Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2013

Basic and diluted net earnings per share

The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share.



	Year Ended December 31,
	2013		2012		2011
Net Income (in millions)	$	228	$	297	$	279
Shares (in thousands):
Weighted average common shares outstanding	185,082		185,459		184,574
Add: Participating securities (a)	134		325		485
Weighted average common shares outstanding — Basic	185,216		185,784		185,059
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	264		213		202
Dilutive effect of restricted stock	558		233		63
Weighted average common shares outstanding — Diluted	186,038		186,230		185,324
Basic earnings per share	$	1.23	$	1.60	$	1.51
Diluted earnings per share	$	1.22	$	1.59	$	1.50


(a)	Restricted stock awards containing rights to non-forfeitable dividends which participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share.

(b)

Incremental shares from stock options, restricted stock and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock and performance share awards, reduced by the repurchase of shares with the proceeds from the assumed exercises, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises. Performance share units will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance conditions. See Note 16, "Stock-Based Compensation Plans" for further detail on the performance share units.

Incremental shares from stock options and restricted stock



	Year Ended December 31,
(in thousands)	2013	2012	2011
Stock options	4,126	4,285	4,445
Restricted shares	703	870	788
Performance shares	80	—	—