Earnings Per Share

3 Months Ended

Mar. 31, 2017

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
(in millions, except per share amounts)	March 31, 2017		March 31, 2016
Computation of Basic Earnings Per Share
Net income	$	365	$	219
Shares for basic earnings per share	384.9		254.4
Basic earnings per share	$	0.95	$	0.86
Computation of Diluted Earnings Per Share
Net income	$	365	$	219
Shares for basic earnings per share	384.9		254.4
Effect of dilutive securities
Share-based compensation	5.1		4.5
Shares for diluted earnings per share	390.0		258.9
Diluted earnings per share	$	0.94	$	0.85

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 0.2 million for the 2017 first quarter and 0.5 million for the 2016 first quarter from our calculation of diluted earnings per share because their exercise prices were greater than the average market prices.