Net Income Per Common Share

12 Months Ended

Dec. 31, 2011

Net Income Per Common Share

12. 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. We have adjusted shares and earnings per share to reflect all stock splits and stock dividends prior to December 31, 2011.

The basic and diluted earnings per share are calculated as follows:

	Years ended December 31,
(In millions except per share data)	2011		2010		2009
Numerator:
Net income—basic and diluted	$	166	$	377	$	432
Denominator:
Weighted-average common shares outstanding		162,667,354		162,777,695		162,595,041
Effect of stock-based awards:
Nonvested shares		509,177		484,829		271,822
Stock options		82,691		11,967		-
Adjusted diluted weighted-average shares		163,259,222		163,274,491		162,866,863
Earnings per share:
Basic	$	1.02	$	2.32	$	2.66
Diluted		1.02		2.31		2.65
Number of anti-dilutive stock-based awards		7,757,969		9,538,350		9,875,411

The current sources of dilution of our common shares are certain equity-based awards as discussed in Note 17 Stock-Based Associate Compensation Plans, Page 134. The above table shows the number of anti-dilutive stock-based awards at year-end 2011, 2010 and 2009. 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.