Earnings Per Common Share

9 Months Ended

Sep. 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						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Numerator (basic and diluted):
Income from continuing operations	$	542		$	111		$	758		$	256
Less: Allocation to unvested restricted stock awards	(11		)	(2		)	(15		)	(5		)
Income from continuing operations attributable to common shareholders	531			109			743			251
Income (loss) from discontinued operations, net	1			(2		)	(2		)	(16		)
Less: Allocation to unvested restricted stock awards	—			—			—			—
Income (loss) from discontinued operations attributable to common shareholders	1			(2		)	(2		)	(16		)
Net income available to common shareholders	$	532		$	107		$	741		$	235
Denominator:
Basic common shares (based upon weighted average)	350			349			350			349
Add:
Stock option dilution	3			3			3			3
Diluted common shares	353			352			353			352

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

Additionally, 8 million common shares for both the three months and nine months ended September 30, 2014 and 15 million and 14 million common shares for the three months and nine months ended September 30, 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 nine 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.

On September 30, 2014, the Company announced that its Board of Directors authorized the repurchase of up to 50 million shares for retirement of Company common stock in open-market transactions or otherwise, replacing the previous Board of Directors authorization established in 2007.

On the basis of amounts paid (declared), cash dividends per common share were $.090 ($.090) and $.24 ($.255) for the three months and nine months ended September 30, 2014, respectively, and $.075 ($.075) and $.225 ($.225) for the three months and nine months ended September 30, 2013, respectively.