WILLIAMS COMPANIES, INC. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (Dollars in millions, except per-share amounts; shares in thousands) | |||||||||||||||||
Income (loss) from continuing operations available to common stockholders | $ | 1,514 | $ | 208 | $ | 862 | |||||||||||
| Basic weighted-average shares | 1,215,221 | 1,213,631 | 1,212,037 | ||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||
Nonvested restricted stock units | 2,973 | 1,531 | 1,811 | ||||||||||||||
Stock options | 21 | 3 | 163 | ||||||||||||||
| Diluted weighted-average shares | 1,218,215 | 1,215,165 | 1,214,011 | ||||||||||||||
Earnings (loss) per common share from continuing operations: | |||||||||||||||||
Basic | $ | 1.25 | $ | .17 | $ | .71 | |||||||||||
Diluted | $ | 1.24 | $ | .17 | $ | .71 | |||||||||||
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.