Earnings Per Share

12 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

Note 9. Earnings Per Share

The computation of basic and diluted earnings per share is as follows:

	Years ended June 30
	2011		2010		2009
	(In millions, except per share amounts)
Net earnings attributable to controlling interests	$	2,036	$	1,930	$	1,684
Average shares outstanding	642		643		643
Basic earnings per share	$	3.17	$	3.00	$	2.62
Net earnings attributable to controlling interests	$2,036		$1,930		$1,684
Plus: After-tax interest on 4.7% debentures related to $1.75 billion Equity Units	13		—		—
Adjusted net earnings attributable to controlling interests	$2,049		$1,930		$1,684
Average shares outstanding	642		643		643
Plus: Incremental shares
Share-based compensation awards	1		1		1
Shares assumed issued related to $1.75 billion Equity Units	11		—		—
Adjusted average shares outstanding	654		644		644
Diluted earnings per share	$3.13		$3.00		$2.62

Average shares outstanding for 2011 include 44 million of shares beginning June 1, 2011 related to equity unit conversion.

Adjusted net earnings attributable to controlling interests in 2011 includes a $13 million adjustment for after-tax interest for the quarter ended March 31, 2011.  Adjusted average shares outstanding for 2011 include 44 million shares assumed issued on January 1, 2011 for the quarter ended March 31, 2011, or 11 million shares for the year ended June 30, 2011.  These adjustments relate to the $1.75 billion Equity Units and were made as a result of the requirement to use the “if-converted” method of calculating diluted earnings per share for the quarter ended March 31, 2011.