The following tables present the computation of basic and diluted earnings per common share for the periods indicated:



	Three Months Ended June 30,
(Dollars in millions, except per share amounts)	2015			2014
Net income	$	422		$	622
Less:
Preferred stock dividends	(29		)	(19		)
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	—			(1		)
Net income available to common shareholders	$	393		$	602
Average common shares outstanding (in thousands):
Basic average common shares	410,674			427,824
Effect of dilutive securities: common stock options and common stock awards	6,038			7,496
Diluted average common shares	416,712			435,320
Anti-dilutive securities⁽²⁾	619			1,508
Earnings per Common Share:
Basic	$	.96		$	1.41
Diluted⁽³⁾	.94			1.38



	Six Months Ended June 30,
(Dollars in millions, except per share amounts)	2015			2014
Net income	$	831		$	985
Less:
Preferred stock dividends	(60		)	(25		)
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	(1		)	(2		)
Net income available to common shareholders	$	770		$	958
Average common shares outstanding (in thousands):
Basic average common shares	411,445			429,215
Effect of dilutive securities: common stock options and common stock awards	6,198			7,743
Diluted average common shares	417,643			436,958
Anti-dilutive securities⁽²⁾	704			1,506
Earnings per Common Share:
Basic	$	1.87		$	2.23
Diluted⁽³⁾	1.84			2.19

⁽¹⁾Represents 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⁾Represents common stock options and other equity-based awards outstanding but not included in the computation of diluted average common 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.