OfficeMax 2006 Annual Report Download - page 86

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82
Common Stock
The Company is authorized to issue 200,000,000 shares ofcommon stock, of which 74,903,220
shares were issued and outstanding at December 30, 2006. Of these, 7,170 shares were restricted
stock, which isdiscussed below. Of the unissuedshares, 8,133,246 shares were reserved for the
following purposes:
Conversion or redemption of Series DESOP preferred stock........................977,410
Issuance under OfficeMax Incentive and PerformancePlan..........................5,657,893
Issuance under Key ExecutiveStock Option Plan ..................................1,382,264
Issuance under Director Stock Compensation Plan.................................7,475
Issuance under Director Stock Option Plan........................................36,000
Issuance under KeyExecutive Deferred Compensation Plan.........................13,464
Issuance under 2003 Director Stock Compensation Plan ............................ 58,740
The Company has a shareholder rights plan thatwas adopted in December 1988. The current
rights plan, as amended and restated, took effect in December 1998 and expires in December 2008.
On January 18, 2006, the Company announced that the Company’s Board of Directors voted not to
seek anextension of the shareholder rights plan when it expires in 2008.
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss includes thefollowing:
Minimum
Pension
Liability
Adjustment
Foreign
Currency
Translation
Adjustment
Accumulated
Other
Comprehensive
Loss
Balance atDecember31, 2004, net of taxes ......... $(236,123) $91,424$(144,699)
Current-period changes,before taxes. .............. 14,099 (6,037) 8,062
Income taxes .................................... (5,484)— (5,484)
Balance atDecember31, 2005, net of taxes ......... (227,508)85,387 (142,121)
Current-period changes,before taxes. .............. 29,999 11,581 41,580
Income taxes .................................... (3,365)— (3,365)
Adjustment from initial adoptionof SFAS No. 158, net
of tax ......................................... 11,911 —11,911
Balance atDecember30, 2006, net of taxes ......... $ (188,963)$ 9 6,968 $(91,995)
Share-Based Payments
In December 2004, the FASB issued SFAS No. 123R,“Share Based Payment.” SFAS 123R is a
revisionof SFAS No. 123, “Accounting for Stock-Based Compensation,” and supersedes Accounting
PrinciplesBoard Opinion (APB) No. 25, “Accountingfor Stock Issued to Employees,” and its related
implementation guidance. SFAS 123R focuses primarily onaccounting for transactions in which an
entity obtains employee services in exchange for share-based payments. SFAS 123R requires entities
to recognize compensation expense from all share-based payment transactions inthe financial
statements. SFAS 123R establishes fair value as the measurement objective in accounting for share-
based payment transactions and requires all companies to apply a fair-value-based measurement
method in accounting for share-based payment transactions with employees.
Effective January 1, 2006, the Company adopted SFAS123R usingthe modified prospective
transition method. Accordingly, the financial statements for periods prior to January 1, 2006 have not
been restated to reflect the adoption of SFAS 123R. Under the modified prospective transition