OfficeMax 2010 Annual Report Download - page 96

Selected components of income (loss) Selected balance sheet items
Earnings
from affiliates
Depreciation
and
amortization
Capital
expenditures Assets
Investments
in affiliates
(millions)
Year ended December 25, 2010
Contract .......................... $ — $ 51.6 $ 61.2 $1,039.8 $ —
Retail ............................ — 49.3 32.3 1,209.6 —
Corporate and Other ................ 7.3 — — 1,829.5 175.0
Total ........................ $ 7.3 $ 100.9 $ 93.5 $4,078.9 $ 175.0
Year ended December 26, 2009
Contract .......................... $ — $ 57.5 $ 18.0 $1,035.2 $ —
Retail ............................ — 58.9 20.3 1,239.6 —
Corporate and Other ................ 6.7 — — 1,794.7 175.0
Total ........................ $ 6.7 $ 116.4 $ 38.3 $4,069.5 $ 175.0
Year ended December 27, 2008
Contract .......................... $ — $ 65.6 $ 34.2 $ 895.4 $ —
Retail ............................ — 77.2 109.8 1,504.8 —
Corporate and Other ................ 6.2 0.1 — 1,773.4 175.0
Total ........................ $ 6.2 $ 142.9 $ 144.0 $4,173.6 $ 175.0
15. Commitments and Guarantees
Commitments
The Company has commitments for minimum lease payments due under noncancelable leases and for the
repayment of outstanding long-term debt. In addition, the Company has purchase obligations for goods and
services and capital expenditures that were entered into in the normal course of business. As previously
disclosed, we have liabilities associated with retirement and benefit plans.
In connection with the sale of our paper, forest products and timberland assets in 2004, the Company
entered into a paper supply contract with a former affiliate of Boise Cascade, L.L.C., Boise White Paper, L.L.C.,
now owned by Boise Inc., under which we are obligated to purchase our North American requirements for
cut-size office paper, to the extent Boise White Paper, L.L.C. or its successor, produces such paper, until
December 2012, at prices approximating market levels. The Company’s purchase obligations under the
agreement will phase-out over a four-year period beginning one year after the delivery of notice of termination,
but not prior to December 31, 2012. Purchases under the agreement were $615.6 million, $633.9 million and
$668.3 million for 2010, 2009 and 2008, respectively.
In accordance with an amended and restated joint venture agreement, the minority owner of Grupo
OfficeMax, our joint-venture in Mexico, can elect to require OfficeMax to purchase the minority owner’s 49%
interest in the joint venture if certain earnings targets are achieved. Earnings targets are calculated quarterly on a
rolling four-quarter basis. Accordingly, the targets may be achieved in one quarter but not in the next. If the
earnings targets are achieved and the minority owner elects to require OfficeMax to purchase the minority
owner’s interest, the purchase price is based on the joint venture’s earnings and the current market multiples of
similar companies. At the end of 2010, Grupo OfficeMax met the earnings targets and the estimated purchase
price of the minority owner’s interest was $48.8 million. As the estimated purchase price was greater at the end
of 2010 than the carrying value of the noncontrolling interest, the Company recorded an adjustment to state the
noncontrolling interest at the estimated purchase price, and, as the estimated purchase price approximates fair
value, the offset was recorded to additional paid-in capital.
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