Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2011

Basic and Diluted Earnings Per Common Share Available to IPG Common Stockholders

The following sets forth basic and diluted earnings per common share available to IPG common stockholders.



	Years ended December 31,
	2011		2010			2009
Net income available to IPG common stockholders - basic	$	520.7	$	271.2		$	93.6
Adjustments: Effect of dilutive securities
Interest on 4.25% Notes	1.4		1.4			1.4
Interest on 4.75% Notes	4.1		4.0			0.0
Preferred stock dividends	11.6		0.0			0.0
Benefit from preferred stock repurchased ¹	0.0		(21.7		)	0.0
Net income available to IPG common stockholders - diluted	$	537.8	$	254.9		$	95.0


Weighted-average number of common shares outstanding - basic	465.5		473.6			468.2
Add: Effect of dilutive securities
Restricted stock, stock options and other equity awards	9.1		11.3			7.7
4.25% Notes	33.0		32.2			32.2
4.75% Notes	16.5		16.1			0.0
Preferred stock outstanding	16.5		0.0			0.0
Preferred stock repurchased	0.0		8.9			0.0

Weighted-average number of common shares outstanding - diluted	540.6		542.1			508.1


Earnings per share available to IPG common stockholders - basic	$	1.12	$	0.57		$	0.20
Earnings per share available to IPG common stockholders - diluted	$	0.99	$	0.47		$	0.19

For the year ended December 31, 2010, the benefit from the preferred stock repurchased is excluded from net income available to IPG common stockholders for purposes of calculating diluted earnings per share since the associated common shares, if converted, were dilutive. In addition, the benefit is also net of $4.0 of preferred dividends that were declared during the first quarter of 2010 and associated with the preferred stock repurchased.

Potential Shares Excluded from Diluted Earnings Per Share Calculation

The following table presents the potential shares excluded from the diluted earnings per share calculation because the effect of including these potential shares would be antidilutive.



	Years ended December 31,
	2011	2010	2009
4.75% Notes	0.0	0.0	16.1
4.50% Notes	0.0	0.0	0.6
Preferred stock outstanding	0.0	16.2	38.4
Total	0.0	16.2	55.1
Securities excluded from the diluted earnings per share calculation because the exercise price was greater than the average market price:
Stock options ¹	8.9	15.6	21.2
Warrants²	0.0	0.0	67.9


¹	These options are outstanding at the end of the respective periods. In any period in which the exercise price is less than the average market price, these options have the potential to be dilutive, and application of the treasury stock method would reduce this amount.


²	The potential dilutive impact of the warrants is based upon the difference between the market price of one share of our common stock and the stated exercise prices of the warrants, adjusted to reflect the period during which the warrants were outstanding. The warrants expired in June 2009.