Earnings Per Share

12 Months Ended

Dec. 31, 2015

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



	Year Ended December 31,
	2015		2014		2013
Net Income (in millions)	$	340	$	337	$	228
Shares (in thousands):
Weighted average common shares outstanding	180,854		183,030		185,082
Add: Participating securities (a)	39		47		134
Weighted average common shares outstanding — Basic	180,893		183,077		185,216
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	465		643		264
Dilutive effect of restricted stock	379		529		558
Weighted average common shares outstanding — Diluted	181,737		184,249		186,038
Basic earnings per share	$	1.88	$	1.84	$	1.23
Diluted earnings per share	$	1.87	$	1.83	$	1.22


(a)	Restricted stock awards containing rights to non-forfeitable dividends that 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 15, "Stock-Based Compensation Plans" for further detail on the performance share units.



	Year Ended December 31,
(in thousands)	2015	2014	2013
Stock options	2,616	2,720	4,126
Restricted shares	723	525	703
Performance shares	181	119	80