EARNINGS PER SHARE

12 Months Ended

Dec. 27, 2014

EARNINGS PER SHARE

NOTE 15. EARNINGS PER SHARE

The following table presents the calculation of net loss per common share — basic and diluted:

(In millions, except per share amounts)	2014			2013			2012
Basic Earnings Per Share
Numerator:
Net loss attributable to common stockholders	$	(354	)	$	(93	)	$	(110	)
Denominator:
Weighted-average shares outstanding		535			318			280
Basic loss per share	$	(0.66	)	$	(0.29	)	$	(0.39	)
Diluted Earnings Per Share
Numerator:
Net loss attributable to Office Depot, Inc.	$	(354	)	$	(20	)	$	(77	)
Denominator:
Weighted-average shares outstanding		535			318			280
Diluted loss per share	$	(0.66	)	$	(0.29	)	$	(0.39	)

Shares issued related to the Merger impact the weighted average share calculation for the years of 2014 and 2013. The 2013 impact is from the Merger closing date to December 28, 2013. The following potentially dilutive stock options and restricted stock were excluded from the diluted loss per share calculation because of the net loss in the periods.

(In millions, except per share amounts)	2014		2013		2012
Potentially dilutive securities:
Stock options and restricted stock		8		7		5
Redeemable preferred stock		—		56		78

Awards of options and nonvested shares representing an additional 9 million, 6 million and 15 million shares of common stock were outstanding for the years ended December 27, 2014, December 28, 2013, and December 29, 2012, respectively, but were not included in the computation of diluted weighted-average shares outstanding because their effect would have been antidilutive. For the three years presented, no tax benefits have been assumed in the weighted average share calculation in jurisdictions with valuation allowances.

Shares of the redeemable preferred stock were fully redeemed in 2013. Following the July 2013 shareholder approval of the transactions contemplated by the Merger Agreement, 50 percent of the outstanding preferred stock was redeemed and the remaining 50 percent was redeemed in November 2013 in connection with the Merger closing. In periods in which the redeemable preferred stock were outstanding, basic earnings (loss) per share (“EPS”) was computed after consideration of preferred stock dividends. The redeemable preferred stock had equal dividend participation rights with common stock that required 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 and third quarter of 2013, but was not applicable to the full year 2012 or full year 2013 because it would have been antidilutive. The preferred stockholders were not required to fund losses. Refer to Note 11 for further redemption details.