Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

12. Earnings Per Share

The computations of the weighted average shares outstanding for the three months ended March 31, 2014 and 2013 are as follows:

	Three months ended March 31,
(in millions)	2014		2013
Weighted average shares outstanding:
Basic		125.2		111.1
Dilutive share-based awards (1)		1.0		—
Convertible debt		2.6		—
Diluted		128.8		111.1

(1) The three months ended March 31, 2013 excludes 0.8 million potentially dilutive share-based awards as their effect would be anti-dilutive.

Because it is the Company’s intention to redeem the principal amount of the Senior Subordinated 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 March 31, 2014, the 2034 Convertible Notes have been excluded from the computation of diluted earnings per share as the effect would be antidilutive, as the initial conversion price exceeded the average market price of the Company’s common stock during the three months ended March 31, 2014. As of March 31, 2014, there were 5.3 million restricted share awards with performance-based vesting targets that were not met and as such, have been excluded from the computation of diluted earnings per share.