Earnings Per Common Share

9 Months Ended

Sep. 30, 2012

Earnings Per Common Share

N. 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,
	2012			2011			2012			2011
Numerator (basic and diluted):
Income from continuing operations	$	22		$	56		$	3		$	29
Allocation to unvested restricted stock awards		(1	)		(2	)		(2	)		(2	)
Income from continuing operations attributable to common shareholders		21			54			1			27
Loss from discontinued operations		(7	)		(20	)		(30	)		(31	)
Allocation to unvested restricted stock awards		—			1			1			1
Loss from discontinued operations attributable to common shareholders		(7	)		(19	)		(29	)		(30	)
Net income (loss) available to common shareholders	$	14		$	35		$	(28	)	$	(3	)
Denominator:
Basic common shares (based upon weighted average)		349			348			349			348
Add:
Contingent common shares		—			—			—			—
Stock option dilution		1			—			1			1
Diluted common shares		350			348			350			349

For the three months and nine months ended September 30, 2012 and 2011, the Company allocated dividends to the unvested restricted stock awards (participating securities).

At September 30, 2011, the Company did not include any common shares related to the Zero Coupon Convertible Senior Notes (“Zero Coupon Notes”) in the calculation of diluted earnings per common share, as the price of the Company’s common stock at September 30, 2011 did not exceed the equivalent accreted value of the Zero Coupon Notes.

Additionally, 29 million common shares for both the three months and nine months ended September 30, 2012 and 37 million common shares for both the three months and nine months ended September 30, 2011 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 2012, the Company granted 819,520 shares of long-term stock awards; to partially offset the dilutive impact of these awards, the Company also repurchased and retired 675,110 shares of Company common stock, for cash aggregating approximately $8 million. At September 30, 2012, the Company had 24 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) and $.225 ($.225), respectively, for the three months and nine months ended both September 30, 2012 and 2011.