EX-11 6 a04-12261_2ex11.htm EX-11

 

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Three Months Ended

 

 

 

September 30, 2004

 

September 30, 2003

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,669,559,399

 

1,722,647,344

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

24,902,498

 

28,990,550

 

Add - Incremental shares associated with convertible notes

 

4,332,853

 

4,764,543

 

Add- Incremental shares associated with contingently issuable shares

 

1,604,059

 

—

 

 

 

 

 

 

 

Number of shares on which diluted earnings per share is calculated

 

1,700,398,809

 

1,756,402,437

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

1,800

 

$

1,785

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

—

 

—

 

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

 

$

1,800

 

$

1,785

 

Income from continuing operations (millions)

 

$

1,800

 

$

1,785

 

 

 

 

 

 

 

Less - net income applicable to contingently issuable shares (millions)

 

2

 

—

 

 

 

 

 

 

 

Income from continuing operations on which diluted earnings per share is calculated (millions)

 

1,798

 

1,785

 

 

 

 

 

 

 

Loss from discontinued operations on which diluted earnings per share is calculated (millions)

 

—

 

—

 

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

 

$

1,798

 

$

1,785

 

 

59


 

 

 

For The Three Months Ended

 

 

 

September 30, 2004

 

September 30, 2003

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

Continuing operations

 

$

1.06

 

$

1.02

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

1.06

 

$

1.02

 

 

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

1.08

 

$

1.04

 

Discontinued operations

 

(0.00

)

(0.00

)

Total

 

$

1.08

 

$

1.04

 

 

Stock options to purchase 142,515,667 shares and 125,479,148 shares were outstanding as of September 30, 2004 and 2003, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise price during the respective periods was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive.

 

60


 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

For The Nine Months Ended

 

 

 

September 30, 2004

 

September 30, 2003

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares during period

 

1,680,277,830

 

1,725,935,900

 

 

 

 

 

 

 

Add - Incremental shares under stock compensation plans

 

28,539,268

 

28,615,688

 

Add - Incremental shares associated with convertible notes

 

4,349,885

 

4,764,543

 

Add- Incremental shares associated with contingently issuable shares

 

1,458,704

 

226,392

 

 

 

 

 

 

 

Number of shares on which diluted earnings per share is calculated

 

1,714,625,687

 

1,759,542,523

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

5,393

 

$

4,897

 

 

 

 

 

 

 

Loss from discontinued operations (millions)

 

(3

)

(23

)

 

 

 

 

 

 

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

 

$

5,390

 

$

4,874

 

 

 

 

 

 

 

Income from continuing operations (millions)

 

$

5,393

 

$

4,897

 

 

 

 

 

 

 

Less - net income applicable to contingently issuable shares (millions)

 

5

 

—

 

 

 

 

 

 

 

Income from continuing operations on which diluted earnings per share is calculated (millions)

 

5,388

 

4,897

 

 

 

 

 

 

 

Loss from discontinued operations on which diluted earnings per share is calculated (millions)

 

(3

)

(23

)

 

 

 

 

 

 

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

 

$

5,385

 

$

4,874

 

 

61


 

 

 

For The Nine Months Ended

 

 

 

September 30, 2004

 

September 30, 2003

 

Earnings per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

$

3.14

 

$

2.78

 

Continuing operations

 

(0.00

)

(0.01

)

Discontinued operations

 

$

3.14

 

$

2.77

 

Total

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

3.21

 

$

2.84

 

Discontinued operations

 

(0.00

)

(0.01

)

Total

 

$

3.21

 

$

2.82

*

 

* Does not total due to rounding.

 

Stock options to purchase 133,425,855 shares and 126,904,385 shares were outstanding as of September 30, 2004 and 2003, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise price during the respective periods was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive.

 

62