OfficeMax 2007 Annual Report Download - page 85

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Common Stock
The Company is authorized to issue 200,000,000 shares of common stock, of which 75,397,094
shares were issued and outstanding at December 29, 2007. Of the unissued shares, 7,393,647
shares were reserved for the following purposes:
Conversion or redemption of Series D ESOP preferred stock .................... 892,659
Issuance under OfficeMax Incentive and Performance Plan ..................... 5,193,025
Issuance under Key Executive Stock Option Plan ............................ 1,214,924
Issuance under Director Stock Compensation Plan ........................... 7,475
Issuance under Director Stock Option Plan ................................. 19,000
Issuance under Key Executive Deferred Compensation Plan .................... 9,377
Issuance under 2003 Director Stock Compensation Plan ....................... 57,187
The Company has a shareholder rights plan that was 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 an extension of the shareholder rights plan when it expires in 2008.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) includes the following:
Minimum Foreign Accumulated
Pension Currency Other
Liability Translation Comprehensive
Adjustment Adjustment Income (Loss)
Balance at December 31, 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 adoption of SFAS No. 158,
net of tax ............................. 11,911 — 11,911
Balance at December 30, 2006, net of taxes ...... (188,963) 96,968 (91,995)
Current-period changes, before taxes ........... 87,435 59,977 147,412
Income taxes ............................ (33,679) — (33,679)
Balance at December 29, 2007, net of taxes ...... $(135,207) $156,945 $ 21,738
Share-Based Payments
In December 2004, the FASB issued SFAS No. 123R, ‘‘Share Based Payment.’’ SFAS 123R is a
revision of SFAS No. 123, ‘‘Accounting for Stock-Based Compensation,’’ and supersedes
Accounting Principles Board Opinion (APB) No. 25, ‘‘Accounting for Stock Issued to Employees,’’
and its related implementation guidance. SFAS 123R focuses primarily on accounting 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 in the 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 SFAS 123R using the modified prospective
transition method. Accordingly, the financial statements for periods prior to January 1, 2006 have
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