Earnings Per Share

9 Months Ended

Sep. 25, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution:

	Third Quarters				Nine Months
	2015		2014		2015			2014
Numerator (Dollars in millions):
Net Earnings	$	507	$	509	$	1,502		$	1,436
Dividend Equivalents on Restricted Stock	—		—		(1		)	(1		)
Net Earnings, Attributable to Common Shareholders	$	507	$	509	$	1,501		$	1,435
Denominator (Units in millions):
Average Common Shares Outstanding	981		999		986			1,003
Other Potentially Dilutive Common Shares	1		—		1			1
Average Common Shares Outstanding, Assuming Dilution	982		999		987			1,004
Net Earnings Per Share, Basic	$	0.52	$	0.51	$	1.52		$	1.43
Net Earnings Per Share, Assuming Dilution	$	0.52	$	0.51	$	1.52		$	1.43

Basic earnings per share is based on the weighted-average number of shares of common stock outstanding. Earnings per share, assuming dilution, is based on the weighted-average number of shares of common stock equivalents outstanding adjusted for the effects of common stock that may be issued as a result of potentially dilutive instruments. CSX's potentially dilutive instruments are made up of equity awards, which include long-term incentive awards.

The Earnings Per Share Topic in the ASC requires CSX to include additional shares in the computation of earnings per share, assuming dilution. The additional shares included in diluted earnings per share represent the number of shares that would be issued if all of the above potentially dilutive instruments were converted into CSX common stock.