Earnings Per Common Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The following table presents the computation of basic and diluted earnings per common share for the years ended December 31:

(Dollars in millions, except per share amounts)	2012			2011			2010
Net income	$	2,061		$	1,920		$	1,556
Less:
Preferred stock dividends(1)	(29		)	(20		)	—
Dividends and undistributed earnings allocated to participating securities(2)	(13		)	(18		)	(16		)
Net income available to common shareholders	$	2,019		$	1,882		$	1,540
Average common shares outstanding (in thousands):
Basic average common shares	474,458			492,598			495,394
Effect of dilutive securities: common stock options and common stock awards	6,671			3,474			2,530
Diluted average common shares	481,129			496,072			497,924
Anti-dilutive securities(3)	5,619			2,382			10,316
Earnings per Common Share:
Basic	$	4.25		$	3.82		$	3.11
Diluted(4)	4.20			3.79			3.09

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⁽¹⁾Amount for 2012 included $8 million related to Series C preferred stock issued in August 2012. Remaining amount for 2012 and amount for 2011 were related to Series A preferred stock, which was redeemed in October 2012.

⁽²⁾Represented the portion of net income available to common equity allocated to participating securities; participating securities, composed of unvested restricted stock and director stock awards, contain non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.

⁽³⁾Represented common stock options and other equity-based awards outstanding, but not included in the computation of diluted average shares because their effect was anti-dilutive.

⁽⁴⁾Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the calculation using the treasury stock method.