Exhibit 11
Diluted Earnings Per Common Share and Diluted Average Common Shares Outstanding
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For diluted earnings per common share, net income available to common
shareholders can be affected by the conversion of the registrant's convertible
preferred stock. Where the effect of this conversion would have been dilutive,
net income available to common shareholders is adjusted by the associated
preferred dividends. This adjusted net income is divided by the weighted average
number of common shares outstanding for each period plus amounts representing
the dilutive effect of stock options outstanding and the dilution resulting from
the conversion of the registrant's convertible preferred stock, if applicable.
The effect of convertible preferred stock is excluded from the computation of
diluted earnings per common share in periods in which the effect would be
antidilutive.
Diluted earnings per common share was determined as follows:
Three Months Ended Six Months Ended
June 30 June 30
(Shares in Thousands, Dollars in Millions ------------------------------------------------------------------
Except Per-Share Information) 1999 1998 1999 1998
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Average common shares outstanding 1,743,503 1,732,168 1,740,549 1,728,353
Dilutive effect of:
Convertible preferred stock 3,098 3,123 3,098 3,123
Stock options 40,244 49,421 39,670 47,471
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Total dilutive average shares 1,786,845 1,784,712 1,783,317 1,778,947
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Net income available to common shareholders $ 1,914 $ 2,287 $ 3,826 $ 3,607
Preferred dividends paid on dilutive convertible
preferred stock 1 1 3 3
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Total net income available to common shareholders
adjusted for full dilution $ 1,915 $ 2,288 $ 3,829 $ 3,610
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Diluted earnings per common share $ 1.07 $ 1.28 $ 2.15 $ 2.03
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