Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share

Earnings Per Share [Text Block]

Note 4 — Earnings Per Share (“EPS”)

Basic and diluted earnings per share were computed as follows:

			Effect of
(Dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended March 31,
2012
Shareholders' net income	$	371			$	371
Shares (in thousands):
Weighted average		285,159				285,159
Common stock equivalents				3,840		3,840
Total shares		285,159		3,840		288,999
EPS	$	1.30	$	(0.02)	$	1.28
2011
Shareholders' net income	$	413			$	413
Shares (in thousands):
Weighted average		270,377				270,377
Common stock equivalents				3,496		3,496
Total shares		270,377		3,496		273,873
EPS	$	1.53	$	(0.02)	$	1.51

In 2012, the Company adopted, as required,amended accounting guidance for deferred acquisition costsby selecting retrospective adjustment of prior periods. See Note 2 for the effect of this new guidance on previously reported EPS amounts.

The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect would have increased diluted earnings per share (antidilutive) as their exercise price was greater than the average share price of the Company's common stock for the period.

	Three Months Ended
	March 31,
(In millions)	2012	2011
Antidilutive options	3.8	4.1

The Company held 77,847,260shares of common stock in Treasury as of March 31, 2012, and 80,240,471shares as of March 31, 2011.