Net Income Per Common Share

6 Months Ended

Jun. 30, 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 June 30,					Six months ended June 30,
	2012		2011			2012		2011
Numerator:
Net income (loss)—basic and diluted	$	32	$	(50	)	$	118	$	11
Denominator:
Weighted-average common shares outstanding		162,425		163,069			162,351		163,005
Effect of stock-based awards:
Nonvested shares		670		-			602		512
Stock options		419		-			375		168
Adjusted weighted-average shares		163,514		163,069			163,328		163,685
Earnings (loss) per share:
Basic	$	0.20	$	(0.31	)	$	0.73	$	0.07
Diluted		0.20		(0.31	)		0.72		0.07
Number of anti-dilutive stock-based awards		6,059		7,858			6,072		7,853

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 and six months ended June 30, 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. Due to the net loss in the second quarter of 2011, the assumed exercise of certain stock options and nonvested shares were excluded from the computation of diluted loss per share.