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Earnings Per Share
 9 Months Ended
Sep. 30, 2016
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share

The following table sets forth the calculation of basic and diluted earnings per share:

 
Basic
 
Diluted
 
Third Quarter
 
2016
 
2015
 
2016
 
2015
 
($ in millions, except per share amounts,
shares in millions)
 
 
 
 
 
 
 
 
Net income
$
460

 
$
452

 
$
460

 
$
452

Dividend equivalent payments
(3
)
 
(2
)
 
(2
)
 
(1
)
 
 
 
 
 
 
 
 
Income available to common stockholders
$
457

 
$
450

 
$
458

 
$
451

 
 
 
 
 
 
 
 
Weighted-average shares outstanding
292.7

 
300.1

 
292.7

 
300.1

Dilutive effect of outstanding options
 

 
 

 
 

 
 

and share-settled awards
 

 
 

 
2.0

 
2.4

 
 
 
 
 
 
 
 
Adjusted weighted-average shares outstanding
 

 
 

 
294.7

 
302.5

 
 
 
 
 
 
 
 
Earnings per share
$
1.56

 
$
1.50

 
$
1.55

 
$
1.49


 
Basic
 
Diluted
 
First Nine Months
 
2016
 
2015
 
2016
 
2015
 
($ in millions, except per share amounts,
shares in millions)
 
 
 
 
 
 
 
 
Net income
$
1,252

 
$
1,195

 
$
1,252

 
$
1,195

Dividend equivalent payments
(5
)
 
(5
)
 
(4
)
 
(3
)
 
 
 
 
 
 
 
 
Income available to common stockholders
$
1,247

 
$
1,190

 
$
1,248

 
$
1,192

 
 
 
 
 
 
 
 
Weighted-average shares outstanding
294.9

 
303.2

 
294.9

 
303.2

Dilutive effect of outstanding options
 

 
 

 
 

 
 

and share-settled awards
 

 
 

 
1.8

 
2.6

 
 
 
 
 
 
 
 
Adjusted weighted-average shares outstanding
 

 
 

 
296.7

 
305.8

 
 
 
 
 
 
 
 
Earnings per share
$
4.23

 
$
3.93

 
$
4.21

 
$
3.90


During the third quarters and first nine months of 2016 and 2015, dividend equivalent payments were made to holders of LTIP stock options and RSUs. For purposes of computing basic earnings per share, dividend equivalent payments made to holders of these stock options and RSUs were deducted from net income to determine income available to common stockholders. For purposes of computing diluted earnings per share, we evaluate on a grant-by-grant basis those stock options and RSUs receiving dividend equivalent payments under the two-class and treasury stock methods to determine which method is the more dilutive for each grant. For those grants for which the two-class method was more dilutive, net income was reduced by dividend equivalent payments to determine income available to common stockholders. The dilution calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows:

Period
 
2016
 
2015
 
(in millions)
1st Quarter
 
1.5

 
—

2nd Quarter
 
1.5

 
0.7

3rd Quarter
 
1.5

 
1.5