Net Income Per Common Share

9 Months Ended

Sep. 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.

The table shows calculations for basic and diluted earnings per share:

	Three months ended September 30,				Nine months ended September 30,
(Dollars in millions except share data in thousands)	2012		2011		2012		2011
Numerator:
Net income—basic and diluted	$	111	$	19	$	229	$	30
Denominator:
Weighted-average common shares outstanding		162,555		162,538		162,419		162,848
Effect of stock-based awards:
Nonvested shares		739		542		647		522
Stock options		563		6		441		95
Adjusted weighted-average shares		163,857		163,086		163,507		163,465
Earnings per share:
Basic	$	0.69	$	0.12	$	1.41	$	0.19
Diluted		0.68		0.12		1.40		0.19
Number of anti-dilutive stock-based awards		5,045		8,590		6,000		7,790

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 nine months ended September 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.