Earnings per Share

6 Months Ended

Jul. 02, 2011

Earnings per Share [Abstract]

Earnings per Share

Note 8 - Earnings per Share

We computed earnings per share by dividing net income by weighted average shares outstanding using the following:

		Second Quarter				First Six Months
		2011		2010		2011		2010
		(In millions)
Earnings for basic and diluted earnings per share:
Net income	$	19	$	20	$	34	$	15
Less: Distributed and undistributed amounts allocated to participating securities		--		---		--		---
		19		20		34		15
Less: Net (income) loss attributable to noncontrolling interest of special purpose entities		--		---		1		1
Net income available to common shareholders	$	19	$	20	$	35	$	16
Weighted average shares outstanding:
Weighted average shares outstanding - basic		108.6		107.9		108.5		107.8
Dilutive effect of stock options and unvested stock-settled restricted stock units		2.2		1.8		2.1		1.7
Weighted average shares outstanding - diluted		110.8		109.7		110.6		109.5

Participating securities include unvested cash-settled restricted stock units issued to employees that contain non-forfeitable rights to dividends.  There are no participating securities in 2011.

Certain employees of entities spun off in 2007 participated in our employee stock option program.  Following the spin-offs, these employees retained stock option rights associated with our stock.  These stock options will remain a consideration in our dilutive effect of stock options until they are exercised, cancelled or expire.  Information regarding options held by employees of spun-off entities follows:

	Second Quarter-End
		2011		2010
		(Shares in thousands)
Options held		305		451
Options exercisable		305		436
Weighted average exercise price	$	20	$	19
Weighted average remaining contractual term (in years)		4		5

Stock options outstanding that were not included in the computation of diluted common shares outstanding because their exercise price exceeded the average market price of our common stock were as follows:

	Second Quarter		First Six Months
	2011	2010	2011	2010
	(Shares in thousands)
Options outstanding held by employees	--	649	1,058	1,358
Options outstanding held by employees of spun-off entities	--	160	160	279