Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Reconciliation of Weighted Average Number of Shares of Common Stock Outstanding

Below is a reconciliation of the weighted average number of shares of common stock outstanding in calculating Diluted EPS (shares in thousands and dollars in millions, except per share amounts):

	Three Months Ended
	March 31,
	2014		2013
Numerator:
Net income	$	68	$	62
Denominator:
Weighted average shares used to compute Basic EPS		142,399		143,063
Weighted average effect of dilutive securities:
Stock options		2,884		1,401
RSUs		382		191
Weighted average shares used to compute Diluted EPS		145,665		144,655
Basic EPS	$	0.48	$	0.44
Diluted EPS	$	0.47	$	0.43

Common Shares Related to Stock Options and RSUs Excluded from Calculated Diluted Net Income Per Share

The following potential common shares related to stock options and RSUs were excluded from the calculation of Diluted EPS because their effect would have been anti-dilutive for the periods presented (in thousands):

	Three Months Ended
	March 31,
	2014(1)		2013(2)
Stock options		1,688		4,577
RSUs		439		-
Total		2,127		4,577

(1) These totals do not include 121,666 performance based options and 44,000 performance based RSUs representing the right to acquire 165,666 shares of common stock for which all targets required to trigger vesting have not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

(2) These totals do not include performance based options representing the right to acquire 210,000 shares of common stock for which all targets required to trigger vesting have not been achieved as of March 31, 2013; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.