OfficeMax 2010 Annual Report Download - page 50

Through December 25, 2010, we have received all payments due under the Installment Note guaranteed by
Wachovia (the “Wachovia Guaranteed Installment Notes”), which have consisted only of interest due on the
notes, and made all payments due on the related Securitization Notes guaranteed by Wachovia, again consisting
only of interest due. As all amounts due on the Wachovia Guaranteed Installment Notes are current, and we have
no reason to believe that we will not collect all amounts due according to the contractual terms of the Wachovia
Guaranteed Installment Notes, the notes are stated in our Consolidated Balance Sheet at their original principal
amount of $817.5 million. Wachovia was acquired by Wells Fargo & Company in a stock transaction in 2008.
An additional adverse impact on our financial results presentation could occur if Wells Fargo became unable to
perform its obligations under the Wachovia Guaranteed Installment Notes, thereby resulting in a significant
impairment impact.
The pledged Installment Notes and Securitization Notes were scheduled to mature in 2020 and 2019,
respectively. The Securitization Notes have an initial term that is approximately three months shorter than the
Installment Notes. We expect that if the Securitization Notes are still outstanding in 2019, we will refinance them
with a short-term borrowing to bridge the period from initial maturity of the Securitization Notes to the maturity
of the Installment Notes.
Other
We made capital contributions to Grupo OfficeMax, commensurate with our ownership percentage in the
joint venture of $6.0 million and $6.7 million in 2009 and 2008, respectively. We made no capital contributions
to Grupo OfficeMax during 2010.
Contractual Obligations
In the following table, we set forth our contractual obligations as of December 25, 2010. Some of the figures
included in this table are based on management’s estimates and assumptions about these obligations, including
their duration, the possibility of renewal, anticipated actions by third parties and other factors. Because these
estimates and assumptions are necessarily subjective, the amounts we will actually pay in future periods may
vary from those reflected in the table.
Payments Due by Period
2011 2012-2013 2014-2015 Thereafter Total
(millions)
Recourse debt .................................... $ 4.6 $ 44.9 $ 1.9 $ 224.1 $ 275.5
Interest payments on recourse debt ................... 18.2 31.0 28.7 122.3 200.2
Non-recourse debt ................................ — — — 1,470.0 1,470.0
Interest payments on non-recourse debt ............... 39.8 79.7 79.7 152.6 351.8
Operating leases .................................. 356.7 552.2 346.8 291.5 1,547.2
Purchase obligations .............................. 30.9 6.8 0.9 — 38.6
Pension obligations (estimated payments) .............. 6.7 72.3 77.2 35.8 192.0
Total ....................................... $456.9 $786.9 $535.2 $2,296.3 $4,075.3
Debt includes amounts owed on our note agreements, revenue bonds and credit agreements assuming the
debt is held to maturity. The amounts above include both current and non-current liabilities. Not included in the
table above are contingent payments for uncertain tax positions of $20.9 million. These amounts are not included
due to our inability to predict the timing of settlement of these amounts. The “Expected Payments” table under
the caption “Financial Instruments” in this Management’s Discussion and Analysis of Financial Condition and
Results of Operations presents principal cash flows and related weighted average interest rates by expected
maturity dates. For more information, see Note 10, “Debt,” of the Notes to Consolidated Financial Statements in
“Item 8. Financial Statements and Supplementary Data” in this form 10-K.
30