Earnings Per Share

6 Months Ended

Jun. 30, 2015

Note 3 – Earnings Per Share (“EPS”)

Basic and diluted earnings per share were computed as follows:

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended June 30,
2015
Shareholders' net income	$	588			$	588
Shares:
Weighted average		255,730				255,730
Common stock equivalents				4,367		4,367
Total shares		255,730		4,367		260,097
EPS	$	2.30	$	(0.04)	$	2.26
2014
Shareholders' net income	$	573			$	573
Shares:
Weighted average		265,377				265,377
Common stock equivalents				4,544		4,544
Total shares		265,377		4,544		269,921
EPS	$	2.16	$	(0.04)	$	2.12

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Six Months Ended June 30,
2015
Shareholders' net income	$	1,121			$	1,121
Shares:
Weighted average		256,215				256,215
Common stock equivalents				4,453		4,453
Total shares		256,215		4,453		260,668
EPS	$	4.38	$	(0.08)	$	4.30

2014
Shareholders' net income	$	1,101			$	1,101
Shares:
Weighted average		267,665				267,665
Common stock equivalents				4,516		4,516
Total shares		267,665		4,516		272,181
EPS	$	4.11	$	(0.06)	$	4.05

The following outstanding employee stock options were not included in the computation of diluted earnings per share for the three months and six months ended June 30, 2015 and 2014 because their effect was anti-dilutive.

	Three Months Ended		Six Months Ended
	June 30,		June 30,
(In millions)	2015	2014	2015	2014
Anti-dilutive options	-	2.0	0.7	2.0

The Company held 38,694,585 shares of common stock in Treasury as of June 30, 2015, and 101,424,330 shares as of June 30, 2014. In the fourth quarter of 2014, the Company retired 70 million shares of treasury stock.