Earnings Per Share

9 Months Ended

Sep. 30, 2011

Note 7. Earnings Per Share

The computation of basic and diluted earnings per share (EPS) for income from continuing operations is as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In millions, except per share amounts)
Numerator
Numerator for basic and diluted earnings per common share — income from continuing operations attributable to Goodrich	$	201.1		$	160.1		$	572.5		$	429.0
Percentage allocated to common shareholders (1)		98.6	%		98.6	%		98.6	%		98.6	%

Numerator for basic and diluted earnings per common share	$	198.4		$	157.8		$	564.6		$	423.0

Denominator
Denominator for basic earnings per common share — weighted-average shares		125.1			125.3			125.1			125.2
Effect of dilutive securities:
Stock options, employee stock purchase plan and other deferred compensation shares		1.0			1.1			1.0			1.2

Denominator for diluted earnings per common share — adjusted weighted-average shares and assumed conversion		126.1			126.4			126.1			126.4

Per common share income from continuing operations
Basic	$	1.59		$	1.26		$	4.51		$	3.38

Diluted	$	1.57		$	1.25		$	4.48		$	3.35

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(1) Basic weighted-average common shares outstanding		125.1			125.3			125.1			125.2
Basic weighted-average common shares outstanding and unvested restricted share units expected to vest		126.9			127.1			126.9			127.0

Percentage allocated to common shareholders		98.6	%		98.6	%		98.6	%		98.6	%

The Company’s unvested restricted share units contain rights to receive nonforfeitable dividend equivalents, and thus, are participating securities requiring the two-class method of computing EPS. The calculation of EPS for common stock shown above excludes the income attributable to the unvested restricted share units from the numerator and excludes the dilutive impact of those units from the denominator.

At September 30, 2011 and 2010, the Company had 3.3 million and 3.9 million, respectively, of outstanding stock options. Stock options are included in the diluted earnings per share calculation using the treasury stock method, unless the effect of including the stock options would be anti-dilutive. For the nine months ended September 30, 2011 and 2010, 0.7 million anti-dilutive stock options were excluded from the diluted EPS calculation.

During the nine months ended September 30, 2011 and 2010, the Company issued 1.4 million and 2.3 million, respectively, of shares of common stock pursuant to stock option exercises and other share-based compensation plans.

The Company’s share repurchase program was approved by the Board of Directors for $1.1 billion in total. During the nine months ended September 30, 2011 and 2010, the Company repurchased 1 million and 1.1 million shares, respectively. From inception of the program through September 30, 2011, the Company has repurchased 9.8 million shares for approximately $621 million under its share repurchase program.