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Earnings Per Common Share (EPS)
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Common Share (EPS)

13. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS were as follows:

Three Months EndedNine Months Ended
September 30,September 30,
(Millions, except per share amounts)2014201320142013
Numerator:
Basic and diluted:
Net income$1,477$1,366$4,438$4,051
Earnings allocated to participating share awards(a)(11)(12)(35)(36)
Net income attributable to common shareholders$1,466$1,354$4,403$4,015
Denominator: (a)
Basic: Weighted-average common stock1,0411,0741,0511,087
Add: Weighted-average stock options (b)6767
Diluted1,0471,0811,0571,094
Basic EPS$1.41$1.26$4.19$3.69
Diluted EPS$1.40$1.25$4.17$3.67

  • 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 0.2 million and 0.1 million of options from the computation of EPS for the three months ended September 30, 2014 and 2013, respectively, and 0.2 million options for both the nine months ended September 30, 2014 and 2013 because inclusion of the options would have been anti-dilutive.

For the three and nine months ended September 30, 2014 and 2013, the Company met specified performance measures related to the Subordinated Debentures of $750 million issued in 2006, and maturing in 2036. If the performance measures were not achieved in any given quarter, the Company would be required to issue common shares and apply the proceeds to make interest payments.