Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2015

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) for the periods presented:

	Three Months Ended
	March 31,
	2015		2014
Numerator:
Net income	$	63	$	68
Denominator:
Weighted average shares used to compute Basic EPS		143,145		142,399
Weighted average effect of dilutive securities:
Stock options		2,417		2,884
RSUs		310		382
Weighted average shares used to compute Diluted EPS		145,872		145,665
Basic EPS	$	0.44	$	0.48
Diluted EPS	$	0.43	$	0.47

Common Shares Related to Stock Options and RSUs Excluded from Calculated Diluted EPS

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
	March 31,
	2015(1)		2014(2)
Stock options		2,141		1,688
RSUs		840		439
Total		2,981		2,127

(1)

These totals do not include 66,666 performance based options representing the right to acquire 66,666 shares of common stock for which all targets required to trigger vesting have not been achieved; 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 121,666 performance based options and 44,000 performance based RSUs representing the right to acquire 165,666 shares of common stock for which all targets required to trigger vesting have not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.