Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Computation of Basic and Diluted 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)	2020			2019
Income (loss) from continuing operations, net of tax	$	(1,340	)	$	1,410
Income from discontinued operations, net of tax	0			2
Net income (loss)	(1,340		)	1,412
Dividends and undistributed earnings allocated to participating securities	(3		)	(12		)
Preferred stock dividends	(55		)	(52		)
Issuance cost for redeemed preferred stock	(22		)	0
Net income (loss) available to common stockholders	$	(1,420	)	$	1,348

Total weighted-average basic shares outstanding	457.6			469.4
Effect of dilutive securities:⁽¹⁾
Stock options	0.0			1.1
Other contingently issuable shares	0.0			1.1
Total effect of dilutive securities	0.0			2.2
Total weighted-average diluted shares outstanding	457.6			471.6
Basic earnings per common share:
Net income (loss) from continuing operations	$	(3.10	)	$	2.87
Net income (loss) per basic common share	$	(3.10	)	$	2.87
Diluted earnings per common share:⁽¹⁾
Net income (loss) from continuing operations	$	(3.10	)	$	2.86
Net income (loss) per diluted common share	$	(3.10	)	$	2.86

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⁽¹⁾

In periods of net loss, 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 for the three months ended March 31, 2020. For the three months ended March 31, 2019, 275 thousand shares related to options with an exercise price of $86.34 were excluded from the computation of diluted earnings per share, because their inclusion would be anti-dilutive.