Boeing 2011 Annual Report Download - page 80

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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, 2011 2010 2009
Weighted average shares outstanding 744.1 735.0 705.9
Participating securities 2.5 3.1 3.7
Basic weighted average shares outstanding 746.6 738.1 709.6
Dilutive potential common shares 6.5 6.2 3.8
Diluted weighted average shares outstanding 753.1 744.3 713.4
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, 2011 2010 2009
Stock options 21.1 14.9 16.8
Performance Awards 1.5 3.8 2.0
ShareValue Trust 13.2
Performance Shares 0.8
Stock Units 0.2
Note 5 – Income Taxes
The components of earnings before income taxes were:
Years ended December 31, 2011 2010 2009
U.S. $5,083 $4,310 $1,638
Non-U.S. 310 197 93
Total $5,393 $4,507 $1,731
Income tax expense/(benefit) consisted of the following:
Years ended December 31, 2011 2010 2009
Current tax expense
U.S. federal $ (605) $ 13 $(132)
Non-U.S. 93 80 69
U.S. state (22) (137) 145
Total current (534) (44) 82
Deferred tax expense
U.S. federal 1,856 969 457
Non-U.S. (8) (13) (55)
U.S. state 68 284 (88)
Total deferred 1,916 1,240 314
Total income tax expense $1,382 $1,196 $ 396
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