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Computation of Basic/Diluted Earnings Per Common Share
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Computation of Basic/Diluted Earnings Per Common Share
Computation of Basic/Diluted Earnings Per Common Share
The following table sets forth the computation of basic and diluted earnings per common share (amounts in millions, except per share data):
 
For the Years Ended December 31,
 
2016
 
2015
 
2014
Numerator:
 

 
 

 
 

Consolidated net income
$
966

 
$
892

 
$
835

Less: Distributed earnings to unvested share-based awards that participate in earnings
(2
)
 
(4
)
 
(4
)
Less: Undistributed earnings allocated to unvested share-based awards that participate in earnings
(2
)
 
(7
)
 
(14
)
Numerator for basic and diluted earnings per common share—income available to common shareholders
$
962

 
$
881

 
$
817

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per common share—weighted-average common shares outstanding
740

 
728

 
716

Effect of potential dilutive common shares under the treasury stock method:
 
 
 
 
 
Employee stock options and awards
14

 
11

 
10

Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method
754

 
739

 
726

Basic earnings per common share
$
1.30

 
$
1.21

 
$
1.14

Diluted earnings per common share
$
1.28

 
$
1.19

 
$
1.13



Certain of our unvested restricted stock rights (including certain restricted stock units and performance shares) met the definition of participating securities as they participate in earnings based on their rights to dividends or dividend equivalents.  Therefore, we are required to use the two-class method in our computation of basic and diluted earnings per common share. For the years ended December 31, 2016, 2015, and 2014, on a weighted-average basis, we had outstanding unvested restricted stock rights with respect to 3 million, 8 million, and 15 million shares of common stock, respectively, that are participating in earnings.
Certain of our employee-related restricted stock rights and stock options are contingently issuable upon the satisfaction of pre-defined performance measures. These shares are included in the weighted-average dilutive common shares only if the performance measures are met as of the end of the reporting period. Approximately 8 million, 3 million, and 4 million shares are not included in the computation of diluted earnings per share for the years ended December 31, 2016, 2015, and 2016, respectively, as their respective performance measures have not been met.
Potential common shares are not included in the denominator of the diluted earnings per common share calculation when the inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. Therefore, options to acquire 5 million, 1 million, and 2 million shares of common stock were not included in the calculation of diluted earnings per common share for the years ended December 31, 2016, 2015, and 2014, respectively, as the effect of their inclusion would be anti-dilutive.