Stockholders' Equity and Earnings per Share

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity and Earnings per Share

STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE

We have had a share repurchase program since November 2010. From November 2010 to September 30, 2013, we repurchased 35.5 million shares of our stock for $1,039.2 million at a weighted average cost per share of $29.30. During the three months ended September 30, 2013, we repurchased 2.3 million shares of our stock for $78.5 million at a weighted average cost per share of $33.51. During the nine months ended September 30, 2013, we repurchased 6.5 million shares of our stock for $213.6 million at a weighted average cost per share of $32.92.

We initiated a quarterly cash dividend in July 2003 and have increased it from time to time thereafter. In July 2013, the board of directors approved a quarterly dividend of $0.26 per share. Cash dividends declared were $263.5 million and $247.6 million for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013, we recorded a quarterly dividend payable of $93.6 million to stockholders of record as of October 1, 2013.

Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including restricted stock and vested but unissued restricted stock units) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the assumed exercise of employee stock options, unvested restricted stock and unvested restricted stock units. In computing diluted earnings per share, we use the treasury stock method.

Earnings per share for the three and nine months ended September 30, 2013 and 2012 are calculated as follows (in thousands, except per share amounts):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Basic earnings per share:
Net income attributable to Republic Services, Inc.	$	171,400	$	152,700	$	352,300	$	444,800
Weighted average common shares outstanding	361,672		365,404		362,418		368,096
Basic earnings per share	$	0.47	$	0.42	$	0.97	$	1.21
Diluted earnings per share:
Net income attributable to Republic Services, Inc.	$	171,400	$	152,700	$	352,300	$	444,800
Weighted average common shares outstanding	361,672		365,404		362,418		368,096
Effect of dilutive securities:
Options to purchase common stock	1,288		880		1,354		1,061
Unvested restricted stock awards	42		147		32		108
Weighted average common and common equivalent     shares outstanding	363,002		366,431		363,804		369,265
Diluted earnings per share	$	0.47	$	0.42	$	0.97	$	1.20
Antidilutive securities not included in the diluted earnings     per share calculations:
Options to purchase common stock	1,793		8,170		2,157		7,967