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Earnings Per Share
 3 Months Ended
Mar. 31, 2014
Earnings Per Share

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, restricted stock awards and other stock awards.

 

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

 

     Three Months Ended
March 31,		  
In millions, except per share amounts    2014      2013  

Net income available for common stockholders

    $ 59       $ 59   
  

 

 

     

 

 

  

Weighted average outstanding shares of common stock

      158.4         165.4   

Dilutive effect of employee stock options, restricted stock and other stock awards

      2.5         3.1   
  

 

 

     

 

 

  

Common stock and common stock equivalents

      160.9         168.5   
  

 

 

     

 

 

  

Earnings per share:

      

Basic

    $ 0.37       $ 0.36   

Diluted

    $ 0.37       $ 0.35   

Options to purchase 2.2 million shares of common stock for the three months ended March 31, 2014 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 period, and therefore would have been anti-dilutive. No stock options were excluded from the computation of diluted earnings per share for the three months ended March 31, 2013, because the average market price of common shares for the periods was greater than the exercise prices of outstanding awards.