OfficeMax 2006 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2006 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 124

  • 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

63
6. Other Operating,Net
The componentsof other operating, netinthe Consolidated Statements of Income(Loss) are as
follows:
2006 2005 2004
(thousands)
Gain on sale of interest in VoyageurPanel (Note 10).......... $—$— $ (46,498)
Gain on sale of Louisianatimberlands(a) .................... —— (59,915)
Gains on sales of other timberlands........................ —— (15,059)
Gain on sale of forestproductsassets (Note2).............. —— (280,558)
Integration activities and facility closure costs (Note 4)........ 146,216 48,178 8,936
Loss on saleand write-down of Yakima assets(b)............ —— 7,123
Costs incidental to the Sale (Note 2)........................ —— 18,916
Legal settlement(c)....................................... —9,800 —
Other, net ............................................... —1,527 2,757
Earnings fromaffiliates. ................................... (5,873) (5,460 ) (6,311)
$ 1 40,343 $54,045 $ ( 370,609)
(a) In March 2004, the Company sold approximately 79,000 acres of timberland in western Louisiana for $84 million in cash
and recognized a $59.9 million pre-tax gain in the ConsolidatedStatement of Income (Loss) for 2004.
(b) In February 2004, the Company completed the sale of its plywood and lumber facilities in Yakima, Washington. In
connection with the sale, the Company recorded $7.1 million of costs in other operating, net in the Consolidated
Statement of Income for 2004. The sale also resulted in a $7.4 million reduction in the LIFO inventory reserve, the effect of
which was reflected in cost of goods sold and occupancycosts in 2004.
(c) Legal settlement with the Department ofJustice.
7. Income Taxes
Income tax (provision) benefit attributable to income(loss)from continuingoperations as shown
in the Consolidated Statements ofIncome (Loss) includes the following components:
2006 2005 2004
(thousands)
Current income tax (provision) benefit
Federal............................................... $(10,014) $ 28,908 $(124,944)
State ................................................. (4,079) (14,629) (7,933)
Foreign............................................... (17,816) (20,512) (24,606)
(31,909) (6,233) (157,483)
Deferred income tax(provision) benefit
Federal............................................... (31,521) 22,646 21,350
State ................................................. (6,428) (23,331) (10,595)
Foreign............................................... 1,117 5,692 4,437
(36,832) 5,007 15,192
$ ( 68,741) $ (1,226) $(142,291)
Income tax benefit attributable to loss from discontinued operations was $10.6 million,
$20.1 million and $38.9 million for 2006, 2005 and 2004, respectively.
During 2006, 2005and 2004, the Company made cash payments for income taxes, net of refunds
received, of $0.6 million, $134.1 million and $36.6 million, respectively.