OfficeMax 2005 Annual Report Download - page 43

parties and other factors. Because these estimates and assumptions are necessarily subjective, the
amounts we will actually pay in future periods may vary from those reflected in the table.
Payments Due by Period
2006 2007-2008 2009-2010 Thereafter Total
(millions)
Debt
Long-term debt, including current
portion(a)(c) ..................... $ 68.6 $ 60.0 $ 66.6 $ 281.4 $ 476.6
Timber notes securitized ................ — — — 1,470.0 1,470.0
Short-term borrowings ................. 18.7 — — — 18.7
Operating leases(b)(e) ................. 361.0 599.4 484.9 762.3 2,207.6
Purchase obligations .................. 22.9 10.0 2.3 1.0 36.2
Other long-term liabilities(d) ............. — — — — —
$471.2 $669.4 $553.8 $2,514.7 $4,209.1
(a) Included in long-term debt are amounts owed on our note agreements, revenue bonds and credit agreements. These
borrowings are further described in Note 15, Debt, of the Notes to Consolidated Financial Statements in ‘‘Item 8.
Financial Statements and Supplementary Data’’ in this Form 10-K. The table assumes our long-term debt is held to
maturity.
(b) We enter into operating leases in the normal course of business. We lease our retail store space as well as other
property and equipment under operating leases. Some of our retail store leases require percentage rentals on sales
above specified minimums and contain escalation clauses. These minimum lease payments do not include contingent
rental expense. Some lease agreements provide us with the option to renew the lease or purchase the leased property.
Our future operating lease obligations would change if we exercised these renewal options and if we entered into
additional operating lease agreements. For more information, see Note 10, Leases, of the Notes to Consolidated
Financial Statements in ‘‘Item 8. Financial Statements and Supplementary Data’’ in this Form 10-K.
(c) The current portion of these liabilities is also included.
(d) Our Consolidated Balance Sheet as of December 31, 2005 includes $538.8 million of liabilities associated with our
retirement and benefit plans and $324.9 million of other long-term liabilities. These amounts have been excluded from
the above table as the timing and/or the amount of any cash payment is uncertain.
(e) Lease obligations for facility closures are included in operating leases.
In accordance with an amended and restated joint-venture agreement, the minority owner of
our subsidiary in Mexico, OfficeMax de Mexico, can elect to put its remaining 49% interest in the
subsidiary to OfficeMax if earnings targets are achieved. At December 31, 2004 and throughout
2005, OfficeMax de Mexico had met these earnings targets. These earnings targets are calculated
quarterly on a rolling four-quarter basis. Accordingly, the targets can be achieved in one quarter but
not in the next. If the earnings targets are achieved and the minority owner elects to put its
ownership interest, the purchase price would be equal to fair value, calculated based on both the
subsidiary’s earnings for the last four quarters before interest, taxes and depreciation and
amortization, and the current market multiples of similar companies. The fair value purchase price in
2005 is estimated at $50 to $55 million. This contingent obligation is not included in the table
above.
In addition to the contractual obligations quantified in the table above, we have other
obligations for goods and services entered into in the normal course of business. These contracts,
however, are either not enforceable or legally binding or are subject to change based on our
business decisions.
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