OfficeMax 2006 Annual Report Download - page 54

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50
Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
Nature of Operations
OfficeMaxIncorporated (“OfficeMax” or the “Company”) is a leaderin both business-to-business
and retail office productsdistribution. The Company provides office supplies and paper, print and
document services, technology products and solutions and furniture to large,medium and small
businesses, governmental offices, and consumers.OfficeMax customers are serviced by
approximately 36,000 associates through direct sales, catalogs, the Internet and a network of retail
stores located throughout the United States, Canada, Australia, New Zealand and Mexico. The
Company’s common stock is tradedonthe New York Stock Exchange under the ticker symbol OMX.
The Company’s corporate headquarters is located inNaperville,Illinois, and the OfficeMax website
address is www.officemax.com.
On October 29, 2004, the Company sold substantially all of its paper, forest products and
timberland assets for approximately $3.7 billion in cash and other consideration to affiliates of Boise
Cascade, L.L.C., a new company formed by Madison Dearborn Partners LLC (the “Sale”). With the
Sale,the Company completed its transition, begun inthe mid-1990s, from a predominantly
manufacturing-based company to an independentoffice products distribution company. In
connectionwith the Sale, Boise Cascade Corporation changed its company name to OfficeMax
Incorporated. (See Note 2, Sale of Paper, Forest Products and Timberland Assets, for additional
information related to theSale.)
Since the Sale, the Company manages its business using three reportable segments: OfficeMax,
Contract; OfficeMax, Retail; and Corporate and Other. Resultsfor periods prior to the Sale include the
operations of the Boise Building Solutions andBoise Paper Solutions segments. Substantially all of
the assets and operations of these segmentswere included in the Sale. OfficeMax, Contract markets
and sells office supplies and paper, technology products and solutions and office furniture directly to
large corporate and government offices, as well as to small and medium-sized offices through field
salespeople, outbound telesales, catalogs, the Internet and in some markets office productsstores.
OfficeMax, Retail markets and sells office supplies and paper, print and document services,
technology products and solutions and office furniture to small and medium-sized businesses and
consumers througha network of retail stores. Boise Building Solutions manufactured, marketed and
distributed various productsthat are used for construction. Boise Paper Solutions manufactured,
marketed and distributed uncoated free sheet papers, containerboard, corrugated containers, and
newsprint and market pulp.
Consolidation
The consolidated financial statements include the accounts ofOfficeMax and all majority owned
subsidiaries as well as those of variable interest entities in which the Company is the primary
beneficiary. All significant intercompany balances and transactions have been eliminated in
consolidation.
Fiscal Year
Effective March 11,2005, the Company amended its bylaws to make itsfiscal year-end the last
Saturday in December. Prior to this change, all of the Company’s businesses except for its U.S. retail
operations had a December 31 fiscal year-end. The U.S. retailoperations maintained a fiscal year that
ended on the last Saturday in December.Due primarily to statutory requirements, the Company’s
international businesses have maintained their December 31 year-ends. Fiscal year 2006 ended on