OfficeMax 2006 Annual Report Download - page 73

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69
2005
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
(thousands)
Trade names ............................... $173,100 $ — $ 173,100
Customer lists and relationships .............. 36,438 (13,438 )23,000
Noncompete agreements .................... 12,852 (5,577 ) 7,275
Exclusive distribution rights.................. 3,508(1,651) 1,857
$ 225,898$ ( 20,666) $205,232
Intangible asset amortization expense totaled $7.3 millionin 2006,$6.8 million in 2005 and
$5.8 million in 2004. The estimated amortization expense is $7.1 million, $4.9 million, $1.8 million,
$1.7 million, $1.4million and $1.4 million in 2007, 2008, 2009, 2010, 2011and 2012, respectively.
During the first quarter of both 2006 and 2005, the Company evaluated theremaininguseful lives
of finite-lived purchased intangible assets to determine if any adjustments to the useful lives were
necessary. Based onthisreview, management determined that no adjustments to the useful lives of
finite-lived purchased intangible assets were necessary.
12. Timber Notes Receivable
In October 2004, OfficeMax sold its timberlands as part of the Sale. In exchange for the
timberlands, the Company received timberinstallment notes receivable in the amount of
$1,635 million, which were credit enhanced with guarantees. The guarantees were issued by
highly-rated financial institutions and were secured by the pledge of underlying collateral notes issued
by the credit enhancement banks. The timber installment notes receivable are 15-year non-amortizing.
There are twonotes that total $817.5 million bearing interest at 4.982% and a third note in the amount
of $817.5 million bearinginterest at 5.112%.Interest earned on all of the notes is received
semiannually. See the sub-caption “Timber Notes” in Note 13, Debt, for additional information
concerningasecuritization transaction involving the timber installmentnotes receivable.