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.