Earnings Per Share

9 Months Ended

Sep. 30, 2020

The following table sets forth the calculation of basic and diluted earnings per share:


	Basic				Diluted
	Third Quarter
	2020		2019		2020		2019
	($ in millions, except per share amounts, shares in millions)

Net income	$	569	$	657	$	569	$	657
Dividend equivalent payments	(2)		(1)		(1)		—

Income available to common stockholders	$	567	$	656	$	568	$	657

Weighted-average shares outstanding	254.6		262.1		254.6		262.1

Dilutive effect of outstanding options and share-settled awards					1.5		2.2

Adjusted weighted-average shares outstanding					256.1		264.3

Earnings per share	$	2.23	$	2.50	$	2.22	$	2.49

	Basic				Diluted
	First Nine Months
	2020		2019		2020		2019
	($ in millions, except per share amounts, shares in millions)

Net income	$	1,342	$	2,056	$	1,342	$	2,056
Dividend equivalent payments	(3)		(4)		(2)		—

Income available to common stockholders	$	1,339	$	2,052	$	1,340	$	2,056

Weighted-average shares outstanding	255.7		264.6		255.7		264.6

Dilutive effect of outstanding options and share-settled awards					1.5		2.3

Adjusted weighted-average shares outstanding					257.2		266.9

Earnings per share	$	5.24	$	7.76	$	5.21	$	7.70

During the third quarters and first nine months of 2020 and 2019, we made dividend equivalent payments to certain holders of stock options and RSUs. For purposes of computing basic earnings per share, dividend equivalent payments made to holders of stock options and RSUs were deducted from net income to determine income available to common stockholders. For purposes of computing diluted earnings per share, we evaluate on a grant-by-grant basis those stock options and RSUs receiving dividend equivalent payments under the two-class and treasury stock methods to determine which method is more dilutive for each grant. For those grants for which the two-class method was more dilutive, net income was reduced by dividend equivalent payments to determine income available to common stockholders. There are no awards outstanding that were antidilutive for the third quarters and first nine months ended September 30, 2020 and 2019.