EX-11 2 a05-12302_4ex11.htm EX-11

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

June 30, 2005

 

June 30, 2004

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,603,877,175

 

1,679,587,661

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

20,098,250

 

25,947,385

 

Add - Incremental shares associated with convertible notes

 

3,852,456

 

4,343,394

 

Add- Incremental shares associated with contingently issuable shares

 

68,263

 

1,444,082

 

Number of shares on which diluted earnings per share is calculated

 

1,627,896,144

 

1,711,322,522

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,851

 

$

1,737

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

22

 

2

 

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

 

$

1,829

 

$

1,735

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,851

 

$

1,737

 

 

 

 

 

 

 

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

 

1

 

—

 

 

 

 

 

 

 

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

 

1,850

 

1,737

 

 

 

 

 

 

 

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

 

22

 

2

 

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

 

$

1,828

 

$

1,735

 

 

69


 

 

 

For The Three Months Ended

 

 

 

June 30, 2005

 

June 30, 2004

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.14

 

$

1.01

 

Discontinued operations

 

(0.01

)

(0.00

)

Total

 

$

1.12

*

$

1.01

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

1.15

 

$

1.03

 

Discontinued operations

 

(0.01

)

(0.00

)

Total

 

$

1.14

 

$

1.03

 

 

* Does not total due to rounding.

 

Stock options to purchase 193,648,084 shares and 132,003,176 shares were outstanding as of June 30, 2005 and 2004, 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.

 

70


 

 

 

For The Six Months Ended

 

 

 

June 30, 2005

 

June 30, 2004

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,616,274,888

 

1,685,637,046

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

23,985,451

 

27,975,936

 

Add - Incremental shares associated with convertible notes

 

3,876,645

 

4,358,401

 

Add- Incremental shares associated with contingently issuable shares

 

91,989

 

1,386,027

 

 

 

 

 

 

 

Number of shares on which diluted earnings per share is calculated

 

1,644,228,973

 

1,719,357,410

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

3,258

 

$

3,101

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

27

 

3

 

 

 

 

 

 

 

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

 

$

3,231

 

$

3,098

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

3,258

 

$

3,101

 

 

 

 

 

 

 

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

 

2

 

—

 

 

 

 

 

 

 

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

 

3,256

 

3,101

 

 

 

 

 

 

 

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

 

27

 

3

 

 

 

 

 

 

 

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

 

$

3,229

 

$

3,098

 

 

71


 

 

 

For The Six Months Ended

 

 

 

June 30, 2005

 

June 30, 2004

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.98

 

$

1.80

 

Discontinued operations

 

(0.02

)

(0.00

)

Total

 

$

1.96

 

$

1.80

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

2.02

 

$

1.84

 

Discontinued operations

 

(0.02

)

(0.00

)

Total

 

$

2.00

 

$

1.84

 

 

* Does not total due to rounding.

 

Stock options to purchase 169,191,287 shares and 128,880,949 shares were outstanding as of June 30, 2005 and 2004, 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.

 

72