Net Income Per Common Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Net Income Per Common Share

NET INCOME PER COMMON SHARE

Basic earnings per share are computed based on the weighted average number of shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method.

The table shows calculations for basic and diluted earnings per share:

(Dollars in millions except share data in thousands)	Three months ended March 31,
	2013		2012
Numerator:
Net income—basic and diluted	$	154	$	86
Denominator:
Weighted-average common shares outstanding	163,133		162,277
Effect of stock-based awards:
Nonvested shares	783		541
Stock options	1,008		327
Adjusted weighted-average shares	164,924		163,145
Earnings per share:
Basic	$	0.95	$	0.53
Diluted	0.94		0.53
Number of anti-dilutive stock-based awards	2,056		6,215

The current sources of dilution of our common shares are certain equity-based awards as discussed in our 2012 Annual Report on Form 10-K, Item 8, Note 17, Stock-Based Associate Compensation Plans, Page 135. The above table shows the number of anti-dilutive stock-based awards for the three months ended March 31, 2013 and 2012. We did not include these stock-based awards in the computation of net income per common share (diluted) because their exercise would have anti-dilutive effects.