OfficeMax Contributes Shares of OfficeMax Common Stock to Its Qualified Pension Plans
November 03 2009 - 8:04PM
PR Newswire (US)
Voluntary excess contribution reduces underfunded balance and
maintains financial flexibility Company expects contribution to be
accretive to earnings in 2010 NAPERVILLE, Ill., Nov. 3
/PRNewswire-FirstCall/ -- OfficeMax Incorporated (NYSE:OMX), a
leader in office products and services, today announced that it has
completed the voluntary excess contribution of 8,331,722 shares of
OfficeMax common stock to its frozen qualified pension plans. The
company's intent to make the voluntary contribution was first
announced on October 29, 2009. The net effect of the contribution
on earnings per share, including the impact of increased shares
outstanding, is expected to be minimal in 2009 and accretive in
2010. Based on actuarial assumptions, this excess 2009 contribution
is expected to reduce required pension contributions over the next
five years by approximately $100 million. As of December 27, 2008,
the pension plans were underfunded by $435 million. According to a
current estimate of plan assets including the impact of the
voluntary contribution of stock and projected discounted
obligations, the underfunding has decreased to approximately $300
million. As a result, the plan's obligations are now estimated to
be approximately 78% funded. The shares were contributed to the
plans in a private placement. An independent fiduciary, Evercore
Trust Company, N.A., will make all investment decisions with
respect to the contributed shares. Forward-Looking Statements
Certain statements made in this press release and other written or
oral statements made by or on behalf of the company constitute
"forward-looking statements" within the meaning of the federal
securities laws, including statements regarding the company's
future performance, as well as management's expectations, beliefs,
intentions, plans, estimates or projections relating to the future.
Management believes that these forward-looking statements are
reasonable. However, the company cannot guarantee that future
events will not impact the return on the company stock contributed
to the pension plan and affect the future funding obligations we
predict, or that its actual results will be consistent with the
forward-looking statements and you should not place undue reliance
on them. These statements are based on current expectations and
speak only as of the date they are made. The company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of future events, new information or
otherwise. Important factors regarding the company that may cause
results to differ from expectations are included in the company's
Annual Report on Form 10-K for the year ended December 27, 2008,
under Item 1A "Risk Factors", and in the company's other filings
with the SEC. About OfficeMax OfficeMax Incorporated (NYSE:OMX) is
a leader in both business-to-business office products solutions and
retail office products. The OfficeMax mission is simple. We help
our customers do their best work. The company provides office
supplies and paper, in-store print and document services through
OfficeMax ImPress®, technology products and solutions, and
furniture to consumers and to large, medium and small businesses.
OfficeMax customers are served by over 30,000 associates through
direct sales, catalogs, e-commerce and more than 1,000 stores. To
find the nearest OfficeMax, call 1-877-OFFICEMAX. For more
information, visit http://www.officemax.com/. Media Contact Bill
Bonner 630 864 6066 Investor Relations Contacts Mike Steele Tony
Giuliano 630 864 6826 630 864 6820 DATASOURCE: OfficeMax
Incorporated CONTACT: Media, Bill Bonner, +1-630-864-6066, or
Investor Relations, Mike Steele, +1-630-864-6826, or Tony Giuliano,
+1-630-864-6820, all of OfficeMax Incorporated Web Site:
http://www.officemax.com/
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