Earnings Per Share of Common Stock

9 Months Ended

Sep. 30, 2020

Earnings Per Share of Common Stock

Earnings Per Share of Common Stock

6. 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, 2020 and 2019.

	For the Three Months Ended
(Dollars in millions except per share amounts)	September 30, 2020		September 30, 2019
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		891,381,032		886,018,372
Add — Incremental shares under stock-based compensation plans		4,595,327		5,368,268
Add — Incremental shares associated with contingently issuable shares		1,315,874		1,453,105
Number of shares on which diluted earnings per share is calculated		897,292,233		892,839,745
Income from continuing operations	$	1,698	$	1,673
Income/(loss) from discontinued operations, net of tax		(1)		(1)
Net income on which basic earnings per share is calculated	$	1,698	$	1,672
Income from continuing operations	$	1,698	$	1,673
Net income applicable to contingently issuable shares		—		—
Income from continuing operations on which diluted earnings per share is calculated	$	1,698	$	1,673
Income/(loss) from discontinued operations, net of tax, on which basic and diluted earnings per share is calculated		(1)		(1)
Net income on which diluted earnings per share is calculated	$	1,698	$	1,672
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	1.89	$	1.87
Discontinued operations		0.00		0.00
Total	$	1.89	$	1.87
Basic
Continuing operations	$	1.90	$	1.89
Discontinued operations		0.00		0.00
Total	$	1.90	$	1.89

Stock options to purchase 1,510,886 shares and 761,659 shares were outstanding as of September 30, 2020 and 2019, respectively, but were not included in the computation of diluted earnings per share because the options' exercise price during the respective period was greater than the average market price of the common shares, and, therefore, the effect would have been antidilutive.

	For the Nine Months Ended
(Dollars in millions except per share amounts)	September 30, 2020		September 30, 2019
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		889,595,181		887,291,199
Add — Incremental shares under stock-based compensation plans		4,875,369		4,007,433
Add — Incremental shares associated with contingently issuable shares		1,286,300		1,228,726
Number of shares on which diluted earnings per share is calculated		895,756,850		892,527,357
Income from continuing operations	$	4,237	$	5,766
Income/(loss) from discontinued operations, net of tax		(2)		(5)
Net income on which basic earnings per share is calculated	$	4,234	$	5,761
Income from continuing operations	$	4,237	$	5,766
Net income applicable to contingently issuable shares		(2)		0
Income from continuing operations on which diluted earnings per share is calculated	$	4,234	$	5,766
Income/(loss) from discontinued operations, net of tax, on which basic and diluted earnings per share is calculated		(2)		(5)
Net income on which diluted earnings per share is calculated	$	4,232	$	5,762
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	4.72	$	6.46
Discontinued operations		0.00		(0.01)
Total	$	4.72	$	6.45
Basic
Continuing operations	$	4.76	$	6.50
Discontinued operations		0.00		(0.01)
Total	$	4.76	$	6.49

Stock options to purchase 1,386,591 shares and 886,899 shares (average of first, second and third quarter share amounts) were outstanding as of September 30, 2020 and 2019, respectively, but were not included in the computation of diluted earnings per share because the options' exercise price during the respective period was greater than the average market price of the common shares, and, therefore, the effect would have been antidilutive.