OfficeMax 2006 Annual Report Download - page 85

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81
Qualified pensionbenefit payments are paid from theassets held in the plantrust, while
nonqualified pension and other benefit payments are paid bythe Company. Future benefit payments
by year are estimated to be as follows:
Pension
Benefits
Other
Benefits
(thousands)
2007 ............................................................... $103,788$ 2 ,551
2008 ...............................................................102,8352,347
2009 ...............................................................101,6792,156
2010 ...............................................................100,6162,009
2011 ............................................................... 99,7421,875
Years 2012-2016 ..................................................... 485,1658,251
Defined Contribution Plans
The Company also sponsors defined contribution plans for most of its employees. Through 2004,
theCompany sponsored four contributory defined contributionsavings plansfor most of its salaried
and hourly employees: a plan for OfficeMax, Retail employees, aplan fornon-Retail salaried
employees, a plan for union hourly employees, and a plan for non-Retail, nonunion hourly employees.
Effective October 29, 2004, the defined contribution planaccount balances for active paper and forest
products employees were transferred toplans establishedby Boise Cascade, L.L.C. The plan fornon-
Retail salaried employees includes an employee stock ownership plan (“ESOP”) component through
which the Company matches contributions of eligible employees. Under that plan, the Company’s
Series D ESOP convertible preferred stock is allocated to eligible participants, as principal and interest
payments are made on the ESOP debt by the plan. The ESOP debt was guaranteed by the Company.
(See Note 16, Shareholders’ Equity for additional information related to the ESOP.) The final principal
and interest payments on the ESOP debt were made on June 30,2004. All remaining shares were
allocated to the ESOP participants as matching contributions in 2005. As a result, Company matching
contributions for ESOP participants are now made in cash. In January 2005,all of the remaining
savings plans were merged into a single plan. Total Company contributions to the defined
contribution savings plans were $7.8 million in2006, $9.9 million in 2005, and $26.6 million in 2004.
16. Shareholders’ Equity
Preferred Stock
At December 30, 2006, 1,216,335 shares of 7.375% Series D ESOP convertible preferred stock
were outstanding, compared with 1,216,335 shares outstanding at December 31, 2005 and 1,376,987
shares outstanding at December 31, 2004. The Series DESOP convertiblepreferred stock is shown in
the Consolidated Balance Sheets at its liquidation preference of $45 per share. This preferred stock, a
portion of whichwas redeemed in 2004 with proceeds from the Sale, wasoriginally issued to the
trustee of theCompany’s ESOP for salaried employees in1989, and was allocated to eligible
participants through 2005. All shares outstanding have been allocated to participants in theplan. Each
ESOP preferred share is entitled to one vote, bears an annual cumulative dividendof$3.31875 and is
convertible at any time bythe trustee to 0.80357 share of common stock. The ESOP preferred shares
may not be redeemed forless than the liquidation preference.
The Company redeemed $110 million of its Series D preferred stock onNovember 1, 2004, and
paid related accrued dividends of $3 million.