Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2016

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:

	Year ended December 31,
	2016		2015		2014
Numerator:
Net income	$	120	$	198	$	226
Denominator:
Weighted average shares used to compute Basic EPS		145,443		143,836		142,721
Weighted average effect of dilutive securities:
Stock options		1,129		1,839		2,734
RSUs and other dilutive securities		321		292		345
Weighted average shares used to compute Diluted EPS		146,893		145,967		145,800
Basic EPS	$	0.83	$	1.38	$	1.58
Diluted EPS	$	0.82	$	1.36	$	1.55

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):

	Year ended December 31,
	2016(1)		2015(2)		2014(3)
Stock options		3,019		2,142		1,450
RSUs		860		562		191
Total		3,879		2,704		1,641

(1)

These totals do not include 125,000 performance based options and 12,799 performance based RSUs representing the right to acquire 137,799 shares of common stock for which all targets required to trigger vesting had 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 66,666 performance based options and 12,799 performance based RSUs representing the right to acquire 79,465 shares of common stock for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

(3)

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, respectively, for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.