Annual report pursuant to Section 13 and 15(d)

Earnings (Loss) per Common Share

v2.4.0.8
Earnings (Loss) per Common Share
 12 Months Ended
Dec. 31, 2013
Earnings Per Share [Abstract]  
Earnings (Loss) per Common Share
Note 4 – 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 per common share is calculated similarly, except that the calculation includes the dilutive effect of stock-settled SARs and stock options (collectively “options”), non-vested stock awards and performance awards.

Basic and diluted earnings (loss) per common share for the years ended December 31, 2013, 2012 and 2011 were calculated as follows:
(in millions, except per share data)
2013
 
2012
 
2011
Net earnings from continuing operations
$
775.2

 
$
147.4

 
$
90.6

Net loss from discontinued operations, net of tax
(6.0
)
 
(97.4
)
 
(18.7
)
Net earnings
$
769.2

 
$
50.0

 
$
71.9

 
 
 
 
 
 
Weighted average outstanding shares – basic
91.2

 
89.8

 
89.3

Dilutive effect of common stock equivalents
2.6

 
2.6

 
2.9

Weighted average outstanding shares – diluted
93.8

 
92.4

 
92.2

 
 
 
 
 
 
Basic earnings (loss) per common share:
 
 
 
 
 
Continuing operations
$
8.50

 
$
1.64

 
$
1.02

Discontinued operations
(0.07
)
 
(1.08
)
 
(0.21
)
Net earnings
$
8.43

 
$
0.56

 
$
0.81

 
 
 
 
 
 
Diluted earnings (loss) per common share:
 
 
 
 
 
Continuing operations
$
8.26

 
$
1.59

 
$
0.98

Discontinued operations
(0.06
)
 
(1.05
)
 
(0.20
)
Net earnings
$
8.20

 
$
0.54

 
$
0.78



As of December 31, 2013, the Company had 3.8 million options outstanding, of which 2.6 million were exercisable.  This compares with 8.2 million and 9.3 million options outstanding, of which 5.5 million and 5.1 million were exercisable, as of December 31, 2012 and December 31, 2011, respectively.  During the year ended December 31, 2013, there were 0.9 million weighted average shares of options outstanding for which the exercise price was greater than the average market price of the Company’s shares for the period then ended.  These options were not included in the computation of diluted earnings per common share because the effect would have been anti-dilutive. This compares to 2.2 million and 3.0 million anti-dilutive weighted average shares of options outstanding that were excluded from the corresponding periods ended December 31, 2012 and December 31, 2011, respectively. Changes in average outstanding basic shares from 2011 to 2013 reflect the impact of options exercised and the vesting of stock and performance awards since the beginning of 2011.