Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2016

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:

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Numerator:
Net income	$	55	$	74	$	119	$	195
Denominator:
Weighted average shares used to compute Basic EPS		145,678		144,133		145,618		143,662
Weighted average effect of dilutive securities:
Stock options		1,135		1,442		1,229		1,959
RSUs		404		253		314		265
Weighted average shares used to compute Diluted EPS		147,217		145,828		147,161		145,886
Basic EPS	$	0.38	$	0.51	$	0.82	$	1.35
Diluted EPS	$	0.37	$	0.51	$	0.81	$	1.34

Common Shares Related to Stock Options 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 (in thousands) because their effect would have been anti-dilutive for the periods presented:

	Three months ended September 30,				Nine months ended September 30,
	2016(1)		2015(2)		2016(1)		2015(2)
Stock options		3,065		2,110		2,997		2,119
RSUs		691		303		753		629
Total		3,756		2,413		3,750		2,748

(1)

These totals do not include 125,000 performance based options and 12,799 performance based RSUs representing the right to acquire 137,799 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 66,666 performance based options and 12,799 performance based RSUs representing the right to acquire 79,465 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.