EARNINGS PER SHARE AND SHAREHOLDERS’ EQUITY

Earnings per Share

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations:



		Continuing Operations				Discontinued Operations						Total
Three Months Ended September 30, 2011	Shares	Income		Per Share Amount		Income			Per Share Amount			Per Share Amount
Basic EPS	120.1	$	213.7	1.78		$	—		$	—		$	1.78
Effect of dilutive securities:
Stock-based compensation arrangements	1.7	—		(0.03	)	—			—			(0.03		)
Convertible Debt	—	—		—		—			—			—
Diluted EPS	121.8	$	213.7	1.75		$	—		$	—		$	1.75
Nine Months Ended September 30, 2011
Basic EPS	120.9	$	280.3	2.32		$	—		$	—		$	2.32
Effect of dilutive securities:
Stock-based compensation arrangements	2.1	—		(0.04	)	—			—			(0.04		)
Convertible Debt	—	—		—		—			—			—
Diluted EPS	123.0	$	280.3	2.28		$	—		$	—		$	2.28
Three Months Ended September 30, 2010
Basic EPS	123.2	$	35.0	0.28		$	(6.2	)	(0.05		)	$	0.23
Effect of dilutive securities:
Stock-based compensation arrangements	2.2	—		—		—			—			—
Diluted EPS	125.4	$	35.0	0.28		$	(6.2	)	(0.05		)	$	0.23
Nine Months Ended September 30, 2010
Basic EPS	123.5	$	71.8	0.58		$	19.7		0.16			$	0.74
Effect of dilutive securities:
Stock-based compensation arrangements	2.3	—		(0.01	)	—			—			(0.01		)
Diluted EPS	125.8	$	71.8	0.57		$	19.7		0.16			$	0.73

The diluted EPS calculation for the three and nine months ended September 30, 2011 excluded the effect of 3.9 million outstanding stock options, and for the three and nine months ended September 30, 2010 excluded the effect of 5.8 million outstanding stock options, respectively, because their effect is anti-dilutive. As described more fully in Note 9, the Company issued approximately $125.0 aggregate principal amount of 5.75% Junior Subordinated Convertible Debentures due 2029 (2029 Convertible Debentures). The 2029 Convertible Debentures are convertible, subject to certain conditions, into shares of the Company’s common stock at an initial conversion price of approximately $12.07 per share, or 82.82 shares per one thousand in principal amount of debentures. There were no dilutive shares related to the 2029 Convertible Debentures for the three and nine months ended September 30, 2011.

Shareholders’ Equity

The Company repurchased 2.9 million shares during the nine months ended September 30, 2011 at an average price of $13.46 for a total of $38.7. As of September 30, 2011, the Company has the authority to repurchase 1.8 million additional common shares pursuant to current authorizations. On October 4, 2011, the Company announced that its Board of Directors authorized the Company to repurchase up to an incremental $200 of outstanding common shares from time to time as market and business conditions warrant. The amount and timing of any repurchases will be determined based on an evaluation of a variety of factors at the time of any repurchases. The share buyback authorization does not obligate the Company to acquire any specific number of shares in any period, and may be modified, suspended or discontinued at any time without notice to shareholders.