Earnings Per Share and Dividends

6 Months Ended

Jun. 30, 2011

Earnings Per Share and Dividends [Abstract]


2.	Earnings Per Share and Dividends

Earnings Per Share

The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. The treasury stock method assumes proceeds from the exercise price of stock options, the unamortized compensation expense and assumed tax benefits of options and restricted stock are available to acquire shares at an average market price throughout the period, and therefore, reduce the dilutive effect.

For the three months ended June 30, 2011 and 2010, there were 8.2 million and 36.8 million, respectively, of outstanding options to purchase shares of Western Union stock excluded from the diluted earnings per share calculation as their effect was anti-dilutive. For the six months ended June 30, 2011 and 2010, there were 8.0 and 36.2 million, respectively, of outstanding options to purchase shares of Western Union stock excluded from the diluted earnings per share calculation as their effect was anti-dilutive.

The following table provides the calculation of diluted weighted-average shares outstanding (in millions):


	Three Months				Six Months
	Ended				Ended
	June 30,				June 30,
	2011		2010		2011		2010

Basic weighted-average shares outstanding		631.1		669.3		639.0		675.6
Common stock equivalents		4.7		2.3		5.0		2.3

Diluted weighted-average shares outstanding		635.8		671.6		644.0		677.9

Cash Dividends Paid

The Company’s Board of Directors declared quarterly cash dividends of $0.08 per common share in the second quarter of 2011 and $0.07 per common share in the first quarter of 2011, representing $95.0 million in total dividends. Of this amount, $50.3 million was paid on June 30, 2011 and $44.7 million was paid on March 31, 2011. During the first half of 2010, the Company’s Board of Directors declared quarterly cash dividends of $0.06 per common share, representing $80.1 million in total dividends. Of this amount, $39.6 million was paid on June 30, 2010 and $40.5 million was paid on March 31, 2010.