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Note 6: Earnings Per Share
Net earnings less preferred dividends (net of related tax benefits) are divided by the weighted average number of common shares outstanding during the year to calculate basic net earnings per common share. Diluted net earnings per common share are calculated to give effect to stock options and other stock-based awards (see Note 7) and assume conversion of preferred stock (see Note 8).
Net earnings and common shares used to calculate basic and diluted net earnings per share were as follows:
| Years ended June 30 | 2009 | 2008 | 2007 |
|---|---|---|---|
| Net Earnings from Continuing Operations | $11,293 | $11,798 | $10,063 |
| Preferred dividends, net of tax benefit | (192) | (176) | (161) |
| Net Earnings from Continuing Operations Available to Common Shareholders | 11,101 | 11,622 | 9,902 |
| Preferred dividends, net of tax benefit | 192 | 176 | 161 |
| Diluted Net Earnings from Continuing Operations | 11,293 | 11,798 | 10,063 |
| Net earnings from discontinued operations | 2,143 | 277 | 277 |
| Net Earnings | 13,436 | 12,075 | 10,340 |
| Shares in millions; Years ended June 30 | 2009 | 2008 | 2007 |
|---|---|---|---|
|
(1) Despite being included currently in diluted net earnings per common share, the actual conversion to common stock occurs pursuant to the repayment of the ESOPs’ obligations through 2035. (2) Approximately 92 million in 2009, 40 million in 2008 and 41 million in 2007 of the Company’s outstanding stock options were not included in the diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares). |
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| Basic weighted average common shares outstanding | 2,952.2 | 3,080.8 | 3,159.0 |
| Effect of dilutive securities | |||
| Conversion of preferred shares (1) | 139.2 | 144.2 | 149.6 |
| Exercise of stock options and other unvested equity awards (2) | 62.7 | 91.8 | 90.0 |
| Diluted Weighted Average Common Shares Outstanding | 3,154.1 | 3,316.8 | 3,398.6 |
Amounts in millions of dollars except per share amounts or as otherwise specified.
