Boeing 2010 Annual Report Download - page 81

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Note 4 – Earnings Per Share
The weighted-average number of shares outstanding used to compute earnings per share are as
follows:
(Shares in millions)
Years ended December 31, 2010 2009 2008
Weighted average shares outstanding 735.0 705.9 719.9
Participating securities 3.1 3.7 2.9
Basic weighted average shares outstanding 738.1 709.6 722.8
Dilutive potential common shares 6.2 3.8 6.2
Diluted weighted average shares outstanding 744.3 713.4 729.0
Basic earnings per share is calculated by the sum of (1) net earnings less declared dividends and
dividend equivalents related to share-based compensation divided by the basic weighted average
shares outstanding and (2) declared dividends and dividend equivalents related to share-based
compensation divided by the weighted average shares outstanding.
The weighted average number of shares outstanding, included in the table below, were excluded from
the computation of diluted earnings per share because the average market price did not exceed the
exercise/threshold price. However, these shares may be dilutive potential common shares in the future.
(Shares in millions)
Years ended December 31, 2010 2009 2008
Stock options 14.9 16.8 14.9
Performance Awards 3.8 2.0 2.0
ShareValue Trust 13.2 12.7
Performance Shares 0.8 0.7
Stock units 0.2 0.3
Note 5 – Income Taxes
The components of earnings before income taxes were:
Years ended December 31, 2010 2009 2008
U.S. $4,310 $1,638 $3,794
Non-U.S. 197 93 201
Total $4,507 $1,731 $3,995
Income tax expense/(benefit) consisted of the following:
Years ended December 31, 2010 2009 2008
Current tax expense
U.S. federal $13$(132) $ 44
Non-U.S. 80 69 29
U.S. state (137) 145 20
Total current (44) 82 93
Deferred tax expense
U.S. federal 969 457 1,151
Non-U.S. (13) (55) 26
U.S. state 284 (88) 71
Total deferred 1,240 314 1,248
Total income tax expense $1,196 $ 396 $1,341
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