NOTE 2: EARNINGS PER SHARE

Basic earnings per share is based on the weighted-average number of common shares outstanding. Diluted earnings per share is based on the weighted-average number of common shares outstanding and all potential dilutive common shares. Under the two-class method of computing earnings per share, non-vested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. The Company’s participating securities include restricted stock units (RSUs), deferred shares and shares that were vested, but deferred by the employee. The Company calculated basic and diluted earnings per share under both the treasury stock method and the two-class method. For the three and six months ended June 30, 2011 and 2010, there was no impact in the per share amounts calculated under the two methods; therefore, the treasury stock method is disclosed.

The following represents amounts used in computing earnings per share and the effect on the weighted-average number of shares of dilutive common stock:


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2011		2010			2011		2010
Numerator:
Income used in basic and diluted earnings per share:
Income from continuing operations, net of tax	$	20,275	$	30,414		$	22,787	$	55,308
Income (loss) from discontinued operations		529		(683	)		518		(1,653	)

Net income attributable to Diebold, Incorporated	$	20,804	$	29,731		$	23,305	$	53,655


Denominator (in thousands):
Weighted-average number of common shares used in basic earnings per share		65,028		65,936			65,393		66,121
Effect of dilutive shares		454		700			449		557

Weighted-average number of shares used in diluted earnings per share		65,482		66,636			65,842		66,678


Basic earnings per share:
Net income from continuing operations	$	0.31	$	0.46		$	0.35	$	0.84
Income (loss) from discontinued operations		0.01		(0.01	)		0.01		(0.03	)

Net income attributable to Diebold, Incorporated	$	0.32	$	0.45		$	0.36	$	0.81


Diluted earnings per share:
Net income from continuing operations	$	0.31	$	0.46		$	0.34	$	0.83
Income (loss) from discontinued operations		0.01		(0.01	)		0.01		(0.03	)

Net income attributable to Diebold, Incorporated	$	0.32	$	0.45		$	0.35	$	0.80


Anti-dilutive shares (in thousands):
Anti-dilutive shares not used in calculating diluted weighted-average shares		2,092		2,078			2,057		2,089