OfficeMax 2007 Annual Report Download - page 38

Upon the maturity of the Pledged Instruments in 2008, the Company intends to reinvest the
proceeds for a five year term.
Other
We had leased certain equipment at our integrated wood-polymer building materials facility
near Elma, Washington under a capital lease. The lease agreement had a base term of seven years
and an interest rate of 4.67%. During the first quarter of 2006, we paid $29.1 million to terminate the
lease agreement.
Cash Paid for Interest
Cash payments for interest, net of interest capitalized and including interest payments related
to the timber securitization notes, were $116.6 million in 2007, $124.1 million in 2006 and
$122.6 million in 2005.
Contractual Obligations
In the table below, we set forth our contractual obligations as of December 29, 2007. Some of
the figures we include in this table are based on management’s estimates and assumptions about
these obligations, including their duration, the possibility of renewal, anticipated actions by third
parties and other factors. Because these estimates and assumptions are necessarily subjective, the
amounts we will actually pay in future periods may vary from those reflected in the table.
Payments Due by Period
2008 2009-2010 2011-2012 Thereafter Total
(millions)
Debt(a)(c) ...................... $ 34.8 $ 66.8 $ 35.6 $ 247.0 $ 384.2
Timber notes securitized ........... — — — 1,470.0 1,470.0
Operating leases(b)(e) ............. 371.8 639.8 468.2 583.3 2,063.1
Purchase obligations .............. 32.4 5.6 0.4 0.6 39.0
Other long-term liabilities(d) ......... — — — — —
$439.0 $712.2 $504.2 $2,300.9 $3,956.3
(a) Included in debt are amounts owed on our note agreements, revenue bonds and credit agreements. These borrowings
are further described in Note 12, Debt, of the Notes to Consolidated Financial Statements in ‘‘Item 8. Financial
Statements and Supplementary Data’’ in this Form 10-K. The table assumes our debt is held to maturity.
(b) We enter into operating leases in the normal course of business. We lease our retail store space as well as certain other
property and equipment under operating leases. Some of our retail store leases require percentage rentals on sales
above specified minimums and contain escalation clauses. These minimum lease payments do not include contingent
rental expense. Some lease agreements provide us with the option to renew the lease or purchase the leased property.
Our future operating lease obligations would change if we exercised these renewal options and if we entered into
additional operating lease agreements. For more information, see Note 7, Leases, of the Notes to Consolidated Financial
Statements in ‘‘Item 8. Financial Statements and Supplementary Data’’ in this Form 10-K.
(c) The current portion of these liabilities is also included.
(d) Our Consolidated Balance Sheet as of December 29, 2007 includes $200.3 million of liabilities associated with our
retirement and benefit plans and $403.0 million of other long-term liabilities. Certain of these amounts have been
excluded from the above table as either the amounts are fully or partially funded, or the timing and/or the amount of any
cash payment is uncertain.
(e) Lease obligations for closed facilities are included in operating leases and a liability equal to the fair value of these
obligations is included in the Company’s Consolidated Balance Sheets. For more information, see Note 3, Integration
Activities and Facility Closures, of the Notes to Consolidated Financial Statements in ‘‘Item 8. Financial Statements &
Supplementary Data’’ in this Form 10-K.
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