Earnings/(Loss) Per Share of Common Stock

9 Months Ended

Sep. 30, 2022

Earnings/(Loss) Per Share of Common Stock

Earnings/(Loss) Per Share of Common Stock

7. Earnings/(Loss) Per Share of Common Stock:

The following tables provide the computation of basic and diluted earnings/(loss) per share of common stock for the three and nine months ended September 30, 2022 and 2021.

(Dollars in millions except per share amounts)
For the three months ended September 30:	2022		2021
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		904,076,831		897,097,073
Add — Incremental shares under stock-based compensation plans		—		6,946,467
Add — Incremental shares associated with contingently issuable shares		—		1,909,573
Number of shares on which diluted earnings per share is calculated		904,076,831		905,953,114
Income/(loss) from continuing operations	$	(3,214)	$	1,037
Income/(loss) from discontinued operations, net of tax		18		93
Net income/(loss) on which basic earnings per share is calculated	$	(3,196)	$	1,130
Income/(loss) from continuing operations	$	(3,214)	$	1,037
Net income applicable to contingently issuable shares		—		—
Income/(loss) from continuing operations on which diluted earnings per share is calculated	$	(3,214)	$	1,037
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated		18		93
Net income/(loss) on which diluted earnings per share is calculated	$	(3,196)	$	1,130
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	(3.55)	$	1.14
Discontinued operations		0.02		0.10
Total	$	(3.54)	$	1.25
Basic
Continuing operations	$	(3.55)	$	1.16
Discontinued operations		0.02		0.10
Total	$	(3.54)	$	1.26

Stock options to purchase 840,544 shares and 750,990 shares were outstanding as of September 30, 2022 and 2021, respectively, but were not included in the computation of diluted earnings/(loss) 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.

Due to the net loss for the three months ended September 30, 2022, otherwise dilutive potential shares of common stock under stock-based compensation plans and contingently issuable shares of 6,696,350 and 2,069,742, respectively, have been excluded from the computation of diluted earnings/(loss) per share as the effect would have been antidilutive.

(Dollars in millions except per share amounts)
For the nine months ended September 30:	2022		2021
Number of shares on which basic earnings per share is calculated:
Weighted-average shares outstanding during period		901,621,217		895,257,004
Add — Incremental shares under stock-based compensation plans		—		7,000,190
Add — Incremental shares associated with contingently issuable shares		—		1,720,345
Number of shares on which diluted earnings per share is calculated		901,621,217		903,977,539
Income/(loss) from continuing operations	$	(1,087)	$	2,250
Income/(loss) from discontinued operations, net of tax		16		1,160
Net income/(loss) on which basic earnings per share is calculated	$	(1,071)	$	3,410
Income/(loss) from continuing operations	$	(1,087)	$	2,250
Net income applicable to contingently issuable shares		—		—
Income/(loss) from continuing operations on which diluted earnings per share is calculated	$	(1,087)	$	2,250
Income/(loss) from discontinued operations, net of tax, on which diluted earnings per share is calculated		16		1,160
Net income/(loss) on which diluted earnings per share is calculated	$	(1,071)	$	3,410
Earnings/(loss) per share of common stock:
Assuming dilution
Continuing operations	$	(1.21)	$	2.49
Discontinued operations		0.02		1.28
Total	$	(1.19)	$	3.77
Basic
Continuing operations	$	(1.21)	$	2.51
Discontinued operations		0.02		1.30
Total	$	(1.19)	$	3.81

Stock options to purchase 930,788 shares and 879,289 shares (average of first, second and third quarter share amounts) were outstanding as of September 30, 2022 and 2021, respectively, but were not included in the computation of diluted earnings/(loss) 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.

Due to the net loss for the nine months ended September 30, 2022, otherwise dilutive potential shares of common stock under stock-based compensation plans and contingently issuable shares of 7,530,115 and 1,899,113, respectively, have been excluded from the computation of diluted earnings/(loss) per share as the effect would have been antidilutive.