OfficeMax 2005 Annual Report Download - page 19

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(a) 2005 included $91.6 million of pretax charges related primarily to the following: the write-down of impaired assets,
primarily related to the retail store closures; the restructuring of the international operations; the relocation and
consolidation of our corporate headquarters; legal settlement with the Department of Justice; and costs for one-time
severance payments and professional fees. 2005 included 53 weeks for our OfficeMax, Retail segment.
2005 included $14.4 million of costs related to our early retirement of debt.
2005 included a $28.2 million pretax charge for the write-down of impaired assets at our Elma, Washington
manufacturing facility, which is accounted for as a discontinued operation.
(b) 2004 included a $67.8 million pretax charge for the write-down of impaired assets at our Elma, Washington,
manufacturing facility, which is accounted for as a discontinued operation.
2004 included the results of our Boise Building Solutions and Boise Paper Solutions segments through October 28,
2004. On October 29, 2004, we completed the sale of our paper, forest products and timberland assets to affiliates of
Boise Cascade, L.L.C., a new company formed by Madison Dearborn Partners LLC, and recorded a $280.6 million
pretax gain. Part of the consideration we received in connection with the Sale consisted of timber installment notes
receivable. We securitized the timber installment notes receivable for proceeds of $1.5 billion in December 2004. At the
same time we entered into interest rate swap contracts to hedge the interest rate risk associated with the issuance of
debt securities by special-purpose entities formed by the Company and in December 2004 recorded $19.0 million of
expense in ‘‘Timber notes securitization.’’
2004 included $137.1 million of costs related to our early retirement of debt.
2004 included a pretax gain of $59.9 million on the sale of approximately 79,000 acres of timberland located in western
Louisiana.
2004 included a pretax gain of $46.5 million on the sale of our 47% interest in Voyageur Panel.
2004 included $15.9 million of expense in our Corporate and Other segment for one-time benefit costs granted to
employees.
(c) 2003 included a pretax charge of $10.1 million for employee-related costs incurred in connection with the 2003
cost-reduction program.
2003 included a net $2.9 million one-time tax benefit related to a favorable tax ruling, net of changes in other tax items.
2003 included a $14.7 million pretax charge for the write-down of impaired assets at our plywood and lumber operations
in Yakima, Washington.
2003 included income from the OfficeMax, Inc., operations for the period from December 10, 2003, through
December 27, 2003, and costs, including incremental interest expense, directly related to the acquisition. The net effect
of these items reduced income by $4.1 million before taxes, or $2.5 million after taxes.
(d) 2002 included a pretax charge of $23.6 million related to the sale of all of the stock of our wholly owned subsidiary that
held our investment in IdentityNow. We also recorded $27.6 million of tax benefits associated with this sale and our 2001
write-down of our equity investment (see (e) below).
(e) 2001 included a pretax charge of $54.0 million for the closure of our plywood and lumber operations in Emmett, Idaho,
and our sawmill in Cascade, Idaho, and a $4.9 million charge for the write-off of our assets in Chile.
2001 included a pretax charge of $10.9 million to accrue for a one-time liability related to postretirement benefits for our
Northwest hourly paperworkers.
2001 included a pretax charge of $54.3 million and $4.6 million of tax benefits related to the write-down to fair value of
an equity-method investment.
2001 included $5.0 million of pretax income from the reversal of unneeded reserves for potential claims rising from the
sale in 2000 of our European office products operations.
(f) The computation of diluted net loss per common share was antidilutive in the years 2005, 2003, 2002 and 2001;
therefore, the amounts reported for basic and diluted loss per share are the same.
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