EX-99.1 2 d879032dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Supplemental Financial Information of The ODP Corporation

 

     First
 Quarter 
2024		     Second
 Quarter 
2024		    

First

Half
 2024 

  

Cash flows from operating activities:

       

Net income (loss)

    $ 15     $   (73 )    $  (58 ) 

Loss from discontinued operations, net of tax

      (16 )      (69 )      (85 ) 
  

 

 

    

 

 

    

 

 

  

Net income (loss) from continuing operations

      31       (4 )      27  

Adjustments to reconcile net income to net cash provided by operating activities:

       

Depreciation and amortization

      25       24       49  

Amortization of debt discount and issuance costs

      1       —        1  

Charges for losses on receivables and inventories

      9       3       12  

Asset impairments

      6       8       14  

Loss on disposition of assets, net

      —        —        (1 ) 

Compensation expense for share-based payments

      9       10       20  

Deferred income taxes and deferred tax asset valuation allowances

      (8 )      (10 )      (18 ) 

Changes in working capital and other operating activities

      (29 )      (32 )      (61 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) operating activities of continuing operations

      44       (1 )      43  

Net cash used in operating activities of discontinued operations

      (6 )      (10 )      (16 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) operating activities

      38       (11 )      27  
  

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

       

Capital expenditures

      (31 )      (19 )      (50 ) 

Businesses acquired, net of cash acquired

      —        —        —   

Proceeds from disposition of assets

      1       —        1  

Other investing activities

      —        1       1  
  

 

 

    

 

 

    

 

 

  

Net cash used in investing activities of continuing operations

      (30 )      (18 )      (48 ) 

Net cash used in investing activities of discontinued operations

      (4 )      (2 )      (5 ) 
  

 

 

    

 

 

    

 

 

  

Net cash used in investing activities

      (34 )      (20 )      (53 ) 
  

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

       

Net payments on long and short-term borrowings

      (3 )      (3 )      (5 ) 

Cash used in extinguishment and modification of debt

      —       —       —  

Debt retirement

      (128 )      (112 )      (240 ) 

Debt issuance

      75       171       246  

Share purchases for taxes, net of proceeds from employee share-based transactions

      (6 )      (9 )      (15 ) 

Repurchase of common stock for treasury and advance payment for accelerated share repurchase

      (50 )      (103 )      (153 ) 

Other financing activities

      (1 )      (5 )      (7 ) 
  

 

 

    

 

 

    

 

 

  

Net cash used in financing activities of continuing operations

      (113 )      (61 )      (174 ) 

Net cash provided by (used in) financing activities of discontinued operations

      —       —       —  
  

 

 

    

 

 

    

 

 

  

Net cash used in financing activities

      (113 )      (61 )      (174 ) 
  

 

 

    

 

 

    

 

 

  

Effect of exchange rate changes on cash, cash equivalents and restricted cash

      (1 )      —       (2 ) 
  

 

 

    

 

 

    

 

 

  

Net decrease in cash, cash equivalents and restricted cash

      (110 )      (92 )      (202 ) 

Cash, cash equivalents and restricted cash at beginning of period

      395       285       395  
  

 

 

    

 

 

    

 

 

  

Cash, cash equivalents and restricted cash at end of period

    $ 285     $ 193     $ 193  
  

 

 

    

 

 

    

 

 

  

Amounts may not foot due to rounding. The sum of the quarterly amounts may not equal the reported amounts for the year due to rounding.