Earnings Per Share

6 Months Ended

Jun. 30, 2011


5.	EARNINGS PER SHARE

Basic and diluted earnings per share are calculated by dividing net income attributable to Willis Group Holdings by the weighted average number of shares outstanding during each period. The computation of diluted earnings per share reflects the potential dilution that could occur if dilutive securities and other contracts to issue shares were exercised or converted into shares or resulted in the issuance of shares that then shared in the net income of the Company.

At June 30, 2011, time-based and performance-based options to purchase 9.9 million and 7.5 million (2010: 12.3 million and 8.6 million) shares, respectively, and 1.4 million restricted stock units (2010: 1.7 million), respectively, were outstanding.

Basic and diluted earnings per share are as follows:


	Three months ended					Six months ended
	June 30,					June 30,
	2011			2010		2011			2010
	(millions, except per share data)

Net income attributable to Willis Group Holdings	$	85		$	89	$	119		$	293

Basic weighted average number of shares outstanding		172			170		172			169
Dilutive effect of potentially issuable shares		4			1		3			2

Diluted weighted average number of shares outstanding		176			171		175			171

Basic earnings per share:
Net income attributable to Willis Group Holdings shareholders	$	0.49		$	0.52	$	0.69		$	1.73

Dilutive effect of potentially issuable shares		(0.01	)		—		(0.01	)		(0.02	)

Diluted earnings per share:
Net income attributable to Willis Group Holdings shareholders	$	0.48		$	0.52	$	0.68		$	1.71

Options to purchase 2 million shares were not included in the computation of the dilutive effect of stock options for the three and six months ended June 30, 2011 because the effect was antidilutive (three and six months ended June 30, 2010: 13 million).