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Computation of Basic/Diluted Earnings Per Common Share
 12 Months Ended
Dec. 31, 2015
Earnings Per Share [Abstract]  
Computation of Basic/Diluted Earnings Per Common Share
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,
 
2015
 
2014
 
2013
Numerator:
 

 
 

 
 

Consolidated net income
$
892

 
$
835

 
$
1,010

Less: Distributed earnings to unvested stock-based awards that participate in earnings
(4
)
 
(4
)
 
(5
)
Less: Undistributed earnings allocated to unvested stock-based awards that participate in earnings
(7
)
 
(14
)
 
(18
)
Numerator for basic and diluted earnings per common share—income available to common shareholders
$
881

 
$
817

 
$
987

Denominator:
 
 
 
 
 
Denominator for basic earnings per common share—weighted-average common shares outstanding
728

 
716

 
1,024

Effect of potential dilutive common shares under the treasury stock method: Employee stock options
11

 
10

 
11

Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive effect of employee stock options
739

 
726

 
1,035

Basic earnings per common share
$
1.21

 
$
1.14

 
$
0.96

Diluted earnings per common share
$
1.19

 
$
1.13

 
$
0.95


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 December 31, 2015 and 2014, on a weighted-average basis, we had outstanding unvested restricted stock rights with respect to 8 million and 15 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 3 million shares are not included in the computation of diluted earnings per share for the year ended December 31, 2015 as their respective performance measures have not been met. Approximately 4 million shares are not included in the computation of diluted earnings per share for the year ended December 31, 2014 as 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 1 million, 2 million, and 5 million shares of common stock were not included in the calculation of diluted earnings per common share for the years ended December 31, 2015, 2014, and 2013, 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 shares in 2014 as compared to 2013.