OfficeMax 2014 Annual Report Download - page 38

Table of Contents
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(In millions)  2013
Sales $ 155 $ 40
Other operating income (loss) $ 8 $ (2)
With the Merger, we acquired the OfficeMax joint venture business operating in Mexico, Grupo OfficeMax. In August 2014, we completed the sale of our
interest in this business to our joint venture partner. In the second quarter of 2014, due to the pending sale, the integration of this business into the
International Division was suspended and has since been managed and reported independently of the Company’s other international businesses. Prior period
segment information has been recast to reflect this change in the reporting structure.
Since the Company controlled the joint venture, the total Grupo OfficeMax results through the date of the sale are included in the Consolidated Statement of
Operations, with an apportionment of the period results to the noncontrolling interest based on their ownership percentage. The release of cumulative
translation adjustments and transaction fees are included in Merger, restructuring and other operating expenses, net in the Consolidated Statement of
Operations.
The Company adopted the new accounting standard on discontinued operations in the second quarter of 2014. While this is a disposal of all of our
operations in Mexico, it is not considered to have a major effect on our operations or financial results and, accordingly, it is not presented as discontinued
operations.
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The line items in our Consolidated Statements of Operations impacted by these Corporate activities are presented in the table below, followed by a narrative
discussion of the significant matters. These activities are managed at the Corporate level and, accordingly, are not included in the determination of Division
income for management reporting or external disclosures.
(In millions)  2013 2012
Recovery of purchase price   — (68)
Asset impairments   70 139
Merger, restructuring, and other operating expenses, net   201 56
Legal accrual   — —
Total charges and credits impact on Operating loss  $ 271 $ 127
In addition to these charges and credits, certain Selling, general and administrative expenses are not allocated to the Divisions and are managed at the
Corporate level. Those expenses are addressed in the section “Unallocated Costs” below.
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The sale and purchase agreement (“SPA”) associated with the 2003 European acquisition included a provision whereby the seller was required to pay an
amount to the Company if the acquired pension plan was determined to be underfunded based on 2008 plan data. The unfunded obligation amount
calculated by the plan’s actuary based on that data was disputed by the seller. While the matter was still pending, in 2011, the seller paid GBP 5.5 million ($9
million, measured at then-current exchange rates) to the Company to allow for future monthly payments to the pension plan. In January 2012, the Company
and the seller entered into a settlement agreement that settled all claims by either party for this and any other matter under the original SPA. The seller paid an
additional GBP 32.2 million (approximately $50 million, measured at then-current exchange rates) to the Company in February 2012. Following this cash
receipt in February 2012, the Company contributed the GBP
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