OfficeMax 2014 Annual Report Download - page 109
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Table of Contents
agreement, fees incurred in 2012, and fee reimbursement from the seller have been reported in Recovery of purchase price in the Consolidated Statement of
Operations for 2012, totaling $68 million. An additional expense of $5 million of costs incurred in prior periods related to this arrangement is included in
Merger, restructuring and other operating expenses, net, in the Consolidated Statement of Operations, resulting in a net increase in operating profit for 2012
of $63 million. Similar to the presentation of goodwill impairment in 2008, this recovery and related charge is reported at the corporate level, not part of
International Division operating income.
The cash payment from the seller was received by a subsidiary of the Company with the Euro as its functional currency and the pension plan funding was
made by a subsidiary with Pound Sterling as its functional currency, resulting in certain translation differences between amounts reflected in the
Consolidated Statement of Operations and the Consolidated Statement of Cash Flows for 2012. The receipt of cash from the seller is presented as a source of
cash in investing activities. The contribution of cash to the pension plan is presented as a use of cash in operating activities.
Obligations and Funded Status
The following table provides a reconciliation of changes in the projected benefit obligation, the fair value of plan assets and the funded status of the plan to
amounts recognized on the Company’s Consolidated Balance Sheets.
(In millions) December 29, 2013
Changes in projected benefit obligation:
Obligation at beginning of period $ 208
Service cost —
Interest cost 9
Benefits paid (4)
Actuarial loss 6
Currency translation 5
Obligation at end of period 224
Changes in plan assets:
Fair value of plan assets at beginning of period 216
Actual return on plan assets 14
Benefits paid (4)
Currency translation 6
Fair value of plan assets at end of period 232
Net asset recognized at end of period $ 8
In the Consolidated Balance Sheets, the net funded amounts are classified as a non-current asset in the caption Other assets.
Components of Net Periodic Benefit
The components of net periodic benefit are presented below:
(In millions) 2013 2012
Service cost $ — $ —
Interest cost 9 9
Expected return on plan assets (13) (11)
Net periodic pension benefit $ (4) $ (2)
107