XML 67 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Computation of Basic/Diluted Earnings Per Common Share
 9 Months Ended
Sep. 30, 2013
Computation of Basic/Diluted Earnings Per Common Share  
Computation of basic/diluted earnings per common share

11.       Computation of basic/diluted earnings per common share

 

The following table sets forth the computation of basic and diluted earnings per common share (amounts in millions, except per share data):

     Three months ended September 30, Nine months ended September 30,
     2013 2012 2013 2012
                
Numerator:            
 Consolidated net income $56 $226 $837 $795
  Less: Distributed earnings to unvested            
   stock-based awards that participate            
   in earnings  ---  ---  (4)  (4)
  Less: Undistributed earnings allocated to            
   unvested stock-based awards that           
   participate in earnings  (1)  (5)  (14)  (12)
 Numerator for basic and diluted earnings per            
  common share - net income available to            
  common shareholders  55  221  819  779
                
Denominator:            
 Denominator for basic earnings per common            
  share - weighted-average common            
  shares outstanding  1,122  1,109  1,118  1,113
                
 Effect of potential dilutive common shares            
  under the treasury stock method:            
  Employee stock options  12  5  9  5
  Denominator for diluted earnings per            
   common share - weighted-average            
   common shares outstanding plus            
   dilutive effect of employee stock            
   options  1,134  1,114  1,127  1,118
                
Basic earnings per common share $ 0.05 $ 0.20 $ 0.73 $ 0.70
                
Diluted earnings per common share $ 0.05 $ 0.20 $ 0.73 $ 0.70

Our unvested restricted stock rights, which consist of restricted stock units, restricted stock awards, and performance shares, are considered participating securities, as they generally have non-forfeitable rights to dividends or dividend equivalents during the contractual period of the award. As such, we are required to use the two-class method in our computation of basic and diluted earnings per common share. For the three and nine months ended September 30, 2013, we had outstanding unvested restricted stock rights with respect to 24 million and 25 million shares of common stock on a weighted-average basis, respectively. For the three and nine months ended September 30, 2012, we had outstanding unvested restricted stock rights with respect to 27 million and 23 million shares of common stock on a weighted-average basis, respectively.

Potential common shares are not included in the denominator of the diluted earnings per common share calculation when inclusion of such shares would be anti-dilutive. Therefore, options to acquire 2 million and 8 million shares of common stock were not included in the calculation of diluted earnings per common share for the three and nine months ended September 30, 2013, respectively, and options to acquire 24 million and 20 million shares of common stock were not included in the calculation of diluted earnings per common share for the three and nine months ended September 30, 2012, respectively.

 

Refer to Notes 12 and 16 of the Notes to Condensed Consolidated Financial Statements for information on our issued and outstanding common stock after the completion of the Purchase Transaction.