Earnings Per Common Share

3 Months Ended

Mar. 31, 2021


NOTE 10—EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share.

Table 10.1: Computation of Basic and Diluted Earnings per Common Share


	Three Months Ended March 31,
(Dollars and shares in millions, except per share data)		2021		2020
Income (loss) from continuing operations, net of tax		$	3,327	$	(1,340)
Loss from discontinued operations, net of tax		(2)		0
Net income (loss)		3,325		(1,340)
Dividends and undistributed earnings allocated to participating securities		(28)		(3)
Preferred stock dividends		(61)		(55)
Issuance cost for redeemed preferred stock		0		(22)
Net income (loss) available to common stockholders		$	3,236	$	(1,420)

Total weighted-average basic common shares outstanding		458.6		457.6
Effect of dilutive securities:(1)
Stock options		0.8		—
Other contingently issuable shares		0.7		—

Total effect of dilutive securities		1.5		—
Total weighted-average diluted common shares outstanding		460.1		457.6
Basic earnings per common share:
Net income (loss) from continuing operations		$	7.06	$	(3.10)

Net income (loss) per basic common share		$	7.06	$	(3.10)
Diluted earnings per common share:(1)
Net income (loss) from continuing operations		$	7.03	$	(3.10)

Net income (loss) per diluted common share		$	7.03	$	(3.10)

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(1)Excluded from the computation of diluted earnings per share were 103 thousand shares related to awards for the three months ended March 31, 2021, because their inclusion would be anti-dilutive. In periods of net loss available to common stockholders, dilutive securities are excluded as their inclusion would have an anti-dilutive effect. Accordingly, awards of 1.6 million shares and options of 2.8 million shares with an exercise price ranging from $36.55 to $86.34 were excluded from the computation of diluted earnings per share for the three months ended March 31, 2020, because their inclusion would be anti-dilutive.