GOODRICH CORP

CIK:0000042542|SEC Filings

Earnings Per Share

3 Months Ended

Mar. 31, 2012

Note 7. Earnings Per Share

The computation of basic and diluted earnings per share (EPS) for income from continuing operations is as follows:


	Three Months Ended March 31,
	2012			2011
	(In millions, except per share amounts)
Numerator
Numerator for basic and diluted EPS — income from continuing operations attributable to Goodrich	$	188.3		$	194.8
Percentage allocated to common shareholders (1)		99.0	%		98.6	%

Numerator for basic and diluted EPS	$	186.3		$	192.1


Denominator
Denominator for basic EPS — weighted-average shares		125.8			125.3
Effect of dilutive securities:
Stock options, employee stock purchase plan and other deferred compensation shares		1.5			1.1

Denominator for diluted EPS — adjusted weighted-average shares and assumed conversion		127.3			126.4


Per common share income from continuing operations
Basic	$	1.48		$	1.53

Diluted	$	1.46		$	1.52



(1) Basic weighted-average common shares outstanding		125.8			125.3
Basic weighted-average common shares outstanding and unvested restricted share units expected to vest		127.1			127.0

Percentage allocated to common shareholders		99.0	%		98.6	%

The Company’s unvested restricted share units contain rights to receive nonforfeitable dividend equivalents, and thus, are participating securities requiring the two-class method of computing EPS. The calculation of EPS for common stock shown above excludes the income attributable to the unvested restricted share units from the numerator and excludes the dilutive impact of those units from the denominator.

At March 31, 2012 and 2011, the Company had 3.1 million and 3.6 million, respectively, of outstanding stock options. Stock options are included in the diluted earnings per share calculation using the treasury stock method, unless the effect of including the stock options would be anti-dilutive. There were no anti-dilutive stock options excluded from the EPS calculation at March 31, 2012. At March 31, 2011, 0.7 million anti-dilutive stock options were excluded from the diluted EPS calculation.

During the three months ended March 31, 2012 and 2011, the Company issued 0.8 million and 1 million, respectively, of shares of common stock pursuant to stock option exercises and other share-based compensation plans.

The Company’s share repurchase program was approved by the Board of Directors for $1.1 billion in total. There were no share repurchases during the three months ended March 31, 2012 and during the three months ended March 31, 2011, the Company repurchased 0.9 million shares. From inception of the program through March 31, 2012, the Company has repurchased 9.8 million shares for approximately $621 million under its share repurchase program.

Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Operating Activities
Consolidated net income	$ 189.8	$ 196.6
Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities:
(Income) loss from discontinued operations	0.1
Restructuring and Consolidation:
Expenses	8.6	2.9
Payments	(4.4)	(0.9)
Pension and postretirement benefits:
Expenses	34.8	26.6
Contributions and benefit payments	(142.2)	(75.4)
Depreciation and amortization	79.9	72.4
Excess tax benefits related to share-based payment arrangements	(14.9)	(8.6)
Share-based compensation expense	12.4	17.9
Deferred income taxes	(3.8)	(5.2)
Change in assets and liabilities, net of effects of acquisitions and divestitures:
Receivables	(172.2)	(157.3)
Inventories, net of pre-production and excess-over-average	(65.3)	(41.0)
Pre-production and excess-over-average inventories	(101.6)	(55.8)
Other current assets	(3.4)	1.8
Accounts payable	92.6	90.5
Accrued expenses	(112.6)	(68.3)
Income taxes payable/receivable	44.5	105.8
Other assets and liabilities	(19.7)	(5.6)
Net Cash (Used In) Provided By Operating Activities	(177.4)	96.4
Investing Activities
Purchases of property, plant and equipment	(71.5)	(35.6)
Proceeds from sale of property, plant and equipment	0.3	0.1
Payments received (made) in connection with acquisitions, net of cash acquired		8.3
Investments in and advances to equity investees	(0.5)	(0.5)
Net Cash Used In Investing Activities	(71.7)	(27.7)
Financing Activities
Increase (decrease) in short-term debt, net	(18.0)	0.8
Proceeds (repayments) of long-term debt and capital lease obligations	(0.3)	(0.5)
Proceeds from issuance of common stock	23.2	27.1
Purchases of treasury stock	(20.0)	(96.6)
Dividends paid	(36.8)	(0.5)
Excess tax benefits related to share-based payment arrangements	14.9	8.6
Distributions to noncontrolling interests	(0.7)	(0.7)
Net Cash Used In Financing Activities	(37.7)	(61.8)
Discontinued Operations
Net cash provided by (used in) operating activities	(0.1)	(0.1)
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net cash provided by (used in) discontinued operations	(0.1)	(0.1)
Effect of exchange rate changes on cash and cash equivalents	4.0	5.4
Net increase (decrease) in cash and cash equivalents	(282.9)	12.2
Cash and cash equivalents at beginning of period	987.0	798.9
Cash and cash equivalents at end of period	$ 704.1	$ 811.1

Condensed Consolidated Balance Sheet (Unaudited) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents	$ 704.1	$ 987.0
Accounts and notes receivable, less allowances for doubtful receivables ($23.4 at March 31, 2012 and $19.3 at December 31, 2011)	1,528.4	1,343.2
Inventories - net	3,061.6	2,876.6
Deferred income taxes	215.5	197.8
Prepaid expenses and other assets	76.2	60.0
Total Current Assets	5,585.8	5,464.6
Property, plant and equipment, less accumulated depreciation ($1,992.8 at March 31, 2012 and $1,940.9 at December 31, 2011)	1,667.0	1,633.2
Goodwill	2,007.1	1,991.0
Identifiable intangible assets - net	919.1	917.2
Deferred income taxes	36.5	36.4
Other assets	708.4	671.3
Total Assets	10,923.9	10,713.7
Current Liabilities
Short-term debt	6.9	25.0
Accounts payable	869.3	768.8
Accrued expenses	1,116.6	1,211.1
Income taxes payable	77.1	45.8
Deferred income taxes	23.9	23.3
Current maturities of long-term debt and capital lease obligations	14.2	1.6
Total Current Liabilities	2,108.0	2,075.6
Long-term debt and capital lease obligations	2,362.3	2,374.4
Pension obligations	777.9	904.3
Postretirement benefits other than pensions	282.9	286.2
Long-term income taxes payable	174.0	174.0
Deferred income taxes	600.6	560.5
Other non-current liabilities	586.6	600.2
Shareholders' Equity
Common stock - $5 par value Authorized 200,000,000 shares; issued 150,503,327 shares at March 31, 2012 and 149,713,719 shares at December 31, 2011 (excluding 14,000,000 shares held by a wholly owned subsidiary)	752.5	748.6
Additional paid-in capital	1,912.4	1,870.7
Income retained in the business	3,341.5	3,190.3
Accumulated other comprehensive income (loss)	(895.9)	(1,011.2)
Common stock held in treasury, at cost (24,583,946 shares at March 31, 2012 and 24,422,527 shares at December 31, 2011)	(1,118.2)	(1,098.3)
Total Shareholders' Equity	3,992.3	3,700.1
Noncontrolling interests	39.3	38.4
Total Equity	4,031.6	3,738.5
Total Liabilities And Equity	$ 10,923.9	$ 10,713.7