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Earnings Per Share
 6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share
Earnings Per Share
Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding plus the dilutive effect, if any, of market share units, or MSUs, performance shares, restricted stock units, or RSUs, stock options, deferred shares associated with our deferred compensation program for non-employee directors and, for the applicable periods, the potential conversion of our 10% convertible senior notes due 2018, which were converted into common stock in December 2013 and April 2014. See Note 7.
The reconciliation of basic earnings per share to diluted earnings per share is shown in the following table.
 
Three months ended June 30,
 
Six months ended June 30,
 
 
(millions, except per-share data)
2014
 
2013
 
2014
 
2013
Income from continuing operations
$
58

 
$
25

 
$
103

 
$
27

Loss from discontinued operations
(1
)
 
—

 
(1
)
 
—

Net income
57

 
25

 
102

 
27

Effect of dilutive securities - RSUs, MSUs, performance shares and stock options
—

 
—

 
—

 
—

Effect of dilutive securities - 10% convertible senior notes
—

 
—

 
2

 
—

Effect of dilutive securities - Deferred compensation program for non-employee directors
—

 
—

 
—

 
—

Income available to shareholders
$
57

 
$
25

 
$
104

 
$
27

 
 
 
 
 
 
 
 
Average common shares
144.5

 
108.5

 
139.7

 
108.4

Dilutive RSUs, MSUs, performance shares and stock options
2.3

 
2.3

 
2.5

 
2.6

Common shares issuable upon conversion of our 10% convertible senior notes
—

 
—

 
4.7

 
—

Deferred shares associated with a deferred compensation program for non-employee directors
0.2

 
0.2

 
—

 
0.2

Average diluted common shares
147.0

 
111.0

 
146.9

 
111.2

 
 
 
 
 
 
 
 
Earnings (loss) per average common share:
 
 
 
 
 
 
 
     Income from continuing operations
$
0.40

 
$
0.23

 
$
0.74

 
$
0.25

     Loss from discontinued operations
(0.01
)
 
—

 
(0.01
)
 
—

Earnings per average common share
$
0.39

 
$
0.23

 
$
0.73

 
$
0.25

 
 
 
 
 
 
 
 
Diluted earnings (loss) per average common share:
 
 
 
 
 
 
 
     Income from continuing operations
$
0.39

 
$
0.22

 
$
0.72

 
$
0.24

     Loss from discontinued operations
(0.01
)
 
—

 
(0.01
)
 
—

Earnings per average diluted common share
$
0.38

 
$
0.22

 
$
0.71

 
$
0.24

In December 2013, we converted $325 million of our 10% convertible senior notes due 2018 into approximately 28.5 million common shares. In April 2014, we converted the remaining $75 million of these notes into approximately 6.6 million common shares. See further discussion in Note 7.
MSUs, performance shares, RSUs, stock options and common shares issuable upon conversion of our 10% convertible senior notes that were not included in the computation of diluted earnings per share for those periods because their inclusion would be anti-dilutive were as follows:
 
Three months ended June 30,
 
Six months ended June 30,
(millions, common shares)
2014
 
2013
 
2014
 
2013
MSUs, performance shares, RSUs and stock options
2.1

 
2.3

 
2.1

 
2.3

10% convertible senior notes due 2018
—

 
35.1

 
—

 
35.1