OfficeMax 2010 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2010 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 120

  • 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
  • 117
  • 118
  • 119
  • 120

Facility closure reserve account activity during 2010, 2009 and 2008 was as follows:
Total
(thousands)
Balance at December 29, 2007 ......................................................... $77,062
Charges to income .............................................................. 11,853
Changes to estimated costs included in income ........................................ (7,396)
Cash payments ................................................................. (35,229)
Accretion ..................................................................... 2,643
Balance at December 27, 2008 ......................................................... $48,933
Charges related to stores closed in 2009 ............................................. 31,208
Transfer of deferred rent balance ................................................... 3,214
Changes to estimated costs included in income ........................................ 9
Cash payments ................................................................. (24,594)
Accretion ..................................................................... 2,802
Balance at December 26, 2009 ......................................................... $61,572
Charges related to stores closed in 2010 ............................................. 13,069
Transfer of deferred rent and other balances .......................................... 5,985
Changes to estimated costs included in income ........................................ (1,358)
Cash payments ................................................................. (22,260)
Accretion ..................................................................... 4,665
Balance at December 25, 2010 ......................................................... $61,673
Reserve balances were classified in the Consolidated Balance Sheets as follows:
December 25,
2010
December 26,
2009
(thousands)
Other accrued liabilities ................................................. $ 16,651 $ 16,775
Other long-term liabilities ............................................... 45,022 44,797
Total ................................................................ $ 61,673 $ 61,572
At December 25, 2010, the lease termination component of the facilities closure reserve consisted of the
following:
Total
(thousands)
Estimated future lease obligations ...................................................... $131,880
Less: anticipated sublease income ...................................................... (70,207)
Total ............................................................................. $ 61,673
In addition, we were the lessee of a legacy, building materials manufacturing facility near Elma,
Washington until the end of 2010. During 2006, we ceased operations at the facility, fully impaired the assets and
recorded a reserve for the related lease payments and other contract termination and closure costs. This reserve
balance was not included in the facilities closure reserve described above. During 2010, we sold the facility’s
equipment and terminated the lease. As a result, we recorded income of approximately $9.4 million to adjust the
associated reserve. This income is reported in other operating, net in our Consolidated Statements of Operations.
51