Earnings Per Share
The numerator of basic earnings per share (EPS) is net income attributable to Phillips 66, reduced by noncancelable dividends paid on unvested share-based employee awards during the vesting period (participating securities). The denominator of basic EPS is the sum of the daily weighted-average number of common shares outstanding during the periods presented and fully vested stock and unit awards that have not yet been issued as common stock. The numerator of diluted EPS is also based on net income attributable to Phillips 66, which is reduced only by dividend equivalents paid on participating securities for which the dividends are more dilutive than the participation of the awards in the earnings of the periods presented. To the extent unvested stock, unit or option awards and vested unexercised stock options are dilutive, they are included with the weighted-average common shares outstanding in the denominator. Treasury stock is excluded from the denominator in both basic and diluted EPS.
On April 30, 2012, 625.3 million shares of our common stock were distributed to ConocoPhillips stockholders in conjunction with the Separation. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, we have assumed this amount to be outstanding as of the beginning of each period prior to the Separation presented in the calculation of weighted-average shares. In addition, we have assumed the fully vested stock and unit awards outstanding at April 30, 2012, were also outstanding for each of the periods presented prior to the Separation; and we have assumed the dilutive securities outstanding at April 30, 2012, were also outstanding for each period prior to the Separation.
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| | | | | | | | | | | | | | | |
| 2013 | | 2012 | | 2011 |
| Basic | Diluted | | Basic | Diluted | | Basic | Diluted |
Amounts attributed to Phillips 66 Common Stockholders (millions): | | | | | | | | |
Income from continuing operations attributable to Phillips 66 | $ | 3,665 |
| 3,665 |
| | 4,076 |
| 4,076 |
| | 4,732 |
| 4,732 |
|
Income allocated to participating securities | (5 | ) | — |
| | (2 | ) | — |
| | — |
| — |
|
Income from continuing operations available to common stockholders | 3,660 |
| 3,665 |
| | 4,074 |
| 4,076 |
| | 4,732 |
| 4,732 |
|
Discontinued operations | 61 |
| 61 |
| | 48 |
| 48 |
| | 43 |
| 43 |
|
Net income available to common stockholders | $ | 3,721 |
| 3,726 |
| | 4,122 |
| 4,124 |
| | 4,775 |
| 4,775 |
|
| | | | | | | | |
Weighted-average common shares outstanding (thousands): | 612,918 |
| 612,918 |
| | 628,835 |
| 628,835 |
| | 627,628 |
| 627,628 |
|
Dilutive effect of stock-based compensation | — |
| 6,071 |
| | — |
| 7,929 |
| | — |
| 7,017 |
|
Weighted-average common shares outstanding | 612,918 |
| 618,989 |
| | 628,835 |
| 636,764 |
| | 627,628 |
| 634,645 |
|
| | | | | | | | |
Earnings Per Share of Common Stock (dollars): | | | | | | | | |
Income from continuing operations attributable to Phillips 66 | $ | 5.97 |
| 5.92 |
| | 6.47 |
| 6.40 |
| | 7.54 |
| 7.45 |
|
Discontinued operations | 0.10 |
| 0.10 |
| | 0.08 |
| 0.08 |
| | 0.07 |
| 0.07 |
|
Earnings Per Share | $ | 6.07 |
| 6.02 |
| | 6.55 |
| 6.48 |
| | 7.61 |
| 7.52 |
|
