Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

Note 2 – Earnings Per Share

The weighted average number of shares outstanding used to compute earnings per share were as follows:

(Shares in millions)	Six months ended June 30				Three months ended June 30
	2011		2010		2011		2010
Weighted average shares outstanding		741.7		732.6		743.0		734.1
Participating securities		2.5		3.4		2.5		3.1
Basic weighted average shares outstanding		744.2		736.0		745.5		737.2
Dilutive potential common shares		6.6		5.9		7.1		5.7
Diluted weighted average shares outstanding		750.8		741.9		752.6		742.9

Basic earnings per share is calculated by the sum of (1) net earnings less declared dividends and dividend equivalents related to share-based compensation divided by the basic weighted average shares outstanding and (2) declared dividends and dividend equivalents related to share-based compensation divided by the weighted average shares outstanding.

The weighted average number of shares outstanding included in the following table were excluded from the computation of diluted earnings per share because the average market price did not exceed the exercise/threshold price. However, these shares may be dilutive potential common shares in the future.

(Shares in millions)	Six months ended June 30				Three months ended June 30
	2011		2010		2011		2010
Stock options		19.4		19.1		15.7		20.7
Performance Awards		4.1		3.4		4.1		3.4