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 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 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.
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Three Months Ended September |
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Nine Months Ended September |
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in millions, except per share amounts |
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2020 |
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2020 |
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$3,233 |
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$4,553 |
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Weighted average basic shares |
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355.9 |
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356.5 |
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Effect of dilutive RSUs |
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4.0 |
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3.5 |
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Weighted average diluted shares |
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359.9 |
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360.0 |
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$ 9.07 |
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$12.71 |
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$ 8.98 |
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$12.65 |
| In the table above:
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Net earnings to common represents net earnings applicable to common shareholders, which is calculated as net earnings less preferred stock dividends. |
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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 $0.03 for the three months ended September 2021, $0.01 for the three months ended September 2020, $0.07 for the nine months ended September 2021 and $0.06 for the nine months ended September 2020. |
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Diluted EPS does not include antidilutive RSUs of approximately 0.1 million for each of the three months ended September 2021, three months ended September 2020 and nine months ended September 2020, and approximately 0.2 million for the nine months ended September 2021. |
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