Earnings Per Share of Common Stock

6 Months Ended

Jun. 30, 2022

Earnings Per Share of Common Stock

Earnings Per Share of Common Stock

7. 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, 2022 and 2021.

(Dollars in millions except per share amounts)
For the three months ended June 30:	2022		2021
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		901,470,793		895,043,024
Add — Incremental shares under stock-based compensation plans		7,518,749		7,431,661
Add — Incremental shares associated with contingently issuable shares		1,760,192		1,758,754
Number of shares on which diluted earnings per share is calculated		910,749,734		904,233,439
Income from continuing operations	$	1,465	$	810
Income/(loss) from discontinued operations, net of tax		(73)		515
Net income on which basic earnings per share is calculated	$	1,392	$	1,325
Income from continuing operations	$	1,465	$	810
Net income applicable to contingently issuable shares		—		—
Income from continuing operations on which diluted earnings per share is calculated	$	1,465	$	810
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated		(73)		515
Net income on which diluted earnings per share is calculated	$	1,392	$	1,325
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	1.61	$	0.90
Discontinued operations		(0.08)		0.57
Total	$	1.53	$	1.47
Basic
Continuing operations	$	1.62	$	0.91
Discontinued operations		(0.08)		0.57
Total	$	1.54	$	1.48

Stock options to purchase 788,500 shares and 375,990 shares were outstanding as of June 30, 2022 and 2021, 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:	2022		2021
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		900,393,410		894,336,970
Add — Incremental shares under stock-based compensation plans		7,946,998		7,027,051
Add — Incremental shares associated with contingently issuable shares		1,647,528		1,625,732
Number of shares on which diluted earnings per share is calculated		909,987,935		902,989,752
Income from continuing operations	$	2,127	$	1,213
Income/(loss) from discontinued operations, net of tax		(2)		1,067
Net income on which basic earnings per share is calculated	$	2,125	$	2,280
Income from continuing operations	$	2,127	$	1,213
Net income applicable to contingently issuable shares		—		—
Income from continuing operations on which diluted earnings per share is calculated	$	2,127	$	1,213
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated		(2)		1,067
Net income on which diluted earnings per share is calculated	$	2,125	$	2,280
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	2.34	$	1.34
Discontinued operations		0.00		1.18
Total	$	2.34	$	2.52
Basic
Continuing operations	$	2.36	$	1.36
Discontinued operations		0.00		1.19
Total	$	2.36	$	2.55

Stock options to purchase 975,911 shares and 943,438 shares (average of first and second quarter share amounts) were outstanding as of June 30, 2022 and 2021, 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.