OfficeMax 2008 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2008 OfficeMax annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

14. Shareholders’ Equity
Preferred Stock
At December 27, 2008, 945,899 shares of 7.375% Series D ESOP convertible preferred stock
were outstanding, compared with 1,110,867 shares outstanding at December 29, 2007 and
1,216,335 shares outstanding at December 30, 2006. The Series D ESOP convertible preferred
stock is shown in the Consolidated Balance Sheets at its liquidation preference of $45 per share.
This preferred stock was originally issued to the trustee of the Company’s ESOP for salaried
employees in 1989, and was allocated to eligible participants through 2005. All shares outstanding
have been allocated to participants in the plan. Each ESOP preferred share is entitled to one vote,
bears an annual cumulative dividend of $3.31875 and is convertible at any time by the trustee to
0.80357 share of common stock. The ESOP preferred shares may not be redeemed for less than
the liquidation preference.
Common Stock
The Company is authorized to issue 200,000,000 shares of common stock, of which 75,977,152
shares were issued and outstanding at December 27, 2008. Of the unissued shares, 9,457,997
shares were reserved for the following purposes:
Conversion or redemption of Series D ESOP preferred stock .................... 760,096
Issuance under OfficeMax Incentive and Performance Plan ..................... 7,441,607
Issuance under Key Executive Stock Option Plan ............................ 1,167,624
Issuance under Director Stock Compensation Plan ........................... 7,475
Issuance under Director Stock Option Plan ................................. 16,000
Issuance under Key Executive Deferred Compensation Plan ..................... 8,008
Issuance under 2003 Director Stock Compensation Plan ....................... 57,187
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 30, 2006 ............... $(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 ............... (135,207) 156,945 21,738
Current-period changes, before taxes ........... (336,993) (83,758) (420,751)
Income taxes ............................ 131,275 — 131,275
Balance at December 27, 2008 ............... $(340,925) $ 73,187 $(267,738)
Share-Based Payments
The Company recognizes compensation expense from all share-based payment transactions
with employees in the consolidated financial statements at fair value.
The Company sponsors several share-based compensation plans, which are described below.
Compensation costs related to the Company’s share-based plans were $0.3 million, $26.9 million
81