Net Income Per Common Share

3 Months Ended

Mar. 31, 2012

Net Income Per Common Share

NOTE 9 – 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.

Here are calculations for basic and diluted earnings per share:

(Dollars in millions except share data in thousands)	Three months ended March 31,
	2012		2011
Numerator:
Net income—basic and diluted	$	86	$	61
Denominator:
Weighted-average common shares outstanding		162,277		162,940
Effect of stock based awards:
Nonvested shares		541		526
Stock options		327		204
Adjusted weighted-average shares		163,145		163,670
Earnings per share:
Basic	$	0.53	$	0.38
Diluted		0.53		0.38
Number of anti-dilutive stock based awards		6,215		6,919

The current sources of dilution of our common shares are certain equity-based awards as discussed in our 2011 Annual Report on Form 10-K, Item 8, Note 17, Stock-Based Associate Compensation Plans, Page 134. The above table shows the number of anti-dilutive stock-based awards for the three months ended March 31, 2012 and 2011. 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.