Earnings Per Share

9 Months Ended

Sep. 30, 2021

Basic earnings per share, excluding dilution, is computed by dividing earnings applicable to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that could then share in our earnings.

The following table sets forth the computation of basic and diluted earnings per share of common stock:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(Dollars in millions, except share data)
Net income applicable to common shareholders	$	152	$	222	$	448	$	384
Weighted Average Shares
Weighted average common shares outstanding	52,862,288		57,032,746		52,767,923		56,827,171
Effect of dilutive securities
Stock-based awards	797,134		347,063		731,366		404,518
Weighted average diluted common shares	$	53,659,422	$	57,379,809	$	53,499,289	$	57,231,689
Earnings per common share
Basic earnings per common share	$	2.87	$	3.90	$	8.48	$	6.76
Effect of dilutive securities
Stock-based awards	(0.04)		(0.02)		(0.11)		(0.05)
Diluted earnings per common share	$	2.83	$	3.88	$	8.37	$	6.71