Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

v3.19.3
EARNINGS PER SHARE
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
Basic earnings per share is the amount of earnings (adjusted for dividends declared on preferred stock) available to each share of common stock outstanding during the reporting period. Diluted earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for stock options, restricted stock units and awards, and distributions from deferred compensation plans. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive.
For the nine months ended September 30, 2018, total diluted average common shares issued and outstanding was impacted by using the if-converted method. The calculation of basic and diluted earnings per share for the three and nine-month periods ended September 30, 2019 and 2018 was as follows:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in millions, except per share data, share count in thousands)
2019
 
2018
 
2019
 
2018
Basic earnings per common share:
 
 
 
 
 
 
 
Net income
$
372

 
$
378

 
$
1,094

 
$
1,059

Preferred stock dividends
(18
)
 
(18
)
 
(55
)
 
(51
)
Net income available to common shareholders
$
354

 
$
360

 
$
1,039

 
$
1,008

Average common shares issued and outstanding
1,034,940

 
1,084,536

 
1,042,246

 
1,090,570

Basic earnings per common share
$
0.34

 
$
0.33

 
$
1.00

 
$
0.92

Diluted earnings per common share:
 
 
 
 
 
 
 
Dilutive potential common shares:
 
 
 
 
 
 
 
Stock options and restricted stock units and awards
11,930

 
15,655

 
12,681

 
17,105

Shares held in deferred compensation plans
4,403

 
3,549

 
4,137

 
3,416

Dilutive impact of Preferred Stock
—

 
—

 
—

 
5,887

Dilutive potential common shares
16,333

 
19,204

 
16,818

 
26,408

Total diluted average common shares issued and outstanding
1,051,273

 
1,103,740

 
1,059,064

 
1,116,978

Diluted earnings per common share
$
0.34

 
$
0.33

 
$
0.98

 
$
0.90

Anti-dilutive awards (1)
6,253

 
1,616

 
4,900

 
2,035


(1)
Reflects the total number of shares related to outstanding options that have been excluded from the computation of diluted earnings per share because the impact would have been anti-dilutive.