Earnings/(Loss) Per Share of Common Stock

9 Months Ended

Sep. 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 nine months ended September 30, 2023 and 2022.


(Dollars in millions except per share amounts)
For the three months ended September 30:	2023		2022
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	912,790,387		904,076,831
Add — Incremental shares under stock-based compensation plans	8,531,982		—
Add — Incremental shares associated with contingently issuable shares	2,350,932		—
Number of shares on which diluted earnings per share is calculated	923,673,300		904,076,831

Income/(loss) from continuing operations	$	1,714	$	(3,214)
Income/(loss) from discontinued operations, net of tax	(10)		18
Net income/(loss) on which basic earnings per share is calculated	$	1,704	$	(3,196)

Income/(loss) from continuing operations	$	1,714	$	(3,214)
Net income applicable to contingently issuable shares	—		—
Income/(loss) from continuing operations on which diluted earnings per share is calculated	$	1,714	$	(3,214)
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated	(10)		18
Net income/(loss) on which diluted earnings per share is calculated	$	1,704	$	(3,196)

Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	1.86	$	(3.55)
Discontinued operations	(0.01)		0.02
Total	$	1.84	$	(3.54)
Basic
Continuing operations	$	1.88	$	(3.55)
Discontinued operations	(0.01)		0.02
Total	$	1.87	$	(3.54)

Stock options to purchase 536,391 shares and 840,544 shares were outstanding as of September 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.

Due to the net loss for the three months ended September 30, 2022, otherwise dilutive potential shares of common stock under stock-based compensation plans and contingently issuable shares of 6,696,350 and 2,069,742, respectively, have been excluded from the computation of diluted earnings/(loss) per share for the three months ended September 30, 2022, as the effect would have been antidilutive.


(Dollars in millions except per share amounts)
For the nine months ended September 30:	2023		2022
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	910,057,739		901,621,217
Add — Incremental shares under stock-based compensation plans	8,241,752		—
Add — Incremental shares associated with contingently issuable shares	2,024,201		—
Number of shares on which diluted earnings per share is calculated	920,323,692		901,621,217

Income/(loss) from continuing operations	$	4,229	$	(1,087)
Income/(loss) from discontinued operations, net of tax	(15)		16
Net income/(loss) on which basic earnings per share is calculated	$	4,214	$	(1,071)

Income/(loss) from continuing operations	$	4,229	$	(1,087)
Net income applicable to contingently issuable shares	—		—
Income/(loss) from continuing operations on which diluted earnings per share is calculated	$	4,229	$	(1,087)
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated	(15)		16
Net income/(loss) on which diluted earnings per share is calculated	$	4,214	$	(1,071)

Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	4.59	$	(1.21)
Discontinued operations	(0.02)		0.02
Total	$	4.58	$	(1.19)
Basic
Continuing operations	$	4.65	$	(1.21)
Discontinued operations	(0.02)		0.02
Total	$	4.63	$	(1.19)

Stock options to purchase 2,346,268 shares and 930,788 shares (average of first, second and third quarter share amounts) were outstanding as of September 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.

Due to the net loss for the nine months ended September 30, 2022, otherwise dilutive potential shares of common stock under stock-based compensation plans and contingently issuable shares of 7,530,115 and 1,899,113, respectively, have been excluded from the computation of diluted earnings/(loss) per share for the nine months ended September 30, 2022, as the effect would have been antidilutive.