Accounting Policies
Stock Split
Accounting Changes
Unearned Revenue
Cash and Short-Term Investments
Inventories
Property and Equipment
Equity and Other Investments
Goodwill
Intangible Assets
Derivatives
Investment Income/(Loss)
Income Taxes
Stockholders' Equity
Other Comprehensive Income
Employee Stock and Savings Plans
Earnings Per Share
Acquisitions
Commitments and Guarantees
Contingencies
Segment Information
Note 17-Earnings Per Share
Basic earnings per share is computed
on the basis of the weighted average number of common shares outstanding.
Diluted earnings per share is computed on the basis of the weighted average number
of common shares outstanding plus the effect of outstanding put warrants using
the "reverse treasury stock" method and outstanding stock options using the
"treasury stock" method.
The components of basic and diluted
earnings per share were as follows:
|
(In millions, except earnings per share) |
|
|
|
|
|
|
Year Ended June 30 |
2001 |
|
2002 |
|
2003 |
|
|
|
|
|
|
|
|
Income before accounting change |
$ 7,721 |
|
$ 7,829 |
|
$ 9,993 |
|
Weighted average outstanding shares of common stock |
10,683 |
|
10,811 |
|
10,723 |
|
Dilutive effect of: |
|
|
|
|
|
|
Put warrants |
42 |
|
- |
|
- |
|
Employee stock options |
423 |
|
295 |
|
159 |
|
Common stock and common stock equivalents |
11,148 |
|
11,106 |
|
10,882 |
|
Earnings per share before accounting change: |
|
|
|
|
|
|
Basic |
$ 0.72 |
|
$ 0.72 |
|
$ 0.93 |
|
Diluted |
$ 0.69 |
|
$ 0.70 |
|
$ 0.92 |
For the years ended June 30, 2001,
2002 and 2003; 702 million, 746 million, and 1.09 billion shares attributable
to outstanding stock options were excluded from the calculation of diluted
earnings per share because the effect was antidilutive.
|
