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10-Q - 10-Q - INTERNATIONAL BUSINESS MACHINES CORPibm15q3_10q.htm
EX-31.1 - EX-31.1 - INTERNATIONAL BUSINESS MACHINES CORPibm15q3_ex31d1.htm
EX-31.2 - EX-31.2 - INTERNATIONAL BUSINESS MACHINES CORPibm15q3_ex31d2.htm
EX-32.1 - EX-32.1 - INTERNATIONAL BUSINESS MACHINES CORPibm15q3_ex32d1.htm
EX-32.2 - EX-32.2 - INTERNATIONAL BUSINESS MACHINES CORPibm15q3_ex32d2.htm
EX-12 - EX-12 - INTERNATIONAL BUSINESS MACHINES CORPibm15q3_ex12.htm

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

For the Three Months Ended

 

September 30, 2015

 

September 30, 2014

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

 

 

 

 

 

  Weighted-average shares outstanding during period

 

975,077,042

 

 

991,835,307

    Add – Incremental shares under stock-based compensation plans

 

2,814,660

 

 

4,308,983

    Add – Incremental shares associated with contingently issuable shares

 

1,068,058

 

 

1,513,587

  Number of shares on which diluted earnings per share is calculated

 

978,959,760

 

 

997,657,878

 

 

 

 

 

 

Income from continuing operations (millions)

$

2,962

 

$

3,455

Loss from discontinued operations, net of tax (millions)

 

(12)

 

 

(3,437)

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

$

2,950

 

$

18

 

 

 

 

 

 

Income from continuing operations (millions)

$

2,962

 

$

3,455

Net income applicable to contingently issuable shares (millions)

 

(1)

 

 

Income from continuing operations on which diluted earnings per share is

 

 

 

 

 

 calculated (millions)

$

2,961

 

$

3,455

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

 

 

 

 

 

 earnings per share is calculated (millions)

 

(12)

 

 

(3,437)

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

$

2,949

 

$

18

 

 

 

 

 

 

Earnings/(loss) per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

  Continuing operations

$

3.02

 

$

3.46

  Discontinued operations

 

(0.01)

 

 

(3.44)

  Total

$

3.01

 

$

0.02

 

 

 

 

 

 

Basic

 

 

 

 

 

  Continuing operations

$

3.04

 

$

3.48

  Discontinued operations

 

(0.01)

 

 

(3.46)

  Total

$

3.03

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

       Stock options to purchase 35,416 shares were outstanding as of September 30, 2015 but were not included in the  

computation of diluted earnings per share because the options' exercise price during the respective period was greater than

the average market price of the common shares, and, therefore, the effect would have been antidilutive. There were no stock

options outstanding at September 30, 2014 that were considered antidilutive.

 

 

 

 

 

 

 

  

91 


EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

For the Nine Months Ended

 

September 30, 2015

 

September 30, 2014

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

 

 

 

 

 

  Weighted-average shares outstanding during period

 

981,845,622

 

 

1,008,895,540

    Add – Incremental shares under stock compensation plans

 

3,245,804

 

 

4,615,009

    Add – Incremental shares associated with contingently issuable shares

 

897,215

 

 

1,348,225

  Number of shares on which diluted earnings per share is calculated

 

985,988,641

 

 

1,014,858,774

 

 

 

 

 

 

Income from continuing operations (millions)

$

8,904

 

$

10,237

Loss from discontinued operations, net of tax (millions)

 

(176)

 

 

(3,698)

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

$

8,727

 

$

6,539

 

 

 

 

 

 

Income from continuing operations (millions)

$

8,904

 

$

10,237

 

 

 

 

 

 

Net income applicable to contingently issuable shares (millions)

 

(1)

 

 

0

Income from continuing operations on which diluted earnings per share is

 

 

 

 

 

 calculated (millions)

$

8,903

 

$

10,236

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

 

 

 

 

 

 earnings per share is calculated (millions)

 

(176)

 

 

(3,698)

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

$

8,726

 

$

6,538

 

 

 

 

 

 

Earnings/(loss) per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

  Continuing operations

$

9.03

 

$

10.09

  Discontinued operations

 

(0.18)

 

 

(3.65)

  Total

$

8.85

 

$

6.44

 

 

 

 

 

 

Basic

 

 

 

 

 

  Continuing operations

$

9.07

 

$

10.15

  Discontinued operations

 

(0.18)

 

 

(3.67)

  Total

$

8.89

 

$

6.48

 

 

 

 

 

 

 

 

 

 

 

 

       Stock options to purchase 40,880 shares and 7,535 shares  (average of first, second and third quarter share amounts) were 

outstanding as of September 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.

 

 

 

 

 

 

 

92