Earnings Per Share

6 Months Ended

Jun. 30, 2014

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 June 30,				Six Months Ended June 30,
In millions, except per share amounts	2014		2013		2014		2013
Net income available for common stockholders	$	96	$	108	$	155	$	167

Weighted average outstanding shares of common stock		156.9		163.4		157.7		164.4
Dilutive effect of employee stock options, restricted stock and other stock awards		2.5		2.9		2.5		3.0

Common stock and common stock equivalents		159.4		166.3		160.2		167.4

Earnings per share:
Basic	$	0.61	$	0.66	$	0.98	$	1.02
Diluted	$	0.60	$	0.65	$	0.97	$	1.00

Certain options to purchase shares of common stock 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. For the three months ended June 30, 2014 and June 30, 2013 there were 2.2 million and 0.7 million shares of common stock excluded from the computation of diluted earnings per share. For the six months ended June 30, 2014 and June 30, 2013 there were 2.2 million and 0.4 million shares of common stock excluded from the computation of diluted earnings per share.

- Definition

The entire disclosure for earnings per share.

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