Earnings Per Share ("EPS")

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Weighted average common shares outstanding - basic		134.8		138.5		136.4		138.4
Dilutive effect of stock options		2.5		2.6		2.5		2.6
Weighted average common shares outstanding - diluted		137.3		141.1		138.9		141.0
Antidilutive stock options outstanding		1.1		1.6		1.8		1.6

On January 29, 2014, the Company’s board of directors (“the Board”) authorized a new share repurchase program, under which the Company may repurchase up to $500 of its common stock (“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, of which $74 was purchased under the evergreen program and $186 was purchased under the share repurchase program. 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 Company received an additional 0.3 million shares upon settlement of the ASR contracts in the second quarter of 2014.

On May 15, 2014, the Company entered into another ASR contract with a commercial bank to purchase $175 of Common Stock. This was purchased under the share repurchase program. The Company paid $175 to the bank and received an initial delivery of approximately 2.3 million shares of Common Stock. The Company used cash on hand to fund the purchase price. The contract was settled in July 2014 and the Company received an additional 0.2 million shares.

As a result of these purchases, there remains $139 under the share repurchase program.