EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2023

EARNINGS PER COMMON SHAREBasic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if options granted under various share-based compensation plans were exercised resulting in the issuance of common shares that would participate in the earnings of the entity.

Net income (loss) per common share has been computed as per below, based upon weighted average common basic and dilutive shares outstanding.


	Three Months Ended March 31,
(Dollars in millions, except per share amounts)		2023			2022
Net income (loss) per share:
Numerator
Net income (loss)		$	365		$	298
Less: dividends declared-common shares and unvested common shares		(65)			(61)
Undistributed earnings		300			237
Percentage allocated to common shareholders (1)		98.7		%	98.7		%
		296			234
Add: dividends declared-common shareholders		64			60
Numerator for basic and diluted earnings per common share		$	360		$	294

Denominator
Denominator for basic earnings per weighted-average common shares		38.7			38.8
Effect of dilutive securities:
Options		—			—
Denominator for diluted earnings per adjusted weighted-average common shares		38.7			38.8

Per common share net income (loss)
Basic		$	9.31		$	7.57
Diluted		$	9.31		$	7.56

(1) Basic weighted-average common shares outstanding		38.7			38.8
Basic weighted-average common shares outstanding and unvested common shares expected to vest		39.2			39.3
Percentage allocated to common shareholders		98.7		%	98.7		%

(Some amounts may not reconcile due to rounding.)

There were no options outstanding as of March 31, 2023. Options granted under share-based compensation plans have all expired as of September 19, 2022.