Note 11: Earnings Per Share

The calculation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in millions, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010

Net income	$	164.5	$	148.7	$	422.1	$	398.2

Average shares outstanding (basic)		245.1		242.2		244.9		243.2
Common stock equivalents		2.0		2.3		2.1		2.4
Incremental shares from assumed conversion of convertible debentures		–		1.0		2.8		1.4
Diluted shares		247.1		245.5		249.8		247.0

Basic earnings per share	$	0.67	$	0.61	$	1.72	$	1.64
Diluted earnings per share	$	0.67	$	0.61	$	1.69	$	1.61

The Company's 2.5% Convertible Debentures were included in the calculation of diluted earnings per share for the nine months ended September 30, 2011 and for the three- and nine-months ended September 30, 2010 since the average market price of the Company's common stock exceeded the conversion value of the debentures during those periods.

No treasury shares were acquired during the three- and nine-months ended September 30, 2011. During the nine months ended September 30, 2010, the Company acquired 3,176,705 treasury shares at an average cost of $39.05 per share. No treasury shares were acquired during the three months ended September 30, 2010. A total of 132,153 and 1,283,827 treasury shares were issued during the three- and nine-months ended September 30, 2011, respectively in satisfaction of stock option exercises and vesting of restricted stock units.