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Earnings per Share and Share Repurchases
 6 Months Ended
Jun. 30, 2013
Earnings Per Share Reconciliation [Abstract]  
Earnings per Share and Share Repurchases
EARNINGS PER SHARE AND SHARE REPURCHASES
We compute earnings (loss) per share ("EPS") 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. We compute basic EPS by dividing net income allocated to common shareholders by the weighted-average number of shares outstanding during the year. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the period.
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(Shares in millions)
 
2013
 
2012
 
2013
 
2012
Numerator from continuing operations:
 
 
 
 
 
 
 
 
Income from continuing operations less amounts attributable to noncontrolling interests
 
$
82.3

 
$
64.0

 
$
69.7

 
$
91.1

Less: Earnings allocated to participating securities
 
(.7
)
 
(1.1
)
 
(.6
)
 
(1.9
)
Income from continuing operations allocated to common shareholders
 
81.6

 
62.9

 
69.1

 
89.2

Numerator from discontinued operations:
 
 
 
 
 
 
 
 
Loss from discontinued operations
 
$
(50.4
)
 
$
(2.4
)
 
$
(51.5
)
 
$
(3.0
)
Less: Loss (earnings) allocated to participating securities
 
.4

 
(.6
)
 
.5

 
(1.1
)
Loss allocated to common shareholders
 
(50.0
)
 
(3.0
)
 
(51.0
)
 
(4.1
)
Numerator attributable to Avon:
 
 
 
 
 
 
 
 
Net income attributable to Avon
 
$
31.9

 
$
61.6

 
$
18.2

 
$
88.1

Less: Earnings allocated to participating securities
 
(.3
)
 
(1.1
)
 
(.2
)
 
(1.9
)
Income allocated to common shareholders
 
31.6

 
60.5

 
18.0

 
86.2

Denominator:
 
 
 
 
 
 
 
 
Basic EPS weighted-average shares outstanding
 
433.5

 
432.0

 
433.0

 
431.6

Diluted effect of assumed conversion of stock options
 
1.1

 
.8

 
.9

 
.8

Diluted EPS adjusted weighted-average shares outstanding
 
434.6

 
432.8

 
433.9

 
432.4

Earnings per Common Share from continuing operations:
 
 
 
 
 
 
 
 
Basic
 
$
.19

 
$
.15

 
$
.16

 
$
.21

Diluted
 
$
.19

 
$
.15

 
$
.16

 
$
.21

Loss per Common Share from discontinued operations:
 
 
 
 
 
 
 
 
Basic
 
$
(.12
)
 
$
(.01
)
 
$
(.12
)
 
$
(.01
)
Diluted
 
$
(.11
)
 
$
(.01
)
 
$
(.12
)
 
$
(.01
)
Earnings per Common Share attributable to Avon:
 
 
 
 
 
 
 
 
Basic
 
$
.07

 
$
.14

 
$
.04

 
$
.20

Diluted
 
$
.07

 
$
.14

 
$
.04

 
$
.20


Amounts in the table above may not necessarily sum due to rounding.
At June 30, 2013 and 2012, we did not include stock options to purchase 18.2 million shares and 22.2 million shares of Avon common stock, respectively, in the calculations of diluted EPS because the exercise prices of those options were greater than the average market price, and therefore, their inclusion would have been anti-dilutive.
We purchased approximately .4 million shares of Avon common stock for $7.6 during the first six months of 2013, as compared to approximately .4 million shares of Avon common stock for $8.1 during the first six months of 2012, primarily through acquisition of stock from employees in connection with tax payments upon vesting of restricted stock units and private transactions with a broker in connection with stock based obligations under our Deferred Compensation Plan. During the first three months of 2012, shares were also purchased under our previously announced share repurchase program, which expired in the fourth quarter of 2012.