Net Income Per Share

9 Months Ended

Sep. 30, 2011

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Net Income Per Share

Net Income Per Share

Accounting guidance for earnings per share (EPS) requires presentation of “basic” and “diluted” earnings per share on the face of the statements of operations for all entities with complex capital structures as well as a reconciliation of the numerator and denominator of the basic and diluted EPS computations.

For the Current Quarter and the Current Period, the following shares of unvested restricted stock and cumulative convertible preferred stock and associated adjustments to net income, consisting of dividends on such shares, were not included in the calculation of diluted EPS, as the effect was antidilutive: 

	Net Income Adjustments		Shares
	($ in millions)		(in millions)
Three Months Ended September 30, 2012:
Common stock equivalent of our preferred stock outstanding:
5.75% cumulative convertible preferred stock	$	21	56
5.75% cumulative convertible preferred stock (series A)	$	16	39
5.00% cumulative convertible preferred stock (series 2005B)	$	3	5
4.50% cumulative convertible preferred stock	$	3	6
Unvested restricted stock	$	—	3
Nine Months Ended September 30, 2012:
Common stock equivalent of our preferred stock outstanding:
5.75% cumulative convertible preferred stock	$	64	56
5.75% cumulative convertible preferred stock (series A)	$	47	39
5.00% cumulative convertible preferred stock (series 2005B)	$	8	5
4.50% cumulative convertible preferred stock	$	9	6
Unvested restricted stock	$	—	4

As a result of the net loss to common stockholders in the Current Quarter and the Current Period, basic weighted average shares outstanding, which is used in computing basic EPS, and diluted weighted average shares outstanding, which is used in computing diluted EPS, were the same in both periods: 644 million shares in the Current Quarter and 643 million shares in the Current Period. The basic and diluted loss per common share was $3.19 and $1.86 in the Current Quarter and the Current Period, respectively.

For the Prior Quarter and the Prior Period, all outstanding securities that were convertible into common stock were included in the calculation of diluted EPS. A reconciliation of basic EPS and diluted EPS for the Prior Quarter and the Prior Period is as follows: 

	Income (Numerator)		Weighted Average Shares (Denominator)	Per Share Amount
	(in millions, except per share data)
Three Months Ended September 30, 2011:
Basic EPS	$	879	638	$	1.38
Effect of Dilutive Securities:
Assumed conversion as of the beginning of the period     of preferred shares outstanding during the period:
Common shares assumed issued for 5.75% cumulative     convertible preferred stock	21		56
Common shares assumed issued for 5.75% cumulative     convertible preferred stock (series A)	16		39
Common shares assumed issued for 5.00% cumulative     convertible preferred stock (series 2005B)	3		5
Common shares assumed issued for 4.50% cumulative     convertible preferred stock	3		6
Unvested restricted stock	—		8
Outstanding stock options	—		1
Diluted EPS	$	922	753	$	1.23
Nine Months Ended September 30, 2011:
Basic EPS	$	1,141	636	$	1.79
Effect of Dilutive Securities:
Assumed conversion as of the beginning of the period     of preferred shares outstanding during the period:
Common shares assumed issued for 5.75% cumulative     convertible preferred stock	64		56
Common shares assumed issued for 5.75% cumulative     convertible preferred stock (series A)	47		39
Common shares assumed issued for 5.00% cumulative     convertible preferred stock (series 2005B)	8		5
Common shares assumed issued for 4.50% cumulative     convertible preferred stock	9		6
Unvested restricted stock	—		9
Outstanding stock options	—		1
Diluted EPS	$	1,269	752	$	1.69