Earnings Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share (“EPS”)

Basic and diluted earnings per share were computed as follows:


	Three Months Ended
	September 30, 2020						September 30, 2019
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Effect of Dilution		Diluted		Basic		Effect of Dilution		Diluted
Shareholders’ net income	$	1,388			$	1,388	$	1,351			$	1,351
Shares:
Weighted average	364,427				364,427		374,842				374,842
Common stock equivalents			2,763		2,763				3,479		3,479
Total shares	364,427		2,763		367,190		374,842		3,479		378,321
EPS	$	3.81	$	(0.03)	$	3.78	$	3.60	$	(0.03)	$	3.57


	Nine Months Ended
	September 30, 2020						September 30, 2019
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Effect of Dilution		Diluted		Basic		Effect of Dilution		Diluted
Shareholders’ net income	$	4,323			$	4,323	$	4,127			$	4,127
Shares:
Weighted average	367,410				367,410		377,381				377,381
Common stock equivalents			3,421		3,421				3,710		3,710
Total shares	367,410		3,421		370,831		377,381		3,710		381,091
EPS	$	11.77	$	(0.11)	$	11.66	$	10.94	$	(0.11)	$	10.83

The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive.


	Three Months Ended September 30,		Nine Months Ended September 30,
(In millions)	2020	2019	2020	2019
Anti-dilutive options	4.6	3.6	4.2	3.9

The Company held approximately 26.7 million shares of common stock in treasury at September 30, 2020, 13.0 million shares as of December 31, 2019 and 10.4 million shares as of September 30, 2019.