Earnings Per Share



	Three Months Ended
	September 30, 2011					September 30, 2010
	Income		Shares (millions)	Per Share		Income			Shares (millions)	Per Share
Net income attributable to Colgate-Palmolive Company	$	643				$	619
Preferred dividends	—					(9		)
Basic EPS	643		486.7	$	1.32	610			486.0	$	1.26
Stock options and restricted stock			3.8						3.8
Convertible preference stock	—		—			9			19.7
Diluted EPS	$	643	490.5	$	1.31	$	619		509.5	$	1.21

For the three months ended September 30, 2011 and 2010, the average number of stock options that were anti-dilutive and not included in diluted earnings per share calculations were 1,202,090 and 4,248,553, respectively.



	Nine Months Ended
	September 30, 2011					September 30, 2010
	Income		Shares (millions)	Per Share		Income			Shares (millions)	Per Share
Net income attributable to Colgate-Palmolive Company	$	1,841				$	1,579
Preferred dividends	—					(25		)
Basic EPS	1,841		489.9	$	3.76	1,554			489.9	$	3.17
Stock options and restricted stock			3.5						4.7
Convertible preference stock	—		—			25			20.1
Diluted EPS	$	1,841	493.4	$	3.73	$	1,579		514.7	$	3.07

For the nine months ended September 30, 2011 and 2010, the average number of stock options that were anti-dilutive and not included in diluted earnings per share calculations were 422,263 and 49,904, respectively.

As a result of recent rules issued by the Internal Revenue Service related to employer stock held in defined contribution plans, the Company issued a notice of redemption with respect to the 2,405,192 shares of preference stock outstanding on December 29, 2010. At the direction of the Company’s ESOP trustee, the shares of preference stock were converted into 19,241,536 shares of common stock.