Earnings Per Share Basic earnings per share (EPS) is calculated using the weighted average number of common shares outstanding during the period and includes the effect of any participating securities as appropriate. Participating securities consist of unvested restricted stock issued to our employees and non-employee directors that provide dividend rights. Diluted EPS is calculated assuming the issuance of common shares for all potentially dilutive securities, provided the effect is not antidilutive. For the Current Quarter, the Prior Quarter, the Current Period and the Prior Period, our contingent convertible senior notes did not have a dilutive effect and therefore were excluded from the calculation of diluted EPS. See Note 4 for further discussion of our contingent convertible senior notes. For the Current Quarter, the Current Period and the Prior Period, the following securities and associated adjustments to net income, representing dividends on such shares, were excluded from the calculation of diluted EPS as the effect was antidilutive. The impact of our stock options was immaterial in the calculation of diluted EPS for these periods. | | | | | | | | | | | Net Income Adjustments | | Shares | | | ($ in millions) | | (in millions) | Three Months Ended June 30, 2014: | | | | | Common stock equivalent of our preferred stock outstanding: | | | | | 5.75% cumulative convertible preferred stock | | $ | 22 |
| | 59 |
| 5.75% cumulative convertible preferred stock (series A) | | $ | 16 |
| | 42 |
| 5.00% cumulative convertible preferred stock (series 2005B) | | $ | 3 |
| | 6 |
| 4.50% cumulative convertible preferred stock | | $ | 3 |
| | 6 |
| Unvested restricted stock | | $ | 3 |
| | 3 |
| | | | | | Six Months Ended June 30, 2014: | | | | | Common stock equivalent of our preferred stock outstanding: | | | | | 5.00% cumulative convertible preferred stock (series 2005B) | | $ | 5 |
| | 6 |
| 4.50% cumulative convertible preferred stock | | $ | 6 |
| | 6 |
| Unvested restricted stock | | $ | 11 |
| | 3 |
| | | | | | Six Months Ended June 30, 2013: | | | | | Common stock equivalent of our preferred stock outstanding: | | | | | 5.75% cumulative convertible preferred stock | | $ | 43 |
| | 56 |
| 5.75% cumulative convertible preferred stock (series A) | | $ | 32 |
| | 39 |
| 5.00% cumulative convertible preferred stock (series 2005B) | | $ | 5 |
| | 5 |
| 4.50% cumulative convertible preferred stock | | $ | 6 |
| | 6 |
| Unvested restricted stock | | $ | 11 |
| | 5 |
|
For the Prior Quarter and the Current Period, the following securities and adjustments to net income, representing dividends on such shares, were included in the calculation of diluted EPS as the effect was dilutive. A reconciliation of basic EPS and diluted EPS for these periods is as follows: | | | | | | | | | | | | | | | Net Income
Available to
Common
Stockholders
(Numerator) | | Weighted
Average
Shares
(Denominator) | | Per
Share
Amount | | | (in millions, except per share data) | Three Months Ended June 30, 2013: | | | | | | | Basic EPS | | $ | 457 |
| | 653 |
| | $ | 0.70 |
| Effect of Dilutive Securities: | | | | | | | Assumed conversion as of the beginning of the period
of preferred shares outstanding during the period: | | | | | | | Common shares assumed issued for 5.75%
cumulative convertible preferred stock | | 21 |
| | 56 |
| | | Common shares assumed issued for 5.75%
cumulative convertible preferred stock (series A) | | 16 |
| | 40 |
| | | Common shares assumed issued for 4.50%
cumulative convertible preferred stock | | 3 |
| | 6 |
| | | Common shares assumed issued for 5.00%
cumulative convertible preferred stock (series 2005B) | | 3 |
| | 5 |
| | | Diluted EPS | | $ | 500 |
| | 760 |
| | $ | 0.66 |
| | | | | | | | Six Months Ended June 30, 2014: | | | | | | | Basic EPS | | $ | 518 |
| | 658 |
| | $ | 0.79 |
| Effect of Dilutive Securities: | | | | | | | Assumed conversion as of the beginning of the period
of preferred shares outstanding during the period: | | | | | | | Common shares assumed issued for 5.75%
cumulative convertible preferred stock | | 43 |
| | 59 |
| | | Common shares assumed issued for 5.75%
cumulative convertible preferred stock (series A) | | 32 |
| | 42 |
| | | Outstanding stock options | | — |
| | 1 |
| | | Diluted EPS | | $ | 593 |
| | 760 |
| | $ | 0.78 |
|
|