Basic and diluted income/(loss) per share were calculated using the following (in millions):



	Second Quarter					First Half
	2011		2010			2011		2010
Basic and Diluted Income/(Loss) Attributable to Ford Motor Company
Basic income/(loss) from continuing operations	$	2,398	$	2,599		$	4,949	$	4,684
Effect of dilutive 2016 Convertible Notes (a)	14		47			28		93
Effect of dilutive 2036 Convertible Notes (a)	—		10			1		20
Effect of dilutive UAW VEBA Note B (a) (b)	—		91			—		182
Effect of dilutive Trust Preferred Securities (a) (c)	—		46			36		91
Diluted income/(loss) from continuing operations	$	2,412	$	2,793		$	5,014	$	5,070

Basic and Diluted Shares
Average shares outstanding	3,799		3,412			3,785		3,389
Restricted and uncommitted-ESOP shares	—		(1		)	—		(1		)
Basic shares	3,799		3,411			3,785		3,388
Net dilutive options, warrants, and restricted and uncommitted-ESOP shares	205		198			234		202
Dilutive 2016 Convertible Notes	95		309			95		309
Dilutive 2036 Convertible Notes	3		63			3		63
Dilutive UAW VEBA Note B (b)	—		466			—		465
Dilutive Trust Preferred Securities (c)	—		163			66		163
Diluted shares	4,102		4,610			4,183		4,590

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(a)	As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in income or loss that would result from the assumed conversion.


(b)	On October 29, 2010 we prepaid the full amount of our Note B obligation to the UAW VEBA Trust in cash.

(c)

On March 15, 2011, the Trust Preferred Securities, which were convertible into Ford Common Stock, were fully redeemed and, as a result, for purposes of dilution effect, the year-to-date average shares outstanding will reflect the Common Stock underlying the Trust Preferred Securities only through March 15. However, the quarterly dilution calculation for the remaining quarters of 2011 will not include the underlying Common Stock as the Trust Preferred Securities have been redeemed.