Earnings Per Share

9 Months Ended

Sep. 30, 2015

Note 4 – Earnings Per Share (“EPS”)

Basic and diluted earnings per share were computed as follows:

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended September 30,
2015
Shareholders' net income	$	547			$	547
Shares:
Weighted average		256,070				256,070
Common stock equivalents				4,449		4,449
Total shares		256,070		4,449		260,519
EPS	$	2.14	$	(0.04)	$	2.10
2014
Shareholders' net income	$	534			$	534
Shares:
Weighted average		261,402				261,402
Common stock equivalents				4,489		4,489
Total shares		261,402		4,489		265,891
EPS	$	2.04	$	(0.03)	$	2.01

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Nine Months Ended September 30,
2015
Shareholders' net income	$	1,668			$	1,668
Shares:
Weighted average		256,166				256,166
Common stock equivalents				4,451		4,451
Total shares		256,166		4,451		260,617
EPS	$	6.51	$	(0.11)	$	6.40
2014
Shareholders' net income	$	1,635			$	1,635
Shares:
Weighted average		265,554				265,554
Common stock equivalents				4,507		4,507
Total shares		265,554		4,507		270,061
EPS	$	6.16	$	(0.11)	$	6.05

The following outstanding employee stock options were not included in the computation of diluted earnings per share for the three months and nine months ended September 30, 2015 and 2014 because their effect was anti-dilutive.

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(In millions)	2015	2014	2015	2014
Anti-dilutive options	-	-	0.5	1.3

The Company held 38,553,358 shares of common stock in Treasury as of September 30, 2015, and 103,340,125 shares as of September 30, 2014. In the fourth quarter of 2014, the Company retired 70 million shares of treasury stock.