Earnings Per Common Share

12 Months Ended

Dec. 31, 2021


NOTE 12—EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2021, 2020 and 2019. Dividends and undistributed earnings allocated to participating securities represent the application of the “two-class” method as described in “Note 1—Summary of Significant Accounting Policies.”

Table 12.1: Computation of Basic and Diluted Earnings per Common Share


	Year Ended December 31,
(Dollars and shares in millions, except per share data)		2021		2020		2019
Income from continuing operations, net of tax		$	12,394	$	2,717	$	5,533
Income (loss) from discontinued operations, net of tax		(4)		(3)		13
Net income		12,390		2,714		5,546
Dividends and undistributed earnings allocated to participating securities		(105)		(20)		(41)
Preferred stock dividends		(274)		(280)		(282)
Issuance cost for redeemed preferred stock		(46)		(39)		(31)
Net income available to common stockholders		$	11,965	$	2,375	$	5,192

Total weighted-average basic common shares outstanding		442.5		457.8		467.6
Effect of dilutive securities:(1)
Stock options		0.7		0.6		1.3
Other contingently issuable shares		1.0		0.5		1.0
Total effect of dilutive securities		1.7		1.1		2.3
Total weighted-average diluted common shares outstanding		444.2		458.9		469.9
Basic earnings per common share:
Net income from continuing operations		$	27.05	$	5.20	$	11.07
Income (loss) from discontinued operations		(0.01)		(0.01)		0.03
Net income per basic common share		$	27.04	$	5.19	$	11.10
Diluted earnings per common share:(1)
Net income from continuing operations		$	26.95	$	5.19	$	11.02
Income (loss) from discontinued operations		(0.01)		(0.01)		0.03
Net income per diluted common share		$	26.94	$	5.18	$	11.05

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(1)Excluded from the computation of diluted earnings per share were awards and stock options that would be anti-dilutive. These computations exclude awards of 26 thousand shares and 6 thousand shares for the years ended December 31, 2021 and 2020, respectively, as well as stock options of 523 thousand shares with an exercise price ranging from $63.73 to $86.34 and 69 thousand shares with an exercise price of $86.34 for the years ended December 31, 2020 and 2019, respectively. There were no anti-dilutive stock options for the years ended December 31, 2021 and no anti-dilutive awards of shares for the year ended December 31, 2019.