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Earnings Per Share
 6 Months Ended
Jun. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
EARNINGS PER SHARE
Basic earnings per share is calculated by dividing net income attributable to common shareholders by the weighted average number of shares outstanding during the period, excluding treasury shares. The weighted average number of shares outstanding during the period also includes participating securities such as unvested time-based restricted stock awards and restricted stock units that pay dividend equivalents. Diluted earnings per share is computed using the treasury stock method, which requires computing share equivalents and dividing net income attributable to common shareholders by the total weighted average number of shares and share equivalents outstanding during the period.
The calculation of earnings per share is as follows:
In millions, except per share data
Net Income
Attributable to
Common Shareholders
 
Weighted Average Number of Shares
 
Per Share Amount
For the three months ended June 30, 2012:
 
 
 
 
 
Basic earnings per share

$153.9

 
453.8

 

$0.34

Dilutive effect of share-based awards
—

 
1.5

 
—

Diluted earnings per share

$153.9

 
455.3

 

$0.34

For the three months ended June 30, 2011:
 
 
 
 
 
Basic earnings per share

$183.0

 
465.5

 

$0.39

Dilutive effect of share-based awards
—

 
1.9

 
—

Diluted earnings per share

$183.0

 
467.4

 

$0.39

 
 
 
 
 
 
In millions, except per share data
Net Income
Attributable to
Common Shareholders
 
Weighted Average Number of Shares
 
Per Share Amount
For the six months ended June 30, 2012:
 
 
 
 
 
Basic earnings per share

$347.8

 
454.0

 

$0.77

Dilutive effect of share-based awards
—

 
1.6

 
—

Diluted earnings per share

$347.8

 
455.6

 

$0.76

For the six months ended June 30, 2011:
 
 
 
 
 
Basic earnings per share

$360.5

 
467.7

 

$0.77

Dilutive effect of share-based awards
—

 
2.0

 
—

Diluted earnings per share

$360.5

 
469.7

 

$0.77


See Note 6, “Share-based Compensation,” for a summary of share awards outstanding under the company’s share-based payment programs. These programs could result in the issuance of common shares that would affect the measurement of basic and diluted earnings per share.
There were no options to purchase or options outstanding for the six months ended June 30, 2012 (six months ended June 30, 2011: 4.9 million share options at a weighted average exercise price of £19.19) that were not included in the computation of diluted earnings per share because the options’ exercise price were greater than the average market price of the shares and therefore their inclusion would have been anti-dilutive.