Earnings Per Common Share (EPS)

3 Months Ended

Mar. 31, 2016

15. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS for the three months ended March 31 were as follows:

(Millions, except per share amounts)			2016			2015
Numerator:
	Basic and diluted:
		Net income	$	1,426	$	1,525
		Preferred dividends		(21)		―
		Net income available to common shareholders	$	1,405	$	1,525
		Earnings allocated to participating share awards^(a)		(11)		(11)
		Net income attributable to common shareholders	$	1,394	$	1,514
Denominator:^(a)
	Basic: Weighted-average common stock			961		1,019
	Add: Weighted-average stock options ^(b)			2		4
	Diluted			963		1,023

Basic EPS			$	1.45	$	1.49
Diluted EPS			$	1.45	$	1.48

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 from the computation of EPS 1.5 million and 0.5 million of options for the three months ended March 31, 2016 and 2015, respectively, because inclusion of the options would have been anti-dilutive.

For the three months ended March 31, 2016 and 2015, the Company met specified performance measures related to the $750 million of Subordinated Debentures 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.