OfficeMax 2007 Annual Report Download - page 20

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(a) 2007 included the following:
•A net loss of $1.1 million included in minority interest, net of income tax related to the sale of OfficeMax, Contract’s
operations in Mexico to Grupo OfficeMax, our 51% owned joint venture.
•$32.5 million of pre-tax income from the Additional Consideration Agreement we entered into in connection with the
Sale.
(b) 2006 included the following pre-tax charges:
•$89.5 million related to the closing of 109 underperforming domestic retail stores.
•$46.4 million related to the relocation and consolidation of our corporate headquarters.
•$10.3 million primarily related to a reorganization of our Contract segment.
•$18.0 million primarily for contract termination and other costs related to the closure of our Elma, Washington
manufacturing facility, which is accounted for as a discontinued operation.
2006 also included $48.0 million of pre-tax income from adjustments to the estimated fair value of the Additional
Consideration Agreement we entered into in connection with the Sale.
(c) 2005 included the following pre-tax charges:
•$25.0 million related to the relocation and consolidation of our corporate headquarters.
•$31.9 million primarily for one-time severance payments, professional fees and asset write-downs.
•$17.9 million related to the write-down of impaired assets, primarily related to retail store closures.
•$5.4 million related to the restructuring of our international operations.
•$9.8 million for a legal settlement with the Department of Justice.
•$14.4 million related to our early retirement of debt.
•$28.2 million for the write-down of impaired assets at our Elma, Washington manufacturing facility, which is accounted
for as a discontinued operation.
2005 included 53 weeks for our OfficeMax, Retail segment.
(d) 2004 included a $67.8 million pre-tax charge for the write-down of impaired assets at our Elma, Washington,
manufacturing facility, which is accounted for as a discontinued operation.
2004 included the results of our Boise Building Solutions and Boise Paper Solutions segments through October 28,
2004. On October 29, 2004, we completed the sale of our paper, forest products and timberland assets to affiliates of
Boise Cascade, L.L.C., a new company formed by Madison Dearborn Partners LLC, and recorded a $280.6 million
pre-tax gain. Part of the consideration we received in connection with the Sale consisted of timber installment notes
receivable. We securitized the timber installment notes receivable for proceeds of $1.5 billion in December 2004. At the
same time we entered into interest rate swap contracts to hedge the interest rate risk associated with the issuance of
debt securities by special-purpose entities formed by the Company, and in December 2004 recorded $19.0 million of
related expense.
2004 included $137.1 million of costs related to our early retirement of debt.
2004 included a pre-tax gain of $59.9 million on the sale of approximately 79,000 acres of timberland located in western
Louisiana.
2004 included a pre-tax gain of $46.5 million on the sale of our 47% interest in Voyageur Panel.
2004 included $15.9 million of expense for the costs of certain one-time benefits granted to employees.
(e) 2003 included a pre-tax charge of $10.1 million for employee-related costs incurred in connection with the 2003
cost-reduction program.
2003 included a net $2.9 million one-time tax benefit related to a favorable tax ruling, net of changes in other tax items.
2003 included a $14.7 million pre-tax charge for the write-down of impaired assets at our plywood and lumber
operations in Yakima, Washington.
2003 included income from the OfficeMax, Inc. operations for the period from December 10, 2003 through
December 27, 2003, and costs, including incremental interest expense, directly related to the acquisition. The net effect
of these items reduced income by $4.1 million before taxes, or $2.5 million after taxes.
(f) The computation of diluted income (loss) per common share was antidilutive in the years 2005 and 2003; therefore, the
amounts reported for basic and diluted income (loss) per common share are the same.
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