Earnings Per Common Share

9 Months Ended

Sep. 30, 2015

Earnings Per Common Share

Earnings Per Common Share

P.EARNINGS PER COMMON SHARE

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,
	2015		2014		2015			2014
Numerator (basic and diluted):
Income from continuing operations	$	111	$	533	$	281		$	735
Less: Allocation to unvested restricted stock awards	2		11		4			15
Income from continuing operations attributable to common shareholders	109		522		277			720
Income (loss) from discontinued operations, net	—		10		(1		)	21
Less: Allocation to unvested restricted stock awards	—		—		—			—
Income (loss) from discontinued operations attributable to common shareholders	—		10		(1		)	21
Net income available to common shareholders	$	109	$	532	$	276		$	741
Denominator:
Basic common shares (based upon weighted average)	335		350		340			350
Add:
Stock option dilution	3		3		4			3
Diluted common shares	338		353		344			353

For the three months and nine months ended September 30, 2015 and 2014, we allocated dividends and undistributed earnings to the unvested restricted stock awards.

Additionally, 4 million and 6 million common shares for the three months and nine months ended September 30, 2015, respectively, and 8 million common shares for both the three months and nine months ended September 30, 2014 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 2015, we repurchased and retired 15.5 million shares of our common stock (including 720 thousand shares to offset the dilutive impact of long-term stock awards granted in the first quarter), for approximately $407 million. As part of the repurchases, in August 2015, we agreed to repurchase a total of $200 million of common stock with an immediate delivery of 6.1 million shares under an accelerated stock repurchase transaction.  In September 2015, upon completion of the transaction, we received an additional 1.5 million shares of our common stock resulting from changes in the volume weighted average stock price of our common stock over the term of the transaction.  At September 30, 2015, we had 29.5 million shares of our common stock remaining under the September 2014 Board of Directors’ repurchase authorization.

On the basis of amounts paid (declared), cash dividends per common share were $.090 ($.095) and $.270 ($.275) for the three months and nine months ended September 30, 2015, respectively, and $.090 ($.090) and $.240 ($.255) for the three months and nine months ended September 30, 2014, respectively.