Earnings Per Share (Tables)

6 Months Ended

Mar. 31, 2020

Schedule of Earnings Per Share, Basic and Diluted

The following table presents earnings per share for the three months ended March 31, 2020:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽¹⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)⁽²⁾		Income Allocation (A)⁽¹⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)⁽²⁾
Class A common stock	$	2,360	1,703	$	1.39	$	3,084	2,228	⁽³⁾	$	1.38
Class B common stock	552		245	$	2.25	$	551	245		$	2.25
Class C common stock	61		11	$	5.54	$	60	11		$	5.54
Participating securities⁽⁴⁾	111		Not presented	Not presented		$	111	Not presented		Not presented
Net income	$	3,084

The following table presents earnings per share for the six months ended March 31, 2020:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽¹⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)⁽²⁾		Income Allocation (A)⁽¹⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)⁽²⁾
Class A common stock	$	4,866	1,708	$	2.85	$	6,356	2,234	⁽³⁾	$	2.85
Class B common stock	1,135		245	$	4.62	$	1,134	245		$	4.62
Class C common stock	126		11	$	11.40	$	125	11		$	11.38
Participating securities⁽⁴⁾	229		Not presented	Not presented		$	229	Not presented		Not presented
Net income	$	6,356

The following table presents earnings per share for the three months ended March 31, 2019:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽¹⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)⁽²⁾		Income Allocation (A)⁽¹⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)⁽²⁾
Class A common stock	$	2,287	1,748	$	1.31	$	2,977	2,279	⁽³⁾	$	1.31
Class B common stock	523		245	$	2.13	$	523	245		$	2.13
Class C common stock	61		12	$	5.23	$	61	12		$	5.23
Participating securities⁽⁴⁾	106		Not presented	Not presented		$	106	Not presented		Not presented
Net income	$	2,977

The following table presents earnings per share for the six months ended March 31, 2019:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽¹⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)⁽²⁾		Income Allocation (A)⁽¹⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)⁽²⁾
Class A common stock	$	4,577	1,754	$	2.61	$	5,954	2,285	⁽³⁾	$	2.61
Class B common stock	1,044		245	$	4.25	$	1,043	245		$	4.25
Class C common stock	122		12	$	10.44	$	122	12		$	10.42
Participating securities⁽⁴⁾	211		Not presented	Not presented		$	211	Not presented		Not presented
Net income	$	5,954

⁽¹⁾

Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 398 million for the three and six months ended March 31, 2020 and 400 million for the three and six months ended March 31, 2019. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 44 million for the three and six months ended March 31, 2020 and 47 million for the three and six months ended March 31, 2019. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three and six months ended March 31, 2020 and 2019, and 44 million of as-converted Europe preferred stock for the three and six months ended March 31, 2020 and 2019.


⁽²⁾	Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.

⁽³⁾

Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes common stock equivalents of 3 million for the three and six months ended March 31, 2020 and 2019, because their effect would have been dilutive. The computation excludes common stock equivalents of 1 million and 2 million for the three and six months ended March 31, 2020, respectively, and 1 million for the three and six months ended March 31, 2019, because their effect would have been anti-dilutive.

⁽⁴⁾

Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the UK&I and Europe preferred stock and restricted stock units. Participating securities’ income is allocated based on the weighted-average number of shares of as-converted stock.