Earnings Per Share

6 Months Ended

Jun. 30, 2016

Note 4 – 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,
2016
Shareholders' net income	$	510			$	510
Shares:
Weighted average		255,381				255,381
Common stock equivalents				4,119		4,119
Total shares		255,381		4,119		259,500
EPS	$	2.00	$	(0.03)	$	1.97
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

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Six Months Ended June 30,
2016
Shareholders' net income	$	1,029			$	1,029
Shares:
Weighted average		255,101				255,101
Common stock equivalents				4,372		4,372
Total shares		255,101		4,372		259,473
EPS	$	4.03	$	(0.06)	$	3.97
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

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, 2016 and 2015 because their effect was anti-dilutive.

	Three Months Ended		Six Months Ended
	June 30,		June 30,
(In millions)	2016	2015	2016	2015
Anti-dilutive options	2.6	-	2.0	0.7

The Company held 39,587,801 shares of common stock in Treasury as of June 30, 2016, and 38,694,585 shares as of June 30, 2015.