OfficeMax 2009 Annual Report Download - page 29

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$1.3 million of tax benefit, as a result of a reduction in the valuation allowance. Income taxes for all
periods were affected by the impact of state income taxes, non-deductible expenses and the mix of
domestic and foreign sources of income.
As a result of the foregoing factors, we reported a net loss attributable to OfficeMax and
noncontrolling interest of $1,665.9 million for 2008. After adjusting for joint venture earnings
attributable to noncontrolling interest and preferred dividends, we reported a loss available to
OfficeMax common shareholders of $1,661.6 or $(21.90) per diluted share, for 2008. Excluding the
effects of the significant items discussed above, adjusted net income available to OfficeMax
common shareholders was $100.1 million or $1.30 per diluted share for 2008.
Segment Discussion
We report our results using three reportable segments: OfficeMax, Contract; OfficeMax, Retail;
and Corporate and Other.
OfficeMax, Contract distributes a broad line of items for the office, including office supplies and
paper, technology products and solutions, office furniture, and print and document services.
OfficeMax, Contract sells directly to large corporate and government offices, as well as to small and
medium-sized offices in the United States, Canada, Australia and New Zealand. This segment
markets and sells through field salespeople, outbound telesales, catalogs, the Internet and in some
markets, including Canada, Australia and New Zealand, through office products stores.
OfficeMax, Retail is a retail distributor of office supplies and paper, print and document
services, technology products and solutions and office furniture. In addition, this segment contracts
with large national retail chains to supply office and school supplies to be sold in their stores. Our
retail office supply stores feature OfficeMax ImPress, an in-store module devoted to print-for-pay
and related services. Our Retail segment has operations in the United States, Puerto Rico and the
U.S. Virgin Islands. Our Retail segment also operates office products stores in Mexico through a
51%-owned joint venture.
Corporate and Other includes support staff services and certain other legacy expenses as well
as the related assets and liabilities. The income and expense related to certain assets and liabilities
that are reported in the Corporate and Other segment have been allocated to the Contract and
Retail segments.
Management evaluates the segments’ performances based on operating income (loss) after
eliminating the effect of certain operating matters such as severances, facility closures, and asset
impairments, that are not indicative of our core operations (‘‘segment income (loss)’’.)
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