Earnings Per Common Share (EPS)

9 Months Ended

Sep. 30, 2011

13. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS were as follows:

				Three Months Ended				Nine Months Ended
				September 30,				September 30,
(Millions, except per share amounts)				2011			2010	2011			2010
Numerator:
	Basic and diluted:
		Income from continuing operations		$	1,235	$	1,093	$	3,707	$	2,995
		Earnings allocated to participating share awards
			and other items^(a)		(15)		(13)		(44)		(38)
		Income from discontinued operations, net of tax			―		―		36		―
		Net income attributable to common shareholders		$	1,220	$	1,080	$	3,699	$	2,957
Denominator:
	Basic: Weighted-average common stock				1,175		1,193		1,184		1,189
	Add: Weighted-average stock options ^(b)				6		6		7		6
	Diluted				1,181		1,199		1,191		1,195

Basic EPS:
	Income from continuing operations attributable to common
		shareholders		$	1.04	$	0.91	$	3.09	$	2.49
	Income from discontinued operations				―		―		0.03		―
	Net income attributable to common shareholders			$	1.04	$	0.91	$	3.12	$	2.49
Diluted EPS:
	Income from continuing operations attributable to common
		shareholders		$	1.03	$	0.90	$	3.08	$	2.47
	Income from discontinued operations				―		―		0.03		―
	Net income attributable to common shareholders			$	1.03	$	0.90	$	3.11	$	2.47

(a) The Company's unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method (i) exclude any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities from the numerator and (ii) exclude the participating securities from the denominator.

(b) For both the three and nine months ended September 30, 2011, the dilutive effect of unexercised stock options excludes 19 million options. For the three and nine months ended September 30, 2010, the dilutive effect of unexercised stock options excludes 36 million and 37 million options, respectively. Such amounts for all periods were excluded from the computation of EPS because inclusion of the options would have been anti-dilutive.

Subordinated debentures of $750 million issued by the Company in 2006 would affect the EPS computation only in the unlikely event the Company fails to achieve specified performance measures related to the Company's tangible common equity and consolidated net income. In that circumstance the Company would reflect the additional common shares in the EPS computation.