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


	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in millions, except per share amounts)	2011			2010			2011			2010
Net income	$	555		$	546		$	1,539		$	1,473
Less:
Preferred stock dividends		(6	)		—			(13	)		—
Dividends and undistributed earnings allocated to participating securities⁽¹⁾		(6	)		(6	)		(15	)		(14	)

Net income available to common shareholders	$	543		$	540		$	1,511		$	1,459

Average shares outstanding (in thousands):
Basic average shares		490,840			495,729			495,015			495,312
Effect of dilutive securities: stock options and stock awards		3,940			2,430			3,402			2,403

Diluted average shares		494,780			498,159			498,417			497,715

Anti-dilutive securities⁽²⁾		3,636			12,386			2,589			10,590

Earnings per Share:
Basic	$	1.11		$	1.09		$	3.05		$	2.94
Diluted⁽³⁾	$	1.10		$	1.08		$	3.03		$	2.93

⁽¹⁾

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

⁽²⁾	Represented stock options, restricted stock and other securities outstanding, but not included in the computation of diluted average shares because their effect was anti-dilutive.

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