Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Changes in the Allowance for Doubtful Accounts

The following table presents the changes in the allowance for doubtful accounts for the periods presented:

	December 31,
	2014		2013			2012
	(in millions)
Allowance for doubtful accounts:
Balance, beginning of period	$	3	$	3		$	5
Charges (recoveries) to earnings		3		1			(1	)
Write-offs, net of recoveries and other adjustments		1		(1	)		(1	)
Balance, end of period	$	7	$	3		$	3

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) for the periods presented:

	Year ended December 31,
	2014		2013		2012
Numerator:
Net income	$	226	$	205	$	194
Denominator:
Weighted average shares used to compute Basic EPS		142,721		142,854		139,462
Weighted average effect of dilutive securities:
Stock options		2,734		2,131		1,207
RSUs		345		278		161
Stock warrants		-		-		511
Weighted average shares used to compute Diluted EPS		145,800		145,263		141,341
Basic EPS	$	1.58	$	1.44	$	1.39
Diluted EPS	$	1.55	$	1.41	$	1.37

Common Shares Related to Stock Options, Stock Warrants and RSUs Excluded from Calculated Diluted EPS

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:

	Year ended December 31,
	2014(1)		2013(2)		2012(3)
Stock options		1,450		2,244		3,944
RSUs		191		27		21
Total		1,641		2,271		3,965

(1)

These totals do not include 66,666 performance based options and 44,000 performance based RSUs representing the right to acquire 110,666 shares of common stock for which all targets required to trigger vesting had 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 155,000 performance based options and 44,000 performance based RSUs representing the right to acquire 199,000 shares of common stock for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

(3)

These totals do not include 110,000 performance based options and 200,000 performance based RSUs representing the right to acquire 310,000 shares of common stock, respectively, for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.