XML 20 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Earnings Per Share
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share

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

 
Basic
 
Diluted
 
Second Quarter
 
2018
 
2017
 
2018
 
2017
 
($ in millions, except per share amounts,
shares in millions)
 
 
 
 
 
 
 
 
Net income
$
710

 
$
497

 
$
710

 
$
497

Dividend equivalent payments
(1
)
 
(1
)
 

 

 
 
 
 
 
 
 
 
Income available to common stockholders
$
709

 
$
496

 
$
710

 
$
497

 
 
 
 
 
 
 
 
Weighted-average shares outstanding
281.3

 
289.0

 
281.3

 
289.0

Dilutive effect of outstanding options
 

 
 

 
 

 
 

and share-settled awards
 

 
 

 
2.4

 
2.2

 
 
 
 
 
 
 
 
Adjusted weighted-average shares outstanding
 

 
 

 
283.7

 
291.2

 
 
 
 
 
 
 
 
Earnings per share
$
2.52

 
$
1.72

 
$
2.50

 
$
1.71

 
 
 
 
 
 
 
 
 
Basic
 
Diluted
 
First Six Months
 
2018
 
2017
 
2018
 
2017
 
($ in millions, except per share amounts,
shares in millions)
 
 
 
 
 
 
 
 
Net income
$
1,262

 
$
930

 
$
1,262

 
$
930

Dividend equivalent payments
(2
)
 
(2
)
 
(1
)
 
(1
)
 
 
 
 
 
 
 
 
Income available to common stockholders
$
1,260

 
$
928

 
$
1,261

 
$
929

 
 
 
 
 
 
 
 
Weighted-average shares outstanding
282.4

 
289.6

 
282.4

 
289.6

Dilutive effect of outstanding options
 
 
 
 
 
 
 
and share-settled awards
 
 
 
 
2.4

 
2.4

 
 
 
 
 
 
 
 
Adjusted weighted-average shares outstanding
 
 
 
 
284.8

 
292.0

 
 
 
 
 
 
 
 
Earnings per share
$
4.46

 
$
3.20

 
$
4.43

 
$
3.18



During the second quarters and first six months of 2018 and 2017, dividend equivalent payments were made to 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. The dilution calculations exclude options having exercise prices exceeding the average market price of Common Stock of zero and 0.5 million for the first six months ended June 30, 2018 and 2017, respectively.