OfficeMax 2009 Annual Report Download - page 23

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items and operating items that are not indicative of our core operating activities such as severance,
facility closure, and asset impairments. We believe our presentation of financial measures before, or
excluding, these items, which are non-GAAP measures, enhances our investors’ overall
understanding of our recurring operational performance and provides useful information to both
investors and management to evaluate the ongoing operations and prospects of OfficeMax by
providing better comparisons. Whenever we use non-GAAP financial measures, we designate these
measures as ‘‘adjusted’’ and provide a reconciliation of the non-GAAP financial measures to the
most closely applicable GAAP financial measure. Investors are encouraged to review the related
GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measure. In the following tables, we reconcile our non-GAAP
financial measures to our reported GAAP financial results for both 2009 and 2008.
Although we believe the non-GAAP financial measures enhance an investor’s understanding of
our performance, our management does not itself, nor does it suggest that investors should,
consider such non-GAAP financial measures in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. The non-GAAP financial measures we use may not
be consistent with the presentation of similar companies in our industry. However, we present such
non-GAAP financial measures in reporting our financial results to provide investors with an
additional tool to evaluate our operating results in a manner that focuses on what we believe to be
our ongoing business operations.
OFFICEMAX INCORPORATED AND SUBSIDIARIES
IMPACT OF SPECIAL ITEMS ON INCOME
NON-GAAP RECONCILIATION FOR 2009
Net income (loss)
available to
OfficeMax Diluted income
Operating common (loss) per
income (loss) shareholders common share
(millions, except per-share amounts)
As reported .............................. $(4.0) $ (2.2) $(0.03)
Store asset impairment charge ................ 17.6 10.0 0.12
Store closure and severance charges ........... 49.3 30.0 0.39
Interest income from a legacy tax escrow ......... — (2.7) (0.04)
Boise Cascade Holdings, L.L.C. distribution ....... — (1.6) (0.02)
Release of income tax reserve ................. — (14.9) (0.18)
As adjusted .............................. $62.9 $ 18.6 $ 0.24
OFFICEMAX INCORPORATED AND SUBSIDIARIES
IMPACT OF SPECIAL ITEMS ON INCOME
NON-GAAP RECONCILIATION FOR 2008
Net income (loss)
available to
OfficeMax Diluted income
Operating common (loss) per
income (loss) shareholders common share
(millions, except per-share amounts)
As reported .............................. $(1,936.2) $ (1,661.6) $ (21.90)
Goodwill and other asset impairment charge ...... 1,364.4 1,294.7 17.05
Timber note impairment charge ................ 735.8 462.0 6.08
Total impairment charges ................... 2,100.2 1,756.7 23.13
Store closure and severance charges ........... 27.9 17.5 0.23
Boise Cascade Holdings, L.L.C. distribution ....... — (12.5) (0.16)
As adjusted .............................. $ 191.9 $ 100.1 $ 1.30
19