EARNINGS PER SHARE ("EPS") (Notes)

12 Months Ended

Dec. 31, 2012

Notes To Financial Statements [Abstract]

EARNINGS PER SHARE ("EPS")

NOTE 5. EQUITY AND EARNINGS PER SHARE (“EPS”)

Equity

During the year ended December 31, 2012, we granted 778,724 restricted stock awards and 108,164 restricted stock units. For information related to stock-based award plans, see Note 17. Stock-Based Award Plans.

During the year ended December 31, 2012, we withheld 280,831 shares of our common stock in connection with tax withholdings for vested stock awards.

In 2012, we declared quarterly cash dividends totaling $0.60 per share and we repurchased 5.3 million shares of our common stock at a weighted average cost of $16.55 per share for an aggregate amount of approximately $88 million. In 2011, we declared quarterly cash dividends totaling $0.30 per share and we repurchased 14.4 million shares of our common stock at a weighted average cost of $15.99 per share for an aggregate amount of approximately $230 million. In 2010, we declared a special cash dividend of $1.50 per share and we repurchased 6.1 million shares of our common stock at a weighted average cost of $15.56 per share for an aggregate amount of approximately $95 million.

As of December 31, 2012, there were 159 million shares of common stock issued of which 132 million shares were outstanding; the remaining 27 million shares of common stock issued but not outstanding were held as treasury stock. As of December 31, 2012, there were 2 million shares of common stock reserved and available for future issuance under equity plans.

As of December 31, 2012, there were 10 million shares of preferred stock authorized, with none issued or outstanding. The preferred stock may be divided into a number of series as defined by our Board of Directors. The Board of Directors are authorized to fix the rights, powers, preferences, privileges and restrictions granted to and imposed upon the preferred stock upon issuance.

Earnings Per Share

Per share data is based on the weighted average number of outstanding shares of our common stock, par value $0.10 per share, during the relevant period. Basic earnings per share are calculated using only the weighted average number of outstanding shares of common stock. Diluted earnings per share computations, as calculated under the treasury stock method, include the weighted average number of shares of additional outstanding common stock issuable for stock options, restricted stock awards, restricted stock units and warrants whether or not currently exercisable. Diluted earnings per share for all the periods presented does not include securities if their effect was anti-dilutive (in millions, except per share amounts).

	For the Years Ended December 31,
	2012			2011		2010
Net income from continuing operations	$	116		$	79	$	30
Net (loss) income from discontinued operations	(2		)	140		32
Net income attributable to Covanta Holding Corporation	$	114		$	219	$	62
Basic earnings per share:
Weighted average basic common shares outstanding	132			141		153
Continuing operations	$	0.88		$	0.56	$	0.19
Discontinued operations	(0.01		)	0.99		0.21
Covanta Holding Corporation	$	0.87		$	1.55	$	0.40
Diluted earnings per share:
Weighted average basic common shares outstanding	132			141		153
Dilutive effect of stock options	—			—		—
Dilutive effect of restricted stock	1			1		1
Dilutive effect of convertible debentures	—			—		—
Dilutive effect of warrants	—			—		—
Weighted average diluted common shares outstanding	133			142		154
Continuing operations	$	0.87		$	0.56	$	0.19
Discontinued operations	(0.01		)	0.98		0.21
Covanta Holding Corporation	$	0.86		$	1.54	$	0.40
Securities excluded from the weighted average dilutive common shares outstanding because their inclusion would have been anti-dilutive:
Stock options	2			2		2
Restricted stock	—			—		—
Restricted stock units	—			—		—
Warrants	29			28		27

In 2009, we entered into privately negotiated warrant transactions in connection with the issuance of 3.25% Cash Convertible Senior Notes due 2014 (the “3.25% Notes”). These warrants could have a dilutive effect to the extent that the price of our common stock exceeds the applicable strike price of $22.20. As of December 31, 2012, the warrants did not have a dilutive effect on earnings per share because the average market price during the periods presented was below the strike price.