Office Depot 2001 Annual Report Download - page 51

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49
Note J—Earnings Per Share
Basic earnings per share is based on the weighted average number of shares
outstanding during each period. Diluted earnings per share further assumes
that the zero coupon, convertible subordinated notes, if dilutive, are converted
as of the beginning of the period and that, under the treasury stock method,
dilutive stock options are exercised. Net earnings under this assumption have
been adjusted for interest on the zero coupon, convertible subordinated notes,
net of the related income tax effect.
The information required to compute basic and diluted net earnings per
share is as follows:
(In thousands) 2001 2000 1999
Basic:
Weighted average number of
common shares outstanding 298,054 309,301 361,499
Diluted:
Net earnings $201,043 $ 49,332 $257,638
Interest expense related to convertible
notes, net of tax 7,238 — 12,068
Adjusted net earnings $208,281 $ 49,332 $269,706
Weighted average number of
common shares outstanding 298,054 309,301 361,499
Shares issued upon assumed conversion
of convertible notes 13,846 — 24,744
Shares issued upon assumed exercise
of stock options 4,524 1,930 7,414
Shares used in computing diluted
net earnings per common share 316,424 311,231 393,657
For 2000, the zero coupon convertible subordinated notes would have
been anti-dilutive, and therefore the shares (23.0 million) and related interest
expense ($12.1 million) were excluded from our calculation of diluted earn-
ings per share. Options to purchase 12.7 million shares of common stock were
not included in our computation of diluted earnings per share for 2001
because their effect would also have been anti-dilutive.
Note K—Supplemental Information on Operating, Investing,
and Financing Activities
Additional supplemental information related to the Consolidated Statements
of Cash Flows is as follows:
(Dollars in thousands) 2001 2000 1999
Cash paid for:
Interest $17,802 $ 9,099 $ 6,472
Taxes 15,008 132,743 118,157
Supplemental non-cash information:
Assets acquired under capital leases 8,256 12,569 37,881
Additional paid-in capital related to tax benefit
on stock options exercised (See Note H)10,218 (4,640) 22,987
Unrealized gain on investment securities,
net of income taxes —— 62,128