Earnings/(Loss) Per Share of Common Stock

6 Months Ended

Jun. 30, 2023

Earnings/(Loss) Per Share of Common Stock

Earnings/(Loss) Per Share of Common Stock:

The following tables provide the computation of basic and diluted earnings per share of common stock for the three and six months ended June 30, 2023 and 2022.


(Dollars in millions except per share amounts)
For the three months ended June 30:	2023		2022
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	909,855,943		901,470,793
Add — Incremental shares under stock-based compensation plans	7,584,035		7,518,749
Add — Incremental shares associated with contingently issuable shares	2,012,519		1,760,192
Number of shares on which diluted earnings per share is calculated	919,452,496		910,749,734

Income from continuing operations	$	1,581	$	1,465
Income/(loss) from discontinued operations, net of tax	2		(73)
Net income on which basic earnings per share is calculated	$	1,583	$	1,392

Income from continuing operations	$	1,581	$	1,465
Net income applicable to contingently issuable shares	—		—
Income from continuing operations on which diluted earnings per share is calculated	$	1,581	$	1,465
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated	2		(73)
Net income on which diluted earnings per share is calculated	$	1,583	$	1,392

Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	1.72	$	1.61
Discontinued operations	0.00		(0.08)
Total	$	1.72	$	1.53
Basic
Continuing operations	$	1.74	$	1.62
Discontinued operations	0.00		(0.08)
Total	$	1.74	$	1.54

Stock options to purchase 5,541,485 shares and 788,500 shares were outstanding as of June 30, 2023 and 2022, respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options during the respective period was greater than the average market price of the common shares, and therefore, the effect would have been antidilutive.


(Dollars in millions except per share amounts)
For the six months ended June 30:	2023		2022
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	908,691,415		900,393,410
Add — Incremental shares under stock-based compensation plans	8,096,637		7,946,998
Add — Incremental shares associated with contingently issuable shares	1,860,836		1,647,528
Number of shares on which diluted earnings per share is calculated	918,648,888		909,987,935

Income from continuing operations	$	2,515	$	2,127
Income/(loss) from discontinued operations, net of tax	(4)		(2)
Net income on which basic earnings per share is calculated	$	2,511	$	2,125

Income from continuing operations	$	2,515	$	2,127
Net income applicable to contingently issuable shares	—		—
Income from continuing operations on which diluted earnings per share is calculated	$	2,515	$	2,127
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated	(4)		(2)
Net income on which diluted earnings per share is calculated	$	2,511	$	2,125

Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	2.74	$	2.34
Discontinued operations	0.00		0.00
Total	$	2.73	$	2.34
Basic
Continuing operations	$	2.77	$	2.36
Discontinued operations	0.00		0.00
Total	$	2.76	$	2.36

Stock options to purchase 3,251,207 shares and 975,911 shares (average of first and second quarter share amounts) were outstanding as of June 30, 2023 and 2022, respectively, but were not included in the computation of diluted earnings per share because the exercise price of the options during the respective period was greater than the average market price of the common shares, and therefore, the effect would have been antidilutive.