Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

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EARNINGS PER SHARE
12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
Basic earnings per common share is the amount of earnings (adjusted for dividends declared on preferred stock) available to each share of common stock outstanding during the reporting period. Diluted earnings per common share is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock options, restricted stock units and awards, distributions from deferred compensation plans, and the conversion of the Company’s convertible preferred stock. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive.
The 2018 and 2017 total diluted average common shares issued and outstanding was impacted by using the if-converted method. The calculation of basic and diluted earnings per share for each of the three years ended December 31 was as follows:
 
Year Ended December 31,
(amounts in millions, except per share data, share count in thousands)
2019
 
2018
 
2017
Basic earnings per common share:
 
 
 
 
 
Net income
$
1,411

 
$
1,393

 
$
1,186

Preferred stock dividends
(74
)
 
(70
)
 
(76
)
Net income available to common shareholders
$
1,337

 
$
1,323

 
$
1,110

Average common shares issued and outstanding
1,038,840

 
1,081,542

 
1,084,686

Basic earnings per common share
$
1.29

 
$
1.22

 
$
1.02

Diluted earnings per common share:
 
 
 
 
 
Net income available to common shareholders
$
1,337

 
$
1,323

 
$
1,110

Effect of assumed preferred stock conversion

 

 
31

Net income applicable to diluted earnings per share
$
1,337

 
$
1,323

 
$
1,141

Average common shares issued and outstanding
1,038,840

 
1,081,542

 
1,084,686

Dilutive potential common shares
 
 
 
 
 
Stock options and restricted stock units and awards
12,994

 
16,529

 
17,883

Shares held in deferred compensation plans
4,245

 
3,511

 
3,160

Dilutive impact of Preferred Stock

 
4,403

 
30,330

Other

 

 
127

Dilutive potential common shares
17,239

 
24,443

 
51,500

Total diluted average common shares issued and outstanding
1,056,079

 
1,105,985

 
1,136,186

Diluted earnings per common share
$
1.27

 
$
1.20

 
$
1.00

Anti-dilutive awards (1)
5,253

 
2,307

 
1,009


(1)
Reflects the total number of shares related to outstanding options that have been excluded from the computation of diluted earnings per share because the impact would have been anti-dilutive.