Earnings Per Common Share (EPS)

6 Months Ended

Jun. 30, 2017

15. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS were as follows:

			Three Months Ended				Six Months Ended
			June 30,				June 30,
(Millions, except per share amounts)			2017			2016	2017			2016
Numerator:
	Basic and diluted:
		Net income	$	1,340	$	2,015	$	2,577	$	3,441
		Preferred dividends		(19)		(19)		(40)		(40)
		Net income available to common shareholders		1,321		1,996		2,537		3,401
		Earnings allocated to participating share awards^(a)		(11)		(17)		(21)		(28)
		Net income attributable to common shareholders	$	1,310	$	1,979	$	2,516	$	3,373
Denominator:^(a)
	Basic: Weighted-average common stock			890		938		895		949
	Add: Weighted-average stock options ^(b)			3		3		3		3
	Diluted			893		941		898		952
Basic EPS			$	1.47	$	2.11	$	2.81	$	3.55
Diluted EPS			$	1.47	$	2.10	$	2.80	$	3.54

The Company’s unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.
The dilutive effect of unexercised stock options excludes from the computation of EPS 1.2 million and 2.5 million of options for the three months ended June 30, 2017 and 2016, respectively, and 1.2 million and 1.7 million of options for the six months ended June 30, 2017 and 2016, respectively, because inclusion of the options would have been anti-dilutive.