Earnings Per Share ("EPS")

3 Months Ended

Mar. 31, 2014

Earnings Per Share ("EPS")

5. Earnings Per Share (“EPS”)

Basic EPS is calculated based on income available to holders of the Company’s common stock (“Common Stock”) and the weighted-average number of shares outstanding during the reported period. Diluted EPS includes additional dilution from potential Common Stock issuable pursuant to the exercise of outstanding stock options. The following table sets forth a reconciliation of the weighted-average number of shares of Common Stock outstanding to the weighted-average number of shares outstanding on a diluted basis:

	Three Months Ended
	March 31, 2014		March 31, 2013
Weighted average common shares outstanding - basic		138.0		138.3
Dilutive effect of stock options		2.6		2.6
Weighted average common shares outstanding - diluted		140.6		140.9
Antidilutive stock options outstanding		0.7		0.1

On January 29, 2014, the Board authorized a new share repurchase program, under which the Company may repurchase up to $500 of Common Stock. This share repurchase program replaced the Company’s share repurchase program previously announced on November 5, 2012. In addition, the Board authorized a new evergreen share repurchase program, under which the Company may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under the Company’s incentive plans.

As part of the new share repurchase programs, in the first quarter of 2014 the Company entered into accelerated share repurchase (“ASR”) contracts with a commercial bank to purchase $260 of Common Stock. The Company paid $260 to the bank and received an initial delivery of approximately 3.5 million shares of Common Stock. The Company used cash on hand to fund the purchase price. The value of the shares received on the date of purchase was $234. The remaining $26 represents the cost of the forward contracts which will be reflected as treasury stock upon settlement, with an additional delivery of approximately 0.3 million shares of Common Stock, which will occur in the second quarter of 2014. However, if the Company is required to deliver value to the commercial bank at the end of the purchase period, the Company, at its option, may elect to settle in Common Stock or cash.