Exhibit 11
Fully Diluted Earnings Per Common Share and Fully Diluted Average Common Shares
Outstanding
For fully diluted earnings per common share, net income available to
common shareholders can be affected by the conversion of the registrant's
convertible preferred stock. Where the effect of this conversion would have
been dilutive, net income available to common shareholders is adjusted by the
associated preferred dividends. This adjusted net income is divided by the
weighted average number of common shares outstanding for each period plus
amounts representing the dilutive effect of stock options outstanding and the
dilution resulting from the conversion of the registrant's convertible
preferred stock, if applicable. The effect of convertible preferred stock is
excluded from the computation of fully diluted earnings per share in periods in
which the effect would be antidilutive.
Fully diluted earnings per common share was determined as follows (shares
in thousands, dollars in millions except per-share information):
Three Months Ended Six Months Ended
June 30 June 30
------------------ ------------------
1994 1993 1994 1993
-------- -------- -------- --------
Average common shares outstanding........................... 275,020 254,002 273,492 253,673
Dilutive effect of
Convertible preferred stock............................... 2,371 2,465 2,371 2,465
Stock options............................................. 1,736 1,340 1,634 1,693
-------- -------- -------- --------
Total fully dilutive shares................................. 279,127 257,807 277,497 257,831
======== ======== ======== ========
Income available to common shareholders before effect
of change in method of accounting for income taxes........ $ 435 $ 304 $ 849 $ 583
Preferred dividends paid on dilutive convertible
preferred stock........................................... 2 2 4 4
-------- -------- -------- --------
Income available to common shareholders adjusted for
full dilution and before effect of change in method
of accounting for income taxes............................ 437 306 853 587
Effect of change in method of accounting for income taxes... - - - 200
-------- -------- -------- --------
Total net income available for common shareholders
adjusted for full dilution................................ $ 437 $ 306 $ 853 $ 787
======== ======== ======== ========
Fully diluted earnings per common share before effect
of change in method of accounting for income taxes........ $ 1.57 $ 1.19 $ 3.07 $ 2.28
======== ======== ======== ========
Fully diluted earnings per common share..................... $ 1.57 $ 1.19 $ 3.07 $ 3.05
======== ======== ======== ========
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