Note 6 – Earnings Per Share
Accounting Policy. The Company computes basic earnings per share using the weighted-average number of unrestricted common and deferred shares outstanding. Diluted earnings per share also includes the dilutive effect of outstanding employee stock options and restricted stock using the treasury stock method and the effect of strategic performance shares.
Basic and diluted earnings per share were computed as follows:
For the Years Ended December 31,
202520242023
(Shares in thousands, dollars in millions, except per share amounts)BasicEffect of
Dilution
DilutedBasicEffect of
Dilution
DilutedBasicEffect of
Dilution
Diluted
Shareholders' net income
$5,957 $5,957 $3,434 $3,434 $5,164 $5,164 
Shares:
Weighted average266,744 266,744 280,294 280,294 293,892 293,892 
Common stock equivalents1,819 1,819 2,924 2,924 2,990 2,990 
Total shares266,744 1,819 268,563 280,294 2,924 283,218 293,892 2,990 296,882 
Earnings per share$22.33 $(0.15)$22.18 $12.25 $(0.13)$12.12 $17.57 $(0.18)$17.39 
The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive:
For the Years Ended December 31,
(In millions)202520242023
Anti-dilutive options2.0 1.1 0.9 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 27, 2020
2018Feb 28, 2019

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.