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				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Net income	$	175	$	156	$	361	$	300
Basic weighted average shares outstanding		159		177		166		179
Stock options, SSARs and RSUs ^(a)		3		4		3		4
Warrants ^(b)		—		3		1		3
Diluted weighted average shares outstanding		162		184		170		186
Earnings per share:
Basic	$	1.10	$	0.88	$	2.17	$	1.68
Diluted		1.08		0.84		2.12		1.62

(a)	Includes unvested dilutive restricted stock units ("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 7—Long-Term Debt and Borrowing Arrangements).

The computations of diluted EPS do not include 3 million stock options and stock-settled stock appreciation rights ("SSARs") for both the three and nine months ended September 30, 2011 as the effect of their inclusion would have been anti-dilutive to EPS. In addition, the three and nine months ended September 30, 2011 exclude approximately 350,000 performance-based stock units ("PSUs") as the Company had not met the required performance metrics as of September 30, 2011 (see Note 14—Stock-Based Compensation for further details). The computations of diluted EPS for both the three and nine months ended September 30, 2010 do not include 4 million stock options and SSARs as the effect of their inclusion would have been anti-dilutive to EPS.

During the quarterly periods ended March 31, June 30 and September 30, 2011, the Company paid cash dividends of $0.15 per share ($76 million in the aggregate). During the quarterly periods ended March 31, June 30 and September 30, 2010, the Company paid cash dividends of $0.12 per share ($65 million in the aggregate).

On both April 25, 2011 and August 11, 2011, the Company's Board of Directors authorized an increase of $500 million to the Company's existing stock repurchase program. As of September 30, 2011, the total authorization of the program was $1.5 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 nine months ended September 30, 2011	22.0			677		30.74
As of September 30, 2011	33.4	$		972		29.05

The Company had $592 million remaining availability in its program as of September 30, 2011. The total capacity of this program is increased by proceeds received from stock option exercises.