Stockholders' Equity and Earnings Per Share

6 Months Ended

Jun. 30, 2011

Stockholders' Equity and Earnings Per Share [Abstract]

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

10. STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE

In November 2010, our board of directors approved a share repurchase program pursuant to which we may repurchase up to $400.0 million of our outstanding shares of common stock. From November 2010 to June 30, 2011, we repurchased 10.1 million shares of our stock for $303.2 million at a weighted average cost per share of $30.08. We expect to use the remaining funds in this program to repurchase shares during the remainder of 2011.

We initiated a quarterly cash dividend in July 2003. The dividend has been increased from time to time thereafter. In July 2011, the board of directors approved an increase in the quarterly dividend to $0.22 per share. Cash dividends declared were $151.1 million and $145.3 million for the six months ended June 30, 2011 and 2010, respectively. As of June 30, 2011, we recorded a quarterly dividend payable of $75.3 million to stockholders of record at the close of business on July 1, 2011.

Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including restricted stock and vested but unissued restricted stock units) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding which include, where appropriate, the assumed exercise of employee stock options, unvested restricted stock and unvested restricted stock units. In computing diluted earnings per share, we utilize the treasury stock method.

Earnings per share for the three and six months ended June 30 are calculated as follows (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Basic earnings per share:
Net income attributable to Republic Services, Inc.	$	46,500	$	159,700	$	204,700	$	224,700
Weighted average common shares outstanding		378,197		382,509		380,185		381,968
Basic earnings per share	$	0.12	$	0.42	$	0.54	$	0.59
Diluted earnings per share:
Net income attributable to Republic Services, Inc.	$	46,500	$	159,700	$	204,700	$	224,700
Weighted average common shares outstanding		378,197		382,509		380,185		381,968
Effect of dilutive securities:
Options to purchase common stock		1,826		2,112		1,766		1,918
Unvested restricted stock awards		143		89		122		110
Weighted average common and common equivalent shares outstanding		380,166		384,710		382,073		383,996
Diluted earnings per share	$	0.12	$	0.42	$	0.54	$	0.59
Antidilutive securities not included in the diluted earnings per share calculations:
Options to purchase common stock		3,660		3,940		3,202		4,492