Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share

Earnings Per Share

4.    Earnings Per Share

	Three-Month Periods Ended
	March 31,
(Amounts in millions, except per share)	2013		2012
Net income	$	384.9	$	401.5
Weighted-average shares:
Basic	417.9		438.3
Effect of dilutive securities:
Options, restricted stock units, warrants and other incentives	14.3		10.3
Diluted	432.2		448.6
Net income per share:
Basic	$	0.92	$	0.92
Diluted	$	0.89	$	0.90

The total number of potential shares of common stock excluded from the diluted earnings per share computation because their inclusion would have been anti-dilutive was 2.0 million and 5.2 million shares for the three-month periods ended March 31, 2013 and 2012, respectively.

Since April 2009, our Board of Directors has approved repurchases of up to an aggregate of $6.500 billion of our common stock.  As part of the existing Board authorized share repurchase program, in February 2013 we entered into an Accelerated Share Repurchase (ASR) agreement with an investment bank to repurchase an aggregate of $600.0 million of our common stock.  As part of the ASR agreement we received an initial delivery of 3.0 million shares, which is included in Common stock in treasury in the accompanying Consolidated Balance Sheet as of March 31, 2013, with a fair market value of $300.0 million.  The initial delivery of 3.0 million shares reduced our outstanding shares used to determine our weighted average shares outstanding for purposes of calculating basic and diluted earnings per share.  The remaining $300.0 million was included in Additional paid-in capital as of March 31, 2013.  The total number of shares that will ultimately be repurchased under the ASR agreement will be determined upon final settlement in May 2013 and will be based on a discount to the volume-weighted average price of our common stock during the ASR period.  We have evaluated the ASR agreement for its potential dilution of earnings per share and determined that the additional shares to be received upon final settlement would have had an anti-dilutive effect and as a result, these shares were not included in our weighted average diluted earnings per share calculation.

As of March 31, 2013, an aggregate of 81.6 million shares of common stock have been repurchased under the program, including 7.2 million shares of common stock repurchased from all sources, including the ASR, during the three-month period ended March 31, 2013.  As of March 31, 2013, we had a remaining open-ended repurchase authorization of $834.2 million after deducting the full $600.0 million paid under the ASR.