OfficeMax 2009 Annual Report Download - page 86

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based compensation arrangements was $3.3 million, $0.1 million and $10.5 million for 2009, 2008
and 2007, respectively.
2003 Director Stock Compensation Plan and OfficeMax Incentive and Performance Plan
In February 2003, the Company’s Board of Directors adopted the 2003 Director Stock
Compensation Plan (the ‘‘2003 DSCP’’) and the 2003 OfficeMax Incentive and Performance Plan
(the ‘‘2003 Plan’’ formerly named the 2003 Boise Incentive and Performance Plan), which were
approved by shareholders in April 2003. At December 26, 2009, a total of 57,187 shares of
common stock were reserved for issuance under the 2003 DSCP, and a total of 4,399,456 shares of
common stock were reserved for issuance under the 2003 Plan.
The 2003 Plan was effective January 1, 2003, and replaced the Key Executive Performance
Plan for Executive Officers, Key Executive Performance Plan for Key Executives/Key Managers, 1984
Key Executive Stock Option Plan (‘‘KESOP’’), Key Executive Performance Unit Plan (‘‘KEPUP’’) and
Director Stock Option Plan (‘‘DSOP’’). No further grants or awards have been made under the Key
Executive Performance Plans, KESOP, KEPUP, or DSOP since 2003.
The Company’s executive officers, key employees and nonemployee directors are eligible to
receive awards under the 2003 Plan at the discretion of the Executive Compensation Committee of
the Board of Directors. Eight types of awards may be granted under the 2003 Plan, including stock
options, stock appreciation rights, restricted stock, restricted stock units, performance units,
performance shares, annual incentive awards and stock bonus awards.
Restricted Stock and Restricted Stock Units
Restricted stock is restricted until it vests and cannot be sold by the recipient until its
restrictions have lapsed. Each restricted stock unit (‘‘RSU’’) is convertible into one share of
common stock after its restrictions have lapsed. No entries are made in the financial statements on
the grant date of restricted stock and RSU awards. The Company recognizes compensation
expense related to these awards over the vesting periods based on the closing prices of the
Company’s common stock on the grant dates. If these awards contain performance criteria the
grant date fair value is set assuming performance at target, and management periodically reviews
actual performance against the criteria and adjusts compensation expense accordingly. In 2009,
2008 and 2007, the Company recognized $6.1 million, $0.1 million and $26.4 million, respectively,
of pre-tax compensation expense and additional paid-in capital related to restricted stock and RSU
awards.
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