Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

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

	Three Months Ended
	March 31,
	2014		2013
Net income (in millions)	$	49	$	41
Shares (in thousands):
Weighted average common shares outstanding	184,505		185,573
Add: Participating securities (a)	42		234
Weighted average common shares outstanding — Basic	184,547		185,807
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	659		178
Dilutive effect of restricted stock	563		450
Weighted average common shares outstanding — Diluted	185,769		186,435
Basic earnings per share	$	0.27	$	0.22
Diluted earnings per share	$	0.27	$	0.22

(a) Restricted stock awards containing rights to non-forfeitable dividends that 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 14, "Stock-Based Compensation Plans" for further detail on the performance share units.

	Three Months Ended
	March 31,
(in thousands)	2014	2013
Stock options	2,746	4,130
Restricted stock	449	757
Performance shares	69	40