Earnings Per Share of Common Stock

9 Months Ended

Sep. 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 nine months ended September 30, 2021 and 2020.

(Dollars in millions except per share amounts)
For the three months ended September 30:	2021		2020
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		897,097,073		891,381,032
Add — Incremental shares under stock-based compensation plans		6,946,467		4,595,327
Add — Incremental shares associated with contingently issuable shares		1,909,573		1,315,874
Number of shares on which diluted earnings per share is calculated		905,953,114		897,292,233
Income from continuing operations	$	1,130	$	1,698
Income/(loss) from discontinued operations, net of tax		—		(1)
Net income on which basic earnings per share is calculated	$	1,130	$	1,698
Income from continuing operations	$	1,130	$	1,698
Net income applicable to contingently issuable shares		—		—
Income from continuing operations on which diluted earnings per share is calculated	$	1,130	$	1,698
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	$	1,130	$	1,698
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	1.25	$	1.89
Discontinued operations		—		0.00
Total	$	1.25	$	1.89
Basic
Continuing operations	$	1.26	$	1.90
Discontinued operations		—		0.00
Total	$	1.26	$	1.90

Stock options to purchase 750,990 shares and 1,510,886 shares were outstanding as of September 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 nine months ended September 30:	2021		2020
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		895,257,004		889,595,181
Add — Incremental shares under stock-based compensation plans		7,000,190		4,875,369
Add — Incremental shares associated with contingently issuable shares		1,720,345		1,286,300
Number of shares on which diluted earnings per share is calculated		903,977,539		895,756,850
Income from continuing operations	$	3,411	$	4,237
Income/(loss) from discontinued operations, net of tax		(1)		(2)
Net income on which basic earnings per share is calculated	$	3,410	$	4,234
Income from continuing operations	$	3,411	$	4,237
Net income applicable to contingently issuable shares		—		(2)
Income from continuing operations on which diluted earnings per share is calculated	$	3,411	$	4,234
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	$	3,410	$	4,232
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	3.77	$	4.72
Discontinued operations		0.00		0.00
Total	$	3.77	$	4.72
Basic
Continuing operations	$	3.81	$	4.76
Discontinued operations		0.00		0.00
Total	$	3.81	$	4.76

Stock options to purchase 879,289 shares and 1,386,591 shares (average of first, second and third quarter share amounts) were outstanding as of September 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.