The following table sets forth the computation of basic and diluted earnings per common share:

Table 11.1: Computation of Basic and Diluted Earnings per Common Share



	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars and shares in millions, except per share data)	2014			2013			2014			2013
Basic earnings
Income from continuing operations, net of tax	$	1,125		$	1,118		$	3,453		$	3,479
Loss from discontinued operations, net of tax	(44		)	(13		)	(24		)	(210		)
Net income	1,081			1,105			3,429			3,269
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	(5		)	(5		)	(14		)	(14		)
Preferred stock dividends	(20		)	(13		)	(46		)	(39		)
Net income available to common stockholders	$	1,056		$	1,087		$	3,369		$	3,216

Net income from continuing operations per share	$	1.97		$	1.89		$	5.99		$	5.89
Loss from discontinued operations per share	(0.08		)	(0.02		)	(0.04		)	(0.36		)
Net income per share	$	1.89		$	1.87		$	5.95		$	5.53
Total weighted-average basic shares outstanding	559.9			582.3			566.1			581.4



Diluted earnings⁽²⁾
Net income available to common stockholders	$	1,056		$	1,087		$	3,369		$	3,216
Net income from continuing operations per share	$	1.94		$	1.86		$	5.90		$	5.82
Loss from discontinued operations per share	(0.08		)	(0.02		)	(0.04		)	(0.36		)
Net income per share	$	1.86		$	1.84		$	5.86		$	5.46

Total weighted-average basic shares outstanding	559.9			582.3			566.1			581.4
Effect of dilutive securities:
Stock options	2.8			2.4			2.7			2.1
Other contingently issuable shares	1.6			1.7			1.5			1.6
Warrants ⁽³⁾	3.6			4.7			4.9			3.9
Total effect of dilutive securities	8.0			8.8			9.1			7.6
Total weighted-average diluted shares outstanding	567.9			591.1			575.2			589.0

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⁽¹⁾	Includes undistributed earnings allocated to participating securities using the two-class method under the accounting guidance for computing earnings per share.

⁽²⁾

Excluded from the computation of diluted earnings per share were 2.3 million shares related to options with exercise prices ranging from $70.96 to $88.81 and 3.2 million shares related to options with exercise prices ranging from $70.96 to $88.81, for the three and nine months ended September 30, 2014, respectively, and 4.8 million shares related to options with exercise prices ranging from $67.37 to $88.81 and 5.5 million shares related to options with exercise prices ranging from $56.28 to $88.81, for the three and nine months ended September 30, 2013, respectively, because their inclusion would be anti-dilutive.


⁽³⁾	Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program (“TARP”). As of September 30, 2014, there were 6.4 million warrants to purchase common stock outstanding, which represents approximately half of the warrants issued in the initial offering.