Memorex 2010 Annual Report Download - page 50

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Note 3 — (Loss) Earnings per Common Share
Basic earnings per share is calculated using the weighted average number of shares outstanding for the period.
Diluted earnings per share is computed on the basis of the weighted average basic shares outstanding plus the dilutive
effect of our stock-based compensation plans using the “treasury stock” method. Unvested restricted stock and treasury
shares are excluded from the calculation of weighted average number of common stock outstanding because they do not
participate in dividends. Once restricted stock vests, it is included in our common stock outstanding.
The following table sets forth the computation of the weighted average basic and diluted income (loss) per share:
2010 2009 2008
Years Ended December 31,
(In millions)
Numerator:
Loss from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(158.3) $(44.0) $(37.8)
(Loss) income from discontinued operations . . . . . . . . . . . . . . . . . . . . . . . (0.2) 1.8 4.5
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(158.5) $(42.2) $(33.3)
Denominator:
Weighted average number of common stock outstanding during the period . . 37.8 37.5 37.5
Dilutive effect of stock-based compensation plans . . . . . . . . . . . . . . . . . . . — — —
Weighted average number of diluted shares outstanding during the period . . 37.8 37.5 37.5
Basic (loss) earnings per common share:
Continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (4.19) $(1.17) $(1.01)
Discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.01) 0.05 0.12
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.19) (1.13) (0.89)
Diluted (loss) earnings per common share:
Continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (4.19) $(1.17) $(1.01)
Discontinued operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.01) 0.05 0.12
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.19) (1.13) (0.89)
Anti-dilutive options excluded from calculation . . . . . . . . . . . . . . . . . . . . . . . . 4.9 4.6 4.1
Note 4 — Acquisitions and Divestiture
No acquisitions were completed during the years ended December 31, 2010 or 2009.
2008 Acquisitions
Xtreme Accessories, LLC
On June 30, 2008, we acquired substantially all of the assets of Xtreme Accessories, LLC (XtremeMac), a Florida-
based product design and marketing firm focused on consumer electronic products and accessories. The purchase price
was $7.3 million, consisting of a cash payment of $7.0 million and $0.3 million of direct acquisition costs. No additional
cash consideration will be paid out as the financial performance of the business did not meet the earn out provisions of
the acquisition agreement.
47
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)