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Earnings Per Share and Share Repurchases
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share and Share Repurchases
10. EARNINGS PER SHARE AND SHARE REPURCHASES
Basic earnings per share is calculated by dividing net income or loss attributable to NCR by the weighted average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted average number of shares outstanding includes the dilution from potential shares added from unvested restricted stock awards and stock options. The holders of unvested restricted stock awards do not have nonforfeitable rights to dividends or dividend equivalents and therefore, such unvested awards do not qualify as participating securities.
The components of basic and diluted earnings per share are as follows:
In millions, except per share amounts
Three months ended September 30
 
Nine months ended September 30
2012
 
2011
 
2012
 
2011
Amounts attributable to NCR common stockholders:
 
 
 
 
 
 
 
Income from continuing operations
$
58

 
$
23

 
$
163

 
$
87

(Loss) income from discontinued operations, net of tax
(1
)
 
(7
)
 
3

 
(25)

Net income applicable to common shares
$
57

 
$
16

 
$
166

 
$
62

Weighted average outstanding shares of common stock
159.6

 
157.4

 
158.9

 
158.1

Dilutive effect of employee stock options and restricted stock
5.2

 
2.8

 
5.1

 
2.8

Common stock and common stock equivalents
164.8

 
160.2

 
164.0

 
160.9

Earnings per share attributable to NCR common stockholders:
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
From continuing operations
$
0.36

 
$
0.15

 
$
1.03

 
$
0.55

From discontinued operations
$
—

 
$
(0.05
)
 
$
0.01

 
$
(0.16
)
Net earnings per share (Basic)
$
0.36

 
$
0.10

 
$
1.04

 
$
0.39

Diluted earnings per share:
 
 
 
 
 
 
 
From continuing operations
$
0.35

 
$
0.14

 
$
0.99

 
$
0.54

From discontinued operations
$
—

 
$
(0.04
)
 
$
0.02

 
$
(0.15
)
Net earnings per share (Diluted)
$
0.35

 
$
0.10

 
$
1.01

 
$
0.39


Options to purchase approximately 0.3 million and 3.0 million shares of common stock for the three months ended September 30, 2012 and 2011, respectively, as well as 1.2 million and 2.5 million for the nine months ended September 30, 2012 and 2011, respectively, were outstanding but were not included in the diluted share count because the options’ exercise prices were greater than the average market price of the underlying common shares and, therefore, the effect would have been anti-dilutive.
For the three and nine months ended September 30, 2012 and for the three months ended September 30, 2011, the Company did not repurchase any shares of its common stock. For the nine months ended September 30, 2011, the Company repurchased approximately 3.6 million shares of its common stock for $70 million. Upon repurchase, shares are retired.