EX-11 2 ibm13q3_ex11.htm EX-11  

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

September 30, 2013

 

September 30, 2012

Number of shares on which basic earnings per share is calculated:

 

 

 

 

 

  Weighted-average shares outstanding during period

 

 1,090,922,993 

 

 

 1,137,210,659 

    Add – Incremental shares under stock-based compensation plans

 

 5,933,962 

 

 

 9,926,347 

    Add – Incremental shares associated with contingently issuable shares

 

 1,921,024 

 

 

 2,161,886 

  Number of shares on which diluted earnings per share is calculated

 

 1,098,777,979 

 

 

 1,149,298,892 

 

 

 

 

 

 

Net income on which basic earnings per share is calculated (millions)

$

 4,041 

 

$

 3,824 

 

 

 

 

 

 

Less – net income applicable to contingently issuable shares (millions)

 

                           ─

 

 

                           ─

 

 

 

 

 

 

Net income on which diluted earnings per share is calculated (millions)

$

 4,041 

 

$

 3,824 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

  Assuming dilution

$

 3.68 

 

$

 3.33 

 

 

 

 

 

 

  Basic

$

 3.70 

 

$

 3.36 

 

 

 

 

 

 

       Stock options to purchase 3,187 shares were outstanding as of September 30, 2013, but were not included in the

computation of diluted earnings per share because the options' exercise price during the period was greater than the average

market price of the common shares, and, therefore, the effect would have been antidilutive. There were no stock options

outstanding as of September 30, 2012 that were considered antidilutive.

 

 

 

 

 

 

 

85 

 

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

  

 

For the Nine Months Ended

  

 

September 30, 2013

 

September 30, 2012

  

Number of shares on which basic earnings per share is calculated:

 

 

 

 

 

  

  Weighted-average shares outstanding during period

 

 1,101,830,931 

 

 

 1,148,447,527 

  

    Add – Incremental shares under stock compensation plans

 

 7,206,259 

 

 

 11,449,689 

  

    Add – Incremental shares associated with contingently issuable shares

 

 1,696,834 

 

 

 1,908,649 

  

  Number of shares on which diluted earnings per share is calculated

 

 1,110,734,023 

 

 

 1,161,805,865 

  

 

 

 

 

 

 

  

Net income on which basic earnings per share is calculated (millions)

$

 10,299 

 

$

 10,771 

  

 

 

 

 

 

 

  

Less – net income applicable to contingently issuable shares (millions)

 

 1 

 

 

 (1) 

  

 

 

 

 

 

 

  

Net income on which diluted earnings per share is calculated (millions)

$

 10,298 

 

$

 10,771 

  

 

 

 

 

 

 

  

Earnings per share of common stock:

 

 

 

 

 

  

 

 

 

 

 

 

  

  Assuming dilution

$

 9.27 

 

$

 9.27 

  

 

 

 

 

 

 

  

  Basic

$

 9.35 

 

$

 9.38 

  

 

 

 

 

 

 

  

       Stock options to purchase 1,062 shares (average of first, second and third quarter share amounts) were outstanding as

 

of September 30, 2013, but were not included in the computation of diluted earnings per share because the options' exercise

  

price during the third quarter was greater than the average market price of the common shares, and, therefore, the effect

 

would have been antidilutive.  There were no stock options outstanding as of September 30, 2012 that were considered

  

antidilutive.

  

 

 

 

 

 

 

  

 

86