# What earnings should be used to compute EPS?

https://sec.report/Document/0000109380-21-000192/

In the CONSOLIDATED STATEMENTS OF INCOME above,

• Net earnings applicable to common shareholders: 314
• Basic shares (in thousands): 163,551
• Net earnings per common share: 1.90

But this does not result in the correct EPS.

314/163.551 = 1.91989

According the table 13. NET EARNINGS PER COMMON SHARE, the following calculation of EPS is about right.

• Total earnings applicable to common shares: 312
• Weighted average common shares outstanding (in thousands): 163,551

312/163.551 = 1.907662

I don't quite understand why the Total earnings and the net earnings are not the same. Could anybody help me understand the discrepancy?

• You should definitely be dividing not by "Weighted average common shares outstanding during the period: Basic shares", but rather by "Weighted average common shares outstanding during the period: Diluted shares". However here it makes no difference: 1.9198904 versus 1.9159543, still not 1.90. I don't know, maybe they rounded the penny off? :) Aug 24 at 4:21