Earnings Per Share

9 Months Ended

Sep. 30, 2016

EARNINGS PER SHARE

The table below presents the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share:



	Three Months Ended				Nine Months Ended
(in millions, except per share amounts)	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Computation of Basic Earnings Per Share
Net income	$	70	$	210	$	536	$	657
Shares for basic earnings per share	266.2		262.2		258.3		270.7
Basic earnings per share	$	0.26	$	0.80	$	2.08	$	2.43
Computation of Diluted Earnings Per Share
Net income	$	70	$	210	$	536	$	657
Shares for basic earnings per share	266.2		262.2		258.3		270.7
Effect of dilutive securities
Employee stock option and appreciation right plans	1.7		2.2		1.8		2.3
Deferred stock incentive plans	0.5		0.6		0.5		0.6
Restricted stock units and restricted stock	2.1		2.3		2.1		2.5
Shares for diluted earnings per share	270.5		267.3		262.7		276.1
Diluted earnings per share	$	0.26	$	0.78	$	2.04	$	2.38

We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We excluded antidilutive stock options and stock appreciation rights of 0.3 million for both the 2016 third quarter and the 2015 third quarter, 0.3 million for the 2016 first three quarters, and 0.2 million for the 2015 first three quarters from our calculation of diluted earnings per share because their exercise prices were greater than the average market prices.