Avon 2010 Annual Report Download - page 75

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For each of the three years ended December 31, the components of basic and diluted EPS were as follows:
(Shares in millions) 2010 2009 2008
Numerator from continuing operations
Income from continuing operations less amounts attributable
to noncontrolling interests $ 590.9 $ 616.9 $ 877.4
Less: Earnings allocated to participating securities (4.8) (5.2) (6.0)
Income from continuing operations allocated to common
shareholders 586.1 611.7 871.4
Numerator from discontinued operations
Income (loss) from discontinued operations plus/less amounts
attributable to noncontrolling interests $ 15.4 $ 8.9 $ (2.1)
Less: Earnings allocated to participating securities (.4) .1 –
Income allocated to common shareholders 15.0 9.0 (2.1)
Numerator attributable to Avon
Income attributable to Avon less amounts attributable
to noncontrolling interests $ 606.3 $ 625.8 $ 875.3
Less: Earnings allocated to participating securities (5.2) (5.1) (6.0)
Income allocated to common shareholders 601.1 620.7 869.3
Denominator:
Basic EPS weighted-average shares outstanding 428.75 426.90 426.36
Diluted effect of assumed conversion of stock options 2.60 1.64 1.89
Diluted EPS adjusted weighted-average shares outstanding 431.35 428.54 428.25
Earnings Per Common Share from continuing operations:
Basic $ 1.37 $ 1.43 $ 2.04
Diluted $ 1.36 $ 1.43 $ 2.03
Earnings per Common Share from discontinued operations:
Basic $ .04 $ .02 $ (.01)
Diluted $ .03 $ .02 $ (.01)
Earnings per Common Share attributable to Avon:
Basic $ 1.40 $ 1.45 $ 2.04
Diluted $ 1.39 $ 1.45 $ 2.03
We did not include stock options to purchase 18.5 million shares for the year ended December 31, 2010, 16.8 million shares for 2009, and
21.3 million shares for 2008 of Avon common stock in the calculations of diluted EPS because the exercise prices of those options were
greater than the average market price and their inclusion would be anti-dilutive.
NOTE 2. New Accounting Standards
Standards Implemented
In January 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-06, Improving Disclosures about Fair Value Measurements.
The ASU amends FASB Codification Topic 820, Fair Value Measurements and Disclosures, to require additional disclosures regarding fair
value measurements. ASU 2010-06, related to enhanced disclosures regarding significant transfers between Level 1 and 2 fair value
measurements, was effective December 31, 2010 for Avon and did not have any impact on our financial statements. Required disclosures
related to activity in Level 3 fair value measurements is effective beginning January 1, 2011 for Avon and is not expected to have a
significant impact on our financial statements.
A V O N 2010 F-11