Earnings per share

9 Months Ended

Sep. 30, 2011

Note 6 — Earnings per share

Basic earnings per share (“EPS”) is computed using the weighted average number of common shares outstanding during the period. Diluted EPS is computed in the same manner as basic earnings per share but adds the number of additional common shares that would have been outstanding for the period if the dilutive potential common shares had been issued. All shares are calculated under the “treasury stock” method. The following is the reconciliation between the number of weighted average shares used in the basic and diluted EPS calculations for all periods:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2011⁽¹⁾		2010		2011⁽¹⁾		2010

Weighted average number of common shares outstanding during the period — Basic EPS⁽²⁾		487.2		531.7		506.1		541.9
Dilutive common stock equivalents:⁽³⁾
Outstanding stock options, “stock-settled” stock appreciation rights (“SSRs”), restricted stock units, and executive deferred compensation units⁽²⁾		3.6		5.3		4.2		5.6

Weighted average number of common shares outstanding during the period — Diluted EPS⁽²⁾		490.8		537.0		510.3		547.5


(1)		The decrease in weighted average number of common shares outstanding for the three and nine months ended September 30, 2011 for Basic and Diluted EPS resulted from the 26.9 million treasury shares repurchased in the year ended December 31, 2010 and the 44.3 million treasury shares repurchased during the first nine months of 2011.

(2)		Excludes awards of 4.6 million and 2.6 million for the three months ended September 30, 2011 and 2010, respectively and 3.0 million for both the nine months ended September 30, 2011 and 2010, respectively. These were excluded because their effect was anti-dilutive.

(3)		Dilutive common stock equivalents do not include the 1.8 million shares that we would receive if the Accelerated Share Repurchase agreement discussed in Note 8 were settled as of September 30, 2011. These were excluded because their effect was anti-dilutive.