Earnings Per Share of Common Stock

6 Months Ended

Jun. 30, 2024

Earnings 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, 2024 and 2023.


(Dollars in millions except per share amounts)
For the three months ended June 30:	2024		2023
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	920,287,541		909,855,943
Add — Incremental shares under stock-based compensation plans	11,883,820		7,584,035
Add — Incremental shares associated with contingently issuable shares	2,226,234		2,012,519
Number of shares on which diluted earnings per share is calculated	934,397,595		919,452,496

Income from continuing operations	$	1,830	$	1,581
Income from discontinued operations, net of tax	4		2
Net income on which basic earnings per share is calculated	$	1,834	$	1,583

Income from continuing operations	$	1,830	$	1,581
Net income applicable to contingently issuable shares	—		—
Income from continuing operations on which diluted earnings per share is calculated	$	1,830	$	1,581
Income 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	$	1,834	$	1,583

Earnings per share of common stock:
Assuming dilution
Continuing operations	$	1.96	$	1.72
Discontinued operations	0.00		0.00
Total	$	1.96	$	1.72
Basic
Continuing operations	$	1.99	$	1.74
Discontinued operations	0.00		0.00
Total	$	1.99	$	1.74

Stock options to purchase 2,985,594 shares and 5,541,485 shares were outstanding as of June 30, 2024 and 2023, 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:	2024		2023
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	918,733,160		908,691,415
Add — Incremental shares under stock-based compensation plans	13,070,105		8,096,637
Add — Incremental shares associated with contingently issuable shares	2,111,189		1,860,836
Number of shares on which diluted earnings per share is calculated	933,914,454		918,648,888

Income from continuing operations	$	3,405	$	2,515
Income/(loss) from discontinued operations, net of tax	34		(4)
Net income on which basic earnings per share is calculated	$	3,439	$	2,511

Income from continuing operations	$	3,405	$	2,515
Net income applicable to contingently issuable shares	—		—
Income from continuing operations on which diluted earnings per share is calculated	$	3,405	$	2,515
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated	34		(4)
Net income on which diluted earnings per share is calculated	$	3,439	$	2,511

Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	3.65	$	2.74
Discontinued operations	0.04		0.00
Total	$	3.68	$	2.73
Basic
Continuing operations	$	3.71	$	2.77
Discontinued operations	0.04		0.00
Total	$	3.74	$	2.76

Stock options to purchase 1,523,477 shares and 3,251,207 shares (average of first and second quarter share amounts) were outstanding as of June 30, 2024 and 2023, 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.