Earnings Per Common Share

3 Months Ended

Mar. 31, 2014

Earnings Per Common Share

Earnings Per Common Share

O. Reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share were as follows, in millions:

	Three Months Ended
	March 31,
	2014			2013
Numerator (basic and diluted):
Income from continuing operations	$	76		$	62
Less: Allocation to unvested restricted stock awards	1			1
Income from continuing operations attributable to common shareholders	$	75		$	61
Loss from discontinued operations, net	(2		)	(9		)
Less: Allocation to unvested restricted stock awards	—			—
Loss from discontinued operations attributable to common shareholders	(2		)	(9		)
Net income attributable to common shareholders	$	73		$	52
Denominator:
Basic common shares (based upon weighted average)	351			350
Add:
Stock option dilution	3			2
Diluted common shares	354			352

For the three months ended March 31, 2014 and 2013, the Company allocated dividends and undistributed earnings to the unvested restricted stock awards (participating securities).

Additionally, 11 million and 15 million common shares for the three months ended March 31, 2014 and 2013, respectively, related to stock options were excluded from the computation of diluted earnings per common share due to their antidilutive effect.

In the first three months of 2014, the Company granted 1.6 million shares of long-term stock awards; to offset the dilutive impact of these awards, the Company also repurchased and retired 1.7 million shares of Company common stock, for cash aggregating approximately $39 million. At March 31, 2014, the Company had 20.9 million shares of its common stock remaining under the July 2007 Board of Directors’ repurchase authorization.

On the basis of amounts paid (declared), cash dividends per common share were $.075 ($.075) for both the three months ended March 31, 2014 and 2013.