The following table presents the calculation of basic and diluted EPS for the three and six months ended June 30, 2013 and 2012.



(in millions, except per share amounts)	Three months ended June 30,				Six months ended June 30,
(in millions, except per share amounts)	2013		2012		2013		2012
Basic earnings per share
Net income	$	6,496	$	4,960	$	13,025	$	9,884
Less: Preferred stock dividends	204		158		386		315
Net income applicable to common equity	6,292		4,802		12,639		9,569
Less: Dividends and undistributed earnings allocated to participating securities	191		168		407		359
Net income applicable to common stockholders	$	6,101	$	4,634	$	12,232	$	9,210
Total weighted-average basic shares outstanding	3,782.4		3,808.9		3,800.3		3,813.9
Net income per share	$	1.61	$	1.22	$	3.22	$	2.41

Diluted earnings per share
Net income applicable to common stockholders	$	6,101	$	4,634	$	12,232	$	9,210
Total weighted-average basic shares outstanding	3,782.4		3,808.9		3,800.3		3,813.9
Add: Employee stock options, SARs and warrants^(a)	31.9		11.6		30.3		13.1
Total weighted-average diluted shares outstanding^(b)	3,814.3		3,820.5		3,830.6		3,827.0
Net income per share	$	1.60	$	1.21	$	3.19	$	2.41

(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 8 million and 159 million for the three months ended June 30, 2013 and 2012, respectively, and 11 million and 164 million for the six months ended June 30, 2013 and 2012, 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.