EX-11 7 a07-18155_1ex11.htm EX-11

EXHIBIT 11

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

For The Three Months Ended

 

 

 

June 30, 2007

 

June 30, 2006

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares during period

 

1,437,151,920

 

1,538,131,746

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

20,571,384

 

17,221,633

 

Add - Incremental shares associated with convertible notes

 

1,725,680

 

3,466,970

 

Add - Incremental shares associated with contingently issuable shares

 

1,384,543

 

1,249,220

 

Number of shares on which diluted earnings per share is calculated

 

1,460,833,527

 

1,560,069,569

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,261

 

$

2,022

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

(1

)

—

 

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

 

$

2,260

 

$

2,022

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,261

 

$

2,022

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

2,261

 

2,022

 

 

 

 

 

 

 

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

 

(1

)

—

 

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

 

$

2,260

 

$

2,022

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.55

 

$

1.30

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

1.55

 

$

1.30

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

1.57

 

$

1.31

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

1.57

 

$

1.31

 

 

Stock options to purchase 82,221,567 shares and 166,648,628 shares were outstanding as of June 30, 2007 and 2006, 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.

57



COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

For The Six Months Ended

 

 

 

June 30, 2007

 

June 30, 2006

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares during period

 

1,468,339,365

 

1,551,339,351

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

20,303,786

 

17,763,399

 

Add - Incremental shares associated with convertible notes

 

1,905,045

 

3,490,322

 

Add - Incremental shares associated with contingently issuable shares

 

1,257,307

 

1,055,850

 

Number of shares on which diluted earnings per share is calculated

 

1,491,805,503

 

1,573,648,922

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

4,105

 

$

3,730

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

—

 

 

 

 

 

 

 

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

 

$

4,105

 

$

3,730

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

4,105

 

$

3,730

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

4,105

 

3,730

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

$

4,105

 

$

3,730

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

2.75

 

$

2.37

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

2.75

 

$

2.37

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

2.80

 

$

2.40

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

2.80

 

$

2.40

 

 

Stock options to purchase 94,552,586 shares and 166,483,334 shares (average of first and second quarter share amounts) were outstanding as of  June 30, 2007 and 2006, 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.

58