EXHIBIT 11 COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (UNAUDITED) For Quarter Ended --------------------------------- March 31, 2000 March 31, 1999 -------------- -------------- Number of shares on which basic earnings per share is calculated: Average outstanding during period 1,777,186,830 1,823,832,328 Add - Incremental shares under stock compensation plans 52,450,724 56,088,292 Add - Incremental shares associated with contingently issuable shares 372,842 3,021,220 -------------- -------------- Number of shares on which diluted earnings per share is calculated 1,830,010,396 1,882,941,840 ============== ============== Net income applicable to common shareholders (millions) $ 1,514 $ 1,465 Less - net income applicable to contingently issuable shares (millions) 0 4 -------------- -------------- Net income on which diluted earnings per share is calculated (millions) $ 1,514 $ 1,461 ============== ============== Earnings per share of common stock - assuming dilution $ 0.83 $ 0.78 Earnings per share of common stock - basic $ 0.85 $ 0.80 Stock options to purchase 23,695,194 shares and 13,196,830 shares were outstanding as of March 31, 2000 and 1999, respectively, but were not included in the computation of diluted earnings per share because the options' exercise price was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive. In addition, 2,642,542 restricted stock units in the first quarter of 2000 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. Net income applicable to common shareholders excludes preferred stock dividends of $5 million for the three months ended March 31, 2000 and 1999. -19-