OfficeMax 2011 Annual Report Download - page 104
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The following is a reconciliation of the change in fair value of the pension plan assets calculated based on
Level 3 inputs:
Total
(thousands)
Balance at December 31, 2010 ......................................................... $5,357
Benefit payments and administrative expenses ............................................ (10)
Investment income and net appreciation in investments ..................................... 315
Balance at December 31, 2011 ......................................................... $5,662
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the
accrual basis. Dividends are recorded on the ex-dividend date.
Cash Flows
Pension plan contributions include required statutory minimum amounts and, in some years, additional
discretionary amounts. During 2011, 2010 and 2009, the Company made cash contributions to its pension plans
totaling $3.3 million, $3.4 million and $6.8 million, respectively. Pension contributions for 2012 are estimated to
be $28.5 million. The Company may elect at any time to make additional voluntary contributions.
Qualified pension benefit payments are paid from the assets held in the plan trust, while nonqualified pension and
other benefit payments are paid by the Company. Future benefit payments by year are estimated to be as follows:
Pension
Benefits
Other
Benefits
(thousands)
2012 ..................................................................... $101,662 $1,243
2013 ..................................................................... 97,782 1,202
2014 ..................................................................... 97,139 1,170
2015 ..................................................................... 95,824 1,142
2016 ..................................................................... 94,947 1,121
2017-2021 ................................................................. 458,868 5,549
Defined Contribution Plans
The Company also sponsors defined contribution plans for most of its employees. Through 2004, the
Company sponsored four contributory defined contribution savings plans for most of its salaried and hourly
employees: a plan for Retail employees, a plan for non-Retail salaried employees, a plan for union hourly
employees, and a plan for non-Retail, nonunion hourly employees. The plan for non-Retail salaried employees
included an employee stock ownership plan (“ESOP”) component and the Company’s Series D ESOP
convertible preferred stock were fully allocated to eligible participants in prior years. Total Company
contributions to the defined contribution savings plans were $7.0 million in 2011, $3.2 million in 2010 and
$1.3 million in 2009.
13. Shareholders’ Equity
Preferred Stock
At December 31, 2011, 638,353 shares of 7.375% Series D ESOP convertible preferred stock were
outstanding, compared with 686,696 shares outstanding at December 25, 2010. The Series D ESOP convertible
preferred stock is shown in the Consolidated Balance Sheets at its liquidation preference of $45 per share. All
shares outstanding have been allocated to participants in the plan. Each ESOP preferred share is entitled to one
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