Earnings per Share

9 Months Ended

Sep. 30, 2015

9. Earnings per Share

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 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 of the Company’s stock price during the applicable period.

During the nine months ended September 30, 2015 and 2014, no shares of common stock were purchased by the Company; however, shares were withheld for tax liabilities upon the vesting of equity awards. During the three months ended June 30, 2015, the Company issued 8.0 million shares of stock in conjunction with the Courier acquisition. During the three months ended March 31, 2014, the Company issued stock in conjunction with the Consolidated Graphics and Esselte acquisitions of 16.0 million and 1.0 million shares, respectively.

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, 2015 and 2014 were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Net earnings per share attributable to RR Donnelley common shareholders:
Basic	$	0.07	$	0.31	$	0.39	$	0.49
Diluted	$	0.07	$	0.31	$	0.39	$	0.49
Dividends declared per common share	$	0.26	$	0.26	$	0.78	$	0.78
Numerator:
Net earnings attributable to RR Donnelley common shareholders	$	14.3	$	62.2	$	80.1	$	97.9
Denominator:
Weighted average number of common shares outstanding		209.2		200.3		204.3		197.9
Dilutive options and awards		1.1		1.3		1.2		1.5
Diluted weighted average number of common shares outstanding		210.3		201.6		205.5		199.4
Weighted average number of anti-dilutive share-based awards:
Stock options		2.0		3.4		2.0		3.4
Performance share units		1.2		1.0		1.1		1.0
Restricted stock units		—		1.2		—		1.2
Total		3.2		5.6		3.1		5.6