OfficeMax 2009 Annual Report Download - page 84

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The following is a reconciliation of the change in fair value of pension plan assets calculated
based on level 3 inputs:
Amount
(thousands)
Balance at December 27, 2008 ....................................... $4,206
Benefit payments and administrative expenses ............................ (10)
Investment income and net appreciation in investments ...................... 808
Balance at December 26, 2009 ....................................... $5,004
Purchases and sales of securities are recorded on a trade-date basis. Interest income is
recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
Cash Flows
Pension plan contributions include required statutory minimum amounts and, in some years,
additional discretionary amounts. During 2009, 2008 and 2007, the Company made cash
contributions to its pension plans totaling $6.8 million, $13.1 million and $19.1 million, respectively.
In 2009, we also made a voluntary contribution of OfficeMax common stock to our qualified pension
plans which, based on actuarial estimates, is expected to reduce our pension contributions over the
next five years by approximately $100 million. Pension contributions for 2010 are expected to be
approximately $4 million. The Company may elect at any time to make additional voluntary
contributions.
Qualified pension benefit payments are paid from the assets held in the plan trust, while
nonqualified pension and other benefit payments are paid by the Company. Future benefit
payments by year are estimated to be as follows:
Pension Other
Benefits Benefits
(thousands)
2010 ..................................................... $ 98,742 $1,526
2011 ..................................................... 98,260 1,441
2012 ..................................................... 97,937 1,371
2013 ..................................................... 97,258 1,308
2014 ..................................................... 96,772 1,268
Years 2015-2019 ............................................ 472,098 6,081
Defined Contribution Plans
The Company also sponsors defined contribution plans for most of its employees. Through
2004, the Company sponsored four contributory defined contribution savings plans for most of its
salaried and hourly employees: a plan for OfficeMax, Retail employees, a plan for non-Retail
salaried employees, a plan for union hourly employees, and a plan for non-Retail, nonunion hourly
employees. The plan for non-Retail salaried employees included an employee stock ownership plan
(‘‘ESOP’’) component and the Company’s Series D ESOP convertible preferred stock were fully
allocated to eligible participants in prior years. Total Company contributions to the defined
contribution savings plans were $1.3 million in 2009, $8.0 million in 2008 and $8.1 million in 2007.
80