Earnings per Common Share

9 Months Ended

Sep. 30, 2012

Earnings per Common Share

Note 12: Earnings per Common Share

Earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security. The Company has participating securities related to restricted stock units, granted under the Company’s 2007 Omnibus Equity Compensation Plan, that earn dividend equivalents on an equal basis with common shares. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities. The following is a reconciliation of the Company’s income from continuing operations, income (loss) from discontinued operations, and net income and weighted-average common shares outstanding for calculating basic earnings per share:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012			2011
Basic:
Income from continuing operations	$	154,111		$	128,495	$	320,026		$	244,011
Income (loss) from discontinued operations, net of tax		(299	)		8,927		(17,434	)		754
Net income		153,812			137,422		302,592			244,765
Less: Distributed earnings to common shareholders		44,323			40,543		125,634			118,004
Less: Distributed earnings to participating securities		20			17		51			52
Undistributed earnings		109,469			96,862		176,907			126,709
Undistributed earnings allocated to common shareholders		109,423			96,818		176,834			126,653
Undistributed earnings allocated to participating securities		46			44		73			56
Total income from continuing operations available to common shareholders, basic	$	154,045		$	128,434	$	319,902		$	243,903
Total income available to common shareholders, basic	$	153,746		$	137,361	$	302,468		$	244,657
Weighted-average common shares outstanding, basic		176,621			175,547		176,290			175,426
Basic earnings per share: (a)
Income from continuing operations	$	0.87		$	0.73	$	1.81		$	1.39
Income (loss) from discontinued operations, net of tax	$	(0.00	)	$	0.05	$	(0.10	)	$	0.00
Net income	$	0.87		$	0.78	$	1.72		$	1.39

(a) Amounts may not sum due to rounding.

Diluted earnings per common share is based on the weighted-average number of common shares outstanding, adjusted for the dilutive effect of common stock equivalents related to the restricted stock units, stock options, and employee stock purchase plan. The dilutive effect of the common stock equivalents is calculated using the treasury stock method and expected proceeds on vesting of the restricted stock units, exercise of the stock options and purchases under the employee stock purchase plan. The following is a reconciliation of the Company’s income from continuing operations, income (loss) from discontinued operations and net income and weighted-average common shares outstanding for calculating diluted earnings per share:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012			2011
Diluted:
Total income from continuing operations available to common shareholders, basic	$	154,045		$	128,434	$	319,902		$	243,903
Income (loss) from discontinued operations, net of tax		(299	)		8,927		(17,434	)		754
Total income available to common shareholders, basic		153,746			137,361		302,468			244,657
Undistributed earnings allocated to participating securities		46			44		73			56
Total income from continuing operations available to common shareholders, diluted	$	154,091		$	128,478	$	319,975		$	243,959
Total income available to common shareholders, diluted	$	153,792		$	137,405	$	302,541		$	244,713
Weighted-average common shares outstanding, basic		176,621			175,547		176,290			175,426
Stock-based compensation:
Restricted stock units		608			561		585			524
Stock options		610			484		610			471
Employee stock purchase plan		2			1		1			1
Weighted-average common shares outstanding, diluted		177,841			176,593		177,486			176,422
Diluted earnings per share: (a)
Income from continuing operations	$	0.87		$	0.73	$	1.80		$	1.38
Income (loss) from discontinued operations, net of tax	$	(0.00	)	$	0.05	$	(0.10	)	$	0.00
Net income	$	0.86		$	0.78	$	1.70		$	1.39

(a) Amounts may not sum due to rounding.

The following potentially dilutive common stock equivalents were not included in the earnings per share calculations because they were anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Stock options		620		728		620		728
Restricted stock units where certain performance conditions were not met		36		74		37		74