The Varis Division disposal group met the accounting criteria to be classified as held for sale as of April 2024 and was sold on October 18, 2024 to an affiliate of Arising Ventures, a third party. The Company retained a minority interest of 19.9% after the sale. The disposition represented a strategic shift that had a major impact on the Company’s operations and financial statements. Under the terms of the related stock purchase agreement, the Company was to fund up to $4 million of expenses that may be incurred by Varis following the transaction date until December 31, 2025, and has no further obligations to contribute capital to Varis. During the first half of 2025, the Company made $2 million of cash payments related to this obligation, which was in addition to $2 million funded in 2024. As of June 28, 2025, there is no funding obligation remaining. The terms of the sale did not result in a materially different impact than previously estimated on the Company’s financial statements. The Company deconsolidated its Varis Division effective October 18, 2024 by removing the associated assets and liabilities held for sale on its balance sheet. The Company will account for its retained minority interest of 19.9% in Varis as an equity method investment going forward.

Restructuring expenses incurred by the Varis Division, which were previously presented as Corporate expenses, are included in the measurement and presentation of discontinued operations for all periods presented.

The following table represents a reconciliation of the major components of discontinued operations, net of tax, as presented in the Condensed Consolidated Statement of Operations. The Company did not have any financial results related to discontinued operations on its Condensed Consolidated Statement of Operations in the second quarter and first half of 2025.


	Second Quarter			First Half
(In millions)	2024				2024
Major components of discontinued operations before income taxes:
Sales	$	2			$	3
Cost of goods and occupancy costs		—				—
Gross profit		2				3
Selling, general and administrative expenses		11				26
Merger and restructuring expenses, net		—				8
Operating loss		(9	)			(31	)
Other expense:
Loss from major components of discontinued operations before income taxes		(9	)			(31	)
Loss on disposal of discontinued operations		(77	)			(77	)
Loss from discontinued operations before income taxes		(86	)			(108	)
Income tax benefit		(17	)			(23	)
Discontinued operations, net of tax	$	(69	)		$	(85	)

The Company had previously sold its CompuCom Division on December 31, 2021, through a transaction that was structured and accounted for as an equity sale. The Company did not have any financial results related to discontinued operations of the CompuCom Division on its Condensed Consolidated Statements of Operations for the periods presented. As of June 28, 2025, the Company has a promissory note from the purchaser of the CompuCom Division, with a principal balance of $59 million and paid-in-kind interest of $13 million, due in full on June 30, 2027. In addition, the Company has a $9 million receivable related to an earn-out provision included in the securities purchase agreement. The promissory note and the earn-out are non-current receivables as of June 28, 2025.