OfficeMax 2007 Annual Report Download - page 65

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4. Net Income (Loss) Per Common Share
Basic net income (loss) per share is calculated using net earnings available to common
stockholders divided by the weighted-average number of shares of common stock outstanding
during the year. Diluted net income (loss) per share is similar to basic net income (loss) per share
except that the weighted-average number of shares of common stock outstanding is increased to
include the number of additional shares of common stock that would have been outstanding
assuming the issuance of all potentially dilutive shares, such as common stock to be issued upon
exercise of options and non-vested restricted shares, and, if dilutive, the conversion of outstanding
preferred stock. Net income (loss) per common share was determined by dividing net income
(loss), as adjusted, by weighted average shares outstanding as follows:
2007 2006 2005
(thousands, except per-share amounts)
Basic income (loss) per common share:
Income (loss) from continuing operations .................. $207,373 $ 99,054 $ (41,212)
Preferred dividends .................................. (3,961) (4,037) (4,378)
Basic income (loss) from continuing operations ............. 203,412 95,017 (45,590)
Loss from discontinued operations ....................... — (7,333) (32,550)
Basic income (loss) .................................. $203,412 $87,684 $(78,140)
Average shares—basic ............................... 75,274 73,142 78,745
Basic income (loss) per common share:
Continuing operations .............................. $ 2.70 $ 1.30 $ (0.58)
Discontinued operations ............................. — (0.10) (0.41)
Basic income (loss) per common share ................... $ 2.70 $ 1.20 $ (0.99)
Diluted income (loss) per common share:
Basic income (loss) from continuing operations ............. $203,412 $ 95,017 $ (45,590)
Preferred dividends eliminated(a) ........................ — — —
Diluted income (loss) from continuing operations ............ 203,412 95,017 (45,590)
Loss from discontinued operations ....................... — (7,333) (32,550)
Diluted income (loss) ................................ $203,412 $87,684 $(78,140)
Average shares—basic ............................... 75,274 73,142 78,745
Restricted stock, stock options and other .................. 1,100 571 —
Series D Convertible Preferred Stock ..................... —— —
Average shares—diluted(a)(b)(c) ........................ 76,374 73,713 78,745
Diluted income (loss) per common share:
Continuing operations .............................. $ 2.66 $ 1.29 $ (0.58)
Discontinued operations ............................. — (.10) (0.41)
Diluted income (loss) per common share .................. $ 2.66 $ 1.19 $ (0.99)
(a) The assumed conversion of outstanding preferred stock was anti-dilutive in all periods presented, and therefore no
adjustment was required to determine diluted income (loss) from continuing operations or average shares-diluted.
(b) Options to purchase 0.4 million shares of common stock were outstanding during 2007, but were not included in the
computation of diluted income (loss) per common share because the impact would have been anti-dilutive as the
option price is higher than the average market price during the year.
(c) Options to purchase 3.8 million shares of common stock were outstanding during 2005, but were not included in the
computation of diluted income (loss) per common share because the impact would have been anti-dilutive due to the
net loss recognized in the period.
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