Earnings Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share.

	Year Ended December 31,
	2014		2013		2012
Net Income (in millions)	$	337	$	228	$	297
Shares (in thousands):
Weighted average common shares outstanding	183,030		185,082		185,459
Add: Participating securities (a)	47		134		325
Weighted average common shares outstanding — Basic	183,077		185,216		185,784
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	643		264		213
Dilutive effect of restricted stock	529		558		233
Weighted average common shares outstanding — Diluted	184,249		186,038		186,230
Basic earnings per share	$	1.84	$	1.23	$	1.60
Diluted earnings per share	$	1.83	$	1.22	$	1.59

(a) Restricted stock awards containing rights to non-forfeitable dividends which participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share.

(b)Incremental shares from stock options, restricted stock and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock and performance share awards, reduced by the repurchase of shares with the proceeds from the assumed exercises, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance conditions. See Note 16, "Stock-Based Compensation Plans" for further detail on the performance share units.

	Year Ended December 31,
(in thousands)	2014	2013	2012
Stock options	2,720	4,126	4,285
Restricted shares	525	703	870
Performance shares	119	80	—