Earnings Per Common Share

12 Months Ended

Dec. 31, 2020

Note 21.

Earnings Per Common Share

Basic earnings per common share (EPS) is calculated by dividing net earnings to common by the weighted average number of common shares outstanding and restricted stock units (RSUs) for which the delivery of the underlying common stock is not subject to satisfaction of future service or performance conditions (collectively, basic shares). Diluted EPS includes the determinants of basic EPS and, in addition, reflects the dilutive effect of the common stock deliverable for stock options and for RSUs for which the delivery of the underlying common stock is subject to satisfaction of future service or performance conditions.

The table below presents information about basic and diluted EPS.



	Year Ended December

in millions, except per share amounts		2020	2019	2018
Net earnings to common		$8,915	$7,897	$9,860
Weighted average basic shares		356.4	371.6	385.4
Effect of dilutive securities:
RSUs		3.9	3.9	3.9
Stock options		–	–	0.9
Dilutive securities		3.9	3.9	4.8
Weighted average diluted shares		360.3	375.5	390.2
Basic EPS		$24.94	$21.18	$25.53
Diluted EPS		$24.74	$21.03	$25.27

In the table above:

•

Net earnings to common represents net earnings applicable to common shareholders, which is calculated as net earnings less preferred stock dividends.

•

Unvested share-based awards that have

non-forfeitable

rights to dividends or dividend equivalents are treated as a separate class of securities under the

two-class

method. Distributed earnings allocated to these securities reduce net earnings to common to calculate EPS under this method. The impact of applying this methodology was a reduction in basic EPS of $0.07 for both 2020 and 2019, and $0.05 for 2018.

•

Diluted EPS does not include antidilutive RSUs of 0.1 million for both 2020 and 2019, and less than 0.1 million for 2018.