Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings.

Basic earnings per share is calculated by taking net earnings, less earnings available to participating securities, divided by the basic weighted average common shares outstanding.

Diluted earnings per share is calculated by taking net earnings, less earnings available to participating securities, divided by the diluted weighted average common shares outstanding.

The elements used in the computation of basic and diluted earnings per share were as follows:

(In millions - except per share amounts)	Three months ended March 31
	2013		2012
Net earnings		$1,106		$923
Less: earnings available to participating securities	3		3
Net earnings available to common shareholders		$1,103		$920
Basic
Basic weighted average shares outstanding	763.3		752.5
Less: participating securities	2.1		2.3
Basic weighted average common shares outstanding	761.2		750.2
Diluted
Basic weighted average shares outstanding	763.3		752.5
Dilutive potential common shares(1)	5.4		7.1
Diluted weighted average shares outstanding	768.7		759.6
Less: participating securities	2.1		2.3
Diluted weighted average common shares outstanding	766.6		757.3
Net earnings per share:
Basic		$1.45		$1.23
Diluted	1.44		1.22

⁽¹⁾  Diluted EPS includes any dilutive impact of stock options, restricted stock units and Performance Awards.

The shares included in the following table were not included in the computation of diluted earnings per share because the effect was antidilutive. However, these shares may be dilutive potential common shares in the future.

(Shares in millions)	Three months ended March 31
	2013	2012
Stock options	19.1	18.5
Performance Awards	5.8	4.5