OfficeMax 2005 Annual Report Download - page 6

involvement as defined in Financial Accounting Standards Board (‘‘FASB’’) Statement 144,
‘‘Accounting for the Impairment or Disposal of Long-Lived Assets’’. Accordingly, we do not show
the historical results of the sold paper, forest products and timberland assets as discontinued
operations. (For more information about the Sale, see Note 2, Sale of Paper, Forest Products and
Timberland Assets, of the Notes to Consolidated Financial Statements in ‘‘Item 8. Financial
Statements and Supplementary Data’’ of this Form 10-K.)
Prior to the Sale, we reported our business results using five reportable segments: OfficeMax,
Contract; OfficeMax, Retail; Boise Building Solutions; Boise Paper Solutions; and Corporate and
Other. Effective with the first quarter of 2005, we reported our business results using three
reportable segments: OfficeMax, Contract; OfficeMax, Retail; and Corporate and Other. We present
information pertaining to each of our segments and the geographic areas in which they operate in
Note 19, Segment Information, of the Notes to Consolidated Financial Statements in ‘‘Item 8.
Financial Statements and Supplementary Data’’ of this Form 10-K.
Effective March 11, 2005, we amended our bylaws to make the fiscal year-end for OfficeMax
Incorporated the last Saturday of December. Prior to this change, all of our businesses except for
U.S. retail had a December 31 fiscal year-end. Our U.S. retail operations maintained a fiscal year
that ended on the last Saturday in December, which in 2004 was December 25. Accordingly, fiscal
year 2005 included 53 weeks for our retail segment. Fiscal year 2005 ended on December 31, 2005
for all our reportable segments and businesses.
OfficeMax, Contract
We distribute a broad line of items for the office, including office supplies and paper,
technology products and solutions and office furniture through our OfficeMax, Contract segment.
OfficeMax, Contract sells directly to large corporate and government offices, as well as to small and
medium-sized offices in the United States, Canada, Australia, New Zealand and Mexico. This
segment markets and sells through field salespeople, outbound telesales, catalogs, the Internet and
in some markets, including Canada, Hawaii, Australia and New Zealand, through office products
stores. Substantially all products sold by this segment are purchased from outside manufacturers or
from industry wholesalers, except office papers. We purchase office papers primarily from the paper
operations of Boise Cascade, L.L.C., under a 12-year paper supply contract entered into as part of
the Sale. (See Note 20, Commitments and Guarantees, of the Notes to Consolidated Financial
Statements in ‘‘Item 8. Financial Statements and Supplementary Data’’ of this Form 10-K for
additional information related to the paper supply contract.)
Customers of OfficeMax, Contract with more than one location are often served under the
terms of one national contract that provides consistent products, prices and service to multiple
locations. If the customer desires, we also provide summary billings, usage reporting and other
special services. As of February 25, 2006, OfficeMax, Contract operated 56 distribution centers and
6 customer service and outbound telesales centers. OfficeMax, Contract also operated 90 stores in
Canada, Hawaii, Australia and New Zealand. Since the acquisition of OfficeMax, Inc. in
December 2003, the OfficeMax, Contract segment has included the results of the former OfficeMax
Direct businesses, which included field salespeople, catalogs and a public Internet site.
OfficeMax, Contract sales for 2005, 2004 and 2003 were $4.6 billion, $4.4 billion and
$3.7 billion, respectively.
OfficeMax, Retail
OfficeMax, Retail is a retail distributor of office supplies and paper, print and document
services, technology products and solutions and office furniture. Our retail segment has operations
2