Exhibit 11
Diluted Earnings Per Common Share and
Diluted Average Common Shares Outstanding
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 is 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 (shares in
thousands, dollars in millions, except per-share information):
Year Ended December 31
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1998 1997 1996
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Average common shares outstanding ................... 1,732,057 1,733,194 1,638,382
Dilutive effect of
Convertible preferred stock ........................ 3,290 3,736 6,158
Stock options ...................................... 40,413 45,242 26,086
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Total dilutive shares ............................... 1,775,760 1,782,172 1,670,626
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Income available to common shareholders ............. $ 5,140 $ 6,431 $ 5,611
Preferred dividends paid on dilutive convertible
preferred stock .................................. 6 7 9
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Total net income available to common shareholders
adjusted for dilution ............................ $ 5,146 $ 6,438 $ 5,620
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Diluted earnings per common share ................... $ 2.90 $ 3.61 $ 3.36
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