Earnings per Common Share

9 Months Ended

Sep. 30, 2016

8.	Earnings per Common Share

Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows.


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2016		2015		2016		2015
Numerator:
Net income attributable to Navient Corporation	$	230	$	237	$	535	$	711

Denominator:
Weighted average shares used to compute basic EPS		310		369		324		382
Effect of dilutive securities:
Dilutive effect of stock options, non-vested restricted stock, restricted stock units and Employee Stock Purchase Plans (“ESPPs”)⁽¹⁾		6		6		5		7

Dilutive potential common shares⁽²⁾		6		6		5		7

Weighted average shares used to compute diluted EPS		316		375		329		389

Basic earnings (loss) per common share attributable to Navient Corporation:
Continuing operations	$	.74	$	.64	$	1.65	$	1.86
Discontinued operations		—		—		—		—

Total	$	.74	$	.64	$	1.65	$	1.86

Diluted earnings (loss) per common share attributable to Navient Corporation:
Continuing operations	$	.73	$	.63	$	1.63	$	1.83
Discontinued operations		—		—		—		—

Total	$	.73	$	.63	$	1.63	$	1.83

⁽¹⁾	Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, non-vested restricted stock, restricted stock units, and the outstanding commitment to issue shares under applicable ESPPs, determined by the treasury stock method.

⁽²⁾

For the three months ended September 30, 2016 and 2015, stock options covering approximately 4 million and 6 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. For the nine months ended September 30, 2016 and 2015, stock options covering approximately 5 million and 4 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive.