EARNINGS PER SHARE AND SHAREHOLDERS’ EQUITY

Earnings per Share

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations:



		Continuing Operations						Discontinued Operations					Total
Three Months Ended June 30, 2012	Shares	Income			Per Share Amount			Income		Per Share Amount			Per Share Amount
Basic EPS	115.4	$	(53.7	)	$	(0.47	)	$	68.3	$	0.60		$	0.13
Effect of dilutive securities:
Stock-based compensation arrangements	—	—			—			—		—			—
Convertible Debt	—	—			—			—		—			—
Diluted EPS	115.4	$	(53.7	)	$	(0.47	)	$	68.3	$	0.60		$	0.13

Six Months Ended June 30, 2012
Basic EPS	115.7	$	(32.3	)	$	(0.28	)	$	73.0	$	0.63		$	0.35
Effect of dilutive securities:
Stock-based compensation arrangements	—	—			—			—		—			—
Convertible Debt	—	—			—			—		—			—
Diluted EPS	115.7	$	(32.3	)	$	(0.28	)	$	73.0	$	0.63		$	0.35

Three Months Ended June 30, 2011
Basic EPS	120.7	$	24.0		$	0.20		$	7.7	$	0.06		$	0.26
Effect of dilutive securities:
Stock-based compensation arrangements	2.2	—			(0.01		)	—		0.01			—
Convertible Debt	1.2	—			—			—		—			—
Diluted EPS	124.1	$	24.0		$	0.19		$	7.7	$	0.07		$	0.26

Six Months Ended June 30, 2011
Basic EPS	121.4	$	51.9		$	0.43		$	14.7	$	0.12		$	0.55
Effect of dilutive securities:
Stock-based compensation arrangements	2.2	—			(0.01		)	—		(0.01		)	(0.02		)
Convertible Debt	1.2	—			—			—		—			—
Diluted EPS	124.8	$	51.9		$	0.42		$	14.7	$	0.11		$	0.53

The diluted EPS calculation excludes the effect of 1.9 outstanding stock options for the three and six months ended June 30, 2012 and 3.9 outstanding stock options for the three and six months ended June 30, 2011 because their effect is anti-dilutive. The calculation also excludes the effect of 1.7 and 1.8 restricted stock units for the three and six months ended June 30, 2012, respectively, and 1.9 shares related to the 2029 Convertible Debentures for the three and six months ended June 30, 2012 because their effect is anti-dilutive. As the Company reported a Net Loss from Continuing Operations for the three and six months ended June 30, 2012, diluted shares outstanding are equivalent to basic shares outstanding. As described more fully in Note 9, the Company issued approximately $125.0 aggregate principal amount of 5.75% Junior Subordinated Convertible Debentures due 2029 (2029 Convertible Debentures). The 2029 Convertible Debentures are convertible, subject to certain conditions, into shares of the Company’s common stock at an initial conversion price of approximately $12.07 per share, or eighty-two and eighty-two hundredths shares per one thousand in principal amount of debentures. The conversion rate will be subject to adjustments for certain events outlined in the indenture governing the Debentures (the Indenture), including payment of dividends.

Shareholders’ Equity

The Company repurchased 4.8 and 4.9 shares of its common stock during the three and six months ended June 30, 2012 at an average price of $13.92 and $13.91 per share for a total of $67.7 and $68.6 under defined repurchase plans. Based upon timing of the transactions, $4.0 of shares repurchased had not settled as of June 30, 2012. These shares are excluded from outstanding shares at the end of the current quarter and will be settled in cash during the third quarter of 2012. As of June 30, 2012, the Company had the authority to repurchase an additional $94.1 of outstanding common shares pursuant to current authorizations. The Company also repurchased 0.4 shares at an average price of $14.47 for aggregate proceeds of $5.3 subsequent to June 30, 2012 through July 31, 2012. On July 26, 2012, the Company's Board of Directors approved an increase in remaining authorized share repurchases to $250.0 in the aggregate as of July 31, 2012.

Dividends

On May 8, 2012, the Company announced that its Board of Directors declared an initial quarterly cash dividend of $0.05. The initial quarterly cash dividend was paid on July 6, 2012 to all shareholders of record as of June 22, 2012. On July 26, 2012, the Company announced that its Board of Directors has declared a quarterly cash dividend of $0.05 to be paid on October 5, 2012 to all shareholders of record as of September 21, 2012. The Board expects that future cash dividends will be paid on a quarterly basis consistent with the initial cash dividend. However, any decision to pay future cash dividends will be subject to Board approval, and will depend on the Company's future earnings, cash flow, financial condition, financial covenants and other relevant factors.