OfficeMax 2007 Annual Report Download - page 33

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Integration and facility closure reserve account activity during 2007, 2006 and 2005, including
activity related to the reorganization of our Contract segment, retail store closures and headquarters
consolidation, was as follows:
Lease\ Asset
Contract Severance\ Write-off &
Terminations Retention Impairment Other Total
(thousands)
Balance at December 31, 2004 .... $116,390 $ 6,642 $ — $ 409 $123,441
Charges to income ............. 547 21,214 23,062 3,565 48,388
Change in goodwill ............. — — — — —
Changes to estimated costs
included in income ........... — — — — —
Cash payments ............... (28,872) (6,354) — (3,235) (38,461)
Non-cash charges ............. — — (23,062) — (23,062)
Accretion .................... 3,390 — — — 3,390
Balance at December 31, 2005 .... $ 91,455 $ 21,502 $ — $ 739 $113,696
Charges to income ............. 89,934 19,407 9,543 27,332 146,216
Change in goodwill ............. (11,000) — — — (11,000)
Changes to estimated costs
included in income ........... — (1,080) — — (1,080)
Cash payments ............... (68,596) (28,991) — (18,951) (116,538)
Non-cash charges ............. — — (9,543) (5,978) (15,521)
Accretion .................... 6,031 — — — 6,031
Balance at December 30, 2006 .... $107,824 $ 10,838 $ — $ 3,142 $121,804
Charges to income ............. — — — — —
Change in goodwill ............. — — — — —
Changes to estimated costs
included in income ........... — — — — —
Cash payments ............... (38,196) (8,424) — (1,725) (48,345)
Non-cash charges ............. — — — — —
Accretion .................... 3,603 — — — 3,603
Balance at December 29, 2007 .... $ 73,231 $ 2,414 $ — $ 1,417 $ 77,062
At December 29, 2007, approximately $22.2 million of the integration and facility closure
reserve liability was included in accrued liabilities, other, and $54.9 million was included in other
long-term liabilities. At December 29, 2007, the integration activities and facility closures reserve
included approximately $73 million for estimated future lease obligations, which represents the
estimated fair value of the lease obligations and is net of anticipated sublease income of
approximately $77 million.
Liquidity and Capital Resources
As of December 29, 2007, we had $152.6 million of cash and cash equivalents and
$398.4 million of short-term and long-term debt, excluding the $1.5 billion of timber securitization
notes. We also had $22.4 million of restricted investments on deposit which are pledged to secure
a portion of the outstanding debt. During 2007, our net debt (total debt excluding the timber
securitization notes less cash and restricted investments) increased by approximately
$117.9 million. The increase in net debt is due in part to our termination of our accounts receivable
29