EX-11 3 a08-18576_1ex11.htm EX-11

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

June 30, 2008

 

June 30, 2007

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares during period

 

1,366,274,013

 

1,437,151,920

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

28,236,939

 

20,571,384

 

Add - Incremental shares associated with convertible notes

 

—

 

1,725,680

 

Add - Incremental shares associated with contingently issuable shares

 

1,284,249

 

1,384,543

 

Number of shares on which diluted earnings per share is calculated

 

1,395,795,201

 

1,460,833,527

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,765

 

$

2,261

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

(1

)

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

 

$

2,765

 

$

2,260

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,765

 

$

2,261

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

2,765

 

2,261

 

 

 

 

 

 

 

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)

 

$

2,765

 

$

2,260

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.98

 

$

1.55

 

Discontinued operations

 

—

 

(0.00

)

Total

 

$

1.98

 

$

1.55

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

2.02

 

$

1.57

 

Discontinued operations

 

—

 

(0.00

)

Total

 

$

2.02

 

$

1.57

 

 

Stock options to purchase 17,527,471 shares and 82,221,567 shares were outstanding as of June 30, 2008 and 2007, 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.

 

59


 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Six Months Ended

 

 

 

June 30, 2008

 

June 30, 2007

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares during period

 

1,374,641,282

 

1,468,339,365

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

24,023,915

 

20,303,786

 

Add - Incremental shares associated with convertible notes

 

—

 

1,905,045

 

Add - Incremental shares associated with contingently issuable shares

 

1,393,670

 

1,257,307

 

Number of shares on which diluted earnings per share is calculated

 

1,400,058,867

 

1,491,805,503

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

5,084

 

$

4,105

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

—

 

 

 

 

 

 

 

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

 

$

5,084

 

$

4,105

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

5,084

 

$

4,105

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

5,084

 

4,105

 

 

 

 

 

 

 

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)

 

$

5,084

 

$

4,105

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

3.63

 

$

2.75

 

Discontinued operations

 

—

 

(0.00

)

Total

 

$

3.63

 

$

2.75

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

3.70

 

$

2.80

 

Discontinued operations

 

—

 

(0.00

)

Total

 

$

3.70

 

$

2.80

 

 

Stock options to purchase 29,006,212 shares and 94,552,586 shares (average of first and second quarter share amounts) were outstanding as of June 30, 2008 and 2007, 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.

 

60