Net Income (Loss) Per Common Share

6 Months Ended

Jun. 25, 2011

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

14. Net Income (Loss) Per Common Share

Basic net income (loss) per share is calculated using net income (loss) 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 and 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:

	Three Months Ended					Six Months Ended
	June 25, 2011			June 26, 2010		June 25, 2011		June 26, 2010
	(thousands, except per- share amounts)					(thousands, except per- share amounts)
Net income (loss) available to OfficeMax common shareholders	$	(3,021	)	$	11,761	$	8,345	$	36,540
Average shares—basic(a)		85,978			84,928		85,673		84,791
Restricted stock, stock options and other(b)(c)		—			1,173		1,101		1,177
Average shares—diluted		85,978			86,101		86,774		85,968
Net income (loss) available to OfficeMax common shareholders per common share:
Basic	$	(0.04	)	$	0.14	$	0.10	$	0.43
Diluted	$	(0.04	)	$	0.14	$	0.10	$	0.43

(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 from continuing operations or average shares-diluted.

(b) Outstanding options to purchase 4.8 million shares of common stock and RSUs for 1.1 million shares of common stock were excluded from the computation of diluted income (loss) per common share, because the impact would have been anti-dilutive due to the loss reported for the second quarter of 2011. Outstanding options to purchase 3.4 million shares of common stock for the first six months of 2011 were excluded from the computation of diluted income (loss) per common share for the second quarter of 2011, because the impact would have been anti-dilutive as such options' exercise prices were higher than the average market price during those periods.

(c) Outstanding options to purchase 1.2 million and 1.4 million shares of common stock for the second quarter and the first six months of 2010, respectively were excluded from the computation of diluted income (loss) per common share, because the impact would have been anti-dilutive as such options' exercise prices were higher than the average market price during those periods.