NOTE 2 — EARNINGS PER SHARE
Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, stock awards, and shared performance stock awards. The components of basic and diluted EPS are as follows:
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| Year Ended June 30, | 2012 | 2011 | 2010 | |||||||||
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Net income available for common shareholders (A) |
$ | 16,978 | $ | 23,150 | $ | 18,760 | ||||||
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Weighted average outstanding shares of common stock (B) |
8,396 | 8,490 | 8,813 | |||||||||
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Dilutive effect of stock-based awards |
110 | 103 | 114 | |||||||||
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Common stock and common stock equivalents (C) |
8,506 | 8,593 | 8,927 | |||||||||
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| Earnings Per Share | ||||||||||||
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Basic (A/B) |
$ | 2.02 | $ | 2.73 | $ | 2.13 | ||||||
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Diluted (A/C) |
$ | 2.00 | $ | 2.69 | $ | 2.10 | ||||||
We excluded the following shares underlying stock-based awards from the calculations of diluted EPS because their inclusion would have been anti-dilutive:
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| Year Ended June 30, | 2012 | 2011 | 2010 | |||||||||
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Shares excluded from calculations of diluted EPS |
1 | 21 | 28 | |||||||||
In June 2010, we issued $1.25 billion of zero-coupon debt securities that are convertible into shares of our common stock if certain conditions are met. As of June 30, 2012, none of these securities had met price or other conditions that would make them eligible for conversion and therefore were excluded from the calculation of basic and diluted EPS. See Note 12 – Debt for additional information.