Earnings Per Share
Basic and diluted earnings per share are computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings.
Basic earnings per share is calculated by taking net earnings, less earnings available to participating securities, divided by the basic weighted average common shares outstanding.
Diluted earnings per share is calculated by taking net earnings, less earnings available to participating securities, divided by the diluted weighted average common shares outstanding.
The elements used in the computation of basic and diluted earnings per share were as follows:
(In millions - except per share amounts)
|
| | | | | | | | | | | |
Years ended December 31, | 2013 |
| | 2012 |
| | 2011 |
|
Net earnings |
| $4,585 |
| |
| $3,900 |
| |
| $4,018 |
|
Less: earnings available to participating securities | 7 |
| | 8 |
| | 9 |
|
Net earnings available to common shareholders |
| $4,578 |
| |
| $3,892 |
| |
| $4,009 |
|
Basic | | | | | |
Basic weighted average shares outstanding | 760.8 |
| | 758.0 |
| | 746.6 |
|
Less: participating securities | 1.9 |
| | 2.3 |
| | 2.5 |
|
Basic weighted average common shares outstanding | 758.9 |
| | 755.7 |
| | 744.1 |
|
Diluted | | | | | |
Basic weighted average shares outstanding | 760.8 |
| | 758.0 |
| | 746.6 |
|
Dilutive potential common shares(1) | 8.7 |
| | 5.8 |
| | 6.5 |
|
Diluted weighted average shares outstanding | 769.5 |
| | 763.8 |
| | 753.1 |
|
Less: participating securities | 1.9 |
| | 2.3 |
| | 2.5 |
|
Diluted weighted average common shares outstanding | 767.6 |
| | 761.5 |
| | 750.6 |
|
Net earnings per share: | | | | | |
Basic |
| $6.03 |
| |
| $5.15 |
| |
| $5.39 |
|
Diluted | 5.96 |
| | 5.11 |
| | 5.34 |
|
| |
(1) | Diluted EPS includes any dilutive impact of stock options, restricted stock units and Performance Awards. |
The shares included in the following table were not included in the computation of diluted earnings per share because the effect was antidilutive. However, these shares may be dilutive potential common shares in the future.
(Shares in millions)
|
| | | | | | | | |
Years ended December 31, | 2013 |
| | 2012 |
| | 2011 |
|
Stock options | 4.8 |
| | 23.6 |
| | 21.1 |
|
Performance Awards | 4.2 |
| | 4.9 |
| | 1.5 |
|
