Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

Earnings Per Share [Text Block]

Note 4 — Earnings Per Share (“EPS”)

Basic and diluted earnings per share were computed as follows:

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended September 30,
2012
Shareholders' net income	$	466			$	466
Shares (in thousands):
Weighted average		284,891				284,891
Common stock equivalents				4,984		4,984
Total shares		284,891		4,984		289,875
EPS	$	1.64	$	(0.03)	$	1.61
2011
Shareholders' net income	$	183			$	183
Shares (in thousands):
Weighted average		268,569				268,569
Common stock equivalents				3,491		3,491
Total shares		268,569		3,491		272,060
EPS	$	0.68	$	(0.01)	$	0.67

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Nine Months Ended September 30,
2012
Shareholders' net income	$	1,217			$	1,217
Shares (in thousands):
Weighted average		285,247				285,247
Common stock equivalents				4,560		4,560
Total shares		285,247		4,560		289,807
EPS	$	4.27	$	(0.07)	$	4.20
2011
Shareholders' net income	$	987			$	987
Shares (in thousands):
Weighted average		269,163				269,163
Common stock equivalents				3,721		3,721
Total shares		269,163		3,721		272,884
EPS	$	3.67	$	(0.05)	$	3.62

In 2012, the Company adopted, as required,amended accounting guidance for deferred acquisition costsby selecting retrospective adjustment of prior periods. See Note 2 for the effect of this new guidance on previously reported EPS amounts.

The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect would have increased diluted earnings per share (antidilutive) as their exercise price was greater than the average share price of the Company's common stock for the period.

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(In millions)	2012	2011	2012	2011
Antidilutive options	3.9	3.9	3.4	3.6

The Company held 79,439,106shares of common stock in Treasury as of September 30, 2012, and 80,697,257shares as of September 30, 2011.