Earnings Per Share (Notes)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

We compute basic earnings per share by dividing net earnings attributable to Tesoro Corporation stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the effects of potentially dilutive shares, principally consisting of common stock options, non-vested restricted stock, restricted stock units, market stock units and performance share awards outstanding during the period.

Share and per share calculations are presented below (in millions except per share amounts):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Basic:
Net earnings attributable to Tesoro Corporation stockholders	$	387	$	218	$	443	$	325
Weighted average common shares outstanding	139.6		142.6		139.5		142.1
Basic Earnings Per Share	$	2.77	$	1.54	$	3.18	$	2.29
Diluted:
Net earnings attributable to Tesoro Corporation stockholders	$	387	$	218	$	443	$	325
Weighted average common shares outstanding	139.6		142.6		139.5		142.1
Common stock equivalents	0.9		1.8		1.7		2.1
Total diluted shares	140.5		144.4		141.2		144.2
Diluted Earnings Per Share	$	2.75	$	1.52	$	3.14	$	2.26

Potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share, as the effect of including such securities would have been anti-dilutive, were as follows (in millions):

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2012	2011	2012	2011
Stock options (a)	2.8	3.1	2.9	3.1

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(a) Stock options presented above were excluded as the exercise prices were greater than the average market price of the common stock during each respective reporting period.