OfficeMax 2014 Annual Report Download - page 70

Table of Contents
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government in the 1960’s. Due to various asset restrictions, the fair value of this investment at the Merger date was not determinable and no amounts are
included in the consolidated financial statements. All material intercompany transactions have been eliminated in consolidation.
Noncontrolling interests related to the Company’s investment in Grupo OfficeMax S. de R.L. de C.V. (“Grupo OfficeMax”) through its sale in the third
quarter of 2014 is presented outside of permanent equity in the Consolidated Balance Sheets because redemption features were not within the Company’s
control. Results attributable to noncontrolling interests were insignificant for all periods.
The equity method of accounting is used for investments in which the Company does not control but either shares control equally or has significant
influence; the cost method is used when the Company neither shares control nor has significant influence.
 Fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. Certain international locations operate on a calendar
year basis; however, the reporting difference is not considered significant. All years presented in the Consolidated Financial Statements consisted of 52
weeks.
 The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
 International operations primarily use local currencies as their functional currency. Assets and liabilities are translated into U.S. dollars
using the exchange rate at the balance sheet date. Revenues, expenses and cash flows are translated at average monthly exchange rates, or rates on the date of
the transaction for certain significant items. Translation adjustments resulting from this process are recorded in Stockholders’ equity as a component of
Accumulated other comprehensive income.
Foreign currency transaction gains or losses are recorded in the Consolidated Statements of Operations in Other income (expense), net or Cost of goods sold
and occupancy costs, depending on the nature of the transaction.
    All short-term highly liquid investments with original maturities of three months or less from the date of acquisition are
classified as cash equivalents. Amounts in transit from banks for customer credit card and debit card transactions are classified as cash. The banks process the
majority of these amounts within two business days.
Amounts not yet presented for payment to zero balance disbursement accounts of $91 million and $118 million at December 27, 2014 and December 28,
2013, respectively, are presented in Trade accounts payable and Accrued expenses and other current liabilities.
Approximately $309 million of Cash and cash equivalents was held outside the United States at December 27, 2014.
 Trade receivables, net, totaled $812 million and $855 million at December 27, 2014 and December 28, 2013, respectively. An allowance for
doubtful accounts has been recorded to reduce receivables to an amount expected to be collectible from customers. The allowance at December 27, 2014 and
December 28, 2013 was $18 million and $26 million, respectively.
Exposure to credit risk associated with trade receivables is limited by having a large customer base that extends across many different industries and
geographic regions. However, receivables may be adversely affected by an economic slowdown in the United States or internationally. No single customer
accounted for more than 10% of total sales or receivables in 2014, 2013 or 2012.
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