EX-11 2 0002.txt STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS EXHIBIT 11 COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (UNAUDITED)
For Quarter Ended ---------------------------------------- September 30, 2000 September 30, 1999 ------------------ ------------------ Number of shares on which basic earnings per share is calculated: Average shares outstanding during period 1,758,139,220 1,805,214,582 Add - Incremental shares under stock compensation plans 48,576,513 60,953,163 Add - Incremental shares associated with contingently issuable shares 3,075,978 3,447,351 --------------- --------------- Number of shares on which diluted earnings per share is calculated 1,809,791,711 1,869,615,096 =============== =============== Net income applicable to common shareholders (millions) $ 1,958 $ 1,757 Less- net income applicable to contingently issuable shares (millions) (2) 12 --------------- --------------- Net income on which diluted earnings per share is calculated (millions) $ 1,960 $ 1,745 =============== =============== Diluted earnings per share $ 1.08 $ 0.93 Basic earnings per share $ 1.11 $ 0.97
Stock options to purchase 26,387,801 shares and 22,701,344 shares were outstanding as of September 30, 2000 and 1999, respectively, but were not included in the computation of diluted earnings because the options' exercise price was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive. Net income applicable to common shareholders excludes preferred stock dividends of $5 million for the three months ended September 30, 2000 and 1999. - 22 - COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE - (continued) (UNAUDITED)
For Nine Months Ended ---------------------------------------- September 30, 2000 September 30, 1999 ------------------ ------------------ Number of shares on which basic earnings per share is calculated: Average shares outstanding during period 1,767,648,237 1,813,707,108 Add - Incremental shares under stock compensation plans 49,501,729 61,009,102 Add - Incremental shares associated with contingently issuable shares 2,131,485 0 -------------- -------------- Number of shares on which diluted earnings per share is calculated 1,819,281,451 1,874,716,210 ============== ============== Net income applicable to common shareholders (millions) $ 5,408 $ 5,608 Less - net income applicable to contingently issuable shares (millions) 7 0 -------------- -------------- Net income on which diluted earnings per share is calculated (millions) $ 5,401 $ 5,608 ============== ============== Earnings per share of common stock - assuming dilution $ 2.97 $ 2.99 Earnings per share of common stock - basic $ 3.06 $ 3.09
Stock options to purchase 25,157,800 shares as of September 30, 2000 and 23,165,081 shares as of September 30, 1999 were outstanding, but were not included in the computation of diluted earnings because the options' exercise price was greater than the average market price of the common shares, and therefore, the effect would have been antidilutive. In addition, 3,215,252 restricted stock units as of September 30, 1999 relating to the company's Long-Term Performance Plan were not included in the computation of diluted earnings as their effect would have been antidilutive. Net income applicable to common shareholders excludes preferred stock dividends of $15 million for the nine months ended September 30, 2000 and 1999. - 23 -