OfficeMax 2007 Annual Report Download - page 84

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Qualified pension benefit payments are paid from the assets held in the plan trust, while
nonqualified pension and other benefit payments are paid by the Company. Future benefit
payments by year are estimated to be as follows:
Pension Other
Benefits Benefits
(thousands)
2008 ..................................................... $104,020 $2,039
2009 ..................................................... 102,756 1,893
2010 ..................................................... 101,587 1,790
2011 ..................................................... 100,467 1,707
2012 ..................................................... 99,657 1,626
Years 2013-2017 ............................................ 480,609 7,584
Defined Contribution Plans
The Company also sponsors defined contribution plans for most of its employees. Through
2004, the Company sponsored four contributory defined contribution savings plans for most of its
salaried and hourly employees: a plan for OfficeMax, Retail employees, a plan for non-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 plan account balances for active
paper and forest products employees were transferred to plans established by Boise Cascade,
L.L.C. The plan for non-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 15, 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 $8.1 million in 2007,
$7.8 million in 2006 and $9.9 million in 2005.
15. Shareholders’ Equity
Preferred Stock
At December 29, 2007, 1,110,867 shares of 7.375% Series D ESOP convertible preferred stock
were outstanding, compared with 1,216,335 shares outstanding at December 30, 2006 and
December 31, 2005. The Series D ESOP convertible preferred stock is shown in the Consolidated
Balance Sheets at its liquidation preference of $45 per share. This preferred stock was originally
issued to the trustee of the Company’s ESOP for salaried employees in 1989, and was allocated to
eligible participants through 2005. All shares outstanding have been allocated to participants in the
plan. Each ESOP preferred share is entitled to one vote, bears an annual cumulative dividend of
$3.31875 and is convertible at any time by the trustee to 0.80357 share of common stock. The
ESOP preferred shares may not be redeemed for less than the liquidation preference.
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