Basic earnings per common share is computed by dividing net earnings attributable to Mylan Inc. common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per common share is computed by dividing net earnings attributable to Mylan Inc. common shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutable securities or instruments, if the impact is dilutive.

On November 15, 2010, pursuant to its terms, the Company's 6.50% mandatorily convertible preferred stock converted into 125,234,172 shares of Mylan's common stock, and Mylan is no longer obligated to pay dividends. With respect to the Company's convertible preferred stock, for the three and six months ended June 30, 2010, the Company considered the effect on diluted earnings per share of the preferred stock conversion feature using the if-converted method. The preferred stock was convertible into between 125,234,172 shares and 152,785,775 shares of the Company's common stock. For the three and six months ended June 30, 2010, the if-converted method was anti-dilutive; therefore, the preferred stock conversion was excluded from the computation of diluted earnings per share.

On September 15, 2008, concurrent with the sale of $575.0 million aggregate principal amount of Cash Convertible Notes due 2015 (the "Cash Convertible Notes"), Mylan entered into a convertible note hedge and warrant transaction with certain counterparties. Pursuant to the warrant transactions, the Company sold to the counterparties warrants to purchase in the aggregate up to approximately 43.2 million shares of Mylan common stock, subject to anti-dilution adjustments substantially similar to the anti-dilution adjustments for the Cash Convertible Notes, which under most circumstances represents the maximum number of shares that underlie the conversion reference rate for the Cash Convertible Notes. The sold warrants have an exercise price of $19.98 and are net share settled, meaning that Mylan will issue a number of shares per warrant corresponding to the difference between its share price at each warrant expiration date and the exercise price. For the three and six months ended June 30, 2011, the average market value of the Company's shares exceeded the exercise price of the warrants, and as a result, the Company has included 6.5 million and 5.9 million shares, respectively, in the calculation of the diluted earnings per share. The average market value of the Company's shares did not exceed the exercise price of the warrants during the three and six months ended June 30, 2010.

On May 3, 2011, the Company announced that its Board of Directors had approved the repurchase of up to $350 million of the Company's common stock and other equity securities, either in the open market or through privately-negotiated transactions. As of June 30, 2011, the repurchase program was completed with approximately 14.8 million shares of common stock being repurchased for approximately $350 million.

Basic and diluted earnings per common share attributable to Mylan Inc. are calculated as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(In thousands, except per share amounts)
Basic earnings attributable to Mylan Inc. common shareholders (numerator):
Net earnings attributable to Mylan Inc. before preferred dividends	$	146,446	$	86,228	$	250,621	$	182,084
Less: Preferred dividends		—		34,759		—		69,518

Net earnings attributable to Mylan Inc. common shareholders	$	146,446	$	51,469	$	250,621	$	112,566

Shares (denominator):
Weighted average common shares outstanding		433,236		308,968		435,192		307,982

Basic earnings per common share attributable to Mylan Inc. common shareholders	$	0.34	$	0.17	$	0.58	$	0.37


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(In thousands, except per share amounts)
Diluted earnings attributable to Mylan Inc. common shareholders (numerator):
Net earnings attributable to Mylan Inc. common shareholders	$	146,446	$	51,469	$	250,621	$	112,566
Add: Preferred dividends		—		—		—		—

Earnings attributable to Mylan Inc. common shareholders and assumed conversions	$	146,446	$	51,469	$	250,621	$	112,566

Shares (denominator):
Weighted average common shares outstanding		433,236		308,968		435,192		307,982
Stock-based awards and warrants		12,155		5,439		11,740		5,195

Total dilutive shares outstanding		445,391		314,407		446,932		313,177

Diluted earnings per common share attributable to Mylan Inc. common shareholders	$	0.33	$	0.16	$	0.56	$	0.36

Additional stock options or restricted stock awards were outstanding during the periods ended June 30, 2011 and June 30, 2010 but were not included in the computation of diluted earnings per share for each respective period, because the effect would be anti-dilutive. Such anti-dilutive stock options or restricted stock awards represented 4.9 million and 4.0 million shares for the three and six months ended June 30, 2011, and they represented 3.5 million and 3.1 million shares for the three and six months ended June 30, 2010.