EXHIBIT 11
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE
(UNAUDITED)
| | For The Three Months Ended | |
| | September 30, 2006 | | September 30, 2005* | |
Number of shares on which basic earnings per share is calculated: | | | | | |
| | | | | |
Weighted average outstanding shares during period | | 1,513,248,937 | | 1,591,293,494 | |
| | | | | |
Add - Incremental shares under stock compensation plans | | 16,190,408 | | 20,355,866 | |
Add - Incremental shares associated with convertible notes | | 3,402,904 | | 3,819,658 | |
Add - Incremental shares associated with contingently issuable shares | | 1,456,424 | | 1,768,601 | |
| | | | | |
Number of shares on which diluted earnings per share is calculated | | 1,534,298,673 | | 1,617,237,619 | |
| | | | | |
Income from continuing operations (millions) | | $ | 2,222 | | $ | 1,516 | |
| | | | | |
Loss from discontinued operations (millions) | | — | | — | |
| | | | | |
Net income from total operations on which basic earnings per share is calculated (millions) | | $ | 2,222 | | $ | 1,516 | |
| | | | | |
Income from continuing operations (millions) | | $ | 2,222 | | $ | 1,516 | |
| | | | | |
Less - net income applicable to contingently issuable shares (millions) | | — | | — | |
| | | | | |
Income from continuing operations on which diluted earnings per share is calculated (millions) | | 2,222 | | 1,516 | |
Loss from discontinued operations on which diluted earnings per share is calculated (millions) | | — | | — | |
Net income from total operations on which diluted earnings per share is calculated (millions) | | $ | 2,222 | | $ | 1,516 | |
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| | For The Three Months Ended | |
| | September 30, 2006 | | September 30, 2005* | |
Earnings per share of common stock: | | | | | |
Assuming dilution | | | | | |
Continuing operations | | $ | 1.45 | | $ | 0.94 | |
Discontinued operations | | (0.00 | ) | (0.00 | ) |
Total | | $ | 1.45 | | $ | 0.94 | |
| | | | | |
Basic | | | | | |
Continuing operations | | $ | 1.47 | | $ | 0.95 | |
Discontinued operations | | (0.00 | ) | (0.00 | ) |
Total | | $ | 1.47 | | $ | 0.95 | |
* Reclassified to conform with 2006 presentation.
Stock options to purchase 168,284,259 shares and 172,117,119 shares were outstanding as of September 30, 2006 and 2005, 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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COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE
(UNAUDITED)
| | For The Nine Months Ended | |
| | September 30, 2006 | | September 30, 2005* | |
Number of shares on which basic earnings per share is calculated: | | | | | |
| | | | | |
Weighted average outstanding shares during period | | 1,538,642,546 | | 1,607,947,757 | |
| | | | | |
Add - Incremental shares under stock compensation plans | | 17,239,070 | | 21,952,826 | |
Add - Incremental shares associated with convertible notes | | 3,461,183 | | 3,857,649 | |
Add - Incremental shares associated with contingently issuable shares | | 1,189,374 | | 1,473,623 | |
Number of shares on which diluted earnings per share is calculated | | 1,560,532,173 | | 1,635,231,855 | |
| | | | | |
Income from continuing operations (millions) | | $ | 5,952 | | $ | 4,774 | |
| | | | | |
Loss from discontinued operations (millions) | | — | | 27 | |
| | | | | |
Net income from total operations on which basic earnings per share is calculated (millions) | | $ | 5,952 | | $ | 4,747 | |
| | | | | |
Income from continuing operations (millions) | | $ | 5,952 | | $ | 4,774 | |
| | | | | |
Less - net income applicable to contingently issuable shares (millions) | | — | | 2 | |
| | | | | |
Income from continuing operations on which diluted earnings per share is calculated (millions) | | 5,952 | | 4,772 | |
| | | | | |
Loss from discontinued operations on which diluted earnings per share is calculated (millions) | | — | | 27 | |
| | | | | |
Net income from total operations on which diluted earnings per share is calculated (millions) | | $ | 5,952 | | $ | 4,745 | |
77
| | For The Nine Months Ended | |
| | September 30, 2006 | | September 30, 2005* | |
Earnings per share of common stock: | | | | | |
Assuming dilution | | | | | |
Continuing operations | | $ | 3.81 | | $ | 2.92 | |
Discontinued operations | | (0.00 | ) | (0.02 | ) |
Total | | $ | 3.81 | | $ | 2.90 | |
| | | | | |
Basic | | | | | |
Continuing operations | | $ | 3.87 | | $ | 2.97 | |
Discontinued operations | | (0.00 | ) | (0.02 | ) |
Total | | $ | 3.87 | | $ | 2.95 | |
* Reclassified to conform with 2006 presentation.
Stock options to purchase 167,083,642 shares and 170,166,564 shares were outstanding as of September 30, 2006 and 2005, 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.
78
