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Earnings Per Share
 6 Months Ended
Jun. 30, 2012
Earnings Per Share

Note F – Earnings Per Share

The following table represents the calculation of net loss per common share:

 

     Second Quarter      First Half  
(In thousands, except per share amounts)    2012      2011      2012      2011  

Basic Earnings Per Share

            

Numerator:

            

Loss available to common shareholders

      $   (64,281)         $   (29,327)         $   (22,994)         $   (43,954)   

Denominator:

            

Weighted-average shares outstanding

      279,522          277,336          279,037          277,161    

Basic loss per share

      $   (0.23)         $   (0.11)         $ (0.08)         $ (0.16)   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted Earnings Per Share

            

Numerator:

            

Net loss attributable to Office Depot, Inc.

      $   (57,382)         $   (20,114)         $ (7,879)         $   (25,528)   

Denominator:

            

Weighted-average shares outstanding

      279,522          277,336          279,037          277,161    

Effect of dilutive securities:

            

Stock options and restricted stock

      4,311          5,417          4,538          5,523    

Redeemable preferred stock

      77,435          73,703          76,491          73,703    
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted weighted-average shares outstanding

      361,268          356,456          360,066          356,387    

Diluted loss per share

      N/A          N/A          N/A         N/A   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic earnings (loss) per share (“EPS”) is computed after consideration of preferred stock dividends. Shares of the redeemable preferred stock have equal dividend participation rights with common stock. The company has never paid a dividend on common stock, but the participation provisions require application of the two-class method for computing earnings per share. In periods of sufficient earnings, this method assumes an allocation of undistributed earnings to both participating stock classes. The two-class method impacted the computation of earnings for the first quarter of 2012, but was not applicable to the second quarter or first half of 2012 because it would have been antidilutive. The preferred shareholders are not required to fund losses.

Awards of options and nonvested shares representing approximately 17.0 million and 15.4 million additional shares of common stock were outstanding for the second quarter and first half of 2012, respectively, and 12.5 million and 11.8 million for the second quarter and first half of 2011, respectively, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive. For purposes of calculating weighted average shares, no tax benefits have been assumed in jurisdictions where deferred tax valuation allowances have been recorded.