Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

2.   Earnings Per Share

The computation of basic and diluted earnings per share ("EPS") is based on the Company's net income available to common stockholders divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively.

The following table sets forth the computation of basic and diluted EPS (in millions, except per share data):

	Three Months Ended					Six Months Ended
		June 30,					June 30,
		2011		2010			2011		2010
Net income		$	114	$	95		$	186	$	145
Basic weighted average shares outstanding			167		180			170		180
Stock options, SSARs and restricted stock units ("RSUs") (a)			3		4			3		3
Warrants (b)			—		3			1		3
Diluted weighted average shares outstanding			170		187			174		186
Earnings per share:
Basic		$	0.68	$	0.53		$	1.10	$	0.81
Diluted			0.67		0.51			1.07		0.78

        ­ ­

(a)	Includes unvested dilutive RSUs which are subject to future forfeitures.
(b)	Represents the dilutive effect of warrants to purchase shares of the Company's common stock related to the May 2009 issuance of the Company's convertible notes (see Note 6 — Long-Term Debt and Borrowing Arrangements).

The computations of diluted EPS do not include 2 million and 3 million stock options and stock-settled stock appreciation rights ("SSARs") for the three and six months ended June 30, 2011, respectively, as the effect of their inclusion would have been anti-dilutive to EPS. In addition, the three and six months ended June 30, 2011 exclude approximately 350,000 performance-based stock units ("PSUs") as the Company had not met the required performance metrics as of June 30, 2011 (see Note 13—Stock-Based Compensation for further details). The computations of diluted EPS for both the three and six months ended June 30, 2010 do not include 4 million stock options and SSARs as the effect of their inclusion would have been anti-dilutive to EPS.

Dividend Payments

During the quarterly periods ended March 31 and June 30, 2011, the Company paid cash dividends of $0.15 per share ($53 million in the aggregate). During the quarterly periods ended March 31 and June 30, 2010, the Company paid cash dividends of $0.12 per share ($44 million in the aggregate).

 Stock Repurchase Program

On April 25, 2011, the Company's Board of Directors authorized an increase of $500 million to the Company's existing stock repurchase program, bringing the total authorization to $1.0 billion. The following table summarizes stock repurchase activity under the current stock repurchase program:

					Average
	Shares		Cost		Price
As of December 31, 2010		11.4	$	295	$	25.78
For the six months ended June 30, 2011		11.8		373		31.60
As of June 30, 2011		23.2	$	668		28.74

The Company had $395 million remaining availability in its program as of June 30, 2011. The total capacity of this program is increased by proceeds received from stock option exercises.