QuickLinks -- Click here to rapidly navigate through this document
EXHIBIT 11
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE
(UNAUDITED)
| For Three Months Ended | ||||||
---|---|---|---|---|---|---|---|
| September 30, 2003 | September 30, 2002 | |||||
Number of shares on which basic earnings per share is calculated: | |||||||
Average outstanding during period | 1,722,647,344 | 1,690,476,261 | |||||
Add—Incremental shares under stock compensation plans | 28,990,550 | 19,139, 766 | |||||
Add—Incremental shares associated with convertible notes | 4,764,543 | — | |||||
Add—Incremental shares associated with contingently issuable shares | — | 2,110,159 | |||||
Number of shares on which diluted earnings per share is calculated | 1,756,402,437 | 1,711,726,186 | |||||
Income from continuing operations applicable to common shareholders (millions) | $ | 1,785 | $ | 1,694 | |||
Less—net income applicable to contingently issuable shares (millions) | — | 4 | |||||
Income from continuing operations on which basic and diluted earnings per share is calculated (millions) | 1,785 | 1,690 | |||||
Income from discontinued operations on which basic and diluted earnings per share is calculated (millions) | — | (381 | ) | ||||
Net income from total operations on which basic and diluted earnings per share is calculated (millions) | $ | 1,785 | $ | 1,309 | |||
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE—(continued)
(UNAUDITED)
| For Three Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
| September 30, 2003 | September 30, 2002 | ||||||
Earnings per share of common stock: | ||||||||
From continuing operations | ||||||||
Assuming dilution | $ | 1.02 | $ | 0.99 | ||||
Basic | $ | 1.04 | $ | 1.00 | ||||
From discontinued operations | ||||||||
Assuming dilution | $ | — | $ | (0.22 | ) | |||
Basic | $ | — | $ | (0.23 | ) | |||
From total operations | ||||||||
Assuming dilution | $ | 1.02 | $ | 0.76 | * | |||
Basic | $ | 1.04 | $ | 0.78 | * |
- *
- Does not total due to rounding.
Stock options to purchase 125,479,148 shares and 130,926,306 shares were outstanding as of September 30, 2003 and 2002, 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. In addition, 831,790 restricted stock units as of September 30, 2003 relating to the company's Long-Term Performance Plan were not included in the computation of diluted earnings per share as their effect would have been antidilutive.
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE—(continued)
(UNAUDITED)
| For Nine Months Ended | ||||||
---|---|---|---|---|---|---|---|
| September 30, 2003 | September 30, 2002 | |||||
Number of shares on which basic earnings per share is calculated: | |||||||
Average outstanding during period | 1,725,935,900 | 1,704,632,355 | |||||
Add—Incremental shares under stock compensation plans | 28,615,688 | 24,805,173 | |||||
Add—Incremental shares associated with convertible notes | 4,764,543 | — | |||||
Add—Incremental shares associated with contingently issuable shares | 226,392 | 2,264,731 | |||||
Number of shares on which diluted earnings per share is calculated | 1,759,542,523 | 1,731,702,259 | |||||
Income from continuing operations applicable to common shareholders (millions) | $ | 4,897 | $ | 3,423 | |||
Less—net income applicable to contingently issuable shares (millions) | — | 18 | |||||
Income from continuing operations on which basic and diluted earnings per share is calculated (millions) | 4,897 | 3,405 | |||||
Income from discontinued operations on which basic and diluted earnings per share is calculated (millions) | (23 | ) | (862 | ) | |||
Net income from total operations on which basic and diluted earnings per share is calculated (millions) | $ | 4,874 | $ | 2,543 | |||
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE—(continued)
(UNAUDITED)
| For Nine Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
| September 30, 2003 | September 30, 2002 | ||||||
Earnings per share of common stock: | ||||||||
From continuing operations | ||||||||
Assuming dilution | $ | 2.78 | $ | 1.97 | ||||
Basic | $ | 2.84 | $ | 2.01 | ||||
From discontinued operations | ||||||||
Assuming dilution | $ | (0.01 | ) | $ | (0.50 | ) | ||
Basic | $ | (0.01 | ) | $ | (0.51 | ) | ||
From total operations | ||||||||
Assuming dilution | $ | 2.77 | $ | 1.47 | ||||
Basic | $ | 2.82 | * | $ | 1.50 |
- *
- Does not total due to rounding.
Stock options to purchase 126,904,385 shares and 104,845, 215 shares were outstanding as of September 30, 2003 and 2002, 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.
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (UNAUDITED)
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE—(continued) (UNAUDITED)
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE—(continued) (UNAUDITED)
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE—(continued) (UNAUDITED)