EX-11 6 exhibit11.txt EXHBITI 11 CALCULATION OF EPS
EXHIBIT 11 AUTOMATIC DATA PROCESSING, INC. AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (In thousands, except per share amounts) Years ended June 30, ----------------------------------------------------------------- 2002 2001 2000 1999 1998 ----------------------------------------------------------------- BASIC EARNINGS PER SHARE: Net earnings applicable to common shares $1,100,770 $924,720 $840,800 $696,840 $608,262 ========== ======== ======== ======== ======== Average number of common shares outstanding 618,857 629,035 626,766 615,630 600,803 ======== ======= ======= ======= ======= Basic earnings per share $ 1.78 $ 1.47 $ 1.34 $ 1.13 $ 1.01 ========== ======== ======== ======== ======== DILUTED EARNINGS PER SHARE: Net earnings used in basic earnings per share $1,100,770 $924,720 $840,800 $696,840 $608,262 Adjustment for interest (net of tax) - zero coupon convertible subordinated notes (5 1/4% yield) 1,611 2,340 2,912 3,607 7,833 -------- -------- ------- -------- -------- Net earnings used for diluted earnings per share $1,102,381 $927,060 $843,712 $700,447 $616,095 ========== ======== ======== ======== ======== Average number of shares outstanding on a diluted basis: Shares used in calculating basic earnings per share 618,857 629,035 626,766 615,630 600,803 Diluted effect of all stock options outstanding after application of treasury stock method 9,370 13,482 14,823 15,306 13,363 Shares assumed to be issued upon conversion of Debentures - zero coupon convertible subordinated notes (5 1/4% yield) 2,352 3,472 4,509 5,956 14,030 ---------- ------- ------- ------- ------- Average number of shares outstanding on a diluted basis: 630,579 645,989 646,098 636,892 628,196 ========== ======= ======= ======= ======= Diluted earnings per share $ 1.75 $ 1.44 $ 1.31 $ 1.10 $ 0.98 ========== ======== ======= ======== ======== PRO FORMA BASIC EARNINGS PER SHARE:(a) Net earnings applicable to common shares $924,720 $840,800 $696,840 $608,262 Goodwill (net of tax impact) 46,960 41,090 42,420 39,768 ------ ------ ------ ------ Pro forma net earnings applicable to common shares $971,680 $881,890 $739,260 $648,030 Average number of common shares outstanding 629,035 626,766 615,630 600,803 ======= ======= ======= ======= Pro forma basic earnings per share $ 1.54 $ 1.41 $ 1.20 $ 1.08 ======== ======= ======== ======== PRO FORMA DILUTED EARNINGS PER SHARE:(a) Pro forma net earnings used in basic earnings per share $971,680 $881,890 $739,260 $648,030 Adjustment for interest (net of tax) - zero coupon Convertible subordinated notes (5 1/4% yield) 2,340 2,912 3,607 7,833 ----- ----- ----- ----- Pro forma net earnings used for diluted earnings per share $974,020 $884,802 $742,867 $655,863 ======== ======== ======== ======== Average number of shares outstanding on a diluted basis: Shares used in calculating basic earnings per share 629,035 626,766 615,630 600,803 Diluted effect of all stock options outstanding after application of treasury stock method 13,482 14,823 15,306 13,363 Shares assumed to be issued upon conversion of Debentures - zero coupon convertible subordinated notes (5 1/4% yield) 3,472 4,509 5,956 14,030 ----- ----- ----- ------ Average number of shares outstanding on a diluted basis 645,989 646,098 636,892 628,196 ======= ======= ======= ======= Pro forma diluted earnings per share $1.51 $1.37 $1.17 $1.04 ===== ===== ===== =====
(a) Pro forma results reflect the impact relating to the July 1, 2001 adoption of Statement of Financial Accounting Standard No. 142, which eliminates goodwill amortization. -23-