Net Income Per Common Share

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
	2013		2012		2013		2012
Numerator:
Net income—basic and diluted	$	110	$	32	$	264	$	118
Denominator:
Weighted-average common shares outstanding	163,512		162,425		163,323		162,351
Effect of stock-based awards:
Stock options	1,239		419		1,098		375
Nonvested shares	691		670		730		602
Adjusted weighted-average shares	165,442		163,514		165,151		163,328
Earnings per share:
Basic	$	0.67	$	0.20	$	1.62	$	0.73
Diluted	0.66		0.20		1.60		0.72
Number of anti-dilutive stock-based awards	340		6,059		393		6,072

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 and six months ended June 30, 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.