EX-11 3 a04-7971_1ex11.htm EX-11

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

June 30, 2004

 

June 30, 2003

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,679,587,661

 

1,729,821,815

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

28,042,848

 

29,145,210

 

Add - Incremental shares associated with convertible notes

 

4,343 ,394

 

4,764,543

 

Add- Incremental shares associated with contingently issuable shares

 

1,444,082

 

—

 

 

 

 

 

 

 

Number of shares on which diluted earnings per share is calculated

 

1,713,417,985

 

1,763,731,568

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,990

 

$

1,725

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

2

 

20

 

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

 

$

1,988

 

$

1,705

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,990

 

$

1,725

 

 

 

 

 

 

 

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

 

3

 

—

 

 

 

 

 

 

 

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

 

1,987

 

1,725

 

 

 

 

 

 

 

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

 

2

 

20

 

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

 

$

1,985

 

$

1,705

 

 

1

 

 

 

For The Three Months Ended

 

 

 

June 30, 2004

 

June 30, 2003

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.16

 

$

0.98

 

Discontinued operations

 

(0.00

)

(0.01

)

Total

 

$

1.16

 

$

0.97

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

1.18

 

$

1.00

 

Discontinued operations

 

(0.00

)

(0.01

)

Total

 

$

1.18

 

$

0.99

 

 

Stock options to purchase 132,003,176 shares and 127,083,620 shares were outstanding as of June 30, 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

 

 

 

For The Six Months Ended

 

 

 

June 30, 2004

 

June 30, 2003

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,685,637,046

 

1,727,580,179

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

30,357,654

 

28,428,256

 

Add - Incremental shares associated with convertible notes

 

4,358,401

 

4,764,543

 

Add- Incremental shares associated with contingently issuable shares

 

1,386,027

 

339,588

 

 

 

 

 

 

 

Number of shares on which diluted earnings per share is calculated

 

1,721,739,128

 

1,761,112,566

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

3,593

 

$

3,112

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

3

 

23

 

 

 

 

 

 

 

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

 

$

3,590

 

$

3,089

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

3,593

 

$

3,112

 

 

 

 

 

 

 

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

 

3

 

—

 

 

 

 

 

 

 

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

 

3,590

 

3,112

 

 

 

 

 

 

 

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

 

3

 

23

 

 

 

 

 

 

 

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

 

$

3,587

 

$

3,089

 

 

3

 

 

 

For The Six Months Ended

 

 

 

June 30, 2004

 

June 30, 2003

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

2.09

 

$

1.77

 

Discontinued operations

 

(0.00

)

(0.01

)

Total

 

$

2.08

*

$

1.75

*

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

2.13

 

$

1.80

 

Discontinued operations

 

(0.00

)

(0.01

)

Total

 

$

2.13

 

$

1.79

 

 

* Does not total due to rounding.

 

Stock options to purchase 128,880,949 shares and 127,617,004 shares were outstanding as of June 30, 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.

 

4