Earnings Per Share

For the Current Quarter, the Prior Quarter, the Current Period and the Prior Period, the contingent convertible senior notes did not have a dilutive effect and therefore were not included in the calculation of diluted earnings per share (EPS). See Note 3 for discussion of the contingent convertible senior notes. Participating securities, for purposes of our EPS computations, consist of unvested restricted stock issued to our employees and non-employee directors that provide dividend rights.

For the Current Period, the following shares of unvested restricted stock awards and cumulative convertible preferred stock and associated adjustments to net income, consisting of dividends on such shares, were not included in the calculation of diluted EPS, as the effect was antidilutive:



	Net Income Adjustments		Shares
	($ in millions)		(in millions)
Six Months Ended June 30, 2013:
Common stock equivalent of our preferred stock outstanding:
5.75% cumulative convertible preferred stock	$	43	56
5.75% cumulative convertible preferred stock (series A)	$	32	39
5.00% cumulative convertible preferred stock (series 2005B)	$	5	5
4.50% cumulative convertible preferred stock	$	6	6
Unvested restricted stock	$	11	5

Basic weighted average shares outstanding, which is used in computing basic EPS, and diluted weighted average shares outstanding, which is used in computing diluted EPS, were 653 million shares in the Current Period. The basic and diluted earnings per common share were $0.72 in the Current Period.

For the Current Quarter, Prior Quarter and Prior Period, all outstanding equity securities that were convertible into common stock were included in the calculation of diluted EPS. A reconciliation of basic EPS and diluted EPS for the Current Quarter, Prior Quarter and the Prior Period is as follows:



	Net Income Available to Common Stockholders (Numerator)		Weighted Average Shares (Denominator)	Per Share Amount
	(in millions, except per share data)
Three Months Ended June 30, 2013:
Basic EPS	$	457	653	$	0.70
Effect of Dilutive Securities:
Assumed conversion as of the beginning of the period of preferred shares outstanding during the period:
Common shares assumed issued for 5.75% cumulative convertible preferred stock	21		56
Common shares assumed issued for 5.75% cumulative convertible preferred stock (series A)	16		40
Common shares assumed issued for 5.00% cumulative convertible preferred stock (series 2005B)	3		5
Common shares assumed issued for 4.50% cumulative convertible preferred stock	3		6
Diluted EPS	$	500	760	$	0.66



	Net Income Available to Common Stockholders (Numerator)		Weighted Average Shares (Denominator)	Per Share Amount
	(in millions, except per share data)
Three Months Ended June 30, 2012:
Basic EPS	$	929	642	$	1.45
Effect of Dilutive Securities:
Assumed conversion as of the beginning of the period of preferred shares outstanding during the period:
Common shares assumed issued for 5.75% cumulative convertible preferred stock	21		56
Common shares assumed issued for 5.75% cumulative convertible preferred stock (series A)	16		39
Common shares assumed issued for 5.00% cumulative convertible preferred stock (series 2005B)	3		5
Common shares assumed issued for 4.50% cumulative convertible preferred stock	3		6
Unvested restricted stock	—		3
Diluted EPS	$	972	751	$	1.29

Six Months Ended June 30, 2012:
Basic EPS	$	858	642	$	1.34
Effect of Dilutive Securities:
Assumed conversion as of the beginning of the period of preferred shares outstanding during the period:
Common shares assumed issued for 5.75% cumulative convertible preferred stock	43		56
Common shares assumed issued for 5.75% cumulative convertible preferred stock (series A)	32		39
Common shares assumed issued for 5.00% cumulative convertible preferred stock (series 2005B)	5		5
Common shares assumed issued for 4.50% cumulative convertible preferred stock	6		6
Unvested restricted stock	—		4
Diluted EPS	$	944	752	$	1.25