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Earnings Per Share
9 Months Ended
Sep. 30, 2011
Earnings Per Share [Abstract] 
Earnings Per Share
Earnings Per Share
Earnings per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis.
Our potentially dilutive securities include potential common shares related to our stock options, restricted stock and restricted stock units. Diluted earnings per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. There were 215,406 potential common shares excluded from Diluted EPS for the three and nine months ended September 30, 2011. There were no potential common shares excluded from Diluted EPS for the three and nine months ended September 30, 2010.
Our non-vested restricted stock awards contain rights to receive non-forfeitable dividends, and thus, are participating securities requiring the two-class method of computing EPS. The two-class method determines EPS by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares of common stock outstanding for the period. In calculating the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average shares outstanding during the period.
Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows:
(in Millions, Except Share and Per Share Data)
Three Months Ended September 30,
 
Nine Months Ended September 30,
2011
 
2010
 
2011
 
2010
Earnings (loss) attributable to FMC stockholders:
 
 
 
 
 
 
 
Income from continuing operations attributable to FMC stockholders
$
93.1

 
$
83.2

 
$
311.2

 
$
251.3

Discontinued operations, net of income taxes
(6.3
)
 
(0.3
)
 
(23.2
)
 
(25.3
)
Net income
$
86.8

 
$
82.9

 
$
288.0

 
$
226.0

Less: Distributed and undistributed earnings allocable to restricted award holders
(0.4
)
 
(0.5
)
 
(1.4
)
 
(1.3
)
Net income allocable to common stockholders
$
86.4

 
$
82.4

 
$
286.6

 
$
224.7

 
 
 
 
 
 
 
 
Basic earnings (loss) per common share attributable to FMC stockholders:
 
 
 
 
 
 
 
Continuing operations
$
1.31

 
$
1.14

 
$
4.35

 
$
3.46

Discontinued operations
(0.09
)
 
—

 
(0.33
)
 
(0.35
)
Net income
$
1.22

 
$
1.14

 
$
4.02

 
$
3.11

 
 
 
 
 
 
 
 
Diluted earnings (loss) per common share attributable to FMC stockholders:
 
 
 
 
 
 
 
Continuing operations
$
1.30

 
$
1.14

 
$
4.33

 
$
3.43

Discontinued operations
(0.09
)
 
(0.01
)
 
(0.32
)
 
(0.35
)
Net income
$
1.21

 
$
1.13

 
$
4.01

 
$
3.08

 
 
 
 
 
 
 
 
Shares (in thousands):
 
 
 
 
 
 
 
Weighted average number of shares of common stock outstanding - Basic
70,971

 
72,341

 
71,301

 
72,373

Weighted average additional shares assuming conversion of potential common shares
563

 
714

 
626

 
926

Shares – diluted basis
71,534

 
73,055

 
71,927

 
73,299