Note 17 - Earnings Per Share

12 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

17.             EARNINGS PER SHARE

Years Ended September 30,	2012			2011			2010
Income from continuing operations available to common shares	$	249.7		$	292.3		$	219.6
Basic weighted average shares outstanding		288.8			298.2			296.3
Dilutive effect of non-participating share-based awards		1.6			1.6			1.5
Diluted weighted average common shares outstanding		290.4			299.8			297.8
Basic EPS from continuing operations	$	0.86		$	0.98		$	0.73
Diluted EPS from continuing operations	$	0.86		$	0.97		$	0.73
Weighted average shares excluded from diluted EPS because the effect would be anti-dilutive:
Share-based awards		11.3			14.7			12.3
Notes		42.6			42.6			42.6
Note hedges		(42.6	)		(42.6	)		(42.6	)
Warrants		42.6			42.6			42.6

Our Notes and warrants were excluded from diluted shares outstanding for 2012, 2011 and 2010 because the conversion price and exercise price exceeded the average market price of our common stock. The convertible notes will result in additional EPS dilution when our stock price exceeds the note conversion price of $19.97 per share and further dilution when the stock price exceeds the warrant strike price of $30.14 per share. The treasury stock method used to calculate diluted weighted average shares outstanding excludes potential reduction in shares related to the purchased note hedges because they are anti-dilutive. See Note 12.

On June 13, 2012, we executed an ASR transaction with Goldman, Sachs & Co. IGT paid Goldman $400.0 million on June 19, 2012. Goldman delivered 21.0 million shares to IGT in June 2012, 1.8 million shares in July 2012, 4.0 million shares on August 6, 2012, and 1.0 million shares on September 6, 2012, for a total of 27.8 million shares delivered to date. Upon final settlement of the ASR, we may receive additional shares or pay additional cash or shares (at our option), based on the VWAP over a period of approximately three to six months. Increases in the VWAP during the remaining ASR term will decrease the shares to be delivered to us by Goldman, and/or could result in cash or shares delivered by us to Goldman, subject to a minimum number of shares delivered. Decreases in the daily VWAP during the remaining ASR term will increase the shares to be delivered to us by Goldman. The ASR is subject to customary termination and adjustment provisions following the occurrence of specified events, including major corporate transactions such as announcements of mergers and acquisitions.