OfficeMax 2009 Annual Report Download - page 40

Contractual Obligations
In the following table, we set forth our contractual obligations as of December 26, 2009. Some
of the figures included in this table are based on management’s estimates and assumptions about
these obligations, including their duration, the possibility of renewal, anticipated actions by third
parties and other factors. Because these estimates and assumptions are necessarily subjective, the
amounts we will actually pay in future periods may vary from those reflected in the table.
Payments Due by Period
2010 2011-2012 2013-2014 Thereafter Total
(millions)
Debt ......................... $ 22.4 $ 43.6 $ 7.4 $ 224.2 $ 297.6
Timber securitization notes ......... — — — 1,470.0 1,470.0
Operating leases ................. 363.4 585.9 379.7 403.1 1,732.1
Purchase obligations .............. 16.8 8.0 1.4 0.5 26.7
Pension obligations (estimated
payments) .................... 3.8 63.1 82.4 50.1 199.4
$406.4 $700.6 $470.9 $2,147.9 $3,725.8
Debt includes amounts owed on our note agreements, revenue bonds and credit agreements
assuming the debt is held to maturity. The amounts above include both current and non-current
liabilities. Obligations related to interest on debt are not included in the table above because the
timing and amount of any required payments cannot be reasonably estimated. However, the table
under the heading ‘‘Financial Instruments’’ in this Management’s Discussion and Analysis of
Financial Condition and Results of Operations presents principal cash flows and related weighted
average interest rates by expected maturity dates. For obligations with variable interest rates, the
table sets forth payout amounts based on rates as of December 26, 2009 and does not attempt to
project future rates. Not included in the table above are contingent payments for uncertain tax
positions of $8.2 million. These amounts are not included due to our inability to predict the timing
of settlement of these amounts.
There is no recourse against OfficeMax on the securitized timber notes payable as recourse is
limited to proceeds from the applicable pledged installment notes receivable and underlying
guarantees. The debt remains outstanding until it is legally extinguished, which will be when the
Installment Note and guaranty are transferred to and accepted by the securitized note holders.
We enter into operating leases in the normal course of business. We lease our retail store
space as well as certain other property and equipment under operating leases. Some of our retail
store leases require percentage rentals on sales above specified minimums and contain escalation
clauses. These minimum lease payments do not include contingent rental expense. Some lease
agreements provide us with the option to renew the lease or purchase the leased property. Our
future operating lease obligations would change if we exercised these renewal options and if we
entered into additional operating lease agreements. For more information, see Note 8, ‘‘Leases’’, of
the Notes to Consolidated Financial Statements in ‘‘Item 8. Financial Statements and
Supplementary Data’’ in this Form 10-K. Lease obligations for closed facilities are included in
operating leases and a liability equal to the fair value of these obligations is included in the
Company’s Consolidated Balance Sheets. For more information, see Note 2, ‘‘Facility Closure
Reserves’’ of the Notes to Consolidated Financial Statements in ‘‘Item 8. Financial Statements and
Supplementary Data’’ in this Form 10-K.
Our Consolidated Balance Sheet as of December 26, 2009 includes $277.2 million of liabilities
associated with our retirement and benefit and other compensation plans and $245.0 million of
other long-term liabilities. Certain of these amounts have been excluded from the above table as
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