EXHIBIT 11
Published on May 17, 1999
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 conver-
tible 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 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
(SHARES IN THOUSANDS, DOLLARS IN MILLIONS MARCH 31
----------------------------
EXCEPT PER-SHARE INFORMATION) 1999 1998
---------------------------------------------------------------------------
Average common shares outstanding 1,737,562 1,724,490
Dilutive effect of :
Convertible preferred stock 3,206 3,606
Stock options 38,940 44,919
---------------------------------------------------------------------------
Total dilutive shares 1,779,708 1,773,015
===========================================================================
Income available to common shareholders $ 1,912 $ 1,320
Preferred dividends paid on dilutive convertible
preferred stock 2 2
---------------------------------------------------------------------------
Total net income available to common
shareholders adjusted for full dilution $ 1,914 $ 1,322
===========================================================================
Diluted earnings per common share $ 1.08 $ .75
---------------------------------------------------------------------------