OfficeMax 2014 Annual Report Download - page 83
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Table of Contents
The remaining $137 million and $103 million in 2014 and 2013, respectively, are excluded from the table above because these items are expensed as
incurred, non-cash, or otherwise not associated with the merger and restructuring balance sheet accounts. The $137 million incurred in 2014 is comprised of
$124 million merger transaction and integration expenses, $9 million European restructuring transaction and integration expenses, $5 million employee non-
cash equity compensation expenses, and $1 million net credit associated primarily to fixed assets and rent related items. The $103 million incurred in 2013 is
comprised of $80 million merger transaction and integration expenses, $20 million employee non-cash equity compensation expenses, and a net $3 million
of other expenses.
Property and equipment consists of:
(In millions)
December 28,
2013
Land $ 88 $ 101
Buildings 431 469
Leasehold improvements 745 780
Furniture, fixtures and equipment 1,480 1,605
2,744 2,955
Less accumulated depreciation (1,781) (1,646)
Total $ 963 $ 1,309
The above table of property and equipment includes assets held under capital leases as follows:
(In thousands)
December 28,
2013
Buildings $ 204 $ 228
Furniture, fixtures and equipment 74 65
278 293
Less accumulated depreciation (124) (127)
Total $ 154 $ 166
Depreciation expense was $210 million in 2014, $149 million in 2013, and $152 million in 2012.
Included in furniture, fixtures and equipment above are capitalized software costs of $558 million and $531 million at December 27, 2014 and December 28,
2013, respectively. The unamortized amounts of the capitalized software costs are $148 million and $236 million at December 27, 2014 and December 28,
2013, respectively. Amortization of capitalized software costs totaled $86 million, $56 million and $46 million in 2014, 2013 and 2012, respectively.
Software development costs that do not meet the criteria for capitalization are expensed as incurred.
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