OFFICEMAX INC - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 26, 2005

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 1-5057

OFFICEMAX INCORPORATED
(Exact name of registrant as specified in its charter)

Delaware		82-0100960
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

150 Pierce Road
Itasca, Illinois		60143
(Address of principal executive offices)		(Zip Code)

(630) 773-5000
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ý No o

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Shares Outstanding as of April 29, 2005
Common Stock, $2.50 par value		94,147,132

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION				3
Item 1.	Financial Statements		3
	Notes to Quarterly Consolidated Financial Statements (Unaudited)		7
	1.	Basis of Presentation	7
	2.	Sale of Paper, Forest Products and Timberland Assets	8
	3.	Discontinued Operations	8
	4.	OfficeMax, Inc., Integration	9
	5.	Net Income (Loss) Per Common Share	10
	6.	Other (Income) Expense, Net	12
	7.	Income Taxes	12
	8.	Comprehensive Income (Loss)	12
	9.	Receivables	13
	10.	Investments in Affiliates	13
	11.	Inventories	13
	12.	Deferred Software Costs	13
	13.	Goodwill and Intangible Assets	14
	14.	Debt	15
	15.	Financial Instruments	17
	16.	Retirement and Benefit Plans	18
	17.	Recently Adopted Accounting Standard	18
	18.	Segment Information	19
	19.	Commitments and Guarantees	20
	20.	Legal Proceedings and Contingencies	20
	21.	Subsequent Event	20

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
	Sale of Paper, Forest Products and Timberland Assets		21
	Discontinued Operations		21
	Change in Fiscal Year End		22
	Summary		22
	Segment Discussion		24
	Results of Operations, Consolidated		24
	OfficeMax, Contract		26
	OfficeMax, Retail		27
	Corporate and Other		27
	Boise Building Solutions		28
	Boise Paper Solutions		28
	Liquidity and Capital Resources		28
	Off-Balance-Sheet Activities and Guarantees		31
	Inflationary and Seasonal Influences		31
	Environmental		31
	Critical Accounting Estimates		31
	Cautionary and Forward-Looking Statements		31

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		33

Item 4.	Controls and Procedures		35

PART II - OTHER INFORMATION				37

Item 1.	Legal Proceedings		37

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		37

Item 5	Other Information		37

Item 6.	Exhibits		37

PART I - - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

OfficeMax Incorporated and Subsidiaries
Consolidated Statements of Income (Loss)
(thousands, except per-share amounts)

	Quarter Ended
	March 26, 2005			March 31, 2004
	(unaudited)
Sales	$	2,322,800		$	3,529,619

Costs and expenses
Materials, labor and other operating expenses	1,748,177			2,762,364
Depreciation, amortization and cost of company timber harvested	35,848			96,480
Selling and distribution expenses	439,387			506,279
General and administrative expenses	74,870			72,889
Other (income) expense, net	11,688			(46,661		)
	2,309,970			3,391,351

Equity in net income of affiliates	1,302			5,067

Income from operations	14,132			143,335

Debt retirement expense	(12,155		)	—
Interest expense	(31,191		)	(40,652		)
Interest income	31,869			484
Other, net	770			180
	(10,707		)	(39,988		)