EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2014

EARNINGS PER SHARE

NOTE Q. EARNINGS PER SHARE

The Company presents both basic and diluted earnings per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS is calculated by dividing net income by the weighted average number of common shares and common equivalent shares outstanding during the reporting period that are calculated using the treasury stock method for stock-based awards. The treasury stock method assumes that the Company uses the proceeds from the exercise of awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future, compensation cost for future service that the Company has not yet recognized and any tax benefits that would be credited to additional paid-in-capital when the award generates a tax deduction. If there would be a shortfall resulting in a charge to additional paid-in-capital, such an amount would be a reduction of the proceeds to the extent of the gains.

The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data):

	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Net income	$	57.2	$	50.5	$	109.3	$	78.0
Weighted average shares of common stock outstanding		178.8		185.9		180.5		185.3
Dilutive effect stock-based awards		2.8		4.0		3.2		3.6
Diluted weighted average shares of common stock outstanding		181.6		189.9		183.7		188.9
Basic earnings per share attributable to common stockholders	$	0.32	$	0.27	$	0.61	$	0.42
Diluted earnings per share attributable to common stockholders	$	0.31	$	0.26	$	0.59	$	0.41