Basic and Diluted Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

Basic and Diluted Earnings Per Share

Basic earnings per share of common stock is computed using the weighted average number of shares of common stock outstanding during each period. The diluted earnings per share of common stock include the effect of outstanding stock options, shares of restricted stock, or shares of our common stock held in a rabbi trust (when dilutive). The following table summarizes the calculation of basic and diluted earnings per share: 

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
(millions, except per share amounts)
Income from Continuing Operations	$	275		$	269		$	524		$	235
Earnings Adjustment from Assumed Conversion of Dilutive Shares of Common Stock in Rabbi Trust (1)	(7		)	(4		)	(5		)	—
Income from Continuing Operations Used for Diluted Earnings Per Share Calculation	$	268		$	265		$	519		$	235
Weighted Average Number of Shares Outstanding, Basic	178			176			178			176
Incremental Shares From Assumed Conversion of Dilutive Stock Options, Restricted Stock and Shares of Common Stock in Rabbi Trust	2			3			2			2
Weighted Average Number of Shares Outstanding, Diluted	180			179			180			178
Earnings from Continuing Operations Per Share, Basic	$	1.55		$	1.51		$	2.95		$	1.33
Earnings from Continuing Operations Per Share, Diluted	1.49			1.47			2.88			1.31
Number of antidilutive stock options, shares of restricted stock and shares of common stock in rabbi trust excluded from calculation above	3			2			3			3

⁽¹⁾  Consistent with GAAP, when dilutive, deferred compensation gains or losses, net of tax, are excluded from net income while our common shares held in the rabbi trust are included in the diluted share count. For this reason, the diluted earnings per share calculations for the three months ended June 30, 2012 and 2011 and for the six months ended June 30, 2012 exclude deferred compensation gains, net of tax.