The following table presents the calculation of basic and diluted EPS for the years ended December 31, 2012, 2011 and 2010.



Year ended December 31, (in millions, except per share amounts)	2012		2011		2010
Basic earnings per share
Net income	$	21,284	$	18,976	$	17,370
Less: Preferred stock dividends	653		629		642
Net income applicable to common equity	20,631		18,347		16,728
Less: Dividends and undistributed earnings allocated to participating securities	754		779		964
Net income applicable to common stockholders	$	19,877	$	17,568	$	15,764
Total weighted-average basic shares outstanding	3,809.4		3,900.4		3,956.3
Net income per share	$	5.22	$	4.50	$	3.98

Diluted earnings per share
Net income applicable to common stockholders	$	19,877	$	17,568	$	15,764
Total weighted-average basic shares outstanding	3,809.4		3,900.4		3,956.3
Add: Employee stock options, SARs and warrants^(a)	12.8		19.9		20.6
Total weighted-average diluted shares outstanding^(b)	3,822.2		3,920.3		3,976.9
Net income per share	$	5.20	$	4.48	$	3.96

(a)

Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock. The aggregate number of shares issuable upon the exercise of such options and warrants was 148 million, 133 million and 233 million for the full years ended December 31, 2012, 2011 and 2010 respectively.


(b)	Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.