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Earnings Per Common Share (EPS)
 6 Months Ended
Jun. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Common Share (EPS)

12. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS were as follows:

      Three Months Ended Six Months Ended
      June 30, June 30,
(Millions, except per share amounts) 2013  2012 2013  2012
Numerator:            
 Basic and diluted:            
  Net income $1,405 $1,339 $2,685 $2,595
  Earnings allocated to participating share awards(a)  (13)  (14)  (24)  (28)
  Net income attributable to common shareholders $1,392 $1,325 $2,661 $2,567
Denominator:(a)            
 Basic: Weighted-average common stock  1,090  1,145  1,094  1,151
 Add: Weighted-average stock options (b)  7  7  7  7
 Diluted  1,097  1,152  1,101  1,158
                 
Basic EPS: $1.28 $1.16 $2.43 $2.23
Diluted EPS: $1.27 $1.15 $2.42 $2.22

  • 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 exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.
  • For both the three and six months ended June 30, 2013, the dilutive effect of unexercised stock options excludes 0.2 million of options from the computation of EPS because inclusion of the options would have been anti-dilutive. For both the three and six months ended June 30, 2012, the dilutive effect of unexercised stock options excludes 8 million options from the computation of EPS because inclusion of the options would have been anti-dilutive.

 

For the three and six months ended June 30, 2013 and 2012, the Company met specified performance measures related to the Subordinated Debentures of $750 million issued in 2006, which resulted in no impact to EPS. If the performance measures were not achieved in any given quarter, the Company would be required to issue common shares and apply the proceeds to make interest payments.