EARNINGS PER SHARE



(in millions, except per share data)	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013		2012
Net income (loss) from continuing operations attributable to Terex Corporation common stockholders	$	89.3		$	30.2	$	131.5	$	134.3
Income (loss) from discontinued operations–net of tax	5.5			—		5.5		2.5
Gain (loss) on disposition of discontinued operations–net of tax	(0.4		)	—		2.6		2.3
Net income (loss) attributable to Terex Corporation	$	94.4		$	30.2	$	139.6	$	139.1
Basic shares:
Weighted average shares outstanding	111.3			110.5		111.1		110.3
Earnings per share – basic:
Income (loss) from continuing operations	$	0.80		$	0.27	$	1.19	$	1.22
Income (loss) from discontinued operations–net of tax	0.05			—		0.05		0.02
Gain (loss) on disposition of discontinued operations–net of tax	—			—		0.02		0.02
Net income (loss) attributable to Terex Corporation	$	0.85		$	0.27	$	1.26	$	1.26
Diluted shares:
Weighted average shares outstanding	111.3			110.5		111.1		110.3
Effect of dilutive securities:
Stock options, restricted stock awards and convertible notes	4.9			2.8		4.9		2.9
Diluted weighted average shares outstanding	116.2			113.3		116.0		113.2
Earnings per share – diluted:
Income (loss) from continuing operations	$	0.77		$	0.27	$	1.13	$	1.19
Income (loss) from discontinued operations–net of tax	0.04			—		0.05		0.02
Gain (loss) on disposition of discontinued operations–net of tax	—			—		0.02		0.02
Net income (loss) attributable to Terex Corporation	$	0.81		$	0.27	$	1.20	$	1.23

The following table provides information to reconcile amounts reported on the Condensed Consolidated Statement of Comprehensive Income to amounts used to calculate earnings per share attributable to Terex Corporation common stockholders (in millions):

Reconciliation of Amounts Attributable to Common Stockholders

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Income (loss) from continuing operations	$	88.6	$	28.3	$	127.5	$	130.4
Noncontrolling interest attributed to (income) loss from continuing operations	0.7		1.9		4.0		3.9
Income (loss) from continuing operations attributable to common stockholders	$	89.3	$	30.2	$	131.5	$	134.3

Weighted average options to purchase 0.2 million of the Company’s common stock, par value $0.01 per share (“Common Stock”), were outstanding during each of the three and nine months ended September 30, 2013 and 2012, respectively, but were not included in the computation of diluted shares as the effect would be anti-dilutive. Weighted average restricted stock awards of 0.4 million shares were outstanding during the three and nine months ended September 30, 2013, respectively, but were not included in the computation of diluted shares because the effect would be anti-dilutive or performance targets were not yet achieved for awards contingent upon performance. Weighted average restricted stock awards of 0.3 million shares were outstanding during the three and nine months ended September 30, 2012, respectively, but were not included in the computation of diluted shares because the effect would be anti-dilutive or performance targets were not yet achieved for awards contingent upon performance. ASC 260, “Earnings per Share,” requires that employee stock options and non-vested restricted shares granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future services that the Company has not yet recognized and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The Company includes the impact of pro forma deferred tax assets in determining the amount of tax benefits for potential windfalls and shortfalls (the differences between tax deductions and book expense) in this calculation.

The 4% Convertible Senior Subordinated Notes due 2015 (the “4% Convertible Notes”) described in Note K – “Long-Term Obligations” are dilutive to the extent the volume-weighted average price of the Common Stock for the period evaluated was greater than $16.25 per share and earnings from continuing operations were positive. The volume-weighted average price of the Common Stock was greater than $16.25 per share for each of the three and nine months ended September 30, 2013 and 2012. The number of shares that were contingently issuable for the 4% Convertible Notes during the three and nine months ended September 30, 2013 was 3.8 million. The number of shares that were contingently issuable for the 4% Convertible Notes during the three and nine months ended September 30, 2012 was 2.2 million. In August 2012, the Company repurchased approximately 25% of the principal amount outstanding of the 4% Convertible Notes. See Note K – “Long-Term Obligations.”