Increase (decrease) in income tax expense/benefit, amount

[Table of Contents](#i6f5a02f7aeae4b00b01c55901eb4a1a5_4)9.    Income TaxesThe following table presents the calculation of the Company's effective income tax rate (dollars in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  |  | For the Three Months Ended March 31, |
|   |  |  |  |  | 2022 |  | 2021 |
| Income before income taxes |  |  |  |  | $ | 1,618  |  |  | $ | 2,079  |  |
| Income tax expense |  |  |  |  | $ | 376  |  |  | $ | 486  |  |
| Effective income tax rate |  |  |  |  | 23.3  | % |  | 23.4  | % |
|  |  |  |  |  |  |  |  |

Income tax expense decreased $110 million for the three months ended March 31, 2022, as compared to the same period in 2021 due to a decrease in pretax income. The effective tax rate was relatively flat for the three months ended March 31, 2022 as compared to the same period in 2021.The Company is subject to examination by the Internal Revenue Service ("IRS") and tax authorities in various state, local and foreign tax jurisdictions. The IRS is examining the Company's 2018 federal income tax filings. The Company regularly assesses the likelihood of additional assessments or settlements in each of the taxing jurisdictions. At this time, the potential change in unrecognized tax benefits is expected to be immaterial over the next 12 months. The Company believes that its reserves are sufficient to cover any tax, penalties and interest that would result from such examinations.10.    Earnings Per Share The following table presents the calculation of basic and diluted earnings per share ("EPS") (dollars and shares in millions, except per share amounts):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  |  | For the Three Months Ended March 31, |
|   |  |  |  |  | 2022 |  | 2021 |
| Numerator |  |  |  |  |  |  |  |
| Net income |  |  |  |  | $ | 1,242  |  |  | $ | 1,593  |  |
| Preferred stock dividends |  |  |  |  | (31) |  |  | (39) |  |
| Net income available to common stockholders |  |  |  |  | 1,211  |  |  | 1,554  |  |
| Income allocated to participating securities |  |  |  |  | (6) |  |  | (8) |  |
| Net income allocated to common stockholders |  |  |  |  | $ | 1,205  |  |  | $ | 1,546  |  |
| Denominator |  |  |  |  |  |  |  |
| Weighted-average shares of common stock outstanding |  |  |  |  | 285  |  |  | 307  |  |
|  |  |  |  |  |  |  |  |
| Weighted-average shares of common stock outstanding and common stock equivalents |  |  |  |  | 285  |  |  | 307  |  |
|  |  |  |  |  |  |  |  |
| Basic earnings per common share |  |  |  |  | $ | 4.23  |  |  | $ | 5.04  |  |
| Diluted earnings per common share |  |  |  |  | $ | 4.22  |  |  | $ | 5.04  |  |
|  |  |  |  |  |  |  |  |

Anti-dilutive securities were not material and had no impact on the computation of diluted EPS for the three months ended March 31, 2022 and 2021.21
