OfficeMax 2012 Annual Report Download - page 95

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Facility closure reserve account activity during 2012, 2011 and 2010 was as follows:
Total
(thousands)
Balance at December 26, 2009 ......................................................... $ 61,572
Charges related to stores closed in 2010 ............................................. 13,069
Transfer of deferred rent balance ................................................... 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
Charges related to stores closed in 2011 ............................................. 5,406
Transfer of deferred rent and other balances .......................................... 928
Changes to estimated costs included in income ........................................ 262
Cash payments ................................................................. (22,311)
Accretion ..................................................................... 3,117
Balance at December 31, 2011 ......................................................... $ 49,075
Charges related to stores closed in 2012 ............................................. 41,042
Transfer of deferred rent and other balances .......................................... 1,976
Cash payments ................................................................. (20,740)
Accretion ..................................................................... 3,290
Balance at December 29, 2012 ......................................................... $74,643
Reserve balances were classified in the Consolidated Balance Sheets as follows:
December 29,
2012
December 31,
2011
(thousands)
Accrued expenses and other current liabilities - Other ......................... $21,794 $10,635
Other long-term liabilities ............................................... 52,849 38,440
Total ................................................................ $74,643 $49,075
The facilities closure reserve consisted of the following:
December 29,
2012
(thousands)
Estimated future lease obligations .................................................... $126,842
Less: anticipated sublease income .................................................... (52,199)
Total ........................................................................... $ 74,643
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 and recorded income of approximately $9.4 million to adjust the associated reserve. This
income is reported in other operating expenses, net in our Consolidated Statements of Operations.
3. Severance and Other Charges
Over the past few years, we have incurred significant charges related to Company personnel restructuring
and reorganizations. These charges were included in other operating expenses, net in the Consolidated
Statements of Operations.
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