OfficeMax 2011 Annual Report Download - page 34

fiscal year 2010 ended on December 25, 2010, and fiscal year 2009 ended on December 26, 2009. Fiscal year
2011 included 53 weeks for our U.S. businesses. Fiscal years 2010 and 2009 included 52 weeks for our U.S.
businesses.
Segments
The Company manages its business using three reportable segments: OfficeMax, Contract (“Contract
segment” or “Contract”); OfficeMax, Retail (“Retail segment” or “Retail”); and Corporate and Other. The
Contract segment markets and sells office supplies and paper, technology products and solutions, office furniture
and print and document services directly to large corporate and government offices, as well as to small and
medium-sized offices through field salespeople, outbound telesales, catalogs, the Internet and, primarily in
foreign markets, through office products stores. The Retail segment markets and sells office supplies and paper,
print and document services, technology products and solutions and office furniture to small and medium-sized
businesses and consumers through a network of retail stores. Management reviews the performance of the
Company based on these segments. We present information pertaining to each of our segments and the
geographic areas in which they operate in Note 14, “Segment Information,” of the Notes to Consolidated
Financial Statements in “Item 8. Financial Statements and Supplementary Data” of this Form 10-K.
Contract
We distribute a broad line of items for the office, including office supplies and paper, technology products
and solutions, office furniture and print and document services through our Contract segment. Contract sells
directly to large corporate and government offices, as well as to small and medium-sized offices in the United
States, Canada, Australia, New Zealand and Puerto Rico. This segment markets and sells through field
salespeople, outbound telesales, catalogs, the Internet and, primarily in foreign markets, through office products
stores. The majority of the products sold by this segment are purchased from outside manufacturers or from
industry wholesalers. We also source substantially all of our private label products direct from manufacturers.
We purchase office papers primarily from Boise White Paper, L.L.C., under a paper supply contract entered into
on June 25, 2011. (See Note 15, “Commitments and Guarantees,” of the Notes to Consolidated Financial
Statements in “Item 8. Financial Statements and Supplementary Data” of this Form 10-K for additional
information related to the paper supply contract.)
As of the end of the year, Contract operated 38 distribution centers in the U.S., Puerto Rico, Canada,
Australia and New Zealand as well as four customer service and outbound telesales centers in the U.S. Contract
also operated 47 office products stores in Canada, Hawaii, Australia and New Zealand.
Contract sales were $3.6 billion for 2011 and 2010 and $3.7 billion for 2009.
Retail
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. Our retail office products stores feature OfficeMax ImPress,
an in-store module devoted to print-for-pay and related services. Our Retail segment has operations in the United
States, Puerto Rico and the U.S. Virgin Islands. Our Retail segment also operates office products stores in
Mexico through a 51%-owned joint venture. The majority of the products sold by this segment are purchased
from outside manufacturers or from industry wholesalers. We also source substantially all of our private label
products direct from manufacturers. As mentioned above, we purchase office papers primarily from Boise White
Paper, L.L.C., under a paper supply contract entered into on June 25, 2011. (See Note 15, “Commitments and
Guarantees,” of the Notes to Consolidated Financial Statements in “Item 8. Financial Statements and
Supplementary Data” of this Form 10-K for additional information related to the paper supply contract.)
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