| EARNINGS PER COMMON SHARE Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if options granted under various share-based compensation plans were exercised resulting in the issuance of common shares that would participate in the earnings of the entity. Net income (loss) per common share has been computed as shown below, based upon weighted average common basic and dilutive shares outstanding. | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in millions, except per share amounts) | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Net income (loss) per share: | | | | | | | | | Numerator | | | | | | | | | Net income (loss) | $ | 559 | | $ | 680 | | $ | 1,213 | | $ | 890 | | Less: dividends declared - common shares and unvested common shares | (78) | | (84) | | (158) | | (169) | | Undistributed earnings | 481 | | 596 | | 1,055 | | 721 | Percentage allocated to common shareholders (1) | 98.7% | | 98.8% | | 98.7% | | 98.8% | | 475 | | 589 | | 1,041 | | 713 | | Add: dividends declared - common shareholders | 77 | | 83 | | 156 | | 167 | | Numerator for basic and diluted earnings per common share | $ | 552 | | $ | 672 | | $ | 1,197 | | $ | 880 | | | | | | | | | | Denominator | | | | | | | | | Denominator for basic earnings per weighted-average common shares | 38.8 | | 41.8 | | 39.3 | | 42.0 | | Effect of dilutive securities: | | | | | | | | | Employee Stock Purchase Plan Offering | — | | — | | — | | — | | Denominator for diluted earnings per adjusted weighted-average common shares | 38.8 | | 41.8 | | 39.3 | | 42.0 | | | | | | | | | | Per common share net income (loss) | | | | | | | | | Basic | $ | 14.22 | | $ | 16.10 | | $ | 30.45 | | $ | 20.93 | | Diluted | $ | 14.22 | | $ | 16.10 | | $ | 30.45 | | $ | 20.93 | | | | | | | | | (1) Basic weighted - average common shares outstanding | 38.8 | | 41.8 | | 39.3 | | 42.0 | | Basic weighted - average common shares outstanding and unvested common shares expected to vest | 39.4 | | 42.3 | | 39.8 | | 42.5 | | Percentage allocated to common shareholders | 98.7% | | 98.8% | | 98.7% | | 98.8% |
(Some amounts may not reconcile due to rounding.) The ESPP Offering has a weighted average dilutive effect of 810 shares and 1,304 shares for the three and six months ended June 30, 2026, respectively, based upon the outstanding rights to purchase shares through the ESPP offering purchase date.
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