Earnings Per Share

12 Months Ended

Dec. 31, 2013

Note 17: Earnings Per Share

Earnings per share is calculated using the two-class method in which earnings are allocated to common stock and participating securities based on their rights to receive nonforfeitable dividends or dividend equivalents. The Company grants restricted stock and restricted stock units to certain employees and non-employee directors in accordance with the Company's long-term incentive programs, which entitle the participants to receive nonforfeitable dividends or dividend equivalents during the vesting period on the same basis as those dividends are paid to common shareholders. These unvested stock awards represent participating securities. During periods of net income, the calculation of earnings per share exclude the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. During periods of net loss, no effect is given to participating securities in the numerator and the denominator excludes the dilutive impact of these securities since they do not share in the losses of the Company.

Basic earnings per share excludes dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of all stock options, warrants and unvested restricted stock outstanding during the period that could potentially result in the issuance of common stock. The dilution from stock options, warrants and unvested restricted stock are calculated by applying the two-class method and using the treasury stock method. The treasury stock method assumes the proceeds from the exercise of stock options and warrants or the unrecognized compensation expense from unvested restricted stock will be used to purchase shares of the Company's common stock at the average market price during the period. For the years ended December 31, 2013, 2012 and 2011, there were 32,206,222, 31,927,315 and 32,628,037, respectively, of stock options, warrants and unvested restricted stock outstanding that were not included in the diluted earnings per share calculation because they were antidilutive.

The following table presents the computation of basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011:

		Years Ended December 31,
$ in millions except share and per share amounts		2013		2012			2011
Basic earnings per share:
	Net income (loss)	$	250	$	1,234	$	(1,319)
	Less: undistributed earnings allocated to participating securities		5		32		0
	Net income (loss) available to common shareholders		245		1,202⁽¹⁾		(1,319)

	Basic weighted average shares⁽²⁾		189,071,011		188,834,626⁽¹⁾		192,505,045⁽¹⁾

	Net income (loss) per basic common share	$	1.30	$	6.36	$	(6.85)⁽¹⁾

Diluted earnings per share:
	Net income (loss)		250		1,234		(1,319)
	Less: undistributed earnings allocated to participating securities		5		32		0
	Net income (loss) available to common shareholders		245		1,202⁽¹⁾		(1,319)

	Basic weighted average shares⁽²⁾		189,071,011		188,834,626		192,505,045
	Effect of common stock equivalents:
	Stock options		1,241,902		1,062,395		0
	Diluted weighted average shares		190,312,913		189,897,021⁽¹⁾		192,505,045⁽¹⁾

	Net income (loss) per diluted common share	$	1.29	$	6.33	$	(6.85)⁽¹⁾


	(1) Amounts shown are revised.
	(2) Includes 629,896, 506,714 and 565,819 of participating securities that met the service condition and were eligible to receive nonforfeitable dividends or dividend
	equivalents for the years ended December 31, 2013, 2012 and 2011, respectively.

Revision of Prior Periods' Earnings Per Share Calculation

During the fourth quarter of 2013, the Company identified errors in the calculation of its previously reported basic and diluted earnings per share. Basic earnings per share was revised to correct the allocation of net income to participating securities under the two-class method. Diluted earnings per share was revised to correct the application of the treasury stock method to certain liability-classified warrants. The Company evaluated the materiality of these errors in accordance with SEC Staff Accounting Bulletin No. 99, Materiality, and SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements, and concluded that these errors, individually and in the aggregate, were immaterial to all prior periods. While the adjustments were immaterial, the Company revised its previously reported basic and diluted earnings per share as shown in the following table:

		Years Ended December 31,			September 30, 2013 (unaudited)			June 30, 2013 (unaudited)			March 31, 2013 (unaudited)
$ in millions except share and per share amounts		2012		2011	Three Months Ended		Nine Months Ended	Three Months Ended		Six Months Ended	Three Months Ended
Numerator:
	Net income (loss) - basic and diluted as reported		$ 1,234	$ (1,319)		$ 132	$ 118		$ (178)	$ (14)	$ 164
	Net income (loss) - basic as revised		$ 1,202	$ (1,319)		$ 129	$ 115		$ (178)	$ (14)	$ 159
	Net income (loss) -diluted as revised		$ 1,202	$ (1,319)		$ 101	$ 110		$ (178)	$ (14)	$ 159

Denominator:
	Weighted average shares - basic as reported		193,842,435	197,019,968		192,711,608	193,440,078		193,104,610	193,810,351	194,523,933
	Weighted average shares - basic as revised		188,834,626	192,505,045		188,931,800	189,094,678		189,163,527	189,135,587	189,111,170
	Weighted average shares - diluted as reported		194,904,830	197,019,968		196,746,771	197,762,488		193,104,610	193,810,351	195,631,960
	Weighted average shares - diluted as revised		189,897,021	192,505,045		192,581,064	193,031,189		189,163,527	189,135,587	190,219,197

Net income (loss) per common share:
	Basic - as reported		$ 6.36	$ (6.69)		$ 0.68	$ 0.61		$ (0.92)	$ (0.07)	$ 0.84
	Basic - as revised		$ 6.36	$ (6.85)		$ 0.68	$ 0.61		$ (0.94)	$ (0.07)	$ 0.84
	Diluted - as reported		$ 6.33	$ (6.69)		$ 0.67	$ 0.60		$ (0.92)	$ (0.07)	$ 0.84
	Diluted - as revised		$ 6.33	$ (6.85)		$ 0.52	$ 0.57		$ (0.94)	$ (0.07)	$ 0.84

- Definition

The entire disclosure for earnings per share.

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