NOTE 5. WEIGHTED AVERAGE SHARES OUTSTANDING

Below is a reconciliation of basic to diluted shares outstanding:

Three Months Ended

Nine Months Ended

September 30,

2012

2011

2012

2011

Basic

222.5

226.0

223.3

227.7

Dilutive effect of shares issuable under stock-based compensation plans

3.6

3.0

3.4

3.0

Diluted

226.1

229.0

226.7

230.7

Anti-dilutive options to purchase common shares and restricted stock excluded from the table above

6.6

10.7

6.6

10.8

The calculation of diluted EPS requires certain assumptions regarding the use of both cash proceeds and assumed proceeds that would be received upon the exercise of stock options and vesting of restricted stock outstanding as of September 30, 2012 and 2011. These assumed proceeds include Excess Tax Benefits and any unrecognized compensation of the awards.