Shareholders' Equity and Noncontrolling Interest

6 Months Ended

Jun. 25, 2011

Shareholders' Equity and Noncontrolling Interest

Shareholders' Equity and Noncontrolling Interest

12. Shareholders' Equity and Noncontrolling Interest

The following table reflects changes in shareholders' equity and noncontrolling interest for the first six months of 2011.

	Shareholders' Equity			Noncontrolling Interest
	(thousands)
Balance at December 25, 2010	$	600,765		$	49,246
Comprehensive income:
Net income attributable to OfficeMax and noncontrolling interest		9,445			1,687
Other comprehensive income:
Foreign currency translation adjustments		17,437			2,498
Amortization of unrecognized retirement and benefit costs, net of tax		7,067			—
Unrealized hedge loss adjustment, net of tax		85			—
Comprehensive income attributable to OfficeMax and noncontrolling interest		34,034			4,185
Preferred stock dividends		(1,100	)		—
Stock-based compensation		8,677			—
Non-controlling interest fair value adjustment		12,724			(12,724	)
Other		(3,985	)		—
Balance at June 25, 2011	$	651,115		$	40,707

In accordance with an amended and restated joint venture agreement, the minority owner of Grupo OfficeMax, our joint-venture in Mexico, can elect to require OfficeMax to purchase the minority owner's 49% interest in the joint venture if certain earnings targets are achieved. Earnings targets are calculated quarterly on a rolling four-quarter basis. Accordingly, the targets may be achieved in one quarter but not in the next. If the earnings targets are achieved and the minority owner elects to require OfficeMax to purchase the minority owner's interest, the purchase price is based on the joint venture's earnings and the current market multiples of similar companies. At the end of the second quarter of 2011, Grupo OfficeMax met the earnings targets and the estimated purchase price of the minority owner's interest was $40.2 million. At the end of the second quarter of 2011, the noncontrolling interest was recorded at the estimated purchase price, which was in excess of the carrying value. As the estimated purchase price approximates fair value, the offset was recorded to additional paid-in capital.