Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2021

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)	2021		2020		2019
Net income	$	2,693	$	2,420	$	2,242
Less:
Preferred stock dividends	(119)		(162)		(232)
Dividends and undistributed earnings allocated to participating securities(1)	(2)		(1)		(1)
Net income available to common shareholders	$	2,572	$	2,257	$	2,009
Average common shares outstanding (In thousands):
Basic average common shares	352,565		352,865		369,911
Effect of dilutive securities: equity-based awards	5,397		4,241		3,755
Diluted average common shares	357,962		357,106		373,666
Anti-dilutive securities(2)	3		1,066		2,052
Earnings per common share:
Basic	$	7.30	$	6.40	$	5.43
Diluted(3)	7.19		6.32		5.38

(1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP (Supplemental executive retirement plans) 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. Additional information about equity-based awards is provided in Note 18.

(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.