Earnings Per Share of Common Stock

6 Months Ended

Jun. 30, 2021

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 six months ended June 30, 2021 and 2020.

(Dollars in millions except per share amounts)
For the three months ended June 30:	2021		2020
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		895,043,024		889,435,166
Add — Incremental shares under stock-based compensation plans		7,431,661		4,290,365
Add — Incremental shares associated with contingently issuable shares		1,758,754		1,213,549
Number of shares on which diluted earnings per share is calculated		904,233,439		894,939,080
Income from continuing operations	$	1,325	$	1,362
Income/(loss) from discontinued operations, net of tax		—		(1)
Net income on which basic earnings per share is calculated	$	1,325	$	1,361
Income from continuing operations	$	1,325	$	1,362
Net income applicable to contingently issuable shares		—		—
Income from continuing operations on which diluted earnings per share is calculated	$	1,325	$	1,362
Income/(loss) from discontinued operations, net of tax, on which basic and diluted earnings per share is calculated		—		(1)
Net income on which diluted earnings per share is calculated	$	1,325	$	1,361
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	1.47	$	1.52
Discontinued operations		—		0.00
Total	$	1.47	$	1.52
Basic
Continuing operations	$	1.48	$	1.53
Discontinued operations		—		0.00
Total	$	1.48	$	1.53

Stock options to purchase 375,990 shares and 1,511,989 shares were outstanding as of June 30, 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.

(Dollars in millions except per share amounts)
For the six months ended June 30:	2021		2020
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		894,336,970		888,702,256
Add — Incremental shares under stock-based compensation plans		7,027,051		5,015,390
Add — Incremental shares associated with contingently issuable shares		1,625,732		1,271,513
Number of shares on which diluted earnings per share is calculated		902,989,752		894,989,159
Income from continuing operations	$	2,281	$	2,538
Income/(loss) from discontinued operations, net of tax		(1)		(2)
Net income on which basic earnings per share is calculated	$	2,280	$	2,536
Income from continuing operations	$	2,281	$	2,538
Net income applicable to contingently issuable shares		—		(2)
Income from continuing operations on which diluted earnings per share is calculated	$	2,281	$	2,536
Income/(loss) from discontinued operations, net of tax, on which basic and diluted earnings per share is calculated		(1)		(2)
Net income on which diluted earnings per share is calculated	$	2,280	$	2,534
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	2.52	$	2.83
Discontinued operations		0.00		0.00
Total	$	2.52	$	2.83
Basic
Continuing operations	$	2.55	$	2.85
Discontinued operations		0.00		0.00
Total	$	2.55	$	2.85

Stock options to purchase 943,438 shares and 1,324,444 shares (average of first and second quarter share amounts) were outstanding as of June 30, 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.