Earnings Per Common Share

6 Months Ended

Jun. 30, 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						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Numerator (basic and diluted):
Income from continuing operations	$	140		$	83		$	216		$	145
Less: Allocation to unvested restricted stock awards	3			2			4			3
Income from continuing operations attributable to common shareholders	137			81			212			142
Loss from discontinued operations, net	(1		)	(5		)	(3		)	(14		)
Less: Allocation to unvested restricted stock awards	—			—			—			—
Loss from discontinued operations attributable to common shareholders	(1		)	(5		)	(3		)	(14		)
Net income available to common shareholders	$	136		$	76		$	209		$	128
Denominator:
Basic common shares (based upon weighted average)	349			349			350			349
Add:
Stock option dilution	3			3			3			3
Diluted common shares	352			352			353			352

For the three months and six months ended June 30, 2014 and 2013, the Company allocated dividends and undistributed earnings to the unvested restricted stock awards (participating securities).

Additionally, 11 million common shares for both the three months and six months ended June 30, 2014 and 14 million common shares for both the three months and six months ended June 30, 2013 related to stock options were excluded from the computation of diluted earnings per common share due to their antidilutive effect.

In the first six months of 2014, the Company granted 1.7 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 June 30, 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 $.075 ($.090) and $.15 ($.165) for the three months and six months ended June 30, 2014, respectively, and $.075 ($.075) and $.15 ($.15) for the three months and six months ended June 30, 2013, respectively.