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Earnings per Share and Share Repurchases
 6 Months Ended
Jun. 30, 2011
Earnings Per Share Reconciliation [Abstract]  
Earnings per Share and Share Repurchases
EARNINGS PER SHARE AND SHARE REPURCHASES
We compute earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Our participating securities are our grants of restricted stock and restricted stock units which contain non-forfeitable rights to dividend equivalents.
 
 
Three months ended 
June 30,
 
Six months ended 
June 30,
(Shares in millions)
2011
 
2010
 
2011
 
2010
Numerator from continuing operations
 
 
 
 
 
 
 
Income from continuing operations less amounts attributable to noncontrolling interests
$
206.2


 
$
163.7


 
$
358.4


 
$
205.2


Less: Earnings allocated to participating securities
(1.7
)
 
(1.2
)
 
(3.0
)
 
(1.5
)
Income from continuing operations allocated to common shareholders
204.5


 
162.5


 
355.4


 
203.7


Numerator from discontinued operations
 
 
 
 
 
 
 
Income (loss) from discontinued operations plus/less amounts attributable to noncontrolling interests
$
—


 
$
3.9


 
$
(8.6
)
 
$
4.9


Less: Earnings allocated to participating securities
—


 
—


 
—


 
—


Income (loss) allocated to common shareholders
—


 
3.9


 
(8.6
)
 
4.9


Numerator attributable to Avon
 
 
 
 
 
 
 
Income attributable to Avon less amounts attributable to noncontrolling interests
$
206.2


 
$
167.6


 
$
349.8


 
$
210.1


Less: Earnings allocated to participating securities
(1.7
)
 
(1.2
)
 
(3.0
)
 
(1.5
)
Income allocated to common shareholders
204.5


 
166.4


 
346.8


 
208.6


Denominator:
 
 
 
 
 
 
 
Basic EPS weighted-average shares outstanding
430.46


 
428.80


 
430.13


 
428.30


Diluted effect of assumed conversion of stock options
3.29


 
3.30


 
3.29


 
3.30


Diluted EPS adjusted weighted-average shares outstanding
433.75


 
432.10


 
433.42


 
431.60


Earnings Per Common Share from continuing operations:
 
 
 
 
 
 
 
Basic
$
0.48


 
$
0.38


 
$
0.83


 
$
0.48


Diluted
$
0.47


 
$
0.38


 
$
0.82


 
$
0.47


Income (loss) per Common Share from discontinued operations:
 
 
 
 
 
 
 
Basic
$
—


 
$
0.01


 
$
(0.02
)
 
$
0.01


Diluted
$
—


 
$
0.01


 
$
(0.02
)
 
$
0.01


Earnings per Common Share attributable to Avon:
 
 
 
 
 
 
 
Basic
$
0.48


 
$
0.39


 
$
0.81


 
$
0.49


Diluted
$
0.47


 
$
0.39


 
$
0.80


 
$
0.48




At June 30, 2011 and 2010, we did not include stock options to purchase 19.1 million shares and 18.1 million shares of Avon common stock, respectively, in the calculations of diluted earnings per share because their inclusion would have been anti-dilutive.
We purchased approximately 0.3 million shares of Avon common stock for $7.0 during the first six months of 2011, as compared to approximately 0.4 million shares of Avon common stock for $10.9 during the first six months of 2010 under our previously announced share repurchase program and through acquisition of stock from employees in connection with tax payments upon vesting of restricted stock units.