EX-11 3 ibm14q1_ex11.htm  

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

March 31, 2014

 

March 31, 2013

Number of shares on which basic earnings per share is calculated:

 

 

 

 

 

  Weighted-average shares outstanding during period

 

 1,035,213,567 

 

 

 1,113,674,384 

    Add – Incremental shares under stock-based compensation plans

 

 5,433,316 

 

 

 8,872,513 

    Add – Incremental shares associated with contingently issuable shares

 

 1,123,266 

 

 

 1,448,276 

  Number of shares on which diluted earnings per share is calculated

 

 1,041,770,149 

 

 

 1,123,995,173 

 

 

 

 

 

 

Net income on which basic earnings per share is calculated (millions)

$

 2,384 

 

$

 3,032 

 

 

 

 

 

 

Net income applicable to contingently issuable shares (millions)

 

                           ─

 

 

                           ─

 

 

 

 

 

 

Net income on which diluted earnings per share is calculated (millions)

$

 2,384 

 

$

 3,032 

 

 

 

 

 

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

  Assuming dilution

$

 2.29 

 

$

 2.70 

 

 

 

 

 

 

  Basic

$

 2.30 

 

$

 2.72 

 

 

 

 

 

 

       Stock options to purchase 19,129 shares were outstanding as of March 31, 2014, but were not included in the

computation of diluted earnings per share because the options' exercise price during the period was greater than the average

market price of the common shares, and, therefore, the effect would have been antidilutive. There were no stock options

outstanding as of March 31, 2013 that were considered antidilutive.

 

 

 

 

 

 

 

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