EX-11 2 a06-19062_7ex11.htm EX-11

EXHIBIT 11

COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE
(UNAUDITED)

 

 

For The Three Months Ended

 

 

 

September 30, 2006

 

September 30, 2005*

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,513,248,937

 

1,591,293,494

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

16,190,408

 

20,355,866

 

Add - Incremental shares associated with convertible notes

 

3,402,904

 

3,819,658

 

Add - Incremental shares associated with contingently issuable shares

 

1,456,424

 

1,768,601

 

 

 

 

 

 

 

Number of shares on which diluted earnings per share is calculated

 

1,534,298,673

 

1,617,237,619

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,222

 

$

1,516

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

—

 

 

 

 

 

 

 

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

 

$

2,222

 

$

1,516

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,222

 

$

1,516

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

2,222

 

1,516

 

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)

 

$

2,222

 

$

1,516

 

 

75



 

 

 

For The Three Months Ended

 

 

 

September 30, 2006

 

September 30, 2005*

 

Earnings per share of common stock:

 

 

 

 

 

 Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.45

 

$

0.94

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

1.45

 

$

0.94

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

1.47

 

$

0.95

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

1.47

 

$

0.95

 

 * Reclassified to conform with 2006 presentation.

Stock options to purchase 168,284,259 shares and 172,117,119 shares were outstanding as of September 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



COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE
(UNAUDITED)

 

 

For The Nine Months Ended

 

 

 

September 30, 2006

 

September 30, 2005*

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,538,642,546

 

1,607,947,757

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

17,239,070

 

21,952,826

 

Add - Incremental shares associated with convertible notes

 

3,461,183

 

3,857,649

 

Add - Incremental shares associated with contingently issuable shares

 

1,189,374

 

1,473,623

 

Number of shares on which diluted earnings per share is calculated

 

1,560,532,173

 

1,635,231,855

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

5,952

 

$

4,774

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

27

 

 

 

 

 

 

 

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

 

$

5,952

 

$

4,747

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

5,952

 

$

4,774

 

 

 

 

 

 

 

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

 

—

 

2

 

 

 

 

 

 

 

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

 

5,952

 

4,772

 

 

 

 

 

 

 

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)

 

$

5,952

 

$

4,745

 

 

77



 

 

 

For The Nine Months Ended

 

 

 

September 30, 2006

 

September 30, 2005*

 

Earnings per share of common stock:

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

3.81

 

$

2.92

 

Discontinued operations

 

(0.00

)

(0.02

)

Total

 

$

3.81

 

$

2.90

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

3.87

 

$

2.97

 

Discontinued operations

 

(0.00

)

(0.02

)

Total

 

$

3.87

 

$

2.95

 

* Reclassified to conform with 2006 presentation.

       Stock options to purchase 167,083,642 shares and 170,166,564 shares were outstanding as of September 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.

78