OfficeMax 2005 Annual Report Download - page 72

6. Net Income (Loss) Per Common Share
Net income (loss) per common share was determined by dividing net income (loss), as
adjusted, by the weighted average number shares outstanding. In 2005 and 2003, the computation
of diluted net loss per share was antidilutive; therefore, the amounts reported for basic and diluted
loss were the same.
Year Ended December 31
2005 2004 2003
Basic Diluted Basic Diluted Basic Diluted
(thousands, except per-share amounts)
Basic
Income (loss) from continuing
operations before cumulative effect
of accounting changes ......... $(41,212) $ (41,212) $234,125 $234,125 $35,380 $35,380
Preferred dividends(a) ........... (4,378) (4,378) (11,917) — (13,061) (13,061)
Supplemental ESOP contribution . . . — — — (10,833) — —
Income (loss) before discontinued
operations and cumulative effect
of accounting changes ......... (45,590) (45,590) 222,208 223,292 22,319 22,319
Loss from discontinued operations . . (32,550) (32,550) (61,067) (61,067) (18,305) (18,305)
Cumulative effect of accounting
changes, net of income tax ..... — — — — (8,803) (8,803)
Income (loss) ................. $ (78,140) $ (78,140) $161,141 $162,225 $(4,789) $(4,789)
Average shares used to determine
basic income (loss) per common
share ..................... 78,745 78,745 86,917 86,917 60,093 60,093
Restricted stock, stock options and
other ...................... — 1,857 —
Series D Convertible Preferred Stock — 2,880 —
Average shares used to determine
diluted income (loss) per common
share(b)(c) ................. 78,745 91,654 60,093
Income (loss) per common share:
Continuing operations ........... $ (0.58) $ (0.58) $ 2.55 $ 2.44 $ 0.37 $ 0.37
Discontinued operations ......... (0.41) (0.41) (0.70) (0.67) (0.30) (0.30)
Cumulative effect of accounting
changes, net of income tax ..... — — — — (0.15) (0.15)
$ (0.99) $ (0.99) $ 1.85 $ 1.77 $ (0.08) $ (0.08)
(a) The 2004 and 2003 dividend attributable to the Series D Convertible Preferred Stock held by the Company’s employee
stock ownership plan (ESOP) are net of a tax benefit.
(b) Adjustments totaling $2.1 million in 2005 and $1.2 million in 2003, which would have reduced the basic loss to arrive at
the diluted loss, were excluded because their effect on the calculation of the diluted loss per share was antidilutive. Also
in 2005 and 2003, potentially dilutive common shares of 1.2 million and 4.1 million, respectively, were excluded from the
calculation of average diluted shares outstanding because their effect was antidilutive.
(c) Options to purchase 3.8 million, 3.7 million and 7.3 million shares of common stock were outstanding during 2005, 2004
and 2003, respectively, but were not included in the computation of diluted income (loss) per share because the
exercise prices of the options were greater than the average market price of the common shares for the period. On
68