Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2014

Reconciliation of Weighted Average Number of Shares of Common Stock Outstanding

Below is a reconciliation of the weighted average number of shares of common stock outstanding in calculating Diluted EPS (shares in thousands and dollars in millions, except per share amounts):

	Three months ended				Nine months ended
	September 30,				September 30,
	2014		2013		2014		2013
Numerator:
Net income	$	54	$	56	$	190	$	185
Denominator:
Weighted average shares used to compute Basic EPS		142,842		142,690		142,648		143,095
Weighted average effect of dilutive securities:
Stock options		2,851		2,435		2,837		1,925
RSUs		378		329		354		238
Weighted average shares used to compute Diluted EPS		146,071		145,454		145,839		145,258
Basic EPS	$	0.38	$	0.39	$	1.33	$	1.29
Diluted EPS	$	0.37	$	0.38	$	1.30	$	1.27

Common Shares Related to Stock Options and RSUs Excluded from Calculated Diluted Net Income Per Share

The following potential common shares related to stock options and RSUs were excluded from the calculation of Diluted EPS because their effect would have been anti-dilutive for the periods presented (in thousands):

	Three months ended				Nine months ended
	September 30,				September 30,
	2014(1)		2013(2)		2014(1)		2013(2)
Stock options		599		1,360		1,325		2,559
RSUs		6		47		167		32
Total		605		1,407		1,492		2,591

(1)

These totals do not include 66,666 performance based options and 44,000 performance based RSUs representing the right to acquire 110,666 shares of common stock for which all targets required to trigger vesting have not been achieved as of September 30, 2014; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

(2)

These totals do not include 155,000 performance based options and 44,000 performance based RSUs representing the right to acquire 199,000 shares of common stock for which all targets required to trigger vesting had not been achieved as of September 30, 2013; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.