OfficeMax 2006 Annual Report Download - page 7

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3
operates office products stores inMexico through a 51%-owned joint venture. Substantially all
products sold by this segment are purchased from outside manufacturers orfrom industry
wholesalers, except office papers. As described above, we purchase office papers primarily from the
paper operations of Boise Cascade, L.L.C.,under a 12-year papersupply contract we entered into at
the timeof the Sale.
As of January 27, 2007,our Retail segmentoperated 914 stores in theU.S. and Mexico, three
large distribution centers inthe U.S., and two small distribution centers in Mexico. Each store offers
approximately 10,000 stock keeping units (SKUs) of name-brand and OfficeMax private-branded
merchandiseand a variety of businessservices targeted at serving the small business customer,
including OfficeMaxImPress. As ofJanuary 27, 2007, our Retail segment operated six OfficeMax
ImPress print on demand facilities with enhanced fulfillment capabilities. These 8,000 square foot
operations are located within some of our contract distribution centers, and serve the print and
documentneeds of ourlarge contract customers in addition to supportingour retail stores by
providing services that cannot be deployed at every retail store.
OfficeMax, Retail sales for 2006, 2005 and 2004 were $4.3 billion, $4.5 billion and $4.5 billion,
respectively.
Boise Building Solutions
Substantially all of the assets ofthissegment were included in theSale. Boise Building Solutions
was a major producer of plywood, lumber and particleboard. This segment also manufactured
engineered wood products, including laminated veneer lumber, wood I-joists and laminated beams.
Most of the production was sold to independent wholesalers and dealers or through the segment’s
building materials distribution outlets for use inhousing,industrial construction and a variety of
manufactured products.
Boise Building Solutions operated 28 building materials distribution facilities as of October 28,
2004 that marketed a wide range of buildingmaterials. These products were distributed to retail
lumber dealers, home centers specializing in thedo-it-yourself market and industrial customers.
Through October 28, 2004, approximately 25% of the lumber, panels and engineered wood products
purchased by the distribution operations wereprovided by this segment’s manufacturing facilities,
with the balance purchased from outsidesources. Segment sales for the period fromJanuary 1
through October 28, 2004, were $3.3 billion.
Boise Paper Solutions
Substantiallyall of the assets ofthissegment were included in theSale. Boise Paper Solutions
manufactured and sold uncoated free sheet papers, containerboard, corrugated containers, newsprint
and market pulp. Boise Paper Solutions sales for the period from January 1 through October 28,
2004, were $1.7 billion.
About 46% of thissegment’s uncoated free sheetpaper, including about83% of its office papers,
was sold through the OfficeMax,Contractand OfficeMax, Retail segments during the period from
January 1through October 28, 2004.
Timber Resources
On October 29, 2004,we sold substantially all of our timberland assets, including approximately
2.3 million acres of timberland inthe United States, 35,000acres of eucalyptus plantation land in
Brazil and a 16,000-acre cottonwood fiber farm near Wallula, Washington, to affiliates of Boise
Cascade, L.L.C.