OfficeMax 2006 Annual Report Download - page 68

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The income tax provision attributable toincome(loss)from continuing operations for the years
ended December 30, 2006 and December 31, 2005 and 2004 differed from the amounts computed by
applying the statutory U.S. Federal income tax rate of 35% to pre-tax income (loss) from continuing
operations as a result of the following:
2006 2005 2004
(thousands)
Tax(provision) benefit at statutory rate...................... $(60,157) $ 13,166 $(132,805)
State taxes, net of federal effect ............................ (5,907)(5,532) (12,043)
Foreign taxprovision differential........................... (5,262)(2,883) (6,905)
Basis difference ininvestments disposed of ................. —14,867 7,000
Nondeductible compensation............................. (473) (4,268) —
State NOL valuation allowance. ............................ (6,498)(21,533) —
Change in contingency liability. ............................ 1,925(4,607) —
Tax settlement, net of other charges........................ 5,24012,462 —
ESOP dividenddeduction ................................. 1,4131,489 2,911
Other, net ............................................... 978 (4,387) (449)
$ ( 68,741) $ (1,226) $(142,291)
The tax effects of temporary differences that give rise to significant portions of the deferred tax
assets and deferred tax liabilities are presented below at year end:
2006 2005
(thousands)
Current deferred tax assets (liabilities) attributable to
Accrued expenses ................................................. $40,231 $ 41,157
Net operating loss carryforwards..................................... 43,489 —
Allowances for receivables.......................................... 17,998 18,410
Compensation and benefits ......................................... 11,657 13,473
Inventory......................................................... (6,047) 10,290
Other temporarydifferences ......................................... 17,124 19,922
Contingency reserves .............................................. 5,0 44 2,568
Total current net deferred tax assets................................ $ 129,496 $105,820
Noncurrent deferredtax assets (liabilities) attributable to
Deferred gain(a) ................................................... (473,838) (473,838)
Alternativeminimum tax and other credit carryforwards ................. 214,590 234,222
Compensation and benefits ......................................... 152,221 158,853
Net operating loss carryforwards..................................... 66,849 110,788
Reserves.......................................................... 44,445 57,851
Investments ....................................................... 10,046 22,852
Goodwill.......................................................... (33,110) (31,060)
Other non-currentliabilities .......................................... 3,010 2,091
Undistributed earnings. ............................................. (4,776) (4,689)
Deferred charges .................................................. 2,692 3,056
Property andequipment ............................................ 14,300 1,890
Other temporarydifferences ......................................... (4,430) (4,253)
(8,001) 77,763
Less: Valuation allowance........................................... (30,734) (21,533)
Total noncurrent net deferred tax assets (liabilities).................. $ (38,735 ) $ 56,230
(a) Includes $543.8 million related to the gain on the sale of the Company’s timberlands to affiliates of Boise Cascade, L.L.C.
that was deferred until2019 for tax purposes.