Earnings Per Common Share

3 Months Ended

Mar. 31, 2014

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 periods indicated:

	Three Months Ended March 31,
(Dollars in millions, except per share amounts)	2014			2013
Net income	$	363		$	464
Less:
Preferred stock dividends	(6		)	(7		)
Dividends and undistributed earnings allocated to participating securities(1)	(1		)	(2		)
Net income available to common shareholders	$	356		$	455
Average common shares outstanding (in thousands):
Basic average common shares	430,621			454,315
Effect of dilutive securities: common stock options and common stock awards	8,194			8,436
Diluted average common shares	438,815			462,751
Anti-dilutive securities(2)	1,504			2,488
Earnings per Common Share:
Basic	$	.83		$	1.00
Diluted(3)	.81			.98

⁽¹⁾ Represented the portion of net income available to common equity allocated to participating securities, composed of fully vested deferred director stock and unvested restricted stock that contain non-forfeitable rights to dividends during the vesting period on a basis equivalent to dividends paid to common shareholders.

⁽²⁾ 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.

⁽³⁾ Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method.