EX-11 2 a05-17893_1ex11.htm EX-11

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

September 30, 2005

 

September 30, 2004

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,591,293,494

 

1,669,559,399

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

22,124,467

 

22,650,974

 

Add - Incremental shares associated with convertible notes

 

3,819,658

 

4,332,853

 

Add- Incremental shares associated with contingently issuable shares

 

—

 

1,604,059

 

Number of shares on which diluted earnings per share is calculated

 

1,617,237,619

 

1,698,147,285

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,516

 

$

1,554

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

—

 

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

 

$

1,516

 

$

1,554

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,516

 

$

1,554

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

1,516

 

1,554

 

 

 

 

 

 

 

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

 

—

 

—

 

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

 

$

1,516

 

$

1,554

 

 

71


 

 

 

For The Three Months Ended

 

 

 

September 30, 2005

 

September 30, 2004

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

0.94

 

$

0.92

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

0.94

 

$

0.92

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

0.95

 

$

0.93

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

0.95

 

$

0.93

 

 

Stock options to purchase 172,117,119 shares and 142,515,667 shares were outstanding as of September 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


 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Nine Months Ended

 

 

 

September 30, 2005

 

September 30, 2004

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,607,947,757

 

1,680,277,830

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

23,365,123

 

26,200,949

 

Add - Incremental shares associated with convertible notes

 

3,857,649

 

4,349,885

 

Add- Incremental shares associated with contingently issuable shares

 

61,326

 

1,458,704

 

 

 

 

 

 

 

Number of shares on which diluted earnings per share is calculated

 

1,635,231,855

 

1,712,287,368

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

4,774

 

$

4,655

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

27

 

3

 

 

 

 

 

 

 

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

 

$

4,747

 

$

4,652

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

4,774

 

$

4,655

 

 

 

 

 

 

 

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

 

2

 

1

 

 

 

 

 

 

 

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

 

4,772

 

4,654

 

 

 

 

 

 

 

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)

 

$

4,745

 

$

4,651

 

 

73


 

 

 

For The Nine Months Ended

 

 

 

September 30, 2005

 

September 30, 2004

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

2.92

 

$

2.72

 

Discontinued operations

 

(0.02

)

(0.00

)

Total

 

$

2.90

 

$

2.72

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

2.97

 

$

2.77

 

Discontinued operations

 

(0.02

)

(0.00

)

Total

 

$

2.95

 

$

2.77

 

 

Stock options to purchase 170,166,564 shares and 133,425,855 shares were outstanding as of September 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.

 

74