periodically through 2029
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	181	186
Recourse Debt \| American & Foreign Power Company, Inc. 5% debentures, due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	12	13
Non-Recourse Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	800	825
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Timber notes receivable	885	905
Company-owned life insurance	89	88
Carrying Value \| Recourse Debt \| 9.75% senior secured notes, due 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value		250
Carrying Value \| Recourse Debt \| 7.35% debentures, due 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value		18
Carrying Value \| Recourse Debt \| Revenue bonds, due in varying amounts periodically through 2029
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	186	186
Carrying Value \| Recourse Debt \| American & Foreign Power Company, Inc. 5% debentures, due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	14	14
Carrying Value \| Non-Recourse Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 798	$ 819

Schedule of Fair Value of Senior Notes (Parenthetical) (Detail)		12 Months Ended
	Sep. 15, 2016	Dec. 31, 2016	Dec. 26, 2015
Recourse Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		5.00%	5.00%
9.75% senior secured notes, due 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate	9.75%
Long-term debt, due date	2019
9.75% senior secured notes, due 2019 \| Recourse Debt \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		9.75%	9.75%
Long-term debt, due date		2019	2019
9.75% senior secured notes, due 2019 \| Recourse Debt \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		9.75%	9.75%
Long-term debt, due date		2019	2019
7.35% debentures, due 2016 \| Recourse Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		7.35%	7.35%
7.35% debentures, due 2016 \| Recourse Debt \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		7.35%	7.35%
Long-term debt, due date		2016	2016
7.35% debentures, due 2016 \| Recourse Debt \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		7.35%	7.35%
Long-term debt, due date		2016	2016
Revenue bonds, due in varying amounts periodically through 2029 \| Recourse Debt \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, due date		2029	2029
Revenue bonds, due in varying amounts periodically through 2029 \| Recourse Debt \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, due date		2029	2029
American & Foreign Power Company, Inc. 5% debentures, due 2030 \| Recourse Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		5.00%
American & Foreign Power Company, Inc. 5% debentures, due 2030 \| Recourse Debt \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		5.00%	5.00%
Long-term debt, due date		2030	2030
American & Foreign Power Company, Inc. 5% debentures, due 2030 \| Recourse Debt \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate		5.00%	5.00%
Long-term debt, due date		2030	2030

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Commitments and Contingencies Disclosure [Line Items]
Purchases under the agreement	$ 585	$ 612	$ 647
Minimum
Commitments and Contingencies Disclosure [Line Items]
Losses for environmental liabilities	10
Maximum
Commitments and Contingencies Disclosure [Line Items]
Losses for environmental liabilities	$ 25

Segment Information - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) Customer Segment	Dec. 26, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| Segment	2
Number of customers accounting for 10% or more of the total sales \| Customer	0
Goodwill	$ 363	$ 363
North American Retail Division
Segment Reporting Information [Line Items]
Goodwill	78
North American Business Solutions Division
Segment Reporting Information [Line Items]
Goodwill	$ 285

Segment Information (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 24, 2016

^[1],[2]

Jun. 25, 2016

^[1]

Mar. 26, 2016

^[1]

Dec. 26, 2015

Sep. 26, 2015

^[3]

Jun. 27, 2015

^[3]

Mar. 28, 2015

^[3]

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

$ 2,725

^[1]

$ 2,836

$ 2,583

$ 2,876

$ 2,767

^[3]

$ 3,046

$ 2,784

$ 3,131

$ 11,021

$ 11,727

$ 12,710

565

539

359

111

144

Charges for losses on receivables and inventories

181

253

277

5,540

6,442

5,540

6,442

6,757

Other

Operating Segments | North American Retail Division

5,603

6,004

6,528

299

310

126

Charges for losses on receivables and inventories

130

140

Operating Segments | North American Business Solutions Division

1,542

1,625

1,542

1,625

1,736

5,400

5,708

6,013

265

226

232

Charges for losses on receivables and inventories

Corporate, Eliminations, and Discontinued Operations

1,713

1,607

1,713

1,607

1,687

^[4]

155

^[4]

^[4]

^[4]

$ 2,281

$ 3,206

$ 2,281

$ 3,206

$ 3,330

[1]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The first quarter and second quarter amounts reflect application of discontinued operations accounting that was effective in the third quarter.
[2]	The amounts in the table above for the third quarter 2016 are as corrected to adjust for an error that was not material to the overall presentation. When the Company committed to a plan to sell substantially all of the business formerly reported as the International Division, it provided reference to the cumulative translation adjustment ("CTA") balance that existed at the end of the third quarter 2016, but did not include CTA in its impairment analysis. As a result, the loss amount of Discontinued operations, net of tax was overstated. The measurement has been corrected for the full year 2016 amounts. This correcting adjustment is provided below and would impact the same captioned line items in various portions of the third quarter financial statements by the same amount, as well as the current assets of discontinued operations, accumulated deficit and totals including those accounts.
[3]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The amounts reflect application of discontinued operations accounting.
[4]	Amounts included in "Corporate, Eliminations, and Discontinued Operations" consist of (i) assets (including all cash and cash equivalents) and depreciation related to corporate activities of continuing operations, (ii) assets of discontinued operations amounting to $142 million, $1.1 billion and $1.2 billion for the years ended December 31, 2016, December 26, 2015 and December 27, 2014, respectively, and (iii) accounts and balances associated with Grupo OfficeMax prior to disposition.

Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Discontinued Operations \| Corporate, Eliminations, and Discontinued Operations
Segment Reporting Information [Line Items]
Current assets of discontinued operations	$ 142.0	$ 1,100.0	$ 1,200.0

Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) from Continuing Operations Before Income Taxes (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 24, 2016

Jun. 25, 2016

Mar. 26, 2016

Dec. 26, 2015

Sep. 26, 2015

Jun. 27, 2015

Mar. 28, 2015

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Other operating income (loss)

$ 57

^[1]

$ 117

^[1],[2]

$ 271

^[1]

$ 85

^[1]

$ 42

^[3]

$ 81

^[3]

$ (27)

^[3]

$ 88

^[3]

$ 531

$ 183

$ (228)

Asset impairments

(6)

(9)

(3)

(1)

(4)

(5)

(15)

(13)

(56)

Merger, restructuring, and other operating income (expenses), net

$ 43

$ 31

$ (193)

$ 40

$ 38

$ 79

$ 96

$ 29

(242)

(334)

Legal accrual

(81)

Unallocated expenses

(99)

(101)

(124)

Interest income

Interest expense

(80)

(91)

(87)

Loss on extinguishment of debt

(15)

Other income (expense), net

Income (loss) from continuing operations before income taxes

459

115

(291)

Operating Segments

$ 565

$ 539

$ 359

[1]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The first quarter and second quarter amounts reflect application of discontinued operations accounting that was effective in the third quarter.
[2]	The amounts in the table above for the third quarter 2016 are as corrected to adjust for an error that was not material to the overall presentation. When the Company committed to a plan to sell substantially all of the business formerly reported as the International Division, it provided reference to the cumulative translation adjustment ("CTA") balance that existed at the end of the third quarter 2016, but did not include CTA in its impairment analysis. As a result, the loss amount of Discontinued operations, net of tax was overstated. The measurement has been corrected for the full year 2016 amounts. This correcting adjustment is provided below and would impact the same captioned line items in various portions of the third quarter financial statements by the same amount, as well as the current assets of discontinued operations, accumulated deficit and totals including those accounts.
[3]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The amounts reflect application of discontinued operations accounting.

Sales By Product Category Information (Detail) - Sales - Product Concentration Risk	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014
Product Information [Line Items]
Sales	100.00%	100.00%	100.00%
Supplies
Product Information [Line Items]
Sales	45.20%	44.40%	43.60%
Technology
Product Information [Line Items]
Sales	38.90%	40.20%	41.20%
Furniture And Other
Product Information [Line Items]
Sales	15.90%	15.40%	15.20%

Schedule of Quarterly Financial Data (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

9 Months Ended

12 Months Ended

Dec. 31, 2016

^[1]

Sep. 24, 2016

^[1],[2]

Jun. 25, 2016

^[1]

Mar. 26, 2016

^[1]

Dec. 26, 2015

^[3]

Sep. 26, 2015

^[3]

Jun. 27, 2015

^[3]

Mar. 28, 2015

^[3]

Sep. 24, 2016

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Net income (loss) from continuing operations

Net sales

$ 2,725

$ 2,836

$ 2,583

$ 2,876

$ 2,767

$ 3,046

$ 2,784

$ 3,131

$ 11,021

$ 11,727

$ 12,710

Gross profit

653

726

613

715

656

787

659

761

2,708

2,863

2,976

Operating income

117

271

(27)

531

183

(228)

^[4]

330

^[4]

232

^[4]

^[5]

(31)

^[5]

679

(293)

(137)

(22)

(16)

(36)

(27)

(4)

$ (175)

(150)

(84)

(59)

$ 80

$ 193

$ 210

$ 46

$ 15

^[5]

$ 6

^[5]

$ (58)

^[5]

$ 45

^[5]

$ 449

$ 529

$ 8

$ (354)

$ 0.11

^[6]

$ 0.62

^[6]

$ 0.42

^[6]

$ 0.11

^[6]

$ 0.06

^[6]

$ 0.08

^[6]

$ (0.06)

^[6]

$ 0.09

^[6]

$ 1.26

$ 0.17

$ (0.55)

0.05

^[6]

(0.26)

^[6]

(0.04)

^[6]

(0.03)

^[6]

(0.03)

^[6]

(0.07)

^[6]

(0.05)

^[6]

(0.01)

^[6]

$ (0.32)

(0.28)

(0.15)

(0.11)

Basic earnings per share

0.15

^[6]

0.36

^[6]

0.38

^[6]

0.08

^[6]

0.03

^[6]

0.01

^[6]

(0.11)

^[6]

0.08

^[6]

0.82

0.98

0.01

(0.66)

0.10

^[6]

0.61

^[6]

0.41

^[6]

0.11

^[6]

0.06

^[6]

0.08

^[6]

(0.06)

^[6]

0.09

^[6]

1.24

0.16

(0.55)

Diluted earnings per share

0.05

^[6]

(0.25)

^[6]

(0.04)

^[6]

(0.03)

^[6]

(0.03)

^[6]

(0.07)

^[6]

(0.05)

^[6]

(0.01)

^[6]

(0.32)

(0.27)

(0.15)

(0.11)

$ 0.15

^[6]

$ 0.35

^[6]

$ 0.38

^[6]

$ 0.08

^[6]

$ 0.03

^[6]

$ 0.01

^[6]

$ (0.11)

^[6]

$ 0.08

^[6]

$ 0.81

$ 0.96

$ 0.01

$ (0.66)

[1]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The first quarter and second quarter amounts reflect application of discontinued operations accounting that was effective in the third quarter.
[2]	The amounts in the table above for the third quarter 2016 are as corrected to adjust for an error that was not material to the overall presentation. When the Company committed to a plan to sell substantially all of the business formerly reported as the International Division, it provided reference to the cumulative translation adjustment ("CTA") balance that existed at the end of the third quarter 2016, but did not include CTA in its impairment analysis. As a result, the loss amount of Discontinued operations, net of tax was overstated. The measurement has been corrected for the full year 2016 amounts. This correcting adjustment is provided below and would impact the same captioned line items in various portions of the third quarter financial statements by the same amount, as well as the current assets of discontinued operations, accumulated deficit and totals including those accounts.
[3]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year. The amounts reflect application of discontinued operations accounting.
[4]	In the first, second, third and fourth quarters of 2016, captions include pre-tax Merger, restructuring, and other operating expenses, net totaling $40 million, $(193) million, $31 million and $43 million, respectively, and asset impairments of $0 million, $0 million, $9 million and $6 million, respectively. The second quarter of 2016 Merger, restructuring and other operating expenses, net includes $250 million Termination Fee received pursuant to termination of the Staples Merger Agreement. The third quarter and fourth quarters include non-cash tax benefits of approximately $240 million and $140 million, respectively, from the release of valuation allowances on deferred tax assets.
[5]	In the first, second, third and fourth quarters of 2015, captions include pre-tax Merger, restructuring, and other operating expenses, net totaling $29 million, $96 million, $79 million and $38 million, respectively, and asset impairments of $5 million, $4 million, $1 million and $3 million, respectively.
[6]	The sum of the quarterly earnings per share does not equal the annual earnings per share due to differences in quarterly and annual weighted-average shares outstanding.

Schedule of Quarterly Financial Data (Parenthetical) (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

9 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 24, 2016

Jun. 25, 2016

Mar. 26, 2016

Dec. 26, 2015

Sep. 26, 2015

Jun. 27, 2015

Mar. 28, 2015

Sep. 24, 2016

Dec. 31, 2016

Dec. 26, 2015

Dec. 27, 2014

Pre-tax Merger, restructuring, and other operating expenses

$ 43

$ 31

$ (193)

$ 40

$ 38

$ 79

$ 96

$ 29

$ 80

$ (242)

$ (334)

Assets impairments

Termination Fee

250

Non-cash income tax benefit

(140)

(240)

^[1]

(137)

^[1],[2]

(22)

^[1]

(16)

^[1]

(16)

^[3]

(36)

^[3]

(27)

^[3]

(4)

^[3]

$ (175)

(150)

(84)

(59)

$ 80

^[1]

$ 193

^[1],[2]

$ 210

^[1]

$ 46

^[1]

$ 15

^[3],[4]

$ 6

^[3],[4]

$ (58)

^[3],[4]

$ 45

^[3],[4]

$ 449

$ 529

$ 8

$ (354)

$ 0.05

^[1],[5]

$ (0.26)

^[1],[2],[5]

$ (0.04)

^[1],[5]

$ (0.03)

^[1],[5]

$ (0.03)

^[3],[5]

$ (0.07)

^[3],[5]

$ (0.05)

^[3],[5]

$ (0.01)

^[3],[5]

$ (0.32)

$ (0.28)

$ (0.15)

$ (0.11)

0.15

^[1],[5]

0.36

^[1],[2],[5]

0.38

^[1],[5]

0.08

^[1],[5]

0.03

^[3],[5]

0.01

^[3],[5]

(0.11)

^[3],[5]

0.08

^[3],[5]

0.82

0.98

0.01

(0.66)

0.05

^[1],[5]

(0.25)

^[1],[2],[5]

(0.04)

^[1],[5]

(0.03)

^[1],[5]

(0.03)

^[3],[5]

(0.07)

^[3],[5]

(0.05)

^[3],[5]

(0.01)

^[3],[5]

(0.32)

(0.27)

(0.15)

(0.11)

$ 0.15

^[1],[5]

$ 0.35

^[1],[2],[5]

$ 0.38

^[1],[5]

$ 0.08

^[1],[5]

$ 0.03

^[3],[5]

$ 0.01

^[3],[5]

$ (0.11)

^[3],[5]

$ 0.08

^[3],[5]

$ 0.81

$ 0.96

$ 0.01

$ (0.66)

As Reported

$ (286)

$ (324)

$ 44

$ 300

$ (0.54)

$ (0.60)

0.08

0.55

(0.54)

(0.60)

$ 0.08

$ 0.54

Adjustment

$ 149

$ 149

$ 0.28

0.28

0.27

0.29

0.28