Earnings per Share

3 Months Ended

Mar. 31, 2012

Earnings per Share

Note 5. Earnings per Share

Reconciliation of the numerators and denominators of the earnings per share calculations —

	Three Months Ended
	March 31,
(In millions)	2012		2011
Income (loss) available to common stockholders -
Numerator basic	$	62	$	(38	)
Preferred stock dividend requirements		8
Numerator diluted	$	70	$	(38	)
Weighted-average number of shares outstanding -
Denominator basic		147.5		145.2
Employee compensation-related shares, including
stock options		2.5
Conversion of preferred stock		64.7
Denominator diluted		214.7		145.2

The share count for diluted earnings per share is computed on the basis of the weighted-average number of common shares outstanding plus the effects of dilutive common stock equivalents (CSEs) outstanding during the period. We excluded 0.6 million CSEs from the calculation of diluted earnings per share for the quarter ended March 31, 2011 as the effect of including them would have been anti-dilutive. In addition, we excluded CSEs that satisfied the definition of potentially dilutive shares of 4.1 million for the quarter ended March 31, 2011 since there was no net income available to common stockholders for this period.

We excluded 65.5 million CSEs related to the assumed conversion of the preferred stock for the quarter ended March 31, 2011, along with the adjustment for the related dividend requirements, as the effect of the conversion would have been anti-dilutive for the period.