OfficeMax 2015 Annual Report Download - page 98
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Table of Contents
As of December 26, 2015, there was $30 million of total unrecognized compensation expense related to the performance-based long-term incentive program.
This expense, net of forfeitures, is expected to be recognized over a weighted-average period of approximately 1.9 years. Of the 8.6 million unvested shares at
year end, the Company estimates that 8 million shares will vest. The total fair value of shares at the time they vested during 2015 was $3 million.
Pension and Other Postretirement Benefit Plans — North America
The Company has retirement obligations under OfficeMax’s U.S. pension plans. The Company sponsors these defined benefit pension plans covering certain
terminated employees, vested employees, retirees and some active employees. In 2004 or earlier, OfficeMax’s pension plans were closed to new entrants and
the benefits of eligible participants were frozen. Under the terms of these plans, the pension benefit for employees was based primarily on the employees’
years of service and benefit plan formulas that varied by plan. The Company’s general funding policy is to make contributions to the plans in amounts that
are within the limits of deductibility under current tax regulations, and not less than the minimum contribution required by law.
Additionally, under previous OfficeMax arrangements, the Company has responsibility for sponsoring retiree medical benefit and life insurance plans
including plans related to operations in the U.S. and Canada (referred to as “Other Benefits” in the tables below). The type of retiree benefits and the extent of
coverage vary based on employee classification, date of retirement, location, and other factors. All of these postretirement medical plans are unfunded. The
Company explicitly reserves the right to amend or terminate its retiree medical and life insurance plans at any time, subject only to constraints, if any,
imposed by the terms of collective bargaining agreements. Amendment or termination may significantly affect the amount of expense incurred.
The impact of these assumed plans is included in the consolidated financial statements from the date of the Merger.
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