Earnings Per Share

6 Months Ended

Jun. 30, 2013

10. Earnings Per Share

Basic earnings per share is calculated by dividing net income by the weighted average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted average number of shares outstanding includes the dilution from potential shares resulting from stock options and unvested restricted stock awards.

The components of basic and diluted earnings per share are as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
In millions, except per share amounts	2013		2012		2013		2012
Net income available for common stockholders	$	108	$	112	$	167	$	203

Weighted average outstanding shares of common stock		163.4		168.7		164.4		168.3
Dilutive effect of employee stock options and restricted stock		2.9		3.6		3.0		3.7

Common stock and common stock equivalents		166.3		172.3		167.4		172.0

Earnings per share:
Basic	$	0.66	$	0.66	$	1.02	$	1.21
Diluted	$	0.65	$	0.65	$	1.00	$	1.18

Options to purchase 0.7 million and 0.4 million shares of common stock for the three and six months ended June 30, 2013 were not included in the computation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares for the respective periods and, therefore, the effect would have been anti-dilutive. Because the average market price of common shares was greater than the exercise prices of outstanding awards, no stock options were excluded from the computation of diluted earnings per share for the three and six month periods ended June 30, 2012.

- Definition

The entire disclosure for earnings per share.

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