Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Note 8 – Earnings Per Share

The following tables provide a reconciliation of the numerators used in calculating earnings/(loss) per share attributable to common shareholders:
	Three Months Ended					Six Months Ended
	June 30					June 30
(Dollars in thousands)	2012		2011			2012	2011
Income/(loss) from continuing operations	$	(122,417)	$	19,165	$	(88,611)	$	61,297
Income/(loss) from discontinued operations, net of tax		487		3,671		52		4,541
Net income/(loss)		(121,930)		22,836		(88,559)		65,838
Net income attributable to noncontrolling interest		2,844		2,844		5,688		5,688
Net income/(loss) available to common shareholders	$	(124,774)	$	19,992	$	(94,247)	$	60,150
Income/(loss) from continuing operations	$	(122,417)	$	19,165	$	(88,611)	$	61,297
Net income attributable to noncontrolling interest		2,844		2,844		5,688		5,688
Net income/(loss) from continuing operations available to common shareholders	$	(125,261)	$	16,321	$	(94,299)	$	55,609

The component of Income/(loss) from continuing operations attributable to FHN as the controlling interest holder of the subsidiary preferred stock issued by First Horizon Preferred Funding, LLC, First Horizon Preferred Funding II, LLC, and FTBNA was $(125.3) million and $16.3 million during the three months ended June 30, 2012 and 2011, respectively, and $(94.3) million and $55.6 million during the six months ended June 30, 2012 and 2011, respectively.

The following table provides a reconciliation of weighted average common shares to diluted average common shares:
	Three Months Ended			Six Months Ended
	June 30			June 30
(Shares in thousands)		2012	2011	2012	2011
Weighted average common shares outstanding - basic	249,104		261,289	251,317	261,233
Effect of dilutive securities	-		1,467	-	2,457
Weighted average common shares outstanding - diluted	249,104		262,756	251,317	263,690

The following tables provide a reconciliation of earnings/(loss) per common and diluted share:
	Three Months Ended				Six Months Ended
	June 30					June 30
Earnings/(loss) per common share:	2012		2011		2012		2011
Income/(loss) per share from continuing operations available to common shareholders	$	(0.50)	$	0.06	$	(0.38)	$	0.21
Income/(loss) per share from discontinued operations, net of tax		-		0.02		-		0.02
Net income/(loss) per share available to common shareholders	$	(0.50)	$	0.08	$	(0.38)	$	0.23
Diluted earnings/(loss) per common share:
Diluted income/(loss) per share from continuing operations available to common shareholders	$	(0.50)	$	0.06	$	(0.38)	$	0.21
Diluted income/(loss) per share from discontinued operations, net of tax		-		0.02		-		0.02
Diluted income/(loss) per share available to common shareholders	$	(0.50)	$	0.08	$	(0.38)	$	0.23

For the three andsix months ended June 30, 2012, all potential common shares were antidilutive due to the net loss attributable to common shareholders for these periods. For the three and six months ended June 30, 2011, the dilutive effect for all potential common shares was 1.5 million and 2.5 million, respectively.10.5million and 10.8million stock options, with weighted average exercise prices of $21.54and $24.44per share for the three months ended June 30, 2012 and 2011, respectively, were excluded from diluted shares because including such shares would be antidilutive. 10.6million and 10.2 million stock options, with weighted averageexercise prices of $22.26and $26.12per share for the six months ended June 30, 2012 and 2011, respectively, were also excluded from diluted shares. Other equity awards of 3.4million and .4 million for the three months ended June 30, 2012 and 2011, respectively, were excluded from diluted shares while other equity awards of 3.5million and .2 million for the six months ended June 30, 2012 and 2011, respectively, were excluded from diluted shares because including such shares would have been antidilutive. The CPP common stock warrant, which was dilutive for the six-month period ended June 30, 2011, was repurchased in2011 and is not included in diluted shares in 2012.