Earnings Per Common Share (EPS)

3 Months Ended

Mar. 31, 2023

The computations of basic and diluted EPS for the three months ended March 31 were as follows:


	Three Months Ended March 31,
(Millions, except per share amounts)	2023		2022
Numerator:
Basic and diluted:
Net income	$	1,816	$	2,099
Preferred dividends	(14)		(14)

Net income available to common shareholders	$	1,802	$	2,085
Earnings allocated to participating share awards (a)	(14)		(16)
Net income attributable to common shareholders	$	1,788	$	2,069
Denominator:(a)
Basic: Weighted-average common stock	743		757
Add: Weighted-average stock options (b)	1		1
Diluted	744		758

Basic EPS	$	2.41	$	2.73
Diluted EPS	$	2.40	$	2.73

(a)Our unvested restricted stock awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.

(b)The dilutive effect of unexercised stock options excludes from the computation of EPS 1.3 million and 0.1 million of options for the three months ended March 31, 2023 and 2022, respectively, because inclusion of the options would have been anti-dilutive.