Earnings Per Share of Common Stock

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023.


(Dollars in millions except per share amounts)
For the three months ended September 30:	2024		2023
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	923,577,526		912,790,387
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	923,577,526		923,673,300

Income/(loss) from continuing operations	$	(317)	$	1,714
(Loss) from discontinued operations, net of tax	(13)		(10)
Net income/(loss) on which basic earnings per share is calculated	$	(330)	$	1,704

Income/(loss) from continuing operations	$	(317)	$	1,714
Net income applicable to contingently issuable shares	—		—
Income/(loss) from continuing operations on which diluted earnings per share is calculated	$	(317)	$	1,714
(Loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated	(13)		(10)
Net income/(loss) on which diluted earnings per share is calculated	$	(330)	$	1,704

Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	(0.34)	$	1.86
Discontinued operations	(0.01)		(0.01)
Total	$	(0.36)	$	1.84
Basic
Continuing operations	$	(0.34)	$	1.88
Discontinued operations	(0.01)		(0.01)
Total	$	(0.36)	$	1.87

Stock options to purchase 9,189 shares and 536,391 shares were outstanding as of September 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.

Due to the net loss for the three months ended September 30, 2024, otherwise dilutive potential shares of common stock under stock-based compensation plans and contingently issuable shares of 12,348,507 and 2,520,759, respectively, have been excluded from the computation of diluted earnings/(loss) per share as the effect would have been antidilutive.


(Dollars in millions except per share amounts)
For the nine months ended September 30:	2024		2023
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period	920,347,948		910,057,739
Add — Incremental shares under stock-based compensation plans	12,829,572		8,241,752
Add — Incremental shares associated with contingently issuable shares	2,247,712		2,024,201
Number of shares on which diluted earnings per share is calculated	935,425,233		920,323,692

Income from continuing operations	$	3,088	$	4,229
Income/(loss) from discontinued operations, net of tax	21		(15)
Net income on which basic earnings per share is calculated	$	3,109	$	4,214

Income from continuing operations	$	3,088	$	4,229
Net income applicable to contingently issuable shares	—		—
Income from continuing operations on which diluted earnings per share is calculated	$	3,088	$	4,229
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated	21		(15)
Net income on which diluted earnings per share is calculated	$	3,109	$	4,214

Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	3.30	$	4.59
Discontinued operations	0.02		(0.02)
Total	$	3.32	$	4.58
Basic
Continuing operations	$	3.36	$	4.65
Discontinued operations	0.02		(0.02)
Total	$	3.38	$	4.63

Stock options to purchase 1,018,714 shares and 2,346,268 shares (average of first, second and third quarter share amounts) were outstanding as of September 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.