OfficeMax 2005 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2005 OfficeMax annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Obligations and Funded Status
The changes in pension and other postretirement benefit obligations and plan assets during
2005 and 2004, as well as the funded status of the Company’s plans at December 31, 2005 and
2004, were as follows:
Pension Benefits Other Benefits
2005 2004 2005 2004
(thousands)
Change in benefit obligation:
Benefit obligation at beginning of year ........ $1,394,125 $ 1,732,899 $ 78,871 $ 110,018
Service cost ........................... 959 25,370 643 1,743
Interest cost ........................... 75,266 100,675 3,668 6,176
Amendments .......................... — 14,406 (44,240) (11,237)
Actuarial (gain) loss ..................... 8,138 141,883 (963) (1,443)
Changes due to exchange rates ............ — — 490 998
Special termination benefits ............... — 4,609 — —
Closures and curtailments ................. — 1,960 — —
Spin-off of paper and forest products business . . — (531,775) — (18,789)
Benefits paid .......................... (95,728) (95,902) (6,946) (8,595)
Benefit obligation at end of year ............ $1,382,760 $1,394,125 $ 31,523 $ 78,871
Change in plan assets:
Fair value of plan assets at beginning of year . . . $ 1,161,894 $ 1,272,519 $ — $ —
Actual return on plan assets ............... 77,654 121,582 — —
Employer contributions ................... 2,776 279,822 — —
Spin-off of forest products business .......... — (418,578) — —
Benefits paid .......................... (95,728) (93,451) — —
Fair value of plan assets at end of year ....... $1,146,596 $1,161,894 $ — $ —
Funded status ......................... $ (236,165) $ (232,231) $ (31,523) $ (78,871)
Unrecognized actuarial loss ............... 383,431 398,440 11,086 12,623
Unrecognized transition obligation ........... — — 5,317 5,522
Unrecognized prior service cost (benefit) ...... — — (45,797) (2,762)
Net amount recognized .................. $ 147,266 $ 166,209 $(60,917) $ (63,488)
The following table shows the amounts recognized in the Consolidated Balance Sheets related
to the Company’s defined benefit pension and other postretirement benefit plans:
Pension Benefits Other Benefits
2005 2004 2005 2004
(thousands)
Prepaid benefit cost ....................... $ 182,088 $ 200,501 $ — $ —
Accrued benefit liability ..................... (407,178) (420,748) (60,917) (63,488)
Accumulated other comprehensive loss ......... 227,508 236,123 — —
Deferred income tax assets .................. 144,848 150,333 — —
Net amount recognized ..................... $ 147,266 $166,209 $(60,917) $(63,488)
86