OfficeMax 2008 Annual Report Download - page 75

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The Company receives distributions from affiliates of Boise Cascade, L.L.C. for the income tax
liability associated with allocated earnings of Boise Cascade, L.L.C. The portion of the tax
distributions received related to non-voting equity units is recorded in the Consolidated Balance
Sheets as a reduction in dividends receivable. The portion associated with voting equity units is
recorded as income in other income (expense), net (non-operating) in the Consolidated Statements
of Income (Loss). During 2008 and 2007, the Company received distributions of $23.0 million and
$2.8 million, respectively. The distribution received in 2008 included an amount related to the
income tax liability associated with the allocated gain on the sale by Boise Cascade, L.L.C. of a
majority interest in its paper and packaging and newsprint businesses during the first quarter of
2008.
We review the carrying value of this investment whenever events or circumstances indicate that
its fair value may be less than its carrying amount. During 2008, the Company requested and
reviewed financial information of Boise Cascade, L.L.C. and determined that there was no
impairment of this investment as of December 27, 2008. The Company will continue to monitor and
assess this investment for impairment indicators.
The investment in Boise Cascade represented a continuing involvement in the operations of the
sold company. Therefore, approximately $180 million of gain realized from the sale was deferred.
This gain is expected to be recognized in earnings as the Company’s investment is reduced.
11. Debt
Debt, almost all of which is unsecured, consists of the following at year-end:
2008 2007
(thousands)
7.50% notes, due in 2008 .................................. $ — $ 29,656
9.45% debentures, due in 2009 .............................. 35,707 35,707
6.50% notes, due in 2010 .................................. 13,680 13,680
7.00% notes, due in 2013 .................................. — 19,100
7.35% debentures, due in 2016 .............................. 17,967 17,967
Medium-term notes, Series A, with interest rates averaging 7.8% and
7.8%, due in varying amounts annually through 2013 ............. 51,900 56,900
Revenue bonds, with interest rates averaging 6.4% and 6.4%, due in
varying amounts annually through 2029 ...................... 189,930 189,930
American & Foreign Power Company Inc. 5% debentures, due in 2030 . 18,526 18,526
Grupo OfficeMax installment loan, due in 60 monthly installments
starting in 2009 and concluding in 2014 ...................... 11,202 —
Other indebtedness, with interest rates averaging 10.9% and 8.3%, due
in varying amounts annually through 2017 .................... 16,058 17,609
354,970 399,075
Less unamortized discount ................................. 596 630
Less current portion ...................................... 64,452 49,024
289,922 349,421
5.42% securitized timber notes, due in 2019 ..................... 735,000 735,000
5.54% securitized timber notes, due in 2019 ..................... 735,000 735,000
$1,759,922 $1,819,421
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