Weighted average shares outstanding


Notes to Financial Statements

Source: FY10Q3_10Q Notes to Financial Statements (excerpt)

NOTE 2    EARNINGS PER SHARE 

Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of 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 earnings per share are as follows: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions, except earnings per share)

 

Three Months Ended

March 31,

 

 

Nine Months Ended

March 31,

 

 

 

 

 

 

 

 

 

 

2010

 

 

2009

 

 

2010

 

 

2009

 

 

 

 

 

 

Net income available for common shareholders (A)

 

$

 4,006

 

 

$

2,977

 

 

$

 14,242

 

 

$

11,524

 

 

 

 

 

 

Weighted average shares of common stock outstanding (B)

 

 

8,767

 

 

 

8,891

 

 

 

8,846

 

 

 

8,960

 

Dilutive effect of stock-based awards

 

 

109

 

 

 

13

 

 

 

109

 

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock and common stock equivalents (C)

 

 

8,876

 

 

 

8,904

 

 

 

8,955

 

 

 

9,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic (A/B)

 

$

0.46

 

 

$

0.33

 

 

$

1.61

 

 

$

1.29

 

Diluted (A/C)

 

$

0.45

 

 

$

0.33

 

 

$

1.59

 

 

$

1.28

 

 

 

We excluded the following shares underlying stock-based awards from the calculations of diluted earnings per share because their inclusion would have been anti-dilutive: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

Three Months Ended

March 31,

 

 

Nine Months Ended

March 31,

 

 

 

 

 

 

 

 

 

 

2010

 

 

2009

 

 

2010

 

 

2009

 

 

 

 

 

 

Shares excluded from calculations of diluted EPS

 

 41

 

 

518

 

 

 49

 

 

352

 

 

 

 

NOTE 17    STOCKHOLDERS’ EQUITY 

Share Repurchases 

We repurchased the following shares of common stock during the periods presented: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

Three Months Ended
March 31,

 

 

Nine Months Ended
March 31,

 

 

 

 

 

 

 

 

 

 

2010

 

 

2009

 

 

2010

 

 

2009

 

 

 

 

 

 

Shares of common stock repurchased

 

 

67

 

 

 

 

 

 

250

 

 

 

318

 

Value of common stock repurchased

 

$

2,000

 

 

$

 

 

$

 7,028

 

 

$

8,200

 

 

 

We repurchased all shares with cash resources. As of March 31, 2010, approximately $27.5 billion remained of our $40.0 billion repurchase program that we announced on September 22, 2008. The repurchase program expires September 30, 2013 but may be suspended or discontinued at any time without notice.