Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share

12. Earnings Per Share

The computations of the weighted average shares outstanding for the three and nine months ended September 30, 2014 and 2013 are as follows:

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2014		2013		2014		2013
Weighted average shares outstanding:
Basic		122.9		111.5		123.7		110.1
Share-based awards		0.1		0.5		0.4		0.6
Convertible debt		2.1		—		2.2		—
Diluted		125.1		112.0		126.3		110.7

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 September 30, 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 September 30, 2014. As of September 30, 2014, there were 5.2 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.

Pro Forma Earnings Per Share

The following table presents unaudited pro forma basic and diluted earnings per share for the three and nine months ended September 30, 2014 and 2013 after giving effect to the Stock Split (see Note 11) and assumes that the Stock Split occurred on January 1, 2013.

	Three months ended September 30,					Nine months ended September 30,
	2014		2013			2014			2013
Pro forma earnings per share (unaudited):
Basic	$	0.59		$	0.57		$	0.89		$	1.01
Diluted	$	0.58		$	0.56		$	0.87		$	1.00