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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 26, 2015	Jan. 23, 2016	Jun. 26, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 26, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Trading Symbol	ODP
Entity Registrant Name	OFFICE DEPOT INC
Entity Central Index Key	0000800240
Current Fiscal Year End Date	--12-26
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		548,986,561
Entity Public Float			$ 4,829,125,471

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Sales	$ 14,485	$ 16,096	$ 11,242
Cost of goods sold and occupancy costs	10,983	12,320	8,616
Gross profit	3,502	3,776	2,626
Selling, general and administrative expenses	3,042	3,479	2,560
Asset impairments	13	88	70
Merger, restructuring, and other operating expenses, net	332	403	201
Legal accrual		81
Operating income (loss)	115	(275)	(205)
Other income (expense):
Interest income	24	24	5
Interest expense	(93)	(89)	(69)
Gain on disposition of joint venture			382
Other income, net	1		14
Income (loss) before income taxes	47	(340)	127
Income tax expense	39	12	147
Net income (loss)	8	(352)	(20)
Less: Results attributable to the noncontrolling interests		2
Net income (loss) attributable to Office Depot, Inc.	8	(354)	(20)
Preferred stock dividends			73
Net income (loss) attributable to common stockholders	$ 8	$ (354)	$ (93)
Basic and diluted earnings (loss) per share	$ 0.01	$ (0.66)	$ (0.29)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Net income (loss)	$ 8	$ (352)	$ (20)
Other comprehensive income (loss), net of tax, where applicable:
Foreign currency translation adjustments	(78)	(78)	47
Change in deferred pension, net of $1 million, $1 million, and $10 million of deferred income taxes in 2015, 2014, and 2013, respectively	1	(87)	12
Total other comprehensive income (loss), net of tax, where applicable	(77)	(165)	59
Comprehensive income (loss)	(69)	(517)	39
Comprehensive income attributable to the noncontrolling interest		2
Comprehensive income (loss) attributable to Office Depot, Inc.	$ (69)	$ (519)	$ 39

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Change in deferred pension, deferred income taxes	$ 1	$ 1	$ 10

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Current assets:
Cash and cash equivalents	$ 1,069	$ 1,071
Receivables, net	1,166	1,264
Inventories	1,698	1,638
Prepaid expenses and other current assets	127	158
Total current assets	4,060	4,131
Property and equipment, net	785	963
Goodwill	378	391
Other intangible assets, net	54	72
Timber notes receivable	905	926
Deferred income taxes	24	36
Other assets	236	238
Total assets	6,442	6,757
Current liabilities:
Trade accounts payable	1,319	1,340
Accrued expenses and other current liabilities	1,355	1,514
Income taxes payable	13	4
Short-term borrowings and current maturities of long-term debt	56	32
Total current liabilities	2,743	2,890
Deferred income taxes and other long-term liabilities	459	541
Pension and postretirement obligations, net	184	196
Long-term debt, net of current maturities	634	670
Non-recourse debt	819	839
Total liabilities	4,839	5,136
Commitments and contingencies
Stockholders' equity:
Common stock - authorized 800,000,000 shares of $.01 par value; issued shares - 554,835,306 in 2015 and 551,097,537 in 2014	6	6
Additional paid-in capital	2,607	2,556
Accumulated other comprehensive income	30	107
Accumulated deficit	(982)	(990)
Treasury stock, at cost - 5,915,268 shares in 2015 and 2014	(58)	(58)
Total equity	1,603	1,621
Total liabilities and stockholders' equity	$ 6,442	$ 6,757

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 26, 2015	Dec. 27, 2014
Common stock, authorized	800,000,000	800,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, issued shares	554,835,306	551,097,537
Treasury stock, shares	5,915,268	5,915,268

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Cash flows from operating activities:
Net income (loss)	$ 8	$ (352)	$ (20)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	283	313	209
Charges for losses on inventories and receivables	60	66	59
Asset impairments	13	88	70
Compensation expense for share-based payments	44	38	38
Loss (gain) on disposition of joint ventures		2	(382)
Deferred income taxes and deferred tax asset valuation allowances	7		8
Loss (gain) on disposition of assets	(36)	6	(3)
Other	23	5	(9)
Changes in assets and liabilities:
Decrease (increase) in receivables	47	(3)	(2)
Increase in inventories	(139)	(1)	(34)
Net decrease (increase) in prepaid expenses and other assets	22	14	(2)
Net decrease in trade accounts payable, accrued expenses and other current and other long-term liabilities	(206)	(20)	(39)
Total adjustments	118	508	(87)
Net cash provided by (used in) operating activities	126	156	(107)
Cash flows from investing activities:
Capital expenditures	(163)	(123)	(137)
Acquired cash in Merger, net			457
Proceeds from sale of joint ventures, net		43	675
Return of investment in Boise Cascade Holdings, L.L.C.			35
Proceeds from sale of available for sale securities		43
Acquisition, net of cash acquired	(9)
Restricted cash	1	(3)	(4)
Proceeds from disposition of assets and other	97	12	2
Net cash provided by (used in) investing activities	(74)	(28)	1,028
Cash flows from financing activities:
Net proceeds from employee share-based transactions	7	39	3
Debt retirement			(150)
Debt related fees	(1)		(1)
Redemption of redeemable preferred stock			(407)
Redeemable preferred stock dividends			(63)
Proceeds from issuance of borrowings	20	21	23
Payments on long and short-term borrowings	(51)	(45)	(45)
Net cash provided by (used in) financing activities	(25)	15	(640)
Effect of exchange rate changes on cash and cash equivalents	(29)	(27)	3
Net increase (decrease) in cash and cash equivalents	(2)	116	284
Cash and cash equivalents at beginning of period	1,071	955	671
Cash and cash equivalents at end of period	1,069	1,071	955
Supplemental information on operating, investing, and financing activities
Cash interest paid, net of amounts capitalized and Timber notes/Non-recourse debt	67	68	65
Cash taxes paid (refunded)	8	(10)	139
Non-cash asset additions under capital leases	$ 25	$ 21	10
Issuance of common stock associated with the Merger (refer to Note 2)			$ 1,395

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
Acquisition of noncontrolling interest	$ 1						$ 1
Balance at Dec. 29, 2012	662	$ 3	$ 1,120	$ 213	$ (616)	$ (58)
Balance, Shares at Dec. 29, 2012		291,734,027
Net income (loss)	(20)				(20)
Other comprehensive income	59			59
Common stock issuance related to OfficeMax Merger (in shares)		239,344,963
Common stock issuance related to OfficeMax merger	1,395	$ 2	1,393
Preferred stock dividends	(73)		(73)
Grant of long-term incentive stock (in shares)		3,230,565
Grant of long-term incentive stock	0	$ 0	0	0	0	0	0
Forfeiture of restricted stock (in shares)		(762,496)
Forfeiture of restricted stock	$ 0	$ 0	0	0	0	0	0
Exercise and release of incentive stock (including income tax benefits and withholding) (in shares)	2,948,328	3,082,701
Exercise and release of incentive stock (including income tax benefits and withholding)	$ 2		2
Amortization of long-term incentive stock grants	38		38
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 income	(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) (in shares)	12,776,244	15,210,600
Exercise and release of incentive stock (including income tax benefits and withholding)	$ 39	$ 1	38
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 income	(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) (in shares)	2,248,062	3,817,939
Exercise and release of incentive stock (including income tax benefits and withholding)	$ 7		7
Amortization of long-term incentive stock grants	44		44
Balance at Dec. 26, 2015	$ 1,603	$ 6	$ 2,607	$ 30	$ (982)	$ (58)
Balance, Shares at Dec. 26, 2015		554,835,306

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 26, 2015

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business: Office Depot, Inc. (“Office Depot” or the “Company”) is a global supplier of office products and services. On November 5, 2013, the Company merged with OfficeMax Incorporated (“OfficeMax”); refer to Note 2 for additional discussion of this merger (the “Merger”). OfficeMax’s results are included in the Consolidated Statements of Operations and Cash Flows since the Merger date, affecting comparability of amounts in the three years presented. The merged 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.

As of December 26, 2015, the Company sold to customers throughout North America, Europe, and Asia/Pacific through three reportable segments (or “Divisions”): North American Retail Division, North American Business Solutions Division and International Division. Due to the sale of the Company’s interest in Grupo OfficeMax S. de R.L. de C.V. and related entities (together, “Grupo OfficeMax”) in August 2014, the joint venture’s results are reported as Other to align with how this information was presented for management reporting.

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 February 4, 2015, Staples, Inc. (“Staples”) and the Company announced that the companies have entered into a definitive merger agreement (the “Staples Merger Agreement”), under which Staples will acquire all of the outstanding shares of Office Depot and the Company will become a wholly owned subsidiary of Staples (the “Staples Acquisition”). Under the terms of the Staples Merger Agreement, Office Depot shareholders will receive, for each Office Depot share held by such shareholders, $7.25 in cash and 0.2188 of a share in Staples common stock at closing (the “Merger Consideration”). Each employee share-based award outstanding at the date of the Staples Merger Agreement will vest upon the effective date of the Staples Acquisition. Upon the effective date of the Staples Acquisition, employee share-based awards subsequently granted in 2015 will be converted into a contingent right to receive the cash equivalent of the Merger Consideration subject to the same terms and conditions of the corresponding award; provided that performance and vesting periods shall be reduced in duration. The Staples Merger Agreement includes representations, warranties and conditions, including breakup fees payable or receivable under certain conditions if the transaction fails to close. Under the Staples Merger Agreement, the 9.75% Senior Secured Notes (“Senior Secured Notes”) will be discharged, redeemed or defeased at the Effective Time of the Staples Acquisition.

The transaction has been approved by both companies’ Boards of Directors and Office Depot shareholders. The completion of the Staples Acquisition is subject to customary closing conditions including, among others, regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and under the antitrust and competition laws of the European Union and Canada. The Company and Staples have received antitrust clearance for the transaction from regulators in Australia, New Zealand and China.

On February 10, 2016, Staples announced that it has received conditional approval from European Union regulatory authorities to acquire Office Depot and the parties plan to divest Office Depot’s European businesses in connection with the consummation of the pending acquisition of Office Depot by Staples.

On December 7, 2015, the United States Federal Trade Commission (the “FTC”) informed Office Depot and Staples that it intends 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. Also on December 7, 2015, the Canadian Competition Bureau filed an application to block the transaction with the Canadian Competition Tribunal. On February 2, 2016, the Company and Staples entered into a letter agreement to waive, until May 16, 2016, certain of their respective rights to terminate the Staples Merger Agreement.

The Company has agreed to pay a fee of $185 million to Staples if each of the following conditions are met: (i) the Staples Merger Agreement is terminated by the Company before the date permitted by the Staples Merger Agreement, as amended, (ii) a third party has made an acquisition proposal before the termination of the Staples Merger Agreement, and (iii) within 12 months of the termination of the Staples Merger Agreement, the Company enters into an alternative transaction. Staples is required to pay Office Depot a termination fee of $250 million if the Staples Merger Agreement is terminated in certain circumstances relating to the antitrust regulatory review process.

Refer to the Company’s Current Report on Form 8-K filed with the SEC on February 4, 2015 for additional information on the transaction. Also, refer to Note 3 for expenses incurred in 2015 related to the Staples Acquisition.

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, 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 7 for additional information. As a result of the Merger, 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 at the Merger date was not determinable and no amounts are included in the consolidated financial statements. Intercompany transactions have been eliminated in consolidation.

The equity method of accounting is used for investments in which the Company does not control but either shares control equally or has significant influence; the cost method is used when the Company neither shares control nor has significant influence.

During the fourth quarter of 2015, the Company early adopted the new accounting standard that requires debt issuance costs to be presented as a reduction of the related liability rather than as an asset and the new accounting standard that requires that all deferred taxes be presented as noncurrent on the Consolidated Balance Sheets. Amounts reported in the Consolidated Balance Sheet as of December 27, 2014 have been reclassified to conform with current year presentation, as follows.


(In millions)	Previously Reported		Changes			As Reported
Assets:
Prepaid expenses and other current assets	$	245	$	(87	)	$	158
Deferred income taxes — noncurrent		32		4			36
Other assets		242		(4	)		238
Total assets		6,844		(87	)		6,757
Liabilities:
Accrued expenses and other current liabilities		1,517		(3	)		1,514
Deferred income taxes and other long-term liabilities		621		(80	)		541
Long term debt, net of current maturities		674		(4	)		670
Total liabilities		5,223		(87	)		5,136

The Company also early adopted for 2015 reporting the new accounting standard that allows as a practical expedient, the measurement of pension assets and liabilities at the calendar year end, rather than the fiscal year end date. There were no changes to prior reported amounts or disclosures from adopting this standard.

Fiscal Year: Fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. Certain international locations operate on a calendar year basis; however, the reporting difference is not considered significant. All years presented in the Consolidated Financial Statements consisted of 52 weeks; fiscal year 2016 will include 53 weeks.

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.

Foreign Currency: International operations primarily 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.

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.

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 $32 million and $91 million at December 26, 2015 and December 27, 2014, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities.

Cash and cash equivalents held outside the United States at December 26, 2015 amounted to $253 million.

Receivables: Trade receivables, net, totaled $774 million and $812 million at December 26, 2015 and December 27, 2014, 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 26, 2015 and December 27, 2014 was $16 million and $18 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 2015, 2014 or 2013.

Other receivables are $392 million and $452 million at December 26, 2015 and December 27, 2014, respectively, of which $308 million and $360 million, respectively, are amounts due from vendors under purchase rebate, cooperative advertising and various other marketing programs.

The Company sells selected accounts receivables on a non-recourse basis to an unrelated financial institution under a factoring agreement in France. The Company accounts for this transaction as a sale of receivables, removes receivables sold from its financial statements, and records cash proceeds when received by the Company as cash provided by operating activities in the Consolidated Statements of Cash Flows. The financial institution retains a portion of the sold receivables as a guarantee until the receipt of the proceeds associated with the factored invoices. Retention guarantees of $10 million and $11 million are included in Prepaid expenses and other current assets in the Consolidated Balance Sheets as of December 26, 2015 and December 27, 2014, respectively.

In 2015 and 2014, the Company withdrew $345 million and $479 million, respectively, under the factoring agreement. Receivables sold for which the Company did not obtain cash directly from the financial institution are included in Receivables and amount to $6 million as of December 26, 2015 and December 27, 2014.

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 and the first-in-first-out method is used for inventory held within certain European countries where the Company has operations.

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 9 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 — 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 2015. 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 recorded as part of the Merger.

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 and implementation of the post-Merger real estate strategy (the “Real Estate Strategy”), retail store long-lived assets have been reviewed for impairment indicators quarterly. 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. Additionally, since 2014, the Company has been closing stores in connection with the Real Estate Strategy which is expected to be completed in 2016. Refer to Note 3 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 expenses, net, if the related facility was closed as part of Merger or restructuring activities. Refer to Note 3 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 $291 million and $343 million at December 26, 2015 and December 27, 2014, 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 15 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.

Franchise fees, royalty income and the sales of products to franchisees and licensees, which currently are not significant, are included in Sales, while related product costs are included in Cost of goods sold and occupancy costs in the Consolidated Statements of Operations.

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 Expenses, net: Merger, restructuring, and other operating expenses, net in the Consolidated Statements of Operations includes amounts related to the Merger, international restructuring plans, and the Staples Acquisition. The line item includes 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. 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 expenses, net are not included in the measure of Division operating income. Refer to Note 3 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 $370 million in 2015, $447 million in 2014 and $378 million in 2013. Prepaid advertising costs were $14 million as of December 26, 2015 and $21 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. The Merger-date value of former OfficeMax share-based awards was valued using the Black-Scholes model and apportioned between Merger consideration and unearned compensation to be recognized in expense as earned in future periods based on remaining service periods.

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 13 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. Refer to Note 2 for additional information.

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 any option or renewal periods management believes are probable of exercise. This expected term is used in the determination of whether a lease is capital or operating and in the calculation of straight-line rent expense. Rent abatements and escalations are considered in the calculation of minimum lease payments in the Company’s capital lease tests 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. Historically, the Company has not entered into transactions to hedge its net investment in foreign operations but may in future periods. At December 26, 2015 the fair value of derivative instruments were not considered material and the Company had no material hedge transactions in 2015, 2014 or 2013.

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 is assessing what impacts this new standard will have on its Consolidated Financial Statements.

MERGER, ACQUISITION, AND DISPOSITIONS

12 Months Ended

Dec. 26, 2015

MERGER, ACQUISITION, AND DISPOSITIONS

NOTE 2. MERGER, ACQUISITION, AND DISPOSITIONS

Merger

On November 5, 2013, the Company completed its merger of equals transaction with OfficeMax. In connection with the Merger, each former share of OfficeMax common stock, par value $2.50 per share, issued and outstanding immediately prior to the effective time of the Merger was converted to 2.69 shares of Office Depot common stock. The Company issued approximately 240 million shares of Office Depot, Inc. common stock to former holders of OfficeMax common stock, representing approximately 45% of the approximately 530 million total shares of Company common stock outstanding on the Merger date. Additionally, OfficeMax employee stock options and restricted stock were converted into mirror awards exercisable or earned in Office Depot, Inc. common stock. The value of these awards was apportioned between total Merger consideration and unearned compensation and is being recognized over the remaining original vesting periods of the awards. The consideration transferred in this all stock transaction amounted to approximately $1.4 billion.

Office Depot was determined to be the accounting acquirer. In this all-stock transaction only Office Depot common stock was transferred, the Office Depot shareholders received approximately 55% of the voting interest of the combined company and other factors were equally shared between the two former companies, including representation on the combined entity’s Board of Directors, or were further indicators of the Company being the accounting acquirer.

Like Office Depot, OfficeMax was a leader in both business-to-business and retail office products distribution. OfficeMax had operations in the U.S., Canada, Mexico, Australia, New Zealand, the U.S. Virgin Islands and Puerto Rico. The Merger was intended to create a more efficient global provider of these products and services that is better able to compete in a changing office supply industry. OfficeMax’s results since the Merger date are included in the Consolidated Statements of Operations.

Merger and integration costs are accounted for as expenses in the period in which the costs are incurred. Transaction-related expenses are included in the Merger, restructuring, and other operating expenses, net line in the Consolidated Statements of Operations. Refer to Note 3 for additional information about the costs incurred and Note 9 for discussion of the income tax impacts of the Merger.

Acquisition

During the first quarter of 2015, the Company acquired an interior furniture business for $9 million. The business supports the contract channel of the North American Business Solutions Division. Fair value of assets acquired and liabilities assumed are included in the balance sheet since acquisition and include certain amortizing intangible assets and tax-deductible goodwill. Supplemental pro forma financial information is not provided based on materiality considerations.

Dispositions

Grupo OfficeMax

In August 2014, the Company completed the sale of its 51% capital stock interest in Grupo OfficeMax, the former OfficeMax business in Mexico, to its joint venture partner for net cash proceeds of $43 million. The loss associated with the disposed business amounted to $2 million, which resulted primarily from the release of the net foreign currency remeasurement differences from investment to the disposition date recorded in other comprehensive income (cumulative translation adjustment) and fees incurred to complete the transaction. The loss on disposition is included in Merger, restructuring, and other operating expenses, net in the Consolidated Statements of Operations. This disposition did not have a major effect on the Company’s operations and financial results and, therefore, is not presented as discontinued operations.

The amounts included in the 2014 Consolidated Statements of Operations for this business through the date of sale are as follows:


(In millions)
Sales	$	155
Income before income taxes		6
Income attributable to Office Depot, before income taxes		4

Office Depot de Mexico

From 1994 through the third quarter of 2013, the Company participated in a joint venture that sold office products and services in Mexico and Central and South America. In the third quarter of 2013, the Company sold its 50 percent investment in Office Depot de Mexico, S.A. de C.V. (“Office Depot de Mexico”) to its joint venture partner, Grupo Gigante, S.A.B. de C.V. (“Grupo Gigante”). The transaction generated cash proceeds of the Mexican Peso amount of 8,777 million in cash ($680 million at then-current exchange rates). A pretax gain of $382 million was recognized in 2013 as Gain on the disposition of joint venture in Other income (expense) in the Consolidated Statements of Operations. The gain is net of third party fees, as well as recognition of $39 million of cumulative translation losses released from Other comprehensive income because the subsidiary holding the joint venture investment was substantially liquidated following the disposition. The investment in this joint venture was accounted for under the equity method of accounting. For periods prior to the sale, the Company’s proportionate share of Office Depot de Mexico’s net income is presented in Other income (expense), net in the Consolidated Statements of Operations and totaled $13 million through the date of sale in 2013.

MERGER, RESTRUCTURING, AND OTHER ACCRUALS

12 Months Ended

Dec. 26, 2015

MERGER, RESTRUCTURING, AND OTHER ACCRUALS

NOTE 3. MERGER, RESTRUCTURING, AND OTHER ACCRUALS

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. In 2013, the 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 at least 400 retail stores for closure through 2016 along with planned changes to the supply chain. In 2014, the Company approved a plan to realign the European organization from a geographic-focus to a business channel-focus (the “European Restructuring Plan”). In 2015, the Staples Acquisition was announced. Significant expenses have been recognized associated with these activities, as discussed below.

Merger, Restructuring, and Other Operating Expenses, net

The Company presents Merger, restructuring and other operating 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 expenses, net.


(In millions)	2015		2014		2013
Merger related expenses:
Severance, retention, and relocation	$	15	$	148	$	92
Transaction and integration		81		124		80
Facility closure, contract termination, and other expenses, net		44		60		8

Total Merger related expenses		140		332		180

International restructuring and certain other expenses:
Severance and retention		63		55		17
Integration		6		9		—
Other related expenses		12		7		4

Total International restructuring and certain other expenses		81		71		21

Staples Acquisition expenses:
Retention		72		—		—
Transaction		39		—		—

Total Staples Acquisition expenses		111		—		—

Total Merger, restructuring and other operating expenses, net	$	332	$	403	$	201

Merger related expenses

Severance, retention, and relocation expenses include amounts incurred by Office Depot in 2013 and by the combined companies since the date of the Merger, and reflect integration throughout the staff functions. Since the second quarter of 2014, the Real Estate Strategy has been sufficiently developed to provide a basis for estimating termination benefits for certain retail and supply chain closures that are expected to be substantially complete by the end of 2017. 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. Expenses in 2013 primarily relate to legal, accounting, and pre-merger integration activities incurred by Office Depot.

Facility closure, contract termination and other costs primarily relate to facility closure accruals, contract termination cost, 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 168 and 181 retail stores in 2014 and 2015, respectively, and expects to close more than 50 additional stores in 2016. During 2015, the Company recognized gains of $36 million 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 expenses, net, as the dispositions were part of the supply chain integration associated with the Merger.

International restructuring and certain other expenses

International restructuring and certain other expenses in 2015 and 2014 include charges related to the European Restructuring Plan, including severance and retention, professional integration fees, facility closure and other restructuring costs. Additionally, charges related to international organizational changes and facility closures which were started prior to the European Restructuring Plan are presented in this caption. Accruals related to the European Restructuring Plan were substantially completed during 2015.

Staples Acquisition expenses

Staples Acquisition expenses recognized in 2015 include retention accruals, transaction costs, including costs associated with regulatory filings and professional fees. The retention amounts will be paid in the first quarter of 2016 regardless of whether the transaction is approved.

Asset impairments are not included in the table above. Refer to Note 15 for further information.

Merger and Restructuring Accruals

The activity in the merger and restructuring accruals in 2015 and 2014 is presented in the table below. Of the total $332 million and $403 million Merger, restructuring and other expenses incurred in 2015 and 2014, respectively, $241 million and $266 million are related to merger or restructuring liabilities and are included as Charges incurred in the table below. The remaining $91 million and $137 million in 2015 and 2014, respectively, are excluded from the table above because these items are expensed as incurred, non-cash, or otherwise not associated with the merger and restructuring balance sheet accounts (see further discussion below).


(In millions)	Beginning Balance		Charges Incurred		Cash Payments			Currency, Lease Accretion, and Other Adjustments			Ending Balance
2015
Termination benefits:
Merger-related accruals	$	31	$	16	$	(31	)	$	—		$	16
European Restructuring Plan		26		53		(32	)		(5	)		42
Other restructuring accruals		8		7		(14	)		—			1
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		71		76		(70	)		—			77
European Restructuring Plan		—		10		(10	)		1			1
Other restructuring accruals		35		4		(17	)		3			25
Acquired entity accruals		36		3		(15	)		1			25
Staples acquisition related accruals		—		72		—			—			72

Total merger and restructuring accruals	$	207	$	241	$	(189	)	$	—		$	259

2014
Termination benefits:
Merger-related accruals	$	23	$	99	$	(91	)	$	—		$	31
European Restructuring Plan		—		26		—			—			26
Other restructuring accruals		5		23		(21	)		1			8
Acquired entity accruals		4		—		(2	)		(2	)		—
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		25		111		(65	)		—			71
European Restructuring Plan		—		2		(2	)		—			—
Other restructuring accruals		62		5		(33	)		1			35
Acquired entity accruals		59		—		(25	)		2			36

Total merger and restructuring accruals	$	178	$	266	$	(239	)	$	2		$	207

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.

The remaining $91 million incurred in 2015 is comprised of $81 million Merger transaction and integration expenses, $6 million European restructuring integration expenses, $39 million Staples Acquisition transaction expenses, and $1 million associated primarily to fixed assets and rent related expenses, partially offset by the $36 million gain on the disposition of the warehouse facilities associated with the supply chain integration. The remaining $137 million incurred in 2014 is comprised of $124 million Merger transaction and integration expenses, $9 million European restructuring integration expenses, $5 million employee non-cash equity compensation expenses, and $1 million net credit associated primarily to fixed assets and rent related items.

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 26, 2015

PROPERTY AND EQUIPMENT

NOTE 4. PROPERTY AND EQUIPMENT

Property and equipment consists of:


(In millions)	December 26, 2015			December 27, 2014
Land	$	62		$	88
Buildings		343			431
Leasehold improvements		755			745
Furniture, fixtures and equipment		1,436			1,480

		2,596			2,744
Less accumulated depreciation		(1,811	)		(1,781	)

Total	$	785		$	963

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


(In millions)	December 26, 2015			December 27, 2014
Buildings	$	202		$	204
Furniture, fixtures and equipment		84			74

		286			278
Less accumulated depreciation		(146	)		(124	)

Total	$	140		$	154

Depreciation expense was $193 million in 2015, $210 million in 2014, and $149 million in 2013.

Included in furniture, fixtures and equipment above are capitalized software costs of $544 million and $558 million at December 26, 2015 and December 27, 2014, respectively. The unamortized amounts of the capitalized software costs are $114 million and $148 million at December 26, 2015 and December 27, 2014, respectively. Amortization of capitalized software costs totaled $76 million, $86 million and $56 million in 2015, 2014 and 2013, 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 26, 2015 is as follows:


(In millions)
2016	$	52
2017		31
2018		18
2019		9
2020		4

The weighted average remaining amortization period for capitalized software is 2.4 years.

Other assets held for sale

Certain facilities 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 2015 is presented in the table below.


(In millions)
Balance as of December 27, 2014	$	31
Additions		67
Dispositions		(57	)
Reclassifications and other adjustments		(11	)

Balance as of December 26, 2015	$	30

Any gain on these dispositions, which are expected to be completed within one year, will be recognized at the Corporate level and included when realized in Merger, restructuring and other operating expenses, net in the Consolidated Statements of Operations. Refer to Note 3 for further information on Merger, restructuring and other operating expenses, net, including gains realized related to disposition of held for sale assets.

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 26, 2015

GOODWILL AND OTHER INTANGIBLE ASSETS

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			International Division			Corporate			Total
Goodwill	$	2		$	370		$	909		$	377		$	1,658
Accumulated impairment losses		(2	)		(349	)		(907	)		—			(1,258	)
Foreign currency rate impact		—			—			(2	)		—			(2	)

Balance as of December 28, 2013	$	—		$	21		$	—		$	377		$	398

Purchase accounting adjustments		—			—			—			17			17
Sale of Grupo OfficeMax		—			—			—			(24	)		(24	)
Allocation to reporting units		78			277			15			(370	)		—

Balance as of December 27, 2014	$	78		$	298		$	15		$	—		$	391

Purchase accounting adjustments		—			(13	)		—			—			(13	)

Balance as of December 26, 2015	$	78		$	285		$	15		$	—		$	378

Purchase accounting adjustments relate to goodwill associated with a 2015 acquisition, as disclosed in Note 2, as well as final adjustments related to prior acquisitions.

The allocation of the Merger consideration to the reporting units was completed in the third quarter of 2014. As the Company finalized the purchase price allocation in 2014, certain preliminary values were adjusted as additional information became available. Initial amounts allocated to certain property and equipment accounts decreased by $16 million and tax account adjustments were $1 million. Goodwill of $24 million was allocated to the Grupo OfficeMax business and was removed following the August 2014 sale of that business.

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 in 2015 and 2014, the Company recognized impairment charges associated with favorable leases related to identified closing locations totaling $1 million and $5 million, respectively. These impairment charges are presented in Asset impairments in the Consolidated Statements of Operations. Refer to Note 15 for additional information on fair value measurement and Real Estate Strategy.

During 2014, the Company reassessed its use of a $6 million private brand trade name used internationally that previously had been assigned an indefinite life. The expected change in profile and life of this brand, along with assigning an estimated life of three years, resulted in an impairment charge of $5 million which is reported in Asset impairments in the Consolidated Statement of Operations.

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


	December 26, 2015
(In millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	78	$	(47	)	$	31
Favorable leases		30		(7	)		23
Trade names		9		(9	)		—

Total	$	117	$	(63	)	$	54


	December 27, 2014
(In millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	77	$	(37	)	$	40
Favorable leases		36		(8	)		28
Trade names		9		(5	)		4

Total	$	122	$	(50	)	$	72

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 $14 million in 2015, $18 million in 2014, and $4 million in 2013. 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 10 for further detail.

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


(In millions)
2016	$	12
2017		7
2018		5
2019		5
2020		5
Thereafter		20

Total	$	54

- Definition

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

INVESTMENTS

12 Months Ended

Dec. 26, 2015

INVESTMENTS

NOTE 6. INVESTMENTS

Boise Cascade Holdings, LLC

As part of the Merger, the Company acquired an investment of approximately 20% of the voting equity securities (“Common Units”) of Boise Cascade Holdings, L.L.C. (“Boise Cascade Holdings”), a building products company that originated in connection with the OfficeMax sale of its paper, forest products and timberland assets in 2004. Through the end of 2013, Boise Cascade Holdings owned common stock of Boise Cascade Company (“Boise Cascade”), a publicly traded entity, which gave the Company the indirect ownership interest of approximately 4% of the shares of Boise Cascade. During the first quarter of 2014, Boise Cascade Holdings distributed to its shareholders all of the Boise Cascade common stock it held. The Company received 1.6 million shares in this distribution, which the Company fully disposed of in open market transactions through the end of the second quarter of 2014 for total cash proceeds of $43 million. During the third quarter of 2014, the Company received an additional $1 million of cash in conjunction with the dissolution of Boise Cascade Holdings.

Through the date of disposition, the investment in Boise Cascade Holdings was accounted for under the cost method because the Company did not have the ability to significantly influence the entity’s operating and financial policies. The investment was recorded at fair value on the date of the Merger.

TIMBER NOTES/NON-RECOURSE DEBT

12 Months Ended

Dec. 26, 2015

TIMBER NOTES/NON-RECOURSE DEBT

NOTE 7. 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 $905 million and $926 million at December 26, 2015 and December 27, 2014, 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 $819 million and $839 million at December 26, 2015 and December 27, 2014, 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 8 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 26, 2015, there is a deferred tax liability of $260 million related to the Installment Notes, that will reverse upon maturity.

DEBT

12 Months Ended

Dec. 26, 2015

DEBT

NOTE 8. DEBT

Debt consists of the following:


(In millions)	December 26, 2015			December 27, 2014
Recourse debt:
Short-term borrowings and current maturities of long-term debt:
Short-term borrowings	$	4		$	1
Capital lease obligations		30			29
7.35% debentures, due 2016		18			—
Other current maturities of long-term debt		4			2

Total	$	56		$	32

Long-term debt, net of current maturities:
Senior Secured Notes, due 2019	$	250		$	250
Unamortized debt issuance cost		(3	)		(4	)

Senior Secured Notes, due 2019, net		247			246

7.35% debentures, due 2016		—			18
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		175			192
Other		12			14

Total	$	634		$	670

Non-recourse debt:
5.42% Securitization Notes, due 2019 — Refer to Note 7	$	735		$	735
Unamortized premium		84			104

Total	$	819		$	839

The Company was in compliance with all applicable financial covenants of existing loan agreements at December 26, 2015.

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, and May 2015 (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 $1.25 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 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 25, 2017, as provided in the Amended Credit Agreement.

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 accounts and a second priority lien on substantially all of the Company’s and the Domestic Guarantors’ other assets. 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 Company has never paid a cash dividend on its common stock.

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.

The amendment entered into by the Company which is effective November 5, 2013 increased the Facility from $1.0 billion to $1.25 billion, allowed for the Merger, recognized OfficeMax debt and assets, expanded amounts permitted for indebtedness, liens, investments and asset sales and increased restricted payments and capital expenditure limits, among other changes.

At December 26, 2015, the Company had $1.2 billion of available credit under the Facility based on the December 2014 Borrowing Base certificate. At December 26, 2015, no amounts were outstanding under the Facility. Letters of credit outstanding under the Facility totaled $84 million. There were no borrowings under the Facility during 2015.

Senior Secured Notes

On March 14, 2012, the Company issued $250 million aggregate principal amount of its 9.75% Senior Secured Notes due March 15, 2019 (“Senior Secured Notes”) with interest payable in cash semiannually in arrears on March 15 and September 15 of each year. The Senior Secured Notes are fully and unconditionally guaranteed on a senior secured basis by each of the Company’s existing and future domestic subsidiaries that guarantee the Amended Credit Agreement. The Senior Secured Notes are secured on a first-priority basis by a lien on substantially all of the Company’s domestic subsidiaries’ present and future assets, other than assets that secure the Amended Credit Agreement, and certain of their present and future equity interests in foreign subsidiaries. The Senior Secured Notes are secured on a second-priority basis by a lien on the Company and its domestic subsidiaries’ assets that secure the Amended Credit Agreement. The Senior Secured Notes were issued pursuant to an indenture, dated as of March 14, 2012, among the Company, the domestic subsidiaries named therein and U.S. Bank National Association, as trustee (the “Indenture”).

The terms of the Indenture provide that, among other things, the Senior Secured Notes and guarantees will be senior secured obligations and will: (i) rank senior in right of payment to any future subordinated indebtedness of the Company and the guarantors; (ii) rank equally in right of payment with all of the existing and future senior indebtedness of the Company and the guarantors; (iii) rank effectively junior to all existing and future indebtedness under the Amended Credit Agreement to the extent of the value of certain collateral securing the Facility on a first-priority basis, subject to certain exceptions and permitted liens; (iv) rank effectively senior to all existing and future indebtedness under the Amended Credit Agreement to the extent of the value of certain collateral securing the Senior Secured Notes; and (v) be structurally subordinated in right of payment to all existing and future indebtedness and other liabilities of the Company’s non-guarantor subsidiaries (other than indebtedness and liabilities owed to the Company or one of the guarantors).

The Indenture contains affirmative and negative covenants that, among other things, limit or restrict the Company’s ability to: incur additional debt or issue stock, pay dividends, make certain investments or make other restricted payments; engage in sales of assets; and engage in consolidations, mergers and acquisitions. However, many of these currently active covenants will cease to apply for so long as the Company receives and maintains investment grade ratings from specified debt rating services and there is no default under the Indenture. There are no maintenance financial covenants.

The Senior Secured Notes may be redeemed by the Company, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount plus a make-whole premium as of the redemption date and accrued and unpaid interest. Thereafter, the Senior Secured Notes carry optional redemption features whereby the Company has the redemption option prior to maturity at par plus a premium beginning at 104.875% at March 15, 2016 and declining ratably to par at March 15, 2018 and thereafter, plus accrued and unpaid interest.

Upon the occurrence of a change of control, holders of the Senior Secured Notes may require the Company to repurchase all or a portion of the Senior Secured Notes in cash at a price equal to 101% of the principal amount to be repurchased plus accrued and unpaid interest to the repurchase date. Change of control, as defined in the Indenture, is a transfer of all or substantially all of the assets of Office Depot, acquisition of more than 50% of the voting power of Office Depot by a person or group, or members of the Office Depot Board of Directors as previously approved by the stockholders of Office Depot ceasing to constitute a majority of the Office Depot Board of Directors.

Under the Staples Merger Agreement, the Senior Secured Notes will be discharged, redeemed or defeased at the Effective Time of the Staples Acquisition.

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.

Short-Term Borrowings

The Company had short-term borrowings of $4 million at December 26, 2015 under various local currency credit facilities for international subsidiaries that had an effective interest rate at the end of the year of approximately 4%. The maximum month end amount occurred in June 2015 at $6 million and the maximum monthly average amount occurred in July 2015 at $5 million. The majority of these short-term borrowings represent outstanding balances on uncommitted lines of credit, which do not contain financial covenants.

Refer to Note 7 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)
2016	$	66
2017		40
2018		36
2019		283
2020		39
Thereafter		289

Total		753
Less amount representing interest on capital leases		(60	)

Total		693
Less:
Current portion		(56	)
Unamortized debt issuance cost		(3	)

Total long-term debt	$	634

INCOME TAXES

12 Months Ended

Dec. 26, 2015

INCOME TAXES

NOTE 9. INCOME TAXES

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


(In millions)	2015			2014			2013
United States	$	136		$	(264	)	$	(230	)
Foreign		(89	)		(76	)		357

Total income (loss) before income taxes	$	47		$	(340	)	$	127

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


(In millions)	2015			2014			2013
Current:
Federal	$	18		$	(2	)	$	15
State		4			(1	)		5
Foreign		10			15			125
Deferred :
Federal		(1	)		—			(4	)
State		2			3			(1	)
Foreign		6			(3	)		7

Total income tax expense	$	39		$	12		$	147

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


(In millions)	2015			2014			2013
Federal tax computed at the statutory rate	$	16		$	(119	)	$	44
State taxes, net of Federal benefit		5			4			3
Foreign income taxed at rates other than Federal		(10	)		(10	)		(28	)
Increase (decrease) in valuation allowance		(3	)		112			8
Non-deductible goodwill impairment		—			—			15
Non-deductible Merger expenses		11			—			13
Non-deductible foreign interest		11			13			8
Other non-deductible expenses		5			12			4
Non-taxable income and additional deductible expenses		(4	)		—			—
Change in unrecognized tax benefits		—			(2	)		—
Tax expense from intercompany transactions		7			2			2
Subpart F and dividend income, net of foreign tax credits		1			2			75
Change in tax rate		1			—			2
Deferred taxes on undistributed foreign earnings		—			—			5
Other items, net		(1	)		(2	)		(4	)

Income tax expense	$	39		$	12		$	147

The increase in income tax expense from 2014 to 2015 is primarily related to the transition of the U.S. business from a loss jurisdiction with valuation allowance to a profitable tax-paying jurisdiction with valuation allowance. The Company also incurred charges related to certain Staples Acquisition expenses that are not deductible for tax purposes, which increased the effective tax rate for 2015. 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 significant income tax expense in 2013 is primarily attributable to the 2013 sale of the Company’s investment in Office Depot de Mexico, which is discussed in Note 2. In 2013, the Company paid $117 million of Mexican income tax upon the sale and recognized additional U.S. income tax expense of $23 million due to dividend income and Subpart F income as a result of the sale, for total income tax expense of $140 million. The sale of the Company’s interest in Grupo OfficeMax during 2014 did not generate a similar gain or income tax expense. The 2013 effective tax rate also includes charges related to goodwill impairment (refer to Note 15) and certain Merger expenses that are not deductible for tax purposes.

The Company operates in several foreign jurisdictions with income tax rates that differ from the U.S. Federal statutory rate, which resulted in a benefit for all years presented in the effective tax rate reconciliation. This benefit in 2015 is primarily attributable to earnings in the Netherlands. Significant foreign tax jurisdictions for which the Company realized such benefit in 2014 and 2013 also included the UK and France. Additionally, Mexico is included for 2013 due to the sale of Office Depot de Mexico.

Due to valuation allowances against the Company’s deferred tax assets, no income tax benefit was initially recognized in the 2015, 2014, or 2013 Consolidated Statement of Operations related to stock-based compensation expense. However, due to the profitable tax-paying position in the U.S. in 2015 and 2013, the Company realized an income tax benefit of $3 million and $5 million, respectively, 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 $7 million and $3 million for excess stock-based compensation deductions resulting from the exercise and vesting of equity awards during 2015 and 2013, respectively. These income tax benefits were recorded as increases to additional paid-in capital in 2015 and 2013. The income tax benefits recorded in 2013 were primarily attributable to the sale of Office Depot de Mexico.

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


(In millions)	December 26, 2015			December 27, 2014
U.S. and foreign net operating loss carryforwards	$	324		$	322
Deferred rent credit		68			80
Pension and other accrued compensation		181			184
Accruals for facility closings		43			45
Inventory		20			23
Self-insurance accruals		33			33
Deferred revenue		39			39
U.S. and foreign income tax credit carryforwards		232			246
Allowance for bad debts		6			5
Accrued expenses		43			80
Basis difference in fixed assets		81			59
Other items, net		8			8

Gross deferred tax assets		1,078			1,124
Valuation allowance		(763	)		(804	)

Deferred tax assets		315			320

Internal software		5			8
Installment gain on sale of timberlands		260			251
Deferred Subpart F income		27			27
Undistributed foreign earnings		2			2

Deferred tax liabilities		294			288

Net deferred tax assets	$	21		$	32

As of December 26, 2015 and December 27, 2014, deferred income tax liabilities amounting to $3 million and $4 million, respectively, are included in Deferred income taxes and other long-term liabilities.

During the fourth quarter of 2015, the Company early adopted the new accounting standard that requires that all deferred taxes be presented as noncurrent on the Consolidated Balance Sheets. Refer to Basis of Presentation in Note 1 for further information.

As of December 26, 2015, the Company has utilized all of its U.S. Federal net operating loss (“NOL”) carryforwards. The Company has $903 million of foreign and $1.5 billion of state NOL carryforwards. Of the foreign NOL carryforwards, $737 million can be carried forward indefinitely, $7 million will expire in 2016, and the remaining balance will expire between 2017 and 2035. Of the state NOL carryforwards, $48 million will expire in 2016, and the remaining balance will expire between 2017 and 2035. The Company also has $102 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 $117 million of U.S. Federal foreign tax credit carryforwards, which expire between 2016 and 2025, and $17 million of state and foreign tax credit carryforwards, $5 million of which can be carried forward indefinitely, and the remaining balance will expire between 2023 and 2027.

As of December 26, 2015, 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.

U.S. deferred income taxes have not been provided on certain undistributed earnings of foreign subsidiaries, which were approximately $204 million as of December 26, 2015. The determination of the amount of the related unrecognized deferred tax liabilities is not practicable because of the complexities associated with the hypothetical calculations. The Company has historically reinvested such earnings overseas in foreign operations and expects that future earnings will also be indefinitely reinvested overseas, with the exception of certain foreign subsidiaries acquired as a result of the Merger. Accordingly, the Company has recorded the deferred tax liabilities associated with the undistributed earnings of such foreign subsidiaries.

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


(In millions)	2015			2014		2013
Beginning balance	$	804		$	683	$	583
Additions, charged to expense		—			121		26
Additions, due to the Merger		—			—		84
Reductions		(41	)		—		(10	)

Ending balance	$	763		$	804	$	683

The Company has significant deferred tax assets in the U.S. and in certain foreign jurisdictions 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. While the Company believes positive evidence exists with regard to the realizability of the deferred tax assets in these jurisdictions, it is not considered sufficient to outweigh the objectively verifiable negative evidence, including the cumulative 36-month pre-tax loss history, as of December 26, 2015.

The Company’s total valuation allowance decreased by $41 million during 2015, of which $27 million was attributable to foreign currency translation adjustments. In addition, the Company recognized income tax expense of $4 million associated with the establishment of valuation allowances in certain foreign jurisdictions in 2015 because the realizability of the related deferred tax assets was no longer more likely than not. Valuation allowances were released in certain foreign jurisdictions in 2014 due to the existence of sufficient positive evidence, which resulted in an income tax benefit of $4 million. As of 2015, valuation allowances remain in the U.S. and certain foreign jurisdictions where the Company believes it is necessary to see further positive evidence, such as sustained achievement of cumulative profits, before these valuation allowances can be released. Given the current earnings trend in the U.S., sufficient positive evidence may become available for the Company to release all or a portion of the U.S. valuation allowance in a future period. Of the $493 million U.S. valuation allowance remaining at December 26, 2015, it is reasonably possible that $265-$360 million may be released in 2016, which would result in a non-cash income tax benefit in the period of release. In addition, if positive evidence develops, the Company may also release valuation allowances in certain foreign jurisdictions in 2016, which would result in an income tax benefit of $3 million in the period of release. However, the exact timing and amount of the valuation allowance releases are subject to change based on the level of profitability actually achieved in future periods. The Company will continue to assess the realizability of its deferred tax assets in the U.S. and remaining foreign jurisdictions.

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


(In millions)	2015			2014			2013
Beginning balance	$	23		$	15		$	5
Increase related to current year tax positions		1			7			4
Increase related to prior year tax positions		1			4			—
Decrease related to prior year tax positions		(6	)		(2	)		—
Decrease related to lapse of statute of limitations		(1	)		—			—
Decrease related to settlements with taxing authorities		—			(1	)		—
Increase related to the Merger		—			—			6

Ending balance	$	18		$	23		$	15

Due to the completion of the Internal Revenue Service (“IRS”) examination for 2013, the Company’s balance of unrecognized tax benefits decreased by $4 million during 2015, which did not impact income tax expense due to an offsetting change in valuation allowance. Included in the balance of $18 million at December 26, 2015, are $6 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. The difference of $12 million primarily results from tax positions which if sustained would be offset by changes in valuation allowance. It is reasonably possible that certain tax positions will be resolved within the next 12 months, which would decrease the Company’s balance of unrecognized tax benefits by $5 million but would not affect the effective tax rate due to an offsetting change in valuation allowance. 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 $2 million and $1 million in 2015 and 2013, 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 $3 million accrued for the payment of interest and penalties as of December 26, 2015, 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 2014 and 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. 26, 2015

LEASES

NOTE 10. 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 lease as a reduction of rent expense. Rent related accruals totaled $230 million and $275 million at December 26, 2015 and December 27, 2014, 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 $579 million, $682 million and $458 million in 2015, 2014, and 2013, respectively. Rent expense was reduced by sublease income of $4 million in 2015, $6 million in 2014, and $4 million in 2013.

Future minimum lease payments due under the non-cancelable portions of leases as of December 26, 2015 include facility leases that were accrued as store closure costs and are as follows:


(In millions)
2016	$	619
2017		504
2018		392
2019		294
2020		202
Thereafter		417

		2,428
Less sublease income		(51	)

Total	$	2,377

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 26, 2015 and December 27, 2014, unfavorable lease deferred credit for store leases with terms above market value amounted to $18 million and $33 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. In 2015 and 2014, the net amortization of favorable and unfavorable lease values reduced rent expense by $7 million and $9 million, respectively. Refer to Note 5 for further details on favorable leases.

Unfavorable leases estimated future amortization is as follows:


(In millions)
2016	$	7
2017		5
2018		3
2019		1
2020		1
Thereafter		1

Total	$	18

The Company has capital lease obligations primarily related to buildings and equipment. Refer to Note 8 for further details on amounts due related to capital lease obligations.

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 26, 2015

STOCKHOLDERS' EQUITY

NOTE 11. STOCKHOLDERS’ EQUITY

Preferred Stock

As of December 26, 2015 and December 27, 2014, there were 1,000,000 shares of $0.01 par value preferred stock authorized; no shares were issued and outstanding.

Treasury Stock

At December 26, 2015, there were 5,915,268 common shares held in treasury. The Company’s Senior Secured Notes and the Facility include restrictions on additional common stock repurchases, based on the Company’s liquidity and borrowing availability. There were no repurchases of common stock in 2015 or 2014.

Accumulated Other Comprehensive Income

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 27, 2014	$	186		$	(79	)	$	107
Other comprehensive loss activity before reclassifications		(78	)		2			(76	)
Amounts reclassified from Accumulated other comprehensive income to Net income ^(a)		—			—			—
Tax impact		—			(1	)		(1	)

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

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


(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension			Total
Balance at December 28, 2013	$	264		$	8		$	272
Other comprehensive loss activity before reclassifications		(79	)		(88	)		(167	)
Amounts reclassified from Accumulated other comprehensive income to Net loss^(a)		1			—			1
Tax impact		—			1			1

Net year-to-date other comprehensive income		(78	)		(87	)		(165	)

Balance at December 27, 2014	$	186		$	(79	)	$	107

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

Because of valuation allowances in U.S. and several international taxing jurisdictions, items other than deferred pension amounts generally have little or no tax impact. The component balances are net of immaterial tax impacts, where applicable.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

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 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

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+ Details

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 26, 2015

STOCK-BASED COMPENSATION

NOTE 12. 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 will be 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.

Each option to purchase OfficeMax common stock outstanding immediately prior to the effective time of the Merger was converted into an option to purchase Office Depot common stock, on the same terms and conditions adjusted by the 2.69 exchange ratio provided for in the Merger Agreement. The fair value of those options was measured using an option pricing model with the following assumptions: risk-free rate 0.42%; expected life 2.34; dividend yield of zero; expected volatility 52.18% and forfeiture rate of 5%.

Similarly, each previously-existing OfficeMax restricted stock and restricted stock unit outstanding immediately prior to the effective time of the Merger was converted into an Office Depot restricted stock or restricted stock unit, as appropriate, at the 2.69 exchange ratio. The fair value of these awards was allocated to consideration and unearned compensation, based on the past and future service conditions. The assumed awards related to the Merger have been identified, as applicable, in the tables that follow.

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 no more than ten years. No stock options were granted in 2015 or 2014.

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


	2015					2014					2013
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at beginning of year		8,602,626		$	4.53		22,702,534		$	4.48		12,578,071		$	5.25
Granted		—			—		—			—		2,003,000			5.24
Assumed — Merger		—			—		—			—		13,142,351			3.62
Forfeited		(574,967	)		9.29		(1,323,664	)		10.46		(2,072,560	)		8.83
Exercised		(2,248,062	)		3.34		(12,776,244	)		3.83		(2,948,328	)		1.40

Outstanding at end of year		5,779,597		$	4.53		8,602,626		$	4.53		22,702,534		$	4.48

The weighted-average grant date fair value of options granted during 2013 was $3.00, using the following weighted average assumptions for grants:

•

Risk-free interest rates of 1.69%

•

Expected lives of six years

•

A dividend yield of zero

•

Expected volatility ranging from 61% to 69%

•

Forfeitures are anticipated at 5% and are adjusted for actual experience over the vesting period

The following table summarizes information about stock options outstanding and exercisable at December 26, 2015.


	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		1,579,501		1.99	$	1.44		1,579,501		1.99	$	1.44
3.01 5.12		788,176		2.12		4.34		784,622		2.11		4.35
5.13		194,805		1.45		5.13		194,805		1.45		5.13
5.14 8.00		2,904,615		5.94		5.66		2,237,948		5.36		5.79
8.01 11.27		312,500		1.20		9.64		312,500		1.20		9.64

$0.83 $11.27		5,779,597		3.93	$	4.53		5,109,376		3.42	$	4.43

The intrinsic value of options exercised in 2015, 2014, and 2013, was $12 million, $27 million, and $10 million, respectively. The aggregate intrinsic value of options outstanding and exercisable at December 26, 2015 was $8 million and $8 million, respectively.

As of December 26, 2015, there was approximately $1.8 million of total stock-based compensation expense that has not yet been recognized relating to non-vested stock option awards. This expense is expected to be recognized over a weighted-average period of approximately 0.9 years. The Company estimates that all of the 0.7 million unvested options will vest. The number of exercisable options was 5.1 million and 6.7 million shares of common stock at December 26, 2015 and December 27, 2014, respectively.

Restricted Stock and Restricted Stock Units

In 2015, the Company granted 2.9 million shares of restricted stock and restricted stock units to eligible employees. In addition, 0.1 million shares were granted to the Board of Directors as part of their annual compensation and vested 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 2015, 2014, and 2013 is presented below.


	2015					2014					2013
	Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price
Outstanding at beginning of year		10,708,372		$	4.65		10,207,546		$	4.76		5,459,900		$	3.52
Granted		2,886,640			9.43		5,809,821			4.33		4,884,848			4.54
Assumed — Merger		—			—		—			—		6,426,968			3.46
Vested		(3,370,569	)		4.46		(4,179,789	)		4.75		(5,788,992	)		4.49
Forfeited		(635,554	)		5.94		(1,129,206	)		3.65		(775,178	)		4.01

Outstanding at end of year		9,588,889		$	6.07		10,708,372		$	4.65		10,207,546		$	4.76

As of December 26, 2015, there was $29 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 1.8 years. Total outstanding shares of 9.6 million include 1.7 million granted to members of the Board of Directors that have vested but will not be issued until separation from service and 7.9 million unvested shares granted to employees. Of the 7.9 million unvested shares at year end, the Company estimates that 7.6 million shares will vest. The total fair value of shares at the time they vested during 2015 was $31 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 of three years from the grant date.

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


	2015					2014					2013
	Shares			Weighted Average Grant-Date Price		Shares			Weighted Average Grant-Date Price		Shares			Weighted Average Grant-Date Price
Outstanding at beginning of the year		6,808,964		$	4.43		3,076,292		$	4.45		1,030,753		$	3.25
Granted		2,745,303			9.45		5,289,047			4.55		4,317,314			4.55
Vested		(283,244	)		3.98		(1,246,006	)		3.74		(261,095	)		3.63
Forfeited		(681,909	)		5.67		(310,369	)		4.16		(2,010,680	)		4.15

Outstanding at end of the year		8,589,114		$	5.95		6,808,964		$	4.43		3,076,292		$	4.45

As of December 26, 2015, there was $30 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. Of the 8.6 million unvested shares at year end, the Company estimates that 8 million shares will vest. The total fair value of shares at the time they vested during 2015 was $3 million.

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 26, 2015

EMPLOYEE BENEFIT PLANS

NOTE 13. 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.

The impact of these assumed plans is included in the consolidated financial statements from the date of the Merger.

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)	2015			2014			2015			2014
Changes in projected benefit obligation:
Obligation at beginning of period	$	1,218		$	1,122		$	17		$	17
Service cost		3			3			—			—
Interest cost		46			52			1			1
Actuarial (gain) loss		(78	)		138			(2	)		1
Currency exchange rate change		—			—			(2	)		(1	)
Benefits paid		(95	)		(97	)		(1	)		(1	)

Obligation at end of period	$	1,094		$	1,218		$	13		$	17

Change in plan assets:
Fair value of plan assets at beginning of period	$	1,039		$	986		$	—		$	—
Actual return (loss) on plan assets		(30	)		107			—			—
Employer contribution		8			43			1			1
Benefits paid		(95	)		(97	)		(1	)		(1	)

Fair value of plan assets at end of period		922			1,039			—			—

Net liability recognized at end of period	$	(172	)	$	(179	)	$	(13	)	$	(17	)

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)	2015			2014			2015			2014
Noncurrent assets	$	—		$	—		$	—		$	—
Current liabilities		(3	)		(3	)		(1	)		(1	)
Noncurrent liabilities		(169	)		(176	)		(12	)		(16	)

Net amount recognized	$	(172	)	$	(179	)	$	(13	)	$	(17	)

Components of Net Periodic Cost (Benefit)

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


	Pension Benefits									Other Benefits
(In millions)	2015			2014			2013			2015		2014		2013
Service cost	$	3		$	3		$	—		$	—	$	—	$	—
Interest cost		46			52			7			1		1		—
Expected return on plan assets		(56	)		(62	)		(8	)		—		—		—

Net periodic cost (benefit)	$	(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)	2015		2014			2013			2015			2014		2013
Accumulated other comprehensive loss (income) at beginning of year	$	67	$	(26	)	$	—		$	1		$	—	$	—
Net loss (gain)		9		93			(26	)		(2	)		1		—

Accumulated other comprehensive loss (income) at end of year	$	76	$	67		$	(26	)	$	(1	)	$	1	$	—

Less than $1 million of the accumulated other comprehensive loss is expected to be recognized as components of net periodic cost during 2016.

Accumulated other comprehensive loss (income) as of year-ends 2014 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
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Discount rate		4.33	%		3.91	%		4.84	%		3.70	%		3.40	%		4.00	%		4.00	%		4.00	%		4.80%

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


										Other Benefits
	Pension Benefits									United States									Canada
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Discount rate		3.91	%		4.84	%		4.76	%		3.40	%		4.00	%		3.80	%		4.00	%		4.80	%		4.60%
Expected long-term rate of return on plan assets		5.85	%		6.50	%		6.60	%		—	%		—	%		—	%		—	%		—	%		—%

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 2016 is 6.00%.

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:


	2015			2014			2013
Weighted average assumptions as of year-end:
Healthcare cost trend rate assumed for next year		6.20	%		6.40	%		6.70%
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 2015, adopting the most applicable mortality tables based on the tables released in 2015 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 $25 million and less than $1 million, respectively. As a result of the mortality assumption change in 2014, pension and other postretirement benefit plan obligations increased by $36 million and $1 million, respectively.

Plan Assets

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


	2015			2014
Money market funds		2	%		2%
Equity securities		9	%		8%
Fixed-income securities		57	%		64%
Mutual funds		31	%		25%
Other		1	%		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 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
Mutual funds		290		—		290		—
Other, including plan receivables and payables		7		7		—		—

Total other		297		7		290		—

	$	922	$	94	$	828	$	—


(In millions)			Fair Value Measurements 2014
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	$	18	$	—	$	18	$	—
Equity securities
U.S. large-cap		24		24		—		—
U.S. small and mid-cap		4		4		—		—
International		58		58		—		—

Total equity securities		86		86		—		—

Fixed-income securities
Corporate bonds		612		—		612		—
Government securities		19		—		19		—
Other fixed-income		39		—		39		—

Total fixed-income securities		670		—		670		—

Other
Equity mutual funds		255		—		255		—
Other, including plan receivables and payables		10		10		—		—

		265		10		255		—

	$	1,039	$	96	$	943	$	—

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 2015, the Company contributed $8 million to these pension plans. Pension contributions for the full year of 2016 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
2016	$	91	$	1
2017		88		1
2018		86		1
2019		84		1
2020		82		1
Next five years		375		4

Pension Plan — Europe

The Company has a defined benefit pension plan which is associated with a 2003 European acquisition and covers a limited number of employees in Europe. During 2008, curtailment of that plan was approved by the trustees and future service benefits ceased for the remaining employees.

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)	2015			2014
Changes in projected benefit obligation:
Obligation at beginning of period	$	239		$	224
Service cost		—			—
Interest cost		9			10
Benefits paid		(7	)		(6	)
Actuarial (gain) loss		(20	)		25
Currency translation		(11	)		(14	)

Obligation at end of period		210			239

Changes in plan assets:
Fair value of plan assets at beginning of period		257			232
Actual return on plan assets		2			47
Benefits paid		(7	)		(6	)
Currency translation		(12	)		(16	)

Fair value of plan assets at end of period		240			257

Net asset recognized at end of period	$	30		$	18

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)	2015			2014			2013
Service cost	$	—		$	—		$	—
Interest cost		9			10			9
Expected return on plan assets		(14	)		(14	)		(13	)

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

Included in Accumulated other comprehensive income were deferred gains of $7 million in 2015 and deferred losses of $1 million in 2014. The deferred gain is not expected to be amortized into income during 2016.

Assumptions

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


	2015			2014			2013
Expected long-term rate of return on plan assets		4.78	%		5.55	%		6.33%
Discount rate		3.90	%		3.80	%		4.60%
Inflation		3.00	%		3.10	%		3.40%

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:


	2015			2014
Cash		—	%		1%
Equity securities		50	%		53%
Fixed-income securities		50	%		46%

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 26, 2015, 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 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


(In millions)			Fair Value Measurements 2014
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	1	$	1	$	—	$	—
Equity securities
Developed market equity funds		81		81		—		—
Emerging market equity funds		27		27		—		—
Mutual funds real estate		7		—		—		7
Mutual funds		17		—		17		—

Total equity securities		132		108		17		7

Fixed-income securities
UK debt funds		21		—		21		—
Liability term matching debt funds		80		—		80		—
Emerging market debt fund		9		—		9		—
High yield debt		14		—		14		—

Total fixed-income securities		124		—		124		—

Total	$	257	$	109	$	141	$	7

The following is a reconciliation of the change in fair value of the pension plan assets calculated based on Level 3 inputs; during 2014, 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 27, 2014	$	7
Actual return on plan assets		1

Balance at December 31, 2015	$	8

Cash Flows

Anticipated benefit payments for the European pension plan, at 2015 year-end exchange rates, are as follows:


(In millions)	Benefit Payments
2016	$	7
2017		7
2018		7
2019		7
2020		8
Next five years		41

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). In December 2014, the Company merged the two contributory defined contribution savings plans that OfficeMax had in place for most of its salaried and hourly employees (also a plan for U.S. employees and a plan for Puerto Rico employees) with the respective Office Depot, Inc. Retirement Savings Plan. 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 2015, 2014, and 2013, $20 million, $16 million, and $9 million, respectively, were recorded as compensation expense for the Company’s contributions to these programs and certain international retirement savings plans. Additionally, nonparticipating annuity premiums were paid for benefits in certain European countries totaling $3 million, $4 million, and $4 million in 2015, 2014, and 2013, respectively.

EARNINGS PER SHARE

12 Months Ended

Dec. 26, 2015

EARNINGS PER SHARE

NOTE 14. EARNINGS PER SHARE

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


(In millions, except per share amounts)	2015		2014			2013
Basic Earnings Per Share
Numerator:
Net income (loss) attributable to common stockholders	$	8	$	(354	)	$	(93	)

Denominator:
Weighted-average shares outstanding		547		535			318
Basic earnings (loss) per share	$	0.01	$	(0.66	)	$	(0.29	)
Diluted Earnings Per Share
Numerator:
Net income (loss) attributable to Office Depot, Inc.	$	8	$	(354	)	$	(20	)

Denominator:
Weighted-average shares outstanding		547		535			318
Effect of dilutive securities:
Stock options and restricted stock		8		—			—

Diluted weighted-average shares outstanding		555		535			318

Diluted earnings (loss) per share	$	0.01	$	(0.66	)	$	(0.29	)

The following potentially dilutive stock options and restricted stock were excluded from the diluted loss per share calculation because of the net loss in the periods.


(In millions)	2015		2014		2013
Potentially dilutive securities:
Stock options and restricted stock		—		8		7
Redeemable preferred stock		—		—		56

Awards of options and nonvested shares representing an additional 4 million, 9 million and 6 million shares of common stock were outstanding for the years ended December 26, 2015, December 27, 2014, and December 28, 2013, respectively, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive. For the three years presented, no tax benefits have been assumed in the weighted average share calculation in jurisdictions with valuation allowances.

Shares of the redeemable preferred stock were fully redeemed in 2013. In periods in which the redeemable preferred stocks were outstanding, basic earnings (loss) per share (“EPS”) was computed after consideration of preferred stock dividends. The redeemable preferred stock had equal dividend participation rights with common stock that required application of the two-class method for computing earnings per share. The preferred stockholders were not required to fund losses.

DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 26, 2015

DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS

NOTE 15. 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. The Company may designate and account for such qualifying arrangements as hedges. As of December 26, 2015, the foreign exchange contracts extend through December 2016 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. At December 26, 2015, Accrued expenses and other liabilities in the Consolidated Balance Sheets includes $2 million related to derivative fuel contracts.

Financial Instruments

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


	2015				2014
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Timber notes receivable	$	905	$	909	$	926	$	930
Company-owned life insurance		88		88		82		82
Financial liabilities:
Recourse debt:
9.75% Senior Secured Notes, due 2019		250		265		250		280
7.35% debentures, due 2016		18		18		18		18
Revenue bonds, due in varying amounts periodically through 2029		186		186		186		185
American & Foreign Power Company, Inc. 5% debentures, due 2030		14		13		14		13
Non-recourse debt		819		825		839		845

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: In connection with the Merger, the Company acquired company-owned life insurance policies on certain former employees. The fair value of the company-owned life insurance policies is derived using determinable net cash surrender value (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, the Company has conducted a detailed quarterly store impairment analysis. 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 $12 million, $25 million, and $26 million in 2015, 2014, and 2013, respectively.

The projections prepared for the 2015 analysis assumed declining sales over the forecast period, consistent with recent experience. 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 12% in 2015 and 13% for the two preceding years. 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 2015 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 less than $1 million. Further, a 100 basis point decrease in sales for all future periods would increase the impairment by $2 million and a 2% increase in payroll costs above the historical growth rate would increase the impairment $2 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

Software and Definite-lived intangible assets — Asset impairment charges for 2014 include $12 million resulting from a decision to convert certain websites to a common platform, $28 million related to the abandonment of a software implementation project in Europe, and $13 million write off of capitalized software following certain information technology platform decisions related to the Merger.

Following identification of retail stores for closure as part of the Real Estate Strategy, 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. Impairments of $1 million and $5 million were recognized during 2015 and 2014, respectively.

Indefinite-lived intangible assets — During 2014, the Company reassessed its use of a private brand trade name used internationally, that previously had been assigned an indefinite life. The expected change in profile and life of this brand, along with assigning an estimated life of three years, resulted in an impairment charge of $5 million. This charge is not included in determination of Division operating income. The estimated fair value was calculated based on a discounted relief from royalty method using Level 3 inputs.

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 at the 2015 test date were substantially in excess of their carrying values.

As of December 29, 2012, goodwill of $45 million was included in the International Division in a reporting unit comprised of wholly-owned operating subsidiaries in Europe and ownership of the joint venture operating in Mexico. The total estimated fair value of the reporting unit exceeded its carrying value by approximately 30%, however, a substantial majority of that excess value was associated with the joint venture. In 2013, when the reporting unit sold its investment in the joint venture and distributed essentially all of the after tax proceeds to its U.S. parent, the fair value fell below its carrying value. Because the investment was accounted for under the equity method, no goodwill was allocated to the gain on disposition of joint venture calculation. However, concurrent with the sale and gain recognition, a goodwill impairment charge of $44 million was recognized.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 26, 2015

COMMITMENTS AND CONTINGENCIES

NOTE 16. 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 $612 million in 2015, $647 million in 2014, and $87 million in the period from Merger date through year-end 2013.

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 26, 2015, 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.

On February 4, 2015, Staples and Office Depot entered into the Staples Merger Agreement under which the companies would combine in a stock and cash transaction. Beginning on February 9, 2015, a number of putative class action lawsuits were filed by purported Office Depot stockholders in the Court of Chancery of the State of Delaware (“Court”) challenging the transaction and alleging that the defendant companies — Office Depot, Staples, Merger Sub, and Starboard Value LP — and individual members of Office Depot’s Board of Directors violated applicable laws by breaching their fiduciary duties and/or aiding and abetting such breaches. The plaintiffs sought, among other things, injunctive relief and rescission, as well as fees and costs. The Court subsequently consolidated all nine of the Delaware cases and named Jamison Miller and Steve Renous as lead plaintiffs. The consolidated case is named In re Office Depot, Inc. Stockholders Litigation Consolidated, C.A. No. 10655-CB. After limited discovery, the plaintiffs and defendants agreed on certain additional disclosures to the Company’s definitive proxy statement filed on May 18, 2015, which were made in a Form 8-K filing on June 5, 2015, and the plaintiffs withdrew from the calendar their planned motion to preliminarily enjoin the stockholder vote on the merger. On September 18, 2015, the Delaware Court of Chancery approved a stipulation under which lead plaintiffs voluntarily dismissed the action with prejudice as to themselves and without prejudice as to the putative class members. The Court retained jurisdiction solely for the purpose of adjudicating lead plaintiffs’ counsel’s anticipated application for an award of attorneys’ fees and reimbursement expenses in connection with the disclosures in the June 5, 2015 Form 8-K. The Company subsequently agreed to pay $0.5 million to plaintiffs’ counsel for attorneys’ fees and expenses in full satisfaction of their claim for attorneys’ fees and expenses in the action. Additionally, in February 2015, two lawsuits were filed in Palm Beach County Circuit Court, namely Keny Petit-Frere v. Office Depot, Inc., et al. and John Sweatman v. Office Depot, Inc., et al. making the same allegations as in the Delaware actions. The lawsuits generally sought injunctive relief enjoining the consummation of the transaction, rescission of the transaction in the event it is consummated, damages, fees, costs, and other remedies. Office Depot filed a motion to dismiss the Florida lawsuits for improper venue, and that motion was granted on May 15, 2015.

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, Heitzenrater v. OfficeMax North America, Inc., et al. was filed in the United States District Court for the Western District of New York in September 2012 as a putative class action alleging violations of the Fair Labor Standards Act and New York Labor Law. The complaint alleges that OfficeMax misclassified its assistant store managers (“ASMs”) as exempt employees. OfficeMax vigorously defended itself in this lawsuit and in November 2015 reached a settlement in the amount of $3.5 million which the court preliminarily approved on November 23, 2015. Final settlement approval and dismissal of the case are expected by mid-2016.

Further, Kyle Rivet v. Office Depot, Inc., formerly known as Constance Gibbons v. Office Depot, Inc., a putative class action that was instituted in May 2012, is pending in the United States District Court for the District of New Jersey. The complaint alleges that Office Depot’s use of the fluctuating workweek (FWW) method of pay was unlawful because Office Depot failed to pay a fixed weekly salary and failed to provide its ASMs with a clear and mutual understanding notification that they would receive a fixed weekly salary for all hours worked. The plaintiffs seek unpaid overtime, punitive damages, and attorneys’ fees. The Company believes in this case that adequate provisions have been made for probable losses and such amounts are not material. However, in light of the early stage of the case and the inherent uncertainty of litigation, the Company is unable to estimate a reasonably possible range of loss in this matter. Office Depot intends to vigorously defend itself in this lawsuit.

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 26, 2015, 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, the Company’s 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 business.

SEGMENT INFORMATION

12 Months Ended

Dec. 26, 2015

SEGMENT INFORMATION

NOTE 17. SEGMENT INFORMATION

The Company has three reportable segments: North American Retail Division, North American Business Solutions Division, and International 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 in Canada and the United States, including Puerto Rico and the U.S. Virgin Islands. North American Business Solutions Division customers are served through dedicated sales forces, through catalogs, telesales, and electronically through its Internet sites. The International Division sells office products and services through direct mail catalogs, contract sales forces, Internet sites, and retail stores in Europe and Asia/Pacific.

The office supply products and services offered across all operating segments are similar. The Company’s three operating segments are the three 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. The International Division is managed separately because of the geographical, operational and marketplace differences outside of North America. Due to the sale of the Company’s interest in Grupo OfficeMax in August 2014, the joint venture’s results have been reported as Other 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 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. Assets for 2014 and 2013 reflect adoption in 2015 of the accounting standards as discussed in Note 1.

A summary of significant accounts and balances by segment, reconciled to consolidated totals follows.


(In millions)		North American Retail		North American Business Solutions		International		Corporate, Eliminations, and Other*		Consolidated Total
Sales	2015	$	6,004	$	5,708	$	2,773	$	—	$	14,485
	2014		6,528		6,013		3,400		155		16,096
	2013		4,614		3,580		3,008		40		11,242
Division operating income	2015		310		226		23		—		559
	2014		126		232		53		—		411
	2013		8		113		36		—		157
Capital expenditures	2015		56		70		19		18		163
	2014		44		29		29		21		123
	2013		63		24		39		11		137
Depreciation and amortization	2015		130		82		31		40		283
	2014		140		85		35		53		313
	2013		105		51		29		24		209
Charges for losses on receivables and inventories	2015		42		11		7		—		60
Charges for losses on receivables and inventories	2014		48		4		13		1		66
	2013		38		9		12		—		59
Net earnings from equity method investments	2015		—		—		—		—		—
Net earnings from equity method investments	2014		—		—		—		—		—
	2013		—		—		14		—		14
Assets	2015		1,625		1,607		963		2,247		6,442
	2014		1,736		1,687		1,160		2,174		6,757
	2013	$	1,804	$	1,554	$	1,152	$	2,855	$	7,365

Amounts included in “Corporate, Eliminations, and Other” consist of (i) assets (including all cash and cash equivalents) and depreciation related to corporate activities, (ii) accounts and balances associated with Grupo OfficeMax prior to disposition, and (iii) $377 million of goodwill in December 28, 2013, which was allocated to reporting units in 2014.

A reconciliation of the measure of Division operating income to Income (loss) before income taxes follows:


(In millions)	2015			2014			2013
Division operating income	$	559		$	411		$	157
Add/(subtract):
Other operating income (loss)		—			8			(2	)
Asset impairments		(13	)		(88	)		(70	)
Merger, restructuring, and other operating expenses, net		(332	)		(403	)		(201	)
Legal accrual		—			(81	)		—
Unallocated expenses		(99	)		(122	)		(89	)
Interest income		24			24			5
Interest expense		(93	)		(89	)		(69	)
Gain on disposition of joint venture		—			—			382
Other income, net		1			—			14

Income (loss) before income taxes	$	47		$	(340	)	$	127

As of December 26, 2015, the Company sold to customers throughout North America, Europe, and Asia/Pacific. The Company operates through wholly-owned entities and participates in other ventures and alliances. There is no single country outside of the United States or single customer that accounts for 10% or more of the Company’s total sales. Geographic financial information relating to the Company’s business is as follows:


	Sales						Property and Equipment, Net
(In millions)	2015		2014		2013		2015		2014		2013
United States	$	11,387	$	12,132	$	8,119	$	617	$	757	$	977
International		3,098		3,964		3,123		168		206		332

Total	$	14,485	$	16,096	$	11,242	$	785	$	963	$	1,309

The Company classifies products into three categories: (1) supplies, (2) technology, and (3) furniture and other. The supplies category includes products such as paper, binders, writing instruments, cleaning and breakroom items and school supplies. The technology category includes products such as desktop and laptop computers, monitors, tablets, printers, ink and toner, cables, software, digital cameras, telephones, and wireless communications products. The furniture and other category includes products such as desks, chairs, luggage, sales in the copy and print centers, and other miscellaneous items.

Total Company sales by product category were as follows:


	2015		2014		2013
Supplies		47.6%		47.2%		46.6%
Technology		37.3%		38.0%		40.6%
Furniture and other		15.1%		14.8%		12.8%

		100.0%		100.0%		100.0%

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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+ Details

QUARTERLY FINANCIAL DATA

12 Months Ended

Dec. 26, 2015

QUARTERLY FINANCIAL DATA

NOTE 18. QUARTERLY FINANCIAL DATA (UNAUDITED)

(In millions, except per share amounts)

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Fiscal Year Ended December 26, 2015*

Net sales

3,877

3,440

3,690

3,477

Gross profit

937

814

936

815

Net income (loss) ⁽¹⁾

(58

)

Net earnings (loss) per share:

Basic

0.08

(0.11

)

0.01

0.03

Diluted

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.

⁽¹⁾

In the first, second, third and fourth quarters of 2015, captions include pre-tax Merger, restructuring, and other operating expenses, net amounting to $43 million, $120 million, $111 million and $58 million, respectively and asset impairments of $5 million, $4 million, $1 million and $3 million, respectively.


(In millions, except per share amounts)	First Quarter			Second Quarter			Third Quarter		Fourth Quarter
Fiscal Year Ended December 27, 2014*
Net sales	$	4,354		$	3,841		$	4,069	$	3,832
Gross profit		1,015			883			987		891
Net income (loss) ⁽¹⁾		(108	)		(189	)		29		(84	)
Net income (loss) attributable to Office Depot, Inc. ⁽¹⁾		(109	)		(190	)		29		(84	)
Net income (loss) available to common stockholders ⁽¹⁾		(109	)		(190	)		29		(84	)
Net earnings (loss) per share:
Basic	$	(0.21	)	$	(0.36	)	$	0.05	$	(0.15	)
Diluted	$	(0.21	)	$	(0.36	)	$	0.05	$	(0.15	)

*	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year.

⁽¹⁾

In the first, second, third and fourth quarters of 2014, captions include pre-tax Merger, restructuring, and other operating expenses, net amounting to $101 million, $103 million, $72 million and $128 million, respectively and asset impairments of $50 million, $22 million, $6 million and $11 million, respectively. The second and third quarters of 2014 include $80 million and $1 million associated to Legal accrual, respectively.

Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Dec. 26, 2015

Schedule II - Valuation and Qualifying Accounts and Reserves

SCHEDULE II

OFFICE DEPOT, INC.

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

(In millions)


Column A	Column B		Column C		Column D		Column E
Description	Balance at Beginning of Period		Additions— Charged to Expense		Deductions— Write-offs, Payments and Other Adjustments		Balance at End of Period
Allowance for doubtful accounts:

2015	$	18		9		11	$	16

2014	$	26		8		16	$	18

2013	$	23		14		11	$	26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 26, 2015

Nature of Business

Basis of Presentation


(In millions)	Previously Reported		Changes			As Reported
Assets:
Prepaid expenses and other current assets	$	245	$	(87	)	$	158
Deferred income taxes — noncurrent		32		4			36
Other assets		242		(4	)		238
Total assets		6,844		(87	)		6,757
Liabilities:
Accrued expenses and other current liabilities		1,517		(3	)		1,514
Deferred income taxes and other long-term liabilities		621		(80	)		541
Long term debt, net of current maturities		674		(4	)		670
Total liabilities		5,223		(87	)		5,136

Fiscal Year

Estimates and Assumptions

Foreign Currency

Cash and Cash Equivalents

Cash and cash equivalents held outside the United States at December 26, 2015 amounted to $253 million.

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 Expenses, net

Merger, restructuring, and other operating expenses, net are not included in the measure of Division operating income. Refer to Note 3 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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 26, 2015

Previously Reported Amounts Reclassified to Conform with Current Year Presentation in Consolidated Balance Sheet

Amounts reported in the Consolidated Balance Sheet as of December 27, 2014 have been reclassified to conform with current year presentation, as follows.


(In millions)	Previously Reported		Changes			As Reported
Assets:
Prepaid expenses and other current assets	$	245	$	(87	)	$	158
Deferred income taxes — noncurrent		32		4			36
Other assets		242		(4	)		238
Total assets		6,844		(87	)		6,757
Liabilities:
Accrued expenses and other current liabilities		1,517		(3	)		1,514
Deferred income taxes and other long-term liabilities		621		(80	)		541
Long term debt, net of current maturities		674		(4	)		670
Total liabilities		5,223		(87	)		5,136

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

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+ Details

MERGER, ACQUISITION, AND DISPOSITIONS (Tables)

12 Months Ended

Dec. 26, 2015

Consolidated Statements of Operations

The amounts included in the 2014 Consolidated Statements of Operations for this business through the date of sale are as follows:


(In millions)
Sales	$	155
Income before income taxes		6
Income attributable to Office Depot, before income taxes		4

- Definition

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

+ References

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

MERGER, RESTRUCTURING, AND OTHER ACCRUALS (Tables)

12 Months Ended

Dec. 26, 2015

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

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


(In millions)	2015		2014		2013
Merger related expenses:
Severance, retention, and relocation	$	15	$	148	$	92
Transaction and integration		81		124		80
Facility closure, contract termination, and other expenses, net		44		60		8

Total Merger related expenses		140		332		180

International restructuring and certain other expenses:
Severance and retention		63		55		17
Integration		6		9		—
Other related expenses		12		7		4

Total International restructuring and certain other expenses		81		71		21

Staples Acquisition expenses:
Retention		72		—		—
Transaction		39		—		—

Total Staples Acquisition expenses		111		—		—

Total Merger, restructuring and other operating expenses, net	$	332	$	403	$	201

Facility Closure and Severance Costs

The activity in the merger and restructuring accruals in 2015 and 2014 is presented in the table below.


(In millions)	Beginning Balance		Charges Incurred		Cash Payments			Currency, Lease Accretion, and Other Adjustments			Ending Balance
2015
Termination benefits:
Merger-related accruals	$	31	$	16	$	(31	)	$	—		$	16
European Restructuring Plan		26		53		(32	)		(5	)		42
Other restructuring accruals		8		7		(14	)		—			1
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		71		76		(70	)		—			77
European Restructuring Plan		—		10		(10	)		1			1
Other restructuring accruals		35		4		(17	)		3			25
Acquired entity accruals		36		3		(15	)		1			25
Staples acquisition related accruals		—		72		—			—			72

Total merger and restructuring accruals	$	207	$	241	$	(189	)	$	—		$	259

2014
Termination benefits:
Merger-related accruals	$	23	$	99	$	(91	)	$	—		$	31
European Restructuring Plan		—		26		—			—			26
Other restructuring accruals		5		23		(21	)		1			8
Acquired entity accruals		4		—		(2	)		(2	)		—
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		25		111		(65	)		—			71
European Restructuring Plan		—		2		(2	)		—			—
Other restructuring accruals		62		5		(33	)		1			35
Acquired entity accruals		59		—		(25	)		2			36

Total merger and restructuring accruals	$	178	$	266	$	(239	)	$	2		$	207

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 26, 2015

Schedule of Property and Equipment

Property and equipment consists of:


(In millions)	December 26, 2015			December 27, 2014
Land	$	62		$	88
Buildings		343			431
Leasehold improvements		755			745
Furniture, fixtures and equipment		1,436			1,480

		2,596			2,744
Less accumulated depreciation		(1,811	)		(1,781	)

Total	$	785		$	963

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 26, 2015			December 27, 2014
Buildings	$	202		$	204
Furniture, fixtures and equipment		84			74

		286			278
Less accumulated depreciation		(146	)		(124	)

Total	$	140		$	154

Other assets held for sale

The assets held for sale activity in 2015 is presented in the table below.


(In millions)
Balance as of December 27, 2014	$	31
Additions		67
Dispositions		(57	)
Reclassifications and other adjustments		(11	)

Balance as of December 26, 2015	$	30

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 26, 2015

Estimated Future Amortization Expense for Intangible Assets

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


(In millions)
2016	$	12
2017		7
2018		5
2019		5
2020		5
Thereafter		20

Total	$	54

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			International Division			Corporate			Total
Goodwill	$	2		$	370		$	909		$	377		$	1,658
Accumulated impairment losses		(2	)		(349	)		(907	)		—			(1,258	)
Foreign currency rate impact		—			—			(2	)		—			(2	)

Balance as of December 28, 2013	$	—		$	21		$	—		$	377		$	398

Purchase accounting adjustments		—			—			—			17			17
Sale of Grupo OfficeMax		—			—			—			(24	)		(24	)
Allocation to reporting units		78			277			15			(370	)		—

Balance as of December 27, 2014	$	78		$	298		$	15		$	—		$	391

Purchase accounting adjustments		—			(13	)		—			—			(13	)

Balance as of December 26, 2015	$	78		$	285		$	15		$	—		$	378

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 26, 2015
(In millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	78	$	(47	)	$	31
Favorable leases		30		(7	)		23
Trade names		9		(9	)		—

Total	$	117	$	(63	)	$	54


	December 27, 2014
(In millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	77	$	(37	)	$	40
Favorable leases		36		(8	)		28
Trade names		9		(5	)		4

Total	$	122	$	(50	)	$	72

Capitalized Software

Estimated Future Amortization Expense for Intangible Assets

Estimated future amortization expense related to capitalized software at December 26, 2015 is as follows:


(In millions)
2016	$	52
2017		31
2018		18
2019		9
2020		4

DEBT (Tables)

12 Months Ended

Dec. 26, 2015

Schedule Of Debt

Debt consists of the following:


(In millions)	December 26, 2015			December 27, 2014
Recourse debt:
Short-term borrowings and current maturities of long-term debt:
Short-term borrowings	$	4		$	1
Capital lease obligations		30			29
7.35% debentures, due 2016		18			—
Other current maturities of long-term debt		4			2

Total	$	56		$	32

Long-term debt, net of current maturities:
Senior Secured Notes, due 2019	$	250		$	250
Unamortized debt issuance cost		(3	)		(4	)

Senior Secured Notes, due 2019, net		247			246

7.35% debentures, due 2016		—			18
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		175			192
Other		12			14

Total	$	634		$	670

Non-recourse debt:
5.42% Securitization Notes, due 2019 — Refer to Note 7	$	735		$	735
Unamortized premium		84			104

Total	$	819		$	839

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)
2016	$	66
2017		40
2018		36
2019		283
2020		39
Thereafter		289

Total		753
Less amount representing interest on capital leases		(60	)

Total		693
Less:
Current portion		(56	)
Unamortized debt issuance cost		(3	)

Total long-term debt	$	634

INCOME TAXES (Tables)

12 Months Ended

Dec. 26, 2015

Schedule of Components of Income (Loss) Before Income Taxes

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


(In millions)	2015			2014			2013
United States	$	136		$	(264	)	$	(230	)
Foreign		(89	)		(76	)		357

Total income (loss) before income taxes	$	47		$	(340	)	$	127

Schedule of Income Tax Expense Related To Income (Loss) From Operations

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


(In millions)	2015			2014			2013
Current:
Federal	$	18		$	(2	)	$	15
State		4			(1	)		5
Foreign		10			15			125
Deferred :
Federal		(1	)		—			(4	)
State		2			3			(1	)
Foreign		6			(3	)		7

Total income tax expense	$	39		$	12		$	147

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)	2015			2014			2013
Federal tax computed at the statutory rate	$	16		$	(119	)	$	44
State taxes, net of Federal benefit		5			4			3
Foreign income taxed at rates other than Federal		(10	)		(10	)		(28	)
Increase (decrease) in valuation allowance		(3	)		112			8
Non-deductible goodwill impairment		—			—			15
Non-deductible Merger expenses		11			—			13
Non-deductible foreign interest		11			13			8
Other non-deductible expenses		5			12			4
Non-taxable income and additional deductible expenses		(4	)		—			—
Change in unrecognized tax benefits		—			(2	)		—
Tax expense from intercompany transactions		7			2			2
Subpart F and dividend income, net of foreign tax credits		1			2			75
Change in tax rate		1			—			2
Deferred taxes on undistributed foreign earnings		—			—			5
Other items, net		(1	)		(2	)		(4	)

Income tax expense	$	39		$	12		$	147

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 26, 2015			December 27, 2014
U.S. and foreign net operating loss carryforwards	$	324		$	322
Deferred rent credit		68			80
Pension and other accrued compensation		181			184
Accruals for facility closings		43			45
Inventory		20			23
Self-insurance accruals		33			33
Deferred revenue		39			39
U.S. and foreign income tax credit carryforwards		232			246
Allowance for bad debts		6			5
Accrued expenses		43			80
Basis difference in fixed assets		81			59
Other items, net		8			8

Gross deferred tax assets		1,078			1,124
Valuation allowance		(763	)		(804	)

Deferred tax assets		315			320

Internal software		5			8
Installment gain on sale of timberlands		260			251
Deferred Subpart F income		27			27
Undistributed foreign earnings		2			2

Deferred tax liabilities		294			288

Net deferred tax assets	$	21		$	32

Summary of Valuation Allowances

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


(In millions)	2015			2014		2013
Beginning balance	$	804		$	683	$	583
Additions, charged to expense		—			121		26
Additions, due to the Merger		—			—		84
Reductions		(41	)		—		(10	)

Ending balance	$	763		$	804	$	683

Summary of Activity Related to Unrecognized Tax Benefits

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


(In millions)	2015			2014			2013
Beginning balance	$	23		$	15		$	5
Increase related to current year tax positions		1			7			4
Increase related to prior year tax positions		1			4			—
Decrease related to prior year tax positions		(6	)		(2	)		—
Decrease related to lapse of statute of limitations		(1	)		—			—
Decrease related to settlements with taxing authorities		—			(1	)		—
Increase related to the Merger		—			—			6

Ending balance	$	18		$	23		$	15

LEASES (Tables)

12 Months Ended

Dec. 26, 2015

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 26, 2015 include facility leases that were accrued as store closure costs and are as follows:


(In millions)
2016	$	619
2017		504
2018		392
2019		294
2020		202
Thereafter		417

		2,428
Less sublease income		(51	)

Total	$	2,377

Unfavorable Leases Estimated Future Amortization

Unfavorable leases estimated future amortization is as follows:


(In millions)
2016	$	7
2017		5
2018		3
2019		1
2020		1
Thereafter		1

Total	$	18

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 26, 2015

Accumulated Other Comprehensive Income (Loss) Activity, Net of Tax

Accumulated Other Comprehensive Income

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 27, 2014	$	186		$	(79	)	$	107
Other comprehensive loss activity before reclassifications		(78	)		2			(76	)
Amounts reclassified from Accumulated other comprehensive income to Net income ^(a)		—			—			—
Tax impact		—			(1	)		(1	)

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

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


(In millions)	Foreign Currency Translation Adjustments			Change in Deferred Pension			Total
Balance at December 28, 2013	$	264		$	8		$	272
Other comprehensive loss activity before reclassifications		(79	)		(88	)		(167	)
Amounts reclassified from Accumulated other comprehensive income to Net loss^(a)		1			—			1
Tax impact		—			1			1

Net year-to-date other comprehensive income		(78	)		(87	)		(165	)

Balance at December 27, 2014	$	186		$	(79	)	$	107

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

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 26, 2015

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.


	2015					2014					2013
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at beginning of year		8,602,626		$	4.53		22,702,534		$	4.48		12,578,071		$	5.25
Granted		—			—		—			—		2,003,000			5.24
Assumed — Merger		—			—		—			—		13,142,351			3.62
Forfeited		(574,967	)		9.29		(1,323,664	)		10.46		(2,072,560	)		8.83
Exercised		(2,248,062	)		3.34		(12,776,244	)		3.83		(2,948,328	)		1.40

Outstanding at end of year		5,779,597		$	4.53		8,602,626		$	4.53		22,702,534		$	4.48

Summary of Information About Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at December 26, 2015.


	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		1,579,501		1.99	$	1.44		1,579,501		1.99	$	1.44
3.01 5.12		788,176		2.12		4.34		784,622		2.11		4.35
5.13		194,805		1.45		5.13		194,805		1.45		5.13
5.14 8.00		2,904,615		5.94		5.66		2,237,948		5.36		5.79
8.01 11.27		312,500		1.20		9.64		312,500		1.20		9.64

$0.83 $11.27		5,779,597		3.93	$	4.53		5,109,376		3.42	$	4.43

Summary of Status of Company's Nonvested Shares

A summary of the status of the Company’s nonvested shares and changes during 2015, 2014, and 2013 is presented below.


	2015					2014					2013
	Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price		Shares			Weighted Average Grant- Date Price
Outstanding at beginning of year		10,708,372		$	4.65		10,207,546		$	4.76		5,459,900		$	3.52
Granted		2,886,640			9.43		5,809,821			4.33		4,884,848			4.54
Assumed — Merger		—			—		—			—		6,426,968			3.46
Vested		(3,370,569	)		4.46		(4,179,789	)		4.75		(5,788,992	)		4.49
Forfeited		(635,554	)		5.94		(1,129,206	)		3.65		(775,178	)		4.01

Outstanding at end of year		9,588,889		$	6.07		10,708,372		$	4.65		10,207,546		$	4.76

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.


	2015					2014					2013
	Shares			Weighted Average Grant-Date Price		Shares			Weighted Average Grant-Date Price		Shares			Weighted Average Grant-Date Price
Outstanding at beginning of the year		6,808,964		$	4.43		3,076,292		$	4.45		1,030,753		$	3.25
Granted		2,745,303			9.45		5,289,047			4.55		4,317,314			4.55
Vested		(283,244	)		3.98		(1,246,006	)		3.74		(261,095	)		3.63
Forfeited		(681,909	)		5.67		(310,369	)		4.16		(2,010,680	)		4.15

Outstanding at end of the year		8,589,114		$	5.95		6,808,964		$	4.43		3,076,292		$	4.45

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 26, 2015

North America

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


	Pension Benefits						Other Benefits
(In millions)	2015			2014			2015			2014
Changes in projected benefit obligation:
Obligation at beginning of period	$	1,218		$	1,122		$	17		$	17
Service cost		3			3			—			—
Interest cost		46			52			1			1
Actuarial (gain) loss		(78	)		138			(2	)		1
Currency exchange rate change		—			—			(2	)		(1	)
Benefits paid		(95	)		(97	)		(1	)		(1	)

Obligation at end of period	$	1,094		$	1,218		$	13		$	17

Change in plan assets:
Fair value of plan assets at beginning of period	$	1,039		$	986		$	—		$	—
Actual return (loss) on plan assets		(30	)		107			—			—
Employer contribution		8			43			1			1
Benefits paid		(95	)		(97	)		(1	)		(1	)

Fair value of plan assets at end of period		922			1,039			—			—

Net liability recognized at end of period	$	(172	)	$	(179	)	$	(13	)	$	(17	)

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


	Pension Benefits						Other Benefits
(In millions)	2015			2014			2015			2014
Noncurrent assets	$	—		$	—		$	—		$	—
Current liabilities		(3	)		(3	)		(1	)		(1	)
Noncurrent liabilities		(169	)		(176	)		(12	)		(16	)

Net amount recognized	$	(172	)	$	(179	)	$	(13	)	$	(17	)

Components of Net Periodic Cost (Benefit)

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


	Pension Benefits									Other Benefits
(In millions)	2015			2014			2013			2015		2014		2013
Service cost	$	3		$	3		$	—		$	—	$	—	$	—
Interest cost		46			52			7			1		1		—
Expected return on plan assets		(56	)		(62	)		(8	)		—		—		—

Net periodic cost (benefit)	$	(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)	2015		2014			2013			2015			2014		2013
Accumulated other comprehensive loss (income) at beginning of year	$	67	$	(26	)	$	—		$	1		$	—	$	—
Net loss (gain)		9		93			(26	)		(2	)		1		—

Accumulated other comprehensive loss (income) at end of year	$	76	$	67		$	(26	)	$	(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
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Discount rate		4.33	%		3.91	%		4.84	%		3.70	%		3.40	%		4.00	%		4.00	%		4.00	%		4.80%

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


										Other Benefits
	Pension Benefits									United States									Canada
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Discount rate		3.91	%		4.84	%		4.76	%		3.40	%		4.00	%		3.80	%		4.00	%		4.80	%		4.60%
Expected long-term rate of return on plan assets		5.85	%		6.50	%		6.60	%		—	%		—	%		—	%		—	%		—	%		—%

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:


	2015			2014			2013
Weighted average assumptions as of year-end:
Healthcare cost trend rate assumed for next year		6.20	%		6.40	%		6.70%
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:


	2015			2014
Money market funds		2	%		2%
Equity securities		9	%		8%
Fixed-income securities		57	%		64%
Mutual funds		31	%		25%
Other		1	%		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 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
Mutual funds		290		—		290		—
Other, including plan receivables and payables		7		7		—		—

Total other		297		7		290		—

	$	922	$	94	$	828	$	—


(In millions)			Fair Value Measurements 2014
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	$	18	$	—	$	18	$	—
Equity securities
U.S. large-cap		24		24		—		—
U.S. small and mid-cap		4		4		—		—
International		58		58		—		—

Total equity securities		86		86		—		—

Fixed-income securities
Corporate bonds		612		—		612		—
Government securities		19		—		19		—
Other fixed-income		39		—		39		—

Total fixed-income securities		670		—		670		—

Other
Equity mutual funds		255		—		255		—
Other, including plan receivables and payables		10		10		—		—

		265		10		255		—

	$	1,039	$	96	$	943	$	—

Anticipated Benefit Payments

Anticipated benefit payments by year are as follows:


(In millions)	Pension Benefits		Other Benefits
2016	$	91	$	1
2017		88		1
2018		86		1
2019		84		1
2020		82		1
Next five years		375		4

Europe

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


(In millions)	2015			2014
Changes in projected benefit obligation:
Obligation at beginning of period	$	239		$	224
Service cost		—			—
Interest cost		9			10
Benefits paid		(7	)		(6	)
Actuarial (gain) loss		(20	)		25
Currency translation		(11	)		(14	)

Obligation at end of period		210			239

Changes in plan assets:
Fair value of plan assets at beginning of period		257			232
Actual return on plan assets		2			47
Benefits paid		(7	)		(6	)
Currency translation		(12	)		(16	)

Fair value of plan assets at end of period		240			257

Net asset recognized at end of period	$	30		$	18

Components of Net Periodic Cost (Benefit)

The components of net periodic benefit are presented below:


(In millions)	2015			2014			2013
Service cost	$	—		$	—		$	—
Interest cost		9			10			9
Expected return on plan assets		(14	)		(14	)		(13	)

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

Weighted Average Assumptions Used in the Measurement of Benefit Obligations

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


	2015			2014			2013
Expected long-term rate of return on plan assets		4.78	%		5.55	%		6.33%
Discount rate		3.90	%		3.80	%		4.60%
Inflation		3.00	%		3.10	%		3.40%

Allocation of Plan Assets Table

The allocation of Plan assets is as follows:


	2015			2014
Cash		—	%		1%
Equity securities		50	%		53%
Fixed-income securities		50	%		46%

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 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


(In millions)			Fair Value Measurements 2014
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	1	$	1	$	—	$	—
Equity securities
Developed market equity funds		81		81		—		—
Emerging market equity funds		27		27		—		—
Mutual funds real estate		7		—		—		7
Mutual funds		17		—		17		—

Total equity securities		132		108		17		7

Fixed-income securities
UK debt funds		21		—		21		—
Liability term matching debt funds		80		—		80		—
Emerging market debt fund		9		—		9		—
High yield debt		14		—		14		—

Total fixed-income securities		124		—		124		—

Total	$	257	$	109	$	141	$	7

Anticipated Benefit Payments

Anticipated benefit payments for the European pension plan, at 2015 year-end exchange rates, are as follows:


(In millions)	Benefit Payments
2016	$	7
2017		7
2018		7
2019		7
2020		8
Next five years		41

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


(In millions)	Total
Balance at December 27, 2014	$	7
Actual return on plan assets		1

Balance at December 31, 2015	$	8

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 26, 2015

Calculation of Net Loss Per Common Share

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


(In millions, except per share amounts)	2015		2014			2013
Basic Earnings Per Share
Numerator:
Net income (loss) attributable to common stockholders	$	8	$	(354	)	$	(93	)

Denominator:
Weighted-average shares outstanding		547		535			318
Basic earnings (loss) per share	$	0.01	$	(0.66	)	$	(0.29	)
Diluted Earnings Per Share
Numerator:
Net income (loss) attributable to Office Depot, Inc.	$	8	$	(354	)	$	(20	)

Denominator:
Weighted-average shares outstanding		547		535			318
Effect of dilutive securities:
Stock options and restricted stock		8		—			—

Diluted weighted-average shares outstanding		555		535			318

Diluted earnings (loss) per share	$	0.01	$	(0.66	)	$	(0.29	)

Schedule of Potentially Dilutive Stock Options and Restricted Stock Excluded from Calculation of Diluted Loss per Share

The following potentially dilutive stock options and restricted stock were excluded from the diluted loss per share calculation because of the net loss in the periods.


(In millions)	2015		2014		2013
Potentially dilutive securities:
Stock options and restricted stock		—		8		7
Redeemable preferred stock		—		—		56

DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 26, 2015

Schedule of Fair Value of Assets and Liabilities

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


	2015				2014
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Timber notes receivable	$	905	$	909	$	926	$	930
Company-owned life insurance		88		88		82		82
Financial liabilities:
Recourse debt:
9.75% Senior Secured Notes, due 2019		250		265		250		280
7.35% debentures, due 2016		18		18		18		18
Revenue bonds, due in varying amounts periodically through 2029		186		186		186		185
American & Foreign Power Company, Inc. 5% debentures, due 2030		14		13		14		13
Non-recourse debt		819		825		839		845

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 26, 2015

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 follows.


(In millions)		North American Retail		North American Business Solutions		International		Corporate, Eliminations, and Other*		Consolidated Total
Sales	2015	$	6,004	$	5,708	$	2,773	$	—	$	14,485
	2014		6,528		6,013		3,400		155		16,096
	2013		4,614		3,580		3,008		40		11,242
Division operating income	2015		310		226		23		—		559
	2014		126		232		53		—		411
	2013		8		113		36		—		157
Capital expenditures	2015		56		70		19		18		163
	2014		44		29		29		21		123
	2013		63		24		39		11		137
Depreciation and amortization	2015		130		82		31		40		283
	2014		140		85		35		53		313
	2013		105		51		29		24		209
Charges for losses on receivables and inventories	2015		42		11		7		—		60
Charges for losses on receivables and inventories	2014		48		4		13		1		66
	2013		38		9		12		—		59
Net earnings from equity method investments	2015		—		—		—		—		—
Net earnings from equity method investments	2014		—		—		—		—		—
	2013		—		—		14		—		14
Assets	2015		1,625		1,607		963		2,247		6,442
	2014		1,736		1,687		1,160		2,174		6,757
	2013	$	1,804	$	1,554	$	1,152	$	2,855	$	7,365

Reconciliation Of Division Operating Profit To Consolidated Earnings

A reconciliation of the measure of Division operating income to Income (loss) before income taxes follows:


(In millions)	2015			2014			2013
Division operating income	$	559		$	411		$	157
Add/(subtract):
Other operating income (loss)		—			8			(2	)
Asset impairments		(13	)		(88	)		(70	)
Merger, restructuring, and other operating expenses, net		(332	)		(403	)		(201	)
Legal accrual		—			(81	)		—
Unallocated expenses		(99	)		(122	)		(89	)
Interest income		24			24			5
Interest expense		(93	)		(89	)		(69	)
Gain on disposition of joint venture		—			—			382
Other income, net		1			—			14

Income (loss) before income taxes	$	47		$	(340	)	$	127

Geographic Financial Information Relating To Business

Geographic financial information relating to the Company’s business is as follows:


	Sales						Property and Equipment, Net
(In millions)	2015		2014		2013		2015		2014		2013
United States	$	11,387	$	12,132	$	8,119	$	617	$	757	$	977
International		3,098		3,964		3,123		168		206		332

Total	$	14,485	$	16,096	$	11,242	$	785	$	963	$	1,309

Sales By Product Category Information

Total Company sales by product category were as follows:


	2015		2014		2013
Supplies		47.6%		47.2%		46.6%
Technology		37.3%		38.0%		40.6%
Furniture and other		15.1%		14.8%		12.8%

		100.0%		100.0%		100.0%

QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Dec. 26, 2015

Schedule of Quarterly Financial Data

(In millions, except per share amounts)

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Fiscal Year Ended December 26, 2015*

Net sales

3,877

3,440

3,690

3,477

Gross profit

937

814

936

815

Net income (loss) ⁽¹⁾

(58

)

Net earnings (loss) per share:

Basic

0.08

(0.11

)

0.01

0.03

Diluted

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.

⁽¹⁾


(In millions, except per share amounts)	First Quarter			Second Quarter			Third Quarter		Fourth Quarter
Fiscal Year Ended December 27, 2014*
Net sales	$	4,354		$	3,841		$	4,069	$	3,832
Gross profit		1,015			883			987		891
Net income (loss) ⁽¹⁾		(108	)		(189	)		29		(84	)
Net income (loss) attributable to Office Depot, Inc. ⁽¹⁾		(109	)		(190	)		29		(84	)
Net income (loss) available to common stockholders ⁽¹⁾		(109	)		(190	)		29		(84	)
Net earnings (loss) per share:
Basic	$	(0.21	)	$	(0.36	)	$	0.05	$	(0.15	)
Diluted	$	(0.21	)	$	(0.36	)	$	0.05	$	(0.15	)

*	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year.

⁽¹⁾

Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 26, 2015 USD ($) Customer Segment	Dec. 27, 2014 USD ($) Customer	Dec. 28, 2013 USD ($) Customer	Feb. 04, 2015 $ / shares	Dec. 29, 2012 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of operating segments \| Segment	3
Percent of subsidiary shares owned	88.00%
Accounts payable and accrued expenses and other current liabilities not yet presented for payment	$ 32	$ 91
Cash and cash equivalents	1,069	1,071	$ 955		$ 671
Trade receivables, net	774	812
Allowance for doubtful accounts	$ 16	$ 18
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	$ 392	$ 452
Receivables net	1,166	1,264
Accrued payroll-related expenses	291	343
Advertising expense	370	447	$ 378
Prepaid advertising costs	14	21
Vendor Arrangements Receivables
Summary Of Significant Accounting Policies [Line Items]
Other receivables	308	360
Receivables Sold Under Factoring Agreement during the period
Summary Of Significant Accounting Policies [Line Items]
Receivables under Factoring Agreement	345	479
Receivables net	6	6
Prepaid Expenses and Other Current Assets
Summary Of Significant Accounting Policies [Line Items]
Factoring agreement, retention guarantee	10	$ 11
Non-US
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	253
Staples, Inc.
Summary Of Significant Accounting Policies [Line Items]
Common stock issued in cash \| $ / shares				$ 7.25
Business acquisition common stock exchange ratio				0.2188
Termination fee payable if conditions are met	185
Termination fee receivable if agreement is terminated	$ 250
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

Previously Reported Amounts Reclassified to Conform with Current Year Presentation in Consolidated Balance Sheet (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Assets:
Prepaid expenses and other current assets	$ 127	$ 158
Deferred income taxes - noncurrent	24	36
Other assets	236	238
Total assets	6,442	6,757	$ 7,365
Liabilities:
Accrued expenses and other current liabilities	1,355	1,514
Deferred income taxes and other long-term liabilities	459	541
Long term debt, net of current maturities	634	670
Total liabilities	$ 4,839	5,136
Previously Reported
Assets:
Prepaid expenses and other current assets		245
Deferred income taxes - noncurrent		32
Other assets		242
Total assets		6,844
Liabilities:
Accrued expenses and other current liabilities		1,517
Deferred income taxes and other long-term liabilities		621
Long term debt, net of current maturities		674
Total liabilities		5,223
Changes
Assets:
Prepaid expenses and other current assets		(87)
Deferred income taxes - noncurrent		4
Other assets		(4)
Total assets		(87)
Liabilities:
Accrued expenses and other current liabilities		(3)
Deferred income taxes and other long-term liabilities		(80)
Long term debt, net of current maturities		(4)
Total liabilities		$ (87)

Merger, Acquisition, and Dispositions - Additional Information (Detail) $ / shares in Units, $ in Millions, $ in Millions		1 Months Ended	3 Months Ended			12 Months Ended
	Nov. 05, 2013 USD ($) $ / shares shares	Aug. 31, 2014 USD ($)	Mar. 28, 2015 USD ($)	Sep. 28, 2013 USD ($)	Sep. 28, 2013 MXN ($)	Dec. 26, 2015 $ / shares	Dec. 27, 2014 USD ($) $ / shares	Dec. 28, 2013 USD ($)
Business Acquisition [Line Items]
Percentage of shares issued to acquire entity						88.00%
Common stock shares outstanding \| shares	530,000,000
Common stock, par value \| $ / shares						$ 0.01	$ 0.01
Consideration transferred in stock transaction amounted			$ 9
Percentage of ownership in combined company by shareholders of the Company before the Merger	55.00%
Joint venture, Investment sale amount							$ 43	$ 675
Joint venture, gain on sale of investment								382
Cumulative translation losses released from Other comprehensive income								39
Net income from equity method investments								14
Office Depot De Mexico
Business Acquisition [Line Items]
Percentage of equity method investment sold				50.00%	50.00%
Joint venture, Investment sale amount				$ 680	$ 8,777
Joint venture, gain on sale of investment				$ 382
Net income from equity method investments								$ 13
Grupo OfficeMax
Business Acquisition [Line Items]
Sale of stock, percentage of ownership before transaction		51.00%
Proceeds from sale of consolidated joint venture		$ 43
Loss on sale of consolidated joint venture		$ (2)
OfficeMax
Business Acquisition [Line Items]
Office Depot shares of common stock issued to former OfficeMax holders \| shares	240,000,000
Percentage of shares issued to acquire entity	45.00%
Merger agreement, new shares of common stock issuable \| shares	2.69
Common stock, par value \| $ / shares	$ 2.50
Consideration transferred in stock transaction amounted	$ 1,400

Amounts Included in Condensed Consolidated Statements of Operations (Detail) $ in Millions	12 Months Ended
	Dec. 27, 2014 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales	$ 155
Income before income taxes	6
Income attributable to Office Depot, before income taxes	$ 4

- Definition

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details

Merger, Restructuring and Other Accruals - Additional Information (Detail) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 26, 2015 USD ($)	Sep. 26, 2015 USD ($)	Jun. 27, 2015 USD ($)	Mar. 28, 2015 USD ($)	Dec. 27, 2014 USD ($)	Sep. 27, 2014 USD ($)	Jun. 28, 2014 USD ($)	Mar. 29, 2014 USD ($)	Dec. 26, 2015 USD ($) Store	Dec. 27, 2014 USD ($) Store	Dec. 28, 2013 USD ($)
Merger Restructuring And Other Operating Expenses [Line Items]
Number of retail stores expected to be closed through 2016 \| Store									400
Number of retail stores closed \| Store									181	168
Gain on sale of warehouse facilities classified as assets held for sale									$ 36
Merger, restructuring, and other operating expenses, net	$ 58	$ 111	$ 120	$ 43	$ 128	$ 72	$ 103	$ 101	332	$ 403	$ 201
Charges Incurred									241	266
Merger, restructuring and other operating expenses other than liabilities									91	137
Merger transaction and integration expenses									81	124	$ 80
International restructuring integration expenses									6	9
Fixed assets and rent related expenses									$ 1	1
Employee non-cash equity compensation expenses										5
Minimum
Merger Restructuring And Other Operating Expenses [Line Items]
Number of retail stores expected to be closed in 2016 \| Store									50
Staples, Inc.
Merger Restructuring And Other Operating Expenses [Line Items]
Transaction expenses									$ 39
European restructuring plan
Merger Restructuring And Other Operating Expenses [Line Items]
International restructuring integration expenses									6	9
Merger, restructuring, and other operating expenses, net
Merger Restructuring And Other Operating Expenses [Line Items]
Gain on sale of warehouse facilities classified as assets held for sale									36
Charges Incurred									$ 241	$ 266

Summary of Major Components of Merger, Restructuring and Other Operating Expenses, Net (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Merger related expenses
Merger related expenses, Severance, retention, and relocation									$ 15	$ 148	$ 92
Merger related expenses, Transaction and integration									81	124	80
Merger related expenses,Facility closure, contract termination and other expenses, net									44	60	8
Total Merger related expenses									140	332	180
International restructuring and certain other expenses
Severance and retention									63	55	17
International restructuring and certain other expenses, Integration									6	9
International restructuring and certain other expenses, Other related expenses									12	7	4
Total International restructuring and certain other expenses									81	71	21
Staples Acquisition expenses
Retention									72
Transaction	$ 39								39
Total Staples Acquisition expenses									111
Total Merger, restructuring and other operating expenses, net	$ 58	$ 111	$ 120	$ 43	$ 128	$ 72	$ 103	$ 101	$ 332	$ 403	$ 201

Severance and Facility Closure Costs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 207	$ 178
Charges Incurred	241	266
Cash Payments	(189)	(239)
Currency, Lease Accretion, and Other Adjustments		2
Ending Balance	259	207
Termination benefits \| Merger related accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	31	23
Charges Incurred	16	99
Cash Payments	(31)	(91)
Ending Balance	16	31
Termination benefits \| Other restructuring accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	8	5
Charges Incurred	7	23
Cash Payments	(14)	(21)
Currency, Lease Accretion, and Other Adjustments		1
Ending Balance	1	8
Termination benefits \| Acquired entity accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance		4
Cash Payments		(2)
Currency, Lease Accretion, and Other Adjustments		(2)
Termination benefits \| European restructuring plan
Restructuring Cost and Reserve [Line Items]
Beginning Balance	26
Charges Incurred	53	26
Cash Payments	(32)
Currency, Lease Accretion, and Other Adjustments	(5)
Ending Balance	42	26
Lease and contract obligations, accruals for facilities closures and other costs \| Merger related accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	71	25
Charges Incurred	76	111
Cash Payments	(70)	(65)
Ending Balance	77	71
Lease and contract obligations, accruals for facilities closures and other costs \| Other restructuring accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	35	62
Charges Incurred	4	5
Cash Payments	(17)	(33)
Currency, Lease Accretion, and Other Adjustments	3	1
Ending Balance	25	35
Lease and contract obligations, accruals for facilities closures and other costs \| Acquired entity accruals
Restructuring Cost and Reserve [Line Items]
Beginning Balance	36	59
Charges Incurred	3
Cash Payments	(15)	(25)
Currency, Lease Accretion, and Other Adjustments	1	2
Ending Balance	25	36
Lease and contract obligations, accruals for facilities closures and other costs \| Acquired Entities
Restructuring Cost and Reserve [Line Items]
Charges Incurred	72
Ending Balance	72
Lease and contract obligations, accruals for facilities closures and other costs \| European restructuring plan
Restructuring Cost and Reserve [Line Items]
Charges Incurred	10	2
Cash Payments	(10)	$ (2)
Currency, Lease Accretion, and Other Adjustments	1
Ending Balance	$ 1

Schedule of Property and Equipment (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 2,596	$ 2,744
Less accumulated depreciation	(1,811)	(1,781)
Total	785	963	$ 1,309
Land
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	62	88
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	343	431
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	755	745
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 1,436	$ 1,480

Schedule of Assets Held under Capital Leases (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Capital Leased Assets [Line Items]
Assets held under capital leases, Gross	$ 286	$ 278
Less accumulated depreciation	(146)	(124)
Total	140	154
Buildings
Capital Leased Assets [Line Items]
Assets held under capital leases, Gross	202	204
Furniture, fixtures and equipment
Capital Leased Assets [Line Items]
Assets held under capital leases, Gross	$ 84	$ 74

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 193	$ 210	$ 149
Capitalized software costs, Gross	544	558
Capitalized software costs, Net	114	148
Amortization of capitalized software costs	$ 76	$ 86	$ 56
Capitalized Software
Property, Plant and Equipment [Line Items]
Weighted average remaining amortization period	2 years 4 months 24 days

Estimated Future Amortization Expense Related to Capitalized Software (Detail) $ in Millions	Dec. 26, 2015 USD ($)
Finite Lived Intangible Assets Future Amortization Expense [Line Items]
2016	$ 12
2017	7
2018	5
2019	5
2020	5
Capitalized Software
Finite Lived Intangible Assets Future Amortization Expense [Line Items]
2016	52
2017	31
2018	18
2019	9
2020	$ 4

Assets Held for Sale Activity (Detail) $ in Millions	12 Months Ended
Assets Held for Sale Activity (Detail) $ in Millions	Dec. 26, 2015 USD ($)
Long Lived Assets Held-for-sale [Line Items]
Beginning Balance	$ 31
Additions	67
Dispositions	(57)
Reclassifications and other adjustments	(11)
Ending Balance	$ 30

Schedule of Goodwill by Segment (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Goodwill [Line Items]
Purchase accounting adjustments	$ (13)	$ 17
Goodwill			$ 1,658
Sale of Grupo OfficeMax		(24)
Accumulated impairment losses			(1,258)
Foreign currency rate impact			(2)
Ending Balance	378	391	398
Operating Segments \| North American Retail Division
Goodwill [Line Items]
Goodwill			2
Accumulated impairment losses			(2)
Allocation to reporting units		78
Ending Balance	78	78
Operating Segments \| North American Business Solutions Division
Goodwill [Line Items]
Purchase accounting adjustments	(13)
Goodwill			370
Accumulated impairment losses			(349)
Allocation to reporting units		277
Ending Balance	285	298	21
Operating Segments \| International Division
Goodwill [Line Items]
Goodwill			909
Accumulated impairment losses			(907)
Allocation to reporting units		15
Foreign currency rate impact			(2)
Ending Balance	$ 15	15
Corporate Eliminations and Other
Goodwill [Line Items]
Purchase accounting adjustments		17
Goodwill			377
Sale of Grupo OfficeMax		(24)
Allocation to reporting units		$ (370)
Ending Balance			$ 377

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended								12 Months Ended
	Aug. 31, 2014	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Other Intangible Assets [Line Items]
Adjustment to initial allocation of purchase price, property and equipment										$ (16)
Adjustment to initial allocation of purchase price, tax account adjustments										1
Disposal group, including discontinued operation, goodwill											$ 24
Intangible asset impairment										1	5
Asset impairments		$ 3	$ 1	$ 4	$ 5	$ 11	$ 6	$ 22	$ 50	13	88	$ 70
Amortization of intangible assets										$ 14	$ 18	$ 4
Trade Names
Other Intangible Assets [Line Items]
Estimated useful life of intangible assets											3 years
Asset impairments											$ 5
Indefinite-lived intangible assets						$ 6					$ 6
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
Grupo OfficeMax
Other Intangible Assets [Line Items]
Disposal group, including discontinued operation, goodwill	$ 24

Definite Lived Intangible Assets Included in Other Intangible Assets Net (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 117	$ 122
Accumulated Amortization	(63)	(50)
Net Carrying Value	54	72
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	78	77
Accumulated Amortization	(47)	(37)
Net Carrying Value	31	40
Favorable Leases
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	30	36
Accumulated Amortization	(7)	(8)
Net Carrying Value	23	28
Trade Names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	9	9
Accumulated Amortization	$ (9)	(5)
Net Carrying Value		$ 4

Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Finite Lived Intangible Assets And Liabilities Future Amortization Expense [Line Items]
2016	$ 12
2017	7
2018	5
2019	5
2020	5
Thereafter	20
Net Carrying Value	$ 54	$ 72

Investments - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Sep. 27, 2014	Jun. 28, 2014	Dec. 27, 2014	Dec. 28, 2013
Investment [Line Items]
Proceeds from sale of available for sale securities			$ 43
Boise Cascade Holdings, LLC
Investment [Line Items]
Cost method investment ownership percentage				20.00%
Proceeds from sale of available for sale securities	$ 1
Boise Cascade Company
Investment [Line Items]
Indirect ownership interest				4.00%
Distribution received, shares		1.6
Proceeds from sale of available for sale securities		$ 43

Timber Notes/Non-Recourse Debt - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Nov. 05, 2013	Dec. 26, 2015	Dec. 27, 2014
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		$ 905	$ 926
Timber notes receivable - maturity year	2020
Non-recourse debt		819	$ 839
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. 26, 2015	Dec. 27, 2014
Debt Instrument [Line Items]
Unamortized debt issuance cost	$ 3
Total	56	$ 32
Total	634	670
Recourse Debt
Debt Instrument [Line Items]
Capital lease obligations	175	192
Other	12	14
Total	634	670
Recourse Debt \| 7.35% debentures, due 2016 \| Current Liability
Debt Instrument [Line Items]
Short-term borrowings	4	1
Capital lease obligations	30	29
Long term debt	18
Other current maturities of long-term debt	4	2
Total	56	32
Recourse Debt \| 7.35% debentures, due 2016 \| Noncurrent Liability
Debt Instrument [Line Items]
Long term debt		18
Recourse Debt \| Senior Secured Notes, due 2019
Debt Instrument [Line Items]
Long term debt	250	250
Unamortized debt issuance cost	(3)	(4)
Senior Secured Notes, due 2019, net	247	246
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	84	104
Senior Secured Notes, due 2019, net	$ 819	$ 839

Schedule of Debt (Parenthetical) (Detail)	12 Months Ended
Schedule of Debt (Parenthetical) (Detail)	Dec. 26, 2015	Dec. 27, 2014
Recourse Debt \| 7.35% debentures, due 2016
Debt Instrument [Line Items]
Long term debt, due date	2016
Long term debt, interest rate	7.35%
Recourse Debt \| 7.35% debentures, due 2016 \| Current Liability
Debt Instrument [Line Items]
Long term debt, due date	2016	2016
Long term debt, interest rate	7.35%	7.35%
Recourse Debt \| 7.35% debentures, due 2016 \| Noncurrent Liability
Debt Instrument [Line Items]
Long term debt, due date	2016	2016
Long term debt, interest rate	7.35%	7.35%
Recourse Debt \| Senior Secured Notes, due 2019
Debt Instrument [Line Items]
Long term debt, due date	2019	2019
Recourse Debt \| Revenue bonds, due in varying amounts periodically through 2029
Debt Instrument [Line Items]
Long term debt, due date	2029	2029
Recourse Debt \| American & Foreign Power Company, Inc. 5% debentures, due 2030
Debt Instrument [Line Items]
Long term debt, due date	2030	2030
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%

Debt - Additional Information (Detail) - USD ($)			12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Mar. 14, 2012	May 25, 2011	Dec. 26, 2015	Dec. 27, 2014	Nov. 05, 2013
Debt Instrument [Line Items]
Acquisition of voting power			50.00%
Effective interest rate on short-term borrowings			4.00%
Short-term borrowings maximum month end amount			$ 6,000,000
Short-term borrowings maximum amount occurred month			2015-06
Short-term borrowings maximum monthly average occurred month			2015-07
Maximum
Debt Instrument [Line Items]
Short-term borrowings maximum monthly average amount			$ 5,000,000
Amended Credit Agreement
Debt Instrument [Line Items]
Credit Agreement, maximum borrowing capacity		$ 1,250,000,000
Credit Agreement, increased borrowing capacity		$ 250,000,000
Extended maturity date		May 25, 2017
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			$ 1,200,000,000
Amount outstanding under credit facility			0
Amount outstanding under letters of credit			84,000,000
Average borrowings under the Facility			$ 0
Amended Credit Agreement \| Federal Funds Rate Plus
Debt Instrument [Line Items]
Alternate base rate and one month adjusted LIBO rate			0.50%
Amended Credit Agreement \| Adjusted LIBO Rate
Debt Instrument [Line Items]
Alternate base rate and one month adjusted LIBO 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
Amendment
Debt Instrument [Line Items]
Credit Agreement, maximum borrowing capacity					$ 1,250,000,000
Credit Agreement, current borrowing capacity					$ 1,000,000,000
9.75% senior secured notes, due 2019
Debt Instrument [Line Items]
Extended maturity date	Mar. 15, 2019
Aggregate principal amount of senior notes	$ 250,000,000
Interest rate on senior notes	9.75%
Senior notes, redemption rate excluding premium percentage			100.00%
Redemption prices, plus accrued and unpaid interest, Percentage			101.00%
9.75% senior secured notes, due 2019 \| Redeemed On or Prior To March 15, 2016
Debt Instrument [Line Items]
Senior notes, redemption rate of principal amount			104.875%
Senior notes, early redemption date			Mar. 15, 2016
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]
Interest rate on senior notes			5.00%	5.00%
Senior secured notes, due date			2030	2030
Recourse Debt \| 7.35% debentures, due 2016
Debt Instrument [Line Items]
Interest rate on senior notes			7.35%
Senior secured notes, due date			2016
Recourse Debt \| 7.35% debentures, due 2016 \| Current Liability
Debt Instrument [Line Items]
Interest rate on senior notes			7.35%	7.35%
Senior secured notes, due date			2016	2016
Short-term borrowings			$ 4,000,000	$ 1,000,000

Schedule of Maturities of Recourse Long-Term Debt and Capital Lease Obligations (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Schedule of Capital Lease Obligations and Recourse Debt [Line Items]
2016	$ 66
2017	40
2018	36
2019	283
2020	39
Thereafter	289
Total	753
Less amount representing interest on capital leases	(60)
Total	693
Total	693
Less: Current portion	(56)
Unamortized debt issuance cost	(3)
Total long-term debt	$ 634	$ 670

Schedule of Components of Income (Loss) before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Schedule Of Components Of Income Loss Before Income Taxes [Line Items]
United States	$ 136	$ (264)	$ (230)
Foreign	(89)	(76)	357
Income (loss) before income taxes	$ 47	$ (340)	$ 127

Schedule Income Tax Expense Related to Income (Loss) From Operations (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Components Of Income Tax Expense Benefit [Line Items]
Federal, Current	$ 18	$ (2)	$ 15
State, Current	4	(1)	5
Foreign, Current	10	15	125
Federal, Deferred	(1)		(4)
State, Deferred	2	3	(1)
Foreign, Deferred	6	(3)	7
Income tax expense	$ 39	$ 12	$ 147

Reconciliation Of Income Taxes at Federal Statutory Rate to Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Income Tax Rate Reconciliation [Line Items]
Federal tax computed at the statutory rate	$ 16	$ (119)	$ 44
State taxes, net of Federal benefit	5	4	3
Foreign income taxed at rates other than Federal	(10)	(10)	(28)
Increase (decrease) in valuation allowance	(3)	112	8
Non-deductible goodwill impairment			15
Non-deductible Merger expenses	11		13
Non-deductible foreign interest	11	13	8
Other non-deductible expenses	5	12	4
Non-taxable income and additional deductible expenses	(4)
Change in unrecognized tax benefits		(2)
Tax expense from intercompany transactions	7	2	2
Subpart F and dividend income, net of foreign tax credits	1	2	75
Change in tax rate	1		2
Deferred taxes on undistributed foreign earnings			5
Other items, net	(1)	(2)	(4)
Income tax expense	$ 39	$ 12	$ 147

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013	Dec. 29, 2012
Income Taxes [Line Items]
Total income tax expense		$ 39	$ 12	$ 147
Share based compensation expense including tax benefit value		3		5
Stock options exercised including income tax benefits		7		3
Undistributed earnings of foreign subsidiaries		$ 204
Cumulative loss position, period		36 months
Valuation allowance		$ 763	804
Valuation allowances, tax expense (benefit)		(3)	112	8
Decreased in unrecognized tax benefits		(4)
Unrecognized Tax Benefits		18	23	15	$ 5
Net uncertain tax positions, if recognized affect effective tax rate		6
Unrecognized Tax Benefits results from positions if sustained offset by change in valuation allowance		12
Expected decrease in unrecognized tax benefits in the next 12 months		5
Unrecognized tax benefits, interest and penalty expense		2		1
Unrecognized tax benefits, interest and penalty benefit			(9)
Unrecognized tax benefits, accrued interest and penalties		3
Decrease in tax credit carryforwards		6
Deferred Income Taxes and Other Long-Term Liabilities
Income Taxes [Line Items]
Deferred income tax liabilities		3	4
Foreign
Income Taxes [Line Items]
Operating Loss Carry forwards		903
Operating loss carryforwards indefinitely		737
Valuation allowances, tax expense (benefit)		$ 4	(4)
Foreign \| Minimum
Income Taxes [Line Items]
Operating loss carryforwards, expiration dates		2017
Foreign \| Maximum
Income Taxes [Line Items]
Operating loss carryforwards, expiration dates		2035
Foreign \| Expire in Twenty Sixteen
Income Taxes [Line Items]
Operating Loss Carry forwards		$ 7
Foreign \| Scenario, Forecast
Income Taxes [Line Items]
Valuation allowances, tax expense (benefit)	$ (3)
State
Income Taxes [Line Items]
Operating Loss Carry forwards		$ 1,500
State \| Minimum
Income Taxes [Line Items]
Operating loss carryforwards, expiration dates		2017
State \| Maximum
Income Taxes [Line Items]
Operating loss carryforwards, expiration dates		2035
State \| Expire in Twenty Sixteen
Income Taxes [Line Items]
Operating Loss Carry forwards		$ 48
U.S. Federal
Income Taxes [Line Items]
Alternate minimum tax credit carryforwards		102
Valuation allowance		493
U.S. Federal \| Scenario, Forecast \| Minimum
Income Taxes [Line Items]
Estimated valuation allowance, expected to be released in 2016	265
U.S. Federal \| Scenario, Forecast \| Maximum
Income Taxes [Line Items]
Estimated valuation allowance, expected to be released in 2016	$ 360
U.S. Federal Foreign
Income Taxes [Line Items]
Tax credit carryforwards		$ 117
U.S. Federal Foreign \| Earliest Tax Year
Income Taxes [Line Items]
Tax credit carryforward, expiration year		2016
U.S. Federal Foreign \| Latest Tax Year
Income Taxes [Line Items]
Tax credit carryforward, expiration year		2025
State and Foreign
Income Taxes [Line Items]
Tax credit carryforwards		$ 17
State and Foreign \| Earliest Tax Year
Income Taxes [Line Items]
Tax credit carryforward, expiration year		2023
State and Foreign \| Latest Tax Year
Income Taxes [Line Items]
Tax credit carryforward, expiration year		2027
State and Foreign \| Indefinite Carryforward
Income Taxes [Line Items]
Tax credit carryforwards		$ 5
Office Depot De Mexico
Income Taxes [Line Items]
Mexican income taxes				117
U.S. income tax expense				23
Total income tax expense				140
Valuation Allowance of Deferred Tax Assets
Income Taxes [Line Items]
Valuation allowance		763	$ 804	$ 683	$ 583
Decrease in valuation allowance		(41)
Valuation allowance, foreign currency translation adjustments		$ (27)

Schedule of Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Components Of Deferred Income Tax Assets And Liabilities [Line Items]
U.S. and foreign net operating loss carryforwards	$ 324	$ 322
Deferred rent credit	68	80
Pension and other accrued compensation	181	184
Accruals for facility closings	43	45
Inventory	20	23
Self-insurance accruals	33	33
Deferred revenue	39	39
U.S. and foreign income tax credit carryforwards	232	246
Allowance for bad debts	6	5
Accrued expenses	43	80
Basis difference in fixed assets	81	59
Other items, net	8	8
Gross deferred tax assets	1,078	1,124
Valuation allowance	(763)	(804)
Deferred tax assets	315	320
Internal software	5	8
Installment gain on sale of timberlands	260	251
Deferred Subpart F income	27	27
Undistributed foreign earnings	2	2
Deferred tax liabilities	294	288
Net deferred tax assets	$ 21	$ 32

Summary of Valuation Allowances (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Income Taxes [Line Items]
Beginning balance	$ 804
Additions, charged to expense	9	$ 8	$ 14
Reductions	(11)	(16)	(11)
Ending balance	763	804
Valuation Allowance of Deferred Tax Assets
Income Taxes [Line Items]
Beginning balance	804	683	583
Additions, charged to expense		121	26
Additions, due to the Merger			84
Reductions	(41)		(10)
Ending balance	$ 763	$ 804	$ 683

Summary of Activity Related to Unrecognized Tax Benefit (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Unrecognized Tax Benefits Summary [Line Items]
Beginning balance	$ 23	$ 15	$ 5
Increase related to current year tax positions	1	7	4
Increase related to prior year tax positions	1	4
Decrease related to prior year tax positions	(6)	(2)
Decrease related to lapse of statute of limitations	(1)
Decrease related to settlements with taxing authorities		(1)
Increase related to the Merger			6
Ending balance	$ 18	$ 23	$ 15

Leases - Additional Information (Detail) $ in Millions	12 Months Ended
Leases - Additional Information (Detail) $ in Millions	Dec. 26, 2015 USD ($) Phase	Dec. 27, 2014 USD ($)	Dec. 28, 2013 USD ($)
Operating Leased Assets [Line Items]
Rent related accruals	$ 230	$ 275
Rent expense including equipment rental	579	682	$ 458
Sublease income	4	6	$ 4
Off-market unfavorable lease liability	18	33
Net amortization of favorable and unfavorable lease values	$ 7	$ 9
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. 26, 2015 USD ($)
Operating Leased Assets [Line Items]
2016	$ 619
2017	504
2018	392
2019	294
2020	202
Thereafter	417
Total before sublease income	2,428
Less sublease income	(51)
Total	$ 2,377

Unfavorable Leases Estimated Future Amortization (Detail) $ in Millions	Dec. 26, 2015 USD ($)
Unfavorable Lease [Line Items]
Unfavorable leases estimated future amortization	$ 18
2016
Unfavorable Lease [Line Items]
Unfavorable leases estimated future amortization	7
2017
Unfavorable Lease [Line Items]
Unfavorable leases estimated future amortization	5
2018
Unfavorable Lease [Line Items]
Unfavorable leases estimated future amortization	3
2019
Unfavorable Lease [Line Items]
Unfavorable leases estimated future amortization	1
2020
Unfavorable Lease [Line Items]
Unfavorable leases estimated future amortization	1
Thereafter
Unfavorable Lease [Line Items]
Unfavorable leases estimated future amortization	$ 1

Stockholders' Equity - Additional Information (Detail) - $ / shares	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Shareholders Equity [Line Items]
Treasury stock shares held	5,915,268	5,915,268
Common stock, repurchased	0	0
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

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

12 Months Ended

Dec. 26, 2015

Dec. 27, 2014

Dec. 28, 2013

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning Balance

$ 107

$ 272

Other comprehensive loss activity before reclassifications

(76)

(167)

Amounts reclassified from Accumulated other comprehensive income to Net income (loss)

^[1]

Tax impact

(1)

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

(77)

(165)

$ 59

Ending Balance

107

272

Foreign Currency Translation Adjustments

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning Balance

186

264

Other comprehensive loss activity before reclassifications

(78)

(79)

Amounts reclassified from Accumulated other comprehensive income to Net income (loss)

^[1]

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

(78)

Ending Balance

108

186

264

Change in Deferred Pension

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning Balance

(79)

Other comprehensive loss activity before reclassifications

(88)

Tax impact

(1)

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

(87)

Ending Balance

$ (78)

$ (79)

$ 8

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

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Nov. 05, 2013	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013	Dec. 29, 2007	Dec. 29, 2012
Employee Benefit Plans [Line Items]
Risk-free interest rate				1.69%
Expected life, years				6 years
Dividend yield				0.00%
Expected volatility rate, minimum				61.00%
Stock option grants, exercise price, minimum percentage on fair market value					100.00%
Number of option granted during period		0	0	2,003,000
Weighted average grant date fair value of options granted				$ 3.00
Expected volatility rate, maximum				69.00%
Anticipated rate of forfeitures against actual				5.00%
Intrinsic value of options exercised		$ 12.0	$ 27.0	$ 10.0
Intrinsic value of options outstanding		8.0
Intrinsic value of options exercisable		8.0
Stock-based compensation expense not yet recognized relating to non-vested awards		$ 1.8
Stock-based compensation expense relating to non-vested stock option awards, weighted-average recognition period, years		10 months 24 days
Number of unvested stock option shares		700,000
Number of stock option shares estimated to vest		700,000
Number of exercisable shares		5,100,000	6,700,000
Long Term Stock Incentive Plan
Employee Benefit Plans [Line Items]
Risk-free interest rate	0.42%
Expected life, years	2 years 4 months 2 days
Dividend yield	0.00%
Expected volatility rate, minimum	52.18%
Anticipated rate of forfeitures against actual	5.00%
Performance Based Stock Incentive Program
Employee Benefit Plans [Line Items]
Award vesting period		3 years
Stock-based compensation expense not yet recognized relating to non-vested awards		$ 30.0
Shares granted in period		2,745,303	5,289,047	4,317,314
Stock-based compensation expense relating to non-vested awards, weighted-average recognition period, years		1 year 10 months 24 days
Nonvested shares		8,589,114	6,808,964	3,076,292		1,030,753
Estimated number of shares expected to vest		8,000,000
Fair value of shares vested		$ 3.0
OfficeMax
Employee Benefit Plans [Line Items]
Merger agreement, new shares of common stock exchange ratio	2.69
Restricted Stock
Employee Benefit Plans [Line Items]
Award vesting period		3 years
Stock-based compensation expense not yet recognized relating to non-vested awards		$ 29.0
Shares granted in period		2,900,000
Stock-based compensation expense relating to non-vested awards, weighted-average recognition period, years		1 year 9 months 18 days
Nonvested shares		7,900,000
Estimated number of shares expected to vest		7,600,000
Fair value of shares vested		$ 31.0
Share Granted To Directors As Compensation
Employee Benefit Plans [Line Items]
Shares granted in period		100,000
Shares outstanding, Number		1,700,000
Restricted Stock and Restricted Stock Units
Employee Benefit Plans [Line Items]
Shares granted in period		2,886,640	5,809,821	4,884,848
Nonvested shares		9,588,889	10,708,372	10,207,546		5,459,900
Minimum \| Prior Plans
Employee Benefit Plans [Line Items]
Award vesting period					1 year
Minimum \| Prior Plans \| After the date of grant
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 \| After the date of grant
Employee Benefit Plans [Line Items]
Award vesting period					3 years

Summary of Stock Option Activity Awards (Detail) - $ / shares	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of year, Shares	8,602,626	22,702,534	12,578,071
Granted, Shares	0	0	2,003,000
Forfeited, Shares	(574,967)	(1,323,664)	(2,072,560)
Exercised, Shares	(2,248,062)	(12,776,244)	(2,948,328)
Outstanding at end of year, Shares	5,779,597	8,602,626	22,702,534
Outstanding at beginning of year, Weighted Average Exercise Price	$ 4.53	$ 4.48	$ 5.25
Granted, Weighted Average Exercise Price			5.24
Forfeited, Weighted Average Exercise Price	9.29	10.46	8.83
Exercised, Weighted Average Exercise Price	3.34	3.83	1.40
Outstanding at end of year, Weighted Average Exercise Price	$ 4.53	$ 4.53	$ 4.48
Assumed-Merger
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares			13,142,351
Granted, Weighted Average Exercise Price			$ 3.62

Summary of Information About Stock Options Outstanding and Exercisable (Detail)	12 Months Ended
	Dec. 26, 2015 $ / 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	1,579,501
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	1 year 11 months 27 days
Options Outstanding, Weighted Average Exercise Price	$ 1.44
Options Exercisable \| shares	1,579,501
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	1 year 11 months 27 days
Options Exercisable, Weighted Average Exercise Price	$ 1.44
$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	788,176
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	2 years 1 month 13 days
Options Outstanding, Weighted Average Exercise Price	$ 4.34
Options Exercisable \| shares	784,622
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	2 years 1 month 10 days
Options Exercisable, Weighted Average Exercise Price	$ 4.35
$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	194,805
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	1 year 5 months 12 days
Options Outstanding, Weighted Average Exercise Price	$ 5.13
Options Exercisable \| shares	194,805
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	1 year 5 months 12 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	2,904,615
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	5 years 11 months 9 days
Options Outstanding, Weighted Average Exercise Price	$ 5.66
Options Exercisable \| shares	2,237,948
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	5 years 4 months 10 days
Options Exercisable, Weighted Average Exercise Price	$ 5.79
$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)	1 year 2 months 12 days
Options Outstanding, Weighted Average Exercise Price	$ 9.64
Options Exercisable \| shares	312,500
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	1 year 2 months 12 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	5,779,597
Options Outstanding, Weighted Average Remaining Contractual Life (in years)	3 years 11 months 5 days
Options Outstanding, Weighted Average Exercise Price	$ 4.53
Options Exercisable \| shares	5,109,376
Options Exercisable, Weighted Average Remaining Contractual Life (in years)	3 years 5 months 1 day
Options Exercisable, Weighted Average Exercise Price	$ 4.43

Summary of Status of Nonvested Shares (Detail) - Restricted Stock and Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of the period, Shares	10,708,372	10,207,546	5,459,900
Granted, Shares	2,886,640	5,809,821	4,884,848
Vested, Share	(3,370,569)	(4,179,789)	(5,788,992)
Forfeited, Share	(635,554)	(1,129,206)	(775,178)
Outstanding at end of the period, shares	9,588,889	10,708,372	10,207,546
Outstanding at beginning of the period, Weighted Average Grant-Date Price	$ 4.65	$ 4.76	$ 3.52
Granted, Weighted Average Grant-Date Price	9.43	4.33	4.54
Vested, Weighted Average Grant-Date Price	4.46	4.75	4.49
Forfeited, Weighted Average Grant-Date Price	5.94	3.65	4.01
Outstanding at end of the period, Weighted Average Grant-Date Price	$ 6.07	$ 4.65	$ 4.76
Assumed-Merger
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares			6,426,968
Granted, Weighted Average Grant-Date Price			$ 3.46

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. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of the period, Shares	6,808,964	3,076,292	1,030,753
Granted, Shares	2,745,303	5,289,047	4,317,314
Vested, Shares	(283,244)	(1,246,006)	(261,095)
Forfeited, Shares	(681,909)	(310,369)	(2,010,680)
Outstanding at end of the period, shares	8,589,114	6,808,964	3,076,292
Outstanding at beginning of the period, Weighted Average Grant-Date Price	$ 4.43	$ 4.45	$ 3.25
Granted, Weighted Average Grant-Date Price	9.45	4.55	4.55
Vested, Weighted Average Grant-Date Price	3.98	3.74	3.63
Forfeited, Weighted Average Grant-Date Price	5.67	4.16	4.15
Outstanding at end of the period, Weighted Average Grant-Date Price	$ 5.95	$ 4.43	$ 4.45

Changes in Pension and Other Postretirement Benefit Obligations, Plan Assets and Funded Status (Detail) - North America - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Obligation at beginning of period	$ 1,218	$ 1,122
Service cost	3	3
Interest cost	46	52	$ 7
Actuarial (gain) loss	(78)	138
Benefits paid	(95)	(97)
Obligation at end of period	1,094	1,218	1,122
Fair value of plan assets at beginning of period	1,039	986
Actual return (loss) on plan assets	(30)	107
Employer contribution	8	43
Benefits paid	(95)	(97)
Fair value of plan assets at end of period	922	1,039	986
Net liability recognized at end of period	(172)	(179)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Obligation at beginning of period	17	17
Interest cost	1	1
Actuarial (gain) loss	(2)	1
Currency exchange rate change	(2)	(1)
Benefits paid	(1)	(1)
Obligation at end of period	13	17	$ 17
Employer contribution	1	1
Benefits paid	(1)	(1)
Net liability recognized at end of period	$ (13)	$ (17)

Amounts Recognized in Consolidated Balance Sheets Related to Defined Benefit Pension and Other Postretirement Benefit Plans (Detail) - North America - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Noncurrent assets	$ 0	$ 0
Current liabilities	(3)	(3)
Noncurrent liabilities	(169)	(176)
Net amount recognized	(172)	(179)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Noncurrent assets	0	0
Current liabilities	(1)	(1)
Noncurrent liabilities	(12)	(16)
Net amount recognized	$ (13)	$ (17)

Components of Net Periodic Pension Cost (Benefit) (Detail) - North America - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 3	$ 3
Interest cost	46	52	$ 7
Expected return on plan assets	(56)	(62)	(8)
Net periodic cost (benefit)	(7)	(7)	$ (1)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1	1
Net periodic cost (benefit)	$ 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. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Accumulated other comprehensive loss (income) at beginning of year	$ 67	$ (26)
Net loss (gain)	9	93	$ (26)
Accumulated other comprehensive loss (income) at end of year	76	67	$ (26)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Accumulated other comprehensive loss (income) at beginning of year	1
Net loss (gain)	(2)	1
Accumulated other comprehensive loss (income) at end of year	$ (1)	$ 1

Employee Benefit Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Worldwide Defined Contribution Plans
Defined Benefit Plan Disclosure [Line Items]
Compensation expense relating to retirement savings plans		$ 20,000,000	$ 16,000,000	$ 9,000,000
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]
Increase (decrease) in pension obligations		(25,000,000)	36,000,000
Increase (decrease) in other postretirement obligations			$ 1,000,000
Change in Mortality Table \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Increase (decrease) in other postretirement obligations		$ (1,000,000)
North America \| Scenario, Forecast
Defined Benefit Plan Disclosure [Line Items]
Expected long-term return on plan assets	6.00%
North America \| US Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset target allocation, Minimum		13.00%
Plan asset target allocation, Maximum		23.00%
North America \| International Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset target allocation, Minimum		8.00%
Plan asset target allocation, Maximum		18.00%
North America \| Global Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset target allocation, Minimum		5.00%
Plan asset target allocation, Maximum		15.00%
North America \| Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset target allocation, Minimum		53.00%
Plan asset target allocation, Maximum		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]
Expected long-term return on plan assets		5.85%	6.50%	6.60%
Pension contributions, current period		$ 8,000,000
Pension contributions, for 2016		$ 3,000,000
Europe
Defined Benefit Plan Disclosure [Line Items]
Expected long-term return on plan assets		4.78%	5.55%	6.33%
Deferred loss (gain) included in accumulated other comprehensive income		$ 7,000,000	$ (1,000,000)
Percentage of allowance expense on assets		0.50%
Europe \| Contribution For European Employees
Defined Benefit Plan Disclosure [Line Items]
Nonparticipating annuity premiums		$ 3,000,000	$ 4,000,000	$ 4,000,000
Europe \| United Kingdom Government Securities
Defined Benefit Plan Disclosure [Line Items]
Incremental return on UK government securities		4.00%

Weighted Average Assumptions Used in the Measurement of Benefit Obligations (Detail) - North America	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Pension Benefits
Weighted Average Discount Rate [Line Items]
Discount rate	4.33%	3.91%	4.84%
Other Benefits, United States
Weighted Average Discount Rate [Line Items]
Discount rate	3.70%	3.40%	4.00%
Other Benefits, Canada
Weighted Average Discount Rate [Line Items]
Discount rate	4.00%	4.00%	4.80%

Weighted Average Assumptions Used in the Measurement of Net Periodic Benefit Cost (Detail) - North America	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.91%	4.84%	4.76%
Expected long-term rate of return on plan assets	5.85%	6.50%	6.60%
Other Benefits, United States
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.40%	4.00%	3.80%
Other Benefits, Canada
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.00%	4.80%	4.60%

Assumed Healthcare Cost Trend Rates (Detail) - North America	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Weighted average assumptions as of year-end:
Healthcare cost trend rate assumed for next year	6.20%	6.40%	6.70%
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. 26, 2015	Dec. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	100.00%	100.00%
Money Market Funds
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	2.00%	2.00%
US Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	9.00%	8.00%
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	57.00%	64.00%
Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	31.00%	25.00%
Other
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	1.00%	1.00%

Fair Value of Pension Plan Assets (Detail) - North America - Pension Benefits - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 922	$ 1,039	$ 986
Money Market Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	19	18
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	87	86
Equity Securities \| U S Large Cap
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	25	24
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	58	58
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	519	670
Fixed Income Securities \| Corporate Bond Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	485	612
Fixed Income Securities \| US Treasury Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	10	19
Fixed Income Securities \| Other Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	24	39
All Other Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	297	265
All Other Securities \| Equity Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		255
All Other Securities \| Other Including Plan Receivables And Payables
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	7	10
All Other Securities \| Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	290
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	94	96
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	87	86
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	25	24
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	58	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	7	10
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	7	10
Significant Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	828	943
Significant Observable Inputs (Level 2) \| Money Market Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	19	18
Significant Observable Inputs (Level 2) \| Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	519	670
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| Corporate Bond Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	485	612
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| US Treasury Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	10	19
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| Other Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	24	39
Significant Observable Inputs (Level 2) \| All Other Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	290	255
Significant Observable Inputs (Level 2) \| All Other Securities \| Equity Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		$ 255
Significant Observable Inputs (Level 2) \| All Other Securities \| Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 290

Estimated Future Benefit Payments (Detail) - North America - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2016	$ 91
2017	88
2018	86
2019	84
2020	82
Next five years	$ 375
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
2016		$ 1
2017		1
2018		1
2019		1
2020		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. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Obligation at beginning of period	$ 239	$ 224
Service cost	0	0	$ 0
Interest cost	9	10	9
Benefits paid	(7)	(6)
Actuarial (gain) loss	(20)	25
Currency translation	(11)	(14)
Obligation at end of period	210	239	224
Fair value of plan assets at beginning of period	257	232
Actual return on plan assets	2	47
Benefits paid	(7)	(6)
Currency translation	(12)	(16)
Fair value of plan assets at end of period	240	257	$ 232
Net asset recognized at end of period	$ 30	$ 18

Components of Net Periodic Pension (Benefit) Cost (Detail) - Europe - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0
Interest cost	9	10	9
Expected return on plan assets	(14)	(14)	(13)
Net periodic pension benefit	$ (5)	$ (4)	$ (4)

Assumptions Used in Calculating Funded Status (Detail) - Europe	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets	4.78%	5.55%	6.33%
Discount rate	3.90%	3.80%	4.60%
Inflation	3.00%	3.10%	3.40%

Allocation of Plan Assets (Detail) - Europe	Dec. 26, 2015	Dec. 27, 2014
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		1.00%
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	50.00%	53.00%
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets	50.00%	46.00%

Fair value of Plan Assets (Detail) - Europe - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	$ 240	$ 257	$ 232
Cash
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total		1
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	120	132
Equity Securities \| Developed Markets Equity Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	70	81
Equity Securities \| Emerging Markets Equity Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	15	27
Equity Securities \| Mutual Funds Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	8	7
Equity Securities \| Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	27	17
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	120	124
Fixed Income Securities \| UK debt funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	25	21
Fixed Income Securities \| Liability Term Matching Debt Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	71	80
Fixed Income Securities \| Emerging Markets Debt Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	8	9
Fixed Income Securities \| High Yield Debt
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	16	14
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	85	109
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Cash
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total		1
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	85	108
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	70	81
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	15	27
Significant Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	147	141
Significant Observable Inputs (Level 2) \| Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	27	17
Significant Observable Inputs (Level 2) \| Equity Securities \| Mutual Funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	27	17
Significant Observable Inputs (Level 2) \| Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	120	124
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| UK debt funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	25	21
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	71	80
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| Emerging Markets Debt Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	8	9
Significant Observable Inputs (Level 2) \| Fixed Income Securities \| High Yield Debt
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	16	14
Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	8	7
Significant Unobservable Inputs (Level 3) \| Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	8	7
Significant Unobservable Inputs (Level 3) \| Equity Securities \| Mutual Funds Real Estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, total	$ 8	$ 7

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. 26, 2015	Dec. 27, 2014
Schedule of Pension Plan Assets by Fair Value [Line Items]
Actual return on plan assets	$ 2	$ 47
Significant Unobservable Inputs (Level 3)
Schedule of Pension Plan Assets by Fair Value [Line Items]
Balance at December 27, 2014	7
Actual return on plan assets	1
Balance at December 31, 2015	$ 8	$ 7

Anticipated Benefit Payments (Detail) - Europe $ in Millions	Dec. 26, 2015 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2016	$ 7
2017	7
2018	7
2019	7
2020	8
Next five years	$ 41

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

3 Months Ended

12 Months Ended

Dec. 26, 2015

^[1]

Sep. 26, 2015

^[1]

Jun. 27, 2015

^[1]

Mar. 28, 2015

^[1]

Dec. 27, 2014

^[1]

Sep. 27, 2014

^[1]

Jun. 28, 2014

^[1]

Mar. 29, 2014

^[1]

Dec. 26, 2015

Dec. 27, 2014

Dec. 28, 2013

Earnings Per Share [Line Items]

Net income (loss) attributable to common stockholders

$ (84)

^[2]

$ 29

^[2]

$ (190)

^[2]

$ (109)

^[2]

$ 8

$ (354)

$ (93)

Weighted-average shares outstanding

547

535

318

Basic earnings (loss) per share

$ 0.03

$ 0.01

$ (0.11)

$ 0.08

$ (0.15)

$ 0.05

$ (0.36)

$ (0.21)

$ 0.01

$ (0.66)

$ (0.29)

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

$ (84)

^[2]

$ 29

^[2]

$ (190)

^[2]

$ (109)

^[2]

$ 8

$ (354)

$ (20)

Weighted-average shares outstanding

547

535

318

Stock options and restricted stock

Diluted weighted-average shares outstanding

555

535

318

Diluted earnings (loss) per share

$ 0.03

$ 0.01

$ (0.11)

$ 0.08

$ (0.15)

$ 0.05

$ (0.36)

$ (0.21)

$ 0.01

$ (0.66)

$ (0.29)

[1]

Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year.

[2]

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

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

+ References + Details

Schedule of Potentially Dilutive Stock Options and Restricted Stock Excluded from Calculation of Diluted Loss per Share (Detail) - shares shares in Millions	12 Months Ended
	Dec. 27, 2014	Dec. 28, 2013
Stock options and restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	8	7
Redeemable preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities		56

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Nonvested 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	4	9	6

Derivative Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013	Dec. 29, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges	$ 3	$ 1	$ 4	$ 5	$ 11	$ 6	$ 22	$ 50	$ 13	$ 88	$ 70
Capitalized computer software impairments										13
Goodwill	378				$ 391				378	391	398
Website
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges										12
Trade Names
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges										$ 5
Estimated useful life of trade name										3 years
Retail Stores
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges									12	$ 25	$ 26
Retail Stores \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges									$ 1	$ 5
Percentage used for analysis									12.00%	13.00%	13.00%
Increased payroll costs percentage									2.00%
Increase in impairment charges due to increase in payroll costs									$ 2
Retail Stores \| Significant Unobservable Inputs (Level 3) \| Scenario 1
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) \| Scenario 1 \| Additional impairment charges \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges									$ 1
Retail Stores \| Significant Unobservable Inputs (Level 3) \| Scenario 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decrease in sales for scenario									1.00%
Retail Stores \| Significant Unobservable Inputs (Level 3) \| Scenario 2 \| Additional impairment charges
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges									$ 2
Abandonment of Software Implementation Project
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges										$ 28
International Division
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill												$ 45
Percentage by which fair value exceeds carrying value												30.00%
Goodwill impairment charge											$ 44
Foreign Exchange Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contracts expiration date									2016-12
Fuel Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contracts expiration date									2017-01
Derivative Fuel and Foreign Exchange Contracts Payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Accrued expenses and other liabilities	$ 2								$ 2

Schedule of Fair Value of Senior Notes (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Timber notes receivable	$ 909	$ 930
Company-owned life insurance	88	82
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	280
Recourse Debt \| 7.35% debentures, due 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	18	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	186	185
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	13	13
Non-Recourse Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	825	845
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Timber notes receivable	905	926
Company-owned life insurance	88	82
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	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	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	$ 819	$ 839

Schedule of Fair Value of Senior Notes (Parenthetical) (Detail)	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Mar. 14, 2012
9.75% senior secured notes, due 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate			9.75%
Recourse Debt \| 7.35% debentures, due 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate	7.35%
Recourse Debt \| American & Foreign Power Company, Inc. 5% debentures, due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, interest rate	5.00%	5.00%
Carrying Value \| Recourse Debt \| 9.75% senior secured notes, due 2019
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
Carrying Value \| Recourse Debt \| 7.35% debentures, due 2016
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
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, due date	2029	2029
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, interest rate	5.00%	5.00%
Long-term debt, due date	2030	2030
Fair Value \| Recourse Debt \| 9.75% senior secured notes, due 2019
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
Fair Value \| Recourse Debt \| 7.35% debentures, due 2016
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
Fair 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, due date	2029	2029
Fair 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, interest rate	5.00%	5.00%
Long-term debt, due date	2030	2030

Commitments and Contingencies - Additional Information (Detail) $ in Millions			1 Months Ended		12 Months Ended
	Sep. 18, 2015 USD ($)	Feb. 09, 2015 LegalMatter	Nov. 30, 2015 USD ($)	Feb. 28, 2015 LegalMatter	Dec. 26, 2015 USD ($)	Dec. 27, 2014 USD ($)	Dec. 28, 2013 USD ($)
Commitments and Contingencies Disclosure [Line Items]
Purchases under the agreement					$ 612.0	$ 647.0	$ 87.0
Settlement amount agreed	$ 0.5		$ 3.5
Minimum
Commitments and Contingencies Disclosure [Line Items]
Losses for environmental liabilities					10.0
Maximum
Commitments and Contingencies Disclosure [Line Items]
Losses for environmental liabilities					$ 25.0
Delaware Court of Chancery
Commitments and Contingencies Disclosure [Line Items]
Number of lawsuits filed \| LegalMatter		9
Number of class action filed \| LegalMatter		1
Palm Beach County Circuit Court
Commitments and Contingencies Disclosure [Line Items]
Number of lawsuits filed \| LegalMatter				2

Segment Information - Additional Information (Detail)	12 Months Ended
Segment Information - Additional Information (Detail)	Dec. 26, 2015 Customer Segment Country
Segment Reporting Information [Line Items]
Number of operating segments \| Segment	3
Number of countries accounting for 10% or more of the total sales \| Country	0
Number of customers accounting for 10% or more of the total sales \| Customer	0

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

3 Months Ended

12 Months Ended

Dec. 26, 2015

Sep. 26, 2015

^[1]

Jun. 27, 2015

^[1]

Mar. 28, 2015

^[1]

Dec. 27, 2014

Sep. 27, 2014

^[1]

Jun. 28, 2014

^[1]

Mar. 29, 2014

^[1]

Dec. 26, 2015

Dec. 27, 2014

Dec. 28, 2013

Segment Reporting Information [Line Items]

Sales

$ 3,477

^[1]

$ 3,690

$ 3,440

$ 3,877

$ 3,832

^[1]

$ 4,069

$ 3,841

$ 4,354

$ 14,485

$ 16,096

$ 11,242

Division operating income

559

411

157

Capital expenditures

163

123

137

Depreciation and amortization

283

313

209

Charges for losses on receivables and inventories

Net earnings from equity method investments

Assets

6,442

6,757

6,442

6,757

7,365

Operating Segments | North American Retail Division

Segment Reporting Information [Line Items]

Sales

6,004

6,528

4,614

Division operating income

310

126

Capital expenditures

Depreciation and amortization

130

140

105

Charges for losses on receivables and inventories

Assets

1,625

1,736

1,625

1,736

1,804

Operating Segments | North American Business Solutions Division

Segment Reporting Information [Line Items]

Sales

5,708

6,013

3,580

Division operating income

226

232

113

Capital expenditures

Depreciation and amortization

Charges for losses on receivables and inventories

Assets

1,607

1,687

1,607

1,687

1,554

Operating Segments | International Division

Segment Reporting Information [Line Items]

Sales

2,773

3,400

3,008

Division operating income

Capital expenditures

Depreciation and amortization

Charges for losses on receivables and inventories

Net earnings from equity method investments

Assets

963

1,160

963

1,160

1,152

Corporate Eliminations and Other

Segment Reporting Information [Line Items]

Sales

^[2]

155

Capital expenditures

^[2]

Depreciation and amortization

^[2]

Charges for losses on receivables and inventories

^[2]

Assets

^[2]

$ 2,247

$ 2,174

$ 2,247

$ 2,174

$ 2,855

[1]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year.
[2]	Amounts included in "Corporate, Eliminations, and Other" consist of (i) assets (including all cash and cash equivalents) and depreciation related to corporate activities, (ii) accounts and balances associated with Grupo OfficeMax prior to disposition, and (iii) $377 million of goodwill in December 28, 2013, which was allocated to reporting units in 2014.

Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Segment Reporting Information [Line Items]
Goodwill	$ 378	$ 391	$ 398
Corporate Eliminations and Other
Segment Reporting Information [Line Items]
Goodwill			$ 377

Reconciliation of Measure of Division Operating Income to Consolidated Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Segment Reporting Information [Line Items]
Division operating income									$ 115	$ (275)	$ (205)
Other operating income (loss)										8	(2)
Asset impairments	$ (3)	$ (1)	$ (4)	$ (5)	$ (11)	$ (6)	$ (22)	$ (50)	(13)	(88)	(70)
Merger, restructuring, and other operating expenses, net	$ (58)	$ (111)	$ (120)	$ (43)	$ (128)	(72)	(103)	$ (101)	(332)	(403)	(201)
Legal accrual						$ (1)	$ (80)			(81)
Unallocated expenses									(99)	(122)	(89)
Interest income									24	24	5
Interest expense									(93)	(89)	(69)
Gain on disposition of joint venture											382
Other income, net									1		14
Income (loss) before income taxes									47	(340)	127
Operating Segments
Segment Reporting Information [Line Items]
Division operating income									$ 559	$ 411	$ 157

Geographic Financial Information Relating To Business (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 26, 2015

Sep. 26, 2015

^[1]

Jun. 27, 2015

^[1]

Mar. 28, 2015

^[1]

Dec. 27, 2014

Sep. 27, 2014

^[1]

Jun. 28, 2014

^[1]

Mar. 29, 2014

^[1]

Dec. 26, 2015

Dec. 27, 2014

Dec. 28, 2013

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Sales

$ 3,477

^[1]

$ 3,690

$ 3,440

$ 3,877

$ 3,832

^[1]

$ 4,069

$ 3,841

$ 4,354

$ 14,485

$ 16,096

$ 11,242

Property and Equipment

785

963

785

963

1,309

United States

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Sales

11,387

12,132

8,119

Property and Equipment

617

757

617

757

977

Non-US

Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]

Sales

3,098

3,964

3,123

Property and Equipment

$ 168

$ 206

$ 168

$ 206

$ 332

[1]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year.

Sales By Product Category Information (Detail) - Sales - Product Concentration Risk	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Product Information [Line Items]
Sales	100.00%	100.00%	100.00%
Supplies
Product Information [Line Items]
Sales	47.60%	47.20%	46.60%
Technology
Product Information [Line Items]
Sales	37.30%	38.00%	40.60%
Furniture And Other
Product Information [Line Items]
Sales	15.10%	14.80%	12.80%

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

3 Months Ended

12 Months Ended

Dec. 26, 2015

^[1]

Sep. 26, 2015

^[1]

Jun. 27, 2015

^[1]

Mar. 28, 2015

^[1]

Dec. 27, 2014

^[1]

Sep. 27, 2014

^[1]

Jun. 28, 2014

^[1]

Mar. 29, 2014

^[1]

Dec. 26, 2015

Dec. 27, 2014

Dec. 28, 2013

Quarterly Financial Data [Line Items]

Net sales

$ 3,477

$ 3,690

$ 3,440

$ 3,877

$ 3,832

$ 4,069

$ 3,841

$ 4,354

$ 14,485

$ 16,096

$ 11,242

Gross profit

815

936

814

937

891

987

883

1,015

3,502

3,776

2,626

Net income (loss)

$ 15

^[2]

$ 6

^[2]

$ (58)

^[2]

$ 45

^[2]

(84)

^[3]

(189)

^[3]

(108)

^[3]

(352)

(20)

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

(84)

^[3]

(190)

^[3]

(109)

^[3]

(354)

(20)

Net income (loss) available to common stockholders

$ (84)

^[3]

$ 29

^[3]

$ (190)

^[3]

$ (109)

^[3]

$ 8

$ (354)

$ (93)

Net earnings (loss) per share:

Basic

$ 0.03

$ 0.01

$ (0.11)

$ 0.08

$ (0.15)

$ 0.05

$ (0.36)

$ (0.21)

$ 0.01

$ (0.66)

$ (0.29)

Diluted

$ 0.03

$ 0.01

$ (0.11)

$ 0.08

$ (0.15)

$ 0.05

$ (0.36)

$ (0.21)

$ 0.01

$ (0.66)

$ (0.29)

[1]	Due to rounding, the sum of the quarterly amounts may not equal the reported amounts for the year.
[2]	In the first, second, third and fourth quarters of 2015, captions include pre-tax Merger, restructuring, and other operating expenses, net amounting to $43 million, $120 million, $111 million and $58 million, respectively and asset impairments of $5 million, $4 million, $1 million and $3 million, respectively.
[3]	In the first, second, third and fourth quarters of 2014, captions include pre-tax Merger, restructuring, and other operating expenses, net amounting to $101 million, $103 million, $72 million and $128 million, respectively and asset impairments of $50 million, $22 million, $6 million and $11 million, respectively. The second and third quarters of 2014 include $80 million and $1 million associated to Legal accrual, respectively.

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

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

+ References + Details

Schedule of Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Quarterly Financial Data [Line Items]
Pre-tax Merger, restructuring, and other operating expenses	$ 58	$ 111	$ 120	$ 43	$ 128	$ 72	$ 103	$ 101	$ 332	$ 403	$ 201
Assets impairments	$ 3	$ 1	$ 4	$ 5	$ 11	6	22	$ 50	$ 13	88	$ 70
Legal accrual						$ 1	$ 80			$ 81

Schedule II - Valuation And Qualifying Accounts (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Dec. 28, 2013
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 18	$ 26	$ 23
Additions-Charged to Expense	9	8	14
Deductions-Write-offs, Payments and Other Adjustments	11	16	11
Balance at End of Period	$ 16	$ 18	$ 26