Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

Note 7 Earnings Per Share

The components of earnings per share were:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars and Shares in Millions, Except Per Share Data)	2012			2011			2012			2011
Net income attributable to U.S. Bancorp	$	1,474		$	1,273		$	4,227		$	3,522
Preferred dividends		(64	)		(30	)		(174	)		(99	)
Earnings allocated to participating stock awards		(6	)		(6	)		(19	)		(16	)
Net income applicable to U.S. Bancorp common shareholders	$	1,404		$	1,237		$	4,034		$	3,407
Average common shares outstanding		1,886			1,915			1,892			1,918
Net effect of the exercise and assumed purchase of stock awards and conversion of outstanding convertible notes		11			7			9			8
Average diluted common shares outstanding		1,897			1,922			1,901			1,926
Earnings per common share	$	.74		$	.65		$	2.13		$	1.78
Diluted earnings per common share	$	.74		$	.64		$	2.12		$	1.77

Options and warrants outstanding at September 30, 2012 to purchase 10 million and 22 million common shares for the three months and nine months ended September 30, 2012, respectively, and outstanding at September 30, 2011 to purchase 60 million and 54 million common shares for the three months and nine months ended September 30, 2011, respectively, were not included in the computation of diluted earnings per share because they were antidilutive. Convertible senior debentures that could potentially be converted into shares of the Company’s common stock pursuant to specified formulas, were not included in the computation of dilutive earnings per share because they were antidilutive.