Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2013

Earnings (Loss) Per Share

NOTE 7 – EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share (“EPS”) is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is computed based on the weighted average number of shares of common stock outstanding for the period plus the effect of dilutive potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options, performance-based restricted stock unit awards, and restricted stock units and reflect the potential dilution that could occur if these awards were issued and converted into common stock. We use the treasury stock method to determine the potentially dilutive impact of our employee stock options and restricted stock units, and the contingently issuable method for our performance-based restricted stock unit awards. For the three months ended June 30, 2013 and 2012, options to purchase 1.2 million and 2.3 million shares of the Company’s common stock, respectively, had an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation of diluted EPS. For the six months ended June 30, 2013 and 2012, options to purchase 1.2 million and 2.1 million shares of the Company’s common stock, respectively, had an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation of diluted EPS.

The following table reconciles net income (loss) to basic and diluted EPS:

	Three Months Ended June 30,						Six Months Ended June 30,
(in millions, except per share data)	2013			2012			2013		2012
Income from continuing operations	$	117.8		$	9.6		$	116.7	$	12.7
Gain (loss) from discontinued operations and disposal, net of tax		(0.3	)		(26.1	)		0.2		(30.2	)
Net income (loss)	$	117.5		$	(16.5	)	$	116.9	$	(17.5	)
Weighted average shares outstanding – Basic		62.5			62.3			62.4		62.2
Dilutive effect of common stock equivalents		0.4			0.3			0.4		0.3
Weighted average shares outstanding – Diluted		62.9			62.6			62.8		62.5
Basic earnings (loss) per share:
Income from continuing operations	$	1.88		$	0.15		$	1.87	$	0.20
Loss from discontinued operations and disposal, net of tax		—			(0.41	)		—		(0.48	)
Net earnings (loss) per share	$	1.88		$	(0.26	)	$	1.87	$	(0.28	)
Diluted earnings (loss) per share:
Income from continuing operations	$	1.87		$	0.15		$	1.86	$	0.20
Loss from discontinued operations and disposal, net of tax		—			(0.41	)		—		(0.48	)
Net earnings (loss) per share	$	1.87		$	(0.26	)	$	1.86	$	(0.28	)