Earnings Per Share

Basic earnings per share is computed by dividing earnings available to MasTec’s common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing earnings by the number of fully diluted shares, which includes the effect of dilutive potential issuances of common shares as determined using earnings from continuing operations. The potential issuance of common shares upon the exercise, conversion or vesting of outstanding stock options and unvested restricted share awards, as calculated under the treasury stock method, as well as shares associated with the Company’s outstanding convertible debt securities, may be dilutive.

The following table provides details underlying the Company’s earnings per share calculations for the periods indicated (in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2012			2013			2012
Net income attributable to MasTec:
Basic net income from continuing operations ⁽¹⁾	$	49,960		$	36,098		$	104,702		$	78,957
Interest expense, net of tax, 2009 Convertible Notes	79			78			235			234
Diluted net income from continuing operations	$	50,039		$	36,176		$	104,937		$	79,191
Net loss from discontinued operations ⁽¹⁾	(3,822		)	(9,277		)	(5,252		)	(7,872		)
Diluted net income attributable to MasTec	$	46,217		$	26,899		$	99,685		$	71,319
Weighted average shares outstanding:
Basic weighted average shares outstanding	77,093			76,194			76,816			79,009
Dilutive common stock equivalents	775			887			774			842
Dilutive premium shares, 2011 Convertible Notes	6,790			1,639			6,337			1,325
Dilutive shares, 2009 Convertible Notes	806			806			806			806
Diluted weighted average shares outstanding	85,464			79,526			84,733			81,982

(1) Calculated as total net income less amounts attributable to non-controlling interests.

During the nine month period ended September 30, 2012, the Company repurchased 4.9 million shares of its common stock for an aggregate purchase price of $75.0 million. Repurchased shares are held in the Company's treasury.

Outstanding Convertibles Notes - Diluted Share Impact

The Company has $215 million principal amount of senior convertible notes outstanding, composed of $202.3 million of senior convertible notes issued in 2011 (the "2011 Convertible Notes") and approximately $12.6 million of senior convertible notes issued in 2009 (the "2009 Convertible Notes"). Dilutive shares associated with the 2009 Convertible Notes are attributable to the underlying principal amounts. As the Company’s weighted average stock price for the three and nine month periods ended September 30, 2013 and 2012 exceeded the conversion prices of the 2011 Convertible Notes, dilutive shares associated with the 2011 Convertible Notes, which are attributable to the weighted average premium value, in shares, of the conversion shares underlying the 2011 Convertible Notes in excess of the respective principal amounts thereof, have been included in the Company's share count for the corresponding periods.

The 2011 Convertible Notes consist of $105.3 million principal amount of 4.0% senior convertible notes, convertible at $15.76 per share (the "2011 4.0% Notes") and $97.0 million principal amount of 4.25% senior convertible notes, convertible at $15.48 per share (the "2011 4.25% Notes"). The calculations underlying the number of premium shares included in the Company’s diluted share count for the periods indicated are as follows (in thousands, except per share amounts):



	As of and for the Three Months Ended September 30,								As of and for the Nine Months Ended September 30,
	2013				2012				2013				2012
	2011 4.0% Notes		2011 4.25% Notes		2011 4.0% Notes		2011 4.25% Notes		2011 4.0% Notes		2011 4.25% Notes		2011 4.0% Notes		2011 4.25% Notes
Number of conversion shares, principal amount	6,683		6,268		6,683		6,268		6,683		6,268		6,683		6,268
Weighted average actual per share price	$	32.84	$	32.84	$	17.89	$	17.89	$	30.59	$	30.59	$	17.40	$	17.40
Weighted average premium value	$	114,176	$	108,864	$	14,208	$	15,106	$	99,104	$	94,728	$	10,975	$	12,073
Weighted average equivalent premium shares	3,476		3,314		794		845		3,240		3,097		631		694

See Note 10 - Debt for additional information.