Earnings Per Share, Share Repurchases and Dividends on Common Stock (Unaudited)

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK

EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK

Basic Earnings Per Share

We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period.

Diluted Earnings Per Share

Diluted earnings per share includes the dilutive effect of awards and options granted to employees under stock-based compensation plans. The dilutive effect of these securities totaled 2.8 million shares and 3.4 million shares for the three and six months ended June 30, 2014, respectively. The dilutive effect of these securities totaled 3.5 million shares and 4.0 million shares for the three and six months ended June 30, 2013, respectively. The weighted-average diluted shares outstanding excludes stock options with exercise prices in excess of the average market price of the company's common stock during the period (anti-dilutive stock options). We had no anti-dilutive stock options outstanding for the three and six months ended June 30, 2014. We had no anti-dilutive stock options outstanding for the three months ended June 30, 2013 and 0.7 million anti-dilutive stock options outstanding for the six months ended June 30, 2013.

Share Repurchases

The table below summarizes the company’s share repurchases:

							Shares Repurchased (in millions)
Repurchase Program Authorization Date	Amount Authorized (in millions)		Total Shares Retired (in millions)	Average  Price Per Share(2)		Date Completed	Six Months Ended June 30
							2014	2013
June 16, 2010	$	5,350	83.7	$	63.86	September 2013	—	12.6
May 15, 2013(1)	$	4,000	19.6	$	112.43		10.9	—

(1) On May 15, 2013, the company's board of directors authorized a share repurchase program of up to $4.0 billion of the company’s common stock. Repurchases under this program commenced in September 2013 upon the completion of the company's 2010 repurchase program. As of June 30, 2014, our repurchases under the program totaled $2.2 billion and $1.8 billion remained under this share repurchase authorization. The repurchase program is expected to expire when we have used all authorized funds for repurchase.

(2) Includes commissions paid.

Share repurchases take place from time to time, subject to market conditions and management's discretion, in the open market or in privately negotiated transactions. The company retires its common stock upon repurchase and has not made any purchases of common stock other than in connection with these publicly announced repurchase program authorizations.

Dividends on Common Stock

In May 2014, the company increased the quarterly common stock dividend 15 percent to $0.70 per share from the previous amount of $0.61 per share.

In May 2013, the company increased the quarterly common stock dividend 11 percent to $0.61 per share from the previous amount of $0.55 per share.