EX-11 3 a08-26479_1ex11.htm EX-11

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

September 30, 2008

 

September 30, 2007

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares during period

 

1,350,670,034

 

1,371,371,419

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

26,232,372

 

27,225,919

 

Add - Incremental shares associated with Accelerated Share Repurchase agreements

 

—

 

3,831,369

 

Add - Incremental shares associated with convertible notes

 

—

 

1,638,674

 

Add - Incremental shares associated with contingently issuable shares

 

2,179,885

 

1,690,554

 

Number of shares on which diluted earnings per share is calculated

 

1,379,082,291

 

1,405,757,935

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,824

 

$

2,362

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

(1

)

 

 

 

 

 

 

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

 

$

2,824

 

$

2,361

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

2,824

 

$

2,362

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

2,824

 

2,362

 

 

 

 

 

 

 

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)

 

$

2,824

 

$

2,361

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

2.05

 

$

1.68

 

Discontinued operations

 

—

 

(0.00

)

Total

 

$

2.05

 

$

1.68

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

2.09

 

$

1.72

 

Discontinued operations

 

—

 

(0.00

)

Total

 

$

2.09

 

$

1.72

 

 

Stock options to purchase 17,270,010 shares and 23,260,774 shares were outstanding as of September 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.

 

61


 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Nine Months Ended

 

 

 

September 30, 2008

 

September 30, 2007

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares during period

 

1,366,650,866

 

1,436,016,716

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

24,760,066

 

22,611,163

 

Add - Incremental shares associated with Accelerated Share Repurchase agreements

 

—

 

1,277,123

 

Add - Incremental shares associated with convertible notes

 

—

 

1,816,254

 

Add - Incremental shares associated with contingently issuable shares

 

1,655,741

 

1,401,722

 

Number of shares on which diluted earnings per share is calculated

 

1,393,066,673

 

1,463,122,978

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

7,907

 

$

6,467

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

(1

)

 

 

 

 

 

 

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

 

$

7,907

 

$

6,466

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

7,907

 

$

6,467

 

 

 

 

 

 

 

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

 

—

 

—

 

 

 

 

 

 

 

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

 

7,907

 

6,467

 

 

 

 

 

 

 

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)

 

$

7,907

 

$

6,466

 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

5.68

 

$

4.42

 

Discontinued operations

 

—

 

(0.00

)

Total

 

$

5.68

 

$

4.42

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

5.79

 

$

4.50

 

Discontinued operations

 

—

 

(0.00

)

Total

 

$

5.79

 

$

4.50

 

 

Stock options to purchase 25,094,144 shares and 70,788,648 shares (average of first, second and third quarter share amounts) were outstanding as of September 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.

 

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