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Earnings Per Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
EARNINGS PER SHARE

The calculation of basic and diluted earnings per common share was as follows:
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(in millions, except per share amounts)
 
2012
 
2011
 
2012
 
2011
Net earnings (loss)
 
$
13

 
$
(248
)
 
$
96

 
$
(163
)
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding
 
49.6

 
48.9

 
49.3

 
48.8

Net effect of dilutive stock options
 
0.2

 
—

 
0.2

 
—

Net effect of dilutive restricted stock rights
 
0.2

 
—

 
0.2

 
—

Net effect of dilutive restricted performance stock rights
 
0.3

 
—

 
0.2

 
—

Dilutive weighted-average common shares outstanding
 
50.3

 
48.9

 
49.9

 
48.8

 
 
 
 
 
 
 
 
 
Earnings (loss) per share - basic
 
$
0.26

 
$
(5.07
)
 
$
1.95

 
$
(3.34
)
Earnings (loss) per share - diluted
 
$
0.26

 
$
(5.07
)
 
$
1.92

 
$
(3.34
)


The Company's calculation of diluted earnings per common share includes the dilutive effects of the assumed exercise of stock options and vesting of restricted stock based on the treasury stock method. Under this method, the Company has excluded the effects of 1.0 million stock options and 0.4 million Restricted Stock Rights (“RSRs”) from the diluted share amounts presented above for the three and nine months ended September 30, 2012.

Also excluded from the diluted share amounts presented above for the three and nine months ended September 30, 2012, are potentially dilutive shares related to Restricted Performance Stock Rights (“RPSRs”) to the extent that the performance conditions have not been satisfied. RPSRs are only included in the calculation of diluted shares when performance targets are achieved based on actual results at the end of each reporting period. As of September 30, 2012, 0.5 million RPSRs that were converted from Northrop Grumman stock-based award plans (the “Northrop Grumman Plan”) were outstanding and subject to continued performance targets, with ultimate vesting between 64% and 182% of this amount to the extent that performance conditions are satisfied. As of September 30, 2012, 0.2 million of these RPSRs were excluded from the diluted share amounts based on the treasury stock method. As of September 30, 2012, 1.0 million RPSRs issued under the Huntington Ingalls Industries, Inc. 2011 Long Term Incentive Stock Plan were outstanding, with ultimate vesting between 0% and 200% of this amount to the extent that performance conditions are satisfied. As of September 30, 2012, the minimum performance target under these awards had not been satisfied, and these shares are therefore excluded from the calculation of diluted shares.

The amounts presented above for the three and nine months ended September 30, 2011 exclude the impact of 1.6 million shares related to stock options, 0.7 million shares related to RSRs and 0.7 million shares related to RPSRs as their inclusion would have been antidilutive.