OfficeMax 2008 Annual Report Download - page 68

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Integration and facility closure reserve account activity during 2008, 2007 and 2006, including
activity related to the reorganization of the Contract segment, retail store closures and headquarters
consolidation was as follows:
Lease\ Asset
Contract Severance\ Write-off and
Terminations Retention Impairment Other Total
(thousands)
Balance at December 31,
2005 ................. $ 91,455 $ 21,502 $ — $ 739 $ 113,696
Charges to income ........ 89,934 19,407 9,543 27,332 146,216
Change in goodwill ........ (11,000) — — — (11,000)
Changes to estimated costs
included in income ...... — (1,080) — — (1,080)
Cash payments .......... (68,596) (28,991) — (18,951) (116,538)
Non-cash charges ........ — — (9,543) (5,978) (15,521)
Accretion ............... 6,031 — — — 6,031
Balance at December 30,
2006 ................. $107,824 $ 10,838 $ — $ 3,142 $ 121,804
Cash payments .......... (38,196) (8,424) — (1,725) (48,345)
Accretion ............... 3,603 — — — 3,603
Balance at December 29,
2007 ................. $ 73,231 $ 2,414 $ — $ 1,417 $ 77,062
Charges to income ........ 11,774 79 — — 11,853
Changes to estimated costs
included in income ...... (5,982) (1,414) — — (7,396)
Cash payments .......... (33,227) (1,068) — (934) (35,229)
Accretion ............... 2,643 — — — 2,643
Balance at December 27,
2008 ................. $ 48,439 $ 11 $ — $ 483 $ 48,933
At December 27, 2008, approximately $14.3 million of the reserve liability was included in
accrued liabilities, other, and $34.6 million was included in other long-term liabilities. At
December 29, 2007, approximately $22.2 million of the reserve liability was included in accrued
liabilities, other, and $54.9 million was included in other long-term liabilities. At December 27, 2008,
the integration activities and facility closures reserve included approximately $106 million for
estimated future lease obligations, net of anticipated sublease income of approximately $57 million.
6. Net Income (Loss) Per Common Share
Basic net income (loss) per share is calculated using net earnings available to common
stockholders divided by the weighted-average number of shares of common stock outstanding
during the year. Diluted net income (loss) per share is similar to basic net income (loss) per share
except that the weighted-average number of shares of common stock outstanding is increased to
include, if their inclusion is dilutive, the number of additional shares of common stock that would
have been outstanding assuming the issuance of all potentially dilutive shares, such as common
stock to be issued upon exercise of options and non-vested restricted shares, and the conversion
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