Earnings per Share Attributable to RR Donnelley Common Shareholders

9 Months Ended

Sep. 30, 2012

Earnings per Share Attributable to RR Donnelley Common Shareholders

10. Earnings per Share Attributable to RR Donnelley Common Shareholders

Basic earnings per share is calculated by dividing net earnings attributable to RR Donnelley common shareholders by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock units and performance share units. Performance share units are considered anti-dilutive and excluded if the performance targets upon which the issuance of the shares is contingent have not yet been achieved as of the end of the current period. Additionally, stock options are considered anti-dilutive when the exercise price exceeds the average market value of the Company’s stock price during the applicable period.

As discussed in Note 9, during 2011 the Company entered into an ASR with an investment bank under which the Company repurchased $500.0 million of its common stock. Both the initial and final delivery of shares resulted in a reduction of the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted net earnings per share.

The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the three and nine months ended September 30, 2012 and 2011 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.39	$	0.84	$	1.10	$	1.03
Diluted	$	0.39	$	0.83	$	1.09	$	1.02
Dividends declared per common share	$	0.26	$	0.26	$	0.78	$	0.78
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	71.4	$	158.0	$	197.6	$	204.1
Denominator:
Weighted average number of common shares outstanding		180.8		188.1		180.3		197.2
Dilutive options and awards		1.6		2.7		1.8		2.6
Diluted weighted average number of common shares outstanding		182.4		190.8		182.1		199.8
Weighted average number of anti-dilutive share-based awards:
Restricted stock units		2.0		2.8		2.2		3.0
Performance share units		0.5		0.2		0.5		0.2
Stock options		4.4		3.6		4.3		3.5
Total		6.9		6.6		7.0		6.7