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10-Q - 10-Q - INTERNATIONAL BUSINESS MACHINES CORPibm15q2_10q.htm
EX-31.1 - EX-31.1 - INTERNATIONAL BUSINESS MACHINES CORPibm15q2_ex31d1.htm
EX-12 - EX-12 - INTERNATIONAL BUSINESS MACHINES CORPibm15q2_ex12.htm
EX-32.2 - EX-32.2 - INTERNATIONAL BUSINESS MACHINES CORPibm15q2_ex32d2.htm
EX-32.1 - EX-32.1 - INTERNATIONAL BUSINESS MACHINES CORPibm15q2_ex32d1.htm
EX-31.2 - EX-31.2 - INTERNATIONAL BUSINESS MACHINES CORPibm15q2_ex31d2.htm

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

For the Three Months Ended

 

June 30, 2015

 

June 30 2014

Number of shares on which basic earnings per share is calculated:

 

 

 

 

 

  Weighted-average shares outstanding during period

 

982,309,853

 

 

999,637,745

    Add – Incremental shares under stock-based compensation plans

 

3,501,947

 

 

4,102,729

    Add – Incremental shares associated with contingently issuable shares

 

861,760

 

 

1,407,821

  Number of shares on which diluted earnings per share is calculated

 

986,673,560

 

 

1,005,148,295

 

 

 

 

 

 

Income from continuing operations (millions)

$

3,526

 

$

4,251

Loss from discontinued operations, net of tax (millions)

 

(77)

 

 

(115)

Net income on which basic earnings per share is calculated (millions)

$

3,449

 

$

4,137

 

 

 

 

 

 

Income from continuing operations (millions)

$

3,526

 

$

4,251

Net income applicable to contingently issuable shares (millions)

 

 

 

0

Income from continuing operations on which diluted earnings per share is

 

 

 

 

 

 calculated (millions)

$

3,526

 

$

4,251

Loss from discontinued operations, net of tax, on which basic and diluted

 

 

 

 

 

 earnings per share is calculated (millions)

 

(77)

 

 

(115)

Net income on which diluted earnings per share is calculated (millions)

$

3,449

 

$

4,136

 

 

 

 

 

 

Earnings/(loss) per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

  Continuing operations

$

3.58

 

$

4.23

  Discontinued operations

 

(0.08)

 

 

(0.11)

  Total

$

3.50

 

$

4.12

 

 

 

 

 

 

Basic

 

 

 

 

 

  Continuing operations

$

3.59

 

$

4.25

  Discontinued operations

 

(0.08)

 

 

(0.11)

  Total

$

3.51

 

$

4.14

 

 

 

 

 

 

 

 

 

 

 

 

Stock options to purchase 39,021 shares and 3,477 shares were outstanding as of June 30, 2015 and 2014, respectively,

but were not included in the computation of diluted earnings per share because the options' exercise price during the

respective periods was greater than the average market price of the common shares, and therefore, the effect would have been

antidilutive.

 

 

 

 

 

 

 

  

89 


EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

For the Six Months Ended

 

June 30, 2015

 

June 30 2014

Number of shares on which basic earnings per share is calculated:

 

 

 

 

 

  Weighted-average shares outstanding during period

 

985,229,912

 

 

1,017,425,656

    Add – Incremental shares under stock compensation plans

 

3,461,376

 

 

4,768,022

    Add – Incremental shares associated with contingently issuable shares

 

811,793

 

 

1,265,544

  Number of shares on which diluted earnings per share is calculated

 

989,503,081

 

 

1,023,459,222

 

 

 

 

 

 

Income from continuing operations (millions)

$

5,942

 

$

6,782

Loss from discontinued operations, net of tax (millions)

 

(165)

 

 

(261)

Net income on which basic earnings per share is calculated (millions)

$

5,777

 

$

6,521

 

 

 

 

 

 

Income from continuing operations (millions)

$

5,942

 

$

6,782

 

 

 

 

 

 

Net income applicable to contingently issuable shares (millions)

 

 

 

0

Income from continuing operations on which diluted earnings per share is

 

 

 

 

 

 calculated (millions)

$

5,942

 

$

6,781

Loss from discontinued operations, net of tax, on which basic and diluted

 

 

 

 

 

 earnings per share is calculated (millions)

 

(165)

 

 

(261)

Net income on which diluted earnings per share is calculated (millions)

$

5,777

 

$

6,521

 

 

 

 

 

 

Earnings/(loss) per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

  Continuing operations

$

6.01

 

$

6.62

  Discontinued operations

 

(0.17)

 

 

(0.25)

  Total

$

5.84

 

$

6.37

 

 

 

 

 

 

Basic

 

 

 

 

 

  Continuing operations

$

6.03

 

$

6.67

  Discontinued operations

 

(0.17)

 

 

(0.26)

  Total

$

5.86

 

$

6.41

 

 

 

 

 

 

 

 

 

 

 

 

Stock options to purchase 43,611 shares and 11,303 shares  (average of first and second quarter share amounts) were

outstanding as of June 30, 2015 and 2014, respectively, but were not included  in the computation of diluted earnings

 per share because the options' exercise price during the respective periods was greater than the average market price

of the common shares, and, therefore, the effect would have been antidilutive.

 

 

 

 

 

 

 

90