Earnings per Common Share

3 Months Ended

Mar. 31, 2017

7.	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 March 31,
(In millions, except per share data)	2017		2016
Numerator:
Net income attributable to Navient Corporation	$	88	$	181

Denominator:
Weighted average shares used to compute basic EPS		289		339
Effect of dilutive securities:
Dilutive effect of stock options, non-vested restricted stock, restricted stock units and Employee Stock Purchase Plans (“ESPPs”)⁽¹⁾		7		4

Dilutive potential common shares⁽²⁾		7		4

Weighted average shares used to compute diluted EPS		296		343

Basic earnings (loss) per common share attributable to Navient Corporation	$	.31	$	.53

Diluted earnings (loss) per common share attributable to Navient Corporation	$	.30	$	.53

⁽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 March 31, 2017 and 2016, stock options covering approximately 5 million and 9 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive.