OfficeMax 2015 Annual Report Download - page 78
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Table of Contents
Transaction and integration expenses include integration-related professional fees, incremental temporary contract labor, salary and benefits for employees
dedicated to the Merger activity, travel costs, non-capitalizable software integration costs, and other direct costs to combine the companies. Such costs are
being recognized as incurred. Expenses in 2013 primarily relate to legal, accounting, and pre-merger integration activities incurred by Office Depot.
Facility closure, contract termination and other costs primarily relate to facility closure accruals, contract termination cost, gains and losses on asset
dispositions, and accelerated depreciation. Facility closure expenses include amounts incurred by the Company to close retail stores in the United States as
part of the Real Estate Strategy, as well as supply chain facilities. The Company closed 168 and 181 retail stores in 2014 and 2015, respectively, and expects
to close more than 50 additional stores in 2016. During 2015, the Company recognized gains of $36 million from the sale of warehouse facilities that had
been classified as assets held for sale. The gains are included in Merger, restructuring and other operating expenses, net, as the dispositions were part of the
supply chain integration associated with the Merger.
International restructuring and certain other expenses
International restructuring and certain other expenses in 2015 and 2014 include charges related to the European Restructuring Plan, including severance and
retention, professional integration fees, facility closure and other restructuring costs. Additionally, charges related to international organizational changes
and facility closures which were started prior to the European Restructuring Plan are presented in this caption. Accruals related to the European Restructuring
Plan were substantially completed during 2015.
Staples Acquisition expenses
Staples Acquisition expenses recognized in 2015 include retention accruals, transaction costs, including costs associated with regulatory filings and
professional fees. The retention amounts will be paid in the first quarter of 2016 regardless of whether the transaction is approved.
Asset impairments are not included in the table above. Refer to Note 15 for further information.
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