Earnings Per Share

12 Months Ended

Dec. 31, 2015

Earnings per share

Earnings per share (“EPS”) is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock; these unvested awards meet the definition of participating securities. Options issued under employee benefit plans that have an antidilutive effect are excluded from the computation of diluted EPS.

The following table presents the calculation of basic and diluted EPS for the years ended December 31, 2015, 2014 and 2013.



Year ended December 31, (in millions, except per share amounts)	2015		2014		2013
Basic earnings per share
Net income	$	24,442	$	21,745	$	17,886
Less: Preferred stock dividends	1,515		1,125		805
Net income applicable to common equity	22,927		20,620		17,081
Less: Dividends and undistributed earnings allocated to participating securities	521		543		524
Net income applicable to common stockholders	$	22,406	$	20,077	$	16,557

Total weighted-average basic shares outstanding	3,700.4		3,763.5		3,782.4
Net income per share	$	6.05	$	5.33	$	4.38

Diluted earnings per share
Net income applicable to common stockholders	$	22,406	$	20,077	$	16,557

Total weighted-average basic shares outstanding	3,700.4		3,763.5		3,782.4
Add: Employee stock options, SARs and warrants^(a)	32.4		34.0		32.5
Total weighted-average diluted shares outstanding^(b)	3,732.8		3,797.5		3,814.9
Net income per share	$	6.00	$	5.29	$	4.34


(a)	Excluded from the computation of diluted EPS (due to the antidilutive effect) were certain options issued under employee benefit plans. The aggregate number of shares issuable upon the exercise of such options was not material for the year ended December 31, 2015, and 1 million and 6 million for the years ended December 31, 2014 and 2013, 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.