EX-11 2 a06-15152_1ex11.htm EX-11

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

June 30, 2006

 

June 30, 2005*

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,538,131,746

 

1,603,877,175

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

17,221,633

 

18,673,388

 

Add - Incremental shares associated with convertible notes

 

3,466,970

 

3,852,456

 

Add- Incremental shares associated with contingently issuable shares

 

1,249,220

 

1,493,125

 

Number of shares on which diluted earnings per share is calculated

 

1,560,069,569

 

1,627,896,144

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,022

 

$

1,851

 

 

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

22

 

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

 

$

2,022

 

$

1,829

 

 

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,022

 

$

1,851

 

 

 

 

 

 

 

 

 

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

 

—

 

1

 

 

 

 

 

 

 

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

 

2,022

 

1,850

 

 

 

 

 

 

 

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

 

—

 

22

 

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

 

$

2,022

 

$

1,828

 

 

73


 

 

 

For The Three Months Ended

 

 

 

June 30, 2006

 

June 30, 2005*

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.30

 

$

1.14

 

Discontinued operations

 

(0.00

)

(0.01

)

Total

 

$

1.30

 

$

1.12

**

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

1.31

 

$

1.15

 

Discontinued operations

 

(0.00

)

(0.01

)

Total

 

$

1.31

 

$

1.14

 

*                 Reclassified to conform with 2006 presentation.

**          Does not total due to rounding.

 

Stock options to purchase 166,648,628 shares and 193,648,084 shares were outstanding as of June 30, 2006 and 2005, 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


 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Six Months Ended

 

 

 

June 30, 2006

 

June 30, 2005*

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,551,339,351

 

1,616,274,888

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

17,763,399

 

22,751,306

 

Add - Incremental shares associated with convertible notes

 

3,490,322

 

3,876,645

 

Add- Incremental shares associated with contingently issuable shares

 

1,055,850

 

1,326,134

 

Number of shares on which diluted earnings per share is calculated

 

1,573,648,922

 

1,644,228,973

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

3,730

 

$

3,258

 

 

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

27

 

 

 

 

 

 

 

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

 

$

3,730

 

$

3,231

 

 

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

3,730

 

$

3,258

 

 

 

 

 

 

 

 

 

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

 

—

 

2

 

 

 

 

 

 

 

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

 

3,730

 

3,256

 

 

 

 

 

 

 

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

 

—

 

27

 

 

 

 

 

 

 

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

 

$

3,730

 

$

3,229

 

 

75


 

 

 

For The Six Months Ended

 

 

 

June 30, 2006

 

June 30, 2005*

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

2.37

 

$

1.98

 

Discontinued operations

 

(0.00

)

(0.02

)

Total

 

$

2.37

 

$

1.96

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

2.40

 

$

2.02

 

Discontinued operations

 

(0.00

)

(0.02

)

Total

 

$

2.40

 

$

2.00

 

*                 Reclassified to conform with 2006 presentation.

 

Stock options to purchase 166,483,334 shares and 169,191,287 shares were outstanding as of       June 30, 2006 and 2005, 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.

 

76