Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
(Dollars and shares in millions, except per share data)	2020		2019		2020		2019
Income from continuing operations, net of tax	$	2,406	$	1,329	$	149	$	4,355
Income (loss) from discontinued operations, net of tax	0		4		(1)		15
Net income	2,406		1,333		148		4,370
Dividends and undistributed earnings allocated to participating securities	(20)		(10)		(5)		(34)
Preferred stock dividends	(67)		(53)		(212)		(185)
Issuance cost for redeemed preferred stock	0		0		(22)		0
Net income (loss) available to common stockholders	$	2,319	$	1,270	$	(91)	$	4,151

Total weighted-average basic common shares outstanding	457.8		469.5		457.4		469.9
Effect of dilutive securities:(1)
Stock options	0.4		1.3		0.0		1.2
Other contingently issuable shares	0.3		1.0		0.0		1.0

Total effect of dilutive securities	0.7		2.3		0.0		2.2
Total weighted-average diluted common shares outstanding	458.5		471.8		457.4		472.1
Basic earnings per common share:
Net income (loss) from continuing operations	$	5.07	$	2.70	$	(0.20)	$	8.80
Income from discontinued operations	0.00		0.01		0.00		0.03
Net income (loss) per basic common share	$	5.07	$	2.71	$	(0.20)	$	8.83
Diluted earnings per common share:(1)
Net income (loss) from continuing operations	$	5.06	$	2.68	$	(0.20)	$	8.76
Income from discontinued operations	0.00		0.01		0.00		0.03
Net income (loss) per diluted common share	$	5.06	$	2.69	$	(0.20)	$	8.79

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(1)Excluded from the computation of diluted earnings per share were 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, 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 762 thousand shares and options of 2.7 million shares with an exercise price ranging from $36.55 to $86.34 were excluded for the nine months ended September 30, 2020. For the nine months ended September 30, 2019, 92 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.