Earnings Per Common Share

9 Months Ended

Sep. 30, 2016

Earnings Per Common Share

Basic and diluted earnings per common share for the three and nine months ended September 30, 2016 and 2015 were calculated as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2016			2015		2016		2015
	(Dollars in millions, except per share amounts, shares in thousands)
Income (Numerator):
Net income	$	152		205		584		540
Earnings applicable to non-vested restricted stock	—			—		—		—
Net income applicable to common stock for computing basic earnings per common share	152			205		584		540
Net income as adjusted for purposes of computing diluted earnings per common share	$	152		205		584		540
Shares (Denominator):
Weighted-average number of shares:
Outstanding during period	546,310			559,991		545,715		563,391
Non-vested restricted stock	(6,504		)	(5,094	)	(6,304	)	(4,889	)
Weighted-average shares outstanding for computing basic earnings per common share	539,806			554,897		539,411		558,502
Incremental common shares attributable to dilutive securities:
Shares issuable under convertible securities	10			10		10		10
Shares issuable under incentive compensation plans	1,101			249		1,072		781
Number of shares as adjusted for purposes of computing diluted earnings per common share	540,917			555,156		540,493		559,293
Basic earnings per common share	$	0.28		0.37		1.08		0.97
Diluted earnings per common share	$	0.28		0.37		1.08		0.97

Our calculation of diluted earnings per common share excludes shares of common stock that are issuable upon exercise of stock options when the exercise price is greater than the average market price of our common stock. We also exclude unvested restricted stock awards that are antidilutive as a result of unrecognized compensation cost. Such shares averaged 2.7 million and 3.1 million for the three months ended September 30, 2016 and 2015, respectively, and averaged 3.3 million and 2.5 million for the nine months ended September 30, 2016 and 2015, respectively.