OfficeMax 2011 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2011 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 136

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

Availability under the Company’s credit agreements at the end of fiscal year 2011 was as follows:
2011
North
American
Agreement
Australia/
New Zealand
Agreement Total
(millions)
Maximum aggregate available borrowing amount ...................... $632.2 $52.9 $685.1
Less: Stand-by letters of credit ...................................... (51.9) — (51.9)
Amount available for borrowing at fiscal year-end ...................... $580.3 $52.9 $633.2
There were no borrowings under the Company’s credit agreements in 2011 or 2010.
Other
At the end of fiscal year 2011, Grupo OfficeMax, our 51%-owned joint venture in Mexico, had total
outstanding borrowings of $8.5 million. This included $4.9 million outstanding under a 60-month installment
note due in the first quarter of 2014 and $3.6 million outstanding under a 54-month installment note due in the
third quarter of 2014. Payments on the installment loans are made monthly. Recourse on the Grupo OfficeMax
loans is limited to Grupo OfficeMax. The installment loan maturing in the third quarter of 2014 is secured by
certain owned property of Grupo OfficeMax. All other Grupo OfficeMax loan facilities are unsecured.
Cash Paid for Interest
Cash payments for interest, net of interest capitalized and including interest payments related to the timber
securitization notes, were $69.8 million in 2011, $68.9 million in 2010 and $71.8 million in 2009. Cash interest
payments made on the Securitization Notes are completely offset by interest payments received on the
Installment Notes.
11. Financial Instruments, Derivatives and Hedging Activities
Fair Value of Financial Instruments
The carrying amounts of cash and cash equivalents, trade accounts receivable, other assets (non-
derivatives), short-term borrowings and trade accounts payable approximate fair value because of the short
maturity of these instruments. The following table presents the carrying amounts and estimated fair values of the
Company’s other financial instruments at December 31, 2011 and December 25, 2010. The fair value of a
financial instrument is the amount at which the instrument could be exchanged in a current transaction between
willing parties.
December 31, 2011
Fair Value Carrying
AmountLevel 1 Level 2 Level 3 Total
(thousands)
Financial assets:
Timber notes receivable
Wachovia ............................. $ — $943,706 $ — $943,706 $817,500
Lehman ............................... $ — $ — $81,750 $ 81,750 $ 81,750
Financial liabilities:
Recourse debt .............................. $62,293 $178,461 $ — $240,754 $268,190
Non-recourse debt
Wachovia ............................. $ — $858,779 $ — $858,779 $735,000
Lehman ............................... $ — $ — $81,750 $ 81,750 $735,000
65