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.
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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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