Earnings Per Share

3 Months Ended

Mar. 31, 2023

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


	Basic				Diluted
	First Quarter
	2023		2022		2023		2022
	($ in millions, except per share amounts, shares in millions)

Net income	$	466	$	703	$	466	$	703
Dividend equivalent payments	(1)		—		—		—

Income available to common stockholders	$	465	$	703	$	466	$	703

Weighted-average shares outstanding	227.7		239.3		227.7		239.3
Dilutive effect of outstanding options and share-settled awards					0.6		0.9
Adjusted weighted-average shares outstanding					228.3		240.2

Earnings per share	$	2.04	$	2.94	$	2.04	$	2.93

During the first quarters of 2023 and 2022, dividend equivalent payments were made to certain 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 as follows: 0.1 million in both the first quarters ended March 31, 2023 and 2022.