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Earnings Per Share
 6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
 
Basic earnings per share is computed by dividing: (i) net income by (ii) the weighted average number of shares outstanding in the period (the “Basic Shares”).
 
Diluted earnings per share is computed by dividing: (i) net income by (ii) Basic Shares plus the additional shares that would be issued assuming that all dilutive stock awards are exercised. Options to purchase approximately 4.1 million and 2.2 million shares of common stock were outstanding, but were not included in the calculation of diluted earnings per share for the three and six months ended June 30, 2014, respectively, because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. For the same reason, options to purchase approximately 8.4 million and 4.5 million shares of common stock were outstanding, but were not included in the calculation of diluted earnings per share for the three and six months ended June 30, 2013, respectively.

The following is a reconciliation of basic and diluted earnings per share for the respective periods:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
In millions, except per share amounts
2014
 
2013
 
2014
 
2013
Numerator for earnings per share calculations:
 
 
 
 
 
 
 
Income from continuing operations
$
1,246

 
$
1,125

 
$
2,375

 
$
2,079

Loss from discontinued operations, net of tax
—

 
(1
)
 
—

 
(1
)
Net income
$
1,246

 
$
1,124

 
$
2,375

 
$
2,078

 
 
 
 
 
 
 
 
Denominators for earnings per share calculations:
 

 
 

 
 

 
 

Weighted average shares, basic
1,165

 
1,227

 
1,172

 
1,230

Effect of dilutive securities:


 


 
 

 
 

Stock options
8

 
8

 
8

 
7

Restricted stock units
1

 
1

 
2

 
1

Weighted average shares, diluted
1,174

 
1,236

 
1,182

 
1,238

Basic earnings per share:
 

 
 

 
 

 
 

Income from continuing operations
$
1.07

 
$
0.92

 
$
2.03

 
$
1.69

Loss from discontinued operations
$
—

 
$
—

 
$
—

 
$
—

Net income
$
1.07

 
$
0.92

 
$
2.03

 
$
1.69

Diluted earnings per share:
 
 
 
 
 
 
 
Income from continuing operations
$
1.06

 
$
0.91

 
$
2.01

 
$
1.68

Loss from discontinued operations
$
—

 
$
—

 
$
—

 
$
—

Net income
$
1.06

 
$
0.91

 
$
2.01

 
$
1.68