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 June 30,						Six Months Ended June 30,
(Dollars and shares in millions, except per share data)	2017			2016			2017			2016
Income from continuing operations, net of tax	$	1,047		$	943		$	1,842		$	1,961
Income (loss) from discontinued operations, net of tax	(11		)	(1		)	4			(6		)
Net income	1,036			942			1,846			1,955
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	(8		)	(6		)	(13		)	(12		)
Preferred stock dividends	(80		)	(65		)	(133		)	(102		)
Net income available to common stockholders	$	948		$	871		$	1,700		$	1,841

Total weighted-average basic shares outstanding	484.0			511.7			483.1			517.6
Effect of dilutive securities:
Stock options	2.4			2.0			2.6			1.9
Other contingently issuable shares	1.0			1.2			1.2			1.2
Warrants⁽²⁾	0.7			1.6			0.8			1.6
Total effect of dilutive securities	4.1			4.8			4.6			4.7
Total weighted-average diluted shares outstanding	488.1			516.5			487.7			522.3

Basic earnings per common share:
Net income from continuing operations	$	1.98		$	1.70		$	3.51		$	3.57
Income (loss) from discontinued operations	(0.02		)	0.00			0.01			(0.01		)
Net income per basic common share	$	1.96		$	1.70		$	3.52		$	3.56

Diluted earnings per common share:⁽³⁾
Net income from continuing operations	$	1.96		$	1.69		$	3.48		$	3.53
Income (loss) from discontinued operations	(0.02		)	0.00			0.01			(0.01		)
Net income per diluted common share	$	1.94		$	1.69		$	3.49		$	3.52

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


⁽²⁾	Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program (“TARP”). There were 1.4 million and 4.1 million warrants to purchase common stock outstanding as of June 30, 2017 and 2016, respectively.

⁽³⁾

Excluded from the computation of diluted earnings per share were 310,000 shares related to options with an exercise price of $82.08 to $86.34, and 266,000 shares related to options with exercise prices ranging from $82.08 to $86.34 for the three and six months ended June 30, 2017, respectively, and 2.1 million shares related to options with exercise prices ranging from $63.73 to $82.62, and 2.5 million shares related to options with exercise prices ranging from $63.73 to $88.81 for the three and six months ended June 30, 2016, respectively, because their inclusion would be anti-dilutive.