Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2017

Computation of Basic and Diluted Earnings Per Share

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



	Years Ended December 31,
(Dollars in millions, except per share amounts)	2017			2016			2015
Net income	$	2,177		$	2,143		$	1,980
Less:
Preferred stock dividends	(182		)	(173		)	(130		)
Dividends and undistributed earnings allocated to participating securities⁽¹⁾	(2		)	(2		)	(2		)
Net income available to common shareholders	$	1,993		$	1,968		$	1,848
Average common shares outstanding (In thousands):
Basic average common shares	374,793			391,485			407,856
Effect of dilutive securities: equity-based awards	5,420			4,605			5,782
Diluted average common shares	380,213			396,090			413,638
Anti-dilutive securities⁽²⁾	188			2,143			661
Earnings per Common Share:
Basic	$	5.32		$	5.03		$	4.53
Diluted⁽³⁾	5.24			4.97			4.47

⁽¹⁾Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.

⁽²⁾Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Refer to Note 18 for additional information about equity-based awards.

⁽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.