OfficeMax 2008 Annual Report Download - page 20

Notes to Financial Statements
(a) 2008 included the following pre-tax items:
•$1,364.4 million charge for impairment of goodwill, trade names and fixed assets and a $6.5 million impact to
minority interest reflecting our minority partner’s share of fixed asset impairment charges.
•$735.8 million charge for non-cash impairment of the timber installment note receivable due from Lehman and
$20.4 million of related interest expense.
•$27.9 million charge for severance and the termination of certain store and site leases.
•$20.5 million gain related to the Company’s investment in affiliates of Boise Cascade, L.L.C., primarily from
their sale of a majority interest in their paper and packaging and newsprint business.
(b) 2007 included the following items:
•$32.4 million pre-tax gain related to the Boise Cascade L.L.C. Additional Consideration Agreement terminated
in early 2008.
•$1.1 million loss related to the sale of OfficeMax’s Contract operations in Mexico to Grupo OfficeMax, our 51%
owned joint venture.
(c) 2006 included the following pre-tax items:
•$89.5 million charge related to the closing of 109 underperforming domestic retail stores.
•$46.4 million charge related to the relocation and consolidation of our corporate headquarters.
•$10.3 million charge primarily related to a reorganization of our Contract segment.
•$18.0 million charge primarily for contract termination and other costs related to the closure of our Elma,
Washington manufacturing facility, which is accounted for as a discontinued operation.
•$48.0 million of income from the Additional Consideration Agreement we entered into in connection with the
Sale.
(d) 2005 included the following pre-tax items:
•$25.0 million charge related to the relocation and consolidation of our corporate headquarters.
•$31.9 million charge primarily for one-time severance payments, professional fees and asset write-downs.
•$17.9 million related to the write-down of impaired assets, primarily related to retail store closures.
•$5.4 million charge related to the restructuring of our international operations.
•$9.8 million charge related to a legal settlement with the Department of Justice.
•$14.4 million loss related to our early retirement of debt.
•$28.2 million for the write-down of impaired assets at our Elma, Washington manufacturing facility, which is
accounted for as a discontinued operation.
2005 included 53 weeks for our OfficeMax, Retail segment.
(e) 2004 included the following pre-tax items:
•$67.8 million charge for the write-down of impaired assets at our Elma, Washington manufacturing facility,
which is accounted for as a discontinued operation.
•$59.9 million gain on the sale of approximately 79,000 acres of timberland located in western Louisiana.
•$46.5 million gain on the sale of our 47% interest in Voyageur Panel.
•$15.9 million of expense for the costs of certain one-time benefits granted to employees.
•$137.1 million of expense related to our early retirement of debt.
2004 included the results of our Boise Building Solutions and Boise Paper Solutions segments through
October 28, 2004. On October 29, 2004, we completed the sale of our paper, forest products and timberland
assets to affiliates of Boise Cascade, L.L.C., a new company formed by Madison Dearborn Partners LLC, and
recorded a $280.6 million pre-tax gain. Part of the consideration we received in connection with the Sale
consisted of timber installment notes receivable. We securitized the timber installment notes receivable for
proceeds of $1.5 billion in December 2004. At the same time we entered into interest rate swap contracts to
hedge the interest rate risk associated with the issuance of debt securities by special-purpose entities formed by
the Company, and in December 2004 recorded $19.0 million of related expense.
(f) The computation of diluted income (loss) per common share was antidilutive in the years 2008 and 2005;
therefore, the amounts reported for basic and diluted income (loss) per common share are the same.
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