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EX-31.1 - EX-31.1 - INTERNATIONAL BUSINESS MACHINES CORPibm16q1_ex31d1.htm
EX-32.2 - EX-32.2 - INTERNATIONAL BUSINESS MACHINES CORPibm16q1_ex32d2.htm
EX-12 - EX-12 - INTERNATIONAL BUSINESS MACHINES CORPibm16q1_ex12.htm
EX-10.1 - EX-10.1 - INTERNATIONAL BUSINESS MACHINES CORPibm16q1_ex10d1.htm
EX-31.2 - EX-31.2 - INTERNATIONAL BUSINESS MACHINES CORPibm16q1_ex31d2.htm
EX-32.1 - EX-32.1 - INTERNATIONAL BUSINESS MACHINES CORPibm16q1_ex32d1.htm
10-Q - 10-Q - INTERNATIONAL BUSINESS MACHINES CORPibm16q1_10q.htm

EXHIBIT 11

 

COMPUTATION OF BASIC AND DILUTED

EARNINGS PER SHARE

(UNAUDITED)

 

 

 

 

 

 

 

 

For the Three Months Ended

 

March 31, 2016

 

March 31, 2015

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

 

 

 

 

 

  Weighted-average shares outstanding during period

 

961,729,448

 

 

988,149,972

    Add – Incremental shares under stock-based compensation plans

 

2,020,910

 

 

3,420,804

    Add – Incremental shares associated with contingently issuable shares

 

620,023

 

 

761,826

  Number of shares on which diluted earnings per share is calculated

 

964,370,381

 

 

992,332,602

 

 

 

 

 

 

Income from continuing operations (millions)

$

2,016

 

$

2,415

Loss from discontinued operations, net of tax (millions)

 

(3)

 

 

(88)

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

$

2,014

 

$

2,328

 

 

 

 

 

 

Income from continuing operations (millions)

$

2,016

 

$

2,415

Net income applicable to contingently issuable shares (millions)

 

 

 

Income from continuing operations on which diluted earnings per share is

 

 

 

 

 

 calculated (millions)

$

2,016

 

$

2,415

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

 

 

 

 

 

 earnings per share is calculated (millions)

 

(3)

 

 

(88)

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

$

2,014

 

$

2,328

 

 

 

 

 

 

Earnings/(loss) per share of common stock:

 

 

 

 

 

 

 

 

 

 

 

Assuming dilution

 

 

 

 

 

  Continuing operations

$

2.09

 

$

2.44

  Discontinued operations

 

0.00

 

 

(0.09)

  Total

$

2.09

 

$

2.35

 

 

 

 

 

 

Basic

 

 

 

 

 

  Continuing operations

$

2.09

 

$

2.45

  Discontinued operations

 

0.00

 

 

(0.09)

  Total

$

2.09

 

$

2.36

 

 

 

 

 

 

 

 

 

 

 

 

       Stock options to purchase 1,163,996 shares and 48,202 shares were outstanding as of March 31, 2016 and 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.

 

 

 

 

 

 

 

 

74