Earnings Per Share of Common Stock

3 Months Ended

Mar. 31, 2021

Earnings Per Share of Common Stock

Earnings Per Share of Common Stock

6. Earnings Per Share of Common Stock:

The following table provides the computation of basic and diluted earnings per share of common stock for the three months ended March 31, 2021 and 2020.

(Dollars in millions except per share amounts)
For the three months ended March 31:	2021		2020
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		893,630,916		887,969,345
Add — Incremental shares under stock-based compensation plans		6,622,441		5,740,415
Add — Incremental shares associated with contingently issuable shares		1,492,709		1,329,477
Number of shares on which diluted earnings per share is calculated		901,746,065		895,039,238
Income from continuing operations	$	956	$	1,176
Income/(loss) from discontinued operations, net of tax		(1)		(1)
Net income on which basic earnings per share is calculated	$	955	$	1,175
Income from continuing operations	$	956	$	1,176
Net income applicable to contingently issuable shares		—		(2)
Income from continuing operations on which diluted earnings per share is calculated	$	956	$	1,174
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	$	955	$	1,173
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	1.06	$	1.31
Discontinued operations		0.00		0.00
Total	$	1.06	$	1.31
Basic
Continuing operations	$	1.07	$	1.32
Discontinued operations		0.00		0.00
Total	$	1.07	$	1.32

Stock options to purchase 1,510,886 shares and 1,136,899 shares were outstanding as of March 31, 2021 and 2020, 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.