OfficeMax 2009 Annual Report Download - page 74

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there was no impairment of this investment. The Company will continue to monitor and assess this
investment.
The non-voting securities of Boise Cascade Holdings, L.L.C. accrue dividends daily at the rate
of 8% per annum on the liquidation value plus accumulated dividends. Dividends accumulate
semiannually to the extent not paid in cash on the last day of June and December. The Company
recognized dividend income on this investment of $6.7 million in 2009, $6.2 million in 2008 and
$6.1 million in 2007. These amounts were recorded as reductions of general and administrative
expenses in the Consolidated Statements of Operations. The dividend receivable was $22.9 million
at December 26, 2009, and was recorded in other non-current assets in the Consolidated Balance
Sheets.
The Company receives distributions on the Boise Investment for the income tax liability
associated with its share of allocated earnings. During 2009 and 2008, the Company received
tax-related distributions of $2.6 million and $23.0 million, respectively. The larger distribution in 2008
reflected the gain on the sale by Boise Cascade, L.L.C. of a majority interest in its paper and
packaging and newsprint businesses. The distributions are reported as other income (expense), net
in the Consolidated Statements of Operations.
10. Debt
The Company’s debt, almost all of which is unsecured, consists of both recourse and
non-recourse obligations as follows at year-end:
2009 2008
(thousands)
Recourse debt:
9.45% debentures, paid in 2009 ............................. $ — $ 35,707
6.50% notes, due in 2010 .................................. 13,680 13,680
7.35% debentures, due in 2016 .............................. 17,967 17,967
Medium-term notes, Series A, with interest rates averaging 7.9% and
7.8%, due in varying amounts periodically through 2013 .......... 36,900 51,900
Revenue bonds, with interest rates averaging 6.4% and 6.4%, due in
varying amounts periodically through 2029 .................... 189,930 189,930
American & Foreign Power Company Inc. 5% debentures, due in 2030 . 18,526 18,526
Grupo OfficeMax installment loans, due in monthly installments through
2014 ................................................ 16,085 11,202
Other indebtedness, with interest rates averaging 7.0% and 10.9%, due
in varying amounts annually through 2016 .................... 4,528 16,058
297,616 354,970
Less unamortized discount ................................. 564 596
Less current portion ...................................... 22,430 64,452
$ 274,622 $ 289,922
Non-recourse debt:
5.42% securitized timber notes, due in 2019 ..................... 735,000 735,000
5.54% securitized timber notes, due in 2019 ..................... 735,000 735,000
$1,470,000 $1,470,000
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