OfficeMax 2009 Annual Report Download - page 92

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16. Legal Proceedings and Contingencies
OfficeMax Incorporated and certain of its subsidiaries are named as defendants in a number of
lawsuits, claims and proceedings arising out of the operation of the paper and forest products
assets prior to the closing of the 2004 sale transaction, for which OfficeMax agreed to retain
responsibility. Also, as part of the sale, we agreed to retain responsibility for all pending or
threatened proceedings and future proceedings alleging asbestos-related injuries arising out of the
operation of the paper and forest products assets prior to the closing of the sale. We do not believe
any of these retained proceedings are material to our business.
We have been notified that we are a ‘‘potentially responsible party’’ under the Comprehensive
Environmental Response Compensation and Liability Act (‘‘CERCLA’’) or similar federal and state
laws, or have received a claim from a private party, with respect to certain sites where hazardous
substances or other contaminants are or may be located. These sites relate to operations either no
longer owned by the Company or unrelated to its ongoing operations. For sites where a range of
potential liability can be determined, we have established appropriate reserves. We cannot predict
with certainty the total response and remedial costs, our share of the total costs, the extent to
which contributions will be available from other parties or the amount of time necessary to complete
the cleanups. Based on our investigations; our experience with respect to cleanup of hazardous
substances; the fact that expenditures will, in many cases, be incurred over extended periods of
time; and in some cases, the number of solvent potentially responsible parties, we do not believe
that the known actual and potential response costs will, in the aggregate, materially affect our
financial position, results of operations or cash flows.
Over the past several years and continuing in 2009, we have been named a defendant in a
number of cases where the plaintiffs allege asbestos-related injuries from exposure to asbestos
products or exposure to asbestos while working at job sites. The claims vary widely and often are
not specific about the plaintiffs’ contacts with the Company. None of the claimants seeks damages
from us individually, and we are generally one of numerous defendants. Many of the cases filed
against us have been voluntarily dismissed, although we have settled some cases. The settlements
we have paid have been covered mostly by insurance, and we believe any future settlements or
judgments in these cases would be similarly covered. To date, no asbestos case against us has
gone to trial, and the nature of these cases makes any prediction as to the outcome of pending
litigation inherently subjective. At this time, however, we believe our involvement in asbestos
litigation is not material to either our financial position or our results of operations.
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