Earnings Per Common Share

6 Months Ended

Jun. 30, 2012

Earnings Per Common Share

10. Earnings Per Common Share

Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. Dilutive potential common shares include the effect of outstanding stock options and unvested restricted stock awards and units. EPS under the basic and diluted computations is as follows:

	Three Months Ended June 30,							Six Months Ended     June 30,
	2012				2011			2012				2011
Net income		$	275			$	238		$	470			$	481
Preferred stock dividends			(14	)			—			(14	)			—
Net income available to common stockholders (1)		$	261			$	238		$	456			$	481
Weighted-average common shares outstanding — basic			1,273				1,207			1,272				1,205
Common stock equivalent shares related to stock incentive plans			1				3			1				3
Weighted-average common shares outstanding — diluted (2)			1,274				1,210			1,273				1,208
Basic EPS		$	.20			$	.20		$	.36			$	.40
Diluted EPS		$	.20			$	.20		$	.36			$	.40

⁽¹⁾  Net income available to participating securities (unvested restricted shares) was not material for the second quarters or first halves of 2012 or 2011.

⁽²⁾  Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 59 million and 42 million shares for the second quarters of 2012 and 2011, respectively, and 61 million and 43 million shares for the first halves of 2012 and 2011, respectively.