Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

Earnings Per Share

Note 9—Earnings Per Share

The Company’s unvested restricted shares and restricted stock units contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The computation below of earnings per share excludes the income attributable to the unvested restricted shares and restricted stock units from the numerator and excludes the dilutive impact of those underlying shares from the denominator.  Stock options are included in the calculation of diluted earnings per share utilizing the treasury stock method and performance share awards are included in the calculation of diluted earnings per share using the contingently issuable method.  Neither is considered to be a participating security as they do not contain non-forfeitable dividend rights.

The following reflects the Income from continuing operations and share data used in the basic and diluted earnings per share computations using the two-class method:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions except share amounts)	2013			2012			2013			2012
Numerator:
Income from continuing operations	$	8.2		$	89.4		$	63.5		$	149.4
Less: dividends declared - common stock outstanding, unvested restricted shares and restricted share units	(12.8		)	(11.3		)	(25.6		)	(22.5		)
Undistributed earnings	(4.6		)	78.1			37.9			126.9
Percent allocated to common shareholders (1)	99.5		%	99.4		%	99.5		%	99.4		%
	(4.6		)	77.6			37.7			126.2
Add: dividends declared - common stock	12.7			11.2			25.5			22.4
Numerator for basic and diluted EPS	$	8.1		$	88.8		$	63.2		$	148.6
Denominator (in thousands):
Denominator for basic EPS: weighted-average common shares outstanding	63,409			62,419			63,343			62,166
Effect of dilutive securities:
Performance awards	353			505			353			505
Stock options	933			873			924			812
Denominator for diluted EPS: adjusted weighted average common shares outstanding and assumed conversion	64,695			63,797			64,620			63,483
Per share income from continuing operations:
Basic	$	0.13		$	1.42		$	1.00		$	2.39
Diluted	$	0.13		$	1.39		$	0.98		$	2.34

(1) Basic weighted-average common shares outstanding	63,409		62,419		63,343		62,166
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units	63,737		62,783		63,670		62,529
Percent allocated to common shareholders	99.5	%	99.4	%	99.5	%	99.4	%

To calculate earnings per share for Income from discontinued operations and for Net income, the denominator for both basic and diluted earnings per share is the same as used in the above table. Income from discontinued operations and Net income were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions except share amounts)	2013		2012		2013			2012
Income from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	—	$	3.4	$	(0.1	)	$	3.4
Net income attributable to common shareholders for basic and diluted earnings per share	$	8.1	$	92.2	$	63.1		$	151.9
Antidilutive stock options excluded from EPS calculation(2)	—		—		—			—

(2)Represents stock options excluded from the calculation of diluted earnings per share as such options had exercise prices in excess of the weighted-average market price of the Company’s common stock during these periods. Amounts in thousands.