Note 15. Earnings per Share

Basic earnings (loss) per share is calculated by dividing net earnings (loss) attributable to RR Donnelley common shareholders by the weighted average number of common shares outstanding for the period. In computing diluted earnings (loss) per share, basic earnings (loss) 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 been achieved and the respective performance period has not been completed 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.

On May 3, 2011, the Board of Directors of the Company approved a program that authorized the repurchase of up to $1.0 billion of the Company’s common stock through December 31, 2012. Share repurchases under the program were allowable through a variety of methods as determined by the Company’s management. The repurchase authorizations did not obligate the Company to acquire any particular amount of common stock or adopt any particular method of repurchase.

As part of the share repurchase program, the Company entered into an accelerated share repurchase agreement (“ASR”) in 2011 with an investment bank under which the Company repurchased $500.0 million of its common stock, receiving an initial delivery of 19.9 million shares on May 10, 2011 and an additional 9.3 million shares on November 17, 2011. 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. No other shares were repurchased under this share repurchase program.

During the years ended December 31, 2013 and 2012, no shares of common stock were purchased by the Company, however, shares were withheld for tax liabilities upon the vesting of equity awards.

The reconciliation of the numerator and denominator of the basic and diluted earnings (loss) per share calculation and the anti-dilutive share-based awards for the years ended December 31, 2013, 2012 and 2011 were as follows:

	2013		2012			2011
Net earnings (loss) per share attributable to RR Donnelley common shareholders
Basic	$	1.16	$	(3.61	)	$	(0.63	)
Diluted	$	1.15	$	(3.61	)	$	(0.63	)
Dividends declared per common share	$	1.04	$	1.04		$	1.04
Numerator:
Net earnings (loss) attributable to RR Donnelley common shareholders	$	211.2	$	(651.4	)	$	(122.6	)
Denominator:
Weighted average number of common shares outstanding		181.9		180.4			193.8
Dilutive options and awards		1.6		—			—
Diluted weighted average number of common shares outstanding		183.5		180.4			193.8
Weighted average number of anti-dilutive share-based awards:
Restricted stock units		1.5		3.6			5.0
Performance share units		0.6		0.4			0.2
Stock options		3.9		4.6			4.0
Total		6.0		8.6			9.2