EX-11 7 a07-24846_1ex11.htm EX-11

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

September 30, 2007

 

September 30, 2006

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares during period

 

1,371,371,419

 

1,513,248,937

 

 

 

 

 

 

 

Add – Incremental shares under stock compensation plans

 

27,225,919

 

16,190,408

 

Add – Incremental shares associated with Accelerated Share Repurchase agreements

 

3,831,369

 

—

 

Add – Incremental shares associated with convertible notes

 

1,638,674

 

3,402,904

 

Add – Incremental shares associated with contingently issuable shares

 

1,690,554

 

1,456,424

 

Number of shares on which diluted earnings per share is calculated

 

1,405,757,935

 

1,534,298,673

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,362

 

$

2,222

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

(1

)

—

 

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

 

$

2,361

 

$

2,222

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,362

 

$

2,222

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

2,362

 

2,222

 

 

 

 

 

 

 

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)

 

$

2,361

 

$

2,222

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.68

 

$

1.45

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

1.68

 

$

1.45

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

1.72

 

$

1.47

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

1.72

 

$

1.47

 

 

Stock options to purchase 23,260,774 shares and 168,284,259 shares were outstanding as of September 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.

 

53


 

 

 

For The Nine Months Ended

 

 

 

September 30,
2007

 

September 30,
2006

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares during period

 

1,436,016,716

 

1,538,642,546

 

 

 

 

 

 

 

Add – Incremental shares under stock compensation plans

 

22,611,163

 

17,239,070

 

Add – Incremental shares associated with Accelerated Share Repurchase agreements

 

1,277,123

 

—

 

Add – Incremental shares associated with convertible notes

 

1,816,254

 

3,461,183

 

Add – Incremental shares associated with contingently issuable shares

 

1,401,722

 

1,189,374

 

Number of shares on which diluted earnings per share is calculated

 

1,463,122,978

 

1,560,532,173

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

6,467

 

$

5,952

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

(1

)

—

 

 

 

 

 

 

 

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

 

$

6,466

 

$

5,952

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

6,467

 

$

5,952

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

6,467

 

5,952

 

 

 

 

 

 

 

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)

 

$

6,466

 

$

5,952

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

4.42

 

$

3.81

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

4.42

 

$

3.81

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

4.50

 

$

3.87

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

4.50

 

$

3.87

 

 

Stock options to purchase 70,788,648 shares and 167,083,642 shares (average of first, second and third quarter share amounts) were outstanding as of September 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.

 

54