BB&T 2010 Annual Report Download - page 165

NOTE 21. Computation of Earnings Per Common Share
The basic and diluted earnings per common share calculations are presented in the following table:
Years Ended December 31,
2010 2009 2008
(Dollars in millions, except per share
data, shares in thousands)
Basic Earnings Per Share:
Net income available to common shareholders $ 816 $ 729 $ 1,498
Weighted average number of common shares 692,489 629,583 548,847
Basic earnings per share $ 1.18 $ 1.16 $ 2.73
Diluted Earnings Per Share:
Net income available to common shareholders $ 816 $ 729 $ 1,498
Weighted average number of common shares 692,489 629,583 548,847
Add:
Effect of dilutive outstanding equity-based awards 8,550 6,036 3,651
Weighted average number of diluted common shares 701,039 635,619 552,498
Diluted earnings per share $ 1.16 $ 1.15 $ 2.71
For the years ended December 31, 2010, 2009 and 2008, respectively, the number of antidilutive options was
36.8 million, 38.6 million and 33.5 million. In addition, BB&T had a warrant outstanding for 13.9 million shares as
of December 31, 2008 that was antidilutive.
NOTE 22. Operating Segments
BB&T’s operations are divided into seven reportable business segments: Community Banking, Residential
Mortgage Banking, Sales Finance, Specialized Lending, Insurance Services, Financial Services, and Treasury.
These operating segments have been identified based on BB&T’s organizational structure. The segments require
unique technology and marketing strategies and offer different products and services. While BB&T is managed
as an integrated organization, individual executive managers are held accountable for the operations of these
business segments.
BB&T measures and presents information for internal reporting purposes in a variety of different ways. The
internal reporting system presently used by management in the planning and measuring of operating activities,
as well as the system to which most managers are held accountable, is based on organizational structure.
BB&T emphasizes revenue growth by focusing on client service, sales effectiveness and relationship
management. The segment results contained herein are presented based on internal management accounting
policies that were designed to support these strategic objectives. Unlike financial accounting, there is no
comprehensive authoritative body of guidance for management accounting equivalent to generally accepted
accounting principles. The performance of the segments is not comparable with BB&T’s consolidated results or
with similar information presented by any other financial institution. Additionally, because of the
interrelationships of the various segments, the information presented is not indicative of how the segments would
perform if they operated as independent entities.
The management accounting process uses various estimates and allocation methodologies to measure the
performance of the operating segments. To determine financial performance for each segment, BB&T allocates
capital, funding charges and credits, an economic provision for loan and lease losses, certain noninterest expenses
and income tax provisions to each segment, as applicable. Also, to promote revenue growth and provide a basis
for employee incentives, certain revenues of Residential Mortgage Banking, Sales Finance, Specialized Lending,
Insurance Services, Financial Services and other segments are reflected in noninterest income in the individual
segment results and also allocated to Community Banking and Financial Services. These allocated revenues are
reflected in intersegment net referral fees and eliminated in Parent/Reconciling Items with the exception of
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