EXHIBIT 11
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE
(UNAUDITED)
|
| For The Three Months Ended |
| ||||
|
| June 30, 2004 |
| June 30, 2003 |
| ||
|
|
|
|
|
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Number of shares on which basic earnings per share is calculated: |
|
|
|
|
| ||
|
|
|
|
|
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Weighted average outstanding shares during period |
| 1,679,587,661 |
| 1,729,821,815 |
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|
|
|
|
|
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Add - Incremental shares under stock compensation plans |
| 28,042,848 |
| 29,145,210 |
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Add - Incremental shares associated with convertible notes |
| 4,343 ,394 |
| 4,764,543 |
| ||
Add- Incremental shares associated with contingently issuable shares |
| 1,444,082 |
| — |
| ||
|
|
|
|
|
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Number of shares on which diluted earnings per share is calculated |
| 1,713,417,985 |
| 1,763,731,568 |
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|
|
|
|
|
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Income from continuing operations (millions) |
| $ | 1,990 |
| $ | 1,725 |
|
|
|
|
|
|
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Loss from discontinued operations (millions) |
| 2 |
| 20 |
| ||
Net income from total operations on which basic earnings per share is calculated (millions) |
| $ | 1,988 |
| $ | 1,705 |
|
|
|
|
|
|
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Income from continuing operations (millions) |
| $ | 1,990 |
| $ | 1,725 |
|
|
|
|
|
|
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Less - net income applicable to contingently issuable shares (millions) |
| 3 |
| — |
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|
|
|
|
|
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Income from continuing operations on which diluted earnings per share is calculated (millions) |
| 1,987 |
| 1,725 |
| ||
|
|
|
|
|
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Loss from discontinued operations on which diluted earnings per share is calculated (millions) |
| 2 |
| 20 |
| ||
Net income from total operations on which diluted earnings per share is calculated (millions) |
| $ | 1,985 |
| $ | 1,705 |
|
1
|
| For The Three Months Ended |
| ||||
|
| June 30, 2004 |
| June 30, 2003 |
| ||
Earnings per share of common stock: |
|
|
|
|
| ||
|
|
|
|
|
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Assuming dilution |
|
|
|
|
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Continuing operations |
| $ | 1.16 |
| $ | 0.98 |
|
Discontinued operations |
| (0.00 | ) | (0.01 | ) | ||
Total |
| $ | 1.16 |
| $ | 0.97 |
|
|
|
|
|
|
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Basic |
|
|
|
|
| ||
Continuing operations |
| $ | 1.18 |
| $ | 1.00 |
|
Discontinued operations |
| (0.00 | ) | (0.01 | ) | ||
Total |
| $ | 1.18 |
| $ | 0.99 |
|
Stock options to purchase 132,003,176 shares and 127,083,620 shares were outstanding as of June 30, 2004 and 2003, 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.
2
|
| For The Six Months Ended |
| ||||
|
| June 30, 2004 |
| June 30, 2003 |
| ||
|
|
|
|
|
| ||
Number of shares on which basic earnings per share is calculated: |
|
|
|
|
| ||
|
|
|
|
|
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Weighted average outstanding shares during period |
| 1,685,637,046 |
| 1,727,580,179 |
| ||
|
|
|
|
|
| ||
Add - Incremental shares under stock compensation plans |
| 30,357,654 |
| 28,428,256 |
| ||
Add - Incremental shares associated with convertible notes |
| 4,358,401 |
| 4,764,543 |
| ||
Add- Incremental shares associated with contingently issuable shares |
| 1,386,027 |
| 339,588 |
| ||
|
|
|
|
|
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Number of shares on which diluted earnings per share is calculated |
| 1,721,739,128 |
| 1,761,112,566 |
| ||
|
|
|
|
|
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Income from continuing operations (millions) |
| $ | 3,593 |
| $ | 3,112 |
|
|
|
|
|
|
| ||
Loss from discontinued operations (millions) |
| 3 |
| 23 |
| ||
|
|
|
|
|
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Net income from total operations on which basic earnings per share is calculated (millions) |
| $ | 3,590 |
| $ | 3,089 |
|
|
|
|
|
|
| ||
Income from continuing operations (millions) |
| $ | 3,593 |
| $ | 3,112 |
|
|
|
|
|
|
| ||
Less - net income applicable to contingently issuable shares (millions) |
| 3 |
| — |
| ||
|
|
|
|
|
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Income from continuing operations on which diluted earnings per share is calculated (millions) |
| 3,590 |
| 3,112 |
| ||
|
|
|
|
|
| ||
Loss from discontinued operations on which diluted earnings per share is calculated (millions) |
| 3 |
| 23 |
| ||
|
|
|
|
|
| ||
Net income from total operations on which diluted earnings per share is calculated (millions) |
| $ | 3,587 |
| $ | 3,089 |
|
3
|
| For The Six Months Ended |
| ||||
|
| June 30, 2004 |
| June 30, 2003 |
| ||
Earnings per share of common stock: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Assuming dilution |
|
|
|
|
| ||
Continuing operations |
| $ | 2.09 |
| $ | 1.77 |
|
Discontinued operations |
| (0.00 | ) | (0.01 | ) | ||
Total |
| $ | 2.08 | * | $ | 1.75 | * |
|
|
|
|
|
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Basic |
|
|
|
|
| ||
Continuing operations |
| $ | 2.13 |
| $ | 1.80 |
|
Discontinued operations |
| (0.00 | ) | (0.01 | ) | ||
Total |
| $ | 2.13 |
| $ | 1.79 |
|
* Does not total due to rounding.
Stock options to purchase 128,880,949 shares and 127,617,004 shares were outstanding as of June 30, 2004 and 2003, 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.
4