Note 9 — Earnings Per Share

The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three months and six months ended June 30, 2011 and June 30, 2010:


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

Numerator:
Income from continuing operations attributable to The Timken Company	$	121.5	$	81.4	$	234.2	$	109.7
Less: undistributed earnings allocated to nonvested stock		0.4		0.4		0.9		0.5

Income from continuing operations available to common shareholders for basic earnings per share and diluted earnings per share	$	121.1	$	81.0	$	233.3	$	109.2


Denominator:
Weighted average number of shares outstanding — basic		97,644,773		96,305,087		97,552,528		96,336,974
Effect of dilutive options		1,255,219		716,085		1,353,328		608,675

Weighted average number of shares outstanding, assuming dilution of stock options		98,899,992		97,021,172		98,905,856		96,945,649

Basic earnings per share from continuing operations	$	1.24	$	0.84	$	2.39	$	1.13

Diluted earnings per share from continuing operations	$	1.22	$	0.84	$	2.36	$	1.13

The exercise prices for certain stock options that the Company has awarded may exceed the average market price of the Company’s common stock. Such stock options are anti-dilutive and were not included in the computation of diluted earnings per share. There were no anti-dilutive stock options outstanding for the three months ended June 30, 2011 and 1,554,605 anti-dilutive stock options outstanding for the three months ended June 30, 2010. The anti-dilutive stock options outstanding were 176,500 and 1,960,955 for the six months ended June 30, 2011 and June 30, 2010, respectively.