Net Income Per Common Share

9 Months Ended

Sep. 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 September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Numerator:
Net income—basic and diluted	$	131	$	111	$	395	$	229
Denominator:
Weighted-average common shares outstanding	163,710		162,555		163,454		162,419
Effect of stock-based awards:
Stock options	1,184		563		1,131		441
Nonvested shares	707		739		719		647
Adjusted weighted-average shares	165,601		163,857		165,304		163,507
Earnings per share:
Basic	$	0.80	$	0.69	$	2.42	$	1.41
Diluted	0.79		0.68		2.39		1.40
Number of anti-dilutive stock-based awards	335		5,045		390		6,000

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 nine months ended September 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.