OfficeMax 2005 Annual Report Download - page 99

The following table provides summarized information about stock options outstanding at
December 31, 2005:
Options Outstanding Options Exercisable
Weighted Weighted Weighted
Average Average Average
Options Contractual Exercise Options Exercise
Range of Exercise Prices Outstanding Life (Years) Price Exercisable Price
$2.50 .......................... 62,233 — $ 2.50 62,233 $ 2.50
$18.00 — $28.00 .................. 1,743,921 5.0 27.32 1,743,921 27.32
$28.01 — $39.00 .................. 3,941,491 3.7 35.08 3,631,291 35.31
$39.01 — $44.00 .................. 11,900 1.7 41.00 11,900 41.00
Other
In May 2005, the Company repurchased 23.5 million shares of its common stock and the
associated common stock purchase rights through a modified Dutch auction tender offer at a
purchase price of $775.5 million, or $33.00 per share, plus transaction costs.
In September 1995, the Company’s Board of Directors authorized the purchase of up to
4.3 million shares of the Company’s common stock. As part of this authorization, the Company
repurchases odd-lot shares (fewer than 100 shares) from shareholders wishing to exit their holdings
in the Company’s common stock. Shares repurchased under this program are retired. Since 1995,
the Company has repurchased 49,670 shares of common stock under this authorization, including
2,190 shares in 2005.
19. Segment Information
The Company manages its business using three reportable segments: OfficeMax, Contract;
OfficeMax, Retail; and Corporate and Other. Results for 2004 and prior periods include the
operations of the Boise Building Solutions and Boise Paper Solutions segments. Substantially all of
the assets and operations of these segments were included in the Sale. Each of the Company’s
segments represents a business with differing products, services and/or distribution channels. Each
of these businesses requires distinct operating and marketing strategies. Management reviews the
performance of the Company based on these segments.
OfficeMax, Contract markets and sells a broad line of items for the office, including office
supplies and paper, technology products and solutions and office furniture. OfficeMax, Contract
sells directly to large corporate, government and small and medium-sized offices in the United
States, Canada, Australia, New Zealand and Mexico through field salespeople, outbound telesales,
catalogs, the Internet and office products stores in Canada, Hawaii, Australia and New Zealand.
Substantially all products sold by OfficeMax, Contract are purchased from third-party manufacturers
or industry wholesalers, except office papers. OfficeMax, Contract purchases 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, for additional information
related to the paper supply contract.)
OfficeMax, Retail is a retail distributor of office supplies and paper, print and document
services, technology products and solutions and office furniture. OfficeMax, Retail has operations in
the United States, Puerto Rico and the U.S. Virgin Islands. OfficeMax office supply stores feature
OfficeMax Print and Document Services, an in-store module devoted to print-for-pay and related
services. The retail segment also operates office supply stores in Mexico through a 51%-owned
joint venture. Substantially all products sold by OfficeMax, Retail are purchased from third-party
manufacturers or industry wholesalers, except office papers. OfficeMax, Retail purchases office
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