Earnings per share:


Notes to Financial Statements

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:

 

(In millions, except earnings per share)             


Three Months Ended September 30,    2012     2011  

Net income available for common shareholders (A)

   $   4,466      $   5,738   

Weighted average outstanding shares of common stock (B)

     8,396        8,392   

Dilutive effect of stock-based awards

     98        98   


 


Common stock and common stock equivalents (C)

     8,494        8,490   
    


 


Earnings Per Share

                

Basic (A/B)

   $ 0.53      $ 0.68   

Diluted (A/C)

   $ 0.53      $ 0.68   


Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented.

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 September 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 11 – Debt for additional information.