NET EARNINGS PER COMMON SHARE

Basic and diluted net earnings per common share based on the weighted average outstanding shares are summarized as follows:



(In millions, except per share amounts)	2017		2016		2015
Basic:
Net income	$	592	$	469	$	309
Less common and preferred dividends	131		115		108
Undistributed earnings	461		354		201
Less undistributed earnings applicable to nonvested shares	4		4		2
Undistributed earnings applicable to common shares	457		350		199
Distributed earnings applicable to common shares	88		57		45
Total earnings applicable to common shares	$	545	$	407	$	244
Weighted average common shares outstanding (in thousands)	200,776		203,855		203,265
Net earnings per common share	$	2.71	$	2.00	$	1.20
Diluted:
Total earnings applicable to common shares	$	545	$	407	$	244
Weighted average common shares outstanding (in thousands)	200,776		203,855		203,265
Additional weighted average dilutive shares (in thousands)	8,877		414		433
Weighted average diluted common shares outstanding (in thousands)	209,653		204,269		203,698
Net earnings per common share	$	2.60	$	1.99	$	1.20

For 2017 and 2016, preferred dividends were increased by $2 million and $10 million, respectively, from costs related to the full redemption of the Company’s Series F preferred stock in 2017 and partial redemption of the Company’s Series I, J, and G preferred stock in 2016. See further discussion in Note 13.