Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

11. Earnings Per Share

The computations of the weighted average shares outstanding for the three and nine months ended September 30, 2012 and 2011 are as follows:

	Three months  ended September 30,				Nine months  ended September 30,
(in millions)	2012		2011		2012		2011
Weighted average shares outstanding:
Basic		76.6		87.7		79.3		88.4
Dilutive share-based awards		0.6		0.5		0.5		0.5
Diluted		77.2		88.2		79.8		88.9

Because it is the Company’s intention to redeem the principal amount of the Convertible Notes in cash, the treasury stock method is used for determining potential dilution in the diluted earnings per share computation. For the three months ended September 30, 2012, the Convertible Notes have been excluded from the computation of diluted earnings per share as the effect would be antidilutive as the conversion price of the Convertible Notes exceeded the average market price of the Company’s common stock for the three months ended September 30, 2012. Additionally, stock options and warrants to purchase approximately 2.4 million shares of the Company’s common stock at September 30, 2011 had exercise prices that exceeded the average market price of the Company’s common stock for the three months ended September 30, 2011. As such, these share-based awards did not affect the computation of diluted earnings per share.