OfficeMax 2006 Annual Report Download - page 20

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16
(a) 2006 included thefollowing pre-tax charges:
•$89.5 million relatedto the closing of 109 underperforming domestic retail stores.
•$46.4 million relatedto the relocation and consolidation of our corporate headquarters.
•$10.3 million primarily related to the reorganization in our Contract segment.
•$18.0 million primarily for contract termination and other costs related to the closure of our Elma, Washington
manufacturing facility, which isaccounted for as a discontinued operation.
2006 also included $48.0 million of pre-tax income from adjustments to the estimated fair value of the Additional
Consideration Agreement we entered into in connection with the Sale.
(b) 2005 included thefollowing pre-taxcharges:
•$25.0 million relatedto the relocation and consolidation of our corporate headquarters.
•$31.9 million primarily for one-time severance payments, professional fees and asset write-downs.
•$17.9 million relatedto the write-down ofimpaired assets, primarilyrelated to retail store closures.
•$5.4 million related tothe restructuring of our international operations.
•$9.8 million for a legal settlement withthe Department of Justice in our Contract segment.
•$14.4 million relatedto our early retirement of debt.
•$28.2 million for the write-down of impaired assets at our Elma, Washington manufacturing facility, which is accounted
for as a discontinued operation.
2005 included 53 weeks for our OfficeMax, Retail segment.
(c) 2004 included a $67.8 million pre-tax charge forthe write-down of impaired assets at our Elma, Washington,
manufacturingfacility, which is accounted forasa discontinuedoperation.
2004 included the results ofour Boise Building Solutions and Boise Paper Solutions segments through October 28, 2004.
On October 29, 2004, we completed the sale of our paper, forest products and timberland assets to affiliates of Boise
Cascade, L.L.C., a new company formed by Madison Dearborn Partners LLC, and recorded a $280.6 million pre-taxgain.
Part of the consideration we received in connection with the Sale consistedof timber installment notes receivable. We
securitized the timber installment notes receivab le for proceeds of $1.5 billion in December 2004. At the same time we
entered into interest rate swap contracts tohedge the interest rate riskassociatedwith the issuance of debt securitiesby
special-purpose entities formed by the Company, and in December 2004 recorded $19.0 million of related expense in
“Timber notes securitization.”
2004 included $137.1 million of costs related to our early retirement ofdebt.
2004 included a pre-tax gain of $59.9 million on the sale of approximately79,000 acres of timberland located in western
Louisiana.
2004 included a pre-tax gain of $46.5 million on the sale of our 47% interest in Voyageur Panel.
2004 included $15.9 million of expense in our Corporate and Other segment for the costs of certain one-time benefits
granted to employees.
(d) 2003 included a pre-tax charge of $10.1 million for employee-related costs incurred in connection with the 2003 cost-
reduction program.
2003 included a net $2.9 million one-time tax benefit related to a favorable tax ruling, net of changes in other tax items.
2003 included a $14.7 million pre-tax charge forthe write-down of impaired assets at our plywood and lumber operations
in Yakima, Washington.
2003 included income from the OfficeMax, Inc. operations for the period from December 10, 2003 through December 27,
2003, and costs, including incremental interest expense, directly related to the acquisition. The net effect of these items
reduced income by $4.1 million before taxes, or$2.5 million aftertaxes.
(e) 2002 included a pre-tax charge of $23.6 million related to the sale of all of the stock of our whollyowned subsidiary that
held our investment in IdentityNow. We also recorded $27.6 million of tax benefits associated with this sale and the 2001
write-down of our equity investment.
(f) Thecomputation of diluted income (loss) per common share was antidilutive in the years 2005, 2003 and 2002; therefore,
the amounts reported for basic and dilutedincome (loss) per common share are the same.