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Note 12—Earnings Per Common Share
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except net income (loss) and per share
amounts):
At September 29, 2001, the Company had options to purchase 97.2 shares of its common stock outstanding, all of which were excluded from
the computation of diluted loss per share for 2001 because the effect would have been antidilutive. Options to purchase 2.5 million and
2.4 million shares of common stock were outstanding at the end of 2000 and 1999 respectively, that were not included in the computation of
diluted earnings per share for those years because the options' exercise price was greater than the average market price of the Company's
common shares for those years and, therefore, the effect would be antidilutive.
Note 13—Related Party Transactions
Mr. Jerome York, a member of the Board of the Directors of the Company, is a member of an investment group that purchased
MicroWarehouse, Inc. (" MicroWarehouse ") in January 2000. He also serves as its Chairman, President and Chief Executive Officer.
MicroWarehouse is a multi-billion dollar specialty catalog and online retailer and direct marketer of computer products, including products
made by the
70
Company, through its MacWarehouse catalogue. MicroWarehouse accounted for 2.89% and 3.26% of the Company's net sales in 2001 and
2000, respectively. Trade receivables from MicroWarehouse were $7.6 million and $47.1 million as of September 29, 2001, and September 30,
For the Years Ended
September 29,
2001
September 30,
2000
September 25,
1999
Numerator (in millions):
Income (loss) before accounting change
$
(37
)
$
786
$
601
Net income (loss)
$
(25
)
$
786
$
601
Interest expense on convertible debt
—
—
28
Numerator for diluted earnings (loss) per share
– adjusted net
income (loss)
$
(25
)
$
786
$
629
Denominator:
Weighted
-
average shares outstanding
345,613
324,568
286,314
Effect of dilutive securities:
Convertible preferred stock
—
17,914
18,182
Dilutive options
—
17,842
11,638
Convertible debt
—
—
32,194
Dilutive potential common shares
—
35,756
62,014
Denominator for diluted earnings (loss) per share
345,613
360,324
348,328
Basic earnings (loss) per share before accounting change
$
(0.11
)
$
2.42
$
2.10
Cumulative effect of accounting change, net of tax
$
0.04
—
—
Basic earnings (loss) per share after accounting change
$
(0.07
)
$
2.42
$
2.10
Diluted earnings (loss) per share before accounting change
$
(0.11
)
$
2.18
$
1.81
Cumulative effect of accounting change, net of tax
$
0.04
—
—
Diluted earnings (loss) per share after accounting change
$
(0.07
)
$
2.18
$
1.81