The Break Into Outer Loops command will take the selected object and make each loop a new object, keeping inner loops with the enclosing outer loop. This is critical for LED layouts.

For example, if you import a letter set and the artwork was combined into a single object, you can use Break Into Outer Loops to break it down into individual letters.

The graphic on the left is the original import as one combined object. If you use the command Break Into Outer Loops, you will get three individual letters as shown in the middle graphic, which is what you want.

If you use Break Into Loops, you will get the graphic on the right, where the "A" is actually two separate loops, and the "B" is three separate loops. Note too that the Loop Directions are now wrong for these letters, since the inside loops are not Combined with the outside loops. (Inside Loops should be red, which are counter-clockwise.)

If you import a letter set where all the loops are separate and not combined into letters, then you can use the Combine command on each letter where there are multiple loops and/or internal loops. Combine also Reorders Loops.