Table of Contents Screen Shot 2022-04-22 at 7.08.51 PM OFFICE DEPOT, INC. CONSOLIDATED BALANCE SHEETS (millions, except shares and par value) Q Search ASSETS Cament assets Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other cument assets Cament assets of discontinued operations Totalcumentat Property and equipment, ne Goodwill Other intangible assets, net Timber notes receivable Deferred income taxes Other assets Non-cument assets of discontinued operations Total assets LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Trade accounts payable Accrued expenses and other cument liabilities Income taxes payable Short-tem borrowings and cument maturities of long-term debt Cament liabilities of discontinued operations Totalcument liabilities Defered income taxes and other long-tem liabilities Pension and postretirement obligations, Long-term debt, net of current maturities Non-recoune debt Non-cument liabilities of discontinued operations Total liabilities Commitments and contingencies Stockholders' equity: Common stock-authorized 800,000,000 shares of 5.01 par value; issued shares-557,392,568 at December 31, 2016 and 554,835,306 at December 26, 2015 Additional paid-in capital Accumulated other comprehensive income (loss) Accumulated deficit Treasury stock, at cost-42,802,998 shares at December 31, 2016 and 5,915,268 shares at December 26, 2015 Total stockholden' equity Total liabilities and stockholders' equity The accompanying notes to consolidated financial statements are an integral part of these statements 60 Q Table of Contents Screen Shot 2022-04-22 at 7.08.58 PM OFFICE DEPOT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS millions, except per shermons 860 746 1,406 956 4,060 363 53 905 $6,442 987 Sales Cost of goods sold and occupancy costs Gross profit Selling, general and administrative expenses Asset impairments Merger, restructuring, and other operating (income) expenses, net Legal accrual Operating income () Other income () Interest income Interest expense Loss on extinguishment of debt Other income, ne Income (loss) from continuing operations before income taxes Income tax expense (benefit) Net income (loss) from continuing opentions Discontinued operations, net of tax Net income (loss) Less: Results attributable to the noncontrolling interests Net income (lo) attributable to Office Depot, Inc. |: 4,339 2607 30 (453) (982) Table of Contents : | 2,743 Basic earings(loss) per common share Coeriewing operations Discontinued operations Net basic eamings (loss) per common share Diluted eamings (loss) per common share Continuing operations 5.540 $ 6,442 Q Search Table of Contents Screen Shot 2022-04-22 at 7.09.08 PM Q Search $11,727 3364 2363 2,425 13 242 OFFICE DEPOT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Cash flows from operating activities of continuing operations: Net income (lom) Loss from discontinued operations, net of tax 5529 (150) s 8 $(352) (34) Net income from continuing operations Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 181 253 22 22 Charges for losses on inventories and receivables Asset impairments 15 (91) (87) Compensation expense for share-based payments 41 Loss on extinguishment of debt 1 Deferred income taxes and defemed tax asset valuation allowances (231) 1 (230) 679 115 23 (291) Loss (gain) on disposition of assets 9 (36) Other 3 24 92 (293) Changes in assets and liabilities (150) (84) Decrease (increase) in receivables 55 529 $ (352) Decrease (increase) in inventories (99) - Net decrease (increase) in prepaid expenses and other assets (51) 20 529 $ $ Net decrease in trade accounts payable, accrued expenses and other current and other long-term liabilities Total adjustments (339) (279) (187) 46 50.17 $(0.55) 9.15) 011) 5 (066) Capital expenditures 5 126 (0.28) 5 0.98 $1.24 (0.27) $0.96 $ 0.01 $ 0.16 9.15 $ 0.01 $ $(0.55) 011) $ 1066) Proceeds from sale of joint ventures, net Proceeds from sale of available for sale securities - Acquisition, net of cash acquired Proceeds from disposition of assets and other Net cash used in investing activities of continuing operations Cash flows from Snancing activities of continuing operations Net proceeds from employee share-based transactions Debt retirement Debt related fees Cash used in extinguishment of debt Cash dividends on common stock Net cash provided by operating activities of continuing operations Cash flows from investing activities of continuing operations 492 138 (111) (144) | [ | Discontinued operations Net diluted eamings (loss) per common share Dividends per common share Screen Shot 2022-04-22 at 7.09.03 PM Q Search 95 (34) (58) 7 (250) (6) (1) (26) Proceeds from issuance of bomowings Net payments on long and short-tem bomowings (49) (2) (26) OFFICE DEPOT, INC. Repurchase of common stock for treasury (132) CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY On millions, except share an Net cash (used in) provided by financing activities of continuing operations (475) 20 17 Cash flows from discontinued operations: Operating activities of discontinued operations Investing activities of discontinued operations (122) (12) (70) (16) (22) Other comprehensive loss Forfeiture of restricted stock Exercise and release of incentive stock (including income tax benefits and withholding) Amortization of long-tem incentive stock grants Balance at December 27, 2014 Net income Other comprehensive loss Forfeiture of restricted stock Exercise and release of incentive stock (including income tax benefits and withholding) Amortization of long-tem incentive stock grants Balance at December 26, 2015 Net income Other comprehensive loss Forfeiture of restricted stock Exercise and release of incentive stock (including income tax benefits and withholding) Amortization of long-term incentive stock grants Dividends paid on common stock Repurchase of common stock Balance at December 31, 2016 Comp A Balance at December 28, 2013 536,629,760 S $2,480 $ 272 5 (636) 5 (58) Decrease in subsidiary shares from noncontrolling Net increase (decrease) in cash and cash equivalents (1) (1) Net loss Cash and cash equivalents at beginning of period (354) (354) (165) (165) Financing activities of discontinued operations Net cash used in discontinued opencions Effect of exchange rate changes on cash and cash equivalents (187) (27) 38 (K) (29) (27) (262) 116 1,069 1,071 955 Cash and cash equivalents at end of period Cash and cash equivalents of discontinued operations 807 1,069 1071 (209) (247) (142,823) 15,210,600 Cash and cash equivalents at the end of period-continued operations 5763 5860 39 Supplemental information on operating, levesting, and financing activities 38 551,097,537 S $ 1075 (990) 5 (58) S $1621 Cash interest paid, net of amounts capitalized and Timber notes/Non-excoune debt Cash taxes paid (refunded) $ 67 $ 68 5 48 $ (20) 8 Non-cash asset additions under capital leases 59 $ 19 (77) (77) (80,170) 3,317,939 The accompanying notes to consolidated financial statements are an integral part of these statements 7 61 554,835,306 $ $ 30 s (982) 5 (58) S $1,603 529 529 (159) (6,945) 3,064,207 (2) (26) 39 (132) (132) 557392,568 S (129) 5 (453) S(190) S $1.352