Annual report pursuant to Section 13 and 15(d)

Earnings (Loss) per Common Share

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Earnings (Loss) per Common Share
 12 Months Ended
Dec. 31, 2011
Earnings (loss) per common share:  
Earnings (Loss) per Common Share
Note 3 – Earnings (Loss) per Common Share

Basic earnings (loss) per common share is calculated by dividing Net earnings (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share is calculated similarly, except that the calculation includes the dilutive effect of Stock-settled Stock Appreciation Rights (SARs) and stock options (collectively “options”) and non-vested stock awards.

Basic and diluted earnings (loss) per common share for the years ended December 31, 2011, 2010 and 2009 were calculated as follows:

(in millions, except per share data)
  
2011
    
2010
    
2009
  
                   
Net earnings (loss)
   $ 71.9     $ (110.6 )   $ (586.2 )
                         
Weighted average outstanding shares – basic
     89.3       88.7       88.4  
Dilutive effect of common stock equivalents
     2.9       -       -  
                         
Weighted average outstanding shares – diluted
     92.2       88.7       88.4  
                         
Basic earnings (loss) per common share
   $ 0.81     $ (1.25 )   $ (6.63 )
                         
Diluted earnings (loss) per common share
   $ 0.78     $ (1.25 )   $ (6.63 )

As of December 31, 2011, the Company had 9.3 million options outstanding, of which 5.1 million were exercisable. This compares with 9.2 million options outstanding, of which 3.8 million were exercisable as of December 31, 2010.  During the year ended December 31, 2011, there were 3.0 million weighted shares of options outstanding for which the exercise price, based on the average price, was greater than the average market price of the Company's shares for 2011. These options were not included in the computation of diluted earnings per common share because the effect would have been anti-dilutive. Common stock equivalents had an anti-dilutive effect on the net losses from operations during the years ended December 31, 2010 and 2009 and were not included in the diluted loss per common share computation for those periods. Changes in average outstanding basic shares from 2009 to 2011 reflect low levels of stock plan activity.