Earnings Per Common Share

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
(Dollars and shares in millions, except per share data)	2021		2020		2021		2020
Income from continuing operations, net of tax	$	3,104	$	2,406	$	9,968	$	149
Loss from discontinued operations, net of tax	0		0		(3)		(1)
Net income	3,104		2,406		9,965		148
Dividends and undistributed earnings allocated to participating securities	(26)		(20)		(84)		(5)
Preferred stock dividends	(79)		(67)		(200)		(212)
Issuance cost for redeemed preferred stock	(12)		0		(12)		(22)
Net income (loss) available to common stockholders	$	2,987	$	2,319	$	9,669	$	(91)

Total weighted-average basic common shares outstanding	438.8		457.8		449.2		457.4
Effect of dilutive securities:(1)
Stock options	0.6		0.4		0.7		0.0
Other contingently issuable shares	1.1		0.3		1.0		0.0
Total effect of dilutive securities	1.7		0.7		1.7		0.0
Total weighted-average diluted common shares outstanding	440.5		458.5		450.9		457.4
Basic earnings per common share:
Net income (loss) from continuing operations	$	6.81	$	5.07	$	21.53	$	(0.20)
Income (loss) from discontinued operations	0.00		0.00		(0.01)		0.00
Net income (loss) per basic common share	$	6.81	$	5.07	$	21.52	$	(0.20)
Diluted earnings per common share:(1)
Net income (loss) from continuing operations	$	6.78	$	5.06	$	21.45	$	(0.20)
Income (loss) from discontinued operations	0.00		0.00		(0.01)		0.00
Net income (loss) per diluted common share	$	6.78	$	5.06	$	21.44	$	(0.20)

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(1)Excluded from the computation of diluted earnings per share were awards of 34 thousand shares for the nine months ended September 30, 2021, and 774 thousand shares related to options with an exercise price ranging from $70.96 to $86.34 for the three months ended September 30, 2020, respectively, 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, for the nine months ended September 30, 2020, awards of 762 thousand shares and options of 2.7 million shares with an exercise price ranging from $36.55 to $86.34 were excluded from the computation of diluted earnings per share.