Earnings Per Share

6 Months Ended

Jun. 30, 2016

EARNINGS PER SHARE

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



	Three Months Ended				Six Months Ended
(in millions, except per share amounts)	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
Computation of Basic Earnings Per Share
Net income	$	247	$	240	$	466	$	447
Weighted average shares outstanding	254.3		272.4		254.3		275.1
Basic earnings per share	$	0.97	$	0.88	$	1.83	$	1.63
Computation of Diluted Earnings Per Share
Net income	$	247	$	240	$	466	$	447
Weighted average shares outstanding	254.3		272.4		254.3		275.1
Effect of dilutive securities
Employee stock option and appreciation right plans	1.7		2.3		1.9		2.4
Deferred stock incentive plans	0.5		0.6		0.6		0.6
Restricted stock units	1.5		2.0		1.9		2.5
Shares for diluted earnings per share	258.0		277.3		258.7		280.6
Diluted earnings per share	$	0.96	$	0.87	$	1.80	$	1.59

We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We excluded antidilutive stock options and stock appreciation rights of 0.3 million for the 2016 second quarter and 0.6 million for the 2016 first half and 0.3 million for the 2015 second quarter and 0.2 million for the 2015 first half from our calculation of diluted earnings per share because their exercise prices were greater than the average market prices.