19. Earnings Per Common Share
Basic earnings per share is computed by dividing earnings available for common
shareholders by the weighted-average number of common shares outstanding during
the period. Diluted earnings per share is computed by dividing earnings available
for common shareholders by the diluted weighted-average number of common shares
outstanding each period. Diluted earnings per share reflect the potential dilution
that could occur if securities or other agreements to issue common stock, such
as stock options, equity units, stock-based performance unit awards, convertible
debt and phantom stock awards, were exercised or converted into common stock.
The following table reconciles the weighted-average number of common shares
outstanding to the diluted weighted-average number of common shares outstanding.
Weighted-Average Shares Outstanding
| |
|
2003 |
|
2002 |
|
2001 |
| |
|
(in millions) |
| Weighted-average shares outstanding |
|
903.0 |
|
836.1 |
|
767.5 |
Assumed exercise of dilutive securities or other agreements to issue
common
stock |
|
— |
|
2.0 |
|
5.4 |
| Diluted weighted-average shares outstanding |
|
903.0 |
|
838.1 |
|
772.9 |
Options, performance awards and phantom stock awards to purchase approximately
33.6 million shares as of December 31, 2003 were not included in the computation
of diluted earnings per share because a loss from continuing operations existed,
and thus including these shares in the computation would have been antidilutive
as it would have decreased the loss per share.
Options, performance awards and phantom stock awards to purchase approximately
31.4 million shares as of December 31, 2002 and 6.0 million shares as of December
31, 2001 were not included in the computation of diluted earnings per share
because the option exercise prices were greater than the average market price
of the common shares during those periods.
Print
top