OfficeMax 2007 Annual Report Download - page 95

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Ruiz De Luzuriaga, Jane E. Shaw, Carolyn M. Ticknor, Ward W. Woods, Brian C. Cornell, David M.
Szymanski, Richard R. Goodmanson, Donald N. MacDonald, and Frank A. Schrontz. The complaint
also names the following former directors of OfficeMax, Inc. as defendants: Michael Feuer, Lee
Fisher, Edwin J. Holman, Jerry Sue Thornton, Burnett W. Donoho, Michael F. Killeen, Ivan J.
Winfield, and Jacqueline Woods. OfficeMax Incorporated is named as a nominal defendant. The
complaint purports to assert, among other things, various common law derivative claims against the
individual defendants including breach of fiduciary duty and unjust enrichment. The complaint
seeks an award in favor of OfficeMax and against the individual defendants of an unspecified
amount of damages, disgorgement of benefits and compensation, equitable or injunctive relief,
costs, including attorneys’ fees, and such other relief as the court deems just and proper. Pursuant
to provisions of company’s bylaws, fees and other expenses incurred in connection with the
foregoing derivative action are being advanced on behalf of those present and former officers and
directors by the company.
The Company is also involved in other litigation and administrative proceedings arising in the
normal course of business. In the opinion of management, the Company’s recovery, if any, or
liability, if any, under such pending litigation or administrative proceedings would not materially
affect the Company’s financial position, results of operations or cash flows.
19. Quarterly Results of Operations (unaudited)
Summarized quarterly financial data is as follows:
2007 2006
First(a) Second Third Fourth(b) First(c) Second(d) Third(e) Fourth(f)
(millions, except per-share and stock price information)
Sales .................. $2,436 $2,132 $2,315 $2,199 $2,424 $2,041 $2,244 $2,257
Income (loss) from continuing
operations ............ 59 27 50 71 (14) 27 31 55
Income (loss) from
discontinued operations . . . — — — — (11) — — 4
Net income (loss) ......... 59 27 50 71 (25) 27 31 59
Net income (loss) per
common share from
continuing operations(g)
Basic ................ .77 .35 .65 .93 (.21) .36 .41 .72
Diluted ............... .76 .35 .64 .92 (.21) .35 .41 .71
Net income (loss) per
common share(g)
Basic ................ .77 .35 .65 .93 (.37) .36 .41 .76
Diluted ............... .76 .35 .64 .92 (.37) .35 .41 .76
Common stock dividends
paid per share ......... .15 .15 .15 .15 .15 .15 .15 .15
Common stock prices(h)
High ................. 55.40 54.38 40.16 34.89 31.73 44.73 45.38 51.80
Low................. 47.87 38.64 30.96 20.38 24.72 30.42 38.78 40.26
(a) Includes $1.1 million of charges from the sale of OfficeMax Contract’s operations in Mexico to Grupo OfficeMax, our
51% owned joint venture. This was recorded as an increase in minority interest, net of income tax.
(b) Includes $32.5 million of income from adjustments to the estimated fair value of the Additional Consideration
Agreement we entered into in connection with the sale of our paper, forest products and timberland assets in 2004.
(c) Includes $98.5 million of store closing and impairment charges, $15.7 million of charges related to headquarters
consolidation and $11.0 million of charges for the write-down of impaired assets at the Company’s Elma, Washington
manufacturing facility that is accounted for as a discontinued operation.
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