EX-11 6 a04-5397_1ex11.htm EX-11

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

March 31, 2004

 

March 31, 2003

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,691,686,431

 

1,725,338,543

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

32,672,456

 

27,711,303

 

Add - Incremental shares associated with convertible notes

 

4,373,407

 

4,764,543

 

Add- Incremental shares associated with contingently issuable shares

 

1,327,970

 

679,175

 

 

 

 

 

 

 

Number of shares on which diluted earnings per share is calculated

 

1,730,060,264

 

1,758,493,564

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,603

 

$

1,387

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

1

 

3

 

 

 

 

 

 

 

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

 

$

1,602

 

$

1,384

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,603

 

$

1,387

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

Income from continuing operations on which diluted earnings per share is calculated (millions)

 

1,603

 

1,387

 

 

 

 

 

 

 

Loss from discontinued operations on which basic and diluted earnings per share is calculated (millions)

 

1

 

3

 

 

 

 

 

 

 

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

 

$

1,602

 

$

1,384

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

0.93

 

$

0.79

 

Discontinued operations

 

0.00

 

0.00

 

Total

 

$

0.93

 

$

0.79

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

0.95

 

$

0.80

 

Discontinued operations

 

0.00

 

0.00

 

Total

 

$

0.95

 

$

0.80

 

 

1

 

Stock options to purchase 125,758,722 shares and 128,150,388 shares were outstanding as of March 31, 2004 and 2003, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise price during the respective periods was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive.

 

2