Earnings per share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings per share

Earnings per share

The computation of basic earnings per share (EPS) is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which include principally shares that may be issued under: our stock option, restricted stock and performance unit awards, determined using the treasury stock method; and our convertible notes and warrants while outstanding (collectively “dilutive securities”). For further information regarding our convertible notes and warrants, see Note 14, Financing arrangements.

The computation for basic and diluted EPS was as follows (in millions, except per share data):

	2013		2012		2011
Income (Numerator):
Net income for basic and diluted EPS	$	5,081	$	4,345	$	3,683
Shares (Denominator):
Weighted-average shares for basic EPS	753		775		905
Effect of dilutive securities	12		12		7
Weighted-average shares for diluted EPS	765		787		912
Basic EPS	$	6.75	$	5.61	$	4.07
Diluted EPS	$	6.64	$	5.52	$	4.04

For the year ended December 31, 2013, the number of anti-dilutive employee stock-based awards excluded from the computation of diluted EPS was not significant. For the years ended December 31, 2012 and 2011, there were employee stock-based awards, calculated on a weighted-average basis, to acquire 6 million and 33 million shares of our common stock, respectively, that are not included in the computation of diluted EPS because their impact would have been anti-dilutive.