Earnings Per Share

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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)          
Year Ended June 30, 2011   2010   2009
Net income available for common shareholders (A) $      23,150   $      18,760   $      14,569
Weighted average outstanding shares of common stock (B)           8,490             8,813             8,945
Dilutive effect of stock-based awards              103                114                 51
Common stock and common stock equivalents (C)           8,593             8,927             8,996
Earnings Per Share          
Basic (A/B) $          2.73   $          2.13   $          1.63
Diluted (A/C) $          2.69   $          2.10   $          1.62

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

(In millions)          
Year Ended June 30, 2011   2010   2009
Shares excluded from calculations of diluted EPS       21         28        342

The decrease in anti-dilutive shares from fiscal year 2009 to 2010 was due mainly to the decrease in employee stock options outstanding.

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, 2011, none of these securities had met price or other conditions that would make them eligible for issuance and therefore were excluded from the calculation of either the basic or diluted EPS. See Note 12 – Debt for additional information.