OfficeMax 2009 Annual Report Download - page 89

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14. Segment Information
The Company manages its business using three reportable segments: OfficeMax, Contract;
OfficeMax, Retail; and Corporate and Other. Management reviews the performance of the Company
based on these segments.
OfficeMax, Contract distributes a broad line of items for the office, including office supplies and
paper, technology products and solutions, print and document services and office furniture.
OfficeMax, Contract sells directly to large corporate and government offices, as well as to small and
medium-sized offices in the United States, Canada, Australia and New Zealand. This segment
markets and sells through field salespeople, outbound telesales, catalogs, the Internet and in some
markets, including Canada, Australia and New Zealand, through office products stores. Substantially
all products sold by OfficeMax, Contract are purchased from third-party manufacturers or industry
wholesalers, except office papers. OfficeMax, Contract purchases office papers primarily from Boise
White Paper, L.L.C., under a 12-year paper supply contract.
OfficeMax, Retail is a retail distributor of office supplies and paper, print and document
services, technology products and solutions and office furniture. In addition, this segment contracts
with large national retail chains to supply office and school supplies to be sold in their stores.
OfficeMax, Retail office supply stores feature OfficeMax ImPress, an in-store module devoted to
print-for-pay and related services. OfficeMax, Retail has operations in the United States, Puerto Rico
and the U.S. Virgin Islands. The retail segment also operates office products stores in Mexico
through a 51%-owned joint venture. Substantially all products sold by OfficeMax, Retail are
purchased from third-party manufacturers or industry wholesalers, except office papers. OfficeMax,
Retail purchases office papers primarily from Boise White Paper, L.L.C., under the paper supply
contract described above.
Corporate and Other includes corporate support staff services and certain other legacy
expenses as well as the related assets and liabilities. The income and expense related to certain
assets and liabilities that are reported in the Corporate and Other segment have been allocated to
the Contract and Retail segments.
In the current year, management evaluated the segments’ performances based on operating
income (loss) after eliminating the effect of certain operating matters such as severances, facility
closures, and asset impairments, that are not indicative of our core operations (‘‘segment income
(loss)’’.)
The following table summarizes by geography, net sales for fiscal years 2009, 2008 and 2007,
and non-current assets at each year-end:
2009 2008 2007
(millions)
Net sales
United States ..................................... $5,952.8 $ 6,728.5 $ 7,548.9
Foreign ......................................... 1,259.3 1,538.5 1,533.1
$7,212.1 $8,267.0 $9,082.0
Non-current assets
United States ..................................... $1,909.8 $ 2,187.3 $ 3,662.8
Foreign ......................................... 138.4 131.3 416.3
$2,048.2 $2,318.6 $4,079.1
There is no single customer that accounts for 10% or more of consolidated trade sales.
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