EX-11 2 ibm14q2_ex11.htm EX-11  

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

June 30, 2014

 

June 30, 2013

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

 

 

 

 

 

  Weighted-average shares outstanding during period

 

 999,637,745 

 

 

 1,100,895,416 

    Add – Incremental shares under stock-based compensation plans

 

 4,102,729 

 

 

 6,812,301 

    Add – Incremental shares associated with contingently issuable shares

 

 1,407,821 

 

 

 1,721,200 

  Number of shares on which diluted earnings per share is calculated

 

 1,005,148,295 

 

 

 1,109,428,918 

 

 

 

 

 

 

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

$

 4,137 

 

$

 3,226 

 

 

 

 

 

 

Net income applicable to contingently issuable shares (millions)

 

0

 

 

 (1) 

 

 

 

 

 

 

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

$

 4,136 

 

$

 3,225 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

  Assuming dilution

$

 4.12 

 

$

 2.91 

 

 

 

 

 

 

  Basic

$

 4.14 

 

$

 2.93 

 

 

 

 

 

 

       Stock options to purchase 3,477 shares were outstanding as of June 30, 2014, 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 June 30, 2013 that were considered antidilutive.

 

 

 

 

 

 

88 

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

 

For the Six Months Ended

 

June 30, 2014

 

June 30, 2013

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

 

 

 

 

 

  Weighted-average shares outstanding during period

 

 1,017,425,656 

 

 

 1,107,284,900 

    Add – Incremental shares under stock compensation plans

 

 4,768,022 

 

 

 7,842,407 

    Add – Incremental shares associated with contingently issuable shares

 

 1,265,544 

 

 

 1,584,738 

  Number of shares on which diluted earnings per share is calculated

 

 1,023,459,222 

 

 

 1,116,712,046 

 

 

 

 

 

 

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

$

 6,521 

 

$

 6,258 

 

 

 

 

 

 

Net income applicable to contingently issuable shares (millions)

 

0

 

 

 (1) 

 

 

 

 

 

 

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

$

 6,521 

 

$

 6,257 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

  Assuming dilution

$

 6.37 

 

$

 5.60 

 

 

 

 

 

 

  Basic

$

 6.41 

 

$

 5.65 

 

 

 

 

 

 

       Stock options to purchase 11,303 shares (average of first and second quarter share amounts) were outstanding as of

June 30, 2014, but were not included in the computation of diluted earnings per share because the options' exercise price

during the second 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 June 30, 2013 that were considered antidilutive.

 

 

 

 

 

 

 

89