EXHIBIT 11
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE
(UNAUDITED)
<TABLE>
<CAPTION>
For Quarter Ended
----------------------------------------
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
Number of shares on which basic
earnings per share is calculated:
Average shares outstanding during period 1,758,139,220 1,805,214,582
Add - Incremental shares under stock
compensation plans 48,576,513 60,953,163
Add - Incremental shares associated
with contingently issuable shares 3,075,978 3,447,351
--------------- ---------------
Number of shares on which diluted
earnings per share is calculated 1,809,791,711 1,869,615,096
=============== ===============
Net income applicable to common
shareholders (millions) $ 1,958 $ 1,757
Less- net income applicable to
contingently issuable shares (millions) (2) 12
--------------- ---------------
Net income on which diluted earnings
per share is calculated (millions) $ 1,960 $ 1,745
=============== ===============
Diluted earnings per share $ 1.08 $ 0.93
Basic earnings per share $ 1.11 $ 0.97
</TABLE>
Stock options to purchase 26,387,801 shares and 22,701,344 shares were
outstanding as of September 30, 2000 and 1999, respectively, but were not
included in the computation of diluted earnings because the options' exercise
price was greater than the average market price of the common shares and,
therefore, the effect would have been antidilutive. Net income applicable to
common shareholders excludes preferred stock dividends of $5 million for the
three months ended September 30, 2000 and 1999.
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<PAGE>
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE - (continued)
(UNAUDITED)
<TABLE>
<CAPTION>
For Nine Months Ended
----------------------------------------
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
Number of shares on which basic
earnings per share is calculated:
Average shares outstanding during period 1,767,648,237 1,813,707,108
Add - Incremental shares under stock
compensation plans 49,501,729 61,009,102
Add - Incremental shares associated
with contingently issuable shares 2,131,485 0
-------------- --------------
Number of shares on which diluted
earnings per share is calculated 1,819,281,451 1,874,716,210
============== ==============
Net income applicable to common
shareholders (millions) $ 5,408 $ 5,608
Less - net income applicable to
contingently issuable shares (millions) 7 0
-------------- --------------
Net income on which diluted earnings
per share is calculated (millions) $ 5,401 $ 5,608
============== ==============
Earnings per share of common
stock - assuming dilution $ 2.97 $ 2.99
Earnings per share of common
stock - basic $ 3.06 $ 3.09
</TABLE>
Stock options to purchase 25,157,800 shares as of September 30, 2000 and
23,165,081 shares as of September 30, 1999 were outstanding, but were not
included in the computation of diluted earnings because the options' exercise
price was greater than the average market price of the common shares, and
therefore, the effect would have been antidilutive. In addition, 3,215,252
restricted stock units as of September 30, 1999 relating to the company's
Long-Term Performance Plan were not included in the computation of diluted
earnings as their effect would have been antidilutive. Net income applicable to
common shareholders excludes preferred stock dividends of $15 million for the
nine months ended September 30, 2000 and 1999.
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