Earnings Per Share

9 Months Ended

Sep. 30, 2016

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,
2016
Shareholders' net income	$	456			$	456
Shares:
Weighted average		255,519				255,519
Common stock equivalents				4,235		4,235
Total shares		255,519		4,235		259,754
EPS	$	1.78	$	(0.02)	$	1.76
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

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Nine Months Ended September 30,
2016
Shareholders' net income	$	1,485			$	1,485
Shares:
Weighted average		255,242				255,242
Common stock equivalents				4,326		4,326
Total shares		255,242		4,326		259,568
EPS	$	5.82	$	(0.10)	$	5.72
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

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, 2016 and 2015 because their effect was anti-dilutive.

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(In millions)	2016	2015	2016	2015
Anti-dilutive options	2.6	-	2.2	0.5

The Company held 39,425,208 shares of common stock in Treasury as of September 30, 2016, and 38,553,358 shares as of September 30, 2015.