Weighted average shares outstanding:


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

March 31,

   

Nine Months Ended

March 31,

 


     2013     2012     2013     2012  

Net income available for common shareholders (A)

   $     6,055      $     5,108      $   16,898      $   17,470   

Weighted average outstanding shares of common stock (B)

     8,364        8,401        8,385        8,398   

Dilutive effect of stock-based awards

     65        97        87        104   


 


 


 


Common stock and common stock equivalents (C)

     8,429        8,498        8,472        8,502   
    


 


 


 


Earnings Per Share

                                

Basic (A/B)

   $ 0.72      $ 0.61      $ 2.02      $ 2.08   

Diluted (A/C)

   $ 0.72      $ 0.60      $ 1.99      $ 2.05   


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. As of March 31, 2013, none of these securities were included in the calculation of diluted EPS as they would have been anti-dilutive. See Note 11 – Debt for additional information.