OfficeMax 2009 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2009 OfficeMax annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

13. Shareholders’ Equity
Preferred Stock
At December 26, 2009, 810,654 shares of 7.375% Series D ESOP convertible preferred stock
were outstanding, compared with 945,899 shares outstanding at December 27, 2008 and
1,110,867 shares outstanding at December 29, 2007. The Series D ESOP convertible preferred
stock is shown in the Consolidated Balance Sheets at its liquidation preference of $45 per share. All
shares outstanding have been allocated to participants in the plan. Each ESOP preferred share is
entitled to one vote, bears an annual cumulative dividend of $3.31875 and is convertible at any time
by the trustee to 0.82168 share of common stock. The ESOP preferred shares may not be
redeemed for less than the liquidation preference.
Common Stock
The Company is authorized to issue 200,000,000 shares of common stock, of which
84,624,726 shares were issued and outstanding at December 26, 2009. Of the unissued shares,
6,096,695 shares were reserved for the following purposes:
Conversion or redemption of Series D ESOP preferred stock .................... 666,098
Issuance under OfficeMax Incentive and Performance Plan ..................... 4,399,456
Issuance under Key Executive Stock Option Plan ............................ 948,142
Issuance under Director Stock Compensation Plan ........................... 7,475
Issuance under Director Stock Option Plan ................................. 13,000
Issuance under Key Executive Deferred Compensation Plan ..................... 5,337
Issuance under 2003 Director Stock Compensation Plan ....................... 57,187
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) includes the following:
Minimum Foreign Accumulated
Pension Currency Other
Liability Translation Comprehensive
Adjustment Adjustment Income (Loss)
(thousands)
Balance at December 29, 2007 ............... $(135,207) $156,945 $ 21,738
Current-period changes, before taxes ........... (336,993) (83,758) (420,751)
Income taxes ............................ 131,275 — 131,275
Balance at December 27, 2008 ............... (340,925) 73,187 (267,738)
Current-period changes, before taxes ........... 144,206 47,477 191,683
Income taxes ............................ (56,460) — (56,460)
Balance at December 26, 2009 ............... $(253,179) $120,664 $(132,515)
Share-Based Payments
The Company sponsors several share-based compensation plans, which are described below.
The Company recognizes compensation expense from all share-based payment transactions with
employees in the consolidated financial statements at fair value. Compensation costs related to the
Company’s share-based plans were $8.5 million, $0.3 million and $26.9 million for 2009, 2008 and
2007, respectively. Compensation expense is generally recognized on a straight-line basis over the
vesting period of grants. The total income tax benefit recognized in the income statement for share-
81