The following table sets forth the computation of basic and diluted earnings per common share. Dividends and undistributed earnings allocated to participating securities represent the undistributed earnings allocated to participating securities using the two-class method permitted by U.S. GAAP for computing earnings per share.

Table 13.1: Computation of Basic and Diluted Earnings per Common Share



	Year Ended December 31,
(Dollars and shares in millions, except per share data)	2017			2016			2015
Income from continuing operations, net of tax	$	2,117		$	3,770		$	4,012
Income (loss) from discontinued operations, net of tax	(135		)	(19		)	38
Net income	1,982			3,751			4,050
Dividends and undistributed earnings allocated to participating securities	(13		)	(24		)	(20		)
Preferred stock dividends	(265		)	(214		)	(158		)
Net income available to common stockholders	$	1,704		$	3,513		$	3,872

Total weighted-average basic shares outstanding	484.2			504.9			541.8
Effect of dilutive securities:
Stock options	2.5			2.0			2.6
Other contingently issuable shares	1.2			1.3			1.3
Warrants⁽¹⁾	0.7			1.6			2.3
Total effect of dilutive securities	4.4			4.9			6.2
Total weighted-average diluted shares outstanding	488.6			509.8			548.0

Basic earnings per common share:
Net income from continuing operations	$	3.80		$	7.00		$	7.08
Income (loss) from discontinued operations	(0.28		)	(0.04		)	0.07
Net income per basic common share	$	3.52		$	6.96		$	7.15

Diluted earnings per common share:⁽²⁾
Net income from continuing operations	$	3.76		$	6.93		$	7.00
Income (loss) from discontinued operations	(0.27		)	(0.04		)	0.07
Net income per diluted common share	$	3.49		$	6.89		$	7.07

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⁽¹⁾	Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program (“TARP”). There were 1.3 million warrants to purchase common stock outstanding as of December 31, 2017 and 4.1 million warrants to purchase common stock outstanding as of both December 31, 2016 and 2015.

⁽²⁾

Excluded from the computation of diluted earnings per share were 233,000 shares related to options with exercise prices ranging from $82.08 to $86.34, 1.7 million shares related to options with exercise prices ranging from $63.73 to $88.81 and 1.9 million shares related to options with exercise prices ranging from $70.96 to $88.81 for the years ended December 31, 2017, 2016 and 2015, respectively, because their inclusion would be anti-dilutive.