OfficeMax 2011 Annual Report Download - page 90

6. Net Income (Loss) Per Common Share
Basic net income (loss) per share is calculated using net earnings available to holders of our common stock
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, if their inclusion is dilutive, 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, the vesting of non-vested restricted shares,
and 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:
2011 2010 2009
(thousands, except per-share amounts)
Net income (loss) available to OfficeMax common shareholders .............. $32,771 $68,628 $ (2,151)
Average shares—basic(a) ............................................. 85,881 84,908 77,483
Restricted stock, stock options and other(b) .............................. 1,116 1,604 —
Average shares—diluted ............................................. 86,997 86,512 77,483
Net income (loss) available to OfficeMax common shareholders per common
share:
Basic ......................................................... $ 0.38 $ 0.81 $ (0.03)
Diluted ....................................................... $ 0.38 $ 0.79 $ (0.03)
(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 3.7 million and 1.7 million shares of common stock were outstanding during 2011 and
2010, respectively, 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 was higher than the average market
price during the year. Outstanding options to purchase shares of common stock totaled 1.3 million at the end
of 2009 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 loss reported for the period.
7. Income Taxes
The income tax (expense) benefit attributable to income (loss) from continuing operations as shown in the
Consolidated Statements of Operations includes the following components:
2011 2010 2009
(thousands)
Current income tax (expense) benefit:
Federal ..................................................... $ (128) $ 9,507 $ 60,354
State ....................................................... (1,593) (2,735) 33,770
Foreign ..................................................... (10,377) (22,521) (9,999)
Total ................................................... $(12,098) $(15,749) $ 84,125
Deferred income tax (expense) benefit:
Federal ..................................................... $ (5,342) $(24,628) $(23,190)
State ....................................................... (4,056) (2,552) (29,593)
Foreign ..................................................... 1,979 1,057 (2,584)
Total ................................................... $ (7,419) $(26,123) $(55,367)
Total income tax (expense) benefit ................................... $(19,517) $(41,872) $ 28,758
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