Footnote 9 — Earnings per Share

The calculation of basic and diluted earnings per share is shown below for the three and six months ended June 30, (in millions, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010

Numerator for basic and diluted earnings per share:
Net income	$	146.7	$	130.4	$	222.4	$	188.8
Dividends and equivalents for share-based awards expected to be forfeited		0		0.1		0		0.1

Net income for basic earnings per share	$	146.7	$	130.5	$	222.4	$	188.9
Effect of Preferred Securities (1)		3.5		0		0		0

Net income for diluted earnings per share	$	150.2	$	130.5	$	222.4	$	188.9

Denominator:
Weighted-average shares outstanding		291.4		278.3		291.3		278.2
Share-based payment awards classified as participating securities		2.9		3.2		2.9		3.1

Denominator for basic earnings per share		294.3		281.5		294.2		281.3
Dilutive securities (2)		2.3		2.8		2.7		2.3
Convertible Notes (3)		0		19.2		0.5		17.8
Warrants (4)		0		11.9		0		10.2
Preferred Securities (1)		8.3		0		0		0

Denominator for diluted earnings per share		304.9		315.4		297.4		311.6

Basic earnings per share	$	0.50	$	0.46	$	0.76	$	0.67

Diluted earnings per share	$	0.49	$	0.41	$	0.75	$	0.61

(1)

The Preferred Securities are dilutive for the three months ended June 30, 2011, and as a result, the interest expense included in net income has been added back on an after-tax basis and the shares of common stock into which the Preferred Securities are convertible have been included in the denominator for diluted earnings per share. The Preferred Securities are anti-dilutive for the six months ended June 30, 2011 as well as for the three and six months ended June 30, 2010, and therefore have been excluded from diluted earnings per share. Had the Preferred Securities been included in the diluted earnings per share calculation, net income for three month period ended June 30, 2010 would be increased by $3.5 million and net income for each six month period ended June 30, 2011 and 2010 would be increased by $7.0 million. Weighted-average shares outstanding would be increased by 8.3 million shares for the three and each of the six month periods.

(2)

Dilutive securities include "in the money" options, non-participating restricted stock units and performance stock units. The weighted-average shares outstanding exclude the effect of approximately 11.9 million and 12.4 million stock options for the three months ended June 30, 2011 and 2010, respectively, and 12.1 million and 12.8 million stock options for the six months ended June 30, 2011 and 2010, respectively, because such options were anti-dilutive.

(3)

The Convertible Notes were dilutive to the extent the average price during the period was greater than $8.61, the conversion price of the Convertible Notes, and the Convertible Notes are only dilutive for the "in the money" portion of the Convertible Notes that could be settled with the Company's stock. The Convertible Notes were dilutive for the three and six month periods ended June 30, 2011 and 2010, as the average price of the Company's common stock during these periods was greater than $8.61. As disclosed in Footnote 5 of the Notes to Condensed Consolidated Financial Statements, substantially all of the remaining outstanding principal amount of the Convertible Notes was extinguished in March 2011, and as such, dilution for the three and six months ended June 30, 2011 takes into consideration the period of time the Convertible Notes were outstanding. The Convertible Notes will not meaningfully impact diluted average shares outstanding in subsequent periods because the maximum amount of shares required to settle the "in the money" portion of the $0.1 million principal amount of the Convertible Notes outstanding as of June 30, 2011 is not material.

(4)

The warrant transaction was settled during September 2010 and as such the warrants did not impact diluted average shares outstanding in periods subsequent thereto. The warrants were dilutive for the three and six months ended June 30, 2010, as the average price of the Company's common stock during those periods was greater than $11.59, the exercise price of the warrants.