OfficeMax 2009 Annual Report Download - page 73

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such as maintenance and insurance. Rental payments include minimum rentals plus, in some
cases, contingent rentals based on a percentage of sales above specified minimums. Rental
expense for operating leases included the following components:
2009 2008 2007
(thousands)
Minimum rentals ................................... $355,662 $ 348,629 $ 331,066
Contingent rentals ................................. 1,013 886 908
Sublease rentals ................................... (671) (1,013) (1,515)
$356,004 $348,502 $330,459
For operating leases with remaining terms of more than one year, the minimum lease payment
requirements are:
(thousands)
2010 ........................................................... $ 363,443
2011 ........................................................... 320,539
2012 ........................................................... 265,341
2013 ........................................................... 213,460
2014 ........................................................... 166,223
Thereafter ....................................................... 403,086
Total ........................................................... $1,732,092
These minimum lease payments do not include contingent rental payments that may be due
based on a percentage of sales in excess of stipulated amounts. These future minimum lease
payment requirements have not been reduced by $33.6 million of minimum sublease rentals due in
the future under noncancelable subleases. These sublease rentals include amounts related to
closed stores and other facilities that are accounted for in the integration activities and facility
closures reserve.
The Company capitalizes lease obligations for which it assumes substantially all property rights
and risks of ownership. The Company did not have any material capital leases during any of the
periods presented.
9. Investments in Affiliates
In connection with the sale of the paper, forest products and timberland assets in 2004, the
Company invested $175 million in the Boise Investment. A portion of the securities received in
exchange for the Company’s investment carry no voting rights. This investment is accounted for
under the cost method as Boise Cascade Holdings, L.L.C. does not maintain separate ownership
accounts for its affiliate’s members, and the Company does not have the ability to significantly
influence its operating and financial policies. This investment is included in investments in affiliates
in the Consolidated Balance Sheets.
The Boise Investment represented a continuing involvement in the operations of the business
we sold in 2004. 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.
Throughout the year, we review the carrying value of this investment whenever events or
circumstances indicate that its fair value may be less than its carrying amount. At year-end, we
reviewed certain financial information of Boise Cascade Holdings, L.L.C., including estimated future
cash flows as well as data regarding the valuation of comparable companies, and determined that
69