Computation of Earnings (Loss) Per Basic/Diluted Common Share

12 Months Ended

Dec. 31, 2011

Computation of Earnings (Loss) Per Basic/Diluted Common Share

Computation of Earnings (Loss) Per Basic/Diluted Common Share

14.       Computation of Basic/Diluted Earnings (Loss)Per Common Share

The following table sets forth the computation of basic and diluted earnings (loss) per common share (amounts in millions, except per share data):

				Years Ended December 31,
				2011		2010		2009
Numerator:
	Consolidated net income			$	1,085	$	418	$	113
		Less: Distributed earnings to unvested
			stock-based awards that participate
			in earnings		(3)		(2)		---
		Less: Undistributed earnings allocated to
			unvested stock-based awards that
			participate in earnings		(13)		(2)		(1)
	Numerator for basic and diluted earnings per
		common share - income available to
		common shareholders			1,069		414		112
Denominator:
	Denominator for basic earnings per common
		share - weighted-average common
		shares outstanding			1,148		1,222		1,283
	Effect of potential dilutive common shares
		under the treasury stock method:
		Employee stock options			8		14		28
		Denominator for diluted earnings per
			common share - weighted-average
			common shares outstanding plus
			dilutive effect of employee stock
			options		1,156		1,236		1,311
Basic earnings per common share				$	0.93	$	0.34	$	0.09
Diluted earnings per common share				$	0.92	$	0.33	$	0.09

Our unvested restricted stock rights (including restricted stock units, restricted stock awards, and performance shares) are considered participating securities since these securities have non-forfeitable rights to dividends or dividend equivalents during the contractual period of the award. Since the unvested restricted stock rights are considered participating securities, we are required to use the two-class method in our computation of basic and diluted earnings per common share. For the years endedDecember 31,2011 and 2010, we had outstanding unvested restricted stock rights with respect to 17 million and 12 million shares of common stock on a weighted-average basis, respectively.

Potential common shares are not included in the denominator of the diluted earnings per common share calculation when inclusion of such shares would be anti-dilutive. Therefore, options to acquire 25 million, 25 million, and 20 million shares of common stock were not included in the calculation of diluted earnings (loss) per common share for the years ended December 31, 2011, 2010, and 2009, respectively, as the effect of their inclusion would be anti-dilutive.