Earnings Per Share

12 Months Ended

Dec. 31, 2016

Note 4 – Earnings Per Share

Accounting policy. The Company computes basic earnings per share using the weighted-average number of unrestricted common and deferred shares outstanding. Diluted earnings per share also includes the dilutive effect of outstanding employee stock options and restricted stock using the treasury stock method and the effect of strategic performance shares.

Basic and diluted earnings per share were computed as follows:

		2016						2015						2014
(Shares in thousands, dollars in millions, except per share amounts)			Effect of						Effect of						Effect of
		Basic		Dilution		Diluted		Basic		Dilution		Diluted		Basic		Dilution		Diluted
Shareholders' net income	$	1,867	$	-	$	1,867	$	2,094	$	-	$	2,094	$	2,102	$	-	$	2,102
Shares:
Weighted average		255,360		-		255,360		256,149		-		256,149		263,889		-		263,889
Common stock equivalents				4,287		4,287				4,443		4,443				4,714		4,714
Total shares		255,360		4,287		259,647		256,149		4,443		260,592		263,889		4,714		268,603
EPS	$	7.31	$	(0.12)	$	7.19	$	8.17	$	(0.13)	$	8.04	$	7.97	$	(0.14)	$	7.83

The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive.

(In millions)	2016	2015	2014
Anti-dilutive options	2.3	0.4	1.0