EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share:

	2014		2013		2012
(in millions, except per share amounts)
Computation of Basic Earnings Per Share
Net income	$	753	$	626	$	571
Weighted average shares outstanding	289.9		305.0		322.6
Basic earnings per share	$	2.60	$	2.05	$	1.77
Computation of Diluted Earnings Per Share
Net income	$	753	$	626	$	571
Weighted average shares outstanding	289.9		305.0		322.6
Effect of dilutive securities
Stock option and appreciation right plans	3.1		4.0		6.1
Deferred stock incentive plans	0.7		0.8		0.9
Restricted stock units	3.1		3.2		3.3
Shares for diluted earnings per share	296.8		313.0		332.9
Diluted earnings per share	$	2.54	$	2.00	$	1.72

We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We have excluded the following antidilutive stock options and stock appreciation rights in our calculation of diluted earnings per share because their exercise prices were greater than the average market prices for the applicable periods:

(a) for 2014, zero options and stock appreciation rights;

(b) for 2013, 0.4 million options and stock appreciation rights; and

(c) for 2012, 1.0 million options and stock appreciation rights.