|
|
|
5. Earnings per Common Share |
|
|
|
Basic earnings per common share was calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share was calculated by dividing net income by the sum of the weighted average number of common shares outstanding plus all additional common shares that would have been outstanding if potentially dilutive securities or common stock equivalents had been issued.
The following table reconciles the number of shares utilized in the earnings per share calculations:
| Year Ended September 30, |
| |
1999 |
|
1998 |
1997
|
|
|
| Net income |
$4,766 |
|
$1,035 |
$449
|
|
|
Earnings per common share — basic:
Income before cumulative effect of accounting change |
$1.14 |
|
$0.35 |
$0.16
|
|
|
| Cumulative effect of accounting change |
0.43 |
|
— |
—
|
|
|
| Net income |
$1.57 |
|
$0.35 |
$0.16
|
|
|
Earnings per common share — diluted:
Income before cumulative effect of accounting change |
$1.10 |
|
$0.34 |
$0.15
|
|
|
| Cumulative effect of accounting change |
0.42 |
|
— |
—
|
|
|
| Net income |
$1.52 |
|
$0.34 |
$0.15
|
|
|
Number of shares (in millions)
|
|
|
|
|
|
|
| Common shares — basic |
3,035.8 |
|
2,963.8 |
2,894.6
|
|
|
| Effect of dilutive securities: Stock options |
101.0 |
|
71.9 |
37.5
|
|
|
| Other |
5.9 |
|
4.0 |
0.2
|
|
|
| Common shares — diluted |
3,142.7 |
|
3,039.7 |
2,932.3
|
|
|
| Options excluded from the computation of earnings per share — diluted
since option exercise price was greater than the average market price of the common shares for the period |
5.5 |
|
13.4 |
15.9
|
|
|
|
