OfficeMax 2005 Annual Report Download - page 9
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We believe we compete favorably with our competitors by differentiating ourselves based on
the breadth and depth of our merchandise offering, along with our specialized service offerings,
everyday low prices, quality customer service and the efficiencies and convenience for our
customers of our combined contract and retail distribution channels.
Inflationary and Seasonal Influences
Except for the impact of recent increases in energy costs, we believe that neither inflation nor
deflation has had a material effect on our financial condition or results of operations; however, there
can be no assurance that we will not be affected by inflation or deflation in the future. The
company’s business is seasonal, with OfficeMax, Retail showing a more pronounced seasonal trend
than OfficeMax, Contract. Sales in the second quarter and summer months are historically the
slowest of the year. Sales are stronger during the first, third and fourth quarters that include the
important new-year office supply restocking month of January, the back-to-school period and the
holiday selling season, respectively.
Environmental Matters
Our discussion of environmental matters is presented under the caption ‘‘Environmental’’ in
‘‘Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations’’
of this Form 10-K. In addition, certain environmental matters are discussed under ‘‘Item 3. Legal
Proceedings’’ of this Form 10-K.
Capital Investment
Information concerning our capital expenditures is presented under the caption ‘‘Investment
Activities’’ and in the table entitled ‘‘2005 Capital Investment by Segment’’ in ‘‘Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations’’ of this
Form 10-K.
Acquisitions and Divestitures
We engage in acquisition and divestiture discussions with other companies and make
acquisitions and divestitures from time to time. It is our policy to review our operations periodically
and to dispose of assets that do not meet our criteria for return on investment, or cease to warrant
retention for other reasons. See Note 2, Sale of Paper, Forest Products and Timberland Assets;
Note 4, OfficeMax, Inc., Acquisition; and Note 7, Other (Income) Expense, Net, of the Notes to
Consolidated Financial Statements in ‘‘Item 8. Financial Statements and Supplementary Data’’ of
this Form 10-K for a description of significant acquisitions, divestitures and asset sales completed
during 2005, 2004 and 2003.
Geographic Areas
Our discussion of financial information about geographic areas is presented 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.
Identification of Executive Officers
Information with respect to our executive officers is set forth in ‘‘Item 10. Directors and
Executive Officers of the Registrant’’ of this Form 10-K.
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