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

12 Months Ended

Dec. 31, 2014

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

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

18.       Computation of Basic/Diluted Earnings Per Common Share

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

				For the Years Ended December 31,
				2014		2013		2012
Numerator:
	Consolidated net income			$	835	$	1,010	$	1,149
		Less: Distributed earnings to unvested stock-based awards
			that participate in earnings		(4)		(5)		(4)
		Less: Undistributed earnings allocated to unvested stock-based
			awards that participate in earnings		(14)		(18)		(20)
	Numerator for basic and diluted earnings per common share - income
		available to common shareholders		$	817	$	987	$	1,125
Denominator:
	Denominator for basic earnings per common share - weighted-average
		common shares outstanding			716		1,024		1,112
	Effect of potential dilutive common shares under the treasury stock
		method: Employee stock options			10		11		6
		Denominator for diluted earnings per common share - weighted-
			average common shares outstanding plus dilutive effect
			of employee stock options		726		1,035		1,118
Basic earnings per common share				$	1.14	$	0.96	$	1.01
Diluted earnings per common share				$	1.13	$	0.95	$	1.01

Certain of our unvested restricted stock rights (including certain restricted stock units, restricted stock awards, and performance shares) met the definition of participating securities based on their rights to dividends or dividend equivalents. Therefore, we are required to use the two-class method in our computation of basic and diluted earnings per common share. For the years ended December31, 2014 and 2013, on a weighted-average basis, we had outstanding unvested restricted stock rights with respect to 15 million and 24 million shares of common stock that are participating in earnings, respectively.

Certain of our employee-related restricted stock rights are contingently issuable upon the satisfaction of pre-defined performance measures. These shares are included in the weighted-average dilutive common shares only if the performance measures are met as of the end of the reporting period. Approximately 4 millionshares are not included in the computation of diluted earnings per share for the year ended December31, 2014as their respective performance measures have not been met.

Potential common shares are not included in the denominator of the diluted earnings per common share calculation when the inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. Therefore, options to acquire 2 million, 5 million, and 25 million shares of common stock were not included in the calculation of diluted earnings per common share for the years ended December31, 2014, 2013, and 2012, respectively, as the effect of their inclusion would be anti-dilutive.

See Note 1 of the Notes to Consolidated Financial Statements for details of the Purchase Transaction which reduced outstanding sharesin 2014 as compared to 2013.