OfficeMax 2014 Annual Report Download - page 88
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Table of Contents
The sale of the timberlands in 2004 generated a tax gain for OfficeMax and a related deferred tax liability was recognized. The timber installment notes
structure allowed the deferral of the resulting tax liability until 2020, the maturity date for the Installment Notes. At December 27, 2014, there is a deferred
tax liability of $251 million related to the Installment Notes that will reverse upon maturity.
Debt consists of the following:
(In millions)
December 28,
2013
Recourse debt:
Short-term borrowings and current maturities of long-term debt:
Short-term borrowings $ 3
Capital lease obligations 23
Other current maturities of long-term debt 3
Total $ 29
Long-term debt, net of current maturities:
Senior Secured Notes, due 2019 $ 250
7.35% debentures, due 2016 18
Revenue bonds, due in varying amounts periodically through 2029 186
American & Foreign Power Company, Inc. 5% debentures, due 2030 13
Grupo OfficeMax loans 4
Capital lease obligations 207
Other 18
Total $ 696
Non-recourse debt:
5.42% Securitization Notes, due 2019 — Refer to Note 7 $ 735
Unamortized premium 124
Total $ 859
The Company was in compliance with all applicable financial covenants of existing loan agreements at December 27, 2014.
On May 25, 2011, the Company entered into an Amended and Restated Credit Agreement with a group of lenders. Additional amendments to the Amended
and Restated Credit Agreement have been entered into and were effective February 2012 and November 2013 (the Amended and Restated Credit Agreement
including all amendments is referred to as the “Amended Credit Agreement”). The Amended Credit Agreement provides for an asset based, multi-currency
revolving credit facility of up to $1.25 billion (the “Facility”). The Amended Credit Agreement also provides that the Facility may be increased by up to
$250 million, subject to certain terms and conditions, including obtaining increased commitments from existing or new lenders. The amount that can be
drawn on the Facility at any given time is determined based on percentages of certain accounts receivable, inventory and credit card receivables (the
“Borrowing Base”). The Facility includes a sub-facility of up to
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