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

Table 11.1: Computation of Basic and Diluted Earnings per Common Share



	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars and shares in millions, except per share data)	2016			2015			2016			2015
Income from continuing operations, net of tax	$	943		$	852		$	1,961		$	1,986
Income (loss) from discontinued operations, net of tax	(1		)	11			(6		)	30
Net income	942			863			1,955			2,016
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	(6		)	(4		)	(12		)	(10		)
Preferred stock dividends	(65		)	(29		)	(102		)	(61		)
Net income available to common stockholders	$	871		$	830		$	1,841		$	1,945

Total weighted-average basic shares outstanding	511.7			545.6			517.6			548.0
Effect of dilutive securities:
Stock options	2.0			2.8			1.9			2.7
Other contingently issuable shares	1.2			1.1			1.2			1.3
Warrants⁽²⁾	1.6			2.5			1.6			2.7
Total effect of dilutive securities	4.8			6.4			4.7			6.7
Total weighted-average diluted shares outstanding	516.5			552.0			522.3			554.7

Basic earnings per common share:
Net income from continuing operations	$	1.70		$	1.50		$	3.57		$	3.49
Income (loss) from discontinued operations	0.00			0.02			(0.01		)	0.06
Net income per basic common share	$	1.70		$	1.52		$	3.56		$	3.55

Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	1.69		$	1.48		$	3.53		$	3.45
Income (loss) from discontinued operations	0.00			0.02			(0.01		)	0.06
Net income per diluted common share	$	1.69		$	1.50		$	3.52		$	3.51

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⁽¹⁾	Includes undistributed earnings allocated to participating securities using the two-class method under the accounting guidance for computing earnings per share.


⁽²⁾	Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program (“TARP”). As of June 30, 2016, there were 4.1 million warrants to purchase common stock outstanding.

⁽³⁾

Excluded from the computation of diluted earnings per share were 2.1 million shares related to options with exercise prices ranging from $63.73 to $82.62, and 2.5 million shares related to options with exercise prices ranging from $63.73 to $88.81 for the three and six months ended June 30, 2016, respectively, and 1.7 million shares related to options with exercise prices ranging from $74.96 to $88.81, and 1.9 million shares related to options with exercise prices ranging from $70.96 to $88.81 for the three and six months ended June 30, 2015, respectively, because their inclusion would be anti-dilutive.