Earnings Per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the calculation of basic and diluted earnings per share:

	Basic						Diluted
	Third Quarter
	2016			2015			2016			2015
	($ in millions, except per share amounts, shares in millions)
Net income	$	460		$	452		$	460		$	452
Dividend equivalent payments	(3		)	(2		)	(2		)	(1		)
Income available to common stockholders	$	457		$	450		$	458		$	451
Weighted-average shares outstanding	292.7			300.1			292.7			300.1
Dilutive effect of outstanding options
and share-settled awards							2.0			2.4
Adjusted weighted-average shares outstanding							294.7			302.5
Earnings per share	$	1.56		$	1.50		$	1.55		$	1.49

	Basic						Diluted
	First Nine Months
	2016			2015			2016			2015
	($ in millions, except per share amounts, shares in millions)
Net income	$	1,252		$	1,195		$	1,252		$	1,195
Dividend equivalent payments	(5		)	(5		)	(4		)	(3		)
Income available to common stockholders	$	1,247		$	1,190		$	1,248		$	1,192
Weighted-average shares outstanding	294.9			303.2			294.9			303.2
Dilutive effect of outstanding options
and share-settled awards							1.8			2.6
Adjusted weighted-average shares outstanding							296.7			305.8
Earnings per share	$	4.23		$	3.93		$	4.21		$	3.90

During the third quarters and first nine months of 2016 and 2015, dividend equivalent payments were made to holders of LTIP stock options and RSUs. For purposes of computing basic earnings per share, dividend equivalent payments made to holders of these stock options and RSUs were deducted from net income to determine income available to common stockholders. For purposes of computing diluted earnings per share, we evaluate on a grant-by-grant basis those stock options and RSUs receiving dividend equivalent payments under the two-class and treasury stock methods to determine which method is the more dilutive for each grant. For those grants for which the two-class method was more dilutive, net income was reduced by dividend equivalent payments to determine income available to common stockholders. The dilution calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows:

Period		2016	2015
	(in millions)
1st Quarter		1.5	—
2nd Quarter		1.5	0.7
3rd Quarter		1.5	1.5