Note 16: 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:


	Years Ended December 31,
	2012			2011		2010
Basic
Income from continuing operations	$	374,250		$	304,929	$	255,072
Income (loss) from discontinued operations, net of tax		(16,180	)		4,684		12,755
Net income		358,070			309,613		267,827
Less: Distributed earnings to common shareholders		214,541			158,708		150,724
Less: Distributed earnings to participating securities		86			68		51

Undistributed earnings		143,443			150,837		117,052
Undistributed earnings allocated to common shareholders		143,385			150,772		117,014
Undistributed earnings allocated to participating securities		58			65		38

Total income from continuing operations available to common shareholders, basic	$	374,106		$	304,796	$	254,983
Total income available to common shareholders, basic	$	357,926		$	309,480	$	267,738

Weighted-average common shares outstanding, basic		176,445			175,484		174,833

Basic earnings per share: (a)
Income from continuing operations	$	2.12		$	1.74	$	1.46
Income (loss) from discontinued operations, net of tax	$	(0.09	)	$	0.03	$	0.07

Net income	$	2.03		$	1.76	$	1.53

(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:


	Years Ended December 31,
	2012			2011		2010
Diluted
Total income from continuing operations available to common shareholders, basic	$	374,106		$	304,796	$	254,983
Income (loss) from discontinued operations, net of tax		(16,180	)		4,684		12,755
Total income available to common shareholders, basic		357,926			309,480		267,738
Undistributed earnings allocated to participating securities		58			65		38

Total income from continuing operations available to common shareholders, diluted	$	374,164		$	304,861	$	255,021
Total income available to common shareholders, diluted	$	357,984		$	309,545	$	267,776

Weighted-average common shares outstanding, basic		176,445			175,484		174,833
Restricted stock units		618			556		264
Stock options		607			490		26
Employee stock purchase plan		1			1		1

Weighted-average common shares outstanding, diluted		177,671			176,531		175,124


Diluted earnings per share: (a)
Income from continuing operations	$	2.11		$	1.73	$	1.46
Income (loss) from discontinued operations, net of tax	$	(0.09	)	$	0.03	$	0.07

Net income	$	2.01		$	1.75	$	1.53

(a)	Amounts may not sum due to rounding.

The following potentially dilutive common stock equivalents were not included in the earnings per share calculations for the years ended December 31 because they were anti-dilutive:


	2012		2011		2010
Stock options		619		711		1,781
Restricted stock units where certain performance conditions were not met		19		22		69